Page 1
12
2 LITERATURE REVIEW
21 INTRODUCTION amp PROBLEM STATEMENT
Think Globally and Act Locally Globalization once the domain for only large
companies is now presenting new markets for the growth of small to medium market
companies Worldwide the small and medium enterprises have been accepted as the
engine of economic growth and for promoting equitable development Hence industries
dominated by SMErsquos must now consider implementing ERP systems as their market
landscapes become increasing competitive Cases of ERP implementations failures are
rampant (Willis and Willis-Brown 2002) [121] As a result recent studies of researchers
continuously tried to explore the critical success factors (CSFs) during ERP
implementation (Soh et al 2000 Ribbers and Schoo 2002 Scheer and Habermann
2000 Xu et al 2002) [89] [94] [102] [123] For the purpose of our analysis and for the
major vendors SMErsquos are firms with less than 1000 employees or less than $100M in
revenue Bigger companies like SAP Oracle and Microsoft are viciously contending
for taking the big share of small amp medium enterprise benefits While these options may
yield temporary financial relief they will not lead the way to long-term growth and
profitability [17] For companies to grow and consistently exceed bottom line
expectations they need to reconfigure or optimize parameters after getting lean To
effectively use lean one must be proficient in lean six sigma by optimizing the project
management techniques
22 OBJECTIVES OF LITERATURE REVIEW
The purpose of this review is to help the managers to successfully plan implement and
operate enterprise resource planning (ERP) projects using a risk management framework
with software modifications proper project management using lean six sigma approaches
for small amp medium business organizations For this we would like to study and
understand the existing Software Engineering Project Management and Lean Six Sigma
techniques related with successful ERP implementation and identify the research gap in
the ERP literature and its implementation in day-to-day life Besides we would like to
13
study the current ERP implementation status for all types of organizations and to perform
a comparative study among existing ERP vendors
23 DESIGN METHODOLOGY OF LITERATURE REVIEW
For this a number of international books peer reviewed conference proceedings and
journals from IEEE ACM Springer Inderscience European Journal of Operational
Research Journals Emerald Business Process Management Journal European Journal of
Information System International Journal of Information Technology Management
International Engineering Management Journal International Journal of Production
Research International Journal of Manufacturing Technology and Management
International Journal of Production Economics etc various series of AMR and Gartner
research websites were searched in preliminary and final literature review
In addition to the preceding journals the databases of ABIInform Global CBCA
Business Proquest Computing Proquest European Business Web of Science and J Stor
were searched related to the field of IT amp management Successive rounds of article and
papers resulted in total 129 articles being selected for the compilation In this ongoing
process this review summarizes research on enterprise resource planning systems on the
following topics as mentioned below
1 Work related with ERP Implementation (Current Status amp Future) 9
2 Work related with ERP Implementation Strategies 19
3 Work related with ERP Implementation with Change Management approach 3
4 Work related with Selection of ERP Package for Better ERP Implementation 9
5 Work related with ERP Implementation with Software Engineering approach 16
6 Work related with ERP Implementation with Project Management approach 13
7 Work related with ERP Implementation with Specific Models 25
8 Work related with Tailoring of Parameters in ERP Implementation 2
9 Work related with Critical Success Factors (CSFs) in ERP Implementation 13
10 Work related with ERP Implementation with Lean Six Sigma approach 6
11 Work related with ERP Implementation for Small amp Medium Enterprises (SMEs) 14
14
CSF constructs were then identified using content analysis methodology and an inductive
coding technique A subsequent critical analysis identified gaps in the literature base for
adopting new techniques like lean six sigma re-engineering etc The most important
finding is the lack of research to identify the most CSFs (MCSFs) of key stakeholders
such as small amp medium enterprises after removing their most critical problems (MCPs)
during ERP implementation Additionally there appears to be much variance with
respect to what exactly is encompassed by change management one of the most widely
cited CSFs and little detail of specific implementation tactics
24 COMPREHENSIVE REVIEW ON ERP LITERATURE
Majed Al_Mashari (2002) of King Saud University Saudi Arabia in his paper ldquoERP
Systems A Research Agendardquo considered the continuing development of Enterprise
Resource Planning (ERP) system as one of the major IT innovations in this decade He
observed ERP solutions seek to integrate and streamline business processes and IT and
what makes this technology more appealing to organizations is increasing capability to
integrate with the most advance electronic and mobile commerce technologies
However he realized the fact that as is the case with any new IT field research in the
ERP area still lacking and the gap in the ERP literature is huge Thus he attempted to fill
this gap by proposing a novel taxonomy for ERP Research and discussed its current
status with some major themes of ERP research relating to ERP adoption technical
aspects of ERP and ERP in IS curricula The discussion presented on these issues
provides valuable guidance for researchers and practitioners in ERP [74]
Christopher P Holland amp Ben Light (2001) conducted a research on the topic ldquoA Stage
Maturity Model for Enterprise Resource Planning Systems Userdquo In this paper the
authors present a maturity model for ERP systems that identifies three stages and this is
illustrated using case data selected from the study which is based on 24 organizations in
the US and Europe In Stage 1 organizations are managing legacy systems and starting
the ERP project In Stage 2 implementation is complete and the functionality of the ERP
system is being exploited across the organization In Stage 3 organizations have
normalized the ERP system into the organization and are engaged in the process of
obtaining strategic value from the system by using additional systems such as customer
15
relationship management knowledge management and supply chain planning It has
shown that the organizations follow an S-shaped curve and that most companies are in
the middle stage An analysis of the implications for organizations at each stage of the
maturity model has presented which will be of value to practicing managers The
implications are categorized as impacts on cost entropy complexity flexibility and
strategic competitiveness They made a contribution to the academic literature is to relate
a well established theory to contemporary developments in ERP systems It also
identifies areas for future research notably technical issues associated with connecting
ERP systems with other specialized package software and competitive issues concerned
with gaining competitive advantage from standard systems and speed of implementation
[47]
In ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola Kaisa
Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for smooth
and strategic implementation of ERP They further say ERP systems are commercial-off-
the-shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes It is not always possible
to assign the time of the companyrsquos key personnel to multidisciplinary activities of
Contextual Design In addition conducting Contextual Inquiries (CIs) with long serving
employees can often result in data with a highly personalized perspective Even though
ERP systems as such cannot be designed from scratch the application of CD ensures that
the user tasks UI (User Interface) modifications made by configuring the ERP system as
well as changes in the context can all be designed according to UCD (User Case design)
principles Introducing user-centeredness in ERP implementation improves the
implementation process and leads to the success of the contextual change A companyrsquos
efficiency and productivity depend on how fast and completely the organization adopts
the new ERP system [113]
A N Parr amp Dr G Shanks (2000) in the article ldquoA Taxonomy of ERP Implementation
Approachesrdquo argue that the concept of an ERP implementation is not a generic concept
16
and present taxonomy of ERP implementation in three archetypal categories ie
Comprehensive Middle-Road and Vanilla The rationale for implementation varies
between companies and provides an indicator of the type of implementation envisaged
The characteristics of each category are Physical Scope the BPR Scope Technical
Scope Module Implementation Strategy and Resource Allocation Combinations of these
characteristics serve to place an implementation within one of the categories The CEO
can see straightforwardly some of the consequences of implementation decisions by
understanding the taxonomy and the choices it highlights In this way the taxonomy can
be used to structure discussions about ERP implementation and make the decision
making process more systematic The aim of the taxonomy is to provide non-technical
managers with an effective framework early in the process to comprehend the
dimensions and implications of the enterprise This may then help to reduce the budget
and time blowouts [83]
Wayne Brown (2004) in his research paper ldquoEnterprise Resource Planning (ERP)
Implementation Planning and Structure A Recipe for ERP Successrdquo conducted a brief
review of the literature on attributes and structure that help in making ERP
implementation successful The project management structure and process used at Heald
College was compared to this ERP implementation literature The author discusses this
structure and the processes used to control project costs limit customizations control
scope involve executive management deliver documentation and training communicate
with the institution and manage change The author concludes with a lesson that
communication and change management are very important pieces of the implementation
puzzle [17]
Ali Haj Bakry amp Saad Haj Bakry (2005) through their study on ldquoEnterprise resource
planning a review and a STOPE viewrdquo provides a comprehensive understanding of ERP
systems including illustrating their main components and clarifying their basic and
extended features The ERP review presented here has started with the ERP principles
and moved forward toward the market state selection criteria implementation factors
current and future development and stopped at integrating the various ERP issues into
the STOPE framework (strategy technology organizationndashenterprise people
environment) which illustrates the integration of ERP systems with the overall enterprise
17
network The research illustrated that ERP systems are distinguished for their e-business
support integration approach flexible modular architecture and openness for horizontal
accommodation of wider scope of tasks and for vertical building of sophistication and
intelligence The ERP systems are open for further improvement through research and
development and for more experience through practical implementation and operation
[9]
In the article ldquoEnterprise Resource Planning A Business Approach to System
Developmentrdquo Nicola Gibson Christopher P Holland amp Ben Light (1999) of
Manchester Business School argue that system development is now entering a new phase
of maturity with the advent of Enterprise Resource Planning (ERP) software packages
From case study research it is shown that ERP implementations have different types of
problems compared with traditional software development methods These centre on the
alignment of business processes with the standard software package and the project
management of the implementation process They concluded that ERP is a departure
from traditional approaches to system development It therefore requires a different
approach that places less emphasis on the technical aspects of software development and
instead seeks to balance the business process design software configuration and project
management aspects of IT implementation with the overall strategy and structure of the
firm [41]
In Proceedings of the 36th Hawaii International Conference on System Sciences Celeste
See Pui Ng Guy Gable amp Taizan Chan (2003) of Queensland University of Technology
Australia presented their research paper ldquoAn ERP Maintenance Modelrdquo In order to
bridge this gap in literature and practice they propose a preliminary ERP maintenance
model reflecting fundamental ERP maintenance and upgrade activities A detailed case
study was conducted to gather empirical data for developing such an ERP maintenance
model Data gathered from the interviews relating to (i) maintenance preparation and
initial planning (ii) maintenance procedures and (iii) upgrade process are used to map
out Government Agencyrsquos (GA in the Australian state of Queensland) implicit
maintenance model ndash maintenance preparation maintenance procedure and software
upgrade stages respectively Data collected from the databases associated with request
type staff involved and maintenance activities are used to map out the maintenance
18
procedure stage whereas information from the upgrade business case and upgrade
planning resources documentation are used for mapping out the software replacement
stage of GArsquos maintenance model Data analysis identified potential benefits of the
maintenance model to ERP-using organizations generally and to the case firm in
particular with the primary business objectives This study provides practitioners with
guidelines on planning implementing and upgrading an ERP [86]
Yao Yurong amp He Houcun (2000) in the article ldquoData Warehousing and the Internetrsquos
impact on ERPrdquo examines the advances in data warehousing and internet technology
spurring ERP development As per their findings these systems still needed some
improvements To keep pace ERP systems themselves have undergone considerable
change in the past 10 years Thus in making the right ERP choices itrsquos helpful to know
how two key technologiesmdashdata warehousing and the Inter-netmdashare transforming these
complex systems SAP a leading ERP company introduced the business warehouse as a
complement to its R3 application suite Oracle a SAP competitor also sells its own
solutions Action (an activity-based management system) Balanced Scorecard (a
business performance management package acquired from Graphical Information Inc)
sales analyzer and warehouse analyzer So Oracle has also concluded that the
combination of data warehousing and ERP is an effective solution for counteracting the
drawbacks of the two systems [127]
In the research publication ldquoMatching ERP System Functionality to Customer
Requirementsrdquo Colette Rolland amp Naveen Prakash (2001) propose an approach for
matching ERP system functionality to customer requirements The assumption made was
that the ERP system postulates a set of requirements that are worth eliciting from the
ERP documentation as abstractions of the ERP system functionality Then the
requirements engineering process is a process that matches the ERP set of requirements
against organizational ones The paper presents the Map representation system and the
matching process The process is illustrated by considering the Treasury module of SAP
and its installation in the financial management of a cultural exchanges unit
Conclusively one can successfully expect to lay down such generic maps for capturing
change strategies for companies moving from single to multi customer oriented services
[91]
19
In ldquoEnterprise Resource Planning (ERP) ndash Breakthrough or Buzzwordrdquo A Fitzgerald
(1992) suggests that to understand the structure of the ERP manufacturing solutions one
must examine both the technology underlying these systems together with the
environments and functionality required Finally to make the lsquobusiness casersquo for such
systems we must focus on the benefits that can be achieved by using ERP systems [33]
In the proceeding of 34th
Hawaii International conference on System sciences an
important article on CSFs in ERP ldquoThe Impact of Critical Success Factors across the
Stages of Enterprise Resource Planning Implementationsrdquo by Toni M Somers amp Klara
Nelson (2001) was published This paper describes the impact of Critical Success Factors
(CSFs) across the stages of Enterprise Resource Planning (ERP) implementations using
the responses from 86 organizations that completed or are in the process of completing an
ERP implementation This research not only identified which CSFs are most critical in
ERP implementations but also determined which factors are temporal ie significant in
the implementation process for a particular period in time That information can now be
used to identify anticipate and allocate time and resources across those factors that need
attending to for effective project monitoring It also provides an understanding of the
factors and their importance throughout the various phases of implementation which in
turn can serve as a useful guide for firms in the process of implementing an ERP system
[103]
In the proceeding of 34th
Hawaii International conference on System sciences IEEE 2001
ldquoTailoring ERP systems A spectrum of choices and their implicationsrdquo Lars Brehm amp
Armin Heinzl M Lynne Markus (2001) depict that the IS literature distinguishes between
custom-built and off-the-shelf software Enterprise resource planning (ERP) packages are
often viewed as off-the-shelf software because adopters implement them by setting
parameters (called configuration) rather than by traditional programming Making
changes to ERP software code (called modification) is usually strongly discouraged by
vendors and implementation consultants Nevertheless field research has shown that
many companies have had to modify ERP software in various ways to meet essential
business needs In this paper they describe a portfolio of tailoring options between
configuration and modification with important implications for implementation risk and
the difficulty of ERP system upgrades but with companyrsquos advantages [16]
20
Babak Akhgar Jawed Siddiqi and Samir Al-Khayatt (2002) summarized their findings in
the article ldquoStrategic exploitation of ERP for e-businessrdquo for the Proceedings of the
International Conference on Information technology Coding and Computing (ITCCrsquo02)
This paper based on research from an ongoing IS investigation project at a large
multinational company examines the relationship between ERP amp E-business The paper
discusses different scenarios of ERP implementation status that organizations may find
themselves It examines the components of e-business success namely visibility of
information processes and technology that will be either enabled or restricted by ERP
What transpires from this research is that for many start-ups e-business becomes
synonymous with business in general Ultimately they conclude that e-business should
form part of the corporate strategy and that IS or IT strategy should form the basis for
determining ERP implementation structures thereby ensuring e-business requirements
become the platform for ERP [2]
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther G Chattopadhyay (2004) The paper
presents research on ERP system characteristics particularly relevant for Small to
Medium Enterprises (SME) Authors investigated the duration of the project phases to
establish the human resource requirements through the selection implementation and
support of the ERP project Common factors that are crucial for an SME in the
manufacturing sector embarking on an ERP system are identified in this paper for system
selection and implementation User survey was carried out for a target group of SME
companies around Brisbane Australia The survey captured both qualitative and
quantitative data relating to the ERP system in place at a target group of electrical and
electronic equipment manufacturing companies located in South East Queensland
Australia Quantitative analysis was carried out on the cost of the ERP selection and
implementation project both in terms of capital outlay and human resources [87]
Reported implementations recognized the benefits of aligning business processes with a
target ERP system in the period prior to the go-live and authors summarize following
points
ERP system as a business tool for growth of SME
21
Critical selection factors unique and realized benefits different for each business
SME having limited resources (money people time) with which to evaluate and
implement ERP
Ongoing costs
Overall success
In the paper study ldquoERP Training Strategies Conceptual Training and the Formation of
Accurate Mental Modelsrdquo Tony Coulson Conrad Shayo CE Tapie Rohm Lorne
Olfman (2003) examined a major determinant of successful ERP implementation end-
user training The study finds that a workflow conceptual advanced organizer strategy
(TCT group) improves end-userrsquos mental model accuracy over time as demonstrated by
the subjectslsquoability to recall ERP specific concepts Results indicate that a conceptual
advance organizer is an important component of ERP training and should be incorporated
into an organizationlsquos training strategy In general the study supported the framework
and found that by adding a tool conceptual knowledge-level to the training the end-users
developed more accurate mental models By using the knowledge-level framework and
incorporating tool conceptual knowledge into an organizationlsquos training design
organizations may see an improvement in overall ERP implementation results For
example because ERP training is very expensive those within an organization that attend
ERP training are often asked to train others in the organization when they return This
study shows that adding a tool conceptual knowledge-level to their training improves
their ability to recall and re-articulate their understanding of the system By building the
knowledge-levels that enable more effective understanding and communication of
concepts learned could be an invaluable asset to any companylsquos training and
implementation strategy [24]
ldquoEnterprise Resource Planning Challenges for Small and midsize Business (SMBs)rdquo
Analyst Katherine Jones (2004) of Aberdeen suggests that small and midsize businesses
are primarily driven by operating cost pressures perceived as the biggest challenge and
their key challenges are
1 Insufficient funding for corporate strategies and initiatives
2 Lack of clearly defined corporate vision and goals
3 Ineffective communication of corporate strategies and initiatives
22
4 Metrics that do not sufficiently provide incentives employees to supportachieve
corporate goals
5 Inability to accurately determine and plan for customer demand
As the immense variability in how SMB companies conduct business still predominates
the SMBs see technology as the enablers of their strategies Specifically cited are the
increased availability of advanced analytics decision support and reporting tools as well
as the availability of process-specific business applications [55]
Christina Soh Sia Siew Kien and Joanne Tay-Yap (2004) through their study on the
subject ldquoCultural Fits amp Misfits Is ERP a universal Solutionrdquo Present early findings
from a larger ongoing study The typology of misfits and examples are drawn from the
review of implementation documents and supplemented by interviews with key project
team members from one hospital [102]
In their White Paper ldquoERP Selection ndash Right Tracking Enterprise Change ITSg-GCPrdquo at
TCS Dr Joginder Singh Lamba amp Swapnil Kitcha (2007) analyzed the fact that
business changes in the form of portfolio expansion structure decentralization and supply
chain integration drive new investments in ERP Besides the need for more functional
areas within the IT landscape (BI CRM PLM and Product Information Management)
demands new interfaces with ERP backbone Heterogeneous compatibility and varied
maturity across modules elicit interest in best of breed solutions in ERP [64]
In ldquoFuture of ERP systems and Microsoft Dynamics Learn about XML and Web
servicesrdquo McKie (2008) discusses what sort of requirements XML and web services put
on business applications He further explains ERP systems need to be able to create
XML schemas (data specifications) and they need to be able to import and export data in
XML documents The more data an ERP user needs to share with business partners the
more important is to have these capabilities In addition to XML McKie identifies a
second type of Web service that offers functionality rather than data is expected to
emerge in the form of business partner integration analytics and alerts [79]
David Caruso (2005) Senior Vice President Industry Research AMR in his article
ldquoProcess Productivity and Profit The SMB Executiversquos Framework for ERP
Investmentrdquo narrated that SMBs which are not aggressively developing an effective ERP
strategy will be at some disadvantage to their peers by 2006 Forward-thinking executives
23
will consider strategic business capabilities as the drivers for enterprise resource planning
(ERP) investment justification In a 2005 study that AMR Research conducted with over
550 companies regarding their ERP investment plans and found that only 27 of small
companies (fewer than 500 employees) are currently using ERP This is in sharp contrast
to the 57 of large companies (500 to 2499 employees) and 70 of enterprise-sized
companies (2500-plus employees) that have operational ERP systems Given this data it
is not surprising that almost 50 of the respondents interviewed will be making
substantial changes to their existing ERP systems over the next 12 to 18 months The
challenge for executives charged with the decision is establishing a powerful context for
making the ERP investment [20] When considering the ERP investment decision from
the perspective of the executive suite there are four overarching drivers that frame what
executives need to consider
1 Productivitymdashgetting the most from your valuable employee assets
2 Connectivitymdashworking collaboratively with your key customers and suppliers
3 Business insightmdashImproving the speed and quality of decision making
4 Total cost of ownershipmdashreducing the cost of owning and operating IT systems
Yong Jean John amp Ki-Henry Yim (2001) in an article ldquoA study on an Environment of
ERP Introductionrdquo includes the role of ERP perception of ERP value ERP plan
direction and also argues various checkpoints as a preview of ERP introduction In
conclusion they list checkpoints in sequence based on the mean values that provides
indications of the relative importance As a result the most important checkpoints were
Performance of Introduction Main Reference Sites Availability of Current Resources
Easiness of Introduction Operation System Past Records of Supply Market Share and
Vendor Size The results shown in this paper has shown strong implications for ERP
vendors Vendor size and market share received the least attention amongs all the
checkpoints described in the study [125]
One step forward IQMS Executive White Paper (2007) ldquoHow Successful ERP Selections
are Made ldquo this paper is not just about want and donrsquot want from the various people in
the organization It suggests that it should be a long lasting purchase that provides the
users the feeling of a partnership As the user is not just buying software they are also
buying into a vendor and their company culture The combination of software capability
24
and vendor credibility should be a major purchasing factor There is more to a lasting
ERP purchase than that There are several platform thoughts on technology how many
vendors are included the demonstration the always useful buzz words with all the hype
on service oriented architecture (SOA) best of breed lean manufacturing and all the
other phrases floating in the industry today implementation time customer referrals
customer retention look at your company objectively etc [49]
Robert C Beatty amp Craig D Williams (2006) in ldquoBest Practices for Successfully
Implementing an ERP Upgraderdquo maintain that an ERP upgrade is deceptively complex
and can be daunting especially for organizations ignorant of the massive effort required
to do it correctly One study of mid-size to large companies conducted by AMR Research
found that 67 of these companies are implementing some form of ERP while another
21 are evaluating potential ERP systems solutions As a growing number of companies
adopt ERP systems ERP systems implementation and upgrades are identified as one of
the top five IT priorities among global CIOs according to independent surveys conducted
by Morgan Stanley and Deloitte amp Touche IDG Research Services Group In
conclusion this article provides organizations with a list of the eight most common
recommendations suggested by organizations that have already completed at least one
upgrade to their initial ERP implementation [11] These are
Finding 1 Build your business case on new functionality
Finding 2 Treat the upgrade like a new project
Finding 3 Keep the team together
Finding 4 This is a business project not an IT project
Finding 5 Watch for hidden infrastructure costs
Finding 6 Un-customize customizations
Finding 7 Test like your organizationrsquos future success depends on it
Robert Davison (2002) raises a valid point through his article ldquoCultural Complications of
ERPrdquo discussed cultural misfits from a Singaporean perspective This implies that a one-
size-fits all or one-business-model- fits-all approach is unlikely to be successful As much
of ERP literature originates from and describes application contexts in North America
and to a lesser extent Western Europe where most ERP developers are located and
implementations have occurred Developers and consultants need to adapt their products
25
and services for different cultural markets Awareness of cultural differences and prefer-
ences will certainly improve the assessment of ERP suitability and any subsequent
implementation [27]
A group of researchers Siew Kien Sia May Tang Christina Soh Wai Fong Boh (2002)
from Information Management Research Center Nanyang Business School in their
research paper ldquoEnterprise Resource Planning (ERP) Systems as a Technology of Power
Empowerment or Panoptic Controlrdquo explores ERP as an ambivalent technology of
power According to them on the one hand it may tighten management control by
bringing a new level of panoptic visibility to organizational activities on the other hand
the embedded business model within the ERP may drive empowerment of employees and
greater control relaxation through the configuration of new process design This research
seeks to understand how the different forces play out in the context of ERP
implementation and to explore the implications for traditional power distribution in
organizations It adopted a mixed qualitative-quantitative methodology in an intensive
case study of a restructured hospital in Singapore A survey of 260 users was
administered supplemented by approximately 27 hours of individual interviews with 23
people Results reveal that although ERP can facilitate both empowerment and panoptic
control management has consciously resisted empowerment by working to reinstitute the
power lost through the ERP implementation On the other hand the new panoptic
visibility though partially unintended appears to have evolved naturally and was readily
learned and applied in the organization This study is significant in exposing the
likelihood of ERP implementation as a technology that perpetuates management power
At least in the context of the hospital studied it is yet another means of enlarging the
management authority for ldquototal controlrdquo Current articulations of ERP by practitio-
nersmanagement as empowering thus appear to be more theoretical than real This is
consistent with the perspective of critical theorists (eg Sewell amp Wilkinson 1992
Weber 1947 Tannenbaum 1968) that organizational life will become increasingly
rationalized and more controlled Thus the findings support the critical perspective in
exposing the likelihood of ERP implementation to perpetuate management power Being
a single case study the external generalization of the above analysis is limited Future
research should be sensitive to the formative context (eg the nature of the pre-existing
26
structure the Asian cultural context) and the distribution of authority among
organizational actors (eg presence of management intention) in an organization The
dynamics of panoptic control and empowerment during ERP implementation may be
different in organizational transformation contexts or in organizations with more fluid or
organic pre-existing structures It may also be interesting to follow the analysis of
panoptical and empowerment over an extended period to get a better understanding of
their continuously evolving dynamics [98]
Suprateek Sarker and Allen S Lee (2003) in the paper ldquoUsing a Case study to test the
role of three key social enablers in ERP implementationrdquo indicate that three key social
enablersmdashstrong and committed leadership open and honest communication and a
balanced and empowered implementation teammdashare necessary conditionsprecursors for
successful ERP implementation In a longitudinal positivist case study we find that
while all three enablers may contribute to ERP implementation success only strong and
committed leadership can be empirically established as a necessary condition This
presents a challenge to future ERP researchers for resolving apparent contradictions
between the existing literature and the results of our analysis and for investigating the
nature of interactions among the leadership communication and team characteristics
[93]
Srinivas Mantha (2007) in the article ldquoERPndashBusiness Processes with IP
Communicationsrdquo explained the fact that the key to new competitive capability is
envisioning the enterprise in terms of business wide relationships to improve user
experience across the network exploit knowledge and enhance and accelerate core
processes IP Communications is the catalyst for this capability It enhances the value of
the user experience exploits knowledge value and increases the value of business
processes [76]
Linda Askenaumls amp Alf Westelius (2000) from Linkoumlping University Sweden explore
a new vista of ERP through their literature ldquoFive Roles of an Information System A
Social Constructionist Approach to Analyzing the use of ERP Systemsrdquo This paper
presents a novel way of thinking about how information systems are used in
organizations Traditionally computerized information systems are viewed as objects In
contrast by viewing the information system as an actor our understanding of the
27
structure process increases The user being influenced by the ERP (Enterprise Resource
Planning) system and giving it an actor role thereby also confers agency on the ERP
system Through its very use it influences actions and thus the structure as well Based
on a case study of ERP use in an ABB company for over a decade five different roles
played by the ERP system were identified The ERP system acted as Bureaucrat
Manipulator Administrator and Consultant or was dismissed (Dismissed) in the sense
that intended users chose to avoid using them In conclusion the purpose of this approach
is not to ldquoanimaterdquo the information system to give it life or a mind of its own but rather
to make explicit the socially constructed roles conferred on the information system by
users and others who are affected by it On this basis it is possible to suggest how the
roles can help us opening up the new areas of exploration concerning the fruitful use of
information technology [70]
Jinyoul Lee Keng Siau and Soongoo (2003) conducted a study on the topic ldquoEnterprise
Integration with ERP and EAIrdquo They state that to survive and thrive in these hypercom-
petitive markets it is essential for a company to understand rapidly changing business
circumstances To rapidly respond to a changing environment an enterprise must
integrate business functions into a single system efficiently utilizing information
technology and share data with third-party vendors and customers While ERP forces the
adoption of standard business processes EAI enables enterprise integration over business
object levels ERP thereby supports a centralized business strategy while EAI naturally
accommodates decentralized business processes Lastly they observe the fact True
enterprise integration means both technical and behavioral integration It is not simply
integrating different systems applications or business processes dispersed across an
enterprise It is integrating structural changes different behaviors and various
information systems in an enterprise Enterprise integration is costly and time-
consuming thus management should be cautious in the design of the project
Organizations should not blindly rush into new technologies Top management should
first strive to understand their business and needs for enterprise integration and then
select a methodology of enterprise integration [68]
Wilhelm Scheer and Frank Habermann (2000) in ldquoMaking ERP a Successrdquo have used
business process models at an operational level of e-business to achieve positive results
28
They have talked of different scenarios in e-business As in Business-to-Business
applications such as Supply Chain Management the user has to connect the ERP systems
of all business partners This means he has to fight not only with the thousands of
parameters of a single ERP system but with twice as much (or even more) Another likely
scenario is that the business partners involved in an inter-organizational supply chain are
using ERP systems of different vendors In this case a business process model can be
firstly used to define the conceptual value chain Secondly the conceptual model that is
independent from a certain software vendor can be linked to the repositories of the
different ERP systems in order to customize an integrated software solution These
examples demonstrate that business process models play a major role for the success of e-
business Some ERP vendors like SAP have understood this development and are already
implementing their first model-based e-business applications [94]
Ash CG (2001) in An e-Commerce Model for Extending ERP Systems onto the
Internet An Australian Perspective stated that an established research framework of e-
Business change is used to identify the factors for success of this e-business project
within an ERP environment The results confirm that a successful project was found to
have facilitators in all components of the business framework including the change
environment and project management Further there is the implication that the least
successful e-business projects will have inhibitors in both dimensions especially in the
area of cultural readiness and change management In this case study conflict arose
between local project management initiatives versus a centralized autocratic global ERP
deployment This highlights the need to encourage the balancing of conflicting
organizational knowledge when contemplating the adoption of e-business solutions [7]
Huigang Liang Yajiong Xue William R Boulton Terry Anthony Byrd (2004) ldquoWhy
Western Vendors donrsquot dominate Chinarsquos ERP Marketrdquo Examined cases of failed ERP
system implementation in China and explaining the unique circumstances These foreign
ERP implementation failures emphasize the need to localize strategies even for the
global ERP leaders The general manager of a foreign ERP vendor explained ldquoOne
should understand nationrsquos history and its culture before one starts doing business with
foreign companiesrdquo The cases of failed implementation suggest global ERP vendors
require more than superior technology and experience Their ERP strategies must also
29
address the cultural differences affecting ERP implementations Strategies need to
overcome problems relating to language reporting formats and content cost control
capabilities frequent business process redesigns effective customer support and capable
consulting partners [69]
In the research findings ldquoAn Agency Theory Model of ERP Implementationrdquo Vedabrata
Basu Albert L Lederer (2004) develop a model of testable propositions for applying
agency theory to study the relationship between implementation consultants and client
organizations deploying the ERP systems and to consequently evaluate how the
relationship affects the implementation success Therefore management needs to know
the factors that drive successful ERP implementation a product of the continuous
interaction between the implementation consultants and client firms Agency theory has
been successfully used by different researchers to explain relationships between two
parties seeking a common outcome This paper develops a conceptual model with the
variables and relationships that may play a critical role in explaining the sources of that
frustration It offers a foundation for research that can extend the applicability of agency
theory can help clients and consultants manage their relationships during the
implementation process and thus help them enhance the probability of ERP systems
implementation success It may also be useful for managing other outsourced IS projects
that have implementation settings similar to ERP [10]
Christian Vogt (2002) ldquoIntractable ERP A Comprehensive Analysis of Failed Enterprise-
Resource ndash Planning Projectsrdquo makes an analysis of possible causes that led to the
disasters for ERP implementation failures and suggests software engineering processes
that help avoiding such outcomes The Model Based Architecting and Software
Engineering (MBASE) guidelines developed by Prof Barry Boehm and Daniel Port at
the Center for Software Engineering (CSE) at USC provide a base for these elaborations
for a long time SW Engineering experts have praised commercial-off-the-shelf (COTS)
packages as the panacea to complex software development Far from it the elaboration
in this survey shows that the deployment of COTS packages may be extremely intrinsic
one does not know whether some COTS software adheres to its interface specifications or
how deficient it is or how well its performance scales up as workload demand grows
The upshot is that COTS software will always be an alien element in the software to be
30
developed and it should be considered that way Dye-in-thendashwool COTS package ERP
systems exhibit plenty of dangers Only if appropriate risk management and enough time
for stepwise employment is provided for ERP system can be tamed [115]
In the research findings ldquoImplementing Best Practices in ERP for Small amp Medium
Enterprisesrdquo Rashmi Jha A K Saini and M N Hoda (2008) provides an interesting
insight into taking ERP implementation as a project and develops problem driven
approach to examine its complex phenomena The implementation process will be
divided into several components which will reflect the nature of ERP projects and makes
them distinctive from other systems design methods This paper also addresses critical
issues relating to developing entrepreneurship for sustainable development of small and
medium size enterprises(SMEs) for its future extensions and added benefits It may also
be useful for managing other outsourced Information System (IS) projects that have
implementation settings similar to ERP [53]
Saumyendu and Maya Daneva (2003) in ldquoLessons Learnt from Five Years of Experience
in ERP Requirements Engineeringrdquo summarizes one companyrsquos five years of experience
in making a generic ERP RE model a live process It rests on previously published ERP
RE process assessment results and reports on what we learnt with particular focus on
typical issues organizations face when adopting a standard model and solutions that can
be used to avoid those issues in the future Each of our lessons is described together with
a RE practice technical foundation for the practice and engineering techniques for the RE
practitioner The lessons were used to refine our Corporate Documentation Model a
process-focused and template-based ERP-architecture framework [40]
In ldquoResearch on Agent-Based Architecture of ERP For Small amp Medium-Size
Enterpriserdquo Rui-Xue Fu Zhan-Hong Xin and Can Chen (2007) suggests that with the
rapid development of information technology and the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward To address these problems a MAERP system architecture has been developed
in which the agents are classified into four types F-Agent for realizing an operation
application C-Agent for coordinating with other agents I-Agent for a communication
31
tool between the user and the MAERP system and T-Agent for performing specific tasks
and data collecting [35]
Xavier Franch and Juan Pablo Carvallo (2003) in the research paper Using Quality
Models in Software Package Selection found that the absence of structured descriptions
of quality features and user quality requirements makes selecting the right software
package difficult The authors propose a methodology for describing the quality features
of domain-specific software packages uniformly and comprehensively using ISOIEC
9126-1 quality standards as a framework [34]
In the paper study ldquoRevisiting ERP Systems Benefit Realizationrdquo Paul Hawking and
Andrew Stein (2004) maintains that many companies initially implemented their ERP
systems to solve Y2K and disparate systems issues These same companies are now
looking at a how to strategically leverages their investment in these systems through the
implementation ldquosecond waverdquo functionality This paper identifies the expected and
actual benefits of ldquosecond waverdquo implementations In addition it identifies barriers which
limit the benefit realization The findings reinforce that ERP implementations are people
focused projects which rely heavily on change management for success [45]
Hamid Nach and Albert Lejeune (2008) ldquoImplementing ERP in SMEs Towards an
Ontology Supporting Managerial Decisionsrdquo state that the purpose of this research
project is to consolidate and formalize as ontology on the basis of an extensive literature
review the key processes and skills required for successful implementation of ERP in an
SME Using the Proteacutegeacute software program the research identified and formalized 395
terms each of which has its own definition Exploitation of this ontology could take
multiple and varied forms including creation of a learning system an on-line cooperation
platform or a project management process mapping tool contributing to successful use of
ERP in SMEs [81]
While Gul Tekin Temur and Sitki Gozlu (2008) ldquoDetermination of Performance Criteria
for ERP Software Technologyrdquo mention that the main goal is to determine the
performance criteria for ERP software technology with respect to their sources Today
the companies are in interaction with many internal and external partners and have to face
many situations in various environments Especially many small and medium sized firms
utilize ERP software technology to plan their business interactions in the chain In this
32
study firstly a literature search is accomplished Then in order to reveal the performance
criteria a large-scale automotive company has been selected to conduct interviews with
managers Also the meeting reports of a few small and medium-sized companies have
been analyzed As a result of the analysis on findings the common views of the firms
about performance criteria are classified into four groups according to their sources such
as people technical managerial and economical The sub factors of these main criteria
are also taken into account in order to point out the origins of the criteria The results of
the study will provide insight to researchers and as well as to professionals in the practice
[108]
Maya Daneva (2004) in ERP Requirements Engineering Practice Lessons Learned
mentioned the fact that organizations implementing Enterprise Resource Planning (ERP)
systems have been increasingly adopting generic off-the-shelf requirements engineering
(RE) process models Yet little information exists about the challenges of making a
generic RE model a life process This article discusses why bringing an off-the-shelf
process in is not a sufficient foundation The author shares experiences acquired over the
past five years of eliciting modeling and validating requirements in ERP projects and
highlights typical issues and their solutions Among the keys to success are planning RE
model use in the clients context and installing processes to support key RE activities [25]
While the article ldquoRescuing Troubled Software Projects by Team Transformation A
Case Study with an ERP Projectrdquo by Kim Man Lui and Keith C C Chan (2008)
differentiates various reasons of ERP project failures It further states that many software
projects fail whether failure is measured in terms of budget schedule or some other
requirement The causes of such failures are many but are not always easily recognized
This is not the least due to the human dimension of corporate activities as spurious or
misdiagnosed issues in Enterprise Resource Planning (ERP) projects can take on a life of
their own and become a magnet for company politics This paper reports an industrial
case in which the senior management attempted to deal with a troubled ERP
implementation (SAP R3) in an international fast moving consumer goods (FMCG)
company during 2001 and 2002 This paper reflects this dimension as it uses original
emails and PowerPoint slides to recount a number of representative episodes in a troubled
but ultimately successful project At the heart of this success is the realization that
33
whereas it can be difficult and time-consuming to do root-cause analyses it is relatively
simple to identify problem owners In this case the senior management without IT
backgrounds turned around a failing project by reorganizing the team structure according
to process areas so that issues in each process area had one problem owner We
summarize the managementrsquos actions into a troubleshooting framework and in addition
suggest three actions for rescuing troubled projects keep the project manager but narrow
down the managerrsquos scope of responsibility to one or two process areas assign the right
people to be responsible for other process areas and have the General Manager chair the
ERP meetings [60]
In the PICMET 2006 Proceedings on ldquoOptimizing the Change Management of Enterprise
Resource Planning Systems Implementationsrdquo Onur Kerimoglu and Nuri BaUogluI
(2006) maintain that although Enterprise Resource Planning (ERP) systems are being
used widely all around the world they also carry out many problems as well as their
benefits These systems are well known for enhancing cross functional efficiency and
effectiveness through the integration of all information flowing throughout an
organization However during different project life cycle stages of ERP systems this
integration may not be provided because of the formulation of incompatibilities which
are greater than the optimum level among different parties like ERP system processes of
the organization and system users Within this study existing incompatibilities between
these parties are modeled respectively In common the model propose that the ERP
product mostly matching with the processes of the organization should be selected
processes of the organization should be changed for being compatible with the ERP
system and system users should be educated new qualified people should be hired etc
for making the system and processes more familiar to people Here the point is that all of
these are done for keeping incompatibilities between the ERP system processes and
people at minimum level because this minimalism will avoid optimization and utilization
problems This study not only handles problems of ERP from a newer perspective but
also provides insight to managers about managing the change and utilizing their resources
efficiently for adopting the ERP software across the organization [59]
Capaldo Guido and Rippa Pierluigi (2008) in ldquoA methodological proposal to assess the
feasibility of ERP Systems Implementation Strategiesrdquo stated that Continuous failures in
34
ERP systems implementation project are today the main challenge in the feasibility of
integrated information systems Failure can be determined by different factors both from
technological side and organizational side if not well managed In this paper we propose
a methodological approach based on technochange management in order to assess the
feasibility of ERP implementation strategy and reduce the risk of failure in terms of
project metrics and early operational metrics A case study in a big Italian
Telecommunication Firm will be presented [19]
ldquoCase Study of PLIVA Pharmaceuticals Inc - Aligning ERP System Implementation
with Business Process Changerdquo is very relevant and contemporary paper presented by
Vesna Bosilj Vuksic and Mario Spremic (2004) The main objective of this paper is to
present the impacts of information technology (IT) and enterprise resource planning
(ERP) systems in business process renovation projects A case study of business process
reengineering project and the implementation of the SAP software solution in PLIVA
(PLIVA pharmaceuticals Inc) are presented [116]
In ldquoKey Factors Driving the Success of Technology Adoption Case Examples of ERP
Adoptionrdquo Chonyacha Suebsin and Nathasit Gerdsri (2009) address the issues that
impact technology adoption within an organization Several factors influencing
technology adoption process are identified from the literature review Case examples of
the adoption of a new management technology Enterprise Resource Planning (ERP) are
presented to illustrate the situations of technology adoption in organizations From the
case examples the factors influencing technology adoption in organizations are
consistent with the factors identified from the literatures The further discussion also
reveals the additional determinants including the clarification of project scope individual
commitment and communication which should be taken into consideration when an
organization adopts a new technology [105]
Maya Daneva (2002) in her paper ldquoUsing Maturity Assessments to Understand the ERP
Requirements Engineering Processrdquo mentions that applying standard requirements
engineering (RE) processes is a major trend in todayrsquos Enterprise Resource Planning
(ERP) software engineering It emerged five years ago with the promise to provide a
mechanism helping ERP project organizations deliver their business requirements timely
and within budget This paper looks in depth at a standard ERP RE process and seeks
35
answers to four questions how well it is defined what are the risks associated with its
application in matureimmature organizations what are the essential practices that
contribute to its success and what are the costs of the process and the quality of the
delivered results The main motivation of this paper is to provide some practical advice
for using assessments to increase project teamsrsquo understanding of the ERP RE process
[26]
Fan JC and Kwoting Fang (2006) ldquoERP Implementation and Information Systems
Success A Test of DeLone and McLeans Modelrdquo present their research that develops
and tests a theoretical extension of DeLone and McLeans model of information system
(IS) success which explains personnel belief that contributes to users utilization of ERP
(enterprise resource planning) systems The extended model is tested using the structural
equation model (SEM) a survey of 202 end-users from ten Taiwanese enterprises that
has implemented Data Systems workflow ERP systems is conducted The theoretical
model proposed in this study provides insight into how the concept of useful perception is
incorporated into DeLone and McLean model and plays a critical mediated role to
influence system usage and its associated satisfaction The implications of these findings
for researchers and practitioners are discussed [32]
In the research findings ldquoManaging ERP Implementation Failure A Project Management
Perspectiverdquo Charlie C Chen Chuck C H Law and Samuel C Yang (2008) stated that
Information Technology (IT) projects are susceptible to changes in the business
environment and the increasing velocity of change in global business is challenging the
management of enterprise systems such as enterprise resource planning (ERP) At the
same time system success depends on the rigor of the project management processes
Scope creep poor risk management inadequate allocation of human resources over time
and vendor management are some common problems associated with the implementation
of an enterprise system These issues pose threats to the success of a large-scale software
project such as ERP This research adopts a case study approach to examine how poor
project management can imperil the implementation of an ERP system Having learned
the lessons from the failure of its first ERP implementation the company in this case
reengineered its project management practices to successfully carry out its second ERP
implementation Many critical project management factors contributed to the failure and
36
success of this companyrsquos ERP system This study explores and identifies critical
elements of project management that contributed to the success of the second ERP
implementation For those organizations adopting ERP the findings provide a roadmap
to follow in order to avoid making critical but often underestimated project management
mistakes [21]
Rafa Kouki Robert Pellerin and Diane Poulin (2008) in An Exploratory Study of ERP
Assimilation in Developing Countries The Case of Three Tunisian Companies assessed
that ERP systems could be considered as the most difficult systems to be assimilated
Very little research however has been realised to investigate the determinants of success
of the ERP assimilation process There has been also a dearth in research about ERP
projects in general and ERP post-implementation and assimilation in particular in
developing countries Using a case study methodology grounded in the diffusion of
innovation theory this study tries to understand the factors that could improve or
challenge the ERP systems assimilation process in three Tunisian companies Our
findings highlighted the importance of several factors such as top management support
strategic alignment IT expertise training communication organizational culture and
coercive pressures [62]
Ian Sommerville (2008) Construction by Configuration Challenges for Software
Engineering Research and Practice observed that past ten years have seen a radical shift
in business application software development Rather than developing software from
scratch using a conventional programming language the majority of commercial
software is now developed through reuse ndash the adaptation and configuration of existing
software systems to meet specific organizational requirements The most widespread
form of reuse is through the use of generic systems such as ERP and COTS systems that
are configured to meet specific organizational requirements In this paper he discussed
the implications of software construction by configuration (CbC) for software
engineering Based on his experience with systems for medical records and university
administration he highlighted some of the issues and problems that can arise in
construction by configuration he discussed problems that arise in CbC projects and
identify a number of challenges for research and practice to improve this approach to
software engineering [104]
37
SV Deshmukh and RR Lakhe (2008) in the research paper ldquoSix Sigma ndash An Innovative
Approach for Waste Reduction A Case Study of an Indian SMErdquo present a case study
aimed at reducing waste at an SME engaged in manufacturing of corrugated boxes The
Define Measure Analyze Improve Control strategy of Six Sigma methodology was
followed to identify probable causes for wastages After studying the system and
implementation of six sigma tools an overall 227 waste reduction was achieved
Individually out of a total seven processes 5 showed waste reduction in excess of 40
This reduction was statistically significant at Plt005 The study confirmed successful
implementation of six sigma to minimize waste generation and in terms saving in
manufacturing costs or increasing the bottom line [29]
While in ldquoERP Implementation Critical Success Factors - The Role and Impact of
Business Process Managementrdquo Yasar F Jarrar Abdullah Al-Mudimigh and Mohamed
Zairi (2000) investigate the role and impact of business process management in
successful ERP implementation The paper starts by defining business process
management ERP and the ERP critical success factors The impact of business process
management on successful ERP implementation is then assessed through looking at the
experiences of several organizations The paper concludes by highlighting best practices
for capitalizing on business process management for successful ERP implementation
[52]
M S Camara L Kermad and A El Mhamedi (2006) in the paper ldquoRisk Prediction in
ERP Projects Classification of Reengineered Business Processesrdquo maintain that
Companies have been implementing ERPs for almost ten years now and more the same
implementation problems continue to occur More and more ERP projectrsquos technological
challenges are accompanied by critical dimensions related to the management of the
transformational effects of these projects on the organization Indeed risk management in
this kind of project is not very structured and misses specific methods In this article they
propose a structured methodology for risk management particularly in the BPR (Business
Process Reengineering) sub-project of ERP implementation The final aim of our work is
to decease appreciably resistance to organizational change which poses the greatest
obstacle to business process reengineering efforts They propose to adapt OSR (Optimal
Set Reduction) a risk management method used in software development for the risk
38
management in ERP implementation They address specially the risk related to the
changes in enterprise processes in the ERP project To achieve this objective they
propose to define business process change metrics starting from business process
complexity metrics that exist in the literature [18]
ldquoExploration and Verification of Factors in the Front-end Stage of the ERP
Implementation Process Evidence from Case Study and Survey Researchrdquo Kun Shi and
Qiang Lu (2009) depict that ERP (Enterprise Resources Planning) is widely used to
improve business performance This paper explores how the factors associated with the
Front-end ERP Implementation Process (FEIP) affect the implementation outcome First
based on literature review a preliminary framework with 12 hypotheses is developed
Then Grounded Theory is applied for a case study to further extract and verify the factors
and sub-factors These factors are finally identified as strategic planning corporate
culture user characteristics organization-process-system maturity external expertise
engagementsupport and project preparation Furthermore the significance and
correlation of all the factors are detected by conducting survey research with SPSS as a
tool for analysis The study shows that the framework is valid and that among six three
factors have strong impact on the ERP implementation result whereas others are less
influential Implication is given and limitation is indicated at the end [63]
Huo Lingyu Liu Bingwu and Li Juntao (2009) in the paper ldquoAn ERP System Selection
Model Based on Fuzzy Grey TOPSIS for SMEsrdquo present a new fuzzy multi-criteria
decision making (FMCDM) approach which integrates the technique for order preference
by the similarity to ideal solution (TOPSIS) grey relation and fuzzy set theory for
enterprise resource planning (ERP) system evaluation and selection in the Small and
Medium-Sized Enterprises (SMEs) In this study the characteristic of the alternative with
respect to the criteria are represented in terms of a linguistic term set and the weight of
the criteria is described by triangular fuzzy numbers respectively According to the grey
theory and fuzzy set theory a closeness coefficient is defined to determine the ranking
order of all alternatives by calculating the grade of grey relation to the fuzzy positive-
ideal solution (FPIS) and fuzzy negative-ideal solution (FNIS) simultaneously Finally
an example is shown to highlight the procedure of the proposed method [48]
39
Gao Juntao Zhang Li Wang Zhiyao (2008) summarized their findings in ldquoDecision
Support for Handling Gaps between ERP functionalities and Organizational Needs A
Goal Reasoning based approachrdquo They found that in the process of selecting
commercial off-the-shelf (COTS) ERP systems it is inevitable to encounter gaps between
ERP software and organizational needs Gaps occur when COTS attributes do not exactly
match organizational needs and they make organizational users and software vendors in
the dilemma whether to adapt as-is business processes or to customize software
packages A decision support method for handling gaps is proposed in this paper Firstly
organizational goal-process models are built as the base for decision making Secondly
the idea of evidence theory is introduced into goal reasoning and a quantified algorithm is
proposed to evaluate the impacts of different business processes on high level goals
which are critical to make decision At last the risk is discussed to rank intervals which
specify the expected utilization of business processes [56]
Yvonne Dittrich and Sebastien Vaucouleur (2009) conducted a research on the topicrdquo
ERP Customization as Software Engineering Knowledge Sharing and Cooperationrdquo and
argue that Enterprise resource planning (ERP) systems must be configured and
customized to fit a specific company The authors discuss cooperation with regard to ERP
systems customization Enterprise resource planning (ERP) vendors provide multiple
configuration possibilities ranging from module selection to master data provision to
steer access rights for different users These configuration possibilities cover anticipated
variability If the customer requires adaptation beyond whatrsquos anticipated the source
code of the product must be adapted Customizations in this articlersquos context are source-
code-based adaptations of software products The size and complexity of customizations
range from simple report generation to developing independent add-ons that support
specific businessesmdashfor example solutions for flight carriers The size and lead time of
such projects can compare to a full-size software development project They present
empirical research on customization practices of ERP systems as an example of software
development based on customization of standard software They compared customization
with other development practices that are based on integrating existing code and results
underlined the need to rethink software engineering and programming methods and tools
[129]
40
In the paper study ldquoSignificance of Software Metrics in ERP Projectsrdquo S Parthasarathy
and N Anbazhagan (2006) narrate that ERP projects are a subclass of software projects
often accompanied by large-scale organizational changes One of the major reasons found
in the literature for the failure of ERP projects is the poor management of software
processes In this paper we propose a Software Metrics Plan (SNP) containing different
software metrics to manage software processes during ERP implementation Two
hypotheses have been formulated and tested using statistical techniques to validate the
SNP The statistical analysis of the collected data from an ERP project supports the two
hypotheses leading to the conclusion that the software metrics are momentous in ERP
projects [84]
Antony Marsh (2000) in the article ldquoThe implementation of Enterprise Resource Planning
systems in small and medium Manufacturing enterprises in south-east Queensland a case
study approachrdquo examines the implementation of ERP systems in smallmedium-sized
enterprises in South East Queensland Australia Nine case studies were conducted to
determine factors for success or failure in the implementations Key success factors
identified included cross-functional team approaches organizational experience of
similar scale IT or organizational change projects and lsquodeeprsquo understanding of the key
issues relating to ERP implementations Failure factors identified included top-down or
consultant driven implementations IT department driven implementations or
implementations where the EFV is seen as a quick technological fix to problems within
the operation of the firm rather than as a strategic investment [78]
Christian Doumlrner Sebastian Draxler Volkmar Pipek and Volker Wulf (2009) through
their study ldquoEnd Users at the Bazaar Designing Next-Generation Enterprise Resource
Planning Systemsrdquo propose that the bazaar metaphor has developed a lasting
popularity in software engineering especially as software architectures have evolved
from monoliths to service orientation Nevertheless the metaphor is limited because it
doesnt consider end users those who develop software for themselves Introducing such
an end user the prosumer to the bazaar not only suggests a changing division of work
in software development but also calls for different functionality and architectural
choices The authors evaluated changing software architectures from an end-user
development (EUD) perspective taking the case of enterprise resource planning (ERP)
41
systems as traditionally monolithically designed systems moving toward service
orientation On the basis of the studys findings which indicated problems with the
systems technical flexibility the authors developed a tool set for fostering EUD
activities Their new architecture for ERP systems enables end users to create their own
solutions [31]
Kenny KF Lee (2000) in ldquoThe Five Disciplines of ERP Software Implementationrdquo has
identified the critical factors in businesses which learn grow and succeed This paper
applies the central concepts of the book its five disciplines to the software business
specifically the management of software implementation Using the learning challenge
posed by the organization-wide implementation of Enterprise Resource Systems (Em) the
paper covers how EM software project leaders may manage themselves their teams
business vision and corporate culture and team members to create a survival machine
which can thrive in the current economic and technological climate [67]
Piet MA Ribbers amp Schoo (2000) in his paper ldquoDesigning Complex Software
Implementation Programsrdquo raises a central question that how one can design of Program
Management contributes to the success of complex software implementations
Incomplete goal specifications lack of communication and underestimation of project
complexity are signs of insufficient program and project management To avoid these
pitfalls he proposes ways that have worked well in recent complex multi-project ERP
implementations (programs) Answering the above question raises the problem of
adequately defining and measuring the level of complexity of an implementation
program A conceptual model was developed which identifies program management
factors that are proposed to have an impact on implementation success Fifteen cases
were studied to find support for the proposed framework [88]
ldquoDetecting Gaps between ERP Software and Organizational Needs A Semantic
Similarity Based Approachrdquo is very relevant and contemporary paper presented by Gao
Juntao and Zhang Li (2008) It depicts that Gap analysis is one of the most important
phases in implementation of enterprise resource planning (ERP) system In this paper an
approach is proposed to automatically detect gaps between software capacities and
organizational needs based on semantic similarity computation The approach takes two
business process models as input and one specifies software capacities and the other
42
describes organizational needs The output of it is a report of gaps As a matter of fact
the differences between application domain and software discipline make semantic
heterogeneity a key problem in gap detection therefore the technologies of semantic
similarity computing are employed to resolve ambiguity issues caused by the use of
synonyms or homonyms In particular the idea of similarity propagation is introduced to
pick out a mapping between corresponding activities and data and Hungarian algorithm
is employed to reduce its time complexity Then the similarity of whole models is
measured according to the minimal total cost of change operations Finally an
experiment is given to evaluate the method [36]
In the research publication ldquoERP System Adoption - Does the Size Matterrdquo Sanna
Laukkanen Sami Sarpola and Petri Hallikainen (2005) investigate the relationship of
enterprise size to the constraints and objectives of ERP systems adoption The survey
data based on the responses of 44 companies indicates that significant differences exist
between small medium-sized and large enterprises in ERP system adoption Specifically
the findings suggest that small companies experience more knowledge constraints than
their larger counterparts in ERP adoption Further while being the most prevalent
objective for ERP adoption in all the company groups business development through
ERP adoption is considered especially important by the medium-sized and large
enterprises Finally the findings of the study suggest that instead of considering small
and medium-sized enterprises as one homogenous group the differences between these
two groups of companies should be acknowledged in the future research [65]
In their paper ldquoModel Based on CSCWrdquo Wedian Liang XuFen Zhenkun Li Rong Xiao
JunFeng Hu (2005) summarise their finding They feel that Software testing is an
important component of the software engineering and an important link that the software
development quality is guaranteed Using the reasonable model for software testing can
reduce the expenses of testing in the developing activity in the course of testing thus cut
down the cost of software development In this paper we put forward a model for
software testing bused on CSCW technology that run through each stages of software
development cycle If can find the mistake in the software as soon as possible has
shorten the time taken for testing in the course of the development of software testing
43
effectively Finally we applied the model to the testing project which develops ERP
system and then receive the ideal result [118]
In their paper ldquoThe Research and Development of IMIS for Small and Medium-sized
Printing Enterpriserdquo Taolin Ma Xiaoming Chen Yansong Sun Xiurong Li (2009)
analyzed the fact that the basic management thought of inventory management
information system (IMIS) was established by analyzing the inventory management
theory of modern enterprise In this system which using the architecture of CS the stores
were classified by ABC management method the inventory control was completed by
setting up the safety stock and the largest stock the analysis and design of IMIS were
finished This IMIS was developed to meet the practical requirements of small and
medium-sized printing enterprise in our country It can not only be used as the important
measure of the informationized construction for small and medium sized printing
enterprise but also used as a subsystem of enterprise ERP system IMIS could improve
enterprise management level realize rapid transformation of enterprise and finally
enhance the competitiveness of enterprise in market economy [106]
Jiangao Deng and Yijie Bian (2008) in the research paper ldquoConstructing a Risk
Management Mechanism Model of ERP Projectrdquo mention that in the process of
information project implementation of manufacturing enterprises there are many risks to
set up a set of risk management mechanism is guaranteed for them to succeed in ERP
implementation Firstly based on the analysis of ERP project implementation of China
the paper introduced the risk management methodology systems and the relative model
which includes three main steps identifying risk evaluating risk and controlling risk
After that on the aspects of decision implementation and application stages of
manufacturing ERP project life cycle the paper discussed risks of each stage and put
forward a two-dimension matrix risk management strategy Then a mechanism model of
ERP project risk management is constructed which shows that information risk control
strategies of the last two stages not only depend on resources of these stages but also
have a diverse relationship with the last stage Finally according to the successful
implementation of an enterprisersquos ERP project the paper carried out an effective case
application analysis of risk management mechanism model The lack of improvement in
usersrsquo ERP skill levels and the shortage in documenting the rationale for business rules
44
and configuration decisions were among the critical issues of the post-implementation
stage Indeed all of their respondents stressed the importance of refreshing the usersrsquo
knowledge about the system [28]
Saumyendu Ghosh (2003) in ldquoGlobal Implementation of ERP Software ndash Critical Success
Factors on Upgrading Technical Infrastructurerdquo discusses that implementing an
Enterprise Resource planning (ERP) software in a global environment executive
sponsors face two key challenges While business processes are to be re-engineered to
align with the ERP software best practices technical architecture and infrastructure needs
to be in place globally as per specifications of the packaged software In the legacy
environment different countries or different business units use different systems based
on local standards supported by local resources In the new ERP world globally all the
countries must conform to same technical infrastructure Technical managers face
multiple critical issues implementing a global solution Most of the ERP software is
developed in technically advanced countries standards are often too high for under
developed or developing countries In an effort to bring the global organization to a
common platform different countries need different levels of upgrades In this paper the
authors review key technical issues faced is a global upgrade process to support a global
ERP implementation and how to resolve those We conclude although technical
infrastructure and business process reengineering both are equally important and each
implementation is unique but following some simple steps it is easy to prioritize each
ones during different phases of the project Also time lines of two sub-projects must
converge after initial phase and must follow a common plan for the project to be
successful Multiple scenarios are described to facilitate the process He concludes
although technical infrastructure and business process reengineering both are equally
important and each implementation is unique but following some simple steps it is easy
to prioritize each ones during different phases of the project Also time lines of two
subprojects must converge after initial phase and must follow a common plan for the
project to be successful Multiple scenarios are described to facilitate the process [38]
Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008) ldquoDevelopment and
Implementation of ERPCRM System Based on Open Source Software to Small and
Medium-sized Enterprise in Chinardquo analysed the fact that E-commerce and the
45
development of modern enterprise management raise a number of challenges in the
process of informatization of small and medium-sized enterprises (SME) in china To
address this they present an approach in which the informatization is enhanced by using
Open Source Software with customized policies We analyses the main
informationization obstacles of SME in china bring forward that the lack of bankroll
talents cost and management etc are the key problems to informationization of SME
Furthermore they have developed a textile foreign trade ERP CRM system based on
Open Source Software for the local textile distributor of china integrating financial
distribution sales and service processes given the implement method of overall planning
step-by-step implementation key breakthrough and efficiency guiding In the end we
compare the typical Open Source Software and traditional commercial software point
out the advantages of informatization based Open Source Software to SME in china and
the development trend of Open Source Software for enterprise application [132]
ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information Systems ndash a
Multi-disciplinary Method for ERP System Requirements Engineeringrdquo by Inka Vilpola
Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that ERP systems are in
most cases off-the-shelf software packages and large by their size and complex by their
structure Small and medium-sized enterprises (SMEs) require flexibility of the ERP
system because of their individual operational processes Therefore it is crucial to select
and implement an ERP system that fits the requirements of the intended target processes
To support the requirements engineering of ERP systems we have developed Customer-
Centered ERP Implementation (C-CEI) method The method introduces a multi-
disciplinary approach to the ERP project and provides in-depth understanding of the
companylsquos processes and context of use Using C-CEI method decreases the risk of
SMEs to select an inappropriate system and improves the system acceptance by the
customer companyrsquos employees In this paper we present the method and illustrate it by
three SME case studies [114]
Saumyendu Ghosh (2000) in ldquoChallenges on a global implementation of ERP softwarerdquo
discusses that some of the unique challenges in ERP implementation are satisfying
multiple countries statutory requirements and reporting to the corporate head quarters
from one installation of the software conflicting interests between different business
46
entities lack of experienced implementators in all the countries and eminent users of
multinational advantages He discusses different aspects of these challenges in detail and
point out that ERP software can provide only one solution for a particular business
process unless workarounds are available from experienced implementation Different
counties adopt different reporting and accounting practices and therefore an ERP
implementation cannot solve all problems that global corporation may have multiple
countries in the scope of the project due to absence of standard global processes across
the organization He concludes that the most important critical success factor of these
international implementations are how quickly these corporations can reengineer existing
business process to adopt best practices of using an ERP system [38]
Dong Cheng Feiyan Deng Hongtao Li (2006) ldquoCritical Factors for Successful
Implementation of ERP in Chinardquo in their study propound a theoretical model for
successful implementation of Enterprise Resource Planning (ERP) under Chinarsquos
environment and the authors analyze the model empirically through structural equation
modeling The authors find that strategically IT planning abilities leadershiprsquos support
and the skills of IT section business processing abilities learning abilities and change
management abilities has a significant positive impact on successful ERP implementation
[22]
Parijat Upadhyay (2008) in his research studies ldquoAn explorative study to identify the
Critical Success Factors for ERP Implementation in Indian small and medium scale
enterprisesrdquo explores the existing literature on ERP implementation issues in context to
small and medium scale enterprises and attempts a compilation of the factors that assume
great significance while implementing ERP in SMErsquos Given the nature and magnitude of
the problems in encountered in implementing an ERP project this study would attempt to
identify the critical success factors(CSFrsquos) for a successful implementation of an ERP
project since it calls for substantial effort on the part of all the stake holders involved to
make the implementation a success [111]
ldquoThe ERP Implementation of SME in Chinardquo Yuanqiang Xia Peter Lok and Song Yang
(2009) presented the fact that ERP implementing for small and middle size enterprise
(SME) is different from the large one Based on the analysis on the character of ERP
marketing and SMEs of China 6 critical success factors are recommended The research
47
suggests that the top management support is most important to ERP implement in SME
of China in which paternalism prevails Database of management and capital are main
obstacles ERP 1 or ERP 2 fits to demand of SME high power project team has
tremendous significance in the situation of absence of IT engineer for SME education
and training is helpful to successfully ERP implementing The results service as better
understanding the ERP implementation of SME in China and gaining the good
performance of ERP implementation [126]
Yan Xu and Chung-Hsing Yeh (2009) in the article ldquoStrategic Management of
Performance Measures for an ERP Implementation Project Teamrdquo present a new
evaluation model for managing performance measures of an enterprise resource planning
(ERP) implementation project team in an organization With the performance measures
classified into four strategic perspectives of the balanced scorecard the evaluation model
enables the goal alignment between the project team and the organization A new
algorithm using the concept of multi-attribute decision making is developed to obtain the
relative importance value for each performance measure for its contribution to the
strategic goals of the organization The higher the importance values of a performance
measure the more important the role it plays in determining the responsibilities of the
corresponding project team player Understanding the importance of the key performance
measures will help an organization well-prepare to launch a project and have the project
being organized in advance A case of an ERP implementation project in an integrated
manufacturing corporation is presented to demonstrate the applicability of the evaluation
model and its effective management of the performance measures [124]
Zhang Yanhong (2009) in his research paper ldquoERP Implementation Process Analysis
Based on the Key Success Factorsrdquo describes that Enterprise Resource Planning (ERP) is
an amalgamation of a companys information systems designed to bind more closely a
variety of company functions including human resources inventories and financials
while simultaneously linking the company to customers and vendors This thesis is based
on the theory of product life cycle and the process of ERP is divided into four phase
planning implementation stabilization and improvement Critical success factors in each
phase are identified by paper research case study and investigation An ERP
implementation process model based on the critical Success factors (CSFs) is proposed in
48
the paper The thesis analyzes the global planning stages and business process rebuilding
in the process of QIHE pharmaceuticals ERP Improvement on management and
financing before and after ERP implementation are contrasted and we come to the
following conclusions (1) The CSFs in the planning phase is comprehensive
investigation and evaluation (2) The CSFs in the implementation phase is effective
project management team (3) The CSFs in the stabilization phase is appropriate
information management system (4) The CSFs in the improvement phase is change on
demand and continue to innovate (5) The CSFs throughout the product life cycle is
business process rebuilding [131]
Van Stijn E and Wensley A (2001) ldquoOrganizational memory and the completeness of
process modeling in ERP systems some concerns methods and directions for future
researchrdquo mentioned that Enterprise resource planning (ERP) systems not only have a
broad functional scope promising to support many different business processes they also
embed many different aspects of the companyrsquos organizational memory Disparities can
exist between those memory contents in the ERP system and related contents in other
memory media such as individualsrsquo memories and the organizational structure and
culture It is our contention that in general these disparities or memory mismatches as
we will refer to them lead to under-performance of ERP systems In this paper they focus
on potential memory mismatches that may arise with respect to the embedding of process
knowledge within ERP packages Packages such as SAP provide a varied and rich
environment for process modeling However they suspect that there are still many
instances where process knowledge is either lost or represented in different ways in
different parts of the organization The overall thrust of the paper is to identify a variety
of concerns intriguing questions and avenues for future research [112]
Eric Kimberling (2008) in his article ldquo The Role of Lean Six Sigma in ERPrdquo insisted
that there are a number of things to consider when considering a new ERP system like six
sigma lean manufacturing or other business transformation projects that has the capacity
to measure reducing waste managing change well continuous improvement etc [133]
William H Gaw (2010) ldquoEight Basics of Lean Six Sigma for Manufacturing Firmsrdquo In
the efforts to draw closer to customers many manufacturers have lost focus on what
should be a companyrsquos primary success factor ndash profitable growth In todayrsquos competitive
49
manufacturing environment it takes more than quick fixes outsourcing and downsizing
for companies to consistently achieve their growth and profit objectives While these
options may yield temporary financial relief they will not lead the way to long-term
growth and profitability For companies to grow and consistently exceed bottom line
expectations they need to get lean And to get lean they should master eight basics of
Lean Six Sigma in the form of information integrity performance measurement
sequential production point-of-use logistic cycle time management production linearity
and resource planning and customer satisfaction [134]
Brehm L and Markus M L (2000) in The Divided Software Life Cycle of ERP
Packages mentioned that traditional information system life cycle (SLC) focuses on the
activities performed by company developing implementing and maintaining software for
its own internal use Enterprise resource planning (ERP) software packages change the
SLC in several important ways This paper presents an extension of the SLC model for
ERP packages The lsquodivided software life cyclersquo (DSLC) model features an equal
emphasis on the activities performed by the ERP adopting company and the ERP vendor
[15]
Alavi M and Carlson P (1992) A Review of MIS research and disciplinary
development The perceived status of journals in which MIS research is published is an
important issue to academics The number of IS-related journals has increased through
the years yet it is not obvious which are the ldquoleadingrdquo journals or what criteria should be
used to determine this This article addresses these issues by (1) evaluating and
analyzing previous studies in which MIS related journals have been ranked (2)
determining top-ranked journals and placing them into two levels or tiers based on
previous studies and (3) establishing a profile through a systematic analysis of the nine
journals in the first tier This study identified 17 highly ranked journals for publication
Nine were placed in the first tier and eight in the second tier In addition to IS-specific
journals publications included management science computer science and business-
oriented journals The individual strategies for improving software productivity are
identified Issues related to software costs and controlling them are examined and
discussed It is pointed out that a good framework of techniques exists for controlling
software budgets schedules and work completed but that a great deal of further progress
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 2
13
study the current ERP implementation status for all types of organizations and to perform
a comparative study among existing ERP vendors
23 DESIGN METHODOLOGY OF LITERATURE REVIEW
For this a number of international books peer reviewed conference proceedings and
journals from IEEE ACM Springer Inderscience European Journal of Operational
Research Journals Emerald Business Process Management Journal European Journal of
Information System International Journal of Information Technology Management
International Engineering Management Journal International Journal of Production
Research International Journal of Manufacturing Technology and Management
International Journal of Production Economics etc various series of AMR and Gartner
research websites were searched in preliminary and final literature review
In addition to the preceding journals the databases of ABIInform Global CBCA
Business Proquest Computing Proquest European Business Web of Science and J Stor
were searched related to the field of IT amp management Successive rounds of article and
papers resulted in total 129 articles being selected for the compilation In this ongoing
process this review summarizes research on enterprise resource planning systems on the
following topics as mentioned below
1 Work related with ERP Implementation (Current Status amp Future) 9
2 Work related with ERP Implementation Strategies 19
3 Work related with ERP Implementation with Change Management approach 3
4 Work related with Selection of ERP Package for Better ERP Implementation 9
5 Work related with ERP Implementation with Software Engineering approach 16
6 Work related with ERP Implementation with Project Management approach 13
7 Work related with ERP Implementation with Specific Models 25
8 Work related with Tailoring of Parameters in ERP Implementation 2
9 Work related with Critical Success Factors (CSFs) in ERP Implementation 13
10 Work related with ERP Implementation with Lean Six Sigma approach 6
11 Work related with ERP Implementation for Small amp Medium Enterprises (SMEs) 14
14
CSF constructs were then identified using content analysis methodology and an inductive
coding technique A subsequent critical analysis identified gaps in the literature base for
adopting new techniques like lean six sigma re-engineering etc The most important
finding is the lack of research to identify the most CSFs (MCSFs) of key stakeholders
such as small amp medium enterprises after removing their most critical problems (MCPs)
during ERP implementation Additionally there appears to be much variance with
respect to what exactly is encompassed by change management one of the most widely
cited CSFs and little detail of specific implementation tactics
24 COMPREHENSIVE REVIEW ON ERP LITERATURE
Majed Al_Mashari (2002) of King Saud University Saudi Arabia in his paper ldquoERP
Systems A Research Agendardquo considered the continuing development of Enterprise
Resource Planning (ERP) system as one of the major IT innovations in this decade He
observed ERP solutions seek to integrate and streamline business processes and IT and
what makes this technology more appealing to organizations is increasing capability to
integrate with the most advance electronic and mobile commerce technologies
However he realized the fact that as is the case with any new IT field research in the
ERP area still lacking and the gap in the ERP literature is huge Thus he attempted to fill
this gap by proposing a novel taxonomy for ERP Research and discussed its current
status with some major themes of ERP research relating to ERP adoption technical
aspects of ERP and ERP in IS curricula The discussion presented on these issues
provides valuable guidance for researchers and practitioners in ERP [74]
Christopher P Holland amp Ben Light (2001) conducted a research on the topic ldquoA Stage
Maturity Model for Enterprise Resource Planning Systems Userdquo In this paper the
authors present a maturity model for ERP systems that identifies three stages and this is
illustrated using case data selected from the study which is based on 24 organizations in
the US and Europe In Stage 1 organizations are managing legacy systems and starting
the ERP project In Stage 2 implementation is complete and the functionality of the ERP
system is being exploited across the organization In Stage 3 organizations have
normalized the ERP system into the organization and are engaged in the process of
obtaining strategic value from the system by using additional systems such as customer
15
relationship management knowledge management and supply chain planning It has
shown that the organizations follow an S-shaped curve and that most companies are in
the middle stage An analysis of the implications for organizations at each stage of the
maturity model has presented which will be of value to practicing managers The
implications are categorized as impacts on cost entropy complexity flexibility and
strategic competitiveness They made a contribution to the academic literature is to relate
a well established theory to contemporary developments in ERP systems It also
identifies areas for future research notably technical issues associated with connecting
ERP systems with other specialized package software and competitive issues concerned
with gaining competitive advantage from standard systems and speed of implementation
[47]
In ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola Kaisa
Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for smooth
and strategic implementation of ERP They further say ERP systems are commercial-off-
the-shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes It is not always possible
to assign the time of the companyrsquos key personnel to multidisciplinary activities of
Contextual Design In addition conducting Contextual Inquiries (CIs) with long serving
employees can often result in data with a highly personalized perspective Even though
ERP systems as such cannot be designed from scratch the application of CD ensures that
the user tasks UI (User Interface) modifications made by configuring the ERP system as
well as changes in the context can all be designed according to UCD (User Case design)
principles Introducing user-centeredness in ERP implementation improves the
implementation process and leads to the success of the contextual change A companyrsquos
efficiency and productivity depend on how fast and completely the organization adopts
the new ERP system [113]
A N Parr amp Dr G Shanks (2000) in the article ldquoA Taxonomy of ERP Implementation
Approachesrdquo argue that the concept of an ERP implementation is not a generic concept
16
and present taxonomy of ERP implementation in three archetypal categories ie
Comprehensive Middle-Road and Vanilla The rationale for implementation varies
between companies and provides an indicator of the type of implementation envisaged
The characteristics of each category are Physical Scope the BPR Scope Technical
Scope Module Implementation Strategy and Resource Allocation Combinations of these
characteristics serve to place an implementation within one of the categories The CEO
can see straightforwardly some of the consequences of implementation decisions by
understanding the taxonomy and the choices it highlights In this way the taxonomy can
be used to structure discussions about ERP implementation and make the decision
making process more systematic The aim of the taxonomy is to provide non-technical
managers with an effective framework early in the process to comprehend the
dimensions and implications of the enterprise This may then help to reduce the budget
and time blowouts [83]
Wayne Brown (2004) in his research paper ldquoEnterprise Resource Planning (ERP)
Implementation Planning and Structure A Recipe for ERP Successrdquo conducted a brief
review of the literature on attributes and structure that help in making ERP
implementation successful The project management structure and process used at Heald
College was compared to this ERP implementation literature The author discusses this
structure and the processes used to control project costs limit customizations control
scope involve executive management deliver documentation and training communicate
with the institution and manage change The author concludes with a lesson that
communication and change management are very important pieces of the implementation
puzzle [17]
Ali Haj Bakry amp Saad Haj Bakry (2005) through their study on ldquoEnterprise resource
planning a review and a STOPE viewrdquo provides a comprehensive understanding of ERP
systems including illustrating their main components and clarifying their basic and
extended features The ERP review presented here has started with the ERP principles
and moved forward toward the market state selection criteria implementation factors
current and future development and stopped at integrating the various ERP issues into
the STOPE framework (strategy technology organizationndashenterprise people
environment) which illustrates the integration of ERP systems with the overall enterprise
17
network The research illustrated that ERP systems are distinguished for their e-business
support integration approach flexible modular architecture and openness for horizontal
accommodation of wider scope of tasks and for vertical building of sophistication and
intelligence The ERP systems are open for further improvement through research and
development and for more experience through practical implementation and operation
[9]
In the article ldquoEnterprise Resource Planning A Business Approach to System
Developmentrdquo Nicola Gibson Christopher P Holland amp Ben Light (1999) of
Manchester Business School argue that system development is now entering a new phase
of maturity with the advent of Enterprise Resource Planning (ERP) software packages
From case study research it is shown that ERP implementations have different types of
problems compared with traditional software development methods These centre on the
alignment of business processes with the standard software package and the project
management of the implementation process They concluded that ERP is a departure
from traditional approaches to system development It therefore requires a different
approach that places less emphasis on the technical aspects of software development and
instead seeks to balance the business process design software configuration and project
management aspects of IT implementation with the overall strategy and structure of the
firm [41]
In Proceedings of the 36th Hawaii International Conference on System Sciences Celeste
See Pui Ng Guy Gable amp Taizan Chan (2003) of Queensland University of Technology
Australia presented their research paper ldquoAn ERP Maintenance Modelrdquo In order to
bridge this gap in literature and practice they propose a preliminary ERP maintenance
model reflecting fundamental ERP maintenance and upgrade activities A detailed case
study was conducted to gather empirical data for developing such an ERP maintenance
model Data gathered from the interviews relating to (i) maintenance preparation and
initial planning (ii) maintenance procedures and (iii) upgrade process are used to map
out Government Agencyrsquos (GA in the Australian state of Queensland) implicit
maintenance model ndash maintenance preparation maintenance procedure and software
upgrade stages respectively Data collected from the databases associated with request
type staff involved and maintenance activities are used to map out the maintenance
18
procedure stage whereas information from the upgrade business case and upgrade
planning resources documentation are used for mapping out the software replacement
stage of GArsquos maintenance model Data analysis identified potential benefits of the
maintenance model to ERP-using organizations generally and to the case firm in
particular with the primary business objectives This study provides practitioners with
guidelines on planning implementing and upgrading an ERP [86]
Yao Yurong amp He Houcun (2000) in the article ldquoData Warehousing and the Internetrsquos
impact on ERPrdquo examines the advances in data warehousing and internet technology
spurring ERP development As per their findings these systems still needed some
improvements To keep pace ERP systems themselves have undergone considerable
change in the past 10 years Thus in making the right ERP choices itrsquos helpful to know
how two key technologiesmdashdata warehousing and the Inter-netmdashare transforming these
complex systems SAP a leading ERP company introduced the business warehouse as a
complement to its R3 application suite Oracle a SAP competitor also sells its own
solutions Action (an activity-based management system) Balanced Scorecard (a
business performance management package acquired from Graphical Information Inc)
sales analyzer and warehouse analyzer So Oracle has also concluded that the
combination of data warehousing and ERP is an effective solution for counteracting the
drawbacks of the two systems [127]
In the research publication ldquoMatching ERP System Functionality to Customer
Requirementsrdquo Colette Rolland amp Naveen Prakash (2001) propose an approach for
matching ERP system functionality to customer requirements The assumption made was
that the ERP system postulates a set of requirements that are worth eliciting from the
ERP documentation as abstractions of the ERP system functionality Then the
requirements engineering process is a process that matches the ERP set of requirements
against organizational ones The paper presents the Map representation system and the
matching process The process is illustrated by considering the Treasury module of SAP
and its installation in the financial management of a cultural exchanges unit
Conclusively one can successfully expect to lay down such generic maps for capturing
change strategies for companies moving from single to multi customer oriented services
[91]
19
In ldquoEnterprise Resource Planning (ERP) ndash Breakthrough or Buzzwordrdquo A Fitzgerald
(1992) suggests that to understand the structure of the ERP manufacturing solutions one
must examine both the technology underlying these systems together with the
environments and functionality required Finally to make the lsquobusiness casersquo for such
systems we must focus on the benefits that can be achieved by using ERP systems [33]
In the proceeding of 34th
Hawaii International conference on System sciences an
important article on CSFs in ERP ldquoThe Impact of Critical Success Factors across the
Stages of Enterprise Resource Planning Implementationsrdquo by Toni M Somers amp Klara
Nelson (2001) was published This paper describes the impact of Critical Success Factors
(CSFs) across the stages of Enterprise Resource Planning (ERP) implementations using
the responses from 86 organizations that completed or are in the process of completing an
ERP implementation This research not only identified which CSFs are most critical in
ERP implementations but also determined which factors are temporal ie significant in
the implementation process for a particular period in time That information can now be
used to identify anticipate and allocate time and resources across those factors that need
attending to for effective project monitoring It also provides an understanding of the
factors and their importance throughout the various phases of implementation which in
turn can serve as a useful guide for firms in the process of implementing an ERP system
[103]
In the proceeding of 34th
Hawaii International conference on System sciences IEEE 2001
ldquoTailoring ERP systems A spectrum of choices and their implicationsrdquo Lars Brehm amp
Armin Heinzl M Lynne Markus (2001) depict that the IS literature distinguishes between
custom-built and off-the-shelf software Enterprise resource planning (ERP) packages are
often viewed as off-the-shelf software because adopters implement them by setting
parameters (called configuration) rather than by traditional programming Making
changes to ERP software code (called modification) is usually strongly discouraged by
vendors and implementation consultants Nevertheless field research has shown that
many companies have had to modify ERP software in various ways to meet essential
business needs In this paper they describe a portfolio of tailoring options between
configuration and modification with important implications for implementation risk and
the difficulty of ERP system upgrades but with companyrsquos advantages [16]
20
Babak Akhgar Jawed Siddiqi and Samir Al-Khayatt (2002) summarized their findings in
the article ldquoStrategic exploitation of ERP for e-businessrdquo for the Proceedings of the
International Conference on Information technology Coding and Computing (ITCCrsquo02)
This paper based on research from an ongoing IS investigation project at a large
multinational company examines the relationship between ERP amp E-business The paper
discusses different scenarios of ERP implementation status that organizations may find
themselves It examines the components of e-business success namely visibility of
information processes and technology that will be either enabled or restricted by ERP
What transpires from this research is that for many start-ups e-business becomes
synonymous with business in general Ultimately they conclude that e-business should
form part of the corporate strategy and that IS or IT strategy should form the basis for
determining ERP implementation structures thereby ensuring e-business requirements
become the platform for ERP [2]
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther G Chattopadhyay (2004) The paper
presents research on ERP system characteristics particularly relevant for Small to
Medium Enterprises (SME) Authors investigated the duration of the project phases to
establish the human resource requirements through the selection implementation and
support of the ERP project Common factors that are crucial for an SME in the
manufacturing sector embarking on an ERP system are identified in this paper for system
selection and implementation User survey was carried out for a target group of SME
companies around Brisbane Australia The survey captured both qualitative and
quantitative data relating to the ERP system in place at a target group of electrical and
electronic equipment manufacturing companies located in South East Queensland
Australia Quantitative analysis was carried out on the cost of the ERP selection and
implementation project both in terms of capital outlay and human resources [87]
Reported implementations recognized the benefits of aligning business processes with a
target ERP system in the period prior to the go-live and authors summarize following
points
ERP system as a business tool for growth of SME
21
Critical selection factors unique and realized benefits different for each business
SME having limited resources (money people time) with which to evaluate and
implement ERP
Ongoing costs
Overall success
In the paper study ldquoERP Training Strategies Conceptual Training and the Formation of
Accurate Mental Modelsrdquo Tony Coulson Conrad Shayo CE Tapie Rohm Lorne
Olfman (2003) examined a major determinant of successful ERP implementation end-
user training The study finds that a workflow conceptual advanced organizer strategy
(TCT group) improves end-userrsquos mental model accuracy over time as demonstrated by
the subjectslsquoability to recall ERP specific concepts Results indicate that a conceptual
advance organizer is an important component of ERP training and should be incorporated
into an organizationlsquos training strategy In general the study supported the framework
and found that by adding a tool conceptual knowledge-level to the training the end-users
developed more accurate mental models By using the knowledge-level framework and
incorporating tool conceptual knowledge into an organizationlsquos training design
organizations may see an improvement in overall ERP implementation results For
example because ERP training is very expensive those within an organization that attend
ERP training are often asked to train others in the organization when they return This
study shows that adding a tool conceptual knowledge-level to their training improves
their ability to recall and re-articulate their understanding of the system By building the
knowledge-levels that enable more effective understanding and communication of
concepts learned could be an invaluable asset to any companylsquos training and
implementation strategy [24]
ldquoEnterprise Resource Planning Challenges for Small and midsize Business (SMBs)rdquo
Analyst Katherine Jones (2004) of Aberdeen suggests that small and midsize businesses
are primarily driven by operating cost pressures perceived as the biggest challenge and
their key challenges are
1 Insufficient funding for corporate strategies and initiatives
2 Lack of clearly defined corporate vision and goals
3 Ineffective communication of corporate strategies and initiatives
22
4 Metrics that do not sufficiently provide incentives employees to supportachieve
corporate goals
5 Inability to accurately determine and plan for customer demand
As the immense variability in how SMB companies conduct business still predominates
the SMBs see technology as the enablers of their strategies Specifically cited are the
increased availability of advanced analytics decision support and reporting tools as well
as the availability of process-specific business applications [55]
Christina Soh Sia Siew Kien and Joanne Tay-Yap (2004) through their study on the
subject ldquoCultural Fits amp Misfits Is ERP a universal Solutionrdquo Present early findings
from a larger ongoing study The typology of misfits and examples are drawn from the
review of implementation documents and supplemented by interviews with key project
team members from one hospital [102]
In their White Paper ldquoERP Selection ndash Right Tracking Enterprise Change ITSg-GCPrdquo at
TCS Dr Joginder Singh Lamba amp Swapnil Kitcha (2007) analyzed the fact that
business changes in the form of portfolio expansion structure decentralization and supply
chain integration drive new investments in ERP Besides the need for more functional
areas within the IT landscape (BI CRM PLM and Product Information Management)
demands new interfaces with ERP backbone Heterogeneous compatibility and varied
maturity across modules elicit interest in best of breed solutions in ERP [64]
In ldquoFuture of ERP systems and Microsoft Dynamics Learn about XML and Web
servicesrdquo McKie (2008) discusses what sort of requirements XML and web services put
on business applications He further explains ERP systems need to be able to create
XML schemas (data specifications) and they need to be able to import and export data in
XML documents The more data an ERP user needs to share with business partners the
more important is to have these capabilities In addition to XML McKie identifies a
second type of Web service that offers functionality rather than data is expected to
emerge in the form of business partner integration analytics and alerts [79]
David Caruso (2005) Senior Vice President Industry Research AMR in his article
ldquoProcess Productivity and Profit The SMB Executiversquos Framework for ERP
Investmentrdquo narrated that SMBs which are not aggressively developing an effective ERP
strategy will be at some disadvantage to their peers by 2006 Forward-thinking executives
23
will consider strategic business capabilities as the drivers for enterprise resource planning
(ERP) investment justification In a 2005 study that AMR Research conducted with over
550 companies regarding their ERP investment plans and found that only 27 of small
companies (fewer than 500 employees) are currently using ERP This is in sharp contrast
to the 57 of large companies (500 to 2499 employees) and 70 of enterprise-sized
companies (2500-plus employees) that have operational ERP systems Given this data it
is not surprising that almost 50 of the respondents interviewed will be making
substantial changes to their existing ERP systems over the next 12 to 18 months The
challenge for executives charged with the decision is establishing a powerful context for
making the ERP investment [20] When considering the ERP investment decision from
the perspective of the executive suite there are four overarching drivers that frame what
executives need to consider
1 Productivitymdashgetting the most from your valuable employee assets
2 Connectivitymdashworking collaboratively with your key customers and suppliers
3 Business insightmdashImproving the speed and quality of decision making
4 Total cost of ownershipmdashreducing the cost of owning and operating IT systems
Yong Jean John amp Ki-Henry Yim (2001) in an article ldquoA study on an Environment of
ERP Introductionrdquo includes the role of ERP perception of ERP value ERP plan
direction and also argues various checkpoints as a preview of ERP introduction In
conclusion they list checkpoints in sequence based on the mean values that provides
indications of the relative importance As a result the most important checkpoints were
Performance of Introduction Main Reference Sites Availability of Current Resources
Easiness of Introduction Operation System Past Records of Supply Market Share and
Vendor Size The results shown in this paper has shown strong implications for ERP
vendors Vendor size and market share received the least attention amongs all the
checkpoints described in the study [125]
One step forward IQMS Executive White Paper (2007) ldquoHow Successful ERP Selections
are Made ldquo this paper is not just about want and donrsquot want from the various people in
the organization It suggests that it should be a long lasting purchase that provides the
users the feeling of a partnership As the user is not just buying software they are also
buying into a vendor and their company culture The combination of software capability
24
and vendor credibility should be a major purchasing factor There is more to a lasting
ERP purchase than that There are several platform thoughts on technology how many
vendors are included the demonstration the always useful buzz words with all the hype
on service oriented architecture (SOA) best of breed lean manufacturing and all the
other phrases floating in the industry today implementation time customer referrals
customer retention look at your company objectively etc [49]
Robert C Beatty amp Craig D Williams (2006) in ldquoBest Practices for Successfully
Implementing an ERP Upgraderdquo maintain that an ERP upgrade is deceptively complex
and can be daunting especially for organizations ignorant of the massive effort required
to do it correctly One study of mid-size to large companies conducted by AMR Research
found that 67 of these companies are implementing some form of ERP while another
21 are evaluating potential ERP systems solutions As a growing number of companies
adopt ERP systems ERP systems implementation and upgrades are identified as one of
the top five IT priorities among global CIOs according to independent surveys conducted
by Morgan Stanley and Deloitte amp Touche IDG Research Services Group In
conclusion this article provides organizations with a list of the eight most common
recommendations suggested by organizations that have already completed at least one
upgrade to their initial ERP implementation [11] These are
Finding 1 Build your business case on new functionality
Finding 2 Treat the upgrade like a new project
Finding 3 Keep the team together
Finding 4 This is a business project not an IT project
Finding 5 Watch for hidden infrastructure costs
Finding 6 Un-customize customizations
Finding 7 Test like your organizationrsquos future success depends on it
Robert Davison (2002) raises a valid point through his article ldquoCultural Complications of
ERPrdquo discussed cultural misfits from a Singaporean perspective This implies that a one-
size-fits all or one-business-model- fits-all approach is unlikely to be successful As much
of ERP literature originates from and describes application contexts in North America
and to a lesser extent Western Europe where most ERP developers are located and
implementations have occurred Developers and consultants need to adapt their products
25
and services for different cultural markets Awareness of cultural differences and prefer-
ences will certainly improve the assessment of ERP suitability and any subsequent
implementation [27]
A group of researchers Siew Kien Sia May Tang Christina Soh Wai Fong Boh (2002)
from Information Management Research Center Nanyang Business School in their
research paper ldquoEnterprise Resource Planning (ERP) Systems as a Technology of Power
Empowerment or Panoptic Controlrdquo explores ERP as an ambivalent technology of
power According to them on the one hand it may tighten management control by
bringing a new level of panoptic visibility to organizational activities on the other hand
the embedded business model within the ERP may drive empowerment of employees and
greater control relaxation through the configuration of new process design This research
seeks to understand how the different forces play out in the context of ERP
implementation and to explore the implications for traditional power distribution in
organizations It adopted a mixed qualitative-quantitative methodology in an intensive
case study of a restructured hospital in Singapore A survey of 260 users was
administered supplemented by approximately 27 hours of individual interviews with 23
people Results reveal that although ERP can facilitate both empowerment and panoptic
control management has consciously resisted empowerment by working to reinstitute the
power lost through the ERP implementation On the other hand the new panoptic
visibility though partially unintended appears to have evolved naturally and was readily
learned and applied in the organization This study is significant in exposing the
likelihood of ERP implementation as a technology that perpetuates management power
At least in the context of the hospital studied it is yet another means of enlarging the
management authority for ldquototal controlrdquo Current articulations of ERP by practitio-
nersmanagement as empowering thus appear to be more theoretical than real This is
consistent with the perspective of critical theorists (eg Sewell amp Wilkinson 1992
Weber 1947 Tannenbaum 1968) that organizational life will become increasingly
rationalized and more controlled Thus the findings support the critical perspective in
exposing the likelihood of ERP implementation to perpetuate management power Being
a single case study the external generalization of the above analysis is limited Future
research should be sensitive to the formative context (eg the nature of the pre-existing
26
structure the Asian cultural context) and the distribution of authority among
organizational actors (eg presence of management intention) in an organization The
dynamics of panoptic control and empowerment during ERP implementation may be
different in organizational transformation contexts or in organizations with more fluid or
organic pre-existing structures It may also be interesting to follow the analysis of
panoptical and empowerment over an extended period to get a better understanding of
their continuously evolving dynamics [98]
Suprateek Sarker and Allen S Lee (2003) in the paper ldquoUsing a Case study to test the
role of three key social enablers in ERP implementationrdquo indicate that three key social
enablersmdashstrong and committed leadership open and honest communication and a
balanced and empowered implementation teammdashare necessary conditionsprecursors for
successful ERP implementation In a longitudinal positivist case study we find that
while all three enablers may contribute to ERP implementation success only strong and
committed leadership can be empirically established as a necessary condition This
presents a challenge to future ERP researchers for resolving apparent contradictions
between the existing literature and the results of our analysis and for investigating the
nature of interactions among the leadership communication and team characteristics
[93]
Srinivas Mantha (2007) in the article ldquoERPndashBusiness Processes with IP
Communicationsrdquo explained the fact that the key to new competitive capability is
envisioning the enterprise in terms of business wide relationships to improve user
experience across the network exploit knowledge and enhance and accelerate core
processes IP Communications is the catalyst for this capability It enhances the value of
the user experience exploits knowledge value and increases the value of business
processes [76]
Linda Askenaumls amp Alf Westelius (2000) from Linkoumlping University Sweden explore
a new vista of ERP through their literature ldquoFive Roles of an Information System A
Social Constructionist Approach to Analyzing the use of ERP Systemsrdquo This paper
presents a novel way of thinking about how information systems are used in
organizations Traditionally computerized information systems are viewed as objects In
contrast by viewing the information system as an actor our understanding of the
27
structure process increases The user being influenced by the ERP (Enterprise Resource
Planning) system and giving it an actor role thereby also confers agency on the ERP
system Through its very use it influences actions and thus the structure as well Based
on a case study of ERP use in an ABB company for over a decade five different roles
played by the ERP system were identified The ERP system acted as Bureaucrat
Manipulator Administrator and Consultant or was dismissed (Dismissed) in the sense
that intended users chose to avoid using them In conclusion the purpose of this approach
is not to ldquoanimaterdquo the information system to give it life or a mind of its own but rather
to make explicit the socially constructed roles conferred on the information system by
users and others who are affected by it On this basis it is possible to suggest how the
roles can help us opening up the new areas of exploration concerning the fruitful use of
information technology [70]
Jinyoul Lee Keng Siau and Soongoo (2003) conducted a study on the topic ldquoEnterprise
Integration with ERP and EAIrdquo They state that to survive and thrive in these hypercom-
petitive markets it is essential for a company to understand rapidly changing business
circumstances To rapidly respond to a changing environment an enterprise must
integrate business functions into a single system efficiently utilizing information
technology and share data with third-party vendors and customers While ERP forces the
adoption of standard business processes EAI enables enterprise integration over business
object levels ERP thereby supports a centralized business strategy while EAI naturally
accommodates decentralized business processes Lastly they observe the fact True
enterprise integration means both technical and behavioral integration It is not simply
integrating different systems applications or business processes dispersed across an
enterprise It is integrating structural changes different behaviors and various
information systems in an enterprise Enterprise integration is costly and time-
consuming thus management should be cautious in the design of the project
Organizations should not blindly rush into new technologies Top management should
first strive to understand their business and needs for enterprise integration and then
select a methodology of enterprise integration [68]
Wilhelm Scheer and Frank Habermann (2000) in ldquoMaking ERP a Successrdquo have used
business process models at an operational level of e-business to achieve positive results
28
They have talked of different scenarios in e-business As in Business-to-Business
applications such as Supply Chain Management the user has to connect the ERP systems
of all business partners This means he has to fight not only with the thousands of
parameters of a single ERP system but with twice as much (or even more) Another likely
scenario is that the business partners involved in an inter-organizational supply chain are
using ERP systems of different vendors In this case a business process model can be
firstly used to define the conceptual value chain Secondly the conceptual model that is
independent from a certain software vendor can be linked to the repositories of the
different ERP systems in order to customize an integrated software solution These
examples demonstrate that business process models play a major role for the success of e-
business Some ERP vendors like SAP have understood this development and are already
implementing their first model-based e-business applications [94]
Ash CG (2001) in An e-Commerce Model for Extending ERP Systems onto the
Internet An Australian Perspective stated that an established research framework of e-
Business change is used to identify the factors for success of this e-business project
within an ERP environment The results confirm that a successful project was found to
have facilitators in all components of the business framework including the change
environment and project management Further there is the implication that the least
successful e-business projects will have inhibitors in both dimensions especially in the
area of cultural readiness and change management In this case study conflict arose
between local project management initiatives versus a centralized autocratic global ERP
deployment This highlights the need to encourage the balancing of conflicting
organizational knowledge when contemplating the adoption of e-business solutions [7]
Huigang Liang Yajiong Xue William R Boulton Terry Anthony Byrd (2004) ldquoWhy
Western Vendors donrsquot dominate Chinarsquos ERP Marketrdquo Examined cases of failed ERP
system implementation in China and explaining the unique circumstances These foreign
ERP implementation failures emphasize the need to localize strategies even for the
global ERP leaders The general manager of a foreign ERP vendor explained ldquoOne
should understand nationrsquos history and its culture before one starts doing business with
foreign companiesrdquo The cases of failed implementation suggest global ERP vendors
require more than superior technology and experience Their ERP strategies must also
29
address the cultural differences affecting ERP implementations Strategies need to
overcome problems relating to language reporting formats and content cost control
capabilities frequent business process redesigns effective customer support and capable
consulting partners [69]
In the research findings ldquoAn Agency Theory Model of ERP Implementationrdquo Vedabrata
Basu Albert L Lederer (2004) develop a model of testable propositions for applying
agency theory to study the relationship between implementation consultants and client
organizations deploying the ERP systems and to consequently evaluate how the
relationship affects the implementation success Therefore management needs to know
the factors that drive successful ERP implementation a product of the continuous
interaction between the implementation consultants and client firms Agency theory has
been successfully used by different researchers to explain relationships between two
parties seeking a common outcome This paper develops a conceptual model with the
variables and relationships that may play a critical role in explaining the sources of that
frustration It offers a foundation for research that can extend the applicability of agency
theory can help clients and consultants manage their relationships during the
implementation process and thus help them enhance the probability of ERP systems
implementation success It may also be useful for managing other outsourced IS projects
that have implementation settings similar to ERP [10]
Christian Vogt (2002) ldquoIntractable ERP A Comprehensive Analysis of Failed Enterprise-
Resource ndash Planning Projectsrdquo makes an analysis of possible causes that led to the
disasters for ERP implementation failures and suggests software engineering processes
that help avoiding such outcomes The Model Based Architecting and Software
Engineering (MBASE) guidelines developed by Prof Barry Boehm and Daniel Port at
the Center for Software Engineering (CSE) at USC provide a base for these elaborations
for a long time SW Engineering experts have praised commercial-off-the-shelf (COTS)
packages as the panacea to complex software development Far from it the elaboration
in this survey shows that the deployment of COTS packages may be extremely intrinsic
one does not know whether some COTS software adheres to its interface specifications or
how deficient it is or how well its performance scales up as workload demand grows
The upshot is that COTS software will always be an alien element in the software to be
30
developed and it should be considered that way Dye-in-thendashwool COTS package ERP
systems exhibit plenty of dangers Only if appropriate risk management and enough time
for stepwise employment is provided for ERP system can be tamed [115]
In the research findings ldquoImplementing Best Practices in ERP for Small amp Medium
Enterprisesrdquo Rashmi Jha A K Saini and M N Hoda (2008) provides an interesting
insight into taking ERP implementation as a project and develops problem driven
approach to examine its complex phenomena The implementation process will be
divided into several components which will reflect the nature of ERP projects and makes
them distinctive from other systems design methods This paper also addresses critical
issues relating to developing entrepreneurship for sustainable development of small and
medium size enterprises(SMEs) for its future extensions and added benefits It may also
be useful for managing other outsourced Information System (IS) projects that have
implementation settings similar to ERP [53]
Saumyendu and Maya Daneva (2003) in ldquoLessons Learnt from Five Years of Experience
in ERP Requirements Engineeringrdquo summarizes one companyrsquos five years of experience
in making a generic ERP RE model a live process It rests on previously published ERP
RE process assessment results and reports on what we learnt with particular focus on
typical issues organizations face when adopting a standard model and solutions that can
be used to avoid those issues in the future Each of our lessons is described together with
a RE practice technical foundation for the practice and engineering techniques for the RE
practitioner The lessons were used to refine our Corporate Documentation Model a
process-focused and template-based ERP-architecture framework [40]
In ldquoResearch on Agent-Based Architecture of ERP For Small amp Medium-Size
Enterpriserdquo Rui-Xue Fu Zhan-Hong Xin and Can Chen (2007) suggests that with the
rapid development of information technology and the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward To address these problems a MAERP system architecture has been developed
in which the agents are classified into four types F-Agent for realizing an operation
application C-Agent for coordinating with other agents I-Agent for a communication
31
tool between the user and the MAERP system and T-Agent for performing specific tasks
and data collecting [35]
Xavier Franch and Juan Pablo Carvallo (2003) in the research paper Using Quality
Models in Software Package Selection found that the absence of structured descriptions
of quality features and user quality requirements makes selecting the right software
package difficult The authors propose a methodology for describing the quality features
of domain-specific software packages uniformly and comprehensively using ISOIEC
9126-1 quality standards as a framework [34]
In the paper study ldquoRevisiting ERP Systems Benefit Realizationrdquo Paul Hawking and
Andrew Stein (2004) maintains that many companies initially implemented their ERP
systems to solve Y2K and disparate systems issues These same companies are now
looking at a how to strategically leverages their investment in these systems through the
implementation ldquosecond waverdquo functionality This paper identifies the expected and
actual benefits of ldquosecond waverdquo implementations In addition it identifies barriers which
limit the benefit realization The findings reinforce that ERP implementations are people
focused projects which rely heavily on change management for success [45]
Hamid Nach and Albert Lejeune (2008) ldquoImplementing ERP in SMEs Towards an
Ontology Supporting Managerial Decisionsrdquo state that the purpose of this research
project is to consolidate and formalize as ontology on the basis of an extensive literature
review the key processes and skills required for successful implementation of ERP in an
SME Using the Proteacutegeacute software program the research identified and formalized 395
terms each of which has its own definition Exploitation of this ontology could take
multiple and varied forms including creation of a learning system an on-line cooperation
platform or a project management process mapping tool contributing to successful use of
ERP in SMEs [81]
While Gul Tekin Temur and Sitki Gozlu (2008) ldquoDetermination of Performance Criteria
for ERP Software Technologyrdquo mention that the main goal is to determine the
performance criteria for ERP software technology with respect to their sources Today
the companies are in interaction with many internal and external partners and have to face
many situations in various environments Especially many small and medium sized firms
utilize ERP software technology to plan their business interactions in the chain In this
32
study firstly a literature search is accomplished Then in order to reveal the performance
criteria a large-scale automotive company has been selected to conduct interviews with
managers Also the meeting reports of a few small and medium-sized companies have
been analyzed As a result of the analysis on findings the common views of the firms
about performance criteria are classified into four groups according to their sources such
as people technical managerial and economical The sub factors of these main criteria
are also taken into account in order to point out the origins of the criteria The results of
the study will provide insight to researchers and as well as to professionals in the practice
[108]
Maya Daneva (2004) in ERP Requirements Engineering Practice Lessons Learned
mentioned the fact that organizations implementing Enterprise Resource Planning (ERP)
systems have been increasingly adopting generic off-the-shelf requirements engineering
(RE) process models Yet little information exists about the challenges of making a
generic RE model a life process This article discusses why bringing an off-the-shelf
process in is not a sufficient foundation The author shares experiences acquired over the
past five years of eliciting modeling and validating requirements in ERP projects and
highlights typical issues and their solutions Among the keys to success are planning RE
model use in the clients context and installing processes to support key RE activities [25]
While the article ldquoRescuing Troubled Software Projects by Team Transformation A
Case Study with an ERP Projectrdquo by Kim Man Lui and Keith C C Chan (2008)
differentiates various reasons of ERP project failures It further states that many software
projects fail whether failure is measured in terms of budget schedule or some other
requirement The causes of such failures are many but are not always easily recognized
This is not the least due to the human dimension of corporate activities as spurious or
misdiagnosed issues in Enterprise Resource Planning (ERP) projects can take on a life of
their own and become a magnet for company politics This paper reports an industrial
case in which the senior management attempted to deal with a troubled ERP
implementation (SAP R3) in an international fast moving consumer goods (FMCG)
company during 2001 and 2002 This paper reflects this dimension as it uses original
emails and PowerPoint slides to recount a number of representative episodes in a troubled
but ultimately successful project At the heart of this success is the realization that
33
whereas it can be difficult and time-consuming to do root-cause analyses it is relatively
simple to identify problem owners In this case the senior management without IT
backgrounds turned around a failing project by reorganizing the team structure according
to process areas so that issues in each process area had one problem owner We
summarize the managementrsquos actions into a troubleshooting framework and in addition
suggest three actions for rescuing troubled projects keep the project manager but narrow
down the managerrsquos scope of responsibility to one or two process areas assign the right
people to be responsible for other process areas and have the General Manager chair the
ERP meetings [60]
In the PICMET 2006 Proceedings on ldquoOptimizing the Change Management of Enterprise
Resource Planning Systems Implementationsrdquo Onur Kerimoglu and Nuri BaUogluI
(2006) maintain that although Enterprise Resource Planning (ERP) systems are being
used widely all around the world they also carry out many problems as well as their
benefits These systems are well known for enhancing cross functional efficiency and
effectiveness through the integration of all information flowing throughout an
organization However during different project life cycle stages of ERP systems this
integration may not be provided because of the formulation of incompatibilities which
are greater than the optimum level among different parties like ERP system processes of
the organization and system users Within this study existing incompatibilities between
these parties are modeled respectively In common the model propose that the ERP
product mostly matching with the processes of the organization should be selected
processes of the organization should be changed for being compatible with the ERP
system and system users should be educated new qualified people should be hired etc
for making the system and processes more familiar to people Here the point is that all of
these are done for keeping incompatibilities between the ERP system processes and
people at minimum level because this minimalism will avoid optimization and utilization
problems This study not only handles problems of ERP from a newer perspective but
also provides insight to managers about managing the change and utilizing their resources
efficiently for adopting the ERP software across the organization [59]
Capaldo Guido and Rippa Pierluigi (2008) in ldquoA methodological proposal to assess the
feasibility of ERP Systems Implementation Strategiesrdquo stated that Continuous failures in
34
ERP systems implementation project are today the main challenge in the feasibility of
integrated information systems Failure can be determined by different factors both from
technological side and organizational side if not well managed In this paper we propose
a methodological approach based on technochange management in order to assess the
feasibility of ERP implementation strategy and reduce the risk of failure in terms of
project metrics and early operational metrics A case study in a big Italian
Telecommunication Firm will be presented [19]
ldquoCase Study of PLIVA Pharmaceuticals Inc - Aligning ERP System Implementation
with Business Process Changerdquo is very relevant and contemporary paper presented by
Vesna Bosilj Vuksic and Mario Spremic (2004) The main objective of this paper is to
present the impacts of information technology (IT) and enterprise resource planning
(ERP) systems in business process renovation projects A case study of business process
reengineering project and the implementation of the SAP software solution in PLIVA
(PLIVA pharmaceuticals Inc) are presented [116]
In ldquoKey Factors Driving the Success of Technology Adoption Case Examples of ERP
Adoptionrdquo Chonyacha Suebsin and Nathasit Gerdsri (2009) address the issues that
impact technology adoption within an organization Several factors influencing
technology adoption process are identified from the literature review Case examples of
the adoption of a new management technology Enterprise Resource Planning (ERP) are
presented to illustrate the situations of technology adoption in organizations From the
case examples the factors influencing technology adoption in organizations are
consistent with the factors identified from the literatures The further discussion also
reveals the additional determinants including the clarification of project scope individual
commitment and communication which should be taken into consideration when an
organization adopts a new technology [105]
Maya Daneva (2002) in her paper ldquoUsing Maturity Assessments to Understand the ERP
Requirements Engineering Processrdquo mentions that applying standard requirements
engineering (RE) processes is a major trend in todayrsquos Enterprise Resource Planning
(ERP) software engineering It emerged five years ago with the promise to provide a
mechanism helping ERP project organizations deliver their business requirements timely
and within budget This paper looks in depth at a standard ERP RE process and seeks
35
answers to four questions how well it is defined what are the risks associated with its
application in matureimmature organizations what are the essential practices that
contribute to its success and what are the costs of the process and the quality of the
delivered results The main motivation of this paper is to provide some practical advice
for using assessments to increase project teamsrsquo understanding of the ERP RE process
[26]
Fan JC and Kwoting Fang (2006) ldquoERP Implementation and Information Systems
Success A Test of DeLone and McLeans Modelrdquo present their research that develops
and tests a theoretical extension of DeLone and McLeans model of information system
(IS) success which explains personnel belief that contributes to users utilization of ERP
(enterprise resource planning) systems The extended model is tested using the structural
equation model (SEM) a survey of 202 end-users from ten Taiwanese enterprises that
has implemented Data Systems workflow ERP systems is conducted The theoretical
model proposed in this study provides insight into how the concept of useful perception is
incorporated into DeLone and McLean model and plays a critical mediated role to
influence system usage and its associated satisfaction The implications of these findings
for researchers and practitioners are discussed [32]
In the research findings ldquoManaging ERP Implementation Failure A Project Management
Perspectiverdquo Charlie C Chen Chuck C H Law and Samuel C Yang (2008) stated that
Information Technology (IT) projects are susceptible to changes in the business
environment and the increasing velocity of change in global business is challenging the
management of enterprise systems such as enterprise resource planning (ERP) At the
same time system success depends on the rigor of the project management processes
Scope creep poor risk management inadequate allocation of human resources over time
and vendor management are some common problems associated with the implementation
of an enterprise system These issues pose threats to the success of a large-scale software
project such as ERP This research adopts a case study approach to examine how poor
project management can imperil the implementation of an ERP system Having learned
the lessons from the failure of its first ERP implementation the company in this case
reengineered its project management practices to successfully carry out its second ERP
implementation Many critical project management factors contributed to the failure and
36
success of this companyrsquos ERP system This study explores and identifies critical
elements of project management that contributed to the success of the second ERP
implementation For those organizations adopting ERP the findings provide a roadmap
to follow in order to avoid making critical but often underestimated project management
mistakes [21]
Rafa Kouki Robert Pellerin and Diane Poulin (2008) in An Exploratory Study of ERP
Assimilation in Developing Countries The Case of Three Tunisian Companies assessed
that ERP systems could be considered as the most difficult systems to be assimilated
Very little research however has been realised to investigate the determinants of success
of the ERP assimilation process There has been also a dearth in research about ERP
projects in general and ERP post-implementation and assimilation in particular in
developing countries Using a case study methodology grounded in the diffusion of
innovation theory this study tries to understand the factors that could improve or
challenge the ERP systems assimilation process in three Tunisian companies Our
findings highlighted the importance of several factors such as top management support
strategic alignment IT expertise training communication organizational culture and
coercive pressures [62]
Ian Sommerville (2008) Construction by Configuration Challenges for Software
Engineering Research and Practice observed that past ten years have seen a radical shift
in business application software development Rather than developing software from
scratch using a conventional programming language the majority of commercial
software is now developed through reuse ndash the adaptation and configuration of existing
software systems to meet specific organizational requirements The most widespread
form of reuse is through the use of generic systems such as ERP and COTS systems that
are configured to meet specific organizational requirements In this paper he discussed
the implications of software construction by configuration (CbC) for software
engineering Based on his experience with systems for medical records and university
administration he highlighted some of the issues and problems that can arise in
construction by configuration he discussed problems that arise in CbC projects and
identify a number of challenges for research and practice to improve this approach to
software engineering [104]
37
SV Deshmukh and RR Lakhe (2008) in the research paper ldquoSix Sigma ndash An Innovative
Approach for Waste Reduction A Case Study of an Indian SMErdquo present a case study
aimed at reducing waste at an SME engaged in manufacturing of corrugated boxes The
Define Measure Analyze Improve Control strategy of Six Sigma methodology was
followed to identify probable causes for wastages After studying the system and
implementation of six sigma tools an overall 227 waste reduction was achieved
Individually out of a total seven processes 5 showed waste reduction in excess of 40
This reduction was statistically significant at Plt005 The study confirmed successful
implementation of six sigma to minimize waste generation and in terms saving in
manufacturing costs or increasing the bottom line [29]
While in ldquoERP Implementation Critical Success Factors - The Role and Impact of
Business Process Managementrdquo Yasar F Jarrar Abdullah Al-Mudimigh and Mohamed
Zairi (2000) investigate the role and impact of business process management in
successful ERP implementation The paper starts by defining business process
management ERP and the ERP critical success factors The impact of business process
management on successful ERP implementation is then assessed through looking at the
experiences of several organizations The paper concludes by highlighting best practices
for capitalizing on business process management for successful ERP implementation
[52]
M S Camara L Kermad and A El Mhamedi (2006) in the paper ldquoRisk Prediction in
ERP Projects Classification of Reengineered Business Processesrdquo maintain that
Companies have been implementing ERPs for almost ten years now and more the same
implementation problems continue to occur More and more ERP projectrsquos technological
challenges are accompanied by critical dimensions related to the management of the
transformational effects of these projects on the organization Indeed risk management in
this kind of project is not very structured and misses specific methods In this article they
propose a structured methodology for risk management particularly in the BPR (Business
Process Reengineering) sub-project of ERP implementation The final aim of our work is
to decease appreciably resistance to organizational change which poses the greatest
obstacle to business process reengineering efforts They propose to adapt OSR (Optimal
Set Reduction) a risk management method used in software development for the risk
38
management in ERP implementation They address specially the risk related to the
changes in enterprise processes in the ERP project To achieve this objective they
propose to define business process change metrics starting from business process
complexity metrics that exist in the literature [18]
ldquoExploration and Verification of Factors in the Front-end Stage of the ERP
Implementation Process Evidence from Case Study and Survey Researchrdquo Kun Shi and
Qiang Lu (2009) depict that ERP (Enterprise Resources Planning) is widely used to
improve business performance This paper explores how the factors associated with the
Front-end ERP Implementation Process (FEIP) affect the implementation outcome First
based on literature review a preliminary framework with 12 hypotheses is developed
Then Grounded Theory is applied for a case study to further extract and verify the factors
and sub-factors These factors are finally identified as strategic planning corporate
culture user characteristics organization-process-system maturity external expertise
engagementsupport and project preparation Furthermore the significance and
correlation of all the factors are detected by conducting survey research with SPSS as a
tool for analysis The study shows that the framework is valid and that among six three
factors have strong impact on the ERP implementation result whereas others are less
influential Implication is given and limitation is indicated at the end [63]
Huo Lingyu Liu Bingwu and Li Juntao (2009) in the paper ldquoAn ERP System Selection
Model Based on Fuzzy Grey TOPSIS for SMEsrdquo present a new fuzzy multi-criteria
decision making (FMCDM) approach which integrates the technique for order preference
by the similarity to ideal solution (TOPSIS) grey relation and fuzzy set theory for
enterprise resource planning (ERP) system evaluation and selection in the Small and
Medium-Sized Enterprises (SMEs) In this study the characteristic of the alternative with
respect to the criteria are represented in terms of a linguistic term set and the weight of
the criteria is described by triangular fuzzy numbers respectively According to the grey
theory and fuzzy set theory a closeness coefficient is defined to determine the ranking
order of all alternatives by calculating the grade of grey relation to the fuzzy positive-
ideal solution (FPIS) and fuzzy negative-ideal solution (FNIS) simultaneously Finally
an example is shown to highlight the procedure of the proposed method [48]
39
Gao Juntao Zhang Li Wang Zhiyao (2008) summarized their findings in ldquoDecision
Support for Handling Gaps between ERP functionalities and Organizational Needs A
Goal Reasoning based approachrdquo They found that in the process of selecting
commercial off-the-shelf (COTS) ERP systems it is inevitable to encounter gaps between
ERP software and organizational needs Gaps occur when COTS attributes do not exactly
match organizational needs and they make organizational users and software vendors in
the dilemma whether to adapt as-is business processes or to customize software
packages A decision support method for handling gaps is proposed in this paper Firstly
organizational goal-process models are built as the base for decision making Secondly
the idea of evidence theory is introduced into goal reasoning and a quantified algorithm is
proposed to evaluate the impacts of different business processes on high level goals
which are critical to make decision At last the risk is discussed to rank intervals which
specify the expected utilization of business processes [56]
Yvonne Dittrich and Sebastien Vaucouleur (2009) conducted a research on the topicrdquo
ERP Customization as Software Engineering Knowledge Sharing and Cooperationrdquo and
argue that Enterprise resource planning (ERP) systems must be configured and
customized to fit a specific company The authors discuss cooperation with regard to ERP
systems customization Enterprise resource planning (ERP) vendors provide multiple
configuration possibilities ranging from module selection to master data provision to
steer access rights for different users These configuration possibilities cover anticipated
variability If the customer requires adaptation beyond whatrsquos anticipated the source
code of the product must be adapted Customizations in this articlersquos context are source-
code-based adaptations of software products The size and complexity of customizations
range from simple report generation to developing independent add-ons that support
specific businessesmdashfor example solutions for flight carriers The size and lead time of
such projects can compare to a full-size software development project They present
empirical research on customization practices of ERP systems as an example of software
development based on customization of standard software They compared customization
with other development practices that are based on integrating existing code and results
underlined the need to rethink software engineering and programming methods and tools
[129]
40
In the paper study ldquoSignificance of Software Metrics in ERP Projectsrdquo S Parthasarathy
and N Anbazhagan (2006) narrate that ERP projects are a subclass of software projects
often accompanied by large-scale organizational changes One of the major reasons found
in the literature for the failure of ERP projects is the poor management of software
processes In this paper we propose a Software Metrics Plan (SNP) containing different
software metrics to manage software processes during ERP implementation Two
hypotheses have been formulated and tested using statistical techniques to validate the
SNP The statistical analysis of the collected data from an ERP project supports the two
hypotheses leading to the conclusion that the software metrics are momentous in ERP
projects [84]
Antony Marsh (2000) in the article ldquoThe implementation of Enterprise Resource Planning
systems in small and medium Manufacturing enterprises in south-east Queensland a case
study approachrdquo examines the implementation of ERP systems in smallmedium-sized
enterprises in South East Queensland Australia Nine case studies were conducted to
determine factors for success or failure in the implementations Key success factors
identified included cross-functional team approaches organizational experience of
similar scale IT or organizational change projects and lsquodeeprsquo understanding of the key
issues relating to ERP implementations Failure factors identified included top-down or
consultant driven implementations IT department driven implementations or
implementations where the EFV is seen as a quick technological fix to problems within
the operation of the firm rather than as a strategic investment [78]
Christian Doumlrner Sebastian Draxler Volkmar Pipek and Volker Wulf (2009) through
their study ldquoEnd Users at the Bazaar Designing Next-Generation Enterprise Resource
Planning Systemsrdquo propose that the bazaar metaphor has developed a lasting
popularity in software engineering especially as software architectures have evolved
from monoliths to service orientation Nevertheless the metaphor is limited because it
doesnt consider end users those who develop software for themselves Introducing such
an end user the prosumer to the bazaar not only suggests a changing division of work
in software development but also calls for different functionality and architectural
choices The authors evaluated changing software architectures from an end-user
development (EUD) perspective taking the case of enterprise resource planning (ERP)
41
systems as traditionally monolithically designed systems moving toward service
orientation On the basis of the studys findings which indicated problems with the
systems technical flexibility the authors developed a tool set for fostering EUD
activities Their new architecture for ERP systems enables end users to create their own
solutions [31]
Kenny KF Lee (2000) in ldquoThe Five Disciplines of ERP Software Implementationrdquo has
identified the critical factors in businesses which learn grow and succeed This paper
applies the central concepts of the book its five disciplines to the software business
specifically the management of software implementation Using the learning challenge
posed by the organization-wide implementation of Enterprise Resource Systems (Em) the
paper covers how EM software project leaders may manage themselves their teams
business vision and corporate culture and team members to create a survival machine
which can thrive in the current economic and technological climate [67]
Piet MA Ribbers amp Schoo (2000) in his paper ldquoDesigning Complex Software
Implementation Programsrdquo raises a central question that how one can design of Program
Management contributes to the success of complex software implementations
Incomplete goal specifications lack of communication and underestimation of project
complexity are signs of insufficient program and project management To avoid these
pitfalls he proposes ways that have worked well in recent complex multi-project ERP
implementations (programs) Answering the above question raises the problem of
adequately defining and measuring the level of complexity of an implementation
program A conceptual model was developed which identifies program management
factors that are proposed to have an impact on implementation success Fifteen cases
were studied to find support for the proposed framework [88]
ldquoDetecting Gaps between ERP Software and Organizational Needs A Semantic
Similarity Based Approachrdquo is very relevant and contemporary paper presented by Gao
Juntao and Zhang Li (2008) It depicts that Gap analysis is one of the most important
phases in implementation of enterprise resource planning (ERP) system In this paper an
approach is proposed to automatically detect gaps between software capacities and
organizational needs based on semantic similarity computation The approach takes two
business process models as input and one specifies software capacities and the other
42
describes organizational needs The output of it is a report of gaps As a matter of fact
the differences between application domain and software discipline make semantic
heterogeneity a key problem in gap detection therefore the technologies of semantic
similarity computing are employed to resolve ambiguity issues caused by the use of
synonyms or homonyms In particular the idea of similarity propagation is introduced to
pick out a mapping between corresponding activities and data and Hungarian algorithm
is employed to reduce its time complexity Then the similarity of whole models is
measured according to the minimal total cost of change operations Finally an
experiment is given to evaluate the method [36]
In the research publication ldquoERP System Adoption - Does the Size Matterrdquo Sanna
Laukkanen Sami Sarpola and Petri Hallikainen (2005) investigate the relationship of
enterprise size to the constraints and objectives of ERP systems adoption The survey
data based on the responses of 44 companies indicates that significant differences exist
between small medium-sized and large enterprises in ERP system adoption Specifically
the findings suggest that small companies experience more knowledge constraints than
their larger counterparts in ERP adoption Further while being the most prevalent
objective for ERP adoption in all the company groups business development through
ERP adoption is considered especially important by the medium-sized and large
enterprises Finally the findings of the study suggest that instead of considering small
and medium-sized enterprises as one homogenous group the differences between these
two groups of companies should be acknowledged in the future research [65]
In their paper ldquoModel Based on CSCWrdquo Wedian Liang XuFen Zhenkun Li Rong Xiao
JunFeng Hu (2005) summarise their finding They feel that Software testing is an
important component of the software engineering and an important link that the software
development quality is guaranteed Using the reasonable model for software testing can
reduce the expenses of testing in the developing activity in the course of testing thus cut
down the cost of software development In this paper we put forward a model for
software testing bused on CSCW technology that run through each stages of software
development cycle If can find the mistake in the software as soon as possible has
shorten the time taken for testing in the course of the development of software testing
43
effectively Finally we applied the model to the testing project which develops ERP
system and then receive the ideal result [118]
In their paper ldquoThe Research and Development of IMIS for Small and Medium-sized
Printing Enterpriserdquo Taolin Ma Xiaoming Chen Yansong Sun Xiurong Li (2009)
analyzed the fact that the basic management thought of inventory management
information system (IMIS) was established by analyzing the inventory management
theory of modern enterprise In this system which using the architecture of CS the stores
were classified by ABC management method the inventory control was completed by
setting up the safety stock and the largest stock the analysis and design of IMIS were
finished This IMIS was developed to meet the practical requirements of small and
medium-sized printing enterprise in our country It can not only be used as the important
measure of the informationized construction for small and medium sized printing
enterprise but also used as a subsystem of enterprise ERP system IMIS could improve
enterprise management level realize rapid transformation of enterprise and finally
enhance the competitiveness of enterprise in market economy [106]
Jiangao Deng and Yijie Bian (2008) in the research paper ldquoConstructing a Risk
Management Mechanism Model of ERP Projectrdquo mention that in the process of
information project implementation of manufacturing enterprises there are many risks to
set up a set of risk management mechanism is guaranteed for them to succeed in ERP
implementation Firstly based on the analysis of ERP project implementation of China
the paper introduced the risk management methodology systems and the relative model
which includes three main steps identifying risk evaluating risk and controlling risk
After that on the aspects of decision implementation and application stages of
manufacturing ERP project life cycle the paper discussed risks of each stage and put
forward a two-dimension matrix risk management strategy Then a mechanism model of
ERP project risk management is constructed which shows that information risk control
strategies of the last two stages not only depend on resources of these stages but also
have a diverse relationship with the last stage Finally according to the successful
implementation of an enterprisersquos ERP project the paper carried out an effective case
application analysis of risk management mechanism model The lack of improvement in
usersrsquo ERP skill levels and the shortage in documenting the rationale for business rules
44
and configuration decisions were among the critical issues of the post-implementation
stage Indeed all of their respondents stressed the importance of refreshing the usersrsquo
knowledge about the system [28]
Saumyendu Ghosh (2003) in ldquoGlobal Implementation of ERP Software ndash Critical Success
Factors on Upgrading Technical Infrastructurerdquo discusses that implementing an
Enterprise Resource planning (ERP) software in a global environment executive
sponsors face two key challenges While business processes are to be re-engineered to
align with the ERP software best practices technical architecture and infrastructure needs
to be in place globally as per specifications of the packaged software In the legacy
environment different countries or different business units use different systems based
on local standards supported by local resources In the new ERP world globally all the
countries must conform to same technical infrastructure Technical managers face
multiple critical issues implementing a global solution Most of the ERP software is
developed in technically advanced countries standards are often too high for under
developed or developing countries In an effort to bring the global organization to a
common platform different countries need different levels of upgrades In this paper the
authors review key technical issues faced is a global upgrade process to support a global
ERP implementation and how to resolve those We conclude although technical
infrastructure and business process reengineering both are equally important and each
implementation is unique but following some simple steps it is easy to prioritize each
ones during different phases of the project Also time lines of two sub-projects must
converge after initial phase and must follow a common plan for the project to be
successful Multiple scenarios are described to facilitate the process He concludes
although technical infrastructure and business process reengineering both are equally
important and each implementation is unique but following some simple steps it is easy
to prioritize each ones during different phases of the project Also time lines of two
subprojects must converge after initial phase and must follow a common plan for the
project to be successful Multiple scenarios are described to facilitate the process [38]
Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008) ldquoDevelopment and
Implementation of ERPCRM System Based on Open Source Software to Small and
Medium-sized Enterprise in Chinardquo analysed the fact that E-commerce and the
45
development of modern enterprise management raise a number of challenges in the
process of informatization of small and medium-sized enterprises (SME) in china To
address this they present an approach in which the informatization is enhanced by using
Open Source Software with customized policies We analyses the main
informationization obstacles of SME in china bring forward that the lack of bankroll
talents cost and management etc are the key problems to informationization of SME
Furthermore they have developed a textile foreign trade ERP CRM system based on
Open Source Software for the local textile distributor of china integrating financial
distribution sales and service processes given the implement method of overall planning
step-by-step implementation key breakthrough and efficiency guiding In the end we
compare the typical Open Source Software and traditional commercial software point
out the advantages of informatization based Open Source Software to SME in china and
the development trend of Open Source Software for enterprise application [132]
ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information Systems ndash a
Multi-disciplinary Method for ERP System Requirements Engineeringrdquo by Inka Vilpola
Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that ERP systems are in
most cases off-the-shelf software packages and large by their size and complex by their
structure Small and medium-sized enterprises (SMEs) require flexibility of the ERP
system because of their individual operational processes Therefore it is crucial to select
and implement an ERP system that fits the requirements of the intended target processes
To support the requirements engineering of ERP systems we have developed Customer-
Centered ERP Implementation (C-CEI) method The method introduces a multi-
disciplinary approach to the ERP project and provides in-depth understanding of the
companylsquos processes and context of use Using C-CEI method decreases the risk of
SMEs to select an inappropriate system and improves the system acceptance by the
customer companyrsquos employees In this paper we present the method and illustrate it by
three SME case studies [114]
Saumyendu Ghosh (2000) in ldquoChallenges on a global implementation of ERP softwarerdquo
discusses that some of the unique challenges in ERP implementation are satisfying
multiple countries statutory requirements and reporting to the corporate head quarters
from one installation of the software conflicting interests between different business
46
entities lack of experienced implementators in all the countries and eminent users of
multinational advantages He discusses different aspects of these challenges in detail and
point out that ERP software can provide only one solution for a particular business
process unless workarounds are available from experienced implementation Different
counties adopt different reporting and accounting practices and therefore an ERP
implementation cannot solve all problems that global corporation may have multiple
countries in the scope of the project due to absence of standard global processes across
the organization He concludes that the most important critical success factor of these
international implementations are how quickly these corporations can reengineer existing
business process to adopt best practices of using an ERP system [38]
Dong Cheng Feiyan Deng Hongtao Li (2006) ldquoCritical Factors for Successful
Implementation of ERP in Chinardquo in their study propound a theoretical model for
successful implementation of Enterprise Resource Planning (ERP) under Chinarsquos
environment and the authors analyze the model empirically through structural equation
modeling The authors find that strategically IT planning abilities leadershiprsquos support
and the skills of IT section business processing abilities learning abilities and change
management abilities has a significant positive impact on successful ERP implementation
[22]
Parijat Upadhyay (2008) in his research studies ldquoAn explorative study to identify the
Critical Success Factors for ERP Implementation in Indian small and medium scale
enterprisesrdquo explores the existing literature on ERP implementation issues in context to
small and medium scale enterprises and attempts a compilation of the factors that assume
great significance while implementing ERP in SMErsquos Given the nature and magnitude of
the problems in encountered in implementing an ERP project this study would attempt to
identify the critical success factors(CSFrsquos) for a successful implementation of an ERP
project since it calls for substantial effort on the part of all the stake holders involved to
make the implementation a success [111]
ldquoThe ERP Implementation of SME in Chinardquo Yuanqiang Xia Peter Lok and Song Yang
(2009) presented the fact that ERP implementing for small and middle size enterprise
(SME) is different from the large one Based on the analysis on the character of ERP
marketing and SMEs of China 6 critical success factors are recommended The research
47
suggests that the top management support is most important to ERP implement in SME
of China in which paternalism prevails Database of management and capital are main
obstacles ERP 1 or ERP 2 fits to demand of SME high power project team has
tremendous significance in the situation of absence of IT engineer for SME education
and training is helpful to successfully ERP implementing The results service as better
understanding the ERP implementation of SME in China and gaining the good
performance of ERP implementation [126]
Yan Xu and Chung-Hsing Yeh (2009) in the article ldquoStrategic Management of
Performance Measures for an ERP Implementation Project Teamrdquo present a new
evaluation model for managing performance measures of an enterprise resource planning
(ERP) implementation project team in an organization With the performance measures
classified into four strategic perspectives of the balanced scorecard the evaluation model
enables the goal alignment between the project team and the organization A new
algorithm using the concept of multi-attribute decision making is developed to obtain the
relative importance value for each performance measure for its contribution to the
strategic goals of the organization The higher the importance values of a performance
measure the more important the role it plays in determining the responsibilities of the
corresponding project team player Understanding the importance of the key performance
measures will help an organization well-prepare to launch a project and have the project
being organized in advance A case of an ERP implementation project in an integrated
manufacturing corporation is presented to demonstrate the applicability of the evaluation
model and its effective management of the performance measures [124]
Zhang Yanhong (2009) in his research paper ldquoERP Implementation Process Analysis
Based on the Key Success Factorsrdquo describes that Enterprise Resource Planning (ERP) is
an amalgamation of a companys information systems designed to bind more closely a
variety of company functions including human resources inventories and financials
while simultaneously linking the company to customers and vendors This thesis is based
on the theory of product life cycle and the process of ERP is divided into four phase
planning implementation stabilization and improvement Critical success factors in each
phase are identified by paper research case study and investigation An ERP
implementation process model based on the critical Success factors (CSFs) is proposed in
48
the paper The thesis analyzes the global planning stages and business process rebuilding
in the process of QIHE pharmaceuticals ERP Improvement on management and
financing before and after ERP implementation are contrasted and we come to the
following conclusions (1) The CSFs in the planning phase is comprehensive
investigation and evaluation (2) The CSFs in the implementation phase is effective
project management team (3) The CSFs in the stabilization phase is appropriate
information management system (4) The CSFs in the improvement phase is change on
demand and continue to innovate (5) The CSFs throughout the product life cycle is
business process rebuilding [131]
Van Stijn E and Wensley A (2001) ldquoOrganizational memory and the completeness of
process modeling in ERP systems some concerns methods and directions for future
researchrdquo mentioned that Enterprise resource planning (ERP) systems not only have a
broad functional scope promising to support many different business processes they also
embed many different aspects of the companyrsquos organizational memory Disparities can
exist between those memory contents in the ERP system and related contents in other
memory media such as individualsrsquo memories and the organizational structure and
culture It is our contention that in general these disparities or memory mismatches as
we will refer to them lead to under-performance of ERP systems In this paper they focus
on potential memory mismatches that may arise with respect to the embedding of process
knowledge within ERP packages Packages such as SAP provide a varied and rich
environment for process modeling However they suspect that there are still many
instances where process knowledge is either lost or represented in different ways in
different parts of the organization The overall thrust of the paper is to identify a variety
of concerns intriguing questions and avenues for future research [112]
Eric Kimberling (2008) in his article ldquo The Role of Lean Six Sigma in ERPrdquo insisted
that there are a number of things to consider when considering a new ERP system like six
sigma lean manufacturing or other business transformation projects that has the capacity
to measure reducing waste managing change well continuous improvement etc [133]
William H Gaw (2010) ldquoEight Basics of Lean Six Sigma for Manufacturing Firmsrdquo In
the efforts to draw closer to customers many manufacturers have lost focus on what
should be a companyrsquos primary success factor ndash profitable growth In todayrsquos competitive
49
manufacturing environment it takes more than quick fixes outsourcing and downsizing
for companies to consistently achieve their growth and profit objectives While these
options may yield temporary financial relief they will not lead the way to long-term
growth and profitability For companies to grow and consistently exceed bottom line
expectations they need to get lean And to get lean they should master eight basics of
Lean Six Sigma in the form of information integrity performance measurement
sequential production point-of-use logistic cycle time management production linearity
and resource planning and customer satisfaction [134]
Brehm L and Markus M L (2000) in The Divided Software Life Cycle of ERP
Packages mentioned that traditional information system life cycle (SLC) focuses on the
activities performed by company developing implementing and maintaining software for
its own internal use Enterprise resource planning (ERP) software packages change the
SLC in several important ways This paper presents an extension of the SLC model for
ERP packages The lsquodivided software life cyclersquo (DSLC) model features an equal
emphasis on the activities performed by the ERP adopting company and the ERP vendor
[15]
Alavi M and Carlson P (1992) A Review of MIS research and disciplinary
development The perceived status of journals in which MIS research is published is an
important issue to academics The number of IS-related journals has increased through
the years yet it is not obvious which are the ldquoleadingrdquo journals or what criteria should be
used to determine this This article addresses these issues by (1) evaluating and
analyzing previous studies in which MIS related journals have been ranked (2)
determining top-ranked journals and placing them into two levels or tiers based on
previous studies and (3) establishing a profile through a systematic analysis of the nine
journals in the first tier This study identified 17 highly ranked journals for publication
Nine were placed in the first tier and eight in the second tier In addition to IS-specific
journals publications included management science computer science and business-
oriented journals The individual strategies for improving software productivity are
identified Issues related to software costs and controlling them are examined and
discussed It is pointed out that a good framework of techniques exists for controlling
software budgets schedules and work completed but that a great deal of further progress
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 3
14
CSF constructs were then identified using content analysis methodology and an inductive
coding technique A subsequent critical analysis identified gaps in the literature base for
adopting new techniques like lean six sigma re-engineering etc The most important
finding is the lack of research to identify the most CSFs (MCSFs) of key stakeholders
such as small amp medium enterprises after removing their most critical problems (MCPs)
during ERP implementation Additionally there appears to be much variance with
respect to what exactly is encompassed by change management one of the most widely
cited CSFs and little detail of specific implementation tactics
24 COMPREHENSIVE REVIEW ON ERP LITERATURE
Majed Al_Mashari (2002) of King Saud University Saudi Arabia in his paper ldquoERP
Systems A Research Agendardquo considered the continuing development of Enterprise
Resource Planning (ERP) system as one of the major IT innovations in this decade He
observed ERP solutions seek to integrate and streamline business processes and IT and
what makes this technology more appealing to organizations is increasing capability to
integrate with the most advance electronic and mobile commerce technologies
However he realized the fact that as is the case with any new IT field research in the
ERP area still lacking and the gap in the ERP literature is huge Thus he attempted to fill
this gap by proposing a novel taxonomy for ERP Research and discussed its current
status with some major themes of ERP research relating to ERP adoption technical
aspects of ERP and ERP in IS curricula The discussion presented on these issues
provides valuable guidance for researchers and practitioners in ERP [74]
Christopher P Holland amp Ben Light (2001) conducted a research on the topic ldquoA Stage
Maturity Model for Enterprise Resource Planning Systems Userdquo In this paper the
authors present a maturity model for ERP systems that identifies three stages and this is
illustrated using case data selected from the study which is based on 24 organizations in
the US and Europe In Stage 1 organizations are managing legacy systems and starting
the ERP project In Stage 2 implementation is complete and the functionality of the ERP
system is being exploited across the organization In Stage 3 organizations have
normalized the ERP system into the organization and are engaged in the process of
obtaining strategic value from the system by using additional systems such as customer
15
relationship management knowledge management and supply chain planning It has
shown that the organizations follow an S-shaped curve and that most companies are in
the middle stage An analysis of the implications for organizations at each stage of the
maturity model has presented which will be of value to practicing managers The
implications are categorized as impacts on cost entropy complexity flexibility and
strategic competitiveness They made a contribution to the academic literature is to relate
a well established theory to contemporary developments in ERP systems It also
identifies areas for future research notably technical issues associated with connecting
ERP systems with other specialized package software and competitive issues concerned
with gaining competitive advantage from standard systems and speed of implementation
[47]
In ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola Kaisa
Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for smooth
and strategic implementation of ERP They further say ERP systems are commercial-off-
the-shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes It is not always possible
to assign the time of the companyrsquos key personnel to multidisciplinary activities of
Contextual Design In addition conducting Contextual Inquiries (CIs) with long serving
employees can often result in data with a highly personalized perspective Even though
ERP systems as such cannot be designed from scratch the application of CD ensures that
the user tasks UI (User Interface) modifications made by configuring the ERP system as
well as changes in the context can all be designed according to UCD (User Case design)
principles Introducing user-centeredness in ERP implementation improves the
implementation process and leads to the success of the contextual change A companyrsquos
efficiency and productivity depend on how fast and completely the organization adopts
the new ERP system [113]
A N Parr amp Dr G Shanks (2000) in the article ldquoA Taxonomy of ERP Implementation
Approachesrdquo argue that the concept of an ERP implementation is not a generic concept
16
and present taxonomy of ERP implementation in three archetypal categories ie
Comprehensive Middle-Road and Vanilla The rationale for implementation varies
between companies and provides an indicator of the type of implementation envisaged
The characteristics of each category are Physical Scope the BPR Scope Technical
Scope Module Implementation Strategy and Resource Allocation Combinations of these
characteristics serve to place an implementation within one of the categories The CEO
can see straightforwardly some of the consequences of implementation decisions by
understanding the taxonomy and the choices it highlights In this way the taxonomy can
be used to structure discussions about ERP implementation and make the decision
making process more systematic The aim of the taxonomy is to provide non-technical
managers with an effective framework early in the process to comprehend the
dimensions and implications of the enterprise This may then help to reduce the budget
and time blowouts [83]
Wayne Brown (2004) in his research paper ldquoEnterprise Resource Planning (ERP)
Implementation Planning and Structure A Recipe for ERP Successrdquo conducted a brief
review of the literature on attributes and structure that help in making ERP
implementation successful The project management structure and process used at Heald
College was compared to this ERP implementation literature The author discusses this
structure and the processes used to control project costs limit customizations control
scope involve executive management deliver documentation and training communicate
with the institution and manage change The author concludes with a lesson that
communication and change management are very important pieces of the implementation
puzzle [17]
Ali Haj Bakry amp Saad Haj Bakry (2005) through their study on ldquoEnterprise resource
planning a review and a STOPE viewrdquo provides a comprehensive understanding of ERP
systems including illustrating their main components and clarifying their basic and
extended features The ERP review presented here has started with the ERP principles
and moved forward toward the market state selection criteria implementation factors
current and future development and stopped at integrating the various ERP issues into
the STOPE framework (strategy technology organizationndashenterprise people
environment) which illustrates the integration of ERP systems with the overall enterprise
17
network The research illustrated that ERP systems are distinguished for their e-business
support integration approach flexible modular architecture and openness for horizontal
accommodation of wider scope of tasks and for vertical building of sophistication and
intelligence The ERP systems are open for further improvement through research and
development and for more experience through practical implementation and operation
[9]
In the article ldquoEnterprise Resource Planning A Business Approach to System
Developmentrdquo Nicola Gibson Christopher P Holland amp Ben Light (1999) of
Manchester Business School argue that system development is now entering a new phase
of maturity with the advent of Enterprise Resource Planning (ERP) software packages
From case study research it is shown that ERP implementations have different types of
problems compared with traditional software development methods These centre on the
alignment of business processes with the standard software package and the project
management of the implementation process They concluded that ERP is a departure
from traditional approaches to system development It therefore requires a different
approach that places less emphasis on the technical aspects of software development and
instead seeks to balance the business process design software configuration and project
management aspects of IT implementation with the overall strategy and structure of the
firm [41]
In Proceedings of the 36th Hawaii International Conference on System Sciences Celeste
See Pui Ng Guy Gable amp Taizan Chan (2003) of Queensland University of Technology
Australia presented their research paper ldquoAn ERP Maintenance Modelrdquo In order to
bridge this gap in literature and practice they propose a preliminary ERP maintenance
model reflecting fundamental ERP maintenance and upgrade activities A detailed case
study was conducted to gather empirical data for developing such an ERP maintenance
model Data gathered from the interviews relating to (i) maintenance preparation and
initial planning (ii) maintenance procedures and (iii) upgrade process are used to map
out Government Agencyrsquos (GA in the Australian state of Queensland) implicit
maintenance model ndash maintenance preparation maintenance procedure and software
upgrade stages respectively Data collected from the databases associated with request
type staff involved and maintenance activities are used to map out the maintenance
18
procedure stage whereas information from the upgrade business case and upgrade
planning resources documentation are used for mapping out the software replacement
stage of GArsquos maintenance model Data analysis identified potential benefits of the
maintenance model to ERP-using organizations generally and to the case firm in
particular with the primary business objectives This study provides practitioners with
guidelines on planning implementing and upgrading an ERP [86]
Yao Yurong amp He Houcun (2000) in the article ldquoData Warehousing and the Internetrsquos
impact on ERPrdquo examines the advances in data warehousing and internet technology
spurring ERP development As per their findings these systems still needed some
improvements To keep pace ERP systems themselves have undergone considerable
change in the past 10 years Thus in making the right ERP choices itrsquos helpful to know
how two key technologiesmdashdata warehousing and the Inter-netmdashare transforming these
complex systems SAP a leading ERP company introduced the business warehouse as a
complement to its R3 application suite Oracle a SAP competitor also sells its own
solutions Action (an activity-based management system) Balanced Scorecard (a
business performance management package acquired from Graphical Information Inc)
sales analyzer and warehouse analyzer So Oracle has also concluded that the
combination of data warehousing and ERP is an effective solution for counteracting the
drawbacks of the two systems [127]
In the research publication ldquoMatching ERP System Functionality to Customer
Requirementsrdquo Colette Rolland amp Naveen Prakash (2001) propose an approach for
matching ERP system functionality to customer requirements The assumption made was
that the ERP system postulates a set of requirements that are worth eliciting from the
ERP documentation as abstractions of the ERP system functionality Then the
requirements engineering process is a process that matches the ERP set of requirements
against organizational ones The paper presents the Map representation system and the
matching process The process is illustrated by considering the Treasury module of SAP
and its installation in the financial management of a cultural exchanges unit
Conclusively one can successfully expect to lay down such generic maps for capturing
change strategies for companies moving from single to multi customer oriented services
[91]
19
In ldquoEnterprise Resource Planning (ERP) ndash Breakthrough or Buzzwordrdquo A Fitzgerald
(1992) suggests that to understand the structure of the ERP manufacturing solutions one
must examine both the technology underlying these systems together with the
environments and functionality required Finally to make the lsquobusiness casersquo for such
systems we must focus on the benefits that can be achieved by using ERP systems [33]
In the proceeding of 34th
Hawaii International conference on System sciences an
important article on CSFs in ERP ldquoThe Impact of Critical Success Factors across the
Stages of Enterprise Resource Planning Implementationsrdquo by Toni M Somers amp Klara
Nelson (2001) was published This paper describes the impact of Critical Success Factors
(CSFs) across the stages of Enterprise Resource Planning (ERP) implementations using
the responses from 86 organizations that completed or are in the process of completing an
ERP implementation This research not only identified which CSFs are most critical in
ERP implementations but also determined which factors are temporal ie significant in
the implementation process for a particular period in time That information can now be
used to identify anticipate and allocate time and resources across those factors that need
attending to for effective project monitoring It also provides an understanding of the
factors and their importance throughout the various phases of implementation which in
turn can serve as a useful guide for firms in the process of implementing an ERP system
[103]
In the proceeding of 34th
Hawaii International conference on System sciences IEEE 2001
ldquoTailoring ERP systems A spectrum of choices and their implicationsrdquo Lars Brehm amp
Armin Heinzl M Lynne Markus (2001) depict that the IS literature distinguishes between
custom-built and off-the-shelf software Enterprise resource planning (ERP) packages are
often viewed as off-the-shelf software because adopters implement them by setting
parameters (called configuration) rather than by traditional programming Making
changes to ERP software code (called modification) is usually strongly discouraged by
vendors and implementation consultants Nevertheless field research has shown that
many companies have had to modify ERP software in various ways to meet essential
business needs In this paper they describe a portfolio of tailoring options between
configuration and modification with important implications for implementation risk and
the difficulty of ERP system upgrades but with companyrsquos advantages [16]
20
Babak Akhgar Jawed Siddiqi and Samir Al-Khayatt (2002) summarized their findings in
the article ldquoStrategic exploitation of ERP for e-businessrdquo for the Proceedings of the
International Conference on Information technology Coding and Computing (ITCCrsquo02)
This paper based on research from an ongoing IS investigation project at a large
multinational company examines the relationship between ERP amp E-business The paper
discusses different scenarios of ERP implementation status that organizations may find
themselves It examines the components of e-business success namely visibility of
information processes and technology that will be either enabled or restricted by ERP
What transpires from this research is that for many start-ups e-business becomes
synonymous with business in general Ultimately they conclude that e-business should
form part of the corporate strategy and that IS or IT strategy should form the basis for
determining ERP implementation structures thereby ensuring e-business requirements
become the platform for ERP [2]
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther G Chattopadhyay (2004) The paper
presents research on ERP system characteristics particularly relevant for Small to
Medium Enterprises (SME) Authors investigated the duration of the project phases to
establish the human resource requirements through the selection implementation and
support of the ERP project Common factors that are crucial for an SME in the
manufacturing sector embarking on an ERP system are identified in this paper for system
selection and implementation User survey was carried out for a target group of SME
companies around Brisbane Australia The survey captured both qualitative and
quantitative data relating to the ERP system in place at a target group of electrical and
electronic equipment manufacturing companies located in South East Queensland
Australia Quantitative analysis was carried out on the cost of the ERP selection and
implementation project both in terms of capital outlay and human resources [87]
Reported implementations recognized the benefits of aligning business processes with a
target ERP system in the period prior to the go-live and authors summarize following
points
ERP system as a business tool for growth of SME
21
Critical selection factors unique and realized benefits different for each business
SME having limited resources (money people time) with which to evaluate and
implement ERP
Ongoing costs
Overall success
In the paper study ldquoERP Training Strategies Conceptual Training and the Formation of
Accurate Mental Modelsrdquo Tony Coulson Conrad Shayo CE Tapie Rohm Lorne
Olfman (2003) examined a major determinant of successful ERP implementation end-
user training The study finds that a workflow conceptual advanced organizer strategy
(TCT group) improves end-userrsquos mental model accuracy over time as demonstrated by
the subjectslsquoability to recall ERP specific concepts Results indicate that a conceptual
advance organizer is an important component of ERP training and should be incorporated
into an organizationlsquos training strategy In general the study supported the framework
and found that by adding a tool conceptual knowledge-level to the training the end-users
developed more accurate mental models By using the knowledge-level framework and
incorporating tool conceptual knowledge into an organizationlsquos training design
organizations may see an improvement in overall ERP implementation results For
example because ERP training is very expensive those within an organization that attend
ERP training are often asked to train others in the organization when they return This
study shows that adding a tool conceptual knowledge-level to their training improves
their ability to recall and re-articulate their understanding of the system By building the
knowledge-levels that enable more effective understanding and communication of
concepts learned could be an invaluable asset to any companylsquos training and
implementation strategy [24]
ldquoEnterprise Resource Planning Challenges for Small and midsize Business (SMBs)rdquo
Analyst Katherine Jones (2004) of Aberdeen suggests that small and midsize businesses
are primarily driven by operating cost pressures perceived as the biggest challenge and
their key challenges are
1 Insufficient funding for corporate strategies and initiatives
2 Lack of clearly defined corporate vision and goals
3 Ineffective communication of corporate strategies and initiatives
22
4 Metrics that do not sufficiently provide incentives employees to supportachieve
corporate goals
5 Inability to accurately determine and plan for customer demand
As the immense variability in how SMB companies conduct business still predominates
the SMBs see technology as the enablers of their strategies Specifically cited are the
increased availability of advanced analytics decision support and reporting tools as well
as the availability of process-specific business applications [55]
Christina Soh Sia Siew Kien and Joanne Tay-Yap (2004) through their study on the
subject ldquoCultural Fits amp Misfits Is ERP a universal Solutionrdquo Present early findings
from a larger ongoing study The typology of misfits and examples are drawn from the
review of implementation documents and supplemented by interviews with key project
team members from one hospital [102]
In their White Paper ldquoERP Selection ndash Right Tracking Enterprise Change ITSg-GCPrdquo at
TCS Dr Joginder Singh Lamba amp Swapnil Kitcha (2007) analyzed the fact that
business changes in the form of portfolio expansion structure decentralization and supply
chain integration drive new investments in ERP Besides the need for more functional
areas within the IT landscape (BI CRM PLM and Product Information Management)
demands new interfaces with ERP backbone Heterogeneous compatibility and varied
maturity across modules elicit interest in best of breed solutions in ERP [64]
In ldquoFuture of ERP systems and Microsoft Dynamics Learn about XML and Web
servicesrdquo McKie (2008) discusses what sort of requirements XML and web services put
on business applications He further explains ERP systems need to be able to create
XML schemas (data specifications) and they need to be able to import and export data in
XML documents The more data an ERP user needs to share with business partners the
more important is to have these capabilities In addition to XML McKie identifies a
second type of Web service that offers functionality rather than data is expected to
emerge in the form of business partner integration analytics and alerts [79]
David Caruso (2005) Senior Vice President Industry Research AMR in his article
ldquoProcess Productivity and Profit The SMB Executiversquos Framework for ERP
Investmentrdquo narrated that SMBs which are not aggressively developing an effective ERP
strategy will be at some disadvantage to their peers by 2006 Forward-thinking executives
23
will consider strategic business capabilities as the drivers for enterprise resource planning
(ERP) investment justification In a 2005 study that AMR Research conducted with over
550 companies regarding their ERP investment plans and found that only 27 of small
companies (fewer than 500 employees) are currently using ERP This is in sharp contrast
to the 57 of large companies (500 to 2499 employees) and 70 of enterprise-sized
companies (2500-plus employees) that have operational ERP systems Given this data it
is not surprising that almost 50 of the respondents interviewed will be making
substantial changes to their existing ERP systems over the next 12 to 18 months The
challenge for executives charged with the decision is establishing a powerful context for
making the ERP investment [20] When considering the ERP investment decision from
the perspective of the executive suite there are four overarching drivers that frame what
executives need to consider
1 Productivitymdashgetting the most from your valuable employee assets
2 Connectivitymdashworking collaboratively with your key customers and suppliers
3 Business insightmdashImproving the speed and quality of decision making
4 Total cost of ownershipmdashreducing the cost of owning and operating IT systems
Yong Jean John amp Ki-Henry Yim (2001) in an article ldquoA study on an Environment of
ERP Introductionrdquo includes the role of ERP perception of ERP value ERP plan
direction and also argues various checkpoints as a preview of ERP introduction In
conclusion they list checkpoints in sequence based on the mean values that provides
indications of the relative importance As a result the most important checkpoints were
Performance of Introduction Main Reference Sites Availability of Current Resources
Easiness of Introduction Operation System Past Records of Supply Market Share and
Vendor Size The results shown in this paper has shown strong implications for ERP
vendors Vendor size and market share received the least attention amongs all the
checkpoints described in the study [125]
One step forward IQMS Executive White Paper (2007) ldquoHow Successful ERP Selections
are Made ldquo this paper is not just about want and donrsquot want from the various people in
the organization It suggests that it should be a long lasting purchase that provides the
users the feeling of a partnership As the user is not just buying software they are also
buying into a vendor and their company culture The combination of software capability
24
and vendor credibility should be a major purchasing factor There is more to a lasting
ERP purchase than that There are several platform thoughts on technology how many
vendors are included the demonstration the always useful buzz words with all the hype
on service oriented architecture (SOA) best of breed lean manufacturing and all the
other phrases floating in the industry today implementation time customer referrals
customer retention look at your company objectively etc [49]
Robert C Beatty amp Craig D Williams (2006) in ldquoBest Practices for Successfully
Implementing an ERP Upgraderdquo maintain that an ERP upgrade is deceptively complex
and can be daunting especially for organizations ignorant of the massive effort required
to do it correctly One study of mid-size to large companies conducted by AMR Research
found that 67 of these companies are implementing some form of ERP while another
21 are evaluating potential ERP systems solutions As a growing number of companies
adopt ERP systems ERP systems implementation and upgrades are identified as one of
the top five IT priorities among global CIOs according to independent surveys conducted
by Morgan Stanley and Deloitte amp Touche IDG Research Services Group In
conclusion this article provides organizations with a list of the eight most common
recommendations suggested by organizations that have already completed at least one
upgrade to their initial ERP implementation [11] These are
Finding 1 Build your business case on new functionality
Finding 2 Treat the upgrade like a new project
Finding 3 Keep the team together
Finding 4 This is a business project not an IT project
Finding 5 Watch for hidden infrastructure costs
Finding 6 Un-customize customizations
Finding 7 Test like your organizationrsquos future success depends on it
Robert Davison (2002) raises a valid point through his article ldquoCultural Complications of
ERPrdquo discussed cultural misfits from a Singaporean perspective This implies that a one-
size-fits all or one-business-model- fits-all approach is unlikely to be successful As much
of ERP literature originates from and describes application contexts in North America
and to a lesser extent Western Europe where most ERP developers are located and
implementations have occurred Developers and consultants need to adapt their products
25
and services for different cultural markets Awareness of cultural differences and prefer-
ences will certainly improve the assessment of ERP suitability and any subsequent
implementation [27]
A group of researchers Siew Kien Sia May Tang Christina Soh Wai Fong Boh (2002)
from Information Management Research Center Nanyang Business School in their
research paper ldquoEnterprise Resource Planning (ERP) Systems as a Technology of Power
Empowerment or Panoptic Controlrdquo explores ERP as an ambivalent technology of
power According to them on the one hand it may tighten management control by
bringing a new level of panoptic visibility to organizational activities on the other hand
the embedded business model within the ERP may drive empowerment of employees and
greater control relaxation through the configuration of new process design This research
seeks to understand how the different forces play out in the context of ERP
implementation and to explore the implications for traditional power distribution in
organizations It adopted a mixed qualitative-quantitative methodology in an intensive
case study of a restructured hospital in Singapore A survey of 260 users was
administered supplemented by approximately 27 hours of individual interviews with 23
people Results reveal that although ERP can facilitate both empowerment and panoptic
control management has consciously resisted empowerment by working to reinstitute the
power lost through the ERP implementation On the other hand the new panoptic
visibility though partially unintended appears to have evolved naturally and was readily
learned and applied in the organization This study is significant in exposing the
likelihood of ERP implementation as a technology that perpetuates management power
At least in the context of the hospital studied it is yet another means of enlarging the
management authority for ldquototal controlrdquo Current articulations of ERP by practitio-
nersmanagement as empowering thus appear to be more theoretical than real This is
consistent with the perspective of critical theorists (eg Sewell amp Wilkinson 1992
Weber 1947 Tannenbaum 1968) that organizational life will become increasingly
rationalized and more controlled Thus the findings support the critical perspective in
exposing the likelihood of ERP implementation to perpetuate management power Being
a single case study the external generalization of the above analysis is limited Future
research should be sensitive to the formative context (eg the nature of the pre-existing
26
structure the Asian cultural context) and the distribution of authority among
organizational actors (eg presence of management intention) in an organization The
dynamics of panoptic control and empowerment during ERP implementation may be
different in organizational transformation contexts or in organizations with more fluid or
organic pre-existing structures It may also be interesting to follow the analysis of
panoptical and empowerment over an extended period to get a better understanding of
their continuously evolving dynamics [98]
Suprateek Sarker and Allen S Lee (2003) in the paper ldquoUsing a Case study to test the
role of three key social enablers in ERP implementationrdquo indicate that three key social
enablersmdashstrong and committed leadership open and honest communication and a
balanced and empowered implementation teammdashare necessary conditionsprecursors for
successful ERP implementation In a longitudinal positivist case study we find that
while all three enablers may contribute to ERP implementation success only strong and
committed leadership can be empirically established as a necessary condition This
presents a challenge to future ERP researchers for resolving apparent contradictions
between the existing literature and the results of our analysis and for investigating the
nature of interactions among the leadership communication and team characteristics
[93]
Srinivas Mantha (2007) in the article ldquoERPndashBusiness Processes with IP
Communicationsrdquo explained the fact that the key to new competitive capability is
envisioning the enterprise in terms of business wide relationships to improve user
experience across the network exploit knowledge and enhance and accelerate core
processes IP Communications is the catalyst for this capability It enhances the value of
the user experience exploits knowledge value and increases the value of business
processes [76]
Linda Askenaumls amp Alf Westelius (2000) from Linkoumlping University Sweden explore
a new vista of ERP through their literature ldquoFive Roles of an Information System A
Social Constructionist Approach to Analyzing the use of ERP Systemsrdquo This paper
presents a novel way of thinking about how information systems are used in
organizations Traditionally computerized information systems are viewed as objects In
contrast by viewing the information system as an actor our understanding of the
27
structure process increases The user being influenced by the ERP (Enterprise Resource
Planning) system and giving it an actor role thereby also confers agency on the ERP
system Through its very use it influences actions and thus the structure as well Based
on a case study of ERP use in an ABB company for over a decade five different roles
played by the ERP system were identified The ERP system acted as Bureaucrat
Manipulator Administrator and Consultant or was dismissed (Dismissed) in the sense
that intended users chose to avoid using them In conclusion the purpose of this approach
is not to ldquoanimaterdquo the information system to give it life or a mind of its own but rather
to make explicit the socially constructed roles conferred on the information system by
users and others who are affected by it On this basis it is possible to suggest how the
roles can help us opening up the new areas of exploration concerning the fruitful use of
information technology [70]
Jinyoul Lee Keng Siau and Soongoo (2003) conducted a study on the topic ldquoEnterprise
Integration with ERP and EAIrdquo They state that to survive and thrive in these hypercom-
petitive markets it is essential for a company to understand rapidly changing business
circumstances To rapidly respond to a changing environment an enterprise must
integrate business functions into a single system efficiently utilizing information
technology and share data with third-party vendors and customers While ERP forces the
adoption of standard business processes EAI enables enterprise integration over business
object levels ERP thereby supports a centralized business strategy while EAI naturally
accommodates decentralized business processes Lastly they observe the fact True
enterprise integration means both technical and behavioral integration It is not simply
integrating different systems applications or business processes dispersed across an
enterprise It is integrating structural changes different behaviors and various
information systems in an enterprise Enterprise integration is costly and time-
consuming thus management should be cautious in the design of the project
Organizations should not blindly rush into new technologies Top management should
first strive to understand their business and needs for enterprise integration and then
select a methodology of enterprise integration [68]
Wilhelm Scheer and Frank Habermann (2000) in ldquoMaking ERP a Successrdquo have used
business process models at an operational level of e-business to achieve positive results
28
They have talked of different scenarios in e-business As in Business-to-Business
applications such as Supply Chain Management the user has to connect the ERP systems
of all business partners This means he has to fight not only with the thousands of
parameters of a single ERP system but with twice as much (or even more) Another likely
scenario is that the business partners involved in an inter-organizational supply chain are
using ERP systems of different vendors In this case a business process model can be
firstly used to define the conceptual value chain Secondly the conceptual model that is
independent from a certain software vendor can be linked to the repositories of the
different ERP systems in order to customize an integrated software solution These
examples demonstrate that business process models play a major role for the success of e-
business Some ERP vendors like SAP have understood this development and are already
implementing their first model-based e-business applications [94]
Ash CG (2001) in An e-Commerce Model for Extending ERP Systems onto the
Internet An Australian Perspective stated that an established research framework of e-
Business change is used to identify the factors for success of this e-business project
within an ERP environment The results confirm that a successful project was found to
have facilitators in all components of the business framework including the change
environment and project management Further there is the implication that the least
successful e-business projects will have inhibitors in both dimensions especially in the
area of cultural readiness and change management In this case study conflict arose
between local project management initiatives versus a centralized autocratic global ERP
deployment This highlights the need to encourage the balancing of conflicting
organizational knowledge when contemplating the adoption of e-business solutions [7]
Huigang Liang Yajiong Xue William R Boulton Terry Anthony Byrd (2004) ldquoWhy
Western Vendors donrsquot dominate Chinarsquos ERP Marketrdquo Examined cases of failed ERP
system implementation in China and explaining the unique circumstances These foreign
ERP implementation failures emphasize the need to localize strategies even for the
global ERP leaders The general manager of a foreign ERP vendor explained ldquoOne
should understand nationrsquos history and its culture before one starts doing business with
foreign companiesrdquo The cases of failed implementation suggest global ERP vendors
require more than superior technology and experience Their ERP strategies must also
29
address the cultural differences affecting ERP implementations Strategies need to
overcome problems relating to language reporting formats and content cost control
capabilities frequent business process redesigns effective customer support and capable
consulting partners [69]
In the research findings ldquoAn Agency Theory Model of ERP Implementationrdquo Vedabrata
Basu Albert L Lederer (2004) develop a model of testable propositions for applying
agency theory to study the relationship between implementation consultants and client
organizations deploying the ERP systems and to consequently evaluate how the
relationship affects the implementation success Therefore management needs to know
the factors that drive successful ERP implementation a product of the continuous
interaction between the implementation consultants and client firms Agency theory has
been successfully used by different researchers to explain relationships between two
parties seeking a common outcome This paper develops a conceptual model with the
variables and relationships that may play a critical role in explaining the sources of that
frustration It offers a foundation for research that can extend the applicability of agency
theory can help clients and consultants manage their relationships during the
implementation process and thus help them enhance the probability of ERP systems
implementation success It may also be useful for managing other outsourced IS projects
that have implementation settings similar to ERP [10]
Christian Vogt (2002) ldquoIntractable ERP A Comprehensive Analysis of Failed Enterprise-
Resource ndash Planning Projectsrdquo makes an analysis of possible causes that led to the
disasters for ERP implementation failures and suggests software engineering processes
that help avoiding such outcomes The Model Based Architecting and Software
Engineering (MBASE) guidelines developed by Prof Barry Boehm and Daniel Port at
the Center for Software Engineering (CSE) at USC provide a base for these elaborations
for a long time SW Engineering experts have praised commercial-off-the-shelf (COTS)
packages as the panacea to complex software development Far from it the elaboration
in this survey shows that the deployment of COTS packages may be extremely intrinsic
one does not know whether some COTS software adheres to its interface specifications or
how deficient it is or how well its performance scales up as workload demand grows
The upshot is that COTS software will always be an alien element in the software to be
30
developed and it should be considered that way Dye-in-thendashwool COTS package ERP
systems exhibit plenty of dangers Only if appropriate risk management and enough time
for stepwise employment is provided for ERP system can be tamed [115]
In the research findings ldquoImplementing Best Practices in ERP for Small amp Medium
Enterprisesrdquo Rashmi Jha A K Saini and M N Hoda (2008) provides an interesting
insight into taking ERP implementation as a project and develops problem driven
approach to examine its complex phenomena The implementation process will be
divided into several components which will reflect the nature of ERP projects and makes
them distinctive from other systems design methods This paper also addresses critical
issues relating to developing entrepreneurship for sustainable development of small and
medium size enterprises(SMEs) for its future extensions and added benefits It may also
be useful for managing other outsourced Information System (IS) projects that have
implementation settings similar to ERP [53]
Saumyendu and Maya Daneva (2003) in ldquoLessons Learnt from Five Years of Experience
in ERP Requirements Engineeringrdquo summarizes one companyrsquos five years of experience
in making a generic ERP RE model a live process It rests on previously published ERP
RE process assessment results and reports on what we learnt with particular focus on
typical issues organizations face when adopting a standard model and solutions that can
be used to avoid those issues in the future Each of our lessons is described together with
a RE practice technical foundation for the practice and engineering techniques for the RE
practitioner The lessons were used to refine our Corporate Documentation Model a
process-focused and template-based ERP-architecture framework [40]
In ldquoResearch on Agent-Based Architecture of ERP For Small amp Medium-Size
Enterpriserdquo Rui-Xue Fu Zhan-Hong Xin and Can Chen (2007) suggests that with the
rapid development of information technology and the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward To address these problems a MAERP system architecture has been developed
in which the agents are classified into four types F-Agent for realizing an operation
application C-Agent for coordinating with other agents I-Agent for a communication
31
tool between the user and the MAERP system and T-Agent for performing specific tasks
and data collecting [35]
Xavier Franch and Juan Pablo Carvallo (2003) in the research paper Using Quality
Models in Software Package Selection found that the absence of structured descriptions
of quality features and user quality requirements makes selecting the right software
package difficult The authors propose a methodology for describing the quality features
of domain-specific software packages uniformly and comprehensively using ISOIEC
9126-1 quality standards as a framework [34]
In the paper study ldquoRevisiting ERP Systems Benefit Realizationrdquo Paul Hawking and
Andrew Stein (2004) maintains that many companies initially implemented their ERP
systems to solve Y2K and disparate systems issues These same companies are now
looking at a how to strategically leverages their investment in these systems through the
implementation ldquosecond waverdquo functionality This paper identifies the expected and
actual benefits of ldquosecond waverdquo implementations In addition it identifies barriers which
limit the benefit realization The findings reinforce that ERP implementations are people
focused projects which rely heavily on change management for success [45]
Hamid Nach and Albert Lejeune (2008) ldquoImplementing ERP in SMEs Towards an
Ontology Supporting Managerial Decisionsrdquo state that the purpose of this research
project is to consolidate and formalize as ontology on the basis of an extensive literature
review the key processes and skills required for successful implementation of ERP in an
SME Using the Proteacutegeacute software program the research identified and formalized 395
terms each of which has its own definition Exploitation of this ontology could take
multiple and varied forms including creation of a learning system an on-line cooperation
platform or a project management process mapping tool contributing to successful use of
ERP in SMEs [81]
While Gul Tekin Temur and Sitki Gozlu (2008) ldquoDetermination of Performance Criteria
for ERP Software Technologyrdquo mention that the main goal is to determine the
performance criteria for ERP software technology with respect to their sources Today
the companies are in interaction with many internal and external partners and have to face
many situations in various environments Especially many small and medium sized firms
utilize ERP software technology to plan their business interactions in the chain In this
32
study firstly a literature search is accomplished Then in order to reveal the performance
criteria a large-scale automotive company has been selected to conduct interviews with
managers Also the meeting reports of a few small and medium-sized companies have
been analyzed As a result of the analysis on findings the common views of the firms
about performance criteria are classified into four groups according to their sources such
as people technical managerial and economical The sub factors of these main criteria
are also taken into account in order to point out the origins of the criteria The results of
the study will provide insight to researchers and as well as to professionals in the practice
[108]
Maya Daneva (2004) in ERP Requirements Engineering Practice Lessons Learned
mentioned the fact that organizations implementing Enterprise Resource Planning (ERP)
systems have been increasingly adopting generic off-the-shelf requirements engineering
(RE) process models Yet little information exists about the challenges of making a
generic RE model a life process This article discusses why bringing an off-the-shelf
process in is not a sufficient foundation The author shares experiences acquired over the
past five years of eliciting modeling and validating requirements in ERP projects and
highlights typical issues and their solutions Among the keys to success are planning RE
model use in the clients context and installing processes to support key RE activities [25]
While the article ldquoRescuing Troubled Software Projects by Team Transformation A
Case Study with an ERP Projectrdquo by Kim Man Lui and Keith C C Chan (2008)
differentiates various reasons of ERP project failures It further states that many software
projects fail whether failure is measured in terms of budget schedule or some other
requirement The causes of such failures are many but are not always easily recognized
This is not the least due to the human dimension of corporate activities as spurious or
misdiagnosed issues in Enterprise Resource Planning (ERP) projects can take on a life of
their own and become a magnet for company politics This paper reports an industrial
case in which the senior management attempted to deal with a troubled ERP
implementation (SAP R3) in an international fast moving consumer goods (FMCG)
company during 2001 and 2002 This paper reflects this dimension as it uses original
emails and PowerPoint slides to recount a number of representative episodes in a troubled
but ultimately successful project At the heart of this success is the realization that
33
whereas it can be difficult and time-consuming to do root-cause analyses it is relatively
simple to identify problem owners In this case the senior management without IT
backgrounds turned around a failing project by reorganizing the team structure according
to process areas so that issues in each process area had one problem owner We
summarize the managementrsquos actions into a troubleshooting framework and in addition
suggest three actions for rescuing troubled projects keep the project manager but narrow
down the managerrsquos scope of responsibility to one or two process areas assign the right
people to be responsible for other process areas and have the General Manager chair the
ERP meetings [60]
In the PICMET 2006 Proceedings on ldquoOptimizing the Change Management of Enterprise
Resource Planning Systems Implementationsrdquo Onur Kerimoglu and Nuri BaUogluI
(2006) maintain that although Enterprise Resource Planning (ERP) systems are being
used widely all around the world they also carry out many problems as well as their
benefits These systems are well known for enhancing cross functional efficiency and
effectiveness through the integration of all information flowing throughout an
organization However during different project life cycle stages of ERP systems this
integration may not be provided because of the formulation of incompatibilities which
are greater than the optimum level among different parties like ERP system processes of
the organization and system users Within this study existing incompatibilities between
these parties are modeled respectively In common the model propose that the ERP
product mostly matching with the processes of the organization should be selected
processes of the organization should be changed for being compatible with the ERP
system and system users should be educated new qualified people should be hired etc
for making the system and processes more familiar to people Here the point is that all of
these are done for keeping incompatibilities between the ERP system processes and
people at minimum level because this minimalism will avoid optimization and utilization
problems This study not only handles problems of ERP from a newer perspective but
also provides insight to managers about managing the change and utilizing their resources
efficiently for adopting the ERP software across the organization [59]
Capaldo Guido and Rippa Pierluigi (2008) in ldquoA methodological proposal to assess the
feasibility of ERP Systems Implementation Strategiesrdquo stated that Continuous failures in
34
ERP systems implementation project are today the main challenge in the feasibility of
integrated information systems Failure can be determined by different factors both from
technological side and organizational side if not well managed In this paper we propose
a methodological approach based on technochange management in order to assess the
feasibility of ERP implementation strategy and reduce the risk of failure in terms of
project metrics and early operational metrics A case study in a big Italian
Telecommunication Firm will be presented [19]
ldquoCase Study of PLIVA Pharmaceuticals Inc - Aligning ERP System Implementation
with Business Process Changerdquo is very relevant and contemporary paper presented by
Vesna Bosilj Vuksic and Mario Spremic (2004) The main objective of this paper is to
present the impacts of information technology (IT) and enterprise resource planning
(ERP) systems in business process renovation projects A case study of business process
reengineering project and the implementation of the SAP software solution in PLIVA
(PLIVA pharmaceuticals Inc) are presented [116]
In ldquoKey Factors Driving the Success of Technology Adoption Case Examples of ERP
Adoptionrdquo Chonyacha Suebsin and Nathasit Gerdsri (2009) address the issues that
impact technology adoption within an organization Several factors influencing
technology adoption process are identified from the literature review Case examples of
the adoption of a new management technology Enterprise Resource Planning (ERP) are
presented to illustrate the situations of technology adoption in organizations From the
case examples the factors influencing technology adoption in organizations are
consistent with the factors identified from the literatures The further discussion also
reveals the additional determinants including the clarification of project scope individual
commitment and communication which should be taken into consideration when an
organization adopts a new technology [105]
Maya Daneva (2002) in her paper ldquoUsing Maturity Assessments to Understand the ERP
Requirements Engineering Processrdquo mentions that applying standard requirements
engineering (RE) processes is a major trend in todayrsquos Enterprise Resource Planning
(ERP) software engineering It emerged five years ago with the promise to provide a
mechanism helping ERP project organizations deliver their business requirements timely
and within budget This paper looks in depth at a standard ERP RE process and seeks
35
answers to four questions how well it is defined what are the risks associated with its
application in matureimmature organizations what are the essential practices that
contribute to its success and what are the costs of the process and the quality of the
delivered results The main motivation of this paper is to provide some practical advice
for using assessments to increase project teamsrsquo understanding of the ERP RE process
[26]
Fan JC and Kwoting Fang (2006) ldquoERP Implementation and Information Systems
Success A Test of DeLone and McLeans Modelrdquo present their research that develops
and tests a theoretical extension of DeLone and McLeans model of information system
(IS) success which explains personnel belief that contributes to users utilization of ERP
(enterprise resource planning) systems The extended model is tested using the structural
equation model (SEM) a survey of 202 end-users from ten Taiwanese enterprises that
has implemented Data Systems workflow ERP systems is conducted The theoretical
model proposed in this study provides insight into how the concept of useful perception is
incorporated into DeLone and McLean model and plays a critical mediated role to
influence system usage and its associated satisfaction The implications of these findings
for researchers and practitioners are discussed [32]
In the research findings ldquoManaging ERP Implementation Failure A Project Management
Perspectiverdquo Charlie C Chen Chuck C H Law and Samuel C Yang (2008) stated that
Information Technology (IT) projects are susceptible to changes in the business
environment and the increasing velocity of change in global business is challenging the
management of enterprise systems such as enterprise resource planning (ERP) At the
same time system success depends on the rigor of the project management processes
Scope creep poor risk management inadequate allocation of human resources over time
and vendor management are some common problems associated with the implementation
of an enterprise system These issues pose threats to the success of a large-scale software
project such as ERP This research adopts a case study approach to examine how poor
project management can imperil the implementation of an ERP system Having learned
the lessons from the failure of its first ERP implementation the company in this case
reengineered its project management practices to successfully carry out its second ERP
implementation Many critical project management factors contributed to the failure and
36
success of this companyrsquos ERP system This study explores and identifies critical
elements of project management that contributed to the success of the second ERP
implementation For those organizations adopting ERP the findings provide a roadmap
to follow in order to avoid making critical but often underestimated project management
mistakes [21]
Rafa Kouki Robert Pellerin and Diane Poulin (2008) in An Exploratory Study of ERP
Assimilation in Developing Countries The Case of Three Tunisian Companies assessed
that ERP systems could be considered as the most difficult systems to be assimilated
Very little research however has been realised to investigate the determinants of success
of the ERP assimilation process There has been also a dearth in research about ERP
projects in general and ERP post-implementation and assimilation in particular in
developing countries Using a case study methodology grounded in the diffusion of
innovation theory this study tries to understand the factors that could improve or
challenge the ERP systems assimilation process in three Tunisian companies Our
findings highlighted the importance of several factors such as top management support
strategic alignment IT expertise training communication organizational culture and
coercive pressures [62]
Ian Sommerville (2008) Construction by Configuration Challenges for Software
Engineering Research and Practice observed that past ten years have seen a radical shift
in business application software development Rather than developing software from
scratch using a conventional programming language the majority of commercial
software is now developed through reuse ndash the adaptation and configuration of existing
software systems to meet specific organizational requirements The most widespread
form of reuse is through the use of generic systems such as ERP and COTS systems that
are configured to meet specific organizational requirements In this paper he discussed
the implications of software construction by configuration (CbC) for software
engineering Based on his experience with systems for medical records and university
administration he highlighted some of the issues and problems that can arise in
construction by configuration he discussed problems that arise in CbC projects and
identify a number of challenges for research and practice to improve this approach to
software engineering [104]
37
SV Deshmukh and RR Lakhe (2008) in the research paper ldquoSix Sigma ndash An Innovative
Approach for Waste Reduction A Case Study of an Indian SMErdquo present a case study
aimed at reducing waste at an SME engaged in manufacturing of corrugated boxes The
Define Measure Analyze Improve Control strategy of Six Sigma methodology was
followed to identify probable causes for wastages After studying the system and
implementation of six sigma tools an overall 227 waste reduction was achieved
Individually out of a total seven processes 5 showed waste reduction in excess of 40
This reduction was statistically significant at Plt005 The study confirmed successful
implementation of six sigma to minimize waste generation and in terms saving in
manufacturing costs or increasing the bottom line [29]
While in ldquoERP Implementation Critical Success Factors - The Role and Impact of
Business Process Managementrdquo Yasar F Jarrar Abdullah Al-Mudimigh and Mohamed
Zairi (2000) investigate the role and impact of business process management in
successful ERP implementation The paper starts by defining business process
management ERP and the ERP critical success factors The impact of business process
management on successful ERP implementation is then assessed through looking at the
experiences of several organizations The paper concludes by highlighting best practices
for capitalizing on business process management for successful ERP implementation
[52]
M S Camara L Kermad and A El Mhamedi (2006) in the paper ldquoRisk Prediction in
ERP Projects Classification of Reengineered Business Processesrdquo maintain that
Companies have been implementing ERPs for almost ten years now and more the same
implementation problems continue to occur More and more ERP projectrsquos technological
challenges are accompanied by critical dimensions related to the management of the
transformational effects of these projects on the organization Indeed risk management in
this kind of project is not very structured and misses specific methods In this article they
propose a structured methodology for risk management particularly in the BPR (Business
Process Reengineering) sub-project of ERP implementation The final aim of our work is
to decease appreciably resistance to organizational change which poses the greatest
obstacle to business process reengineering efforts They propose to adapt OSR (Optimal
Set Reduction) a risk management method used in software development for the risk
38
management in ERP implementation They address specially the risk related to the
changes in enterprise processes in the ERP project To achieve this objective they
propose to define business process change metrics starting from business process
complexity metrics that exist in the literature [18]
ldquoExploration and Verification of Factors in the Front-end Stage of the ERP
Implementation Process Evidence from Case Study and Survey Researchrdquo Kun Shi and
Qiang Lu (2009) depict that ERP (Enterprise Resources Planning) is widely used to
improve business performance This paper explores how the factors associated with the
Front-end ERP Implementation Process (FEIP) affect the implementation outcome First
based on literature review a preliminary framework with 12 hypotheses is developed
Then Grounded Theory is applied for a case study to further extract and verify the factors
and sub-factors These factors are finally identified as strategic planning corporate
culture user characteristics organization-process-system maturity external expertise
engagementsupport and project preparation Furthermore the significance and
correlation of all the factors are detected by conducting survey research with SPSS as a
tool for analysis The study shows that the framework is valid and that among six three
factors have strong impact on the ERP implementation result whereas others are less
influential Implication is given and limitation is indicated at the end [63]
Huo Lingyu Liu Bingwu and Li Juntao (2009) in the paper ldquoAn ERP System Selection
Model Based on Fuzzy Grey TOPSIS for SMEsrdquo present a new fuzzy multi-criteria
decision making (FMCDM) approach which integrates the technique for order preference
by the similarity to ideal solution (TOPSIS) grey relation and fuzzy set theory for
enterprise resource planning (ERP) system evaluation and selection in the Small and
Medium-Sized Enterprises (SMEs) In this study the characteristic of the alternative with
respect to the criteria are represented in terms of a linguistic term set and the weight of
the criteria is described by triangular fuzzy numbers respectively According to the grey
theory and fuzzy set theory a closeness coefficient is defined to determine the ranking
order of all alternatives by calculating the grade of grey relation to the fuzzy positive-
ideal solution (FPIS) and fuzzy negative-ideal solution (FNIS) simultaneously Finally
an example is shown to highlight the procedure of the proposed method [48]
39
Gao Juntao Zhang Li Wang Zhiyao (2008) summarized their findings in ldquoDecision
Support for Handling Gaps between ERP functionalities and Organizational Needs A
Goal Reasoning based approachrdquo They found that in the process of selecting
commercial off-the-shelf (COTS) ERP systems it is inevitable to encounter gaps between
ERP software and organizational needs Gaps occur when COTS attributes do not exactly
match organizational needs and they make organizational users and software vendors in
the dilemma whether to adapt as-is business processes or to customize software
packages A decision support method for handling gaps is proposed in this paper Firstly
organizational goal-process models are built as the base for decision making Secondly
the idea of evidence theory is introduced into goal reasoning and a quantified algorithm is
proposed to evaluate the impacts of different business processes on high level goals
which are critical to make decision At last the risk is discussed to rank intervals which
specify the expected utilization of business processes [56]
Yvonne Dittrich and Sebastien Vaucouleur (2009) conducted a research on the topicrdquo
ERP Customization as Software Engineering Knowledge Sharing and Cooperationrdquo and
argue that Enterprise resource planning (ERP) systems must be configured and
customized to fit a specific company The authors discuss cooperation with regard to ERP
systems customization Enterprise resource planning (ERP) vendors provide multiple
configuration possibilities ranging from module selection to master data provision to
steer access rights for different users These configuration possibilities cover anticipated
variability If the customer requires adaptation beyond whatrsquos anticipated the source
code of the product must be adapted Customizations in this articlersquos context are source-
code-based adaptations of software products The size and complexity of customizations
range from simple report generation to developing independent add-ons that support
specific businessesmdashfor example solutions for flight carriers The size and lead time of
such projects can compare to a full-size software development project They present
empirical research on customization practices of ERP systems as an example of software
development based on customization of standard software They compared customization
with other development practices that are based on integrating existing code and results
underlined the need to rethink software engineering and programming methods and tools
[129]
40
In the paper study ldquoSignificance of Software Metrics in ERP Projectsrdquo S Parthasarathy
and N Anbazhagan (2006) narrate that ERP projects are a subclass of software projects
often accompanied by large-scale organizational changes One of the major reasons found
in the literature for the failure of ERP projects is the poor management of software
processes In this paper we propose a Software Metrics Plan (SNP) containing different
software metrics to manage software processes during ERP implementation Two
hypotheses have been formulated and tested using statistical techniques to validate the
SNP The statistical analysis of the collected data from an ERP project supports the two
hypotheses leading to the conclusion that the software metrics are momentous in ERP
projects [84]
Antony Marsh (2000) in the article ldquoThe implementation of Enterprise Resource Planning
systems in small and medium Manufacturing enterprises in south-east Queensland a case
study approachrdquo examines the implementation of ERP systems in smallmedium-sized
enterprises in South East Queensland Australia Nine case studies were conducted to
determine factors for success or failure in the implementations Key success factors
identified included cross-functional team approaches organizational experience of
similar scale IT or organizational change projects and lsquodeeprsquo understanding of the key
issues relating to ERP implementations Failure factors identified included top-down or
consultant driven implementations IT department driven implementations or
implementations where the EFV is seen as a quick technological fix to problems within
the operation of the firm rather than as a strategic investment [78]
Christian Doumlrner Sebastian Draxler Volkmar Pipek and Volker Wulf (2009) through
their study ldquoEnd Users at the Bazaar Designing Next-Generation Enterprise Resource
Planning Systemsrdquo propose that the bazaar metaphor has developed a lasting
popularity in software engineering especially as software architectures have evolved
from monoliths to service orientation Nevertheless the metaphor is limited because it
doesnt consider end users those who develop software for themselves Introducing such
an end user the prosumer to the bazaar not only suggests a changing division of work
in software development but also calls for different functionality and architectural
choices The authors evaluated changing software architectures from an end-user
development (EUD) perspective taking the case of enterprise resource planning (ERP)
41
systems as traditionally monolithically designed systems moving toward service
orientation On the basis of the studys findings which indicated problems with the
systems technical flexibility the authors developed a tool set for fostering EUD
activities Their new architecture for ERP systems enables end users to create their own
solutions [31]
Kenny KF Lee (2000) in ldquoThe Five Disciplines of ERP Software Implementationrdquo has
identified the critical factors in businesses which learn grow and succeed This paper
applies the central concepts of the book its five disciplines to the software business
specifically the management of software implementation Using the learning challenge
posed by the organization-wide implementation of Enterprise Resource Systems (Em) the
paper covers how EM software project leaders may manage themselves their teams
business vision and corporate culture and team members to create a survival machine
which can thrive in the current economic and technological climate [67]
Piet MA Ribbers amp Schoo (2000) in his paper ldquoDesigning Complex Software
Implementation Programsrdquo raises a central question that how one can design of Program
Management contributes to the success of complex software implementations
Incomplete goal specifications lack of communication and underestimation of project
complexity are signs of insufficient program and project management To avoid these
pitfalls he proposes ways that have worked well in recent complex multi-project ERP
implementations (programs) Answering the above question raises the problem of
adequately defining and measuring the level of complexity of an implementation
program A conceptual model was developed which identifies program management
factors that are proposed to have an impact on implementation success Fifteen cases
were studied to find support for the proposed framework [88]
ldquoDetecting Gaps between ERP Software and Organizational Needs A Semantic
Similarity Based Approachrdquo is very relevant and contemporary paper presented by Gao
Juntao and Zhang Li (2008) It depicts that Gap analysis is one of the most important
phases in implementation of enterprise resource planning (ERP) system In this paper an
approach is proposed to automatically detect gaps between software capacities and
organizational needs based on semantic similarity computation The approach takes two
business process models as input and one specifies software capacities and the other
42
describes organizational needs The output of it is a report of gaps As a matter of fact
the differences between application domain and software discipline make semantic
heterogeneity a key problem in gap detection therefore the technologies of semantic
similarity computing are employed to resolve ambiguity issues caused by the use of
synonyms or homonyms In particular the idea of similarity propagation is introduced to
pick out a mapping between corresponding activities and data and Hungarian algorithm
is employed to reduce its time complexity Then the similarity of whole models is
measured according to the minimal total cost of change operations Finally an
experiment is given to evaluate the method [36]
In the research publication ldquoERP System Adoption - Does the Size Matterrdquo Sanna
Laukkanen Sami Sarpola and Petri Hallikainen (2005) investigate the relationship of
enterprise size to the constraints and objectives of ERP systems adoption The survey
data based on the responses of 44 companies indicates that significant differences exist
between small medium-sized and large enterprises in ERP system adoption Specifically
the findings suggest that small companies experience more knowledge constraints than
their larger counterparts in ERP adoption Further while being the most prevalent
objective for ERP adoption in all the company groups business development through
ERP adoption is considered especially important by the medium-sized and large
enterprises Finally the findings of the study suggest that instead of considering small
and medium-sized enterprises as one homogenous group the differences between these
two groups of companies should be acknowledged in the future research [65]
In their paper ldquoModel Based on CSCWrdquo Wedian Liang XuFen Zhenkun Li Rong Xiao
JunFeng Hu (2005) summarise their finding They feel that Software testing is an
important component of the software engineering and an important link that the software
development quality is guaranteed Using the reasonable model for software testing can
reduce the expenses of testing in the developing activity in the course of testing thus cut
down the cost of software development In this paper we put forward a model for
software testing bused on CSCW technology that run through each stages of software
development cycle If can find the mistake in the software as soon as possible has
shorten the time taken for testing in the course of the development of software testing
43
effectively Finally we applied the model to the testing project which develops ERP
system and then receive the ideal result [118]
In their paper ldquoThe Research and Development of IMIS for Small and Medium-sized
Printing Enterpriserdquo Taolin Ma Xiaoming Chen Yansong Sun Xiurong Li (2009)
analyzed the fact that the basic management thought of inventory management
information system (IMIS) was established by analyzing the inventory management
theory of modern enterprise In this system which using the architecture of CS the stores
were classified by ABC management method the inventory control was completed by
setting up the safety stock and the largest stock the analysis and design of IMIS were
finished This IMIS was developed to meet the practical requirements of small and
medium-sized printing enterprise in our country It can not only be used as the important
measure of the informationized construction for small and medium sized printing
enterprise but also used as a subsystem of enterprise ERP system IMIS could improve
enterprise management level realize rapid transformation of enterprise and finally
enhance the competitiveness of enterprise in market economy [106]
Jiangao Deng and Yijie Bian (2008) in the research paper ldquoConstructing a Risk
Management Mechanism Model of ERP Projectrdquo mention that in the process of
information project implementation of manufacturing enterprises there are many risks to
set up a set of risk management mechanism is guaranteed for them to succeed in ERP
implementation Firstly based on the analysis of ERP project implementation of China
the paper introduced the risk management methodology systems and the relative model
which includes three main steps identifying risk evaluating risk and controlling risk
After that on the aspects of decision implementation and application stages of
manufacturing ERP project life cycle the paper discussed risks of each stage and put
forward a two-dimension matrix risk management strategy Then a mechanism model of
ERP project risk management is constructed which shows that information risk control
strategies of the last two stages not only depend on resources of these stages but also
have a diverse relationship with the last stage Finally according to the successful
implementation of an enterprisersquos ERP project the paper carried out an effective case
application analysis of risk management mechanism model The lack of improvement in
usersrsquo ERP skill levels and the shortage in documenting the rationale for business rules
44
and configuration decisions were among the critical issues of the post-implementation
stage Indeed all of their respondents stressed the importance of refreshing the usersrsquo
knowledge about the system [28]
Saumyendu Ghosh (2003) in ldquoGlobal Implementation of ERP Software ndash Critical Success
Factors on Upgrading Technical Infrastructurerdquo discusses that implementing an
Enterprise Resource planning (ERP) software in a global environment executive
sponsors face two key challenges While business processes are to be re-engineered to
align with the ERP software best practices technical architecture and infrastructure needs
to be in place globally as per specifications of the packaged software In the legacy
environment different countries or different business units use different systems based
on local standards supported by local resources In the new ERP world globally all the
countries must conform to same technical infrastructure Technical managers face
multiple critical issues implementing a global solution Most of the ERP software is
developed in technically advanced countries standards are often too high for under
developed or developing countries In an effort to bring the global organization to a
common platform different countries need different levels of upgrades In this paper the
authors review key technical issues faced is a global upgrade process to support a global
ERP implementation and how to resolve those We conclude although technical
infrastructure and business process reengineering both are equally important and each
implementation is unique but following some simple steps it is easy to prioritize each
ones during different phases of the project Also time lines of two sub-projects must
converge after initial phase and must follow a common plan for the project to be
successful Multiple scenarios are described to facilitate the process He concludes
although technical infrastructure and business process reengineering both are equally
important and each implementation is unique but following some simple steps it is easy
to prioritize each ones during different phases of the project Also time lines of two
subprojects must converge after initial phase and must follow a common plan for the
project to be successful Multiple scenarios are described to facilitate the process [38]
Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008) ldquoDevelopment and
Implementation of ERPCRM System Based on Open Source Software to Small and
Medium-sized Enterprise in Chinardquo analysed the fact that E-commerce and the
45
development of modern enterprise management raise a number of challenges in the
process of informatization of small and medium-sized enterprises (SME) in china To
address this they present an approach in which the informatization is enhanced by using
Open Source Software with customized policies We analyses the main
informationization obstacles of SME in china bring forward that the lack of bankroll
talents cost and management etc are the key problems to informationization of SME
Furthermore they have developed a textile foreign trade ERP CRM system based on
Open Source Software for the local textile distributor of china integrating financial
distribution sales and service processes given the implement method of overall planning
step-by-step implementation key breakthrough and efficiency guiding In the end we
compare the typical Open Source Software and traditional commercial software point
out the advantages of informatization based Open Source Software to SME in china and
the development trend of Open Source Software for enterprise application [132]
ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information Systems ndash a
Multi-disciplinary Method for ERP System Requirements Engineeringrdquo by Inka Vilpola
Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that ERP systems are in
most cases off-the-shelf software packages and large by their size and complex by their
structure Small and medium-sized enterprises (SMEs) require flexibility of the ERP
system because of their individual operational processes Therefore it is crucial to select
and implement an ERP system that fits the requirements of the intended target processes
To support the requirements engineering of ERP systems we have developed Customer-
Centered ERP Implementation (C-CEI) method The method introduces a multi-
disciplinary approach to the ERP project and provides in-depth understanding of the
companylsquos processes and context of use Using C-CEI method decreases the risk of
SMEs to select an inappropriate system and improves the system acceptance by the
customer companyrsquos employees In this paper we present the method and illustrate it by
three SME case studies [114]
Saumyendu Ghosh (2000) in ldquoChallenges on a global implementation of ERP softwarerdquo
discusses that some of the unique challenges in ERP implementation are satisfying
multiple countries statutory requirements and reporting to the corporate head quarters
from one installation of the software conflicting interests between different business
46
entities lack of experienced implementators in all the countries and eminent users of
multinational advantages He discusses different aspects of these challenges in detail and
point out that ERP software can provide only one solution for a particular business
process unless workarounds are available from experienced implementation Different
counties adopt different reporting and accounting practices and therefore an ERP
implementation cannot solve all problems that global corporation may have multiple
countries in the scope of the project due to absence of standard global processes across
the organization He concludes that the most important critical success factor of these
international implementations are how quickly these corporations can reengineer existing
business process to adopt best practices of using an ERP system [38]
Dong Cheng Feiyan Deng Hongtao Li (2006) ldquoCritical Factors for Successful
Implementation of ERP in Chinardquo in their study propound a theoretical model for
successful implementation of Enterprise Resource Planning (ERP) under Chinarsquos
environment and the authors analyze the model empirically through structural equation
modeling The authors find that strategically IT planning abilities leadershiprsquos support
and the skills of IT section business processing abilities learning abilities and change
management abilities has a significant positive impact on successful ERP implementation
[22]
Parijat Upadhyay (2008) in his research studies ldquoAn explorative study to identify the
Critical Success Factors for ERP Implementation in Indian small and medium scale
enterprisesrdquo explores the existing literature on ERP implementation issues in context to
small and medium scale enterprises and attempts a compilation of the factors that assume
great significance while implementing ERP in SMErsquos Given the nature and magnitude of
the problems in encountered in implementing an ERP project this study would attempt to
identify the critical success factors(CSFrsquos) for a successful implementation of an ERP
project since it calls for substantial effort on the part of all the stake holders involved to
make the implementation a success [111]
ldquoThe ERP Implementation of SME in Chinardquo Yuanqiang Xia Peter Lok and Song Yang
(2009) presented the fact that ERP implementing for small and middle size enterprise
(SME) is different from the large one Based on the analysis on the character of ERP
marketing and SMEs of China 6 critical success factors are recommended The research
47
suggests that the top management support is most important to ERP implement in SME
of China in which paternalism prevails Database of management and capital are main
obstacles ERP 1 or ERP 2 fits to demand of SME high power project team has
tremendous significance in the situation of absence of IT engineer for SME education
and training is helpful to successfully ERP implementing The results service as better
understanding the ERP implementation of SME in China and gaining the good
performance of ERP implementation [126]
Yan Xu and Chung-Hsing Yeh (2009) in the article ldquoStrategic Management of
Performance Measures for an ERP Implementation Project Teamrdquo present a new
evaluation model for managing performance measures of an enterprise resource planning
(ERP) implementation project team in an organization With the performance measures
classified into four strategic perspectives of the balanced scorecard the evaluation model
enables the goal alignment between the project team and the organization A new
algorithm using the concept of multi-attribute decision making is developed to obtain the
relative importance value for each performance measure for its contribution to the
strategic goals of the organization The higher the importance values of a performance
measure the more important the role it plays in determining the responsibilities of the
corresponding project team player Understanding the importance of the key performance
measures will help an organization well-prepare to launch a project and have the project
being organized in advance A case of an ERP implementation project in an integrated
manufacturing corporation is presented to demonstrate the applicability of the evaluation
model and its effective management of the performance measures [124]
Zhang Yanhong (2009) in his research paper ldquoERP Implementation Process Analysis
Based on the Key Success Factorsrdquo describes that Enterprise Resource Planning (ERP) is
an amalgamation of a companys information systems designed to bind more closely a
variety of company functions including human resources inventories and financials
while simultaneously linking the company to customers and vendors This thesis is based
on the theory of product life cycle and the process of ERP is divided into four phase
planning implementation stabilization and improvement Critical success factors in each
phase are identified by paper research case study and investigation An ERP
implementation process model based on the critical Success factors (CSFs) is proposed in
48
the paper The thesis analyzes the global planning stages and business process rebuilding
in the process of QIHE pharmaceuticals ERP Improvement on management and
financing before and after ERP implementation are contrasted and we come to the
following conclusions (1) The CSFs in the planning phase is comprehensive
investigation and evaluation (2) The CSFs in the implementation phase is effective
project management team (3) The CSFs in the stabilization phase is appropriate
information management system (4) The CSFs in the improvement phase is change on
demand and continue to innovate (5) The CSFs throughout the product life cycle is
business process rebuilding [131]
Van Stijn E and Wensley A (2001) ldquoOrganizational memory and the completeness of
process modeling in ERP systems some concerns methods and directions for future
researchrdquo mentioned that Enterprise resource planning (ERP) systems not only have a
broad functional scope promising to support many different business processes they also
embed many different aspects of the companyrsquos organizational memory Disparities can
exist between those memory contents in the ERP system and related contents in other
memory media such as individualsrsquo memories and the organizational structure and
culture It is our contention that in general these disparities or memory mismatches as
we will refer to them lead to under-performance of ERP systems In this paper they focus
on potential memory mismatches that may arise with respect to the embedding of process
knowledge within ERP packages Packages such as SAP provide a varied and rich
environment for process modeling However they suspect that there are still many
instances where process knowledge is either lost or represented in different ways in
different parts of the organization The overall thrust of the paper is to identify a variety
of concerns intriguing questions and avenues for future research [112]
Eric Kimberling (2008) in his article ldquo The Role of Lean Six Sigma in ERPrdquo insisted
that there are a number of things to consider when considering a new ERP system like six
sigma lean manufacturing or other business transformation projects that has the capacity
to measure reducing waste managing change well continuous improvement etc [133]
William H Gaw (2010) ldquoEight Basics of Lean Six Sigma for Manufacturing Firmsrdquo In
the efforts to draw closer to customers many manufacturers have lost focus on what
should be a companyrsquos primary success factor ndash profitable growth In todayrsquos competitive
49
manufacturing environment it takes more than quick fixes outsourcing and downsizing
for companies to consistently achieve their growth and profit objectives While these
options may yield temporary financial relief they will not lead the way to long-term
growth and profitability For companies to grow and consistently exceed bottom line
expectations they need to get lean And to get lean they should master eight basics of
Lean Six Sigma in the form of information integrity performance measurement
sequential production point-of-use logistic cycle time management production linearity
and resource planning and customer satisfaction [134]
Brehm L and Markus M L (2000) in The Divided Software Life Cycle of ERP
Packages mentioned that traditional information system life cycle (SLC) focuses on the
activities performed by company developing implementing and maintaining software for
its own internal use Enterprise resource planning (ERP) software packages change the
SLC in several important ways This paper presents an extension of the SLC model for
ERP packages The lsquodivided software life cyclersquo (DSLC) model features an equal
emphasis on the activities performed by the ERP adopting company and the ERP vendor
[15]
Alavi M and Carlson P (1992) A Review of MIS research and disciplinary
development The perceived status of journals in which MIS research is published is an
important issue to academics The number of IS-related journals has increased through
the years yet it is not obvious which are the ldquoleadingrdquo journals or what criteria should be
used to determine this This article addresses these issues by (1) evaluating and
analyzing previous studies in which MIS related journals have been ranked (2)
determining top-ranked journals and placing them into two levels or tiers based on
previous studies and (3) establishing a profile through a systematic analysis of the nine
journals in the first tier This study identified 17 highly ranked journals for publication
Nine were placed in the first tier and eight in the second tier In addition to IS-specific
journals publications included management science computer science and business-
oriented journals The individual strategies for improving software productivity are
identified Issues related to software costs and controlling them are examined and
discussed It is pointed out that a good framework of techniques exists for controlling
software budgets schedules and work completed but that a great deal of further progress
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 4
15
relationship management knowledge management and supply chain planning It has
shown that the organizations follow an S-shaped curve and that most companies are in
the middle stage An analysis of the implications for organizations at each stage of the
maturity model has presented which will be of value to practicing managers The
implications are categorized as impacts on cost entropy complexity flexibility and
strategic competitiveness They made a contribution to the academic literature is to relate
a well established theory to contemporary developments in ERP systems It also
identifies areas for future research notably technical issues associated with connecting
ERP systems with other specialized package software and competitive issues concerned
with gaining competitive advantage from standard systems and speed of implementation
[47]
In ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola Kaisa
Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for smooth
and strategic implementation of ERP They further say ERP systems are commercial-off-
the-shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes It is not always possible
to assign the time of the companyrsquos key personnel to multidisciplinary activities of
Contextual Design In addition conducting Contextual Inquiries (CIs) with long serving
employees can often result in data with a highly personalized perspective Even though
ERP systems as such cannot be designed from scratch the application of CD ensures that
the user tasks UI (User Interface) modifications made by configuring the ERP system as
well as changes in the context can all be designed according to UCD (User Case design)
principles Introducing user-centeredness in ERP implementation improves the
implementation process and leads to the success of the contextual change A companyrsquos
efficiency and productivity depend on how fast and completely the organization adopts
the new ERP system [113]
A N Parr amp Dr G Shanks (2000) in the article ldquoA Taxonomy of ERP Implementation
Approachesrdquo argue that the concept of an ERP implementation is not a generic concept
16
and present taxonomy of ERP implementation in three archetypal categories ie
Comprehensive Middle-Road and Vanilla The rationale for implementation varies
between companies and provides an indicator of the type of implementation envisaged
The characteristics of each category are Physical Scope the BPR Scope Technical
Scope Module Implementation Strategy and Resource Allocation Combinations of these
characteristics serve to place an implementation within one of the categories The CEO
can see straightforwardly some of the consequences of implementation decisions by
understanding the taxonomy and the choices it highlights In this way the taxonomy can
be used to structure discussions about ERP implementation and make the decision
making process more systematic The aim of the taxonomy is to provide non-technical
managers with an effective framework early in the process to comprehend the
dimensions and implications of the enterprise This may then help to reduce the budget
and time blowouts [83]
Wayne Brown (2004) in his research paper ldquoEnterprise Resource Planning (ERP)
Implementation Planning and Structure A Recipe for ERP Successrdquo conducted a brief
review of the literature on attributes and structure that help in making ERP
implementation successful The project management structure and process used at Heald
College was compared to this ERP implementation literature The author discusses this
structure and the processes used to control project costs limit customizations control
scope involve executive management deliver documentation and training communicate
with the institution and manage change The author concludes with a lesson that
communication and change management are very important pieces of the implementation
puzzle [17]
Ali Haj Bakry amp Saad Haj Bakry (2005) through their study on ldquoEnterprise resource
planning a review and a STOPE viewrdquo provides a comprehensive understanding of ERP
systems including illustrating their main components and clarifying their basic and
extended features The ERP review presented here has started with the ERP principles
and moved forward toward the market state selection criteria implementation factors
current and future development and stopped at integrating the various ERP issues into
the STOPE framework (strategy technology organizationndashenterprise people
environment) which illustrates the integration of ERP systems with the overall enterprise
17
network The research illustrated that ERP systems are distinguished for their e-business
support integration approach flexible modular architecture and openness for horizontal
accommodation of wider scope of tasks and for vertical building of sophistication and
intelligence The ERP systems are open for further improvement through research and
development and for more experience through practical implementation and operation
[9]
In the article ldquoEnterprise Resource Planning A Business Approach to System
Developmentrdquo Nicola Gibson Christopher P Holland amp Ben Light (1999) of
Manchester Business School argue that system development is now entering a new phase
of maturity with the advent of Enterprise Resource Planning (ERP) software packages
From case study research it is shown that ERP implementations have different types of
problems compared with traditional software development methods These centre on the
alignment of business processes with the standard software package and the project
management of the implementation process They concluded that ERP is a departure
from traditional approaches to system development It therefore requires a different
approach that places less emphasis on the technical aspects of software development and
instead seeks to balance the business process design software configuration and project
management aspects of IT implementation with the overall strategy and structure of the
firm [41]
In Proceedings of the 36th Hawaii International Conference on System Sciences Celeste
See Pui Ng Guy Gable amp Taizan Chan (2003) of Queensland University of Technology
Australia presented their research paper ldquoAn ERP Maintenance Modelrdquo In order to
bridge this gap in literature and practice they propose a preliminary ERP maintenance
model reflecting fundamental ERP maintenance and upgrade activities A detailed case
study was conducted to gather empirical data for developing such an ERP maintenance
model Data gathered from the interviews relating to (i) maintenance preparation and
initial planning (ii) maintenance procedures and (iii) upgrade process are used to map
out Government Agencyrsquos (GA in the Australian state of Queensland) implicit
maintenance model ndash maintenance preparation maintenance procedure and software
upgrade stages respectively Data collected from the databases associated with request
type staff involved and maintenance activities are used to map out the maintenance
18
procedure stage whereas information from the upgrade business case and upgrade
planning resources documentation are used for mapping out the software replacement
stage of GArsquos maintenance model Data analysis identified potential benefits of the
maintenance model to ERP-using organizations generally and to the case firm in
particular with the primary business objectives This study provides practitioners with
guidelines on planning implementing and upgrading an ERP [86]
Yao Yurong amp He Houcun (2000) in the article ldquoData Warehousing and the Internetrsquos
impact on ERPrdquo examines the advances in data warehousing and internet technology
spurring ERP development As per their findings these systems still needed some
improvements To keep pace ERP systems themselves have undergone considerable
change in the past 10 years Thus in making the right ERP choices itrsquos helpful to know
how two key technologiesmdashdata warehousing and the Inter-netmdashare transforming these
complex systems SAP a leading ERP company introduced the business warehouse as a
complement to its R3 application suite Oracle a SAP competitor also sells its own
solutions Action (an activity-based management system) Balanced Scorecard (a
business performance management package acquired from Graphical Information Inc)
sales analyzer and warehouse analyzer So Oracle has also concluded that the
combination of data warehousing and ERP is an effective solution for counteracting the
drawbacks of the two systems [127]
In the research publication ldquoMatching ERP System Functionality to Customer
Requirementsrdquo Colette Rolland amp Naveen Prakash (2001) propose an approach for
matching ERP system functionality to customer requirements The assumption made was
that the ERP system postulates a set of requirements that are worth eliciting from the
ERP documentation as abstractions of the ERP system functionality Then the
requirements engineering process is a process that matches the ERP set of requirements
against organizational ones The paper presents the Map representation system and the
matching process The process is illustrated by considering the Treasury module of SAP
and its installation in the financial management of a cultural exchanges unit
Conclusively one can successfully expect to lay down such generic maps for capturing
change strategies for companies moving from single to multi customer oriented services
[91]
19
In ldquoEnterprise Resource Planning (ERP) ndash Breakthrough or Buzzwordrdquo A Fitzgerald
(1992) suggests that to understand the structure of the ERP manufacturing solutions one
must examine both the technology underlying these systems together with the
environments and functionality required Finally to make the lsquobusiness casersquo for such
systems we must focus on the benefits that can be achieved by using ERP systems [33]
In the proceeding of 34th
Hawaii International conference on System sciences an
important article on CSFs in ERP ldquoThe Impact of Critical Success Factors across the
Stages of Enterprise Resource Planning Implementationsrdquo by Toni M Somers amp Klara
Nelson (2001) was published This paper describes the impact of Critical Success Factors
(CSFs) across the stages of Enterprise Resource Planning (ERP) implementations using
the responses from 86 organizations that completed or are in the process of completing an
ERP implementation This research not only identified which CSFs are most critical in
ERP implementations but also determined which factors are temporal ie significant in
the implementation process for a particular period in time That information can now be
used to identify anticipate and allocate time and resources across those factors that need
attending to for effective project monitoring It also provides an understanding of the
factors and their importance throughout the various phases of implementation which in
turn can serve as a useful guide for firms in the process of implementing an ERP system
[103]
In the proceeding of 34th
Hawaii International conference on System sciences IEEE 2001
ldquoTailoring ERP systems A spectrum of choices and their implicationsrdquo Lars Brehm amp
Armin Heinzl M Lynne Markus (2001) depict that the IS literature distinguishes between
custom-built and off-the-shelf software Enterprise resource planning (ERP) packages are
often viewed as off-the-shelf software because adopters implement them by setting
parameters (called configuration) rather than by traditional programming Making
changes to ERP software code (called modification) is usually strongly discouraged by
vendors and implementation consultants Nevertheless field research has shown that
many companies have had to modify ERP software in various ways to meet essential
business needs In this paper they describe a portfolio of tailoring options between
configuration and modification with important implications for implementation risk and
the difficulty of ERP system upgrades but with companyrsquos advantages [16]
20
Babak Akhgar Jawed Siddiqi and Samir Al-Khayatt (2002) summarized their findings in
the article ldquoStrategic exploitation of ERP for e-businessrdquo for the Proceedings of the
International Conference on Information technology Coding and Computing (ITCCrsquo02)
This paper based on research from an ongoing IS investigation project at a large
multinational company examines the relationship between ERP amp E-business The paper
discusses different scenarios of ERP implementation status that organizations may find
themselves It examines the components of e-business success namely visibility of
information processes and technology that will be either enabled or restricted by ERP
What transpires from this research is that for many start-ups e-business becomes
synonymous with business in general Ultimately they conclude that e-business should
form part of the corporate strategy and that IS or IT strategy should form the basis for
determining ERP implementation structures thereby ensuring e-business requirements
become the platform for ERP [2]
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther G Chattopadhyay (2004) The paper
presents research on ERP system characteristics particularly relevant for Small to
Medium Enterprises (SME) Authors investigated the duration of the project phases to
establish the human resource requirements through the selection implementation and
support of the ERP project Common factors that are crucial for an SME in the
manufacturing sector embarking on an ERP system are identified in this paper for system
selection and implementation User survey was carried out for a target group of SME
companies around Brisbane Australia The survey captured both qualitative and
quantitative data relating to the ERP system in place at a target group of electrical and
electronic equipment manufacturing companies located in South East Queensland
Australia Quantitative analysis was carried out on the cost of the ERP selection and
implementation project both in terms of capital outlay and human resources [87]
Reported implementations recognized the benefits of aligning business processes with a
target ERP system in the period prior to the go-live and authors summarize following
points
ERP system as a business tool for growth of SME
21
Critical selection factors unique and realized benefits different for each business
SME having limited resources (money people time) with which to evaluate and
implement ERP
Ongoing costs
Overall success
In the paper study ldquoERP Training Strategies Conceptual Training and the Formation of
Accurate Mental Modelsrdquo Tony Coulson Conrad Shayo CE Tapie Rohm Lorne
Olfman (2003) examined a major determinant of successful ERP implementation end-
user training The study finds that a workflow conceptual advanced organizer strategy
(TCT group) improves end-userrsquos mental model accuracy over time as demonstrated by
the subjectslsquoability to recall ERP specific concepts Results indicate that a conceptual
advance organizer is an important component of ERP training and should be incorporated
into an organizationlsquos training strategy In general the study supported the framework
and found that by adding a tool conceptual knowledge-level to the training the end-users
developed more accurate mental models By using the knowledge-level framework and
incorporating tool conceptual knowledge into an organizationlsquos training design
organizations may see an improvement in overall ERP implementation results For
example because ERP training is very expensive those within an organization that attend
ERP training are often asked to train others in the organization when they return This
study shows that adding a tool conceptual knowledge-level to their training improves
their ability to recall and re-articulate their understanding of the system By building the
knowledge-levels that enable more effective understanding and communication of
concepts learned could be an invaluable asset to any companylsquos training and
implementation strategy [24]
ldquoEnterprise Resource Planning Challenges for Small and midsize Business (SMBs)rdquo
Analyst Katherine Jones (2004) of Aberdeen suggests that small and midsize businesses
are primarily driven by operating cost pressures perceived as the biggest challenge and
their key challenges are
1 Insufficient funding for corporate strategies and initiatives
2 Lack of clearly defined corporate vision and goals
3 Ineffective communication of corporate strategies and initiatives
22
4 Metrics that do not sufficiently provide incentives employees to supportachieve
corporate goals
5 Inability to accurately determine and plan for customer demand
As the immense variability in how SMB companies conduct business still predominates
the SMBs see technology as the enablers of their strategies Specifically cited are the
increased availability of advanced analytics decision support and reporting tools as well
as the availability of process-specific business applications [55]
Christina Soh Sia Siew Kien and Joanne Tay-Yap (2004) through their study on the
subject ldquoCultural Fits amp Misfits Is ERP a universal Solutionrdquo Present early findings
from a larger ongoing study The typology of misfits and examples are drawn from the
review of implementation documents and supplemented by interviews with key project
team members from one hospital [102]
In their White Paper ldquoERP Selection ndash Right Tracking Enterprise Change ITSg-GCPrdquo at
TCS Dr Joginder Singh Lamba amp Swapnil Kitcha (2007) analyzed the fact that
business changes in the form of portfolio expansion structure decentralization and supply
chain integration drive new investments in ERP Besides the need for more functional
areas within the IT landscape (BI CRM PLM and Product Information Management)
demands new interfaces with ERP backbone Heterogeneous compatibility and varied
maturity across modules elicit interest in best of breed solutions in ERP [64]
In ldquoFuture of ERP systems and Microsoft Dynamics Learn about XML and Web
servicesrdquo McKie (2008) discusses what sort of requirements XML and web services put
on business applications He further explains ERP systems need to be able to create
XML schemas (data specifications) and they need to be able to import and export data in
XML documents The more data an ERP user needs to share with business partners the
more important is to have these capabilities In addition to XML McKie identifies a
second type of Web service that offers functionality rather than data is expected to
emerge in the form of business partner integration analytics and alerts [79]
David Caruso (2005) Senior Vice President Industry Research AMR in his article
ldquoProcess Productivity and Profit The SMB Executiversquos Framework for ERP
Investmentrdquo narrated that SMBs which are not aggressively developing an effective ERP
strategy will be at some disadvantage to their peers by 2006 Forward-thinking executives
23
will consider strategic business capabilities as the drivers for enterprise resource planning
(ERP) investment justification In a 2005 study that AMR Research conducted with over
550 companies regarding their ERP investment plans and found that only 27 of small
companies (fewer than 500 employees) are currently using ERP This is in sharp contrast
to the 57 of large companies (500 to 2499 employees) and 70 of enterprise-sized
companies (2500-plus employees) that have operational ERP systems Given this data it
is not surprising that almost 50 of the respondents interviewed will be making
substantial changes to their existing ERP systems over the next 12 to 18 months The
challenge for executives charged with the decision is establishing a powerful context for
making the ERP investment [20] When considering the ERP investment decision from
the perspective of the executive suite there are four overarching drivers that frame what
executives need to consider
1 Productivitymdashgetting the most from your valuable employee assets
2 Connectivitymdashworking collaboratively with your key customers and suppliers
3 Business insightmdashImproving the speed and quality of decision making
4 Total cost of ownershipmdashreducing the cost of owning and operating IT systems
Yong Jean John amp Ki-Henry Yim (2001) in an article ldquoA study on an Environment of
ERP Introductionrdquo includes the role of ERP perception of ERP value ERP plan
direction and also argues various checkpoints as a preview of ERP introduction In
conclusion they list checkpoints in sequence based on the mean values that provides
indications of the relative importance As a result the most important checkpoints were
Performance of Introduction Main Reference Sites Availability of Current Resources
Easiness of Introduction Operation System Past Records of Supply Market Share and
Vendor Size The results shown in this paper has shown strong implications for ERP
vendors Vendor size and market share received the least attention amongs all the
checkpoints described in the study [125]
One step forward IQMS Executive White Paper (2007) ldquoHow Successful ERP Selections
are Made ldquo this paper is not just about want and donrsquot want from the various people in
the organization It suggests that it should be a long lasting purchase that provides the
users the feeling of a partnership As the user is not just buying software they are also
buying into a vendor and their company culture The combination of software capability
24
and vendor credibility should be a major purchasing factor There is more to a lasting
ERP purchase than that There are several platform thoughts on technology how many
vendors are included the demonstration the always useful buzz words with all the hype
on service oriented architecture (SOA) best of breed lean manufacturing and all the
other phrases floating in the industry today implementation time customer referrals
customer retention look at your company objectively etc [49]
Robert C Beatty amp Craig D Williams (2006) in ldquoBest Practices for Successfully
Implementing an ERP Upgraderdquo maintain that an ERP upgrade is deceptively complex
and can be daunting especially for organizations ignorant of the massive effort required
to do it correctly One study of mid-size to large companies conducted by AMR Research
found that 67 of these companies are implementing some form of ERP while another
21 are evaluating potential ERP systems solutions As a growing number of companies
adopt ERP systems ERP systems implementation and upgrades are identified as one of
the top five IT priorities among global CIOs according to independent surveys conducted
by Morgan Stanley and Deloitte amp Touche IDG Research Services Group In
conclusion this article provides organizations with a list of the eight most common
recommendations suggested by organizations that have already completed at least one
upgrade to their initial ERP implementation [11] These are
Finding 1 Build your business case on new functionality
Finding 2 Treat the upgrade like a new project
Finding 3 Keep the team together
Finding 4 This is a business project not an IT project
Finding 5 Watch for hidden infrastructure costs
Finding 6 Un-customize customizations
Finding 7 Test like your organizationrsquos future success depends on it
Robert Davison (2002) raises a valid point through his article ldquoCultural Complications of
ERPrdquo discussed cultural misfits from a Singaporean perspective This implies that a one-
size-fits all or one-business-model- fits-all approach is unlikely to be successful As much
of ERP literature originates from and describes application contexts in North America
and to a lesser extent Western Europe where most ERP developers are located and
implementations have occurred Developers and consultants need to adapt their products
25
and services for different cultural markets Awareness of cultural differences and prefer-
ences will certainly improve the assessment of ERP suitability and any subsequent
implementation [27]
A group of researchers Siew Kien Sia May Tang Christina Soh Wai Fong Boh (2002)
from Information Management Research Center Nanyang Business School in their
research paper ldquoEnterprise Resource Planning (ERP) Systems as a Technology of Power
Empowerment or Panoptic Controlrdquo explores ERP as an ambivalent technology of
power According to them on the one hand it may tighten management control by
bringing a new level of panoptic visibility to organizational activities on the other hand
the embedded business model within the ERP may drive empowerment of employees and
greater control relaxation through the configuration of new process design This research
seeks to understand how the different forces play out in the context of ERP
implementation and to explore the implications for traditional power distribution in
organizations It adopted a mixed qualitative-quantitative methodology in an intensive
case study of a restructured hospital in Singapore A survey of 260 users was
administered supplemented by approximately 27 hours of individual interviews with 23
people Results reveal that although ERP can facilitate both empowerment and panoptic
control management has consciously resisted empowerment by working to reinstitute the
power lost through the ERP implementation On the other hand the new panoptic
visibility though partially unintended appears to have evolved naturally and was readily
learned and applied in the organization This study is significant in exposing the
likelihood of ERP implementation as a technology that perpetuates management power
At least in the context of the hospital studied it is yet another means of enlarging the
management authority for ldquototal controlrdquo Current articulations of ERP by practitio-
nersmanagement as empowering thus appear to be more theoretical than real This is
consistent with the perspective of critical theorists (eg Sewell amp Wilkinson 1992
Weber 1947 Tannenbaum 1968) that organizational life will become increasingly
rationalized and more controlled Thus the findings support the critical perspective in
exposing the likelihood of ERP implementation to perpetuate management power Being
a single case study the external generalization of the above analysis is limited Future
research should be sensitive to the formative context (eg the nature of the pre-existing
26
structure the Asian cultural context) and the distribution of authority among
organizational actors (eg presence of management intention) in an organization The
dynamics of panoptic control and empowerment during ERP implementation may be
different in organizational transformation contexts or in organizations with more fluid or
organic pre-existing structures It may also be interesting to follow the analysis of
panoptical and empowerment over an extended period to get a better understanding of
their continuously evolving dynamics [98]
Suprateek Sarker and Allen S Lee (2003) in the paper ldquoUsing a Case study to test the
role of three key social enablers in ERP implementationrdquo indicate that three key social
enablersmdashstrong and committed leadership open and honest communication and a
balanced and empowered implementation teammdashare necessary conditionsprecursors for
successful ERP implementation In a longitudinal positivist case study we find that
while all three enablers may contribute to ERP implementation success only strong and
committed leadership can be empirically established as a necessary condition This
presents a challenge to future ERP researchers for resolving apparent contradictions
between the existing literature and the results of our analysis and for investigating the
nature of interactions among the leadership communication and team characteristics
[93]
Srinivas Mantha (2007) in the article ldquoERPndashBusiness Processes with IP
Communicationsrdquo explained the fact that the key to new competitive capability is
envisioning the enterprise in terms of business wide relationships to improve user
experience across the network exploit knowledge and enhance and accelerate core
processes IP Communications is the catalyst for this capability It enhances the value of
the user experience exploits knowledge value and increases the value of business
processes [76]
Linda Askenaumls amp Alf Westelius (2000) from Linkoumlping University Sweden explore
a new vista of ERP through their literature ldquoFive Roles of an Information System A
Social Constructionist Approach to Analyzing the use of ERP Systemsrdquo This paper
presents a novel way of thinking about how information systems are used in
organizations Traditionally computerized information systems are viewed as objects In
contrast by viewing the information system as an actor our understanding of the
27
structure process increases The user being influenced by the ERP (Enterprise Resource
Planning) system and giving it an actor role thereby also confers agency on the ERP
system Through its very use it influences actions and thus the structure as well Based
on a case study of ERP use in an ABB company for over a decade five different roles
played by the ERP system were identified The ERP system acted as Bureaucrat
Manipulator Administrator and Consultant or was dismissed (Dismissed) in the sense
that intended users chose to avoid using them In conclusion the purpose of this approach
is not to ldquoanimaterdquo the information system to give it life or a mind of its own but rather
to make explicit the socially constructed roles conferred on the information system by
users and others who are affected by it On this basis it is possible to suggest how the
roles can help us opening up the new areas of exploration concerning the fruitful use of
information technology [70]
Jinyoul Lee Keng Siau and Soongoo (2003) conducted a study on the topic ldquoEnterprise
Integration with ERP and EAIrdquo They state that to survive and thrive in these hypercom-
petitive markets it is essential for a company to understand rapidly changing business
circumstances To rapidly respond to a changing environment an enterprise must
integrate business functions into a single system efficiently utilizing information
technology and share data with third-party vendors and customers While ERP forces the
adoption of standard business processes EAI enables enterprise integration over business
object levels ERP thereby supports a centralized business strategy while EAI naturally
accommodates decentralized business processes Lastly they observe the fact True
enterprise integration means both technical and behavioral integration It is not simply
integrating different systems applications or business processes dispersed across an
enterprise It is integrating structural changes different behaviors and various
information systems in an enterprise Enterprise integration is costly and time-
consuming thus management should be cautious in the design of the project
Organizations should not blindly rush into new technologies Top management should
first strive to understand their business and needs for enterprise integration and then
select a methodology of enterprise integration [68]
Wilhelm Scheer and Frank Habermann (2000) in ldquoMaking ERP a Successrdquo have used
business process models at an operational level of e-business to achieve positive results
28
They have talked of different scenarios in e-business As in Business-to-Business
applications such as Supply Chain Management the user has to connect the ERP systems
of all business partners This means he has to fight not only with the thousands of
parameters of a single ERP system but with twice as much (or even more) Another likely
scenario is that the business partners involved in an inter-organizational supply chain are
using ERP systems of different vendors In this case a business process model can be
firstly used to define the conceptual value chain Secondly the conceptual model that is
independent from a certain software vendor can be linked to the repositories of the
different ERP systems in order to customize an integrated software solution These
examples demonstrate that business process models play a major role for the success of e-
business Some ERP vendors like SAP have understood this development and are already
implementing their first model-based e-business applications [94]
Ash CG (2001) in An e-Commerce Model for Extending ERP Systems onto the
Internet An Australian Perspective stated that an established research framework of e-
Business change is used to identify the factors for success of this e-business project
within an ERP environment The results confirm that a successful project was found to
have facilitators in all components of the business framework including the change
environment and project management Further there is the implication that the least
successful e-business projects will have inhibitors in both dimensions especially in the
area of cultural readiness and change management In this case study conflict arose
between local project management initiatives versus a centralized autocratic global ERP
deployment This highlights the need to encourage the balancing of conflicting
organizational knowledge when contemplating the adoption of e-business solutions [7]
Huigang Liang Yajiong Xue William R Boulton Terry Anthony Byrd (2004) ldquoWhy
Western Vendors donrsquot dominate Chinarsquos ERP Marketrdquo Examined cases of failed ERP
system implementation in China and explaining the unique circumstances These foreign
ERP implementation failures emphasize the need to localize strategies even for the
global ERP leaders The general manager of a foreign ERP vendor explained ldquoOne
should understand nationrsquos history and its culture before one starts doing business with
foreign companiesrdquo The cases of failed implementation suggest global ERP vendors
require more than superior technology and experience Their ERP strategies must also
29
address the cultural differences affecting ERP implementations Strategies need to
overcome problems relating to language reporting formats and content cost control
capabilities frequent business process redesigns effective customer support and capable
consulting partners [69]
In the research findings ldquoAn Agency Theory Model of ERP Implementationrdquo Vedabrata
Basu Albert L Lederer (2004) develop a model of testable propositions for applying
agency theory to study the relationship between implementation consultants and client
organizations deploying the ERP systems and to consequently evaluate how the
relationship affects the implementation success Therefore management needs to know
the factors that drive successful ERP implementation a product of the continuous
interaction between the implementation consultants and client firms Agency theory has
been successfully used by different researchers to explain relationships between two
parties seeking a common outcome This paper develops a conceptual model with the
variables and relationships that may play a critical role in explaining the sources of that
frustration It offers a foundation for research that can extend the applicability of agency
theory can help clients and consultants manage their relationships during the
implementation process and thus help them enhance the probability of ERP systems
implementation success It may also be useful for managing other outsourced IS projects
that have implementation settings similar to ERP [10]
Christian Vogt (2002) ldquoIntractable ERP A Comprehensive Analysis of Failed Enterprise-
Resource ndash Planning Projectsrdquo makes an analysis of possible causes that led to the
disasters for ERP implementation failures and suggests software engineering processes
that help avoiding such outcomes The Model Based Architecting and Software
Engineering (MBASE) guidelines developed by Prof Barry Boehm and Daniel Port at
the Center for Software Engineering (CSE) at USC provide a base for these elaborations
for a long time SW Engineering experts have praised commercial-off-the-shelf (COTS)
packages as the panacea to complex software development Far from it the elaboration
in this survey shows that the deployment of COTS packages may be extremely intrinsic
one does not know whether some COTS software adheres to its interface specifications or
how deficient it is or how well its performance scales up as workload demand grows
The upshot is that COTS software will always be an alien element in the software to be
30
developed and it should be considered that way Dye-in-thendashwool COTS package ERP
systems exhibit plenty of dangers Only if appropriate risk management and enough time
for stepwise employment is provided for ERP system can be tamed [115]
In the research findings ldquoImplementing Best Practices in ERP for Small amp Medium
Enterprisesrdquo Rashmi Jha A K Saini and M N Hoda (2008) provides an interesting
insight into taking ERP implementation as a project and develops problem driven
approach to examine its complex phenomena The implementation process will be
divided into several components which will reflect the nature of ERP projects and makes
them distinctive from other systems design methods This paper also addresses critical
issues relating to developing entrepreneurship for sustainable development of small and
medium size enterprises(SMEs) for its future extensions and added benefits It may also
be useful for managing other outsourced Information System (IS) projects that have
implementation settings similar to ERP [53]
Saumyendu and Maya Daneva (2003) in ldquoLessons Learnt from Five Years of Experience
in ERP Requirements Engineeringrdquo summarizes one companyrsquos five years of experience
in making a generic ERP RE model a live process It rests on previously published ERP
RE process assessment results and reports on what we learnt with particular focus on
typical issues organizations face when adopting a standard model and solutions that can
be used to avoid those issues in the future Each of our lessons is described together with
a RE practice technical foundation for the practice and engineering techniques for the RE
practitioner The lessons were used to refine our Corporate Documentation Model a
process-focused and template-based ERP-architecture framework [40]
In ldquoResearch on Agent-Based Architecture of ERP For Small amp Medium-Size
Enterpriserdquo Rui-Xue Fu Zhan-Hong Xin and Can Chen (2007) suggests that with the
rapid development of information technology and the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward To address these problems a MAERP system architecture has been developed
in which the agents are classified into four types F-Agent for realizing an operation
application C-Agent for coordinating with other agents I-Agent for a communication
31
tool between the user and the MAERP system and T-Agent for performing specific tasks
and data collecting [35]
Xavier Franch and Juan Pablo Carvallo (2003) in the research paper Using Quality
Models in Software Package Selection found that the absence of structured descriptions
of quality features and user quality requirements makes selecting the right software
package difficult The authors propose a methodology for describing the quality features
of domain-specific software packages uniformly and comprehensively using ISOIEC
9126-1 quality standards as a framework [34]
In the paper study ldquoRevisiting ERP Systems Benefit Realizationrdquo Paul Hawking and
Andrew Stein (2004) maintains that many companies initially implemented their ERP
systems to solve Y2K and disparate systems issues These same companies are now
looking at a how to strategically leverages their investment in these systems through the
implementation ldquosecond waverdquo functionality This paper identifies the expected and
actual benefits of ldquosecond waverdquo implementations In addition it identifies barriers which
limit the benefit realization The findings reinforce that ERP implementations are people
focused projects which rely heavily on change management for success [45]
Hamid Nach and Albert Lejeune (2008) ldquoImplementing ERP in SMEs Towards an
Ontology Supporting Managerial Decisionsrdquo state that the purpose of this research
project is to consolidate and formalize as ontology on the basis of an extensive literature
review the key processes and skills required for successful implementation of ERP in an
SME Using the Proteacutegeacute software program the research identified and formalized 395
terms each of which has its own definition Exploitation of this ontology could take
multiple and varied forms including creation of a learning system an on-line cooperation
platform or a project management process mapping tool contributing to successful use of
ERP in SMEs [81]
While Gul Tekin Temur and Sitki Gozlu (2008) ldquoDetermination of Performance Criteria
for ERP Software Technologyrdquo mention that the main goal is to determine the
performance criteria for ERP software technology with respect to their sources Today
the companies are in interaction with many internal and external partners and have to face
many situations in various environments Especially many small and medium sized firms
utilize ERP software technology to plan their business interactions in the chain In this
32
study firstly a literature search is accomplished Then in order to reveal the performance
criteria a large-scale automotive company has been selected to conduct interviews with
managers Also the meeting reports of a few small and medium-sized companies have
been analyzed As a result of the analysis on findings the common views of the firms
about performance criteria are classified into four groups according to their sources such
as people technical managerial and economical The sub factors of these main criteria
are also taken into account in order to point out the origins of the criteria The results of
the study will provide insight to researchers and as well as to professionals in the practice
[108]
Maya Daneva (2004) in ERP Requirements Engineering Practice Lessons Learned
mentioned the fact that organizations implementing Enterprise Resource Planning (ERP)
systems have been increasingly adopting generic off-the-shelf requirements engineering
(RE) process models Yet little information exists about the challenges of making a
generic RE model a life process This article discusses why bringing an off-the-shelf
process in is not a sufficient foundation The author shares experiences acquired over the
past five years of eliciting modeling and validating requirements in ERP projects and
highlights typical issues and their solutions Among the keys to success are planning RE
model use in the clients context and installing processes to support key RE activities [25]
While the article ldquoRescuing Troubled Software Projects by Team Transformation A
Case Study with an ERP Projectrdquo by Kim Man Lui and Keith C C Chan (2008)
differentiates various reasons of ERP project failures It further states that many software
projects fail whether failure is measured in terms of budget schedule or some other
requirement The causes of such failures are many but are not always easily recognized
This is not the least due to the human dimension of corporate activities as spurious or
misdiagnosed issues in Enterprise Resource Planning (ERP) projects can take on a life of
their own and become a magnet for company politics This paper reports an industrial
case in which the senior management attempted to deal with a troubled ERP
implementation (SAP R3) in an international fast moving consumer goods (FMCG)
company during 2001 and 2002 This paper reflects this dimension as it uses original
emails and PowerPoint slides to recount a number of representative episodes in a troubled
but ultimately successful project At the heart of this success is the realization that
33
whereas it can be difficult and time-consuming to do root-cause analyses it is relatively
simple to identify problem owners In this case the senior management without IT
backgrounds turned around a failing project by reorganizing the team structure according
to process areas so that issues in each process area had one problem owner We
summarize the managementrsquos actions into a troubleshooting framework and in addition
suggest three actions for rescuing troubled projects keep the project manager but narrow
down the managerrsquos scope of responsibility to one or two process areas assign the right
people to be responsible for other process areas and have the General Manager chair the
ERP meetings [60]
In the PICMET 2006 Proceedings on ldquoOptimizing the Change Management of Enterprise
Resource Planning Systems Implementationsrdquo Onur Kerimoglu and Nuri BaUogluI
(2006) maintain that although Enterprise Resource Planning (ERP) systems are being
used widely all around the world they also carry out many problems as well as their
benefits These systems are well known for enhancing cross functional efficiency and
effectiveness through the integration of all information flowing throughout an
organization However during different project life cycle stages of ERP systems this
integration may not be provided because of the formulation of incompatibilities which
are greater than the optimum level among different parties like ERP system processes of
the organization and system users Within this study existing incompatibilities between
these parties are modeled respectively In common the model propose that the ERP
product mostly matching with the processes of the organization should be selected
processes of the organization should be changed for being compatible with the ERP
system and system users should be educated new qualified people should be hired etc
for making the system and processes more familiar to people Here the point is that all of
these are done for keeping incompatibilities between the ERP system processes and
people at minimum level because this minimalism will avoid optimization and utilization
problems This study not only handles problems of ERP from a newer perspective but
also provides insight to managers about managing the change and utilizing their resources
efficiently for adopting the ERP software across the organization [59]
Capaldo Guido and Rippa Pierluigi (2008) in ldquoA methodological proposal to assess the
feasibility of ERP Systems Implementation Strategiesrdquo stated that Continuous failures in
34
ERP systems implementation project are today the main challenge in the feasibility of
integrated information systems Failure can be determined by different factors both from
technological side and organizational side if not well managed In this paper we propose
a methodological approach based on technochange management in order to assess the
feasibility of ERP implementation strategy and reduce the risk of failure in terms of
project metrics and early operational metrics A case study in a big Italian
Telecommunication Firm will be presented [19]
ldquoCase Study of PLIVA Pharmaceuticals Inc - Aligning ERP System Implementation
with Business Process Changerdquo is very relevant and contemporary paper presented by
Vesna Bosilj Vuksic and Mario Spremic (2004) The main objective of this paper is to
present the impacts of information technology (IT) and enterprise resource planning
(ERP) systems in business process renovation projects A case study of business process
reengineering project and the implementation of the SAP software solution in PLIVA
(PLIVA pharmaceuticals Inc) are presented [116]
In ldquoKey Factors Driving the Success of Technology Adoption Case Examples of ERP
Adoptionrdquo Chonyacha Suebsin and Nathasit Gerdsri (2009) address the issues that
impact technology adoption within an organization Several factors influencing
technology adoption process are identified from the literature review Case examples of
the adoption of a new management technology Enterprise Resource Planning (ERP) are
presented to illustrate the situations of technology adoption in organizations From the
case examples the factors influencing technology adoption in organizations are
consistent with the factors identified from the literatures The further discussion also
reveals the additional determinants including the clarification of project scope individual
commitment and communication which should be taken into consideration when an
organization adopts a new technology [105]
Maya Daneva (2002) in her paper ldquoUsing Maturity Assessments to Understand the ERP
Requirements Engineering Processrdquo mentions that applying standard requirements
engineering (RE) processes is a major trend in todayrsquos Enterprise Resource Planning
(ERP) software engineering It emerged five years ago with the promise to provide a
mechanism helping ERP project organizations deliver their business requirements timely
and within budget This paper looks in depth at a standard ERP RE process and seeks
35
answers to four questions how well it is defined what are the risks associated with its
application in matureimmature organizations what are the essential practices that
contribute to its success and what are the costs of the process and the quality of the
delivered results The main motivation of this paper is to provide some practical advice
for using assessments to increase project teamsrsquo understanding of the ERP RE process
[26]
Fan JC and Kwoting Fang (2006) ldquoERP Implementation and Information Systems
Success A Test of DeLone and McLeans Modelrdquo present their research that develops
and tests a theoretical extension of DeLone and McLeans model of information system
(IS) success which explains personnel belief that contributes to users utilization of ERP
(enterprise resource planning) systems The extended model is tested using the structural
equation model (SEM) a survey of 202 end-users from ten Taiwanese enterprises that
has implemented Data Systems workflow ERP systems is conducted The theoretical
model proposed in this study provides insight into how the concept of useful perception is
incorporated into DeLone and McLean model and plays a critical mediated role to
influence system usage and its associated satisfaction The implications of these findings
for researchers and practitioners are discussed [32]
In the research findings ldquoManaging ERP Implementation Failure A Project Management
Perspectiverdquo Charlie C Chen Chuck C H Law and Samuel C Yang (2008) stated that
Information Technology (IT) projects are susceptible to changes in the business
environment and the increasing velocity of change in global business is challenging the
management of enterprise systems such as enterprise resource planning (ERP) At the
same time system success depends on the rigor of the project management processes
Scope creep poor risk management inadequate allocation of human resources over time
and vendor management are some common problems associated with the implementation
of an enterprise system These issues pose threats to the success of a large-scale software
project such as ERP This research adopts a case study approach to examine how poor
project management can imperil the implementation of an ERP system Having learned
the lessons from the failure of its first ERP implementation the company in this case
reengineered its project management practices to successfully carry out its second ERP
implementation Many critical project management factors contributed to the failure and
36
success of this companyrsquos ERP system This study explores and identifies critical
elements of project management that contributed to the success of the second ERP
implementation For those organizations adopting ERP the findings provide a roadmap
to follow in order to avoid making critical but often underestimated project management
mistakes [21]
Rafa Kouki Robert Pellerin and Diane Poulin (2008) in An Exploratory Study of ERP
Assimilation in Developing Countries The Case of Three Tunisian Companies assessed
that ERP systems could be considered as the most difficult systems to be assimilated
Very little research however has been realised to investigate the determinants of success
of the ERP assimilation process There has been also a dearth in research about ERP
projects in general and ERP post-implementation and assimilation in particular in
developing countries Using a case study methodology grounded in the diffusion of
innovation theory this study tries to understand the factors that could improve or
challenge the ERP systems assimilation process in three Tunisian companies Our
findings highlighted the importance of several factors such as top management support
strategic alignment IT expertise training communication organizational culture and
coercive pressures [62]
Ian Sommerville (2008) Construction by Configuration Challenges for Software
Engineering Research and Practice observed that past ten years have seen a radical shift
in business application software development Rather than developing software from
scratch using a conventional programming language the majority of commercial
software is now developed through reuse ndash the adaptation and configuration of existing
software systems to meet specific organizational requirements The most widespread
form of reuse is through the use of generic systems such as ERP and COTS systems that
are configured to meet specific organizational requirements In this paper he discussed
the implications of software construction by configuration (CbC) for software
engineering Based on his experience with systems for medical records and university
administration he highlighted some of the issues and problems that can arise in
construction by configuration he discussed problems that arise in CbC projects and
identify a number of challenges for research and practice to improve this approach to
software engineering [104]
37
SV Deshmukh and RR Lakhe (2008) in the research paper ldquoSix Sigma ndash An Innovative
Approach for Waste Reduction A Case Study of an Indian SMErdquo present a case study
aimed at reducing waste at an SME engaged in manufacturing of corrugated boxes The
Define Measure Analyze Improve Control strategy of Six Sigma methodology was
followed to identify probable causes for wastages After studying the system and
implementation of six sigma tools an overall 227 waste reduction was achieved
Individually out of a total seven processes 5 showed waste reduction in excess of 40
This reduction was statistically significant at Plt005 The study confirmed successful
implementation of six sigma to minimize waste generation and in terms saving in
manufacturing costs or increasing the bottom line [29]
While in ldquoERP Implementation Critical Success Factors - The Role and Impact of
Business Process Managementrdquo Yasar F Jarrar Abdullah Al-Mudimigh and Mohamed
Zairi (2000) investigate the role and impact of business process management in
successful ERP implementation The paper starts by defining business process
management ERP and the ERP critical success factors The impact of business process
management on successful ERP implementation is then assessed through looking at the
experiences of several organizations The paper concludes by highlighting best practices
for capitalizing on business process management for successful ERP implementation
[52]
M S Camara L Kermad and A El Mhamedi (2006) in the paper ldquoRisk Prediction in
ERP Projects Classification of Reengineered Business Processesrdquo maintain that
Companies have been implementing ERPs for almost ten years now and more the same
implementation problems continue to occur More and more ERP projectrsquos technological
challenges are accompanied by critical dimensions related to the management of the
transformational effects of these projects on the organization Indeed risk management in
this kind of project is not very structured and misses specific methods In this article they
propose a structured methodology for risk management particularly in the BPR (Business
Process Reengineering) sub-project of ERP implementation The final aim of our work is
to decease appreciably resistance to organizational change which poses the greatest
obstacle to business process reengineering efforts They propose to adapt OSR (Optimal
Set Reduction) a risk management method used in software development for the risk
38
management in ERP implementation They address specially the risk related to the
changes in enterprise processes in the ERP project To achieve this objective they
propose to define business process change metrics starting from business process
complexity metrics that exist in the literature [18]
ldquoExploration and Verification of Factors in the Front-end Stage of the ERP
Implementation Process Evidence from Case Study and Survey Researchrdquo Kun Shi and
Qiang Lu (2009) depict that ERP (Enterprise Resources Planning) is widely used to
improve business performance This paper explores how the factors associated with the
Front-end ERP Implementation Process (FEIP) affect the implementation outcome First
based on literature review a preliminary framework with 12 hypotheses is developed
Then Grounded Theory is applied for a case study to further extract and verify the factors
and sub-factors These factors are finally identified as strategic planning corporate
culture user characteristics organization-process-system maturity external expertise
engagementsupport and project preparation Furthermore the significance and
correlation of all the factors are detected by conducting survey research with SPSS as a
tool for analysis The study shows that the framework is valid and that among six three
factors have strong impact on the ERP implementation result whereas others are less
influential Implication is given and limitation is indicated at the end [63]
Huo Lingyu Liu Bingwu and Li Juntao (2009) in the paper ldquoAn ERP System Selection
Model Based on Fuzzy Grey TOPSIS for SMEsrdquo present a new fuzzy multi-criteria
decision making (FMCDM) approach which integrates the technique for order preference
by the similarity to ideal solution (TOPSIS) grey relation and fuzzy set theory for
enterprise resource planning (ERP) system evaluation and selection in the Small and
Medium-Sized Enterprises (SMEs) In this study the characteristic of the alternative with
respect to the criteria are represented in terms of a linguistic term set and the weight of
the criteria is described by triangular fuzzy numbers respectively According to the grey
theory and fuzzy set theory a closeness coefficient is defined to determine the ranking
order of all alternatives by calculating the grade of grey relation to the fuzzy positive-
ideal solution (FPIS) and fuzzy negative-ideal solution (FNIS) simultaneously Finally
an example is shown to highlight the procedure of the proposed method [48]
39
Gao Juntao Zhang Li Wang Zhiyao (2008) summarized their findings in ldquoDecision
Support for Handling Gaps between ERP functionalities and Organizational Needs A
Goal Reasoning based approachrdquo They found that in the process of selecting
commercial off-the-shelf (COTS) ERP systems it is inevitable to encounter gaps between
ERP software and organizational needs Gaps occur when COTS attributes do not exactly
match organizational needs and they make organizational users and software vendors in
the dilemma whether to adapt as-is business processes or to customize software
packages A decision support method for handling gaps is proposed in this paper Firstly
organizational goal-process models are built as the base for decision making Secondly
the idea of evidence theory is introduced into goal reasoning and a quantified algorithm is
proposed to evaluate the impacts of different business processes on high level goals
which are critical to make decision At last the risk is discussed to rank intervals which
specify the expected utilization of business processes [56]
Yvonne Dittrich and Sebastien Vaucouleur (2009) conducted a research on the topicrdquo
ERP Customization as Software Engineering Knowledge Sharing and Cooperationrdquo and
argue that Enterprise resource planning (ERP) systems must be configured and
customized to fit a specific company The authors discuss cooperation with regard to ERP
systems customization Enterprise resource planning (ERP) vendors provide multiple
configuration possibilities ranging from module selection to master data provision to
steer access rights for different users These configuration possibilities cover anticipated
variability If the customer requires adaptation beyond whatrsquos anticipated the source
code of the product must be adapted Customizations in this articlersquos context are source-
code-based adaptations of software products The size and complexity of customizations
range from simple report generation to developing independent add-ons that support
specific businessesmdashfor example solutions for flight carriers The size and lead time of
such projects can compare to a full-size software development project They present
empirical research on customization practices of ERP systems as an example of software
development based on customization of standard software They compared customization
with other development practices that are based on integrating existing code and results
underlined the need to rethink software engineering and programming methods and tools
[129]
40
In the paper study ldquoSignificance of Software Metrics in ERP Projectsrdquo S Parthasarathy
and N Anbazhagan (2006) narrate that ERP projects are a subclass of software projects
often accompanied by large-scale organizational changes One of the major reasons found
in the literature for the failure of ERP projects is the poor management of software
processes In this paper we propose a Software Metrics Plan (SNP) containing different
software metrics to manage software processes during ERP implementation Two
hypotheses have been formulated and tested using statistical techniques to validate the
SNP The statistical analysis of the collected data from an ERP project supports the two
hypotheses leading to the conclusion that the software metrics are momentous in ERP
projects [84]
Antony Marsh (2000) in the article ldquoThe implementation of Enterprise Resource Planning
systems in small and medium Manufacturing enterprises in south-east Queensland a case
study approachrdquo examines the implementation of ERP systems in smallmedium-sized
enterprises in South East Queensland Australia Nine case studies were conducted to
determine factors for success or failure in the implementations Key success factors
identified included cross-functional team approaches organizational experience of
similar scale IT or organizational change projects and lsquodeeprsquo understanding of the key
issues relating to ERP implementations Failure factors identified included top-down or
consultant driven implementations IT department driven implementations or
implementations where the EFV is seen as a quick technological fix to problems within
the operation of the firm rather than as a strategic investment [78]
Christian Doumlrner Sebastian Draxler Volkmar Pipek and Volker Wulf (2009) through
their study ldquoEnd Users at the Bazaar Designing Next-Generation Enterprise Resource
Planning Systemsrdquo propose that the bazaar metaphor has developed a lasting
popularity in software engineering especially as software architectures have evolved
from monoliths to service orientation Nevertheless the metaphor is limited because it
doesnt consider end users those who develop software for themselves Introducing such
an end user the prosumer to the bazaar not only suggests a changing division of work
in software development but also calls for different functionality and architectural
choices The authors evaluated changing software architectures from an end-user
development (EUD) perspective taking the case of enterprise resource planning (ERP)
41
systems as traditionally monolithically designed systems moving toward service
orientation On the basis of the studys findings which indicated problems with the
systems technical flexibility the authors developed a tool set for fostering EUD
activities Their new architecture for ERP systems enables end users to create their own
solutions [31]
Kenny KF Lee (2000) in ldquoThe Five Disciplines of ERP Software Implementationrdquo has
identified the critical factors in businesses which learn grow and succeed This paper
applies the central concepts of the book its five disciplines to the software business
specifically the management of software implementation Using the learning challenge
posed by the organization-wide implementation of Enterprise Resource Systems (Em) the
paper covers how EM software project leaders may manage themselves their teams
business vision and corporate culture and team members to create a survival machine
which can thrive in the current economic and technological climate [67]
Piet MA Ribbers amp Schoo (2000) in his paper ldquoDesigning Complex Software
Implementation Programsrdquo raises a central question that how one can design of Program
Management contributes to the success of complex software implementations
Incomplete goal specifications lack of communication and underestimation of project
complexity are signs of insufficient program and project management To avoid these
pitfalls he proposes ways that have worked well in recent complex multi-project ERP
implementations (programs) Answering the above question raises the problem of
adequately defining and measuring the level of complexity of an implementation
program A conceptual model was developed which identifies program management
factors that are proposed to have an impact on implementation success Fifteen cases
were studied to find support for the proposed framework [88]
ldquoDetecting Gaps between ERP Software and Organizational Needs A Semantic
Similarity Based Approachrdquo is very relevant and contemporary paper presented by Gao
Juntao and Zhang Li (2008) It depicts that Gap analysis is one of the most important
phases in implementation of enterprise resource planning (ERP) system In this paper an
approach is proposed to automatically detect gaps between software capacities and
organizational needs based on semantic similarity computation The approach takes two
business process models as input and one specifies software capacities and the other
42
describes organizational needs The output of it is a report of gaps As a matter of fact
the differences between application domain and software discipline make semantic
heterogeneity a key problem in gap detection therefore the technologies of semantic
similarity computing are employed to resolve ambiguity issues caused by the use of
synonyms or homonyms In particular the idea of similarity propagation is introduced to
pick out a mapping between corresponding activities and data and Hungarian algorithm
is employed to reduce its time complexity Then the similarity of whole models is
measured according to the minimal total cost of change operations Finally an
experiment is given to evaluate the method [36]
In the research publication ldquoERP System Adoption - Does the Size Matterrdquo Sanna
Laukkanen Sami Sarpola and Petri Hallikainen (2005) investigate the relationship of
enterprise size to the constraints and objectives of ERP systems adoption The survey
data based on the responses of 44 companies indicates that significant differences exist
between small medium-sized and large enterprises in ERP system adoption Specifically
the findings suggest that small companies experience more knowledge constraints than
their larger counterparts in ERP adoption Further while being the most prevalent
objective for ERP adoption in all the company groups business development through
ERP adoption is considered especially important by the medium-sized and large
enterprises Finally the findings of the study suggest that instead of considering small
and medium-sized enterprises as one homogenous group the differences between these
two groups of companies should be acknowledged in the future research [65]
In their paper ldquoModel Based on CSCWrdquo Wedian Liang XuFen Zhenkun Li Rong Xiao
JunFeng Hu (2005) summarise their finding They feel that Software testing is an
important component of the software engineering and an important link that the software
development quality is guaranteed Using the reasonable model for software testing can
reduce the expenses of testing in the developing activity in the course of testing thus cut
down the cost of software development In this paper we put forward a model for
software testing bused on CSCW technology that run through each stages of software
development cycle If can find the mistake in the software as soon as possible has
shorten the time taken for testing in the course of the development of software testing
43
effectively Finally we applied the model to the testing project which develops ERP
system and then receive the ideal result [118]
In their paper ldquoThe Research and Development of IMIS for Small and Medium-sized
Printing Enterpriserdquo Taolin Ma Xiaoming Chen Yansong Sun Xiurong Li (2009)
analyzed the fact that the basic management thought of inventory management
information system (IMIS) was established by analyzing the inventory management
theory of modern enterprise In this system which using the architecture of CS the stores
were classified by ABC management method the inventory control was completed by
setting up the safety stock and the largest stock the analysis and design of IMIS were
finished This IMIS was developed to meet the practical requirements of small and
medium-sized printing enterprise in our country It can not only be used as the important
measure of the informationized construction for small and medium sized printing
enterprise but also used as a subsystem of enterprise ERP system IMIS could improve
enterprise management level realize rapid transformation of enterprise and finally
enhance the competitiveness of enterprise in market economy [106]
Jiangao Deng and Yijie Bian (2008) in the research paper ldquoConstructing a Risk
Management Mechanism Model of ERP Projectrdquo mention that in the process of
information project implementation of manufacturing enterprises there are many risks to
set up a set of risk management mechanism is guaranteed for them to succeed in ERP
implementation Firstly based on the analysis of ERP project implementation of China
the paper introduced the risk management methodology systems and the relative model
which includes three main steps identifying risk evaluating risk and controlling risk
After that on the aspects of decision implementation and application stages of
manufacturing ERP project life cycle the paper discussed risks of each stage and put
forward a two-dimension matrix risk management strategy Then a mechanism model of
ERP project risk management is constructed which shows that information risk control
strategies of the last two stages not only depend on resources of these stages but also
have a diverse relationship with the last stage Finally according to the successful
implementation of an enterprisersquos ERP project the paper carried out an effective case
application analysis of risk management mechanism model The lack of improvement in
usersrsquo ERP skill levels and the shortage in documenting the rationale for business rules
44
and configuration decisions were among the critical issues of the post-implementation
stage Indeed all of their respondents stressed the importance of refreshing the usersrsquo
knowledge about the system [28]
Saumyendu Ghosh (2003) in ldquoGlobal Implementation of ERP Software ndash Critical Success
Factors on Upgrading Technical Infrastructurerdquo discusses that implementing an
Enterprise Resource planning (ERP) software in a global environment executive
sponsors face two key challenges While business processes are to be re-engineered to
align with the ERP software best practices technical architecture and infrastructure needs
to be in place globally as per specifications of the packaged software In the legacy
environment different countries or different business units use different systems based
on local standards supported by local resources In the new ERP world globally all the
countries must conform to same technical infrastructure Technical managers face
multiple critical issues implementing a global solution Most of the ERP software is
developed in technically advanced countries standards are often too high for under
developed or developing countries In an effort to bring the global organization to a
common platform different countries need different levels of upgrades In this paper the
authors review key technical issues faced is a global upgrade process to support a global
ERP implementation and how to resolve those We conclude although technical
infrastructure and business process reengineering both are equally important and each
implementation is unique but following some simple steps it is easy to prioritize each
ones during different phases of the project Also time lines of two sub-projects must
converge after initial phase and must follow a common plan for the project to be
successful Multiple scenarios are described to facilitate the process He concludes
although technical infrastructure and business process reengineering both are equally
important and each implementation is unique but following some simple steps it is easy
to prioritize each ones during different phases of the project Also time lines of two
subprojects must converge after initial phase and must follow a common plan for the
project to be successful Multiple scenarios are described to facilitate the process [38]
Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008) ldquoDevelopment and
Implementation of ERPCRM System Based on Open Source Software to Small and
Medium-sized Enterprise in Chinardquo analysed the fact that E-commerce and the
45
development of modern enterprise management raise a number of challenges in the
process of informatization of small and medium-sized enterprises (SME) in china To
address this they present an approach in which the informatization is enhanced by using
Open Source Software with customized policies We analyses the main
informationization obstacles of SME in china bring forward that the lack of bankroll
talents cost and management etc are the key problems to informationization of SME
Furthermore they have developed a textile foreign trade ERP CRM system based on
Open Source Software for the local textile distributor of china integrating financial
distribution sales and service processes given the implement method of overall planning
step-by-step implementation key breakthrough and efficiency guiding In the end we
compare the typical Open Source Software and traditional commercial software point
out the advantages of informatization based Open Source Software to SME in china and
the development trend of Open Source Software for enterprise application [132]
ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information Systems ndash a
Multi-disciplinary Method for ERP System Requirements Engineeringrdquo by Inka Vilpola
Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that ERP systems are in
most cases off-the-shelf software packages and large by their size and complex by their
structure Small and medium-sized enterprises (SMEs) require flexibility of the ERP
system because of their individual operational processes Therefore it is crucial to select
and implement an ERP system that fits the requirements of the intended target processes
To support the requirements engineering of ERP systems we have developed Customer-
Centered ERP Implementation (C-CEI) method The method introduces a multi-
disciplinary approach to the ERP project and provides in-depth understanding of the
companylsquos processes and context of use Using C-CEI method decreases the risk of
SMEs to select an inappropriate system and improves the system acceptance by the
customer companyrsquos employees In this paper we present the method and illustrate it by
three SME case studies [114]
Saumyendu Ghosh (2000) in ldquoChallenges on a global implementation of ERP softwarerdquo
discusses that some of the unique challenges in ERP implementation are satisfying
multiple countries statutory requirements and reporting to the corporate head quarters
from one installation of the software conflicting interests between different business
46
entities lack of experienced implementators in all the countries and eminent users of
multinational advantages He discusses different aspects of these challenges in detail and
point out that ERP software can provide only one solution for a particular business
process unless workarounds are available from experienced implementation Different
counties adopt different reporting and accounting practices and therefore an ERP
implementation cannot solve all problems that global corporation may have multiple
countries in the scope of the project due to absence of standard global processes across
the organization He concludes that the most important critical success factor of these
international implementations are how quickly these corporations can reengineer existing
business process to adopt best practices of using an ERP system [38]
Dong Cheng Feiyan Deng Hongtao Li (2006) ldquoCritical Factors for Successful
Implementation of ERP in Chinardquo in their study propound a theoretical model for
successful implementation of Enterprise Resource Planning (ERP) under Chinarsquos
environment and the authors analyze the model empirically through structural equation
modeling The authors find that strategically IT planning abilities leadershiprsquos support
and the skills of IT section business processing abilities learning abilities and change
management abilities has a significant positive impact on successful ERP implementation
[22]
Parijat Upadhyay (2008) in his research studies ldquoAn explorative study to identify the
Critical Success Factors for ERP Implementation in Indian small and medium scale
enterprisesrdquo explores the existing literature on ERP implementation issues in context to
small and medium scale enterprises and attempts a compilation of the factors that assume
great significance while implementing ERP in SMErsquos Given the nature and magnitude of
the problems in encountered in implementing an ERP project this study would attempt to
identify the critical success factors(CSFrsquos) for a successful implementation of an ERP
project since it calls for substantial effort on the part of all the stake holders involved to
make the implementation a success [111]
ldquoThe ERP Implementation of SME in Chinardquo Yuanqiang Xia Peter Lok and Song Yang
(2009) presented the fact that ERP implementing for small and middle size enterprise
(SME) is different from the large one Based on the analysis on the character of ERP
marketing and SMEs of China 6 critical success factors are recommended The research
47
suggests that the top management support is most important to ERP implement in SME
of China in which paternalism prevails Database of management and capital are main
obstacles ERP 1 or ERP 2 fits to demand of SME high power project team has
tremendous significance in the situation of absence of IT engineer for SME education
and training is helpful to successfully ERP implementing The results service as better
understanding the ERP implementation of SME in China and gaining the good
performance of ERP implementation [126]
Yan Xu and Chung-Hsing Yeh (2009) in the article ldquoStrategic Management of
Performance Measures for an ERP Implementation Project Teamrdquo present a new
evaluation model for managing performance measures of an enterprise resource planning
(ERP) implementation project team in an organization With the performance measures
classified into four strategic perspectives of the balanced scorecard the evaluation model
enables the goal alignment between the project team and the organization A new
algorithm using the concept of multi-attribute decision making is developed to obtain the
relative importance value for each performance measure for its contribution to the
strategic goals of the organization The higher the importance values of a performance
measure the more important the role it plays in determining the responsibilities of the
corresponding project team player Understanding the importance of the key performance
measures will help an organization well-prepare to launch a project and have the project
being organized in advance A case of an ERP implementation project in an integrated
manufacturing corporation is presented to demonstrate the applicability of the evaluation
model and its effective management of the performance measures [124]
Zhang Yanhong (2009) in his research paper ldquoERP Implementation Process Analysis
Based on the Key Success Factorsrdquo describes that Enterprise Resource Planning (ERP) is
an amalgamation of a companys information systems designed to bind more closely a
variety of company functions including human resources inventories and financials
while simultaneously linking the company to customers and vendors This thesis is based
on the theory of product life cycle and the process of ERP is divided into four phase
planning implementation stabilization and improvement Critical success factors in each
phase are identified by paper research case study and investigation An ERP
implementation process model based on the critical Success factors (CSFs) is proposed in
48
the paper The thesis analyzes the global planning stages and business process rebuilding
in the process of QIHE pharmaceuticals ERP Improvement on management and
financing before and after ERP implementation are contrasted and we come to the
following conclusions (1) The CSFs in the planning phase is comprehensive
investigation and evaluation (2) The CSFs in the implementation phase is effective
project management team (3) The CSFs in the stabilization phase is appropriate
information management system (4) The CSFs in the improvement phase is change on
demand and continue to innovate (5) The CSFs throughout the product life cycle is
business process rebuilding [131]
Van Stijn E and Wensley A (2001) ldquoOrganizational memory and the completeness of
process modeling in ERP systems some concerns methods and directions for future
researchrdquo mentioned that Enterprise resource planning (ERP) systems not only have a
broad functional scope promising to support many different business processes they also
embed many different aspects of the companyrsquos organizational memory Disparities can
exist between those memory contents in the ERP system and related contents in other
memory media such as individualsrsquo memories and the organizational structure and
culture It is our contention that in general these disparities or memory mismatches as
we will refer to them lead to under-performance of ERP systems In this paper they focus
on potential memory mismatches that may arise with respect to the embedding of process
knowledge within ERP packages Packages such as SAP provide a varied and rich
environment for process modeling However they suspect that there are still many
instances where process knowledge is either lost or represented in different ways in
different parts of the organization The overall thrust of the paper is to identify a variety
of concerns intriguing questions and avenues for future research [112]
Eric Kimberling (2008) in his article ldquo The Role of Lean Six Sigma in ERPrdquo insisted
that there are a number of things to consider when considering a new ERP system like six
sigma lean manufacturing or other business transformation projects that has the capacity
to measure reducing waste managing change well continuous improvement etc [133]
William H Gaw (2010) ldquoEight Basics of Lean Six Sigma for Manufacturing Firmsrdquo In
the efforts to draw closer to customers many manufacturers have lost focus on what
should be a companyrsquos primary success factor ndash profitable growth In todayrsquos competitive
49
manufacturing environment it takes more than quick fixes outsourcing and downsizing
for companies to consistently achieve their growth and profit objectives While these
options may yield temporary financial relief they will not lead the way to long-term
growth and profitability For companies to grow and consistently exceed bottom line
expectations they need to get lean And to get lean they should master eight basics of
Lean Six Sigma in the form of information integrity performance measurement
sequential production point-of-use logistic cycle time management production linearity
and resource planning and customer satisfaction [134]
Brehm L and Markus M L (2000) in The Divided Software Life Cycle of ERP
Packages mentioned that traditional information system life cycle (SLC) focuses on the
activities performed by company developing implementing and maintaining software for
its own internal use Enterprise resource planning (ERP) software packages change the
SLC in several important ways This paper presents an extension of the SLC model for
ERP packages The lsquodivided software life cyclersquo (DSLC) model features an equal
emphasis on the activities performed by the ERP adopting company and the ERP vendor
[15]
Alavi M and Carlson P (1992) A Review of MIS research and disciplinary
development The perceived status of journals in which MIS research is published is an
important issue to academics The number of IS-related journals has increased through
the years yet it is not obvious which are the ldquoleadingrdquo journals or what criteria should be
used to determine this This article addresses these issues by (1) evaluating and
analyzing previous studies in which MIS related journals have been ranked (2)
determining top-ranked journals and placing them into two levels or tiers based on
previous studies and (3) establishing a profile through a systematic analysis of the nine
journals in the first tier This study identified 17 highly ranked journals for publication
Nine were placed in the first tier and eight in the second tier In addition to IS-specific
journals publications included management science computer science and business-
oriented journals The individual strategies for improving software productivity are
identified Issues related to software costs and controlling them are examined and
discussed It is pointed out that a good framework of techniques exists for controlling
software budgets schedules and work completed but that a great deal of further progress
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 5
16
and present taxonomy of ERP implementation in three archetypal categories ie
Comprehensive Middle-Road and Vanilla The rationale for implementation varies
between companies and provides an indicator of the type of implementation envisaged
The characteristics of each category are Physical Scope the BPR Scope Technical
Scope Module Implementation Strategy and Resource Allocation Combinations of these
characteristics serve to place an implementation within one of the categories The CEO
can see straightforwardly some of the consequences of implementation decisions by
understanding the taxonomy and the choices it highlights In this way the taxonomy can
be used to structure discussions about ERP implementation and make the decision
making process more systematic The aim of the taxonomy is to provide non-technical
managers with an effective framework early in the process to comprehend the
dimensions and implications of the enterprise This may then help to reduce the budget
and time blowouts [83]
Wayne Brown (2004) in his research paper ldquoEnterprise Resource Planning (ERP)
Implementation Planning and Structure A Recipe for ERP Successrdquo conducted a brief
review of the literature on attributes and structure that help in making ERP
implementation successful The project management structure and process used at Heald
College was compared to this ERP implementation literature The author discusses this
structure and the processes used to control project costs limit customizations control
scope involve executive management deliver documentation and training communicate
with the institution and manage change The author concludes with a lesson that
communication and change management are very important pieces of the implementation
puzzle [17]
Ali Haj Bakry amp Saad Haj Bakry (2005) through their study on ldquoEnterprise resource
planning a review and a STOPE viewrdquo provides a comprehensive understanding of ERP
systems including illustrating their main components and clarifying their basic and
extended features The ERP review presented here has started with the ERP principles
and moved forward toward the market state selection criteria implementation factors
current and future development and stopped at integrating the various ERP issues into
the STOPE framework (strategy technology organizationndashenterprise people
environment) which illustrates the integration of ERP systems with the overall enterprise
17
network The research illustrated that ERP systems are distinguished for their e-business
support integration approach flexible modular architecture and openness for horizontal
accommodation of wider scope of tasks and for vertical building of sophistication and
intelligence The ERP systems are open for further improvement through research and
development and for more experience through practical implementation and operation
[9]
In the article ldquoEnterprise Resource Planning A Business Approach to System
Developmentrdquo Nicola Gibson Christopher P Holland amp Ben Light (1999) of
Manchester Business School argue that system development is now entering a new phase
of maturity with the advent of Enterprise Resource Planning (ERP) software packages
From case study research it is shown that ERP implementations have different types of
problems compared with traditional software development methods These centre on the
alignment of business processes with the standard software package and the project
management of the implementation process They concluded that ERP is a departure
from traditional approaches to system development It therefore requires a different
approach that places less emphasis on the technical aspects of software development and
instead seeks to balance the business process design software configuration and project
management aspects of IT implementation with the overall strategy and structure of the
firm [41]
In Proceedings of the 36th Hawaii International Conference on System Sciences Celeste
See Pui Ng Guy Gable amp Taizan Chan (2003) of Queensland University of Technology
Australia presented their research paper ldquoAn ERP Maintenance Modelrdquo In order to
bridge this gap in literature and practice they propose a preliminary ERP maintenance
model reflecting fundamental ERP maintenance and upgrade activities A detailed case
study was conducted to gather empirical data for developing such an ERP maintenance
model Data gathered from the interviews relating to (i) maintenance preparation and
initial planning (ii) maintenance procedures and (iii) upgrade process are used to map
out Government Agencyrsquos (GA in the Australian state of Queensland) implicit
maintenance model ndash maintenance preparation maintenance procedure and software
upgrade stages respectively Data collected from the databases associated with request
type staff involved and maintenance activities are used to map out the maintenance
18
procedure stage whereas information from the upgrade business case and upgrade
planning resources documentation are used for mapping out the software replacement
stage of GArsquos maintenance model Data analysis identified potential benefits of the
maintenance model to ERP-using organizations generally and to the case firm in
particular with the primary business objectives This study provides practitioners with
guidelines on planning implementing and upgrading an ERP [86]
Yao Yurong amp He Houcun (2000) in the article ldquoData Warehousing and the Internetrsquos
impact on ERPrdquo examines the advances in data warehousing and internet technology
spurring ERP development As per their findings these systems still needed some
improvements To keep pace ERP systems themselves have undergone considerable
change in the past 10 years Thus in making the right ERP choices itrsquos helpful to know
how two key technologiesmdashdata warehousing and the Inter-netmdashare transforming these
complex systems SAP a leading ERP company introduced the business warehouse as a
complement to its R3 application suite Oracle a SAP competitor also sells its own
solutions Action (an activity-based management system) Balanced Scorecard (a
business performance management package acquired from Graphical Information Inc)
sales analyzer and warehouse analyzer So Oracle has also concluded that the
combination of data warehousing and ERP is an effective solution for counteracting the
drawbacks of the two systems [127]
In the research publication ldquoMatching ERP System Functionality to Customer
Requirementsrdquo Colette Rolland amp Naveen Prakash (2001) propose an approach for
matching ERP system functionality to customer requirements The assumption made was
that the ERP system postulates a set of requirements that are worth eliciting from the
ERP documentation as abstractions of the ERP system functionality Then the
requirements engineering process is a process that matches the ERP set of requirements
against organizational ones The paper presents the Map representation system and the
matching process The process is illustrated by considering the Treasury module of SAP
and its installation in the financial management of a cultural exchanges unit
Conclusively one can successfully expect to lay down such generic maps for capturing
change strategies for companies moving from single to multi customer oriented services
[91]
19
In ldquoEnterprise Resource Planning (ERP) ndash Breakthrough or Buzzwordrdquo A Fitzgerald
(1992) suggests that to understand the structure of the ERP manufacturing solutions one
must examine both the technology underlying these systems together with the
environments and functionality required Finally to make the lsquobusiness casersquo for such
systems we must focus on the benefits that can be achieved by using ERP systems [33]
In the proceeding of 34th
Hawaii International conference on System sciences an
important article on CSFs in ERP ldquoThe Impact of Critical Success Factors across the
Stages of Enterprise Resource Planning Implementationsrdquo by Toni M Somers amp Klara
Nelson (2001) was published This paper describes the impact of Critical Success Factors
(CSFs) across the stages of Enterprise Resource Planning (ERP) implementations using
the responses from 86 organizations that completed or are in the process of completing an
ERP implementation This research not only identified which CSFs are most critical in
ERP implementations but also determined which factors are temporal ie significant in
the implementation process for a particular period in time That information can now be
used to identify anticipate and allocate time and resources across those factors that need
attending to for effective project monitoring It also provides an understanding of the
factors and their importance throughout the various phases of implementation which in
turn can serve as a useful guide for firms in the process of implementing an ERP system
[103]
In the proceeding of 34th
Hawaii International conference on System sciences IEEE 2001
ldquoTailoring ERP systems A spectrum of choices and their implicationsrdquo Lars Brehm amp
Armin Heinzl M Lynne Markus (2001) depict that the IS literature distinguishes between
custom-built and off-the-shelf software Enterprise resource planning (ERP) packages are
often viewed as off-the-shelf software because adopters implement them by setting
parameters (called configuration) rather than by traditional programming Making
changes to ERP software code (called modification) is usually strongly discouraged by
vendors and implementation consultants Nevertheless field research has shown that
many companies have had to modify ERP software in various ways to meet essential
business needs In this paper they describe a portfolio of tailoring options between
configuration and modification with important implications for implementation risk and
the difficulty of ERP system upgrades but with companyrsquos advantages [16]
20
Babak Akhgar Jawed Siddiqi and Samir Al-Khayatt (2002) summarized their findings in
the article ldquoStrategic exploitation of ERP for e-businessrdquo for the Proceedings of the
International Conference on Information technology Coding and Computing (ITCCrsquo02)
This paper based on research from an ongoing IS investigation project at a large
multinational company examines the relationship between ERP amp E-business The paper
discusses different scenarios of ERP implementation status that organizations may find
themselves It examines the components of e-business success namely visibility of
information processes and technology that will be either enabled or restricted by ERP
What transpires from this research is that for many start-ups e-business becomes
synonymous with business in general Ultimately they conclude that e-business should
form part of the corporate strategy and that IS or IT strategy should form the basis for
determining ERP implementation structures thereby ensuring e-business requirements
become the platform for ERP [2]
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther G Chattopadhyay (2004) The paper
presents research on ERP system characteristics particularly relevant for Small to
Medium Enterprises (SME) Authors investigated the duration of the project phases to
establish the human resource requirements through the selection implementation and
support of the ERP project Common factors that are crucial for an SME in the
manufacturing sector embarking on an ERP system are identified in this paper for system
selection and implementation User survey was carried out for a target group of SME
companies around Brisbane Australia The survey captured both qualitative and
quantitative data relating to the ERP system in place at a target group of electrical and
electronic equipment manufacturing companies located in South East Queensland
Australia Quantitative analysis was carried out on the cost of the ERP selection and
implementation project both in terms of capital outlay and human resources [87]
Reported implementations recognized the benefits of aligning business processes with a
target ERP system in the period prior to the go-live and authors summarize following
points
ERP system as a business tool for growth of SME
21
Critical selection factors unique and realized benefits different for each business
SME having limited resources (money people time) with which to evaluate and
implement ERP
Ongoing costs
Overall success
In the paper study ldquoERP Training Strategies Conceptual Training and the Formation of
Accurate Mental Modelsrdquo Tony Coulson Conrad Shayo CE Tapie Rohm Lorne
Olfman (2003) examined a major determinant of successful ERP implementation end-
user training The study finds that a workflow conceptual advanced organizer strategy
(TCT group) improves end-userrsquos mental model accuracy over time as demonstrated by
the subjectslsquoability to recall ERP specific concepts Results indicate that a conceptual
advance organizer is an important component of ERP training and should be incorporated
into an organizationlsquos training strategy In general the study supported the framework
and found that by adding a tool conceptual knowledge-level to the training the end-users
developed more accurate mental models By using the knowledge-level framework and
incorporating tool conceptual knowledge into an organizationlsquos training design
organizations may see an improvement in overall ERP implementation results For
example because ERP training is very expensive those within an organization that attend
ERP training are often asked to train others in the organization when they return This
study shows that adding a tool conceptual knowledge-level to their training improves
their ability to recall and re-articulate their understanding of the system By building the
knowledge-levels that enable more effective understanding and communication of
concepts learned could be an invaluable asset to any companylsquos training and
implementation strategy [24]
ldquoEnterprise Resource Planning Challenges for Small and midsize Business (SMBs)rdquo
Analyst Katherine Jones (2004) of Aberdeen suggests that small and midsize businesses
are primarily driven by operating cost pressures perceived as the biggest challenge and
their key challenges are
1 Insufficient funding for corporate strategies and initiatives
2 Lack of clearly defined corporate vision and goals
3 Ineffective communication of corporate strategies and initiatives
22
4 Metrics that do not sufficiently provide incentives employees to supportachieve
corporate goals
5 Inability to accurately determine and plan for customer demand
As the immense variability in how SMB companies conduct business still predominates
the SMBs see technology as the enablers of their strategies Specifically cited are the
increased availability of advanced analytics decision support and reporting tools as well
as the availability of process-specific business applications [55]
Christina Soh Sia Siew Kien and Joanne Tay-Yap (2004) through their study on the
subject ldquoCultural Fits amp Misfits Is ERP a universal Solutionrdquo Present early findings
from a larger ongoing study The typology of misfits and examples are drawn from the
review of implementation documents and supplemented by interviews with key project
team members from one hospital [102]
In their White Paper ldquoERP Selection ndash Right Tracking Enterprise Change ITSg-GCPrdquo at
TCS Dr Joginder Singh Lamba amp Swapnil Kitcha (2007) analyzed the fact that
business changes in the form of portfolio expansion structure decentralization and supply
chain integration drive new investments in ERP Besides the need for more functional
areas within the IT landscape (BI CRM PLM and Product Information Management)
demands new interfaces with ERP backbone Heterogeneous compatibility and varied
maturity across modules elicit interest in best of breed solutions in ERP [64]
In ldquoFuture of ERP systems and Microsoft Dynamics Learn about XML and Web
servicesrdquo McKie (2008) discusses what sort of requirements XML and web services put
on business applications He further explains ERP systems need to be able to create
XML schemas (data specifications) and they need to be able to import and export data in
XML documents The more data an ERP user needs to share with business partners the
more important is to have these capabilities In addition to XML McKie identifies a
second type of Web service that offers functionality rather than data is expected to
emerge in the form of business partner integration analytics and alerts [79]
David Caruso (2005) Senior Vice President Industry Research AMR in his article
ldquoProcess Productivity and Profit The SMB Executiversquos Framework for ERP
Investmentrdquo narrated that SMBs which are not aggressively developing an effective ERP
strategy will be at some disadvantage to their peers by 2006 Forward-thinking executives
23
will consider strategic business capabilities as the drivers for enterprise resource planning
(ERP) investment justification In a 2005 study that AMR Research conducted with over
550 companies regarding their ERP investment plans and found that only 27 of small
companies (fewer than 500 employees) are currently using ERP This is in sharp contrast
to the 57 of large companies (500 to 2499 employees) and 70 of enterprise-sized
companies (2500-plus employees) that have operational ERP systems Given this data it
is not surprising that almost 50 of the respondents interviewed will be making
substantial changes to their existing ERP systems over the next 12 to 18 months The
challenge for executives charged with the decision is establishing a powerful context for
making the ERP investment [20] When considering the ERP investment decision from
the perspective of the executive suite there are four overarching drivers that frame what
executives need to consider
1 Productivitymdashgetting the most from your valuable employee assets
2 Connectivitymdashworking collaboratively with your key customers and suppliers
3 Business insightmdashImproving the speed and quality of decision making
4 Total cost of ownershipmdashreducing the cost of owning and operating IT systems
Yong Jean John amp Ki-Henry Yim (2001) in an article ldquoA study on an Environment of
ERP Introductionrdquo includes the role of ERP perception of ERP value ERP plan
direction and also argues various checkpoints as a preview of ERP introduction In
conclusion they list checkpoints in sequence based on the mean values that provides
indications of the relative importance As a result the most important checkpoints were
Performance of Introduction Main Reference Sites Availability of Current Resources
Easiness of Introduction Operation System Past Records of Supply Market Share and
Vendor Size The results shown in this paper has shown strong implications for ERP
vendors Vendor size and market share received the least attention amongs all the
checkpoints described in the study [125]
One step forward IQMS Executive White Paper (2007) ldquoHow Successful ERP Selections
are Made ldquo this paper is not just about want and donrsquot want from the various people in
the organization It suggests that it should be a long lasting purchase that provides the
users the feeling of a partnership As the user is not just buying software they are also
buying into a vendor and their company culture The combination of software capability
24
and vendor credibility should be a major purchasing factor There is more to a lasting
ERP purchase than that There are several platform thoughts on technology how many
vendors are included the demonstration the always useful buzz words with all the hype
on service oriented architecture (SOA) best of breed lean manufacturing and all the
other phrases floating in the industry today implementation time customer referrals
customer retention look at your company objectively etc [49]
Robert C Beatty amp Craig D Williams (2006) in ldquoBest Practices for Successfully
Implementing an ERP Upgraderdquo maintain that an ERP upgrade is deceptively complex
and can be daunting especially for organizations ignorant of the massive effort required
to do it correctly One study of mid-size to large companies conducted by AMR Research
found that 67 of these companies are implementing some form of ERP while another
21 are evaluating potential ERP systems solutions As a growing number of companies
adopt ERP systems ERP systems implementation and upgrades are identified as one of
the top five IT priorities among global CIOs according to independent surveys conducted
by Morgan Stanley and Deloitte amp Touche IDG Research Services Group In
conclusion this article provides organizations with a list of the eight most common
recommendations suggested by organizations that have already completed at least one
upgrade to their initial ERP implementation [11] These are
Finding 1 Build your business case on new functionality
Finding 2 Treat the upgrade like a new project
Finding 3 Keep the team together
Finding 4 This is a business project not an IT project
Finding 5 Watch for hidden infrastructure costs
Finding 6 Un-customize customizations
Finding 7 Test like your organizationrsquos future success depends on it
Robert Davison (2002) raises a valid point through his article ldquoCultural Complications of
ERPrdquo discussed cultural misfits from a Singaporean perspective This implies that a one-
size-fits all or one-business-model- fits-all approach is unlikely to be successful As much
of ERP literature originates from and describes application contexts in North America
and to a lesser extent Western Europe where most ERP developers are located and
implementations have occurred Developers and consultants need to adapt their products
25
and services for different cultural markets Awareness of cultural differences and prefer-
ences will certainly improve the assessment of ERP suitability and any subsequent
implementation [27]
A group of researchers Siew Kien Sia May Tang Christina Soh Wai Fong Boh (2002)
from Information Management Research Center Nanyang Business School in their
research paper ldquoEnterprise Resource Planning (ERP) Systems as a Technology of Power
Empowerment or Panoptic Controlrdquo explores ERP as an ambivalent technology of
power According to them on the one hand it may tighten management control by
bringing a new level of panoptic visibility to organizational activities on the other hand
the embedded business model within the ERP may drive empowerment of employees and
greater control relaxation through the configuration of new process design This research
seeks to understand how the different forces play out in the context of ERP
implementation and to explore the implications for traditional power distribution in
organizations It adopted a mixed qualitative-quantitative methodology in an intensive
case study of a restructured hospital in Singapore A survey of 260 users was
administered supplemented by approximately 27 hours of individual interviews with 23
people Results reveal that although ERP can facilitate both empowerment and panoptic
control management has consciously resisted empowerment by working to reinstitute the
power lost through the ERP implementation On the other hand the new panoptic
visibility though partially unintended appears to have evolved naturally and was readily
learned and applied in the organization This study is significant in exposing the
likelihood of ERP implementation as a technology that perpetuates management power
At least in the context of the hospital studied it is yet another means of enlarging the
management authority for ldquototal controlrdquo Current articulations of ERP by practitio-
nersmanagement as empowering thus appear to be more theoretical than real This is
consistent with the perspective of critical theorists (eg Sewell amp Wilkinson 1992
Weber 1947 Tannenbaum 1968) that organizational life will become increasingly
rationalized and more controlled Thus the findings support the critical perspective in
exposing the likelihood of ERP implementation to perpetuate management power Being
a single case study the external generalization of the above analysis is limited Future
research should be sensitive to the formative context (eg the nature of the pre-existing
26
structure the Asian cultural context) and the distribution of authority among
organizational actors (eg presence of management intention) in an organization The
dynamics of panoptic control and empowerment during ERP implementation may be
different in organizational transformation contexts or in organizations with more fluid or
organic pre-existing structures It may also be interesting to follow the analysis of
panoptical and empowerment over an extended period to get a better understanding of
their continuously evolving dynamics [98]
Suprateek Sarker and Allen S Lee (2003) in the paper ldquoUsing a Case study to test the
role of three key social enablers in ERP implementationrdquo indicate that three key social
enablersmdashstrong and committed leadership open and honest communication and a
balanced and empowered implementation teammdashare necessary conditionsprecursors for
successful ERP implementation In a longitudinal positivist case study we find that
while all three enablers may contribute to ERP implementation success only strong and
committed leadership can be empirically established as a necessary condition This
presents a challenge to future ERP researchers for resolving apparent contradictions
between the existing literature and the results of our analysis and for investigating the
nature of interactions among the leadership communication and team characteristics
[93]
Srinivas Mantha (2007) in the article ldquoERPndashBusiness Processes with IP
Communicationsrdquo explained the fact that the key to new competitive capability is
envisioning the enterprise in terms of business wide relationships to improve user
experience across the network exploit knowledge and enhance and accelerate core
processes IP Communications is the catalyst for this capability It enhances the value of
the user experience exploits knowledge value and increases the value of business
processes [76]
Linda Askenaumls amp Alf Westelius (2000) from Linkoumlping University Sweden explore
a new vista of ERP through their literature ldquoFive Roles of an Information System A
Social Constructionist Approach to Analyzing the use of ERP Systemsrdquo This paper
presents a novel way of thinking about how information systems are used in
organizations Traditionally computerized information systems are viewed as objects In
contrast by viewing the information system as an actor our understanding of the
27
structure process increases The user being influenced by the ERP (Enterprise Resource
Planning) system and giving it an actor role thereby also confers agency on the ERP
system Through its very use it influences actions and thus the structure as well Based
on a case study of ERP use in an ABB company for over a decade five different roles
played by the ERP system were identified The ERP system acted as Bureaucrat
Manipulator Administrator and Consultant or was dismissed (Dismissed) in the sense
that intended users chose to avoid using them In conclusion the purpose of this approach
is not to ldquoanimaterdquo the information system to give it life or a mind of its own but rather
to make explicit the socially constructed roles conferred on the information system by
users and others who are affected by it On this basis it is possible to suggest how the
roles can help us opening up the new areas of exploration concerning the fruitful use of
information technology [70]
Jinyoul Lee Keng Siau and Soongoo (2003) conducted a study on the topic ldquoEnterprise
Integration with ERP and EAIrdquo They state that to survive and thrive in these hypercom-
petitive markets it is essential for a company to understand rapidly changing business
circumstances To rapidly respond to a changing environment an enterprise must
integrate business functions into a single system efficiently utilizing information
technology and share data with third-party vendors and customers While ERP forces the
adoption of standard business processes EAI enables enterprise integration over business
object levels ERP thereby supports a centralized business strategy while EAI naturally
accommodates decentralized business processes Lastly they observe the fact True
enterprise integration means both technical and behavioral integration It is not simply
integrating different systems applications or business processes dispersed across an
enterprise It is integrating structural changes different behaviors and various
information systems in an enterprise Enterprise integration is costly and time-
consuming thus management should be cautious in the design of the project
Organizations should not blindly rush into new technologies Top management should
first strive to understand their business and needs for enterprise integration and then
select a methodology of enterprise integration [68]
Wilhelm Scheer and Frank Habermann (2000) in ldquoMaking ERP a Successrdquo have used
business process models at an operational level of e-business to achieve positive results
28
They have talked of different scenarios in e-business As in Business-to-Business
applications such as Supply Chain Management the user has to connect the ERP systems
of all business partners This means he has to fight not only with the thousands of
parameters of a single ERP system but with twice as much (or even more) Another likely
scenario is that the business partners involved in an inter-organizational supply chain are
using ERP systems of different vendors In this case a business process model can be
firstly used to define the conceptual value chain Secondly the conceptual model that is
independent from a certain software vendor can be linked to the repositories of the
different ERP systems in order to customize an integrated software solution These
examples demonstrate that business process models play a major role for the success of e-
business Some ERP vendors like SAP have understood this development and are already
implementing their first model-based e-business applications [94]
Ash CG (2001) in An e-Commerce Model for Extending ERP Systems onto the
Internet An Australian Perspective stated that an established research framework of e-
Business change is used to identify the factors for success of this e-business project
within an ERP environment The results confirm that a successful project was found to
have facilitators in all components of the business framework including the change
environment and project management Further there is the implication that the least
successful e-business projects will have inhibitors in both dimensions especially in the
area of cultural readiness and change management In this case study conflict arose
between local project management initiatives versus a centralized autocratic global ERP
deployment This highlights the need to encourage the balancing of conflicting
organizational knowledge when contemplating the adoption of e-business solutions [7]
Huigang Liang Yajiong Xue William R Boulton Terry Anthony Byrd (2004) ldquoWhy
Western Vendors donrsquot dominate Chinarsquos ERP Marketrdquo Examined cases of failed ERP
system implementation in China and explaining the unique circumstances These foreign
ERP implementation failures emphasize the need to localize strategies even for the
global ERP leaders The general manager of a foreign ERP vendor explained ldquoOne
should understand nationrsquos history and its culture before one starts doing business with
foreign companiesrdquo The cases of failed implementation suggest global ERP vendors
require more than superior technology and experience Their ERP strategies must also
29
address the cultural differences affecting ERP implementations Strategies need to
overcome problems relating to language reporting formats and content cost control
capabilities frequent business process redesigns effective customer support and capable
consulting partners [69]
In the research findings ldquoAn Agency Theory Model of ERP Implementationrdquo Vedabrata
Basu Albert L Lederer (2004) develop a model of testable propositions for applying
agency theory to study the relationship between implementation consultants and client
organizations deploying the ERP systems and to consequently evaluate how the
relationship affects the implementation success Therefore management needs to know
the factors that drive successful ERP implementation a product of the continuous
interaction between the implementation consultants and client firms Agency theory has
been successfully used by different researchers to explain relationships between two
parties seeking a common outcome This paper develops a conceptual model with the
variables and relationships that may play a critical role in explaining the sources of that
frustration It offers a foundation for research that can extend the applicability of agency
theory can help clients and consultants manage their relationships during the
implementation process and thus help them enhance the probability of ERP systems
implementation success It may also be useful for managing other outsourced IS projects
that have implementation settings similar to ERP [10]
Christian Vogt (2002) ldquoIntractable ERP A Comprehensive Analysis of Failed Enterprise-
Resource ndash Planning Projectsrdquo makes an analysis of possible causes that led to the
disasters for ERP implementation failures and suggests software engineering processes
that help avoiding such outcomes The Model Based Architecting and Software
Engineering (MBASE) guidelines developed by Prof Barry Boehm and Daniel Port at
the Center for Software Engineering (CSE) at USC provide a base for these elaborations
for a long time SW Engineering experts have praised commercial-off-the-shelf (COTS)
packages as the panacea to complex software development Far from it the elaboration
in this survey shows that the deployment of COTS packages may be extremely intrinsic
one does not know whether some COTS software adheres to its interface specifications or
how deficient it is or how well its performance scales up as workload demand grows
The upshot is that COTS software will always be an alien element in the software to be
30
developed and it should be considered that way Dye-in-thendashwool COTS package ERP
systems exhibit plenty of dangers Only if appropriate risk management and enough time
for stepwise employment is provided for ERP system can be tamed [115]
In the research findings ldquoImplementing Best Practices in ERP for Small amp Medium
Enterprisesrdquo Rashmi Jha A K Saini and M N Hoda (2008) provides an interesting
insight into taking ERP implementation as a project and develops problem driven
approach to examine its complex phenomena The implementation process will be
divided into several components which will reflect the nature of ERP projects and makes
them distinctive from other systems design methods This paper also addresses critical
issues relating to developing entrepreneurship for sustainable development of small and
medium size enterprises(SMEs) for its future extensions and added benefits It may also
be useful for managing other outsourced Information System (IS) projects that have
implementation settings similar to ERP [53]
Saumyendu and Maya Daneva (2003) in ldquoLessons Learnt from Five Years of Experience
in ERP Requirements Engineeringrdquo summarizes one companyrsquos five years of experience
in making a generic ERP RE model a live process It rests on previously published ERP
RE process assessment results and reports on what we learnt with particular focus on
typical issues organizations face when adopting a standard model and solutions that can
be used to avoid those issues in the future Each of our lessons is described together with
a RE practice technical foundation for the practice and engineering techniques for the RE
practitioner The lessons were used to refine our Corporate Documentation Model a
process-focused and template-based ERP-architecture framework [40]
In ldquoResearch on Agent-Based Architecture of ERP For Small amp Medium-Size
Enterpriserdquo Rui-Xue Fu Zhan-Hong Xin and Can Chen (2007) suggests that with the
rapid development of information technology and the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward To address these problems a MAERP system architecture has been developed
in which the agents are classified into four types F-Agent for realizing an operation
application C-Agent for coordinating with other agents I-Agent for a communication
31
tool between the user and the MAERP system and T-Agent for performing specific tasks
and data collecting [35]
Xavier Franch and Juan Pablo Carvallo (2003) in the research paper Using Quality
Models in Software Package Selection found that the absence of structured descriptions
of quality features and user quality requirements makes selecting the right software
package difficult The authors propose a methodology for describing the quality features
of domain-specific software packages uniformly and comprehensively using ISOIEC
9126-1 quality standards as a framework [34]
In the paper study ldquoRevisiting ERP Systems Benefit Realizationrdquo Paul Hawking and
Andrew Stein (2004) maintains that many companies initially implemented their ERP
systems to solve Y2K and disparate systems issues These same companies are now
looking at a how to strategically leverages their investment in these systems through the
implementation ldquosecond waverdquo functionality This paper identifies the expected and
actual benefits of ldquosecond waverdquo implementations In addition it identifies barriers which
limit the benefit realization The findings reinforce that ERP implementations are people
focused projects which rely heavily on change management for success [45]
Hamid Nach and Albert Lejeune (2008) ldquoImplementing ERP in SMEs Towards an
Ontology Supporting Managerial Decisionsrdquo state that the purpose of this research
project is to consolidate and formalize as ontology on the basis of an extensive literature
review the key processes and skills required for successful implementation of ERP in an
SME Using the Proteacutegeacute software program the research identified and formalized 395
terms each of which has its own definition Exploitation of this ontology could take
multiple and varied forms including creation of a learning system an on-line cooperation
platform or a project management process mapping tool contributing to successful use of
ERP in SMEs [81]
While Gul Tekin Temur and Sitki Gozlu (2008) ldquoDetermination of Performance Criteria
for ERP Software Technologyrdquo mention that the main goal is to determine the
performance criteria for ERP software technology with respect to their sources Today
the companies are in interaction with many internal and external partners and have to face
many situations in various environments Especially many small and medium sized firms
utilize ERP software technology to plan their business interactions in the chain In this
32
study firstly a literature search is accomplished Then in order to reveal the performance
criteria a large-scale automotive company has been selected to conduct interviews with
managers Also the meeting reports of a few small and medium-sized companies have
been analyzed As a result of the analysis on findings the common views of the firms
about performance criteria are classified into four groups according to their sources such
as people technical managerial and economical The sub factors of these main criteria
are also taken into account in order to point out the origins of the criteria The results of
the study will provide insight to researchers and as well as to professionals in the practice
[108]
Maya Daneva (2004) in ERP Requirements Engineering Practice Lessons Learned
mentioned the fact that organizations implementing Enterprise Resource Planning (ERP)
systems have been increasingly adopting generic off-the-shelf requirements engineering
(RE) process models Yet little information exists about the challenges of making a
generic RE model a life process This article discusses why bringing an off-the-shelf
process in is not a sufficient foundation The author shares experiences acquired over the
past five years of eliciting modeling and validating requirements in ERP projects and
highlights typical issues and their solutions Among the keys to success are planning RE
model use in the clients context and installing processes to support key RE activities [25]
While the article ldquoRescuing Troubled Software Projects by Team Transformation A
Case Study with an ERP Projectrdquo by Kim Man Lui and Keith C C Chan (2008)
differentiates various reasons of ERP project failures It further states that many software
projects fail whether failure is measured in terms of budget schedule or some other
requirement The causes of such failures are many but are not always easily recognized
This is not the least due to the human dimension of corporate activities as spurious or
misdiagnosed issues in Enterprise Resource Planning (ERP) projects can take on a life of
their own and become a magnet for company politics This paper reports an industrial
case in which the senior management attempted to deal with a troubled ERP
implementation (SAP R3) in an international fast moving consumer goods (FMCG)
company during 2001 and 2002 This paper reflects this dimension as it uses original
emails and PowerPoint slides to recount a number of representative episodes in a troubled
but ultimately successful project At the heart of this success is the realization that
33
whereas it can be difficult and time-consuming to do root-cause analyses it is relatively
simple to identify problem owners In this case the senior management without IT
backgrounds turned around a failing project by reorganizing the team structure according
to process areas so that issues in each process area had one problem owner We
summarize the managementrsquos actions into a troubleshooting framework and in addition
suggest three actions for rescuing troubled projects keep the project manager but narrow
down the managerrsquos scope of responsibility to one or two process areas assign the right
people to be responsible for other process areas and have the General Manager chair the
ERP meetings [60]
In the PICMET 2006 Proceedings on ldquoOptimizing the Change Management of Enterprise
Resource Planning Systems Implementationsrdquo Onur Kerimoglu and Nuri BaUogluI
(2006) maintain that although Enterprise Resource Planning (ERP) systems are being
used widely all around the world they also carry out many problems as well as their
benefits These systems are well known for enhancing cross functional efficiency and
effectiveness through the integration of all information flowing throughout an
organization However during different project life cycle stages of ERP systems this
integration may not be provided because of the formulation of incompatibilities which
are greater than the optimum level among different parties like ERP system processes of
the organization and system users Within this study existing incompatibilities between
these parties are modeled respectively In common the model propose that the ERP
product mostly matching with the processes of the organization should be selected
processes of the organization should be changed for being compatible with the ERP
system and system users should be educated new qualified people should be hired etc
for making the system and processes more familiar to people Here the point is that all of
these are done for keeping incompatibilities between the ERP system processes and
people at minimum level because this minimalism will avoid optimization and utilization
problems This study not only handles problems of ERP from a newer perspective but
also provides insight to managers about managing the change and utilizing their resources
efficiently for adopting the ERP software across the organization [59]
Capaldo Guido and Rippa Pierluigi (2008) in ldquoA methodological proposal to assess the
feasibility of ERP Systems Implementation Strategiesrdquo stated that Continuous failures in
34
ERP systems implementation project are today the main challenge in the feasibility of
integrated information systems Failure can be determined by different factors both from
technological side and organizational side if not well managed In this paper we propose
a methodological approach based on technochange management in order to assess the
feasibility of ERP implementation strategy and reduce the risk of failure in terms of
project metrics and early operational metrics A case study in a big Italian
Telecommunication Firm will be presented [19]
ldquoCase Study of PLIVA Pharmaceuticals Inc - Aligning ERP System Implementation
with Business Process Changerdquo is very relevant and contemporary paper presented by
Vesna Bosilj Vuksic and Mario Spremic (2004) The main objective of this paper is to
present the impacts of information technology (IT) and enterprise resource planning
(ERP) systems in business process renovation projects A case study of business process
reengineering project and the implementation of the SAP software solution in PLIVA
(PLIVA pharmaceuticals Inc) are presented [116]
In ldquoKey Factors Driving the Success of Technology Adoption Case Examples of ERP
Adoptionrdquo Chonyacha Suebsin and Nathasit Gerdsri (2009) address the issues that
impact technology adoption within an organization Several factors influencing
technology adoption process are identified from the literature review Case examples of
the adoption of a new management technology Enterprise Resource Planning (ERP) are
presented to illustrate the situations of technology adoption in organizations From the
case examples the factors influencing technology adoption in organizations are
consistent with the factors identified from the literatures The further discussion also
reveals the additional determinants including the clarification of project scope individual
commitment and communication which should be taken into consideration when an
organization adopts a new technology [105]
Maya Daneva (2002) in her paper ldquoUsing Maturity Assessments to Understand the ERP
Requirements Engineering Processrdquo mentions that applying standard requirements
engineering (RE) processes is a major trend in todayrsquos Enterprise Resource Planning
(ERP) software engineering It emerged five years ago with the promise to provide a
mechanism helping ERP project organizations deliver their business requirements timely
and within budget This paper looks in depth at a standard ERP RE process and seeks
35
answers to four questions how well it is defined what are the risks associated with its
application in matureimmature organizations what are the essential practices that
contribute to its success and what are the costs of the process and the quality of the
delivered results The main motivation of this paper is to provide some practical advice
for using assessments to increase project teamsrsquo understanding of the ERP RE process
[26]
Fan JC and Kwoting Fang (2006) ldquoERP Implementation and Information Systems
Success A Test of DeLone and McLeans Modelrdquo present their research that develops
and tests a theoretical extension of DeLone and McLeans model of information system
(IS) success which explains personnel belief that contributes to users utilization of ERP
(enterprise resource planning) systems The extended model is tested using the structural
equation model (SEM) a survey of 202 end-users from ten Taiwanese enterprises that
has implemented Data Systems workflow ERP systems is conducted The theoretical
model proposed in this study provides insight into how the concept of useful perception is
incorporated into DeLone and McLean model and plays a critical mediated role to
influence system usage and its associated satisfaction The implications of these findings
for researchers and practitioners are discussed [32]
In the research findings ldquoManaging ERP Implementation Failure A Project Management
Perspectiverdquo Charlie C Chen Chuck C H Law and Samuel C Yang (2008) stated that
Information Technology (IT) projects are susceptible to changes in the business
environment and the increasing velocity of change in global business is challenging the
management of enterprise systems such as enterprise resource planning (ERP) At the
same time system success depends on the rigor of the project management processes
Scope creep poor risk management inadequate allocation of human resources over time
and vendor management are some common problems associated with the implementation
of an enterprise system These issues pose threats to the success of a large-scale software
project such as ERP This research adopts a case study approach to examine how poor
project management can imperil the implementation of an ERP system Having learned
the lessons from the failure of its first ERP implementation the company in this case
reengineered its project management practices to successfully carry out its second ERP
implementation Many critical project management factors contributed to the failure and
36
success of this companyrsquos ERP system This study explores and identifies critical
elements of project management that contributed to the success of the second ERP
implementation For those organizations adopting ERP the findings provide a roadmap
to follow in order to avoid making critical but often underestimated project management
mistakes [21]
Rafa Kouki Robert Pellerin and Diane Poulin (2008) in An Exploratory Study of ERP
Assimilation in Developing Countries The Case of Three Tunisian Companies assessed
that ERP systems could be considered as the most difficult systems to be assimilated
Very little research however has been realised to investigate the determinants of success
of the ERP assimilation process There has been also a dearth in research about ERP
projects in general and ERP post-implementation and assimilation in particular in
developing countries Using a case study methodology grounded in the diffusion of
innovation theory this study tries to understand the factors that could improve or
challenge the ERP systems assimilation process in three Tunisian companies Our
findings highlighted the importance of several factors such as top management support
strategic alignment IT expertise training communication organizational culture and
coercive pressures [62]
Ian Sommerville (2008) Construction by Configuration Challenges for Software
Engineering Research and Practice observed that past ten years have seen a radical shift
in business application software development Rather than developing software from
scratch using a conventional programming language the majority of commercial
software is now developed through reuse ndash the adaptation and configuration of existing
software systems to meet specific organizational requirements The most widespread
form of reuse is through the use of generic systems such as ERP and COTS systems that
are configured to meet specific organizational requirements In this paper he discussed
the implications of software construction by configuration (CbC) for software
engineering Based on his experience with systems for medical records and university
administration he highlighted some of the issues and problems that can arise in
construction by configuration he discussed problems that arise in CbC projects and
identify a number of challenges for research and practice to improve this approach to
software engineering [104]
37
SV Deshmukh and RR Lakhe (2008) in the research paper ldquoSix Sigma ndash An Innovative
Approach for Waste Reduction A Case Study of an Indian SMErdquo present a case study
aimed at reducing waste at an SME engaged in manufacturing of corrugated boxes The
Define Measure Analyze Improve Control strategy of Six Sigma methodology was
followed to identify probable causes for wastages After studying the system and
implementation of six sigma tools an overall 227 waste reduction was achieved
Individually out of a total seven processes 5 showed waste reduction in excess of 40
This reduction was statistically significant at Plt005 The study confirmed successful
implementation of six sigma to minimize waste generation and in terms saving in
manufacturing costs or increasing the bottom line [29]
While in ldquoERP Implementation Critical Success Factors - The Role and Impact of
Business Process Managementrdquo Yasar F Jarrar Abdullah Al-Mudimigh and Mohamed
Zairi (2000) investigate the role and impact of business process management in
successful ERP implementation The paper starts by defining business process
management ERP and the ERP critical success factors The impact of business process
management on successful ERP implementation is then assessed through looking at the
experiences of several organizations The paper concludes by highlighting best practices
for capitalizing on business process management for successful ERP implementation
[52]
M S Camara L Kermad and A El Mhamedi (2006) in the paper ldquoRisk Prediction in
ERP Projects Classification of Reengineered Business Processesrdquo maintain that
Companies have been implementing ERPs for almost ten years now and more the same
implementation problems continue to occur More and more ERP projectrsquos technological
challenges are accompanied by critical dimensions related to the management of the
transformational effects of these projects on the organization Indeed risk management in
this kind of project is not very structured and misses specific methods In this article they
propose a structured methodology for risk management particularly in the BPR (Business
Process Reengineering) sub-project of ERP implementation The final aim of our work is
to decease appreciably resistance to organizational change which poses the greatest
obstacle to business process reengineering efforts They propose to adapt OSR (Optimal
Set Reduction) a risk management method used in software development for the risk
38
management in ERP implementation They address specially the risk related to the
changes in enterprise processes in the ERP project To achieve this objective they
propose to define business process change metrics starting from business process
complexity metrics that exist in the literature [18]
ldquoExploration and Verification of Factors in the Front-end Stage of the ERP
Implementation Process Evidence from Case Study and Survey Researchrdquo Kun Shi and
Qiang Lu (2009) depict that ERP (Enterprise Resources Planning) is widely used to
improve business performance This paper explores how the factors associated with the
Front-end ERP Implementation Process (FEIP) affect the implementation outcome First
based on literature review a preliminary framework with 12 hypotheses is developed
Then Grounded Theory is applied for a case study to further extract and verify the factors
and sub-factors These factors are finally identified as strategic planning corporate
culture user characteristics organization-process-system maturity external expertise
engagementsupport and project preparation Furthermore the significance and
correlation of all the factors are detected by conducting survey research with SPSS as a
tool for analysis The study shows that the framework is valid and that among six three
factors have strong impact on the ERP implementation result whereas others are less
influential Implication is given and limitation is indicated at the end [63]
Huo Lingyu Liu Bingwu and Li Juntao (2009) in the paper ldquoAn ERP System Selection
Model Based on Fuzzy Grey TOPSIS for SMEsrdquo present a new fuzzy multi-criteria
decision making (FMCDM) approach which integrates the technique for order preference
by the similarity to ideal solution (TOPSIS) grey relation and fuzzy set theory for
enterprise resource planning (ERP) system evaluation and selection in the Small and
Medium-Sized Enterprises (SMEs) In this study the characteristic of the alternative with
respect to the criteria are represented in terms of a linguistic term set and the weight of
the criteria is described by triangular fuzzy numbers respectively According to the grey
theory and fuzzy set theory a closeness coefficient is defined to determine the ranking
order of all alternatives by calculating the grade of grey relation to the fuzzy positive-
ideal solution (FPIS) and fuzzy negative-ideal solution (FNIS) simultaneously Finally
an example is shown to highlight the procedure of the proposed method [48]
39
Gao Juntao Zhang Li Wang Zhiyao (2008) summarized their findings in ldquoDecision
Support for Handling Gaps between ERP functionalities and Organizational Needs A
Goal Reasoning based approachrdquo They found that in the process of selecting
commercial off-the-shelf (COTS) ERP systems it is inevitable to encounter gaps between
ERP software and organizational needs Gaps occur when COTS attributes do not exactly
match organizational needs and they make organizational users and software vendors in
the dilemma whether to adapt as-is business processes or to customize software
packages A decision support method for handling gaps is proposed in this paper Firstly
organizational goal-process models are built as the base for decision making Secondly
the idea of evidence theory is introduced into goal reasoning and a quantified algorithm is
proposed to evaluate the impacts of different business processes on high level goals
which are critical to make decision At last the risk is discussed to rank intervals which
specify the expected utilization of business processes [56]
Yvonne Dittrich and Sebastien Vaucouleur (2009) conducted a research on the topicrdquo
ERP Customization as Software Engineering Knowledge Sharing and Cooperationrdquo and
argue that Enterprise resource planning (ERP) systems must be configured and
customized to fit a specific company The authors discuss cooperation with regard to ERP
systems customization Enterprise resource planning (ERP) vendors provide multiple
configuration possibilities ranging from module selection to master data provision to
steer access rights for different users These configuration possibilities cover anticipated
variability If the customer requires adaptation beyond whatrsquos anticipated the source
code of the product must be adapted Customizations in this articlersquos context are source-
code-based adaptations of software products The size and complexity of customizations
range from simple report generation to developing independent add-ons that support
specific businessesmdashfor example solutions for flight carriers The size and lead time of
such projects can compare to a full-size software development project They present
empirical research on customization practices of ERP systems as an example of software
development based on customization of standard software They compared customization
with other development practices that are based on integrating existing code and results
underlined the need to rethink software engineering and programming methods and tools
[129]
40
In the paper study ldquoSignificance of Software Metrics in ERP Projectsrdquo S Parthasarathy
and N Anbazhagan (2006) narrate that ERP projects are a subclass of software projects
often accompanied by large-scale organizational changes One of the major reasons found
in the literature for the failure of ERP projects is the poor management of software
processes In this paper we propose a Software Metrics Plan (SNP) containing different
software metrics to manage software processes during ERP implementation Two
hypotheses have been formulated and tested using statistical techniques to validate the
SNP The statistical analysis of the collected data from an ERP project supports the two
hypotheses leading to the conclusion that the software metrics are momentous in ERP
projects [84]
Antony Marsh (2000) in the article ldquoThe implementation of Enterprise Resource Planning
systems in small and medium Manufacturing enterprises in south-east Queensland a case
study approachrdquo examines the implementation of ERP systems in smallmedium-sized
enterprises in South East Queensland Australia Nine case studies were conducted to
determine factors for success or failure in the implementations Key success factors
identified included cross-functional team approaches organizational experience of
similar scale IT or organizational change projects and lsquodeeprsquo understanding of the key
issues relating to ERP implementations Failure factors identified included top-down or
consultant driven implementations IT department driven implementations or
implementations where the EFV is seen as a quick technological fix to problems within
the operation of the firm rather than as a strategic investment [78]
Christian Doumlrner Sebastian Draxler Volkmar Pipek and Volker Wulf (2009) through
their study ldquoEnd Users at the Bazaar Designing Next-Generation Enterprise Resource
Planning Systemsrdquo propose that the bazaar metaphor has developed a lasting
popularity in software engineering especially as software architectures have evolved
from monoliths to service orientation Nevertheless the metaphor is limited because it
doesnt consider end users those who develop software for themselves Introducing such
an end user the prosumer to the bazaar not only suggests a changing division of work
in software development but also calls for different functionality and architectural
choices The authors evaluated changing software architectures from an end-user
development (EUD) perspective taking the case of enterprise resource planning (ERP)
41
systems as traditionally monolithically designed systems moving toward service
orientation On the basis of the studys findings which indicated problems with the
systems technical flexibility the authors developed a tool set for fostering EUD
activities Their new architecture for ERP systems enables end users to create their own
solutions [31]
Kenny KF Lee (2000) in ldquoThe Five Disciplines of ERP Software Implementationrdquo has
identified the critical factors in businesses which learn grow and succeed This paper
applies the central concepts of the book its five disciplines to the software business
specifically the management of software implementation Using the learning challenge
posed by the organization-wide implementation of Enterprise Resource Systems (Em) the
paper covers how EM software project leaders may manage themselves their teams
business vision and corporate culture and team members to create a survival machine
which can thrive in the current economic and technological climate [67]
Piet MA Ribbers amp Schoo (2000) in his paper ldquoDesigning Complex Software
Implementation Programsrdquo raises a central question that how one can design of Program
Management contributes to the success of complex software implementations
Incomplete goal specifications lack of communication and underestimation of project
complexity are signs of insufficient program and project management To avoid these
pitfalls he proposes ways that have worked well in recent complex multi-project ERP
implementations (programs) Answering the above question raises the problem of
adequately defining and measuring the level of complexity of an implementation
program A conceptual model was developed which identifies program management
factors that are proposed to have an impact on implementation success Fifteen cases
were studied to find support for the proposed framework [88]
ldquoDetecting Gaps between ERP Software and Organizational Needs A Semantic
Similarity Based Approachrdquo is very relevant and contemporary paper presented by Gao
Juntao and Zhang Li (2008) It depicts that Gap analysis is one of the most important
phases in implementation of enterprise resource planning (ERP) system In this paper an
approach is proposed to automatically detect gaps between software capacities and
organizational needs based on semantic similarity computation The approach takes two
business process models as input and one specifies software capacities and the other
42
describes organizational needs The output of it is a report of gaps As a matter of fact
the differences between application domain and software discipline make semantic
heterogeneity a key problem in gap detection therefore the technologies of semantic
similarity computing are employed to resolve ambiguity issues caused by the use of
synonyms or homonyms In particular the idea of similarity propagation is introduced to
pick out a mapping between corresponding activities and data and Hungarian algorithm
is employed to reduce its time complexity Then the similarity of whole models is
measured according to the minimal total cost of change operations Finally an
experiment is given to evaluate the method [36]
In the research publication ldquoERP System Adoption - Does the Size Matterrdquo Sanna
Laukkanen Sami Sarpola and Petri Hallikainen (2005) investigate the relationship of
enterprise size to the constraints and objectives of ERP systems adoption The survey
data based on the responses of 44 companies indicates that significant differences exist
between small medium-sized and large enterprises in ERP system adoption Specifically
the findings suggest that small companies experience more knowledge constraints than
their larger counterparts in ERP adoption Further while being the most prevalent
objective for ERP adoption in all the company groups business development through
ERP adoption is considered especially important by the medium-sized and large
enterprises Finally the findings of the study suggest that instead of considering small
and medium-sized enterprises as one homogenous group the differences between these
two groups of companies should be acknowledged in the future research [65]
In their paper ldquoModel Based on CSCWrdquo Wedian Liang XuFen Zhenkun Li Rong Xiao
JunFeng Hu (2005) summarise their finding They feel that Software testing is an
important component of the software engineering and an important link that the software
development quality is guaranteed Using the reasonable model for software testing can
reduce the expenses of testing in the developing activity in the course of testing thus cut
down the cost of software development In this paper we put forward a model for
software testing bused on CSCW technology that run through each stages of software
development cycle If can find the mistake in the software as soon as possible has
shorten the time taken for testing in the course of the development of software testing
43
effectively Finally we applied the model to the testing project which develops ERP
system and then receive the ideal result [118]
In their paper ldquoThe Research and Development of IMIS for Small and Medium-sized
Printing Enterpriserdquo Taolin Ma Xiaoming Chen Yansong Sun Xiurong Li (2009)
analyzed the fact that the basic management thought of inventory management
information system (IMIS) was established by analyzing the inventory management
theory of modern enterprise In this system which using the architecture of CS the stores
were classified by ABC management method the inventory control was completed by
setting up the safety stock and the largest stock the analysis and design of IMIS were
finished This IMIS was developed to meet the practical requirements of small and
medium-sized printing enterprise in our country It can not only be used as the important
measure of the informationized construction for small and medium sized printing
enterprise but also used as a subsystem of enterprise ERP system IMIS could improve
enterprise management level realize rapid transformation of enterprise and finally
enhance the competitiveness of enterprise in market economy [106]
Jiangao Deng and Yijie Bian (2008) in the research paper ldquoConstructing a Risk
Management Mechanism Model of ERP Projectrdquo mention that in the process of
information project implementation of manufacturing enterprises there are many risks to
set up a set of risk management mechanism is guaranteed for them to succeed in ERP
implementation Firstly based on the analysis of ERP project implementation of China
the paper introduced the risk management methodology systems and the relative model
which includes three main steps identifying risk evaluating risk and controlling risk
After that on the aspects of decision implementation and application stages of
manufacturing ERP project life cycle the paper discussed risks of each stage and put
forward a two-dimension matrix risk management strategy Then a mechanism model of
ERP project risk management is constructed which shows that information risk control
strategies of the last two stages not only depend on resources of these stages but also
have a diverse relationship with the last stage Finally according to the successful
implementation of an enterprisersquos ERP project the paper carried out an effective case
application analysis of risk management mechanism model The lack of improvement in
usersrsquo ERP skill levels and the shortage in documenting the rationale for business rules
44
and configuration decisions were among the critical issues of the post-implementation
stage Indeed all of their respondents stressed the importance of refreshing the usersrsquo
knowledge about the system [28]
Saumyendu Ghosh (2003) in ldquoGlobal Implementation of ERP Software ndash Critical Success
Factors on Upgrading Technical Infrastructurerdquo discusses that implementing an
Enterprise Resource planning (ERP) software in a global environment executive
sponsors face two key challenges While business processes are to be re-engineered to
align with the ERP software best practices technical architecture and infrastructure needs
to be in place globally as per specifications of the packaged software In the legacy
environment different countries or different business units use different systems based
on local standards supported by local resources In the new ERP world globally all the
countries must conform to same technical infrastructure Technical managers face
multiple critical issues implementing a global solution Most of the ERP software is
developed in technically advanced countries standards are often too high for under
developed or developing countries In an effort to bring the global organization to a
common platform different countries need different levels of upgrades In this paper the
authors review key technical issues faced is a global upgrade process to support a global
ERP implementation and how to resolve those We conclude although technical
infrastructure and business process reengineering both are equally important and each
implementation is unique but following some simple steps it is easy to prioritize each
ones during different phases of the project Also time lines of two sub-projects must
converge after initial phase and must follow a common plan for the project to be
successful Multiple scenarios are described to facilitate the process He concludes
although technical infrastructure and business process reengineering both are equally
important and each implementation is unique but following some simple steps it is easy
to prioritize each ones during different phases of the project Also time lines of two
subprojects must converge after initial phase and must follow a common plan for the
project to be successful Multiple scenarios are described to facilitate the process [38]
Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008) ldquoDevelopment and
Implementation of ERPCRM System Based on Open Source Software to Small and
Medium-sized Enterprise in Chinardquo analysed the fact that E-commerce and the
45
development of modern enterprise management raise a number of challenges in the
process of informatization of small and medium-sized enterprises (SME) in china To
address this they present an approach in which the informatization is enhanced by using
Open Source Software with customized policies We analyses the main
informationization obstacles of SME in china bring forward that the lack of bankroll
talents cost and management etc are the key problems to informationization of SME
Furthermore they have developed a textile foreign trade ERP CRM system based on
Open Source Software for the local textile distributor of china integrating financial
distribution sales and service processes given the implement method of overall planning
step-by-step implementation key breakthrough and efficiency guiding In the end we
compare the typical Open Source Software and traditional commercial software point
out the advantages of informatization based Open Source Software to SME in china and
the development trend of Open Source Software for enterprise application [132]
ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information Systems ndash a
Multi-disciplinary Method for ERP System Requirements Engineeringrdquo by Inka Vilpola
Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that ERP systems are in
most cases off-the-shelf software packages and large by their size and complex by their
structure Small and medium-sized enterprises (SMEs) require flexibility of the ERP
system because of their individual operational processes Therefore it is crucial to select
and implement an ERP system that fits the requirements of the intended target processes
To support the requirements engineering of ERP systems we have developed Customer-
Centered ERP Implementation (C-CEI) method The method introduces a multi-
disciplinary approach to the ERP project and provides in-depth understanding of the
companylsquos processes and context of use Using C-CEI method decreases the risk of
SMEs to select an inappropriate system and improves the system acceptance by the
customer companyrsquos employees In this paper we present the method and illustrate it by
three SME case studies [114]
Saumyendu Ghosh (2000) in ldquoChallenges on a global implementation of ERP softwarerdquo
discusses that some of the unique challenges in ERP implementation are satisfying
multiple countries statutory requirements and reporting to the corporate head quarters
from one installation of the software conflicting interests between different business
46
entities lack of experienced implementators in all the countries and eminent users of
multinational advantages He discusses different aspects of these challenges in detail and
point out that ERP software can provide only one solution for a particular business
process unless workarounds are available from experienced implementation Different
counties adopt different reporting and accounting practices and therefore an ERP
implementation cannot solve all problems that global corporation may have multiple
countries in the scope of the project due to absence of standard global processes across
the organization He concludes that the most important critical success factor of these
international implementations are how quickly these corporations can reengineer existing
business process to adopt best practices of using an ERP system [38]
Dong Cheng Feiyan Deng Hongtao Li (2006) ldquoCritical Factors for Successful
Implementation of ERP in Chinardquo in their study propound a theoretical model for
successful implementation of Enterprise Resource Planning (ERP) under Chinarsquos
environment and the authors analyze the model empirically through structural equation
modeling The authors find that strategically IT planning abilities leadershiprsquos support
and the skills of IT section business processing abilities learning abilities and change
management abilities has a significant positive impact on successful ERP implementation
[22]
Parijat Upadhyay (2008) in his research studies ldquoAn explorative study to identify the
Critical Success Factors for ERP Implementation in Indian small and medium scale
enterprisesrdquo explores the existing literature on ERP implementation issues in context to
small and medium scale enterprises and attempts a compilation of the factors that assume
great significance while implementing ERP in SMErsquos Given the nature and magnitude of
the problems in encountered in implementing an ERP project this study would attempt to
identify the critical success factors(CSFrsquos) for a successful implementation of an ERP
project since it calls for substantial effort on the part of all the stake holders involved to
make the implementation a success [111]
ldquoThe ERP Implementation of SME in Chinardquo Yuanqiang Xia Peter Lok and Song Yang
(2009) presented the fact that ERP implementing for small and middle size enterprise
(SME) is different from the large one Based on the analysis on the character of ERP
marketing and SMEs of China 6 critical success factors are recommended The research
47
suggests that the top management support is most important to ERP implement in SME
of China in which paternalism prevails Database of management and capital are main
obstacles ERP 1 or ERP 2 fits to demand of SME high power project team has
tremendous significance in the situation of absence of IT engineer for SME education
and training is helpful to successfully ERP implementing The results service as better
understanding the ERP implementation of SME in China and gaining the good
performance of ERP implementation [126]
Yan Xu and Chung-Hsing Yeh (2009) in the article ldquoStrategic Management of
Performance Measures for an ERP Implementation Project Teamrdquo present a new
evaluation model for managing performance measures of an enterprise resource planning
(ERP) implementation project team in an organization With the performance measures
classified into four strategic perspectives of the balanced scorecard the evaluation model
enables the goal alignment between the project team and the organization A new
algorithm using the concept of multi-attribute decision making is developed to obtain the
relative importance value for each performance measure for its contribution to the
strategic goals of the organization The higher the importance values of a performance
measure the more important the role it plays in determining the responsibilities of the
corresponding project team player Understanding the importance of the key performance
measures will help an organization well-prepare to launch a project and have the project
being organized in advance A case of an ERP implementation project in an integrated
manufacturing corporation is presented to demonstrate the applicability of the evaluation
model and its effective management of the performance measures [124]
Zhang Yanhong (2009) in his research paper ldquoERP Implementation Process Analysis
Based on the Key Success Factorsrdquo describes that Enterprise Resource Planning (ERP) is
an amalgamation of a companys information systems designed to bind more closely a
variety of company functions including human resources inventories and financials
while simultaneously linking the company to customers and vendors This thesis is based
on the theory of product life cycle and the process of ERP is divided into four phase
planning implementation stabilization and improvement Critical success factors in each
phase are identified by paper research case study and investigation An ERP
implementation process model based on the critical Success factors (CSFs) is proposed in
48
the paper The thesis analyzes the global planning stages and business process rebuilding
in the process of QIHE pharmaceuticals ERP Improvement on management and
financing before and after ERP implementation are contrasted and we come to the
following conclusions (1) The CSFs in the planning phase is comprehensive
investigation and evaluation (2) The CSFs in the implementation phase is effective
project management team (3) The CSFs in the stabilization phase is appropriate
information management system (4) The CSFs in the improvement phase is change on
demand and continue to innovate (5) The CSFs throughout the product life cycle is
business process rebuilding [131]
Van Stijn E and Wensley A (2001) ldquoOrganizational memory and the completeness of
process modeling in ERP systems some concerns methods and directions for future
researchrdquo mentioned that Enterprise resource planning (ERP) systems not only have a
broad functional scope promising to support many different business processes they also
embed many different aspects of the companyrsquos organizational memory Disparities can
exist between those memory contents in the ERP system and related contents in other
memory media such as individualsrsquo memories and the organizational structure and
culture It is our contention that in general these disparities or memory mismatches as
we will refer to them lead to under-performance of ERP systems In this paper they focus
on potential memory mismatches that may arise with respect to the embedding of process
knowledge within ERP packages Packages such as SAP provide a varied and rich
environment for process modeling However they suspect that there are still many
instances where process knowledge is either lost or represented in different ways in
different parts of the organization The overall thrust of the paper is to identify a variety
of concerns intriguing questions and avenues for future research [112]
Eric Kimberling (2008) in his article ldquo The Role of Lean Six Sigma in ERPrdquo insisted
that there are a number of things to consider when considering a new ERP system like six
sigma lean manufacturing or other business transformation projects that has the capacity
to measure reducing waste managing change well continuous improvement etc [133]
William H Gaw (2010) ldquoEight Basics of Lean Six Sigma for Manufacturing Firmsrdquo In
the efforts to draw closer to customers many manufacturers have lost focus on what
should be a companyrsquos primary success factor ndash profitable growth In todayrsquos competitive
49
manufacturing environment it takes more than quick fixes outsourcing and downsizing
for companies to consistently achieve their growth and profit objectives While these
options may yield temporary financial relief they will not lead the way to long-term
growth and profitability For companies to grow and consistently exceed bottom line
expectations they need to get lean And to get lean they should master eight basics of
Lean Six Sigma in the form of information integrity performance measurement
sequential production point-of-use logistic cycle time management production linearity
and resource planning and customer satisfaction [134]
Brehm L and Markus M L (2000) in The Divided Software Life Cycle of ERP
Packages mentioned that traditional information system life cycle (SLC) focuses on the
activities performed by company developing implementing and maintaining software for
its own internal use Enterprise resource planning (ERP) software packages change the
SLC in several important ways This paper presents an extension of the SLC model for
ERP packages The lsquodivided software life cyclersquo (DSLC) model features an equal
emphasis on the activities performed by the ERP adopting company and the ERP vendor
[15]
Alavi M and Carlson P (1992) A Review of MIS research and disciplinary
development The perceived status of journals in which MIS research is published is an
important issue to academics The number of IS-related journals has increased through
the years yet it is not obvious which are the ldquoleadingrdquo journals or what criteria should be
used to determine this This article addresses these issues by (1) evaluating and
analyzing previous studies in which MIS related journals have been ranked (2)
determining top-ranked journals and placing them into two levels or tiers based on
previous studies and (3) establishing a profile through a systematic analysis of the nine
journals in the first tier This study identified 17 highly ranked journals for publication
Nine were placed in the first tier and eight in the second tier In addition to IS-specific
journals publications included management science computer science and business-
oriented journals The individual strategies for improving software productivity are
identified Issues related to software costs and controlling them are examined and
discussed It is pointed out that a good framework of techniques exists for controlling
software budgets schedules and work completed but that a great deal of further progress
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 6
17
network The research illustrated that ERP systems are distinguished for their e-business
support integration approach flexible modular architecture and openness for horizontal
accommodation of wider scope of tasks and for vertical building of sophistication and
intelligence The ERP systems are open for further improvement through research and
development and for more experience through practical implementation and operation
[9]
In the article ldquoEnterprise Resource Planning A Business Approach to System
Developmentrdquo Nicola Gibson Christopher P Holland amp Ben Light (1999) of
Manchester Business School argue that system development is now entering a new phase
of maturity with the advent of Enterprise Resource Planning (ERP) software packages
From case study research it is shown that ERP implementations have different types of
problems compared with traditional software development methods These centre on the
alignment of business processes with the standard software package and the project
management of the implementation process They concluded that ERP is a departure
from traditional approaches to system development It therefore requires a different
approach that places less emphasis on the technical aspects of software development and
instead seeks to balance the business process design software configuration and project
management aspects of IT implementation with the overall strategy and structure of the
firm [41]
In Proceedings of the 36th Hawaii International Conference on System Sciences Celeste
See Pui Ng Guy Gable amp Taizan Chan (2003) of Queensland University of Technology
Australia presented their research paper ldquoAn ERP Maintenance Modelrdquo In order to
bridge this gap in literature and practice they propose a preliminary ERP maintenance
model reflecting fundamental ERP maintenance and upgrade activities A detailed case
study was conducted to gather empirical data for developing such an ERP maintenance
model Data gathered from the interviews relating to (i) maintenance preparation and
initial planning (ii) maintenance procedures and (iii) upgrade process are used to map
out Government Agencyrsquos (GA in the Australian state of Queensland) implicit
maintenance model ndash maintenance preparation maintenance procedure and software
upgrade stages respectively Data collected from the databases associated with request
type staff involved and maintenance activities are used to map out the maintenance
18
procedure stage whereas information from the upgrade business case and upgrade
planning resources documentation are used for mapping out the software replacement
stage of GArsquos maintenance model Data analysis identified potential benefits of the
maintenance model to ERP-using organizations generally and to the case firm in
particular with the primary business objectives This study provides practitioners with
guidelines on planning implementing and upgrading an ERP [86]
Yao Yurong amp He Houcun (2000) in the article ldquoData Warehousing and the Internetrsquos
impact on ERPrdquo examines the advances in data warehousing and internet technology
spurring ERP development As per their findings these systems still needed some
improvements To keep pace ERP systems themselves have undergone considerable
change in the past 10 years Thus in making the right ERP choices itrsquos helpful to know
how two key technologiesmdashdata warehousing and the Inter-netmdashare transforming these
complex systems SAP a leading ERP company introduced the business warehouse as a
complement to its R3 application suite Oracle a SAP competitor also sells its own
solutions Action (an activity-based management system) Balanced Scorecard (a
business performance management package acquired from Graphical Information Inc)
sales analyzer and warehouse analyzer So Oracle has also concluded that the
combination of data warehousing and ERP is an effective solution for counteracting the
drawbacks of the two systems [127]
In the research publication ldquoMatching ERP System Functionality to Customer
Requirementsrdquo Colette Rolland amp Naveen Prakash (2001) propose an approach for
matching ERP system functionality to customer requirements The assumption made was
that the ERP system postulates a set of requirements that are worth eliciting from the
ERP documentation as abstractions of the ERP system functionality Then the
requirements engineering process is a process that matches the ERP set of requirements
against organizational ones The paper presents the Map representation system and the
matching process The process is illustrated by considering the Treasury module of SAP
and its installation in the financial management of a cultural exchanges unit
Conclusively one can successfully expect to lay down such generic maps for capturing
change strategies for companies moving from single to multi customer oriented services
[91]
19
In ldquoEnterprise Resource Planning (ERP) ndash Breakthrough or Buzzwordrdquo A Fitzgerald
(1992) suggests that to understand the structure of the ERP manufacturing solutions one
must examine both the technology underlying these systems together with the
environments and functionality required Finally to make the lsquobusiness casersquo for such
systems we must focus on the benefits that can be achieved by using ERP systems [33]
In the proceeding of 34th
Hawaii International conference on System sciences an
important article on CSFs in ERP ldquoThe Impact of Critical Success Factors across the
Stages of Enterprise Resource Planning Implementationsrdquo by Toni M Somers amp Klara
Nelson (2001) was published This paper describes the impact of Critical Success Factors
(CSFs) across the stages of Enterprise Resource Planning (ERP) implementations using
the responses from 86 organizations that completed or are in the process of completing an
ERP implementation This research not only identified which CSFs are most critical in
ERP implementations but also determined which factors are temporal ie significant in
the implementation process for a particular period in time That information can now be
used to identify anticipate and allocate time and resources across those factors that need
attending to for effective project monitoring It also provides an understanding of the
factors and their importance throughout the various phases of implementation which in
turn can serve as a useful guide for firms in the process of implementing an ERP system
[103]
In the proceeding of 34th
Hawaii International conference on System sciences IEEE 2001
ldquoTailoring ERP systems A spectrum of choices and their implicationsrdquo Lars Brehm amp
Armin Heinzl M Lynne Markus (2001) depict that the IS literature distinguishes between
custom-built and off-the-shelf software Enterprise resource planning (ERP) packages are
often viewed as off-the-shelf software because adopters implement them by setting
parameters (called configuration) rather than by traditional programming Making
changes to ERP software code (called modification) is usually strongly discouraged by
vendors and implementation consultants Nevertheless field research has shown that
many companies have had to modify ERP software in various ways to meet essential
business needs In this paper they describe a portfolio of tailoring options between
configuration and modification with important implications for implementation risk and
the difficulty of ERP system upgrades but with companyrsquos advantages [16]
20
Babak Akhgar Jawed Siddiqi and Samir Al-Khayatt (2002) summarized their findings in
the article ldquoStrategic exploitation of ERP for e-businessrdquo for the Proceedings of the
International Conference on Information technology Coding and Computing (ITCCrsquo02)
This paper based on research from an ongoing IS investigation project at a large
multinational company examines the relationship between ERP amp E-business The paper
discusses different scenarios of ERP implementation status that organizations may find
themselves It examines the components of e-business success namely visibility of
information processes and technology that will be either enabled or restricted by ERP
What transpires from this research is that for many start-ups e-business becomes
synonymous with business in general Ultimately they conclude that e-business should
form part of the corporate strategy and that IS or IT strategy should form the basis for
determining ERP implementation structures thereby ensuring e-business requirements
become the platform for ERP [2]
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther G Chattopadhyay (2004) The paper
presents research on ERP system characteristics particularly relevant for Small to
Medium Enterprises (SME) Authors investigated the duration of the project phases to
establish the human resource requirements through the selection implementation and
support of the ERP project Common factors that are crucial for an SME in the
manufacturing sector embarking on an ERP system are identified in this paper for system
selection and implementation User survey was carried out for a target group of SME
companies around Brisbane Australia The survey captured both qualitative and
quantitative data relating to the ERP system in place at a target group of electrical and
electronic equipment manufacturing companies located in South East Queensland
Australia Quantitative analysis was carried out on the cost of the ERP selection and
implementation project both in terms of capital outlay and human resources [87]
Reported implementations recognized the benefits of aligning business processes with a
target ERP system in the period prior to the go-live and authors summarize following
points
ERP system as a business tool for growth of SME
21
Critical selection factors unique and realized benefits different for each business
SME having limited resources (money people time) with which to evaluate and
implement ERP
Ongoing costs
Overall success
In the paper study ldquoERP Training Strategies Conceptual Training and the Formation of
Accurate Mental Modelsrdquo Tony Coulson Conrad Shayo CE Tapie Rohm Lorne
Olfman (2003) examined a major determinant of successful ERP implementation end-
user training The study finds that a workflow conceptual advanced organizer strategy
(TCT group) improves end-userrsquos mental model accuracy over time as demonstrated by
the subjectslsquoability to recall ERP specific concepts Results indicate that a conceptual
advance organizer is an important component of ERP training and should be incorporated
into an organizationlsquos training strategy In general the study supported the framework
and found that by adding a tool conceptual knowledge-level to the training the end-users
developed more accurate mental models By using the knowledge-level framework and
incorporating tool conceptual knowledge into an organizationlsquos training design
organizations may see an improvement in overall ERP implementation results For
example because ERP training is very expensive those within an organization that attend
ERP training are often asked to train others in the organization when they return This
study shows that adding a tool conceptual knowledge-level to their training improves
their ability to recall and re-articulate their understanding of the system By building the
knowledge-levels that enable more effective understanding and communication of
concepts learned could be an invaluable asset to any companylsquos training and
implementation strategy [24]
ldquoEnterprise Resource Planning Challenges for Small and midsize Business (SMBs)rdquo
Analyst Katherine Jones (2004) of Aberdeen suggests that small and midsize businesses
are primarily driven by operating cost pressures perceived as the biggest challenge and
their key challenges are
1 Insufficient funding for corporate strategies and initiatives
2 Lack of clearly defined corporate vision and goals
3 Ineffective communication of corporate strategies and initiatives
22
4 Metrics that do not sufficiently provide incentives employees to supportachieve
corporate goals
5 Inability to accurately determine and plan for customer demand
As the immense variability in how SMB companies conduct business still predominates
the SMBs see technology as the enablers of their strategies Specifically cited are the
increased availability of advanced analytics decision support and reporting tools as well
as the availability of process-specific business applications [55]
Christina Soh Sia Siew Kien and Joanne Tay-Yap (2004) through their study on the
subject ldquoCultural Fits amp Misfits Is ERP a universal Solutionrdquo Present early findings
from a larger ongoing study The typology of misfits and examples are drawn from the
review of implementation documents and supplemented by interviews with key project
team members from one hospital [102]
In their White Paper ldquoERP Selection ndash Right Tracking Enterprise Change ITSg-GCPrdquo at
TCS Dr Joginder Singh Lamba amp Swapnil Kitcha (2007) analyzed the fact that
business changes in the form of portfolio expansion structure decentralization and supply
chain integration drive new investments in ERP Besides the need for more functional
areas within the IT landscape (BI CRM PLM and Product Information Management)
demands new interfaces with ERP backbone Heterogeneous compatibility and varied
maturity across modules elicit interest in best of breed solutions in ERP [64]
In ldquoFuture of ERP systems and Microsoft Dynamics Learn about XML and Web
servicesrdquo McKie (2008) discusses what sort of requirements XML and web services put
on business applications He further explains ERP systems need to be able to create
XML schemas (data specifications) and they need to be able to import and export data in
XML documents The more data an ERP user needs to share with business partners the
more important is to have these capabilities In addition to XML McKie identifies a
second type of Web service that offers functionality rather than data is expected to
emerge in the form of business partner integration analytics and alerts [79]
David Caruso (2005) Senior Vice President Industry Research AMR in his article
ldquoProcess Productivity and Profit The SMB Executiversquos Framework for ERP
Investmentrdquo narrated that SMBs which are not aggressively developing an effective ERP
strategy will be at some disadvantage to their peers by 2006 Forward-thinking executives
23
will consider strategic business capabilities as the drivers for enterprise resource planning
(ERP) investment justification In a 2005 study that AMR Research conducted with over
550 companies regarding their ERP investment plans and found that only 27 of small
companies (fewer than 500 employees) are currently using ERP This is in sharp contrast
to the 57 of large companies (500 to 2499 employees) and 70 of enterprise-sized
companies (2500-plus employees) that have operational ERP systems Given this data it
is not surprising that almost 50 of the respondents interviewed will be making
substantial changes to their existing ERP systems over the next 12 to 18 months The
challenge for executives charged with the decision is establishing a powerful context for
making the ERP investment [20] When considering the ERP investment decision from
the perspective of the executive suite there are four overarching drivers that frame what
executives need to consider
1 Productivitymdashgetting the most from your valuable employee assets
2 Connectivitymdashworking collaboratively with your key customers and suppliers
3 Business insightmdashImproving the speed and quality of decision making
4 Total cost of ownershipmdashreducing the cost of owning and operating IT systems
Yong Jean John amp Ki-Henry Yim (2001) in an article ldquoA study on an Environment of
ERP Introductionrdquo includes the role of ERP perception of ERP value ERP plan
direction and also argues various checkpoints as a preview of ERP introduction In
conclusion they list checkpoints in sequence based on the mean values that provides
indications of the relative importance As a result the most important checkpoints were
Performance of Introduction Main Reference Sites Availability of Current Resources
Easiness of Introduction Operation System Past Records of Supply Market Share and
Vendor Size The results shown in this paper has shown strong implications for ERP
vendors Vendor size and market share received the least attention amongs all the
checkpoints described in the study [125]
One step forward IQMS Executive White Paper (2007) ldquoHow Successful ERP Selections
are Made ldquo this paper is not just about want and donrsquot want from the various people in
the organization It suggests that it should be a long lasting purchase that provides the
users the feeling of a partnership As the user is not just buying software they are also
buying into a vendor and their company culture The combination of software capability
24
and vendor credibility should be a major purchasing factor There is more to a lasting
ERP purchase than that There are several platform thoughts on technology how many
vendors are included the demonstration the always useful buzz words with all the hype
on service oriented architecture (SOA) best of breed lean manufacturing and all the
other phrases floating in the industry today implementation time customer referrals
customer retention look at your company objectively etc [49]
Robert C Beatty amp Craig D Williams (2006) in ldquoBest Practices for Successfully
Implementing an ERP Upgraderdquo maintain that an ERP upgrade is deceptively complex
and can be daunting especially for organizations ignorant of the massive effort required
to do it correctly One study of mid-size to large companies conducted by AMR Research
found that 67 of these companies are implementing some form of ERP while another
21 are evaluating potential ERP systems solutions As a growing number of companies
adopt ERP systems ERP systems implementation and upgrades are identified as one of
the top five IT priorities among global CIOs according to independent surveys conducted
by Morgan Stanley and Deloitte amp Touche IDG Research Services Group In
conclusion this article provides organizations with a list of the eight most common
recommendations suggested by organizations that have already completed at least one
upgrade to their initial ERP implementation [11] These are
Finding 1 Build your business case on new functionality
Finding 2 Treat the upgrade like a new project
Finding 3 Keep the team together
Finding 4 This is a business project not an IT project
Finding 5 Watch for hidden infrastructure costs
Finding 6 Un-customize customizations
Finding 7 Test like your organizationrsquos future success depends on it
Robert Davison (2002) raises a valid point through his article ldquoCultural Complications of
ERPrdquo discussed cultural misfits from a Singaporean perspective This implies that a one-
size-fits all or one-business-model- fits-all approach is unlikely to be successful As much
of ERP literature originates from and describes application contexts in North America
and to a lesser extent Western Europe where most ERP developers are located and
implementations have occurred Developers and consultants need to adapt their products
25
and services for different cultural markets Awareness of cultural differences and prefer-
ences will certainly improve the assessment of ERP suitability and any subsequent
implementation [27]
A group of researchers Siew Kien Sia May Tang Christina Soh Wai Fong Boh (2002)
from Information Management Research Center Nanyang Business School in their
research paper ldquoEnterprise Resource Planning (ERP) Systems as a Technology of Power
Empowerment or Panoptic Controlrdquo explores ERP as an ambivalent technology of
power According to them on the one hand it may tighten management control by
bringing a new level of panoptic visibility to organizational activities on the other hand
the embedded business model within the ERP may drive empowerment of employees and
greater control relaxation through the configuration of new process design This research
seeks to understand how the different forces play out in the context of ERP
implementation and to explore the implications for traditional power distribution in
organizations It adopted a mixed qualitative-quantitative methodology in an intensive
case study of a restructured hospital in Singapore A survey of 260 users was
administered supplemented by approximately 27 hours of individual interviews with 23
people Results reveal that although ERP can facilitate both empowerment and panoptic
control management has consciously resisted empowerment by working to reinstitute the
power lost through the ERP implementation On the other hand the new panoptic
visibility though partially unintended appears to have evolved naturally and was readily
learned and applied in the organization This study is significant in exposing the
likelihood of ERP implementation as a technology that perpetuates management power
At least in the context of the hospital studied it is yet another means of enlarging the
management authority for ldquototal controlrdquo Current articulations of ERP by practitio-
nersmanagement as empowering thus appear to be more theoretical than real This is
consistent with the perspective of critical theorists (eg Sewell amp Wilkinson 1992
Weber 1947 Tannenbaum 1968) that organizational life will become increasingly
rationalized and more controlled Thus the findings support the critical perspective in
exposing the likelihood of ERP implementation to perpetuate management power Being
a single case study the external generalization of the above analysis is limited Future
research should be sensitive to the formative context (eg the nature of the pre-existing
26
structure the Asian cultural context) and the distribution of authority among
organizational actors (eg presence of management intention) in an organization The
dynamics of panoptic control and empowerment during ERP implementation may be
different in organizational transformation contexts or in organizations with more fluid or
organic pre-existing structures It may also be interesting to follow the analysis of
panoptical and empowerment over an extended period to get a better understanding of
their continuously evolving dynamics [98]
Suprateek Sarker and Allen S Lee (2003) in the paper ldquoUsing a Case study to test the
role of three key social enablers in ERP implementationrdquo indicate that three key social
enablersmdashstrong and committed leadership open and honest communication and a
balanced and empowered implementation teammdashare necessary conditionsprecursors for
successful ERP implementation In a longitudinal positivist case study we find that
while all three enablers may contribute to ERP implementation success only strong and
committed leadership can be empirically established as a necessary condition This
presents a challenge to future ERP researchers for resolving apparent contradictions
between the existing literature and the results of our analysis and for investigating the
nature of interactions among the leadership communication and team characteristics
[93]
Srinivas Mantha (2007) in the article ldquoERPndashBusiness Processes with IP
Communicationsrdquo explained the fact that the key to new competitive capability is
envisioning the enterprise in terms of business wide relationships to improve user
experience across the network exploit knowledge and enhance and accelerate core
processes IP Communications is the catalyst for this capability It enhances the value of
the user experience exploits knowledge value and increases the value of business
processes [76]
Linda Askenaumls amp Alf Westelius (2000) from Linkoumlping University Sweden explore
a new vista of ERP through their literature ldquoFive Roles of an Information System A
Social Constructionist Approach to Analyzing the use of ERP Systemsrdquo This paper
presents a novel way of thinking about how information systems are used in
organizations Traditionally computerized information systems are viewed as objects In
contrast by viewing the information system as an actor our understanding of the
27
structure process increases The user being influenced by the ERP (Enterprise Resource
Planning) system and giving it an actor role thereby also confers agency on the ERP
system Through its very use it influences actions and thus the structure as well Based
on a case study of ERP use in an ABB company for over a decade five different roles
played by the ERP system were identified The ERP system acted as Bureaucrat
Manipulator Administrator and Consultant or was dismissed (Dismissed) in the sense
that intended users chose to avoid using them In conclusion the purpose of this approach
is not to ldquoanimaterdquo the information system to give it life or a mind of its own but rather
to make explicit the socially constructed roles conferred on the information system by
users and others who are affected by it On this basis it is possible to suggest how the
roles can help us opening up the new areas of exploration concerning the fruitful use of
information technology [70]
Jinyoul Lee Keng Siau and Soongoo (2003) conducted a study on the topic ldquoEnterprise
Integration with ERP and EAIrdquo They state that to survive and thrive in these hypercom-
petitive markets it is essential for a company to understand rapidly changing business
circumstances To rapidly respond to a changing environment an enterprise must
integrate business functions into a single system efficiently utilizing information
technology and share data with third-party vendors and customers While ERP forces the
adoption of standard business processes EAI enables enterprise integration over business
object levels ERP thereby supports a centralized business strategy while EAI naturally
accommodates decentralized business processes Lastly they observe the fact True
enterprise integration means both technical and behavioral integration It is not simply
integrating different systems applications or business processes dispersed across an
enterprise It is integrating structural changes different behaviors and various
information systems in an enterprise Enterprise integration is costly and time-
consuming thus management should be cautious in the design of the project
Organizations should not blindly rush into new technologies Top management should
first strive to understand their business and needs for enterprise integration and then
select a methodology of enterprise integration [68]
Wilhelm Scheer and Frank Habermann (2000) in ldquoMaking ERP a Successrdquo have used
business process models at an operational level of e-business to achieve positive results
28
They have talked of different scenarios in e-business As in Business-to-Business
applications such as Supply Chain Management the user has to connect the ERP systems
of all business partners This means he has to fight not only with the thousands of
parameters of a single ERP system but with twice as much (or even more) Another likely
scenario is that the business partners involved in an inter-organizational supply chain are
using ERP systems of different vendors In this case a business process model can be
firstly used to define the conceptual value chain Secondly the conceptual model that is
independent from a certain software vendor can be linked to the repositories of the
different ERP systems in order to customize an integrated software solution These
examples demonstrate that business process models play a major role for the success of e-
business Some ERP vendors like SAP have understood this development and are already
implementing their first model-based e-business applications [94]
Ash CG (2001) in An e-Commerce Model for Extending ERP Systems onto the
Internet An Australian Perspective stated that an established research framework of e-
Business change is used to identify the factors for success of this e-business project
within an ERP environment The results confirm that a successful project was found to
have facilitators in all components of the business framework including the change
environment and project management Further there is the implication that the least
successful e-business projects will have inhibitors in both dimensions especially in the
area of cultural readiness and change management In this case study conflict arose
between local project management initiatives versus a centralized autocratic global ERP
deployment This highlights the need to encourage the balancing of conflicting
organizational knowledge when contemplating the adoption of e-business solutions [7]
Huigang Liang Yajiong Xue William R Boulton Terry Anthony Byrd (2004) ldquoWhy
Western Vendors donrsquot dominate Chinarsquos ERP Marketrdquo Examined cases of failed ERP
system implementation in China and explaining the unique circumstances These foreign
ERP implementation failures emphasize the need to localize strategies even for the
global ERP leaders The general manager of a foreign ERP vendor explained ldquoOne
should understand nationrsquos history and its culture before one starts doing business with
foreign companiesrdquo The cases of failed implementation suggest global ERP vendors
require more than superior technology and experience Their ERP strategies must also
29
address the cultural differences affecting ERP implementations Strategies need to
overcome problems relating to language reporting formats and content cost control
capabilities frequent business process redesigns effective customer support and capable
consulting partners [69]
In the research findings ldquoAn Agency Theory Model of ERP Implementationrdquo Vedabrata
Basu Albert L Lederer (2004) develop a model of testable propositions for applying
agency theory to study the relationship between implementation consultants and client
organizations deploying the ERP systems and to consequently evaluate how the
relationship affects the implementation success Therefore management needs to know
the factors that drive successful ERP implementation a product of the continuous
interaction between the implementation consultants and client firms Agency theory has
been successfully used by different researchers to explain relationships between two
parties seeking a common outcome This paper develops a conceptual model with the
variables and relationships that may play a critical role in explaining the sources of that
frustration It offers a foundation for research that can extend the applicability of agency
theory can help clients and consultants manage their relationships during the
implementation process and thus help them enhance the probability of ERP systems
implementation success It may also be useful for managing other outsourced IS projects
that have implementation settings similar to ERP [10]
Christian Vogt (2002) ldquoIntractable ERP A Comprehensive Analysis of Failed Enterprise-
Resource ndash Planning Projectsrdquo makes an analysis of possible causes that led to the
disasters for ERP implementation failures and suggests software engineering processes
that help avoiding such outcomes The Model Based Architecting and Software
Engineering (MBASE) guidelines developed by Prof Barry Boehm and Daniel Port at
the Center for Software Engineering (CSE) at USC provide a base for these elaborations
for a long time SW Engineering experts have praised commercial-off-the-shelf (COTS)
packages as the panacea to complex software development Far from it the elaboration
in this survey shows that the deployment of COTS packages may be extremely intrinsic
one does not know whether some COTS software adheres to its interface specifications or
how deficient it is or how well its performance scales up as workload demand grows
The upshot is that COTS software will always be an alien element in the software to be
30
developed and it should be considered that way Dye-in-thendashwool COTS package ERP
systems exhibit plenty of dangers Only if appropriate risk management and enough time
for stepwise employment is provided for ERP system can be tamed [115]
In the research findings ldquoImplementing Best Practices in ERP for Small amp Medium
Enterprisesrdquo Rashmi Jha A K Saini and M N Hoda (2008) provides an interesting
insight into taking ERP implementation as a project and develops problem driven
approach to examine its complex phenomena The implementation process will be
divided into several components which will reflect the nature of ERP projects and makes
them distinctive from other systems design methods This paper also addresses critical
issues relating to developing entrepreneurship for sustainable development of small and
medium size enterprises(SMEs) for its future extensions and added benefits It may also
be useful for managing other outsourced Information System (IS) projects that have
implementation settings similar to ERP [53]
Saumyendu and Maya Daneva (2003) in ldquoLessons Learnt from Five Years of Experience
in ERP Requirements Engineeringrdquo summarizes one companyrsquos five years of experience
in making a generic ERP RE model a live process It rests on previously published ERP
RE process assessment results and reports on what we learnt with particular focus on
typical issues organizations face when adopting a standard model and solutions that can
be used to avoid those issues in the future Each of our lessons is described together with
a RE practice technical foundation for the practice and engineering techniques for the RE
practitioner The lessons were used to refine our Corporate Documentation Model a
process-focused and template-based ERP-architecture framework [40]
In ldquoResearch on Agent-Based Architecture of ERP For Small amp Medium-Size
Enterpriserdquo Rui-Xue Fu Zhan-Hong Xin and Can Chen (2007) suggests that with the
rapid development of information technology and the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward To address these problems a MAERP system architecture has been developed
in which the agents are classified into four types F-Agent for realizing an operation
application C-Agent for coordinating with other agents I-Agent for a communication
31
tool between the user and the MAERP system and T-Agent for performing specific tasks
and data collecting [35]
Xavier Franch and Juan Pablo Carvallo (2003) in the research paper Using Quality
Models in Software Package Selection found that the absence of structured descriptions
of quality features and user quality requirements makes selecting the right software
package difficult The authors propose a methodology for describing the quality features
of domain-specific software packages uniformly and comprehensively using ISOIEC
9126-1 quality standards as a framework [34]
In the paper study ldquoRevisiting ERP Systems Benefit Realizationrdquo Paul Hawking and
Andrew Stein (2004) maintains that many companies initially implemented their ERP
systems to solve Y2K and disparate systems issues These same companies are now
looking at a how to strategically leverages their investment in these systems through the
implementation ldquosecond waverdquo functionality This paper identifies the expected and
actual benefits of ldquosecond waverdquo implementations In addition it identifies barriers which
limit the benefit realization The findings reinforce that ERP implementations are people
focused projects which rely heavily on change management for success [45]
Hamid Nach and Albert Lejeune (2008) ldquoImplementing ERP in SMEs Towards an
Ontology Supporting Managerial Decisionsrdquo state that the purpose of this research
project is to consolidate and formalize as ontology on the basis of an extensive literature
review the key processes and skills required for successful implementation of ERP in an
SME Using the Proteacutegeacute software program the research identified and formalized 395
terms each of which has its own definition Exploitation of this ontology could take
multiple and varied forms including creation of a learning system an on-line cooperation
platform or a project management process mapping tool contributing to successful use of
ERP in SMEs [81]
While Gul Tekin Temur and Sitki Gozlu (2008) ldquoDetermination of Performance Criteria
for ERP Software Technologyrdquo mention that the main goal is to determine the
performance criteria for ERP software technology with respect to their sources Today
the companies are in interaction with many internal and external partners and have to face
many situations in various environments Especially many small and medium sized firms
utilize ERP software technology to plan their business interactions in the chain In this
32
study firstly a literature search is accomplished Then in order to reveal the performance
criteria a large-scale automotive company has been selected to conduct interviews with
managers Also the meeting reports of a few small and medium-sized companies have
been analyzed As a result of the analysis on findings the common views of the firms
about performance criteria are classified into four groups according to their sources such
as people technical managerial and economical The sub factors of these main criteria
are also taken into account in order to point out the origins of the criteria The results of
the study will provide insight to researchers and as well as to professionals in the practice
[108]
Maya Daneva (2004) in ERP Requirements Engineering Practice Lessons Learned
mentioned the fact that organizations implementing Enterprise Resource Planning (ERP)
systems have been increasingly adopting generic off-the-shelf requirements engineering
(RE) process models Yet little information exists about the challenges of making a
generic RE model a life process This article discusses why bringing an off-the-shelf
process in is not a sufficient foundation The author shares experiences acquired over the
past five years of eliciting modeling and validating requirements in ERP projects and
highlights typical issues and their solutions Among the keys to success are planning RE
model use in the clients context and installing processes to support key RE activities [25]
While the article ldquoRescuing Troubled Software Projects by Team Transformation A
Case Study with an ERP Projectrdquo by Kim Man Lui and Keith C C Chan (2008)
differentiates various reasons of ERP project failures It further states that many software
projects fail whether failure is measured in terms of budget schedule or some other
requirement The causes of such failures are many but are not always easily recognized
This is not the least due to the human dimension of corporate activities as spurious or
misdiagnosed issues in Enterprise Resource Planning (ERP) projects can take on a life of
their own and become a magnet for company politics This paper reports an industrial
case in which the senior management attempted to deal with a troubled ERP
implementation (SAP R3) in an international fast moving consumer goods (FMCG)
company during 2001 and 2002 This paper reflects this dimension as it uses original
emails and PowerPoint slides to recount a number of representative episodes in a troubled
but ultimately successful project At the heart of this success is the realization that
33
whereas it can be difficult and time-consuming to do root-cause analyses it is relatively
simple to identify problem owners In this case the senior management without IT
backgrounds turned around a failing project by reorganizing the team structure according
to process areas so that issues in each process area had one problem owner We
summarize the managementrsquos actions into a troubleshooting framework and in addition
suggest three actions for rescuing troubled projects keep the project manager but narrow
down the managerrsquos scope of responsibility to one or two process areas assign the right
people to be responsible for other process areas and have the General Manager chair the
ERP meetings [60]
In the PICMET 2006 Proceedings on ldquoOptimizing the Change Management of Enterprise
Resource Planning Systems Implementationsrdquo Onur Kerimoglu and Nuri BaUogluI
(2006) maintain that although Enterprise Resource Planning (ERP) systems are being
used widely all around the world they also carry out many problems as well as their
benefits These systems are well known for enhancing cross functional efficiency and
effectiveness through the integration of all information flowing throughout an
organization However during different project life cycle stages of ERP systems this
integration may not be provided because of the formulation of incompatibilities which
are greater than the optimum level among different parties like ERP system processes of
the organization and system users Within this study existing incompatibilities between
these parties are modeled respectively In common the model propose that the ERP
product mostly matching with the processes of the organization should be selected
processes of the organization should be changed for being compatible with the ERP
system and system users should be educated new qualified people should be hired etc
for making the system and processes more familiar to people Here the point is that all of
these are done for keeping incompatibilities between the ERP system processes and
people at minimum level because this minimalism will avoid optimization and utilization
problems This study not only handles problems of ERP from a newer perspective but
also provides insight to managers about managing the change and utilizing their resources
efficiently for adopting the ERP software across the organization [59]
Capaldo Guido and Rippa Pierluigi (2008) in ldquoA methodological proposal to assess the
feasibility of ERP Systems Implementation Strategiesrdquo stated that Continuous failures in
34
ERP systems implementation project are today the main challenge in the feasibility of
integrated information systems Failure can be determined by different factors both from
technological side and organizational side if not well managed In this paper we propose
a methodological approach based on technochange management in order to assess the
feasibility of ERP implementation strategy and reduce the risk of failure in terms of
project metrics and early operational metrics A case study in a big Italian
Telecommunication Firm will be presented [19]
ldquoCase Study of PLIVA Pharmaceuticals Inc - Aligning ERP System Implementation
with Business Process Changerdquo is very relevant and contemporary paper presented by
Vesna Bosilj Vuksic and Mario Spremic (2004) The main objective of this paper is to
present the impacts of information technology (IT) and enterprise resource planning
(ERP) systems in business process renovation projects A case study of business process
reengineering project and the implementation of the SAP software solution in PLIVA
(PLIVA pharmaceuticals Inc) are presented [116]
In ldquoKey Factors Driving the Success of Technology Adoption Case Examples of ERP
Adoptionrdquo Chonyacha Suebsin and Nathasit Gerdsri (2009) address the issues that
impact technology adoption within an organization Several factors influencing
technology adoption process are identified from the literature review Case examples of
the adoption of a new management technology Enterprise Resource Planning (ERP) are
presented to illustrate the situations of technology adoption in organizations From the
case examples the factors influencing technology adoption in organizations are
consistent with the factors identified from the literatures The further discussion also
reveals the additional determinants including the clarification of project scope individual
commitment and communication which should be taken into consideration when an
organization adopts a new technology [105]
Maya Daneva (2002) in her paper ldquoUsing Maturity Assessments to Understand the ERP
Requirements Engineering Processrdquo mentions that applying standard requirements
engineering (RE) processes is a major trend in todayrsquos Enterprise Resource Planning
(ERP) software engineering It emerged five years ago with the promise to provide a
mechanism helping ERP project organizations deliver their business requirements timely
and within budget This paper looks in depth at a standard ERP RE process and seeks
35
answers to four questions how well it is defined what are the risks associated with its
application in matureimmature organizations what are the essential practices that
contribute to its success and what are the costs of the process and the quality of the
delivered results The main motivation of this paper is to provide some practical advice
for using assessments to increase project teamsrsquo understanding of the ERP RE process
[26]
Fan JC and Kwoting Fang (2006) ldquoERP Implementation and Information Systems
Success A Test of DeLone and McLeans Modelrdquo present their research that develops
and tests a theoretical extension of DeLone and McLeans model of information system
(IS) success which explains personnel belief that contributes to users utilization of ERP
(enterprise resource planning) systems The extended model is tested using the structural
equation model (SEM) a survey of 202 end-users from ten Taiwanese enterprises that
has implemented Data Systems workflow ERP systems is conducted The theoretical
model proposed in this study provides insight into how the concept of useful perception is
incorporated into DeLone and McLean model and plays a critical mediated role to
influence system usage and its associated satisfaction The implications of these findings
for researchers and practitioners are discussed [32]
In the research findings ldquoManaging ERP Implementation Failure A Project Management
Perspectiverdquo Charlie C Chen Chuck C H Law and Samuel C Yang (2008) stated that
Information Technology (IT) projects are susceptible to changes in the business
environment and the increasing velocity of change in global business is challenging the
management of enterprise systems such as enterprise resource planning (ERP) At the
same time system success depends on the rigor of the project management processes
Scope creep poor risk management inadequate allocation of human resources over time
and vendor management are some common problems associated with the implementation
of an enterprise system These issues pose threats to the success of a large-scale software
project such as ERP This research adopts a case study approach to examine how poor
project management can imperil the implementation of an ERP system Having learned
the lessons from the failure of its first ERP implementation the company in this case
reengineered its project management practices to successfully carry out its second ERP
implementation Many critical project management factors contributed to the failure and
36
success of this companyrsquos ERP system This study explores and identifies critical
elements of project management that contributed to the success of the second ERP
implementation For those organizations adopting ERP the findings provide a roadmap
to follow in order to avoid making critical but often underestimated project management
mistakes [21]
Rafa Kouki Robert Pellerin and Diane Poulin (2008) in An Exploratory Study of ERP
Assimilation in Developing Countries The Case of Three Tunisian Companies assessed
that ERP systems could be considered as the most difficult systems to be assimilated
Very little research however has been realised to investigate the determinants of success
of the ERP assimilation process There has been also a dearth in research about ERP
projects in general and ERP post-implementation and assimilation in particular in
developing countries Using a case study methodology grounded in the diffusion of
innovation theory this study tries to understand the factors that could improve or
challenge the ERP systems assimilation process in three Tunisian companies Our
findings highlighted the importance of several factors such as top management support
strategic alignment IT expertise training communication organizational culture and
coercive pressures [62]
Ian Sommerville (2008) Construction by Configuration Challenges for Software
Engineering Research and Practice observed that past ten years have seen a radical shift
in business application software development Rather than developing software from
scratch using a conventional programming language the majority of commercial
software is now developed through reuse ndash the adaptation and configuration of existing
software systems to meet specific organizational requirements The most widespread
form of reuse is through the use of generic systems such as ERP and COTS systems that
are configured to meet specific organizational requirements In this paper he discussed
the implications of software construction by configuration (CbC) for software
engineering Based on his experience with systems for medical records and university
administration he highlighted some of the issues and problems that can arise in
construction by configuration he discussed problems that arise in CbC projects and
identify a number of challenges for research and practice to improve this approach to
software engineering [104]
37
SV Deshmukh and RR Lakhe (2008) in the research paper ldquoSix Sigma ndash An Innovative
Approach for Waste Reduction A Case Study of an Indian SMErdquo present a case study
aimed at reducing waste at an SME engaged in manufacturing of corrugated boxes The
Define Measure Analyze Improve Control strategy of Six Sigma methodology was
followed to identify probable causes for wastages After studying the system and
implementation of six sigma tools an overall 227 waste reduction was achieved
Individually out of a total seven processes 5 showed waste reduction in excess of 40
This reduction was statistically significant at Plt005 The study confirmed successful
implementation of six sigma to minimize waste generation and in terms saving in
manufacturing costs or increasing the bottom line [29]
While in ldquoERP Implementation Critical Success Factors - The Role and Impact of
Business Process Managementrdquo Yasar F Jarrar Abdullah Al-Mudimigh and Mohamed
Zairi (2000) investigate the role and impact of business process management in
successful ERP implementation The paper starts by defining business process
management ERP and the ERP critical success factors The impact of business process
management on successful ERP implementation is then assessed through looking at the
experiences of several organizations The paper concludes by highlighting best practices
for capitalizing on business process management for successful ERP implementation
[52]
M S Camara L Kermad and A El Mhamedi (2006) in the paper ldquoRisk Prediction in
ERP Projects Classification of Reengineered Business Processesrdquo maintain that
Companies have been implementing ERPs for almost ten years now and more the same
implementation problems continue to occur More and more ERP projectrsquos technological
challenges are accompanied by critical dimensions related to the management of the
transformational effects of these projects on the organization Indeed risk management in
this kind of project is not very structured and misses specific methods In this article they
propose a structured methodology for risk management particularly in the BPR (Business
Process Reengineering) sub-project of ERP implementation The final aim of our work is
to decease appreciably resistance to organizational change which poses the greatest
obstacle to business process reengineering efforts They propose to adapt OSR (Optimal
Set Reduction) a risk management method used in software development for the risk
38
management in ERP implementation They address specially the risk related to the
changes in enterprise processes in the ERP project To achieve this objective they
propose to define business process change metrics starting from business process
complexity metrics that exist in the literature [18]
ldquoExploration and Verification of Factors in the Front-end Stage of the ERP
Implementation Process Evidence from Case Study and Survey Researchrdquo Kun Shi and
Qiang Lu (2009) depict that ERP (Enterprise Resources Planning) is widely used to
improve business performance This paper explores how the factors associated with the
Front-end ERP Implementation Process (FEIP) affect the implementation outcome First
based on literature review a preliminary framework with 12 hypotheses is developed
Then Grounded Theory is applied for a case study to further extract and verify the factors
and sub-factors These factors are finally identified as strategic planning corporate
culture user characteristics organization-process-system maturity external expertise
engagementsupport and project preparation Furthermore the significance and
correlation of all the factors are detected by conducting survey research with SPSS as a
tool for analysis The study shows that the framework is valid and that among six three
factors have strong impact on the ERP implementation result whereas others are less
influential Implication is given and limitation is indicated at the end [63]
Huo Lingyu Liu Bingwu and Li Juntao (2009) in the paper ldquoAn ERP System Selection
Model Based on Fuzzy Grey TOPSIS for SMEsrdquo present a new fuzzy multi-criteria
decision making (FMCDM) approach which integrates the technique for order preference
by the similarity to ideal solution (TOPSIS) grey relation and fuzzy set theory for
enterprise resource planning (ERP) system evaluation and selection in the Small and
Medium-Sized Enterprises (SMEs) In this study the characteristic of the alternative with
respect to the criteria are represented in terms of a linguistic term set and the weight of
the criteria is described by triangular fuzzy numbers respectively According to the grey
theory and fuzzy set theory a closeness coefficient is defined to determine the ranking
order of all alternatives by calculating the grade of grey relation to the fuzzy positive-
ideal solution (FPIS) and fuzzy negative-ideal solution (FNIS) simultaneously Finally
an example is shown to highlight the procedure of the proposed method [48]
39
Gao Juntao Zhang Li Wang Zhiyao (2008) summarized their findings in ldquoDecision
Support for Handling Gaps between ERP functionalities and Organizational Needs A
Goal Reasoning based approachrdquo They found that in the process of selecting
commercial off-the-shelf (COTS) ERP systems it is inevitable to encounter gaps between
ERP software and organizational needs Gaps occur when COTS attributes do not exactly
match organizational needs and they make organizational users and software vendors in
the dilemma whether to adapt as-is business processes or to customize software
packages A decision support method for handling gaps is proposed in this paper Firstly
organizational goal-process models are built as the base for decision making Secondly
the idea of evidence theory is introduced into goal reasoning and a quantified algorithm is
proposed to evaluate the impacts of different business processes on high level goals
which are critical to make decision At last the risk is discussed to rank intervals which
specify the expected utilization of business processes [56]
Yvonne Dittrich and Sebastien Vaucouleur (2009) conducted a research on the topicrdquo
ERP Customization as Software Engineering Knowledge Sharing and Cooperationrdquo and
argue that Enterprise resource planning (ERP) systems must be configured and
customized to fit a specific company The authors discuss cooperation with regard to ERP
systems customization Enterprise resource planning (ERP) vendors provide multiple
configuration possibilities ranging from module selection to master data provision to
steer access rights for different users These configuration possibilities cover anticipated
variability If the customer requires adaptation beyond whatrsquos anticipated the source
code of the product must be adapted Customizations in this articlersquos context are source-
code-based adaptations of software products The size and complexity of customizations
range from simple report generation to developing independent add-ons that support
specific businessesmdashfor example solutions for flight carriers The size and lead time of
such projects can compare to a full-size software development project They present
empirical research on customization practices of ERP systems as an example of software
development based on customization of standard software They compared customization
with other development practices that are based on integrating existing code and results
underlined the need to rethink software engineering and programming methods and tools
[129]
40
In the paper study ldquoSignificance of Software Metrics in ERP Projectsrdquo S Parthasarathy
and N Anbazhagan (2006) narrate that ERP projects are a subclass of software projects
often accompanied by large-scale organizational changes One of the major reasons found
in the literature for the failure of ERP projects is the poor management of software
processes In this paper we propose a Software Metrics Plan (SNP) containing different
software metrics to manage software processes during ERP implementation Two
hypotheses have been formulated and tested using statistical techniques to validate the
SNP The statistical analysis of the collected data from an ERP project supports the two
hypotheses leading to the conclusion that the software metrics are momentous in ERP
projects [84]
Antony Marsh (2000) in the article ldquoThe implementation of Enterprise Resource Planning
systems in small and medium Manufacturing enterprises in south-east Queensland a case
study approachrdquo examines the implementation of ERP systems in smallmedium-sized
enterprises in South East Queensland Australia Nine case studies were conducted to
determine factors for success or failure in the implementations Key success factors
identified included cross-functional team approaches organizational experience of
similar scale IT or organizational change projects and lsquodeeprsquo understanding of the key
issues relating to ERP implementations Failure factors identified included top-down or
consultant driven implementations IT department driven implementations or
implementations where the EFV is seen as a quick technological fix to problems within
the operation of the firm rather than as a strategic investment [78]
Christian Doumlrner Sebastian Draxler Volkmar Pipek and Volker Wulf (2009) through
their study ldquoEnd Users at the Bazaar Designing Next-Generation Enterprise Resource
Planning Systemsrdquo propose that the bazaar metaphor has developed a lasting
popularity in software engineering especially as software architectures have evolved
from monoliths to service orientation Nevertheless the metaphor is limited because it
doesnt consider end users those who develop software for themselves Introducing such
an end user the prosumer to the bazaar not only suggests a changing division of work
in software development but also calls for different functionality and architectural
choices The authors evaluated changing software architectures from an end-user
development (EUD) perspective taking the case of enterprise resource planning (ERP)
41
systems as traditionally monolithically designed systems moving toward service
orientation On the basis of the studys findings which indicated problems with the
systems technical flexibility the authors developed a tool set for fostering EUD
activities Their new architecture for ERP systems enables end users to create their own
solutions [31]
Kenny KF Lee (2000) in ldquoThe Five Disciplines of ERP Software Implementationrdquo has
identified the critical factors in businesses which learn grow and succeed This paper
applies the central concepts of the book its five disciplines to the software business
specifically the management of software implementation Using the learning challenge
posed by the organization-wide implementation of Enterprise Resource Systems (Em) the
paper covers how EM software project leaders may manage themselves their teams
business vision and corporate culture and team members to create a survival machine
which can thrive in the current economic and technological climate [67]
Piet MA Ribbers amp Schoo (2000) in his paper ldquoDesigning Complex Software
Implementation Programsrdquo raises a central question that how one can design of Program
Management contributes to the success of complex software implementations
Incomplete goal specifications lack of communication and underestimation of project
complexity are signs of insufficient program and project management To avoid these
pitfalls he proposes ways that have worked well in recent complex multi-project ERP
implementations (programs) Answering the above question raises the problem of
adequately defining and measuring the level of complexity of an implementation
program A conceptual model was developed which identifies program management
factors that are proposed to have an impact on implementation success Fifteen cases
were studied to find support for the proposed framework [88]
ldquoDetecting Gaps between ERP Software and Organizational Needs A Semantic
Similarity Based Approachrdquo is very relevant and contemporary paper presented by Gao
Juntao and Zhang Li (2008) It depicts that Gap analysis is one of the most important
phases in implementation of enterprise resource planning (ERP) system In this paper an
approach is proposed to automatically detect gaps between software capacities and
organizational needs based on semantic similarity computation The approach takes two
business process models as input and one specifies software capacities and the other
42
describes organizational needs The output of it is a report of gaps As a matter of fact
the differences between application domain and software discipline make semantic
heterogeneity a key problem in gap detection therefore the technologies of semantic
similarity computing are employed to resolve ambiguity issues caused by the use of
synonyms or homonyms In particular the idea of similarity propagation is introduced to
pick out a mapping between corresponding activities and data and Hungarian algorithm
is employed to reduce its time complexity Then the similarity of whole models is
measured according to the minimal total cost of change operations Finally an
experiment is given to evaluate the method [36]
In the research publication ldquoERP System Adoption - Does the Size Matterrdquo Sanna
Laukkanen Sami Sarpola and Petri Hallikainen (2005) investigate the relationship of
enterprise size to the constraints and objectives of ERP systems adoption The survey
data based on the responses of 44 companies indicates that significant differences exist
between small medium-sized and large enterprises in ERP system adoption Specifically
the findings suggest that small companies experience more knowledge constraints than
their larger counterparts in ERP adoption Further while being the most prevalent
objective for ERP adoption in all the company groups business development through
ERP adoption is considered especially important by the medium-sized and large
enterprises Finally the findings of the study suggest that instead of considering small
and medium-sized enterprises as one homogenous group the differences between these
two groups of companies should be acknowledged in the future research [65]
In their paper ldquoModel Based on CSCWrdquo Wedian Liang XuFen Zhenkun Li Rong Xiao
JunFeng Hu (2005) summarise their finding They feel that Software testing is an
important component of the software engineering and an important link that the software
development quality is guaranteed Using the reasonable model for software testing can
reduce the expenses of testing in the developing activity in the course of testing thus cut
down the cost of software development In this paper we put forward a model for
software testing bused on CSCW technology that run through each stages of software
development cycle If can find the mistake in the software as soon as possible has
shorten the time taken for testing in the course of the development of software testing
43
effectively Finally we applied the model to the testing project which develops ERP
system and then receive the ideal result [118]
In their paper ldquoThe Research and Development of IMIS for Small and Medium-sized
Printing Enterpriserdquo Taolin Ma Xiaoming Chen Yansong Sun Xiurong Li (2009)
analyzed the fact that the basic management thought of inventory management
information system (IMIS) was established by analyzing the inventory management
theory of modern enterprise In this system which using the architecture of CS the stores
were classified by ABC management method the inventory control was completed by
setting up the safety stock and the largest stock the analysis and design of IMIS were
finished This IMIS was developed to meet the practical requirements of small and
medium-sized printing enterprise in our country It can not only be used as the important
measure of the informationized construction for small and medium sized printing
enterprise but also used as a subsystem of enterprise ERP system IMIS could improve
enterprise management level realize rapid transformation of enterprise and finally
enhance the competitiveness of enterprise in market economy [106]
Jiangao Deng and Yijie Bian (2008) in the research paper ldquoConstructing a Risk
Management Mechanism Model of ERP Projectrdquo mention that in the process of
information project implementation of manufacturing enterprises there are many risks to
set up a set of risk management mechanism is guaranteed for them to succeed in ERP
implementation Firstly based on the analysis of ERP project implementation of China
the paper introduced the risk management methodology systems and the relative model
which includes three main steps identifying risk evaluating risk and controlling risk
After that on the aspects of decision implementation and application stages of
manufacturing ERP project life cycle the paper discussed risks of each stage and put
forward a two-dimension matrix risk management strategy Then a mechanism model of
ERP project risk management is constructed which shows that information risk control
strategies of the last two stages not only depend on resources of these stages but also
have a diverse relationship with the last stage Finally according to the successful
implementation of an enterprisersquos ERP project the paper carried out an effective case
application analysis of risk management mechanism model The lack of improvement in
usersrsquo ERP skill levels and the shortage in documenting the rationale for business rules
44
and configuration decisions were among the critical issues of the post-implementation
stage Indeed all of their respondents stressed the importance of refreshing the usersrsquo
knowledge about the system [28]
Saumyendu Ghosh (2003) in ldquoGlobal Implementation of ERP Software ndash Critical Success
Factors on Upgrading Technical Infrastructurerdquo discusses that implementing an
Enterprise Resource planning (ERP) software in a global environment executive
sponsors face two key challenges While business processes are to be re-engineered to
align with the ERP software best practices technical architecture and infrastructure needs
to be in place globally as per specifications of the packaged software In the legacy
environment different countries or different business units use different systems based
on local standards supported by local resources In the new ERP world globally all the
countries must conform to same technical infrastructure Technical managers face
multiple critical issues implementing a global solution Most of the ERP software is
developed in technically advanced countries standards are often too high for under
developed or developing countries In an effort to bring the global organization to a
common platform different countries need different levels of upgrades In this paper the
authors review key technical issues faced is a global upgrade process to support a global
ERP implementation and how to resolve those We conclude although technical
infrastructure and business process reengineering both are equally important and each
implementation is unique but following some simple steps it is easy to prioritize each
ones during different phases of the project Also time lines of two sub-projects must
converge after initial phase and must follow a common plan for the project to be
successful Multiple scenarios are described to facilitate the process He concludes
although technical infrastructure and business process reengineering both are equally
important and each implementation is unique but following some simple steps it is easy
to prioritize each ones during different phases of the project Also time lines of two
subprojects must converge after initial phase and must follow a common plan for the
project to be successful Multiple scenarios are described to facilitate the process [38]
Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008) ldquoDevelopment and
Implementation of ERPCRM System Based on Open Source Software to Small and
Medium-sized Enterprise in Chinardquo analysed the fact that E-commerce and the
45
development of modern enterprise management raise a number of challenges in the
process of informatization of small and medium-sized enterprises (SME) in china To
address this they present an approach in which the informatization is enhanced by using
Open Source Software with customized policies We analyses the main
informationization obstacles of SME in china bring forward that the lack of bankroll
talents cost and management etc are the key problems to informationization of SME
Furthermore they have developed a textile foreign trade ERP CRM system based on
Open Source Software for the local textile distributor of china integrating financial
distribution sales and service processes given the implement method of overall planning
step-by-step implementation key breakthrough and efficiency guiding In the end we
compare the typical Open Source Software and traditional commercial software point
out the advantages of informatization based Open Source Software to SME in china and
the development trend of Open Source Software for enterprise application [132]
ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information Systems ndash a
Multi-disciplinary Method for ERP System Requirements Engineeringrdquo by Inka Vilpola
Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that ERP systems are in
most cases off-the-shelf software packages and large by their size and complex by their
structure Small and medium-sized enterprises (SMEs) require flexibility of the ERP
system because of their individual operational processes Therefore it is crucial to select
and implement an ERP system that fits the requirements of the intended target processes
To support the requirements engineering of ERP systems we have developed Customer-
Centered ERP Implementation (C-CEI) method The method introduces a multi-
disciplinary approach to the ERP project and provides in-depth understanding of the
companylsquos processes and context of use Using C-CEI method decreases the risk of
SMEs to select an inappropriate system and improves the system acceptance by the
customer companyrsquos employees In this paper we present the method and illustrate it by
three SME case studies [114]
Saumyendu Ghosh (2000) in ldquoChallenges on a global implementation of ERP softwarerdquo
discusses that some of the unique challenges in ERP implementation are satisfying
multiple countries statutory requirements and reporting to the corporate head quarters
from one installation of the software conflicting interests between different business
46
entities lack of experienced implementators in all the countries and eminent users of
multinational advantages He discusses different aspects of these challenges in detail and
point out that ERP software can provide only one solution for a particular business
process unless workarounds are available from experienced implementation Different
counties adopt different reporting and accounting practices and therefore an ERP
implementation cannot solve all problems that global corporation may have multiple
countries in the scope of the project due to absence of standard global processes across
the organization He concludes that the most important critical success factor of these
international implementations are how quickly these corporations can reengineer existing
business process to adopt best practices of using an ERP system [38]
Dong Cheng Feiyan Deng Hongtao Li (2006) ldquoCritical Factors for Successful
Implementation of ERP in Chinardquo in their study propound a theoretical model for
successful implementation of Enterprise Resource Planning (ERP) under Chinarsquos
environment and the authors analyze the model empirically through structural equation
modeling The authors find that strategically IT planning abilities leadershiprsquos support
and the skills of IT section business processing abilities learning abilities and change
management abilities has a significant positive impact on successful ERP implementation
[22]
Parijat Upadhyay (2008) in his research studies ldquoAn explorative study to identify the
Critical Success Factors for ERP Implementation in Indian small and medium scale
enterprisesrdquo explores the existing literature on ERP implementation issues in context to
small and medium scale enterprises and attempts a compilation of the factors that assume
great significance while implementing ERP in SMErsquos Given the nature and magnitude of
the problems in encountered in implementing an ERP project this study would attempt to
identify the critical success factors(CSFrsquos) for a successful implementation of an ERP
project since it calls for substantial effort on the part of all the stake holders involved to
make the implementation a success [111]
ldquoThe ERP Implementation of SME in Chinardquo Yuanqiang Xia Peter Lok and Song Yang
(2009) presented the fact that ERP implementing for small and middle size enterprise
(SME) is different from the large one Based on the analysis on the character of ERP
marketing and SMEs of China 6 critical success factors are recommended The research
47
suggests that the top management support is most important to ERP implement in SME
of China in which paternalism prevails Database of management and capital are main
obstacles ERP 1 or ERP 2 fits to demand of SME high power project team has
tremendous significance in the situation of absence of IT engineer for SME education
and training is helpful to successfully ERP implementing The results service as better
understanding the ERP implementation of SME in China and gaining the good
performance of ERP implementation [126]
Yan Xu and Chung-Hsing Yeh (2009) in the article ldquoStrategic Management of
Performance Measures for an ERP Implementation Project Teamrdquo present a new
evaluation model for managing performance measures of an enterprise resource planning
(ERP) implementation project team in an organization With the performance measures
classified into four strategic perspectives of the balanced scorecard the evaluation model
enables the goal alignment between the project team and the organization A new
algorithm using the concept of multi-attribute decision making is developed to obtain the
relative importance value for each performance measure for its contribution to the
strategic goals of the organization The higher the importance values of a performance
measure the more important the role it plays in determining the responsibilities of the
corresponding project team player Understanding the importance of the key performance
measures will help an organization well-prepare to launch a project and have the project
being organized in advance A case of an ERP implementation project in an integrated
manufacturing corporation is presented to demonstrate the applicability of the evaluation
model and its effective management of the performance measures [124]
Zhang Yanhong (2009) in his research paper ldquoERP Implementation Process Analysis
Based on the Key Success Factorsrdquo describes that Enterprise Resource Planning (ERP) is
an amalgamation of a companys information systems designed to bind more closely a
variety of company functions including human resources inventories and financials
while simultaneously linking the company to customers and vendors This thesis is based
on the theory of product life cycle and the process of ERP is divided into four phase
planning implementation stabilization and improvement Critical success factors in each
phase are identified by paper research case study and investigation An ERP
implementation process model based on the critical Success factors (CSFs) is proposed in
48
the paper The thesis analyzes the global planning stages and business process rebuilding
in the process of QIHE pharmaceuticals ERP Improvement on management and
financing before and after ERP implementation are contrasted and we come to the
following conclusions (1) The CSFs in the planning phase is comprehensive
investigation and evaluation (2) The CSFs in the implementation phase is effective
project management team (3) The CSFs in the stabilization phase is appropriate
information management system (4) The CSFs in the improvement phase is change on
demand and continue to innovate (5) The CSFs throughout the product life cycle is
business process rebuilding [131]
Van Stijn E and Wensley A (2001) ldquoOrganizational memory and the completeness of
process modeling in ERP systems some concerns methods and directions for future
researchrdquo mentioned that Enterprise resource planning (ERP) systems not only have a
broad functional scope promising to support many different business processes they also
embed many different aspects of the companyrsquos organizational memory Disparities can
exist between those memory contents in the ERP system and related contents in other
memory media such as individualsrsquo memories and the organizational structure and
culture It is our contention that in general these disparities or memory mismatches as
we will refer to them lead to under-performance of ERP systems In this paper they focus
on potential memory mismatches that may arise with respect to the embedding of process
knowledge within ERP packages Packages such as SAP provide a varied and rich
environment for process modeling However they suspect that there are still many
instances where process knowledge is either lost or represented in different ways in
different parts of the organization The overall thrust of the paper is to identify a variety
of concerns intriguing questions and avenues for future research [112]
Eric Kimberling (2008) in his article ldquo The Role of Lean Six Sigma in ERPrdquo insisted
that there are a number of things to consider when considering a new ERP system like six
sigma lean manufacturing or other business transformation projects that has the capacity
to measure reducing waste managing change well continuous improvement etc [133]
William H Gaw (2010) ldquoEight Basics of Lean Six Sigma for Manufacturing Firmsrdquo In
the efforts to draw closer to customers many manufacturers have lost focus on what
should be a companyrsquos primary success factor ndash profitable growth In todayrsquos competitive
49
manufacturing environment it takes more than quick fixes outsourcing and downsizing
for companies to consistently achieve their growth and profit objectives While these
options may yield temporary financial relief they will not lead the way to long-term
growth and profitability For companies to grow and consistently exceed bottom line
expectations they need to get lean And to get lean they should master eight basics of
Lean Six Sigma in the form of information integrity performance measurement
sequential production point-of-use logistic cycle time management production linearity
and resource planning and customer satisfaction [134]
Brehm L and Markus M L (2000) in The Divided Software Life Cycle of ERP
Packages mentioned that traditional information system life cycle (SLC) focuses on the
activities performed by company developing implementing and maintaining software for
its own internal use Enterprise resource planning (ERP) software packages change the
SLC in several important ways This paper presents an extension of the SLC model for
ERP packages The lsquodivided software life cyclersquo (DSLC) model features an equal
emphasis on the activities performed by the ERP adopting company and the ERP vendor
[15]
Alavi M and Carlson P (1992) A Review of MIS research and disciplinary
development The perceived status of journals in which MIS research is published is an
important issue to academics The number of IS-related journals has increased through
the years yet it is not obvious which are the ldquoleadingrdquo journals or what criteria should be
used to determine this This article addresses these issues by (1) evaluating and
analyzing previous studies in which MIS related journals have been ranked (2)
determining top-ranked journals and placing them into two levels or tiers based on
previous studies and (3) establishing a profile through a systematic analysis of the nine
journals in the first tier This study identified 17 highly ranked journals for publication
Nine were placed in the first tier and eight in the second tier In addition to IS-specific
journals publications included management science computer science and business-
oriented journals The individual strategies for improving software productivity are
identified Issues related to software costs and controlling them are examined and
discussed It is pointed out that a good framework of techniques exists for controlling
software budgets schedules and work completed but that a great deal of further progress
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 7
18
procedure stage whereas information from the upgrade business case and upgrade
planning resources documentation are used for mapping out the software replacement
stage of GArsquos maintenance model Data analysis identified potential benefits of the
maintenance model to ERP-using organizations generally and to the case firm in
particular with the primary business objectives This study provides practitioners with
guidelines on planning implementing and upgrading an ERP [86]
Yao Yurong amp He Houcun (2000) in the article ldquoData Warehousing and the Internetrsquos
impact on ERPrdquo examines the advances in data warehousing and internet technology
spurring ERP development As per their findings these systems still needed some
improvements To keep pace ERP systems themselves have undergone considerable
change in the past 10 years Thus in making the right ERP choices itrsquos helpful to know
how two key technologiesmdashdata warehousing and the Inter-netmdashare transforming these
complex systems SAP a leading ERP company introduced the business warehouse as a
complement to its R3 application suite Oracle a SAP competitor also sells its own
solutions Action (an activity-based management system) Balanced Scorecard (a
business performance management package acquired from Graphical Information Inc)
sales analyzer and warehouse analyzer So Oracle has also concluded that the
combination of data warehousing and ERP is an effective solution for counteracting the
drawbacks of the two systems [127]
In the research publication ldquoMatching ERP System Functionality to Customer
Requirementsrdquo Colette Rolland amp Naveen Prakash (2001) propose an approach for
matching ERP system functionality to customer requirements The assumption made was
that the ERP system postulates a set of requirements that are worth eliciting from the
ERP documentation as abstractions of the ERP system functionality Then the
requirements engineering process is a process that matches the ERP set of requirements
against organizational ones The paper presents the Map representation system and the
matching process The process is illustrated by considering the Treasury module of SAP
and its installation in the financial management of a cultural exchanges unit
Conclusively one can successfully expect to lay down such generic maps for capturing
change strategies for companies moving from single to multi customer oriented services
[91]
19
In ldquoEnterprise Resource Planning (ERP) ndash Breakthrough or Buzzwordrdquo A Fitzgerald
(1992) suggests that to understand the structure of the ERP manufacturing solutions one
must examine both the technology underlying these systems together with the
environments and functionality required Finally to make the lsquobusiness casersquo for such
systems we must focus on the benefits that can be achieved by using ERP systems [33]
In the proceeding of 34th
Hawaii International conference on System sciences an
important article on CSFs in ERP ldquoThe Impact of Critical Success Factors across the
Stages of Enterprise Resource Planning Implementationsrdquo by Toni M Somers amp Klara
Nelson (2001) was published This paper describes the impact of Critical Success Factors
(CSFs) across the stages of Enterprise Resource Planning (ERP) implementations using
the responses from 86 organizations that completed or are in the process of completing an
ERP implementation This research not only identified which CSFs are most critical in
ERP implementations but also determined which factors are temporal ie significant in
the implementation process for a particular period in time That information can now be
used to identify anticipate and allocate time and resources across those factors that need
attending to for effective project monitoring It also provides an understanding of the
factors and their importance throughout the various phases of implementation which in
turn can serve as a useful guide for firms in the process of implementing an ERP system
[103]
In the proceeding of 34th
Hawaii International conference on System sciences IEEE 2001
ldquoTailoring ERP systems A spectrum of choices and their implicationsrdquo Lars Brehm amp
Armin Heinzl M Lynne Markus (2001) depict that the IS literature distinguishes between
custom-built and off-the-shelf software Enterprise resource planning (ERP) packages are
often viewed as off-the-shelf software because adopters implement them by setting
parameters (called configuration) rather than by traditional programming Making
changes to ERP software code (called modification) is usually strongly discouraged by
vendors and implementation consultants Nevertheless field research has shown that
many companies have had to modify ERP software in various ways to meet essential
business needs In this paper they describe a portfolio of tailoring options between
configuration and modification with important implications for implementation risk and
the difficulty of ERP system upgrades but with companyrsquos advantages [16]
20
Babak Akhgar Jawed Siddiqi and Samir Al-Khayatt (2002) summarized their findings in
the article ldquoStrategic exploitation of ERP for e-businessrdquo for the Proceedings of the
International Conference on Information technology Coding and Computing (ITCCrsquo02)
This paper based on research from an ongoing IS investigation project at a large
multinational company examines the relationship between ERP amp E-business The paper
discusses different scenarios of ERP implementation status that organizations may find
themselves It examines the components of e-business success namely visibility of
information processes and technology that will be either enabled or restricted by ERP
What transpires from this research is that for many start-ups e-business becomes
synonymous with business in general Ultimately they conclude that e-business should
form part of the corporate strategy and that IS or IT strategy should form the basis for
determining ERP implementation structures thereby ensuring e-business requirements
become the platform for ERP [2]
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther G Chattopadhyay (2004) The paper
presents research on ERP system characteristics particularly relevant for Small to
Medium Enterprises (SME) Authors investigated the duration of the project phases to
establish the human resource requirements through the selection implementation and
support of the ERP project Common factors that are crucial for an SME in the
manufacturing sector embarking on an ERP system are identified in this paper for system
selection and implementation User survey was carried out for a target group of SME
companies around Brisbane Australia The survey captured both qualitative and
quantitative data relating to the ERP system in place at a target group of electrical and
electronic equipment manufacturing companies located in South East Queensland
Australia Quantitative analysis was carried out on the cost of the ERP selection and
implementation project both in terms of capital outlay and human resources [87]
Reported implementations recognized the benefits of aligning business processes with a
target ERP system in the period prior to the go-live and authors summarize following
points
ERP system as a business tool for growth of SME
21
Critical selection factors unique and realized benefits different for each business
SME having limited resources (money people time) with which to evaluate and
implement ERP
Ongoing costs
Overall success
In the paper study ldquoERP Training Strategies Conceptual Training and the Formation of
Accurate Mental Modelsrdquo Tony Coulson Conrad Shayo CE Tapie Rohm Lorne
Olfman (2003) examined a major determinant of successful ERP implementation end-
user training The study finds that a workflow conceptual advanced organizer strategy
(TCT group) improves end-userrsquos mental model accuracy over time as demonstrated by
the subjectslsquoability to recall ERP specific concepts Results indicate that a conceptual
advance organizer is an important component of ERP training and should be incorporated
into an organizationlsquos training strategy In general the study supported the framework
and found that by adding a tool conceptual knowledge-level to the training the end-users
developed more accurate mental models By using the knowledge-level framework and
incorporating tool conceptual knowledge into an organizationlsquos training design
organizations may see an improvement in overall ERP implementation results For
example because ERP training is very expensive those within an organization that attend
ERP training are often asked to train others in the organization when they return This
study shows that adding a tool conceptual knowledge-level to their training improves
their ability to recall and re-articulate their understanding of the system By building the
knowledge-levels that enable more effective understanding and communication of
concepts learned could be an invaluable asset to any companylsquos training and
implementation strategy [24]
ldquoEnterprise Resource Planning Challenges for Small and midsize Business (SMBs)rdquo
Analyst Katherine Jones (2004) of Aberdeen suggests that small and midsize businesses
are primarily driven by operating cost pressures perceived as the biggest challenge and
their key challenges are
1 Insufficient funding for corporate strategies and initiatives
2 Lack of clearly defined corporate vision and goals
3 Ineffective communication of corporate strategies and initiatives
22
4 Metrics that do not sufficiently provide incentives employees to supportachieve
corporate goals
5 Inability to accurately determine and plan for customer demand
As the immense variability in how SMB companies conduct business still predominates
the SMBs see technology as the enablers of their strategies Specifically cited are the
increased availability of advanced analytics decision support and reporting tools as well
as the availability of process-specific business applications [55]
Christina Soh Sia Siew Kien and Joanne Tay-Yap (2004) through their study on the
subject ldquoCultural Fits amp Misfits Is ERP a universal Solutionrdquo Present early findings
from a larger ongoing study The typology of misfits and examples are drawn from the
review of implementation documents and supplemented by interviews with key project
team members from one hospital [102]
In their White Paper ldquoERP Selection ndash Right Tracking Enterprise Change ITSg-GCPrdquo at
TCS Dr Joginder Singh Lamba amp Swapnil Kitcha (2007) analyzed the fact that
business changes in the form of portfolio expansion structure decentralization and supply
chain integration drive new investments in ERP Besides the need for more functional
areas within the IT landscape (BI CRM PLM and Product Information Management)
demands new interfaces with ERP backbone Heterogeneous compatibility and varied
maturity across modules elicit interest in best of breed solutions in ERP [64]
In ldquoFuture of ERP systems and Microsoft Dynamics Learn about XML and Web
servicesrdquo McKie (2008) discusses what sort of requirements XML and web services put
on business applications He further explains ERP systems need to be able to create
XML schemas (data specifications) and they need to be able to import and export data in
XML documents The more data an ERP user needs to share with business partners the
more important is to have these capabilities In addition to XML McKie identifies a
second type of Web service that offers functionality rather than data is expected to
emerge in the form of business partner integration analytics and alerts [79]
David Caruso (2005) Senior Vice President Industry Research AMR in his article
ldquoProcess Productivity and Profit The SMB Executiversquos Framework for ERP
Investmentrdquo narrated that SMBs which are not aggressively developing an effective ERP
strategy will be at some disadvantage to their peers by 2006 Forward-thinking executives
23
will consider strategic business capabilities as the drivers for enterprise resource planning
(ERP) investment justification In a 2005 study that AMR Research conducted with over
550 companies regarding their ERP investment plans and found that only 27 of small
companies (fewer than 500 employees) are currently using ERP This is in sharp contrast
to the 57 of large companies (500 to 2499 employees) and 70 of enterprise-sized
companies (2500-plus employees) that have operational ERP systems Given this data it
is not surprising that almost 50 of the respondents interviewed will be making
substantial changes to their existing ERP systems over the next 12 to 18 months The
challenge for executives charged with the decision is establishing a powerful context for
making the ERP investment [20] When considering the ERP investment decision from
the perspective of the executive suite there are four overarching drivers that frame what
executives need to consider
1 Productivitymdashgetting the most from your valuable employee assets
2 Connectivitymdashworking collaboratively with your key customers and suppliers
3 Business insightmdashImproving the speed and quality of decision making
4 Total cost of ownershipmdashreducing the cost of owning and operating IT systems
Yong Jean John amp Ki-Henry Yim (2001) in an article ldquoA study on an Environment of
ERP Introductionrdquo includes the role of ERP perception of ERP value ERP plan
direction and also argues various checkpoints as a preview of ERP introduction In
conclusion they list checkpoints in sequence based on the mean values that provides
indications of the relative importance As a result the most important checkpoints were
Performance of Introduction Main Reference Sites Availability of Current Resources
Easiness of Introduction Operation System Past Records of Supply Market Share and
Vendor Size The results shown in this paper has shown strong implications for ERP
vendors Vendor size and market share received the least attention amongs all the
checkpoints described in the study [125]
One step forward IQMS Executive White Paper (2007) ldquoHow Successful ERP Selections
are Made ldquo this paper is not just about want and donrsquot want from the various people in
the organization It suggests that it should be a long lasting purchase that provides the
users the feeling of a partnership As the user is not just buying software they are also
buying into a vendor and their company culture The combination of software capability
24
and vendor credibility should be a major purchasing factor There is more to a lasting
ERP purchase than that There are several platform thoughts on technology how many
vendors are included the demonstration the always useful buzz words with all the hype
on service oriented architecture (SOA) best of breed lean manufacturing and all the
other phrases floating in the industry today implementation time customer referrals
customer retention look at your company objectively etc [49]
Robert C Beatty amp Craig D Williams (2006) in ldquoBest Practices for Successfully
Implementing an ERP Upgraderdquo maintain that an ERP upgrade is deceptively complex
and can be daunting especially for organizations ignorant of the massive effort required
to do it correctly One study of mid-size to large companies conducted by AMR Research
found that 67 of these companies are implementing some form of ERP while another
21 are evaluating potential ERP systems solutions As a growing number of companies
adopt ERP systems ERP systems implementation and upgrades are identified as one of
the top five IT priorities among global CIOs according to independent surveys conducted
by Morgan Stanley and Deloitte amp Touche IDG Research Services Group In
conclusion this article provides organizations with a list of the eight most common
recommendations suggested by organizations that have already completed at least one
upgrade to their initial ERP implementation [11] These are
Finding 1 Build your business case on new functionality
Finding 2 Treat the upgrade like a new project
Finding 3 Keep the team together
Finding 4 This is a business project not an IT project
Finding 5 Watch for hidden infrastructure costs
Finding 6 Un-customize customizations
Finding 7 Test like your organizationrsquos future success depends on it
Robert Davison (2002) raises a valid point through his article ldquoCultural Complications of
ERPrdquo discussed cultural misfits from a Singaporean perspective This implies that a one-
size-fits all or one-business-model- fits-all approach is unlikely to be successful As much
of ERP literature originates from and describes application contexts in North America
and to a lesser extent Western Europe where most ERP developers are located and
implementations have occurred Developers and consultants need to adapt their products
25
and services for different cultural markets Awareness of cultural differences and prefer-
ences will certainly improve the assessment of ERP suitability and any subsequent
implementation [27]
A group of researchers Siew Kien Sia May Tang Christina Soh Wai Fong Boh (2002)
from Information Management Research Center Nanyang Business School in their
research paper ldquoEnterprise Resource Planning (ERP) Systems as a Technology of Power
Empowerment or Panoptic Controlrdquo explores ERP as an ambivalent technology of
power According to them on the one hand it may tighten management control by
bringing a new level of panoptic visibility to organizational activities on the other hand
the embedded business model within the ERP may drive empowerment of employees and
greater control relaxation through the configuration of new process design This research
seeks to understand how the different forces play out in the context of ERP
implementation and to explore the implications for traditional power distribution in
organizations It adopted a mixed qualitative-quantitative methodology in an intensive
case study of a restructured hospital in Singapore A survey of 260 users was
administered supplemented by approximately 27 hours of individual interviews with 23
people Results reveal that although ERP can facilitate both empowerment and panoptic
control management has consciously resisted empowerment by working to reinstitute the
power lost through the ERP implementation On the other hand the new panoptic
visibility though partially unintended appears to have evolved naturally and was readily
learned and applied in the organization This study is significant in exposing the
likelihood of ERP implementation as a technology that perpetuates management power
At least in the context of the hospital studied it is yet another means of enlarging the
management authority for ldquototal controlrdquo Current articulations of ERP by practitio-
nersmanagement as empowering thus appear to be more theoretical than real This is
consistent with the perspective of critical theorists (eg Sewell amp Wilkinson 1992
Weber 1947 Tannenbaum 1968) that organizational life will become increasingly
rationalized and more controlled Thus the findings support the critical perspective in
exposing the likelihood of ERP implementation to perpetuate management power Being
a single case study the external generalization of the above analysis is limited Future
research should be sensitive to the formative context (eg the nature of the pre-existing
26
structure the Asian cultural context) and the distribution of authority among
organizational actors (eg presence of management intention) in an organization The
dynamics of panoptic control and empowerment during ERP implementation may be
different in organizational transformation contexts or in organizations with more fluid or
organic pre-existing structures It may also be interesting to follow the analysis of
panoptical and empowerment over an extended period to get a better understanding of
their continuously evolving dynamics [98]
Suprateek Sarker and Allen S Lee (2003) in the paper ldquoUsing a Case study to test the
role of three key social enablers in ERP implementationrdquo indicate that three key social
enablersmdashstrong and committed leadership open and honest communication and a
balanced and empowered implementation teammdashare necessary conditionsprecursors for
successful ERP implementation In a longitudinal positivist case study we find that
while all three enablers may contribute to ERP implementation success only strong and
committed leadership can be empirically established as a necessary condition This
presents a challenge to future ERP researchers for resolving apparent contradictions
between the existing literature and the results of our analysis and for investigating the
nature of interactions among the leadership communication and team characteristics
[93]
Srinivas Mantha (2007) in the article ldquoERPndashBusiness Processes with IP
Communicationsrdquo explained the fact that the key to new competitive capability is
envisioning the enterprise in terms of business wide relationships to improve user
experience across the network exploit knowledge and enhance and accelerate core
processes IP Communications is the catalyst for this capability It enhances the value of
the user experience exploits knowledge value and increases the value of business
processes [76]
Linda Askenaumls amp Alf Westelius (2000) from Linkoumlping University Sweden explore
a new vista of ERP through their literature ldquoFive Roles of an Information System A
Social Constructionist Approach to Analyzing the use of ERP Systemsrdquo This paper
presents a novel way of thinking about how information systems are used in
organizations Traditionally computerized information systems are viewed as objects In
contrast by viewing the information system as an actor our understanding of the
27
structure process increases The user being influenced by the ERP (Enterprise Resource
Planning) system and giving it an actor role thereby also confers agency on the ERP
system Through its very use it influences actions and thus the structure as well Based
on a case study of ERP use in an ABB company for over a decade five different roles
played by the ERP system were identified The ERP system acted as Bureaucrat
Manipulator Administrator and Consultant or was dismissed (Dismissed) in the sense
that intended users chose to avoid using them In conclusion the purpose of this approach
is not to ldquoanimaterdquo the information system to give it life or a mind of its own but rather
to make explicit the socially constructed roles conferred on the information system by
users and others who are affected by it On this basis it is possible to suggest how the
roles can help us opening up the new areas of exploration concerning the fruitful use of
information technology [70]
Jinyoul Lee Keng Siau and Soongoo (2003) conducted a study on the topic ldquoEnterprise
Integration with ERP and EAIrdquo They state that to survive and thrive in these hypercom-
petitive markets it is essential for a company to understand rapidly changing business
circumstances To rapidly respond to a changing environment an enterprise must
integrate business functions into a single system efficiently utilizing information
technology and share data with third-party vendors and customers While ERP forces the
adoption of standard business processes EAI enables enterprise integration over business
object levels ERP thereby supports a centralized business strategy while EAI naturally
accommodates decentralized business processes Lastly they observe the fact True
enterprise integration means both technical and behavioral integration It is not simply
integrating different systems applications or business processes dispersed across an
enterprise It is integrating structural changes different behaviors and various
information systems in an enterprise Enterprise integration is costly and time-
consuming thus management should be cautious in the design of the project
Organizations should not blindly rush into new technologies Top management should
first strive to understand their business and needs for enterprise integration and then
select a methodology of enterprise integration [68]
Wilhelm Scheer and Frank Habermann (2000) in ldquoMaking ERP a Successrdquo have used
business process models at an operational level of e-business to achieve positive results
28
They have talked of different scenarios in e-business As in Business-to-Business
applications such as Supply Chain Management the user has to connect the ERP systems
of all business partners This means he has to fight not only with the thousands of
parameters of a single ERP system but with twice as much (or even more) Another likely
scenario is that the business partners involved in an inter-organizational supply chain are
using ERP systems of different vendors In this case a business process model can be
firstly used to define the conceptual value chain Secondly the conceptual model that is
independent from a certain software vendor can be linked to the repositories of the
different ERP systems in order to customize an integrated software solution These
examples demonstrate that business process models play a major role for the success of e-
business Some ERP vendors like SAP have understood this development and are already
implementing their first model-based e-business applications [94]
Ash CG (2001) in An e-Commerce Model for Extending ERP Systems onto the
Internet An Australian Perspective stated that an established research framework of e-
Business change is used to identify the factors for success of this e-business project
within an ERP environment The results confirm that a successful project was found to
have facilitators in all components of the business framework including the change
environment and project management Further there is the implication that the least
successful e-business projects will have inhibitors in both dimensions especially in the
area of cultural readiness and change management In this case study conflict arose
between local project management initiatives versus a centralized autocratic global ERP
deployment This highlights the need to encourage the balancing of conflicting
organizational knowledge when contemplating the adoption of e-business solutions [7]
Huigang Liang Yajiong Xue William R Boulton Terry Anthony Byrd (2004) ldquoWhy
Western Vendors donrsquot dominate Chinarsquos ERP Marketrdquo Examined cases of failed ERP
system implementation in China and explaining the unique circumstances These foreign
ERP implementation failures emphasize the need to localize strategies even for the
global ERP leaders The general manager of a foreign ERP vendor explained ldquoOne
should understand nationrsquos history and its culture before one starts doing business with
foreign companiesrdquo The cases of failed implementation suggest global ERP vendors
require more than superior technology and experience Their ERP strategies must also
29
address the cultural differences affecting ERP implementations Strategies need to
overcome problems relating to language reporting formats and content cost control
capabilities frequent business process redesigns effective customer support and capable
consulting partners [69]
In the research findings ldquoAn Agency Theory Model of ERP Implementationrdquo Vedabrata
Basu Albert L Lederer (2004) develop a model of testable propositions for applying
agency theory to study the relationship between implementation consultants and client
organizations deploying the ERP systems and to consequently evaluate how the
relationship affects the implementation success Therefore management needs to know
the factors that drive successful ERP implementation a product of the continuous
interaction between the implementation consultants and client firms Agency theory has
been successfully used by different researchers to explain relationships between two
parties seeking a common outcome This paper develops a conceptual model with the
variables and relationships that may play a critical role in explaining the sources of that
frustration It offers a foundation for research that can extend the applicability of agency
theory can help clients and consultants manage their relationships during the
implementation process and thus help them enhance the probability of ERP systems
implementation success It may also be useful for managing other outsourced IS projects
that have implementation settings similar to ERP [10]
Christian Vogt (2002) ldquoIntractable ERP A Comprehensive Analysis of Failed Enterprise-
Resource ndash Planning Projectsrdquo makes an analysis of possible causes that led to the
disasters for ERP implementation failures and suggests software engineering processes
that help avoiding such outcomes The Model Based Architecting and Software
Engineering (MBASE) guidelines developed by Prof Barry Boehm and Daniel Port at
the Center for Software Engineering (CSE) at USC provide a base for these elaborations
for a long time SW Engineering experts have praised commercial-off-the-shelf (COTS)
packages as the panacea to complex software development Far from it the elaboration
in this survey shows that the deployment of COTS packages may be extremely intrinsic
one does not know whether some COTS software adheres to its interface specifications or
how deficient it is or how well its performance scales up as workload demand grows
The upshot is that COTS software will always be an alien element in the software to be
30
developed and it should be considered that way Dye-in-thendashwool COTS package ERP
systems exhibit plenty of dangers Only if appropriate risk management and enough time
for stepwise employment is provided for ERP system can be tamed [115]
In the research findings ldquoImplementing Best Practices in ERP for Small amp Medium
Enterprisesrdquo Rashmi Jha A K Saini and M N Hoda (2008) provides an interesting
insight into taking ERP implementation as a project and develops problem driven
approach to examine its complex phenomena The implementation process will be
divided into several components which will reflect the nature of ERP projects and makes
them distinctive from other systems design methods This paper also addresses critical
issues relating to developing entrepreneurship for sustainable development of small and
medium size enterprises(SMEs) for its future extensions and added benefits It may also
be useful for managing other outsourced Information System (IS) projects that have
implementation settings similar to ERP [53]
Saumyendu and Maya Daneva (2003) in ldquoLessons Learnt from Five Years of Experience
in ERP Requirements Engineeringrdquo summarizes one companyrsquos five years of experience
in making a generic ERP RE model a live process It rests on previously published ERP
RE process assessment results and reports on what we learnt with particular focus on
typical issues organizations face when adopting a standard model and solutions that can
be used to avoid those issues in the future Each of our lessons is described together with
a RE practice technical foundation for the practice and engineering techniques for the RE
practitioner The lessons were used to refine our Corporate Documentation Model a
process-focused and template-based ERP-architecture framework [40]
In ldquoResearch on Agent-Based Architecture of ERP For Small amp Medium-Size
Enterpriserdquo Rui-Xue Fu Zhan-Hong Xin and Can Chen (2007) suggests that with the
rapid development of information technology and the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward To address these problems a MAERP system architecture has been developed
in which the agents are classified into four types F-Agent for realizing an operation
application C-Agent for coordinating with other agents I-Agent for a communication
31
tool between the user and the MAERP system and T-Agent for performing specific tasks
and data collecting [35]
Xavier Franch and Juan Pablo Carvallo (2003) in the research paper Using Quality
Models in Software Package Selection found that the absence of structured descriptions
of quality features and user quality requirements makes selecting the right software
package difficult The authors propose a methodology for describing the quality features
of domain-specific software packages uniformly and comprehensively using ISOIEC
9126-1 quality standards as a framework [34]
In the paper study ldquoRevisiting ERP Systems Benefit Realizationrdquo Paul Hawking and
Andrew Stein (2004) maintains that many companies initially implemented their ERP
systems to solve Y2K and disparate systems issues These same companies are now
looking at a how to strategically leverages their investment in these systems through the
implementation ldquosecond waverdquo functionality This paper identifies the expected and
actual benefits of ldquosecond waverdquo implementations In addition it identifies barriers which
limit the benefit realization The findings reinforce that ERP implementations are people
focused projects which rely heavily on change management for success [45]
Hamid Nach and Albert Lejeune (2008) ldquoImplementing ERP in SMEs Towards an
Ontology Supporting Managerial Decisionsrdquo state that the purpose of this research
project is to consolidate and formalize as ontology on the basis of an extensive literature
review the key processes and skills required for successful implementation of ERP in an
SME Using the Proteacutegeacute software program the research identified and formalized 395
terms each of which has its own definition Exploitation of this ontology could take
multiple and varied forms including creation of a learning system an on-line cooperation
platform or a project management process mapping tool contributing to successful use of
ERP in SMEs [81]
While Gul Tekin Temur and Sitki Gozlu (2008) ldquoDetermination of Performance Criteria
for ERP Software Technologyrdquo mention that the main goal is to determine the
performance criteria for ERP software technology with respect to their sources Today
the companies are in interaction with many internal and external partners and have to face
many situations in various environments Especially many small and medium sized firms
utilize ERP software technology to plan their business interactions in the chain In this
32
study firstly a literature search is accomplished Then in order to reveal the performance
criteria a large-scale automotive company has been selected to conduct interviews with
managers Also the meeting reports of a few small and medium-sized companies have
been analyzed As a result of the analysis on findings the common views of the firms
about performance criteria are classified into four groups according to their sources such
as people technical managerial and economical The sub factors of these main criteria
are also taken into account in order to point out the origins of the criteria The results of
the study will provide insight to researchers and as well as to professionals in the practice
[108]
Maya Daneva (2004) in ERP Requirements Engineering Practice Lessons Learned
mentioned the fact that organizations implementing Enterprise Resource Planning (ERP)
systems have been increasingly adopting generic off-the-shelf requirements engineering
(RE) process models Yet little information exists about the challenges of making a
generic RE model a life process This article discusses why bringing an off-the-shelf
process in is not a sufficient foundation The author shares experiences acquired over the
past five years of eliciting modeling and validating requirements in ERP projects and
highlights typical issues and their solutions Among the keys to success are planning RE
model use in the clients context and installing processes to support key RE activities [25]
While the article ldquoRescuing Troubled Software Projects by Team Transformation A
Case Study with an ERP Projectrdquo by Kim Man Lui and Keith C C Chan (2008)
differentiates various reasons of ERP project failures It further states that many software
projects fail whether failure is measured in terms of budget schedule or some other
requirement The causes of such failures are many but are not always easily recognized
This is not the least due to the human dimension of corporate activities as spurious or
misdiagnosed issues in Enterprise Resource Planning (ERP) projects can take on a life of
their own and become a magnet for company politics This paper reports an industrial
case in which the senior management attempted to deal with a troubled ERP
implementation (SAP R3) in an international fast moving consumer goods (FMCG)
company during 2001 and 2002 This paper reflects this dimension as it uses original
emails and PowerPoint slides to recount a number of representative episodes in a troubled
but ultimately successful project At the heart of this success is the realization that
33
whereas it can be difficult and time-consuming to do root-cause analyses it is relatively
simple to identify problem owners In this case the senior management without IT
backgrounds turned around a failing project by reorganizing the team structure according
to process areas so that issues in each process area had one problem owner We
summarize the managementrsquos actions into a troubleshooting framework and in addition
suggest three actions for rescuing troubled projects keep the project manager but narrow
down the managerrsquos scope of responsibility to one or two process areas assign the right
people to be responsible for other process areas and have the General Manager chair the
ERP meetings [60]
In the PICMET 2006 Proceedings on ldquoOptimizing the Change Management of Enterprise
Resource Planning Systems Implementationsrdquo Onur Kerimoglu and Nuri BaUogluI
(2006) maintain that although Enterprise Resource Planning (ERP) systems are being
used widely all around the world they also carry out many problems as well as their
benefits These systems are well known for enhancing cross functional efficiency and
effectiveness through the integration of all information flowing throughout an
organization However during different project life cycle stages of ERP systems this
integration may not be provided because of the formulation of incompatibilities which
are greater than the optimum level among different parties like ERP system processes of
the organization and system users Within this study existing incompatibilities between
these parties are modeled respectively In common the model propose that the ERP
product mostly matching with the processes of the organization should be selected
processes of the organization should be changed for being compatible with the ERP
system and system users should be educated new qualified people should be hired etc
for making the system and processes more familiar to people Here the point is that all of
these are done for keeping incompatibilities between the ERP system processes and
people at minimum level because this minimalism will avoid optimization and utilization
problems This study not only handles problems of ERP from a newer perspective but
also provides insight to managers about managing the change and utilizing their resources
efficiently for adopting the ERP software across the organization [59]
Capaldo Guido and Rippa Pierluigi (2008) in ldquoA methodological proposal to assess the
feasibility of ERP Systems Implementation Strategiesrdquo stated that Continuous failures in
34
ERP systems implementation project are today the main challenge in the feasibility of
integrated information systems Failure can be determined by different factors both from
technological side and organizational side if not well managed In this paper we propose
a methodological approach based on technochange management in order to assess the
feasibility of ERP implementation strategy and reduce the risk of failure in terms of
project metrics and early operational metrics A case study in a big Italian
Telecommunication Firm will be presented [19]
ldquoCase Study of PLIVA Pharmaceuticals Inc - Aligning ERP System Implementation
with Business Process Changerdquo is very relevant and contemporary paper presented by
Vesna Bosilj Vuksic and Mario Spremic (2004) The main objective of this paper is to
present the impacts of information technology (IT) and enterprise resource planning
(ERP) systems in business process renovation projects A case study of business process
reengineering project and the implementation of the SAP software solution in PLIVA
(PLIVA pharmaceuticals Inc) are presented [116]
In ldquoKey Factors Driving the Success of Technology Adoption Case Examples of ERP
Adoptionrdquo Chonyacha Suebsin and Nathasit Gerdsri (2009) address the issues that
impact technology adoption within an organization Several factors influencing
technology adoption process are identified from the literature review Case examples of
the adoption of a new management technology Enterprise Resource Planning (ERP) are
presented to illustrate the situations of technology adoption in organizations From the
case examples the factors influencing technology adoption in organizations are
consistent with the factors identified from the literatures The further discussion also
reveals the additional determinants including the clarification of project scope individual
commitment and communication which should be taken into consideration when an
organization adopts a new technology [105]
Maya Daneva (2002) in her paper ldquoUsing Maturity Assessments to Understand the ERP
Requirements Engineering Processrdquo mentions that applying standard requirements
engineering (RE) processes is a major trend in todayrsquos Enterprise Resource Planning
(ERP) software engineering It emerged five years ago with the promise to provide a
mechanism helping ERP project organizations deliver their business requirements timely
and within budget This paper looks in depth at a standard ERP RE process and seeks
35
answers to four questions how well it is defined what are the risks associated with its
application in matureimmature organizations what are the essential practices that
contribute to its success and what are the costs of the process and the quality of the
delivered results The main motivation of this paper is to provide some practical advice
for using assessments to increase project teamsrsquo understanding of the ERP RE process
[26]
Fan JC and Kwoting Fang (2006) ldquoERP Implementation and Information Systems
Success A Test of DeLone and McLeans Modelrdquo present their research that develops
and tests a theoretical extension of DeLone and McLeans model of information system
(IS) success which explains personnel belief that contributes to users utilization of ERP
(enterprise resource planning) systems The extended model is tested using the structural
equation model (SEM) a survey of 202 end-users from ten Taiwanese enterprises that
has implemented Data Systems workflow ERP systems is conducted The theoretical
model proposed in this study provides insight into how the concept of useful perception is
incorporated into DeLone and McLean model and plays a critical mediated role to
influence system usage and its associated satisfaction The implications of these findings
for researchers and practitioners are discussed [32]
In the research findings ldquoManaging ERP Implementation Failure A Project Management
Perspectiverdquo Charlie C Chen Chuck C H Law and Samuel C Yang (2008) stated that
Information Technology (IT) projects are susceptible to changes in the business
environment and the increasing velocity of change in global business is challenging the
management of enterprise systems such as enterprise resource planning (ERP) At the
same time system success depends on the rigor of the project management processes
Scope creep poor risk management inadequate allocation of human resources over time
and vendor management are some common problems associated with the implementation
of an enterprise system These issues pose threats to the success of a large-scale software
project such as ERP This research adopts a case study approach to examine how poor
project management can imperil the implementation of an ERP system Having learned
the lessons from the failure of its first ERP implementation the company in this case
reengineered its project management practices to successfully carry out its second ERP
implementation Many critical project management factors contributed to the failure and
36
success of this companyrsquos ERP system This study explores and identifies critical
elements of project management that contributed to the success of the second ERP
implementation For those organizations adopting ERP the findings provide a roadmap
to follow in order to avoid making critical but often underestimated project management
mistakes [21]
Rafa Kouki Robert Pellerin and Diane Poulin (2008) in An Exploratory Study of ERP
Assimilation in Developing Countries The Case of Three Tunisian Companies assessed
that ERP systems could be considered as the most difficult systems to be assimilated
Very little research however has been realised to investigate the determinants of success
of the ERP assimilation process There has been also a dearth in research about ERP
projects in general and ERP post-implementation and assimilation in particular in
developing countries Using a case study methodology grounded in the diffusion of
innovation theory this study tries to understand the factors that could improve or
challenge the ERP systems assimilation process in three Tunisian companies Our
findings highlighted the importance of several factors such as top management support
strategic alignment IT expertise training communication organizational culture and
coercive pressures [62]
Ian Sommerville (2008) Construction by Configuration Challenges for Software
Engineering Research and Practice observed that past ten years have seen a radical shift
in business application software development Rather than developing software from
scratch using a conventional programming language the majority of commercial
software is now developed through reuse ndash the adaptation and configuration of existing
software systems to meet specific organizational requirements The most widespread
form of reuse is through the use of generic systems such as ERP and COTS systems that
are configured to meet specific organizational requirements In this paper he discussed
the implications of software construction by configuration (CbC) for software
engineering Based on his experience with systems for medical records and university
administration he highlighted some of the issues and problems that can arise in
construction by configuration he discussed problems that arise in CbC projects and
identify a number of challenges for research and practice to improve this approach to
software engineering [104]
37
SV Deshmukh and RR Lakhe (2008) in the research paper ldquoSix Sigma ndash An Innovative
Approach for Waste Reduction A Case Study of an Indian SMErdquo present a case study
aimed at reducing waste at an SME engaged in manufacturing of corrugated boxes The
Define Measure Analyze Improve Control strategy of Six Sigma methodology was
followed to identify probable causes for wastages After studying the system and
implementation of six sigma tools an overall 227 waste reduction was achieved
Individually out of a total seven processes 5 showed waste reduction in excess of 40
This reduction was statistically significant at Plt005 The study confirmed successful
implementation of six sigma to minimize waste generation and in terms saving in
manufacturing costs or increasing the bottom line [29]
While in ldquoERP Implementation Critical Success Factors - The Role and Impact of
Business Process Managementrdquo Yasar F Jarrar Abdullah Al-Mudimigh and Mohamed
Zairi (2000) investigate the role and impact of business process management in
successful ERP implementation The paper starts by defining business process
management ERP and the ERP critical success factors The impact of business process
management on successful ERP implementation is then assessed through looking at the
experiences of several organizations The paper concludes by highlighting best practices
for capitalizing on business process management for successful ERP implementation
[52]
M S Camara L Kermad and A El Mhamedi (2006) in the paper ldquoRisk Prediction in
ERP Projects Classification of Reengineered Business Processesrdquo maintain that
Companies have been implementing ERPs for almost ten years now and more the same
implementation problems continue to occur More and more ERP projectrsquos technological
challenges are accompanied by critical dimensions related to the management of the
transformational effects of these projects on the organization Indeed risk management in
this kind of project is not very structured and misses specific methods In this article they
propose a structured methodology for risk management particularly in the BPR (Business
Process Reengineering) sub-project of ERP implementation The final aim of our work is
to decease appreciably resistance to organizational change which poses the greatest
obstacle to business process reengineering efforts They propose to adapt OSR (Optimal
Set Reduction) a risk management method used in software development for the risk
38
management in ERP implementation They address specially the risk related to the
changes in enterprise processes in the ERP project To achieve this objective they
propose to define business process change metrics starting from business process
complexity metrics that exist in the literature [18]
ldquoExploration and Verification of Factors in the Front-end Stage of the ERP
Implementation Process Evidence from Case Study and Survey Researchrdquo Kun Shi and
Qiang Lu (2009) depict that ERP (Enterprise Resources Planning) is widely used to
improve business performance This paper explores how the factors associated with the
Front-end ERP Implementation Process (FEIP) affect the implementation outcome First
based on literature review a preliminary framework with 12 hypotheses is developed
Then Grounded Theory is applied for a case study to further extract and verify the factors
and sub-factors These factors are finally identified as strategic planning corporate
culture user characteristics organization-process-system maturity external expertise
engagementsupport and project preparation Furthermore the significance and
correlation of all the factors are detected by conducting survey research with SPSS as a
tool for analysis The study shows that the framework is valid and that among six three
factors have strong impact on the ERP implementation result whereas others are less
influential Implication is given and limitation is indicated at the end [63]
Huo Lingyu Liu Bingwu and Li Juntao (2009) in the paper ldquoAn ERP System Selection
Model Based on Fuzzy Grey TOPSIS for SMEsrdquo present a new fuzzy multi-criteria
decision making (FMCDM) approach which integrates the technique for order preference
by the similarity to ideal solution (TOPSIS) grey relation and fuzzy set theory for
enterprise resource planning (ERP) system evaluation and selection in the Small and
Medium-Sized Enterprises (SMEs) In this study the characteristic of the alternative with
respect to the criteria are represented in terms of a linguistic term set and the weight of
the criteria is described by triangular fuzzy numbers respectively According to the grey
theory and fuzzy set theory a closeness coefficient is defined to determine the ranking
order of all alternatives by calculating the grade of grey relation to the fuzzy positive-
ideal solution (FPIS) and fuzzy negative-ideal solution (FNIS) simultaneously Finally
an example is shown to highlight the procedure of the proposed method [48]
39
Gao Juntao Zhang Li Wang Zhiyao (2008) summarized their findings in ldquoDecision
Support for Handling Gaps between ERP functionalities and Organizational Needs A
Goal Reasoning based approachrdquo They found that in the process of selecting
commercial off-the-shelf (COTS) ERP systems it is inevitable to encounter gaps between
ERP software and organizational needs Gaps occur when COTS attributes do not exactly
match organizational needs and they make organizational users and software vendors in
the dilemma whether to adapt as-is business processes or to customize software
packages A decision support method for handling gaps is proposed in this paper Firstly
organizational goal-process models are built as the base for decision making Secondly
the idea of evidence theory is introduced into goal reasoning and a quantified algorithm is
proposed to evaluate the impacts of different business processes on high level goals
which are critical to make decision At last the risk is discussed to rank intervals which
specify the expected utilization of business processes [56]
Yvonne Dittrich and Sebastien Vaucouleur (2009) conducted a research on the topicrdquo
ERP Customization as Software Engineering Knowledge Sharing and Cooperationrdquo and
argue that Enterprise resource planning (ERP) systems must be configured and
customized to fit a specific company The authors discuss cooperation with regard to ERP
systems customization Enterprise resource planning (ERP) vendors provide multiple
configuration possibilities ranging from module selection to master data provision to
steer access rights for different users These configuration possibilities cover anticipated
variability If the customer requires adaptation beyond whatrsquos anticipated the source
code of the product must be adapted Customizations in this articlersquos context are source-
code-based adaptations of software products The size and complexity of customizations
range from simple report generation to developing independent add-ons that support
specific businessesmdashfor example solutions for flight carriers The size and lead time of
such projects can compare to a full-size software development project They present
empirical research on customization practices of ERP systems as an example of software
development based on customization of standard software They compared customization
with other development practices that are based on integrating existing code and results
underlined the need to rethink software engineering and programming methods and tools
[129]
40
In the paper study ldquoSignificance of Software Metrics in ERP Projectsrdquo S Parthasarathy
and N Anbazhagan (2006) narrate that ERP projects are a subclass of software projects
often accompanied by large-scale organizational changes One of the major reasons found
in the literature for the failure of ERP projects is the poor management of software
processes In this paper we propose a Software Metrics Plan (SNP) containing different
software metrics to manage software processes during ERP implementation Two
hypotheses have been formulated and tested using statistical techniques to validate the
SNP The statistical analysis of the collected data from an ERP project supports the two
hypotheses leading to the conclusion that the software metrics are momentous in ERP
projects [84]
Antony Marsh (2000) in the article ldquoThe implementation of Enterprise Resource Planning
systems in small and medium Manufacturing enterprises in south-east Queensland a case
study approachrdquo examines the implementation of ERP systems in smallmedium-sized
enterprises in South East Queensland Australia Nine case studies were conducted to
determine factors for success or failure in the implementations Key success factors
identified included cross-functional team approaches organizational experience of
similar scale IT or organizational change projects and lsquodeeprsquo understanding of the key
issues relating to ERP implementations Failure factors identified included top-down or
consultant driven implementations IT department driven implementations or
implementations where the EFV is seen as a quick technological fix to problems within
the operation of the firm rather than as a strategic investment [78]
Christian Doumlrner Sebastian Draxler Volkmar Pipek and Volker Wulf (2009) through
their study ldquoEnd Users at the Bazaar Designing Next-Generation Enterprise Resource
Planning Systemsrdquo propose that the bazaar metaphor has developed a lasting
popularity in software engineering especially as software architectures have evolved
from monoliths to service orientation Nevertheless the metaphor is limited because it
doesnt consider end users those who develop software for themselves Introducing such
an end user the prosumer to the bazaar not only suggests a changing division of work
in software development but also calls for different functionality and architectural
choices The authors evaluated changing software architectures from an end-user
development (EUD) perspective taking the case of enterprise resource planning (ERP)
41
systems as traditionally monolithically designed systems moving toward service
orientation On the basis of the studys findings which indicated problems with the
systems technical flexibility the authors developed a tool set for fostering EUD
activities Their new architecture for ERP systems enables end users to create their own
solutions [31]
Kenny KF Lee (2000) in ldquoThe Five Disciplines of ERP Software Implementationrdquo has
identified the critical factors in businesses which learn grow and succeed This paper
applies the central concepts of the book its five disciplines to the software business
specifically the management of software implementation Using the learning challenge
posed by the organization-wide implementation of Enterprise Resource Systems (Em) the
paper covers how EM software project leaders may manage themselves their teams
business vision and corporate culture and team members to create a survival machine
which can thrive in the current economic and technological climate [67]
Piet MA Ribbers amp Schoo (2000) in his paper ldquoDesigning Complex Software
Implementation Programsrdquo raises a central question that how one can design of Program
Management contributes to the success of complex software implementations
Incomplete goal specifications lack of communication and underestimation of project
complexity are signs of insufficient program and project management To avoid these
pitfalls he proposes ways that have worked well in recent complex multi-project ERP
implementations (programs) Answering the above question raises the problem of
adequately defining and measuring the level of complexity of an implementation
program A conceptual model was developed which identifies program management
factors that are proposed to have an impact on implementation success Fifteen cases
were studied to find support for the proposed framework [88]
ldquoDetecting Gaps between ERP Software and Organizational Needs A Semantic
Similarity Based Approachrdquo is very relevant and contemporary paper presented by Gao
Juntao and Zhang Li (2008) It depicts that Gap analysis is one of the most important
phases in implementation of enterprise resource planning (ERP) system In this paper an
approach is proposed to automatically detect gaps between software capacities and
organizational needs based on semantic similarity computation The approach takes two
business process models as input and one specifies software capacities and the other
42
describes organizational needs The output of it is a report of gaps As a matter of fact
the differences between application domain and software discipline make semantic
heterogeneity a key problem in gap detection therefore the technologies of semantic
similarity computing are employed to resolve ambiguity issues caused by the use of
synonyms or homonyms In particular the idea of similarity propagation is introduced to
pick out a mapping between corresponding activities and data and Hungarian algorithm
is employed to reduce its time complexity Then the similarity of whole models is
measured according to the minimal total cost of change operations Finally an
experiment is given to evaluate the method [36]
In the research publication ldquoERP System Adoption - Does the Size Matterrdquo Sanna
Laukkanen Sami Sarpola and Petri Hallikainen (2005) investigate the relationship of
enterprise size to the constraints and objectives of ERP systems adoption The survey
data based on the responses of 44 companies indicates that significant differences exist
between small medium-sized and large enterprises in ERP system adoption Specifically
the findings suggest that small companies experience more knowledge constraints than
their larger counterparts in ERP adoption Further while being the most prevalent
objective for ERP adoption in all the company groups business development through
ERP adoption is considered especially important by the medium-sized and large
enterprises Finally the findings of the study suggest that instead of considering small
and medium-sized enterprises as one homogenous group the differences between these
two groups of companies should be acknowledged in the future research [65]
In their paper ldquoModel Based on CSCWrdquo Wedian Liang XuFen Zhenkun Li Rong Xiao
JunFeng Hu (2005) summarise their finding They feel that Software testing is an
important component of the software engineering and an important link that the software
development quality is guaranteed Using the reasonable model for software testing can
reduce the expenses of testing in the developing activity in the course of testing thus cut
down the cost of software development In this paper we put forward a model for
software testing bused on CSCW technology that run through each stages of software
development cycle If can find the mistake in the software as soon as possible has
shorten the time taken for testing in the course of the development of software testing
43
effectively Finally we applied the model to the testing project which develops ERP
system and then receive the ideal result [118]
In their paper ldquoThe Research and Development of IMIS for Small and Medium-sized
Printing Enterpriserdquo Taolin Ma Xiaoming Chen Yansong Sun Xiurong Li (2009)
analyzed the fact that the basic management thought of inventory management
information system (IMIS) was established by analyzing the inventory management
theory of modern enterprise In this system which using the architecture of CS the stores
were classified by ABC management method the inventory control was completed by
setting up the safety stock and the largest stock the analysis and design of IMIS were
finished This IMIS was developed to meet the practical requirements of small and
medium-sized printing enterprise in our country It can not only be used as the important
measure of the informationized construction for small and medium sized printing
enterprise but also used as a subsystem of enterprise ERP system IMIS could improve
enterprise management level realize rapid transformation of enterprise and finally
enhance the competitiveness of enterprise in market economy [106]
Jiangao Deng and Yijie Bian (2008) in the research paper ldquoConstructing a Risk
Management Mechanism Model of ERP Projectrdquo mention that in the process of
information project implementation of manufacturing enterprises there are many risks to
set up a set of risk management mechanism is guaranteed for them to succeed in ERP
implementation Firstly based on the analysis of ERP project implementation of China
the paper introduced the risk management methodology systems and the relative model
which includes three main steps identifying risk evaluating risk and controlling risk
After that on the aspects of decision implementation and application stages of
manufacturing ERP project life cycle the paper discussed risks of each stage and put
forward a two-dimension matrix risk management strategy Then a mechanism model of
ERP project risk management is constructed which shows that information risk control
strategies of the last two stages not only depend on resources of these stages but also
have a diverse relationship with the last stage Finally according to the successful
implementation of an enterprisersquos ERP project the paper carried out an effective case
application analysis of risk management mechanism model The lack of improvement in
usersrsquo ERP skill levels and the shortage in documenting the rationale for business rules
44
and configuration decisions were among the critical issues of the post-implementation
stage Indeed all of their respondents stressed the importance of refreshing the usersrsquo
knowledge about the system [28]
Saumyendu Ghosh (2003) in ldquoGlobal Implementation of ERP Software ndash Critical Success
Factors on Upgrading Technical Infrastructurerdquo discusses that implementing an
Enterprise Resource planning (ERP) software in a global environment executive
sponsors face two key challenges While business processes are to be re-engineered to
align with the ERP software best practices technical architecture and infrastructure needs
to be in place globally as per specifications of the packaged software In the legacy
environment different countries or different business units use different systems based
on local standards supported by local resources In the new ERP world globally all the
countries must conform to same technical infrastructure Technical managers face
multiple critical issues implementing a global solution Most of the ERP software is
developed in technically advanced countries standards are often too high for under
developed or developing countries In an effort to bring the global organization to a
common platform different countries need different levels of upgrades In this paper the
authors review key technical issues faced is a global upgrade process to support a global
ERP implementation and how to resolve those We conclude although technical
infrastructure and business process reengineering both are equally important and each
implementation is unique but following some simple steps it is easy to prioritize each
ones during different phases of the project Also time lines of two sub-projects must
converge after initial phase and must follow a common plan for the project to be
successful Multiple scenarios are described to facilitate the process He concludes
although technical infrastructure and business process reengineering both are equally
important and each implementation is unique but following some simple steps it is easy
to prioritize each ones during different phases of the project Also time lines of two
subprojects must converge after initial phase and must follow a common plan for the
project to be successful Multiple scenarios are described to facilitate the process [38]
Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008) ldquoDevelopment and
Implementation of ERPCRM System Based on Open Source Software to Small and
Medium-sized Enterprise in Chinardquo analysed the fact that E-commerce and the
45
development of modern enterprise management raise a number of challenges in the
process of informatization of small and medium-sized enterprises (SME) in china To
address this they present an approach in which the informatization is enhanced by using
Open Source Software with customized policies We analyses the main
informationization obstacles of SME in china bring forward that the lack of bankroll
talents cost and management etc are the key problems to informationization of SME
Furthermore they have developed a textile foreign trade ERP CRM system based on
Open Source Software for the local textile distributor of china integrating financial
distribution sales and service processes given the implement method of overall planning
step-by-step implementation key breakthrough and efficiency guiding In the end we
compare the typical Open Source Software and traditional commercial software point
out the advantages of informatization based Open Source Software to SME in china and
the development trend of Open Source Software for enterprise application [132]
ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information Systems ndash a
Multi-disciplinary Method for ERP System Requirements Engineeringrdquo by Inka Vilpola
Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that ERP systems are in
most cases off-the-shelf software packages and large by their size and complex by their
structure Small and medium-sized enterprises (SMEs) require flexibility of the ERP
system because of their individual operational processes Therefore it is crucial to select
and implement an ERP system that fits the requirements of the intended target processes
To support the requirements engineering of ERP systems we have developed Customer-
Centered ERP Implementation (C-CEI) method The method introduces a multi-
disciplinary approach to the ERP project and provides in-depth understanding of the
companylsquos processes and context of use Using C-CEI method decreases the risk of
SMEs to select an inappropriate system and improves the system acceptance by the
customer companyrsquos employees In this paper we present the method and illustrate it by
three SME case studies [114]
Saumyendu Ghosh (2000) in ldquoChallenges on a global implementation of ERP softwarerdquo
discusses that some of the unique challenges in ERP implementation are satisfying
multiple countries statutory requirements and reporting to the corporate head quarters
from one installation of the software conflicting interests between different business
46
entities lack of experienced implementators in all the countries and eminent users of
multinational advantages He discusses different aspects of these challenges in detail and
point out that ERP software can provide only one solution for a particular business
process unless workarounds are available from experienced implementation Different
counties adopt different reporting and accounting practices and therefore an ERP
implementation cannot solve all problems that global corporation may have multiple
countries in the scope of the project due to absence of standard global processes across
the organization He concludes that the most important critical success factor of these
international implementations are how quickly these corporations can reengineer existing
business process to adopt best practices of using an ERP system [38]
Dong Cheng Feiyan Deng Hongtao Li (2006) ldquoCritical Factors for Successful
Implementation of ERP in Chinardquo in their study propound a theoretical model for
successful implementation of Enterprise Resource Planning (ERP) under Chinarsquos
environment and the authors analyze the model empirically through structural equation
modeling The authors find that strategically IT planning abilities leadershiprsquos support
and the skills of IT section business processing abilities learning abilities and change
management abilities has a significant positive impact on successful ERP implementation
[22]
Parijat Upadhyay (2008) in his research studies ldquoAn explorative study to identify the
Critical Success Factors for ERP Implementation in Indian small and medium scale
enterprisesrdquo explores the existing literature on ERP implementation issues in context to
small and medium scale enterprises and attempts a compilation of the factors that assume
great significance while implementing ERP in SMErsquos Given the nature and magnitude of
the problems in encountered in implementing an ERP project this study would attempt to
identify the critical success factors(CSFrsquos) for a successful implementation of an ERP
project since it calls for substantial effort on the part of all the stake holders involved to
make the implementation a success [111]
ldquoThe ERP Implementation of SME in Chinardquo Yuanqiang Xia Peter Lok and Song Yang
(2009) presented the fact that ERP implementing for small and middle size enterprise
(SME) is different from the large one Based on the analysis on the character of ERP
marketing and SMEs of China 6 critical success factors are recommended The research
47
suggests that the top management support is most important to ERP implement in SME
of China in which paternalism prevails Database of management and capital are main
obstacles ERP 1 or ERP 2 fits to demand of SME high power project team has
tremendous significance in the situation of absence of IT engineer for SME education
and training is helpful to successfully ERP implementing The results service as better
understanding the ERP implementation of SME in China and gaining the good
performance of ERP implementation [126]
Yan Xu and Chung-Hsing Yeh (2009) in the article ldquoStrategic Management of
Performance Measures for an ERP Implementation Project Teamrdquo present a new
evaluation model for managing performance measures of an enterprise resource planning
(ERP) implementation project team in an organization With the performance measures
classified into four strategic perspectives of the balanced scorecard the evaluation model
enables the goal alignment between the project team and the organization A new
algorithm using the concept of multi-attribute decision making is developed to obtain the
relative importance value for each performance measure for its contribution to the
strategic goals of the organization The higher the importance values of a performance
measure the more important the role it plays in determining the responsibilities of the
corresponding project team player Understanding the importance of the key performance
measures will help an organization well-prepare to launch a project and have the project
being organized in advance A case of an ERP implementation project in an integrated
manufacturing corporation is presented to demonstrate the applicability of the evaluation
model and its effective management of the performance measures [124]
Zhang Yanhong (2009) in his research paper ldquoERP Implementation Process Analysis
Based on the Key Success Factorsrdquo describes that Enterprise Resource Planning (ERP) is
an amalgamation of a companys information systems designed to bind more closely a
variety of company functions including human resources inventories and financials
while simultaneously linking the company to customers and vendors This thesis is based
on the theory of product life cycle and the process of ERP is divided into four phase
planning implementation stabilization and improvement Critical success factors in each
phase are identified by paper research case study and investigation An ERP
implementation process model based on the critical Success factors (CSFs) is proposed in
48
the paper The thesis analyzes the global planning stages and business process rebuilding
in the process of QIHE pharmaceuticals ERP Improvement on management and
financing before and after ERP implementation are contrasted and we come to the
following conclusions (1) The CSFs in the planning phase is comprehensive
investigation and evaluation (2) The CSFs in the implementation phase is effective
project management team (3) The CSFs in the stabilization phase is appropriate
information management system (4) The CSFs in the improvement phase is change on
demand and continue to innovate (5) The CSFs throughout the product life cycle is
business process rebuilding [131]
Van Stijn E and Wensley A (2001) ldquoOrganizational memory and the completeness of
process modeling in ERP systems some concerns methods and directions for future
researchrdquo mentioned that Enterprise resource planning (ERP) systems not only have a
broad functional scope promising to support many different business processes they also
embed many different aspects of the companyrsquos organizational memory Disparities can
exist between those memory contents in the ERP system and related contents in other
memory media such as individualsrsquo memories and the organizational structure and
culture It is our contention that in general these disparities or memory mismatches as
we will refer to them lead to under-performance of ERP systems In this paper they focus
on potential memory mismatches that may arise with respect to the embedding of process
knowledge within ERP packages Packages such as SAP provide a varied and rich
environment for process modeling However they suspect that there are still many
instances where process knowledge is either lost or represented in different ways in
different parts of the organization The overall thrust of the paper is to identify a variety
of concerns intriguing questions and avenues for future research [112]
Eric Kimberling (2008) in his article ldquo The Role of Lean Six Sigma in ERPrdquo insisted
that there are a number of things to consider when considering a new ERP system like six
sigma lean manufacturing or other business transformation projects that has the capacity
to measure reducing waste managing change well continuous improvement etc [133]
William H Gaw (2010) ldquoEight Basics of Lean Six Sigma for Manufacturing Firmsrdquo In
the efforts to draw closer to customers many manufacturers have lost focus on what
should be a companyrsquos primary success factor ndash profitable growth In todayrsquos competitive
49
manufacturing environment it takes more than quick fixes outsourcing and downsizing
for companies to consistently achieve their growth and profit objectives While these
options may yield temporary financial relief they will not lead the way to long-term
growth and profitability For companies to grow and consistently exceed bottom line
expectations they need to get lean And to get lean they should master eight basics of
Lean Six Sigma in the form of information integrity performance measurement
sequential production point-of-use logistic cycle time management production linearity
and resource planning and customer satisfaction [134]
Brehm L and Markus M L (2000) in The Divided Software Life Cycle of ERP
Packages mentioned that traditional information system life cycle (SLC) focuses on the
activities performed by company developing implementing and maintaining software for
its own internal use Enterprise resource planning (ERP) software packages change the
SLC in several important ways This paper presents an extension of the SLC model for
ERP packages The lsquodivided software life cyclersquo (DSLC) model features an equal
emphasis on the activities performed by the ERP adopting company and the ERP vendor
[15]
Alavi M and Carlson P (1992) A Review of MIS research and disciplinary
development The perceived status of journals in which MIS research is published is an
important issue to academics The number of IS-related journals has increased through
the years yet it is not obvious which are the ldquoleadingrdquo journals or what criteria should be
used to determine this This article addresses these issues by (1) evaluating and
analyzing previous studies in which MIS related journals have been ranked (2)
determining top-ranked journals and placing them into two levels or tiers based on
previous studies and (3) establishing a profile through a systematic analysis of the nine
journals in the first tier This study identified 17 highly ranked journals for publication
Nine were placed in the first tier and eight in the second tier In addition to IS-specific
journals publications included management science computer science and business-
oriented journals The individual strategies for improving software productivity are
identified Issues related to software costs and controlling them are examined and
discussed It is pointed out that a good framework of techniques exists for controlling
software budgets schedules and work completed but that a great deal of further progress
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 8
19
In ldquoEnterprise Resource Planning (ERP) ndash Breakthrough or Buzzwordrdquo A Fitzgerald
(1992) suggests that to understand the structure of the ERP manufacturing solutions one
must examine both the technology underlying these systems together with the
environments and functionality required Finally to make the lsquobusiness casersquo for such
systems we must focus on the benefits that can be achieved by using ERP systems [33]
In the proceeding of 34th
Hawaii International conference on System sciences an
important article on CSFs in ERP ldquoThe Impact of Critical Success Factors across the
Stages of Enterprise Resource Planning Implementationsrdquo by Toni M Somers amp Klara
Nelson (2001) was published This paper describes the impact of Critical Success Factors
(CSFs) across the stages of Enterprise Resource Planning (ERP) implementations using
the responses from 86 organizations that completed or are in the process of completing an
ERP implementation This research not only identified which CSFs are most critical in
ERP implementations but also determined which factors are temporal ie significant in
the implementation process for a particular period in time That information can now be
used to identify anticipate and allocate time and resources across those factors that need
attending to for effective project monitoring It also provides an understanding of the
factors and their importance throughout the various phases of implementation which in
turn can serve as a useful guide for firms in the process of implementing an ERP system
[103]
In the proceeding of 34th
Hawaii International conference on System sciences IEEE 2001
ldquoTailoring ERP systems A spectrum of choices and their implicationsrdquo Lars Brehm amp
Armin Heinzl M Lynne Markus (2001) depict that the IS literature distinguishes between
custom-built and off-the-shelf software Enterprise resource planning (ERP) packages are
often viewed as off-the-shelf software because adopters implement them by setting
parameters (called configuration) rather than by traditional programming Making
changes to ERP software code (called modification) is usually strongly discouraged by
vendors and implementation consultants Nevertheless field research has shown that
many companies have had to modify ERP software in various ways to meet essential
business needs In this paper they describe a portfolio of tailoring options between
configuration and modification with important implications for implementation risk and
the difficulty of ERP system upgrades but with companyrsquos advantages [16]
20
Babak Akhgar Jawed Siddiqi and Samir Al-Khayatt (2002) summarized their findings in
the article ldquoStrategic exploitation of ERP for e-businessrdquo for the Proceedings of the
International Conference on Information technology Coding and Computing (ITCCrsquo02)
This paper based on research from an ongoing IS investigation project at a large
multinational company examines the relationship between ERP amp E-business The paper
discusses different scenarios of ERP implementation status that organizations may find
themselves It examines the components of e-business success namely visibility of
information processes and technology that will be either enabled or restricted by ERP
What transpires from this research is that for many start-ups e-business becomes
synonymous with business in general Ultimately they conclude that e-business should
form part of the corporate strategy and that IS or IT strategy should form the basis for
determining ERP implementation structures thereby ensuring e-business requirements
become the platform for ERP [2]
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther G Chattopadhyay (2004) The paper
presents research on ERP system characteristics particularly relevant for Small to
Medium Enterprises (SME) Authors investigated the duration of the project phases to
establish the human resource requirements through the selection implementation and
support of the ERP project Common factors that are crucial for an SME in the
manufacturing sector embarking on an ERP system are identified in this paper for system
selection and implementation User survey was carried out for a target group of SME
companies around Brisbane Australia The survey captured both qualitative and
quantitative data relating to the ERP system in place at a target group of electrical and
electronic equipment manufacturing companies located in South East Queensland
Australia Quantitative analysis was carried out on the cost of the ERP selection and
implementation project both in terms of capital outlay and human resources [87]
Reported implementations recognized the benefits of aligning business processes with a
target ERP system in the period prior to the go-live and authors summarize following
points
ERP system as a business tool for growth of SME
21
Critical selection factors unique and realized benefits different for each business
SME having limited resources (money people time) with which to evaluate and
implement ERP
Ongoing costs
Overall success
In the paper study ldquoERP Training Strategies Conceptual Training and the Formation of
Accurate Mental Modelsrdquo Tony Coulson Conrad Shayo CE Tapie Rohm Lorne
Olfman (2003) examined a major determinant of successful ERP implementation end-
user training The study finds that a workflow conceptual advanced organizer strategy
(TCT group) improves end-userrsquos mental model accuracy over time as demonstrated by
the subjectslsquoability to recall ERP specific concepts Results indicate that a conceptual
advance organizer is an important component of ERP training and should be incorporated
into an organizationlsquos training strategy In general the study supported the framework
and found that by adding a tool conceptual knowledge-level to the training the end-users
developed more accurate mental models By using the knowledge-level framework and
incorporating tool conceptual knowledge into an organizationlsquos training design
organizations may see an improvement in overall ERP implementation results For
example because ERP training is very expensive those within an organization that attend
ERP training are often asked to train others in the organization when they return This
study shows that adding a tool conceptual knowledge-level to their training improves
their ability to recall and re-articulate their understanding of the system By building the
knowledge-levels that enable more effective understanding and communication of
concepts learned could be an invaluable asset to any companylsquos training and
implementation strategy [24]
ldquoEnterprise Resource Planning Challenges for Small and midsize Business (SMBs)rdquo
Analyst Katherine Jones (2004) of Aberdeen suggests that small and midsize businesses
are primarily driven by operating cost pressures perceived as the biggest challenge and
their key challenges are
1 Insufficient funding for corporate strategies and initiatives
2 Lack of clearly defined corporate vision and goals
3 Ineffective communication of corporate strategies and initiatives
22
4 Metrics that do not sufficiently provide incentives employees to supportachieve
corporate goals
5 Inability to accurately determine and plan for customer demand
As the immense variability in how SMB companies conduct business still predominates
the SMBs see technology as the enablers of their strategies Specifically cited are the
increased availability of advanced analytics decision support and reporting tools as well
as the availability of process-specific business applications [55]
Christina Soh Sia Siew Kien and Joanne Tay-Yap (2004) through their study on the
subject ldquoCultural Fits amp Misfits Is ERP a universal Solutionrdquo Present early findings
from a larger ongoing study The typology of misfits and examples are drawn from the
review of implementation documents and supplemented by interviews with key project
team members from one hospital [102]
In their White Paper ldquoERP Selection ndash Right Tracking Enterprise Change ITSg-GCPrdquo at
TCS Dr Joginder Singh Lamba amp Swapnil Kitcha (2007) analyzed the fact that
business changes in the form of portfolio expansion structure decentralization and supply
chain integration drive new investments in ERP Besides the need for more functional
areas within the IT landscape (BI CRM PLM and Product Information Management)
demands new interfaces with ERP backbone Heterogeneous compatibility and varied
maturity across modules elicit interest in best of breed solutions in ERP [64]
In ldquoFuture of ERP systems and Microsoft Dynamics Learn about XML and Web
servicesrdquo McKie (2008) discusses what sort of requirements XML and web services put
on business applications He further explains ERP systems need to be able to create
XML schemas (data specifications) and they need to be able to import and export data in
XML documents The more data an ERP user needs to share with business partners the
more important is to have these capabilities In addition to XML McKie identifies a
second type of Web service that offers functionality rather than data is expected to
emerge in the form of business partner integration analytics and alerts [79]
David Caruso (2005) Senior Vice President Industry Research AMR in his article
ldquoProcess Productivity and Profit The SMB Executiversquos Framework for ERP
Investmentrdquo narrated that SMBs which are not aggressively developing an effective ERP
strategy will be at some disadvantage to their peers by 2006 Forward-thinking executives
23
will consider strategic business capabilities as the drivers for enterprise resource planning
(ERP) investment justification In a 2005 study that AMR Research conducted with over
550 companies regarding their ERP investment plans and found that only 27 of small
companies (fewer than 500 employees) are currently using ERP This is in sharp contrast
to the 57 of large companies (500 to 2499 employees) and 70 of enterprise-sized
companies (2500-plus employees) that have operational ERP systems Given this data it
is not surprising that almost 50 of the respondents interviewed will be making
substantial changes to their existing ERP systems over the next 12 to 18 months The
challenge for executives charged with the decision is establishing a powerful context for
making the ERP investment [20] When considering the ERP investment decision from
the perspective of the executive suite there are four overarching drivers that frame what
executives need to consider
1 Productivitymdashgetting the most from your valuable employee assets
2 Connectivitymdashworking collaboratively with your key customers and suppliers
3 Business insightmdashImproving the speed and quality of decision making
4 Total cost of ownershipmdashreducing the cost of owning and operating IT systems
Yong Jean John amp Ki-Henry Yim (2001) in an article ldquoA study on an Environment of
ERP Introductionrdquo includes the role of ERP perception of ERP value ERP plan
direction and also argues various checkpoints as a preview of ERP introduction In
conclusion they list checkpoints in sequence based on the mean values that provides
indications of the relative importance As a result the most important checkpoints were
Performance of Introduction Main Reference Sites Availability of Current Resources
Easiness of Introduction Operation System Past Records of Supply Market Share and
Vendor Size The results shown in this paper has shown strong implications for ERP
vendors Vendor size and market share received the least attention amongs all the
checkpoints described in the study [125]
One step forward IQMS Executive White Paper (2007) ldquoHow Successful ERP Selections
are Made ldquo this paper is not just about want and donrsquot want from the various people in
the organization It suggests that it should be a long lasting purchase that provides the
users the feeling of a partnership As the user is not just buying software they are also
buying into a vendor and their company culture The combination of software capability
24
and vendor credibility should be a major purchasing factor There is more to a lasting
ERP purchase than that There are several platform thoughts on technology how many
vendors are included the demonstration the always useful buzz words with all the hype
on service oriented architecture (SOA) best of breed lean manufacturing and all the
other phrases floating in the industry today implementation time customer referrals
customer retention look at your company objectively etc [49]
Robert C Beatty amp Craig D Williams (2006) in ldquoBest Practices for Successfully
Implementing an ERP Upgraderdquo maintain that an ERP upgrade is deceptively complex
and can be daunting especially for organizations ignorant of the massive effort required
to do it correctly One study of mid-size to large companies conducted by AMR Research
found that 67 of these companies are implementing some form of ERP while another
21 are evaluating potential ERP systems solutions As a growing number of companies
adopt ERP systems ERP systems implementation and upgrades are identified as one of
the top five IT priorities among global CIOs according to independent surveys conducted
by Morgan Stanley and Deloitte amp Touche IDG Research Services Group In
conclusion this article provides organizations with a list of the eight most common
recommendations suggested by organizations that have already completed at least one
upgrade to their initial ERP implementation [11] These are
Finding 1 Build your business case on new functionality
Finding 2 Treat the upgrade like a new project
Finding 3 Keep the team together
Finding 4 This is a business project not an IT project
Finding 5 Watch for hidden infrastructure costs
Finding 6 Un-customize customizations
Finding 7 Test like your organizationrsquos future success depends on it
Robert Davison (2002) raises a valid point through his article ldquoCultural Complications of
ERPrdquo discussed cultural misfits from a Singaporean perspective This implies that a one-
size-fits all or one-business-model- fits-all approach is unlikely to be successful As much
of ERP literature originates from and describes application contexts in North America
and to a lesser extent Western Europe where most ERP developers are located and
implementations have occurred Developers and consultants need to adapt their products
25
and services for different cultural markets Awareness of cultural differences and prefer-
ences will certainly improve the assessment of ERP suitability and any subsequent
implementation [27]
A group of researchers Siew Kien Sia May Tang Christina Soh Wai Fong Boh (2002)
from Information Management Research Center Nanyang Business School in their
research paper ldquoEnterprise Resource Planning (ERP) Systems as a Technology of Power
Empowerment or Panoptic Controlrdquo explores ERP as an ambivalent technology of
power According to them on the one hand it may tighten management control by
bringing a new level of panoptic visibility to organizational activities on the other hand
the embedded business model within the ERP may drive empowerment of employees and
greater control relaxation through the configuration of new process design This research
seeks to understand how the different forces play out in the context of ERP
implementation and to explore the implications for traditional power distribution in
organizations It adopted a mixed qualitative-quantitative methodology in an intensive
case study of a restructured hospital in Singapore A survey of 260 users was
administered supplemented by approximately 27 hours of individual interviews with 23
people Results reveal that although ERP can facilitate both empowerment and panoptic
control management has consciously resisted empowerment by working to reinstitute the
power lost through the ERP implementation On the other hand the new panoptic
visibility though partially unintended appears to have evolved naturally and was readily
learned and applied in the organization This study is significant in exposing the
likelihood of ERP implementation as a technology that perpetuates management power
At least in the context of the hospital studied it is yet another means of enlarging the
management authority for ldquototal controlrdquo Current articulations of ERP by practitio-
nersmanagement as empowering thus appear to be more theoretical than real This is
consistent with the perspective of critical theorists (eg Sewell amp Wilkinson 1992
Weber 1947 Tannenbaum 1968) that organizational life will become increasingly
rationalized and more controlled Thus the findings support the critical perspective in
exposing the likelihood of ERP implementation to perpetuate management power Being
a single case study the external generalization of the above analysis is limited Future
research should be sensitive to the formative context (eg the nature of the pre-existing
26
structure the Asian cultural context) and the distribution of authority among
organizational actors (eg presence of management intention) in an organization The
dynamics of panoptic control and empowerment during ERP implementation may be
different in organizational transformation contexts or in organizations with more fluid or
organic pre-existing structures It may also be interesting to follow the analysis of
panoptical and empowerment over an extended period to get a better understanding of
their continuously evolving dynamics [98]
Suprateek Sarker and Allen S Lee (2003) in the paper ldquoUsing a Case study to test the
role of three key social enablers in ERP implementationrdquo indicate that three key social
enablersmdashstrong and committed leadership open and honest communication and a
balanced and empowered implementation teammdashare necessary conditionsprecursors for
successful ERP implementation In a longitudinal positivist case study we find that
while all three enablers may contribute to ERP implementation success only strong and
committed leadership can be empirically established as a necessary condition This
presents a challenge to future ERP researchers for resolving apparent contradictions
between the existing literature and the results of our analysis and for investigating the
nature of interactions among the leadership communication and team characteristics
[93]
Srinivas Mantha (2007) in the article ldquoERPndashBusiness Processes with IP
Communicationsrdquo explained the fact that the key to new competitive capability is
envisioning the enterprise in terms of business wide relationships to improve user
experience across the network exploit knowledge and enhance and accelerate core
processes IP Communications is the catalyst for this capability It enhances the value of
the user experience exploits knowledge value and increases the value of business
processes [76]
Linda Askenaumls amp Alf Westelius (2000) from Linkoumlping University Sweden explore
a new vista of ERP through their literature ldquoFive Roles of an Information System A
Social Constructionist Approach to Analyzing the use of ERP Systemsrdquo This paper
presents a novel way of thinking about how information systems are used in
organizations Traditionally computerized information systems are viewed as objects In
contrast by viewing the information system as an actor our understanding of the
27
structure process increases The user being influenced by the ERP (Enterprise Resource
Planning) system and giving it an actor role thereby also confers agency on the ERP
system Through its very use it influences actions and thus the structure as well Based
on a case study of ERP use in an ABB company for over a decade five different roles
played by the ERP system were identified The ERP system acted as Bureaucrat
Manipulator Administrator and Consultant or was dismissed (Dismissed) in the sense
that intended users chose to avoid using them In conclusion the purpose of this approach
is not to ldquoanimaterdquo the information system to give it life or a mind of its own but rather
to make explicit the socially constructed roles conferred on the information system by
users and others who are affected by it On this basis it is possible to suggest how the
roles can help us opening up the new areas of exploration concerning the fruitful use of
information technology [70]
Jinyoul Lee Keng Siau and Soongoo (2003) conducted a study on the topic ldquoEnterprise
Integration with ERP and EAIrdquo They state that to survive and thrive in these hypercom-
petitive markets it is essential for a company to understand rapidly changing business
circumstances To rapidly respond to a changing environment an enterprise must
integrate business functions into a single system efficiently utilizing information
technology and share data with third-party vendors and customers While ERP forces the
adoption of standard business processes EAI enables enterprise integration over business
object levels ERP thereby supports a centralized business strategy while EAI naturally
accommodates decentralized business processes Lastly they observe the fact True
enterprise integration means both technical and behavioral integration It is not simply
integrating different systems applications or business processes dispersed across an
enterprise It is integrating structural changes different behaviors and various
information systems in an enterprise Enterprise integration is costly and time-
consuming thus management should be cautious in the design of the project
Organizations should not blindly rush into new technologies Top management should
first strive to understand their business and needs for enterprise integration and then
select a methodology of enterprise integration [68]
Wilhelm Scheer and Frank Habermann (2000) in ldquoMaking ERP a Successrdquo have used
business process models at an operational level of e-business to achieve positive results
28
They have talked of different scenarios in e-business As in Business-to-Business
applications such as Supply Chain Management the user has to connect the ERP systems
of all business partners This means he has to fight not only with the thousands of
parameters of a single ERP system but with twice as much (or even more) Another likely
scenario is that the business partners involved in an inter-organizational supply chain are
using ERP systems of different vendors In this case a business process model can be
firstly used to define the conceptual value chain Secondly the conceptual model that is
independent from a certain software vendor can be linked to the repositories of the
different ERP systems in order to customize an integrated software solution These
examples demonstrate that business process models play a major role for the success of e-
business Some ERP vendors like SAP have understood this development and are already
implementing their first model-based e-business applications [94]
Ash CG (2001) in An e-Commerce Model for Extending ERP Systems onto the
Internet An Australian Perspective stated that an established research framework of e-
Business change is used to identify the factors for success of this e-business project
within an ERP environment The results confirm that a successful project was found to
have facilitators in all components of the business framework including the change
environment and project management Further there is the implication that the least
successful e-business projects will have inhibitors in both dimensions especially in the
area of cultural readiness and change management In this case study conflict arose
between local project management initiatives versus a centralized autocratic global ERP
deployment This highlights the need to encourage the balancing of conflicting
organizational knowledge when contemplating the adoption of e-business solutions [7]
Huigang Liang Yajiong Xue William R Boulton Terry Anthony Byrd (2004) ldquoWhy
Western Vendors donrsquot dominate Chinarsquos ERP Marketrdquo Examined cases of failed ERP
system implementation in China and explaining the unique circumstances These foreign
ERP implementation failures emphasize the need to localize strategies even for the
global ERP leaders The general manager of a foreign ERP vendor explained ldquoOne
should understand nationrsquos history and its culture before one starts doing business with
foreign companiesrdquo The cases of failed implementation suggest global ERP vendors
require more than superior technology and experience Their ERP strategies must also
29
address the cultural differences affecting ERP implementations Strategies need to
overcome problems relating to language reporting formats and content cost control
capabilities frequent business process redesigns effective customer support and capable
consulting partners [69]
In the research findings ldquoAn Agency Theory Model of ERP Implementationrdquo Vedabrata
Basu Albert L Lederer (2004) develop a model of testable propositions for applying
agency theory to study the relationship between implementation consultants and client
organizations deploying the ERP systems and to consequently evaluate how the
relationship affects the implementation success Therefore management needs to know
the factors that drive successful ERP implementation a product of the continuous
interaction between the implementation consultants and client firms Agency theory has
been successfully used by different researchers to explain relationships between two
parties seeking a common outcome This paper develops a conceptual model with the
variables and relationships that may play a critical role in explaining the sources of that
frustration It offers a foundation for research that can extend the applicability of agency
theory can help clients and consultants manage their relationships during the
implementation process and thus help them enhance the probability of ERP systems
implementation success It may also be useful for managing other outsourced IS projects
that have implementation settings similar to ERP [10]
Christian Vogt (2002) ldquoIntractable ERP A Comprehensive Analysis of Failed Enterprise-
Resource ndash Planning Projectsrdquo makes an analysis of possible causes that led to the
disasters for ERP implementation failures and suggests software engineering processes
that help avoiding such outcomes The Model Based Architecting and Software
Engineering (MBASE) guidelines developed by Prof Barry Boehm and Daniel Port at
the Center for Software Engineering (CSE) at USC provide a base for these elaborations
for a long time SW Engineering experts have praised commercial-off-the-shelf (COTS)
packages as the panacea to complex software development Far from it the elaboration
in this survey shows that the deployment of COTS packages may be extremely intrinsic
one does not know whether some COTS software adheres to its interface specifications or
how deficient it is or how well its performance scales up as workload demand grows
The upshot is that COTS software will always be an alien element in the software to be
30
developed and it should be considered that way Dye-in-thendashwool COTS package ERP
systems exhibit plenty of dangers Only if appropriate risk management and enough time
for stepwise employment is provided for ERP system can be tamed [115]
In the research findings ldquoImplementing Best Practices in ERP for Small amp Medium
Enterprisesrdquo Rashmi Jha A K Saini and M N Hoda (2008) provides an interesting
insight into taking ERP implementation as a project and develops problem driven
approach to examine its complex phenomena The implementation process will be
divided into several components which will reflect the nature of ERP projects and makes
them distinctive from other systems design methods This paper also addresses critical
issues relating to developing entrepreneurship for sustainable development of small and
medium size enterprises(SMEs) for its future extensions and added benefits It may also
be useful for managing other outsourced Information System (IS) projects that have
implementation settings similar to ERP [53]
Saumyendu and Maya Daneva (2003) in ldquoLessons Learnt from Five Years of Experience
in ERP Requirements Engineeringrdquo summarizes one companyrsquos five years of experience
in making a generic ERP RE model a live process It rests on previously published ERP
RE process assessment results and reports on what we learnt with particular focus on
typical issues organizations face when adopting a standard model and solutions that can
be used to avoid those issues in the future Each of our lessons is described together with
a RE practice technical foundation for the practice and engineering techniques for the RE
practitioner The lessons were used to refine our Corporate Documentation Model a
process-focused and template-based ERP-architecture framework [40]
In ldquoResearch on Agent-Based Architecture of ERP For Small amp Medium-Size
Enterpriserdquo Rui-Xue Fu Zhan-Hong Xin and Can Chen (2007) suggests that with the
rapid development of information technology and the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward To address these problems a MAERP system architecture has been developed
in which the agents are classified into four types F-Agent for realizing an operation
application C-Agent for coordinating with other agents I-Agent for a communication
31
tool between the user and the MAERP system and T-Agent for performing specific tasks
and data collecting [35]
Xavier Franch and Juan Pablo Carvallo (2003) in the research paper Using Quality
Models in Software Package Selection found that the absence of structured descriptions
of quality features and user quality requirements makes selecting the right software
package difficult The authors propose a methodology for describing the quality features
of domain-specific software packages uniformly and comprehensively using ISOIEC
9126-1 quality standards as a framework [34]
In the paper study ldquoRevisiting ERP Systems Benefit Realizationrdquo Paul Hawking and
Andrew Stein (2004) maintains that many companies initially implemented their ERP
systems to solve Y2K and disparate systems issues These same companies are now
looking at a how to strategically leverages their investment in these systems through the
implementation ldquosecond waverdquo functionality This paper identifies the expected and
actual benefits of ldquosecond waverdquo implementations In addition it identifies barriers which
limit the benefit realization The findings reinforce that ERP implementations are people
focused projects which rely heavily on change management for success [45]
Hamid Nach and Albert Lejeune (2008) ldquoImplementing ERP in SMEs Towards an
Ontology Supporting Managerial Decisionsrdquo state that the purpose of this research
project is to consolidate and formalize as ontology on the basis of an extensive literature
review the key processes and skills required for successful implementation of ERP in an
SME Using the Proteacutegeacute software program the research identified and formalized 395
terms each of which has its own definition Exploitation of this ontology could take
multiple and varied forms including creation of a learning system an on-line cooperation
platform or a project management process mapping tool contributing to successful use of
ERP in SMEs [81]
While Gul Tekin Temur and Sitki Gozlu (2008) ldquoDetermination of Performance Criteria
for ERP Software Technologyrdquo mention that the main goal is to determine the
performance criteria for ERP software technology with respect to their sources Today
the companies are in interaction with many internal and external partners and have to face
many situations in various environments Especially many small and medium sized firms
utilize ERP software technology to plan their business interactions in the chain In this
32
study firstly a literature search is accomplished Then in order to reveal the performance
criteria a large-scale automotive company has been selected to conduct interviews with
managers Also the meeting reports of a few small and medium-sized companies have
been analyzed As a result of the analysis on findings the common views of the firms
about performance criteria are classified into four groups according to their sources such
as people technical managerial and economical The sub factors of these main criteria
are also taken into account in order to point out the origins of the criteria The results of
the study will provide insight to researchers and as well as to professionals in the practice
[108]
Maya Daneva (2004) in ERP Requirements Engineering Practice Lessons Learned
mentioned the fact that organizations implementing Enterprise Resource Planning (ERP)
systems have been increasingly adopting generic off-the-shelf requirements engineering
(RE) process models Yet little information exists about the challenges of making a
generic RE model a life process This article discusses why bringing an off-the-shelf
process in is not a sufficient foundation The author shares experiences acquired over the
past five years of eliciting modeling and validating requirements in ERP projects and
highlights typical issues and their solutions Among the keys to success are planning RE
model use in the clients context and installing processes to support key RE activities [25]
While the article ldquoRescuing Troubled Software Projects by Team Transformation A
Case Study with an ERP Projectrdquo by Kim Man Lui and Keith C C Chan (2008)
differentiates various reasons of ERP project failures It further states that many software
projects fail whether failure is measured in terms of budget schedule or some other
requirement The causes of such failures are many but are not always easily recognized
This is not the least due to the human dimension of corporate activities as spurious or
misdiagnosed issues in Enterprise Resource Planning (ERP) projects can take on a life of
their own and become a magnet for company politics This paper reports an industrial
case in which the senior management attempted to deal with a troubled ERP
implementation (SAP R3) in an international fast moving consumer goods (FMCG)
company during 2001 and 2002 This paper reflects this dimension as it uses original
emails and PowerPoint slides to recount a number of representative episodes in a troubled
but ultimately successful project At the heart of this success is the realization that
33
whereas it can be difficult and time-consuming to do root-cause analyses it is relatively
simple to identify problem owners In this case the senior management without IT
backgrounds turned around a failing project by reorganizing the team structure according
to process areas so that issues in each process area had one problem owner We
summarize the managementrsquos actions into a troubleshooting framework and in addition
suggest three actions for rescuing troubled projects keep the project manager but narrow
down the managerrsquos scope of responsibility to one or two process areas assign the right
people to be responsible for other process areas and have the General Manager chair the
ERP meetings [60]
In the PICMET 2006 Proceedings on ldquoOptimizing the Change Management of Enterprise
Resource Planning Systems Implementationsrdquo Onur Kerimoglu and Nuri BaUogluI
(2006) maintain that although Enterprise Resource Planning (ERP) systems are being
used widely all around the world they also carry out many problems as well as their
benefits These systems are well known for enhancing cross functional efficiency and
effectiveness through the integration of all information flowing throughout an
organization However during different project life cycle stages of ERP systems this
integration may not be provided because of the formulation of incompatibilities which
are greater than the optimum level among different parties like ERP system processes of
the organization and system users Within this study existing incompatibilities between
these parties are modeled respectively In common the model propose that the ERP
product mostly matching with the processes of the organization should be selected
processes of the organization should be changed for being compatible with the ERP
system and system users should be educated new qualified people should be hired etc
for making the system and processes more familiar to people Here the point is that all of
these are done for keeping incompatibilities between the ERP system processes and
people at minimum level because this minimalism will avoid optimization and utilization
problems This study not only handles problems of ERP from a newer perspective but
also provides insight to managers about managing the change and utilizing their resources
efficiently for adopting the ERP software across the organization [59]
Capaldo Guido and Rippa Pierluigi (2008) in ldquoA methodological proposal to assess the
feasibility of ERP Systems Implementation Strategiesrdquo stated that Continuous failures in
34
ERP systems implementation project are today the main challenge in the feasibility of
integrated information systems Failure can be determined by different factors both from
technological side and organizational side if not well managed In this paper we propose
a methodological approach based on technochange management in order to assess the
feasibility of ERP implementation strategy and reduce the risk of failure in terms of
project metrics and early operational metrics A case study in a big Italian
Telecommunication Firm will be presented [19]
ldquoCase Study of PLIVA Pharmaceuticals Inc - Aligning ERP System Implementation
with Business Process Changerdquo is very relevant and contemporary paper presented by
Vesna Bosilj Vuksic and Mario Spremic (2004) The main objective of this paper is to
present the impacts of information technology (IT) and enterprise resource planning
(ERP) systems in business process renovation projects A case study of business process
reengineering project and the implementation of the SAP software solution in PLIVA
(PLIVA pharmaceuticals Inc) are presented [116]
In ldquoKey Factors Driving the Success of Technology Adoption Case Examples of ERP
Adoptionrdquo Chonyacha Suebsin and Nathasit Gerdsri (2009) address the issues that
impact technology adoption within an organization Several factors influencing
technology adoption process are identified from the literature review Case examples of
the adoption of a new management technology Enterprise Resource Planning (ERP) are
presented to illustrate the situations of technology adoption in organizations From the
case examples the factors influencing technology adoption in organizations are
consistent with the factors identified from the literatures The further discussion also
reveals the additional determinants including the clarification of project scope individual
commitment and communication which should be taken into consideration when an
organization adopts a new technology [105]
Maya Daneva (2002) in her paper ldquoUsing Maturity Assessments to Understand the ERP
Requirements Engineering Processrdquo mentions that applying standard requirements
engineering (RE) processes is a major trend in todayrsquos Enterprise Resource Planning
(ERP) software engineering It emerged five years ago with the promise to provide a
mechanism helping ERP project organizations deliver their business requirements timely
and within budget This paper looks in depth at a standard ERP RE process and seeks
35
answers to four questions how well it is defined what are the risks associated with its
application in matureimmature organizations what are the essential practices that
contribute to its success and what are the costs of the process and the quality of the
delivered results The main motivation of this paper is to provide some practical advice
for using assessments to increase project teamsrsquo understanding of the ERP RE process
[26]
Fan JC and Kwoting Fang (2006) ldquoERP Implementation and Information Systems
Success A Test of DeLone and McLeans Modelrdquo present their research that develops
and tests a theoretical extension of DeLone and McLeans model of information system
(IS) success which explains personnel belief that contributes to users utilization of ERP
(enterprise resource planning) systems The extended model is tested using the structural
equation model (SEM) a survey of 202 end-users from ten Taiwanese enterprises that
has implemented Data Systems workflow ERP systems is conducted The theoretical
model proposed in this study provides insight into how the concept of useful perception is
incorporated into DeLone and McLean model and plays a critical mediated role to
influence system usage and its associated satisfaction The implications of these findings
for researchers and practitioners are discussed [32]
In the research findings ldquoManaging ERP Implementation Failure A Project Management
Perspectiverdquo Charlie C Chen Chuck C H Law and Samuel C Yang (2008) stated that
Information Technology (IT) projects are susceptible to changes in the business
environment and the increasing velocity of change in global business is challenging the
management of enterprise systems such as enterprise resource planning (ERP) At the
same time system success depends on the rigor of the project management processes
Scope creep poor risk management inadequate allocation of human resources over time
and vendor management are some common problems associated with the implementation
of an enterprise system These issues pose threats to the success of a large-scale software
project such as ERP This research adopts a case study approach to examine how poor
project management can imperil the implementation of an ERP system Having learned
the lessons from the failure of its first ERP implementation the company in this case
reengineered its project management practices to successfully carry out its second ERP
implementation Many critical project management factors contributed to the failure and
36
success of this companyrsquos ERP system This study explores and identifies critical
elements of project management that contributed to the success of the second ERP
implementation For those organizations adopting ERP the findings provide a roadmap
to follow in order to avoid making critical but often underestimated project management
mistakes [21]
Rafa Kouki Robert Pellerin and Diane Poulin (2008) in An Exploratory Study of ERP
Assimilation in Developing Countries The Case of Three Tunisian Companies assessed
that ERP systems could be considered as the most difficult systems to be assimilated
Very little research however has been realised to investigate the determinants of success
of the ERP assimilation process There has been also a dearth in research about ERP
projects in general and ERP post-implementation and assimilation in particular in
developing countries Using a case study methodology grounded in the diffusion of
innovation theory this study tries to understand the factors that could improve or
challenge the ERP systems assimilation process in three Tunisian companies Our
findings highlighted the importance of several factors such as top management support
strategic alignment IT expertise training communication organizational culture and
coercive pressures [62]
Ian Sommerville (2008) Construction by Configuration Challenges for Software
Engineering Research and Practice observed that past ten years have seen a radical shift
in business application software development Rather than developing software from
scratch using a conventional programming language the majority of commercial
software is now developed through reuse ndash the adaptation and configuration of existing
software systems to meet specific organizational requirements The most widespread
form of reuse is through the use of generic systems such as ERP and COTS systems that
are configured to meet specific organizational requirements In this paper he discussed
the implications of software construction by configuration (CbC) for software
engineering Based on his experience with systems for medical records and university
administration he highlighted some of the issues and problems that can arise in
construction by configuration he discussed problems that arise in CbC projects and
identify a number of challenges for research and practice to improve this approach to
software engineering [104]
37
SV Deshmukh and RR Lakhe (2008) in the research paper ldquoSix Sigma ndash An Innovative
Approach for Waste Reduction A Case Study of an Indian SMErdquo present a case study
aimed at reducing waste at an SME engaged in manufacturing of corrugated boxes The
Define Measure Analyze Improve Control strategy of Six Sigma methodology was
followed to identify probable causes for wastages After studying the system and
implementation of six sigma tools an overall 227 waste reduction was achieved
Individually out of a total seven processes 5 showed waste reduction in excess of 40
This reduction was statistically significant at Plt005 The study confirmed successful
implementation of six sigma to minimize waste generation and in terms saving in
manufacturing costs or increasing the bottom line [29]
While in ldquoERP Implementation Critical Success Factors - The Role and Impact of
Business Process Managementrdquo Yasar F Jarrar Abdullah Al-Mudimigh and Mohamed
Zairi (2000) investigate the role and impact of business process management in
successful ERP implementation The paper starts by defining business process
management ERP and the ERP critical success factors The impact of business process
management on successful ERP implementation is then assessed through looking at the
experiences of several organizations The paper concludes by highlighting best practices
for capitalizing on business process management for successful ERP implementation
[52]
M S Camara L Kermad and A El Mhamedi (2006) in the paper ldquoRisk Prediction in
ERP Projects Classification of Reengineered Business Processesrdquo maintain that
Companies have been implementing ERPs for almost ten years now and more the same
implementation problems continue to occur More and more ERP projectrsquos technological
challenges are accompanied by critical dimensions related to the management of the
transformational effects of these projects on the organization Indeed risk management in
this kind of project is not very structured and misses specific methods In this article they
propose a structured methodology for risk management particularly in the BPR (Business
Process Reengineering) sub-project of ERP implementation The final aim of our work is
to decease appreciably resistance to organizational change which poses the greatest
obstacle to business process reengineering efforts They propose to adapt OSR (Optimal
Set Reduction) a risk management method used in software development for the risk
38
management in ERP implementation They address specially the risk related to the
changes in enterprise processes in the ERP project To achieve this objective they
propose to define business process change metrics starting from business process
complexity metrics that exist in the literature [18]
ldquoExploration and Verification of Factors in the Front-end Stage of the ERP
Implementation Process Evidence from Case Study and Survey Researchrdquo Kun Shi and
Qiang Lu (2009) depict that ERP (Enterprise Resources Planning) is widely used to
improve business performance This paper explores how the factors associated with the
Front-end ERP Implementation Process (FEIP) affect the implementation outcome First
based on literature review a preliminary framework with 12 hypotheses is developed
Then Grounded Theory is applied for a case study to further extract and verify the factors
and sub-factors These factors are finally identified as strategic planning corporate
culture user characteristics organization-process-system maturity external expertise
engagementsupport and project preparation Furthermore the significance and
correlation of all the factors are detected by conducting survey research with SPSS as a
tool for analysis The study shows that the framework is valid and that among six three
factors have strong impact on the ERP implementation result whereas others are less
influential Implication is given and limitation is indicated at the end [63]
Huo Lingyu Liu Bingwu and Li Juntao (2009) in the paper ldquoAn ERP System Selection
Model Based on Fuzzy Grey TOPSIS for SMEsrdquo present a new fuzzy multi-criteria
decision making (FMCDM) approach which integrates the technique for order preference
by the similarity to ideal solution (TOPSIS) grey relation and fuzzy set theory for
enterprise resource planning (ERP) system evaluation and selection in the Small and
Medium-Sized Enterprises (SMEs) In this study the characteristic of the alternative with
respect to the criteria are represented in terms of a linguistic term set and the weight of
the criteria is described by triangular fuzzy numbers respectively According to the grey
theory and fuzzy set theory a closeness coefficient is defined to determine the ranking
order of all alternatives by calculating the grade of grey relation to the fuzzy positive-
ideal solution (FPIS) and fuzzy negative-ideal solution (FNIS) simultaneously Finally
an example is shown to highlight the procedure of the proposed method [48]
39
Gao Juntao Zhang Li Wang Zhiyao (2008) summarized their findings in ldquoDecision
Support for Handling Gaps between ERP functionalities and Organizational Needs A
Goal Reasoning based approachrdquo They found that in the process of selecting
commercial off-the-shelf (COTS) ERP systems it is inevitable to encounter gaps between
ERP software and organizational needs Gaps occur when COTS attributes do not exactly
match organizational needs and they make organizational users and software vendors in
the dilemma whether to adapt as-is business processes or to customize software
packages A decision support method for handling gaps is proposed in this paper Firstly
organizational goal-process models are built as the base for decision making Secondly
the idea of evidence theory is introduced into goal reasoning and a quantified algorithm is
proposed to evaluate the impacts of different business processes on high level goals
which are critical to make decision At last the risk is discussed to rank intervals which
specify the expected utilization of business processes [56]
Yvonne Dittrich and Sebastien Vaucouleur (2009) conducted a research on the topicrdquo
ERP Customization as Software Engineering Knowledge Sharing and Cooperationrdquo and
argue that Enterprise resource planning (ERP) systems must be configured and
customized to fit a specific company The authors discuss cooperation with regard to ERP
systems customization Enterprise resource planning (ERP) vendors provide multiple
configuration possibilities ranging from module selection to master data provision to
steer access rights for different users These configuration possibilities cover anticipated
variability If the customer requires adaptation beyond whatrsquos anticipated the source
code of the product must be adapted Customizations in this articlersquos context are source-
code-based adaptations of software products The size and complexity of customizations
range from simple report generation to developing independent add-ons that support
specific businessesmdashfor example solutions for flight carriers The size and lead time of
such projects can compare to a full-size software development project They present
empirical research on customization practices of ERP systems as an example of software
development based on customization of standard software They compared customization
with other development practices that are based on integrating existing code and results
underlined the need to rethink software engineering and programming methods and tools
[129]
40
In the paper study ldquoSignificance of Software Metrics in ERP Projectsrdquo S Parthasarathy
and N Anbazhagan (2006) narrate that ERP projects are a subclass of software projects
often accompanied by large-scale organizational changes One of the major reasons found
in the literature for the failure of ERP projects is the poor management of software
processes In this paper we propose a Software Metrics Plan (SNP) containing different
software metrics to manage software processes during ERP implementation Two
hypotheses have been formulated and tested using statistical techniques to validate the
SNP The statistical analysis of the collected data from an ERP project supports the two
hypotheses leading to the conclusion that the software metrics are momentous in ERP
projects [84]
Antony Marsh (2000) in the article ldquoThe implementation of Enterprise Resource Planning
systems in small and medium Manufacturing enterprises in south-east Queensland a case
study approachrdquo examines the implementation of ERP systems in smallmedium-sized
enterprises in South East Queensland Australia Nine case studies were conducted to
determine factors for success or failure in the implementations Key success factors
identified included cross-functional team approaches organizational experience of
similar scale IT or organizational change projects and lsquodeeprsquo understanding of the key
issues relating to ERP implementations Failure factors identified included top-down or
consultant driven implementations IT department driven implementations or
implementations where the EFV is seen as a quick technological fix to problems within
the operation of the firm rather than as a strategic investment [78]
Christian Doumlrner Sebastian Draxler Volkmar Pipek and Volker Wulf (2009) through
their study ldquoEnd Users at the Bazaar Designing Next-Generation Enterprise Resource
Planning Systemsrdquo propose that the bazaar metaphor has developed a lasting
popularity in software engineering especially as software architectures have evolved
from monoliths to service orientation Nevertheless the metaphor is limited because it
doesnt consider end users those who develop software for themselves Introducing such
an end user the prosumer to the bazaar not only suggests a changing division of work
in software development but also calls for different functionality and architectural
choices The authors evaluated changing software architectures from an end-user
development (EUD) perspective taking the case of enterprise resource planning (ERP)
41
systems as traditionally monolithically designed systems moving toward service
orientation On the basis of the studys findings which indicated problems with the
systems technical flexibility the authors developed a tool set for fostering EUD
activities Their new architecture for ERP systems enables end users to create their own
solutions [31]
Kenny KF Lee (2000) in ldquoThe Five Disciplines of ERP Software Implementationrdquo has
identified the critical factors in businesses which learn grow and succeed This paper
applies the central concepts of the book its five disciplines to the software business
specifically the management of software implementation Using the learning challenge
posed by the organization-wide implementation of Enterprise Resource Systems (Em) the
paper covers how EM software project leaders may manage themselves their teams
business vision and corporate culture and team members to create a survival machine
which can thrive in the current economic and technological climate [67]
Piet MA Ribbers amp Schoo (2000) in his paper ldquoDesigning Complex Software
Implementation Programsrdquo raises a central question that how one can design of Program
Management contributes to the success of complex software implementations
Incomplete goal specifications lack of communication and underestimation of project
complexity are signs of insufficient program and project management To avoid these
pitfalls he proposes ways that have worked well in recent complex multi-project ERP
implementations (programs) Answering the above question raises the problem of
adequately defining and measuring the level of complexity of an implementation
program A conceptual model was developed which identifies program management
factors that are proposed to have an impact on implementation success Fifteen cases
were studied to find support for the proposed framework [88]
ldquoDetecting Gaps between ERP Software and Organizational Needs A Semantic
Similarity Based Approachrdquo is very relevant and contemporary paper presented by Gao
Juntao and Zhang Li (2008) It depicts that Gap analysis is one of the most important
phases in implementation of enterprise resource planning (ERP) system In this paper an
approach is proposed to automatically detect gaps between software capacities and
organizational needs based on semantic similarity computation The approach takes two
business process models as input and one specifies software capacities and the other
42
describes organizational needs The output of it is a report of gaps As a matter of fact
the differences between application domain and software discipline make semantic
heterogeneity a key problem in gap detection therefore the technologies of semantic
similarity computing are employed to resolve ambiguity issues caused by the use of
synonyms or homonyms In particular the idea of similarity propagation is introduced to
pick out a mapping between corresponding activities and data and Hungarian algorithm
is employed to reduce its time complexity Then the similarity of whole models is
measured according to the minimal total cost of change operations Finally an
experiment is given to evaluate the method [36]
In the research publication ldquoERP System Adoption - Does the Size Matterrdquo Sanna
Laukkanen Sami Sarpola and Petri Hallikainen (2005) investigate the relationship of
enterprise size to the constraints and objectives of ERP systems adoption The survey
data based on the responses of 44 companies indicates that significant differences exist
between small medium-sized and large enterprises in ERP system adoption Specifically
the findings suggest that small companies experience more knowledge constraints than
their larger counterparts in ERP adoption Further while being the most prevalent
objective for ERP adoption in all the company groups business development through
ERP adoption is considered especially important by the medium-sized and large
enterprises Finally the findings of the study suggest that instead of considering small
and medium-sized enterprises as one homogenous group the differences between these
two groups of companies should be acknowledged in the future research [65]
In their paper ldquoModel Based on CSCWrdquo Wedian Liang XuFen Zhenkun Li Rong Xiao
JunFeng Hu (2005) summarise their finding They feel that Software testing is an
important component of the software engineering and an important link that the software
development quality is guaranteed Using the reasonable model for software testing can
reduce the expenses of testing in the developing activity in the course of testing thus cut
down the cost of software development In this paper we put forward a model for
software testing bused on CSCW technology that run through each stages of software
development cycle If can find the mistake in the software as soon as possible has
shorten the time taken for testing in the course of the development of software testing
43
effectively Finally we applied the model to the testing project which develops ERP
system and then receive the ideal result [118]
In their paper ldquoThe Research and Development of IMIS for Small and Medium-sized
Printing Enterpriserdquo Taolin Ma Xiaoming Chen Yansong Sun Xiurong Li (2009)
analyzed the fact that the basic management thought of inventory management
information system (IMIS) was established by analyzing the inventory management
theory of modern enterprise In this system which using the architecture of CS the stores
were classified by ABC management method the inventory control was completed by
setting up the safety stock and the largest stock the analysis and design of IMIS were
finished This IMIS was developed to meet the practical requirements of small and
medium-sized printing enterprise in our country It can not only be used as the important
measure of the informationized construction for small and medium sized printing
enterprise but also used as a subsystem of enterprise ERP system IMIS could improve
enterprise management level realize rapid transformation of enterprise and finally
enhance the competitiveness of enterprise in market economy [106]
Jiangao Deng and Yijie Bian (2008) in the research paper ldquoConstructing a Risk
Management Mechanism Model of ERP Projectrdquo mention that in the process of
information project implementation of manufacturing enterprises there are many risks to
set up a set of risk management mechanism is guaranteed for them to succeed in ERP
implementation Firstly based on the analysis of ERP project implementation of China
the paper introduced the risk management methodology systems and the relative model
which includes three main steps identifying risk evaluating risk and controlling risk
After that on the aspects of decision implementation and application stages of
manufacturing ERP project life cycle the paper discussed risks of each stage and put
forward a two-dimension matrix risk management strategy Then a mechanism model of
ERP project risk management is constructed which shows that information risk control
strategies of the last two stages not only depend on resources of these stages but also
have a diverse relationship with the last stage Finally according to the successful
implementation of an enterprisersquos ERP project the paper carried out an effective case
application analysis of risk management mechanism model The lack of improvement in
usersrsquo ERP skill levels and the shortage in documenting the rationale for business rules
44
and configuration decisions were among the critical issues of the post-implementation
stage Indeed all of their respondents stressed the importance of refreshing the usersrsquo
knowledge about the system [28]
Saumyendu Ghosh (2003) in ldquoGlobal Implementation of ERP Software ndash Critical Success
Factors on Upgrading Technical Infrastructurerdquo discusses that implementing an
Enterprise Resource planning (ERP) software in a global environment executive
sponsors face two key challenges While business processes are to be re-engineered to
align with the ERP software best practices technical architecture and infrastructure needs
to be in place globally as per specifications of the packaged software In the legacy
environment different countries or different business units use different systems based
on local standards supported by local resources In the new ERP world globally all the
countries must conform to same technical infrastructure Technical managers face
multiple critical issues implementing a global solution Most of the ERP software is
developed in technically advanced countries standards are often too high for under
developed or developing countries In an effort to bring the global organization to a
common platform different countries need different levels of upgrades In this paper the
authors review key technical issues faced is a global upgrade process to support a global
ERP implementation and how to resolve those We conclude although technical
infrastructure and business process reengineering both are equally important and each
implementation is unique but following some simple steps it is easy to prioritize each
ones during different phases of the project Also time lines of two sub-projects must
converge after initial phase and must follow a common plan for the project to be
successful Multiple scenarios are described to facilitate the process He concludes
although technical infrastructure and business process reengineering both are equally
important and each implementation is unique but following some simple steps it is easy
to prioritize each ones during different phases of the project Also time lines of two
subprojects must converge after initial phase and must follow a common plan for the
project to be successful Multiple scenarios are described to facilitate the process [38]
Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008) ldquoDevelopment and
Implementation of ERPCRM System Based on Open Source Software to Small and
Medium-sized Enterprise in Chinardquo analysed the fact that E-commerce and the
45
development of modern enterprise management raise a number of challenges in the
process of informatization of small and medium-sized enterprises (SME) in china To
address this they present an approach in which the informatization is enhanced by using
Open Source Software with customized policies We analyses the main
informationization obstacles of SME in china bring forward that the lack of bankroll
talents cost and management etc are the key problems to informationization of SME
Furthermore they have developed a textile foreign trade ERP CRM system based on
Open Source Software for the local textile distributor of china integrating financial
distribution sales and service processes given the implement method of overall planning
step-by-step implementation key breakthrough and efficiency guiding In the end we
compare the typical Open Source Software and traditional commercial software point
out the advantages of informatization based Open Source Software to SME in china and
the development trend of Open Source Software for enterprise application [132]
ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information Systems ndash a
Multi-disciplinary Method for ERP System Requirements Engineeringrdquo by Inka Vilpola
Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that ERP systems are in
most cases off-the-shelf software packages and large by their size and complex by their
structure Small and medium-sized enterprises (SMEs) require flexibility of the ERP
system because of their individual operational processes Therefore it is crucial to select
and implement an ERP system that fits the requirements of the intended target processes
To support the requirements engineering of ERP systems we have developed Customer-
Centered ERP Implementation (C-CEI) method The method introduces a multi-
disciplinary approach to the ERP project and provides in-depth understanding of the
companylsquos processes and context of use Using C-CEI method decreases the risk of
SMEs to select an inappropriate system and improves the system acceptance by the
customer companyrsquos employees In this paper we present the method and illustrate it by
three SME case studies [114]
Saumyendu Ghosh (2000) in ldquoChallenges on a global implementation of ERP softwarerdquo
discusses that some of the unique challenges in ERP implementation are satisfying
multiple countries statutory requirements and reporting to the corporate head quarters
from one installation of the software conflicting interests between different business
46
entities lack of experienced implementators in all the countries and eminent users of
multinational advantages He discusses different aspects of these challenges in detail and
point out that ERP software can provide only one solution for a particular business
process unless workarounds are available from experienced implementation Different
counties adopt different reporting and accounting practices and therefore an ERP
implementation cannot solve all problems that global corporation may have multiple
countries in the scope of the project due to absence of standard global processes across
the organization He concludes that the most important critical success factor of these
international implementations are how quickly these corporations can reengineer existing
business process to adopt best practices of using an ERP system [38]
Dong Cheng Feiyan Deng Hongtao Li (2006) ldquoCritical Factors for Successful
Implementation of ERP in Chinardquo in their study propound a theoretical model for
successful implementation of Enterprise Resource Planning (ERP) under Chinarsquos
environment and the authors analyze the model empirically through structural equation
modeling The authors find that strategically IT planning abilities leadershiprsquos support
and the skills of IT section business processing abilities learning abilities and change
management abilities has a significant positive impact on successful ERP implementation
[22]
Parijat Upadhyay (2008) in his research studies ldquoAn explorative study to identify the
Critical Success Factors for ERP Implementation in Indian small and medium scale
enterprisesrdquo explores the existing literature on ERP implementation issues in context to
small and medium scale enterprises and attempts a compilation of the factors that assume
great significance while implementing ERP in SMErsquos Given the nature and magnitude of
the problems in encountered in implementing an ERP project this study would attempt to
identify the critical success factors(CSFrsquos) for a successful implementation of an ERP
project since it calls for substantial effort on the part of all the stake holders involved to
make the implementation a success [111]
ldquoThe ERP Implementation of SME in Chinardquo Yuanqiang Xia Peter Lok and Song Yang
(2009) presented the fact that ERP implementing for small and middle size enterprise
(SME) is different from the large one Based on the analysis on the character of ERP
marketing and SMEs of China 6 critical success factors are recommended The research
47
suggests that the top management support is most important to ERP implement in SME
of China in which paternalism prevails Database of management and capital are main
obstacles ERP 1 or ERP 2 fits to demand of SME high power project team has
tremendous significance in the situation of absence of IT engineer for SME education
and training is helpful to successfully ERP implementing The results service as better
understanding the ERP implementation of SME in China and gaining the good
performance of ERP implementation [126]
Yan Xu and Chung-Hsing Yeh (2009) in the article ldquoStrategic Management of
Performance Measures for an ERP Implementation Project Teamrdquo present a new
evaluation model for managing performance measures of an enterprise resource planning
(ERP) implementation project team in an organization With the performance measures
classified into four strategic perspectives of the balanced scorecard the evaluation model
enables the goal alignment between the project team and the organization A new
algorithm using the concept of multi-attribute decision making is developed to obtain the
relative importance value for each performance measure for its contribution to the
strategic goals of the organization The higher the importance values of a performance
measure the more important the role it plays in determining the responsibilities of the
corresponding project team player Understanding the importance of the key performance
measures will help an organization well-prepare to launch a project and have the project
being organized in advance A case of an ERP implementation project in an integrated
manufacturing corporation is presented to demonstrate the applicability of the evaluation
model and its effective management of the performance measures [124]
Zhang Yanhong (2009) in his research paper ldquoERP Implementation Process Analysis
Based on the Key Success Factorsrdquo describes that Enterprise Resource Planning (ERP) is
an amalgamation of a companys information systems designed to bind more closely a
variety of company functions including human resources inventories and financials
while simultaneously linking the company to customers and vendors This thesis is based
on the theory of product life cycle and the process of ERP is divided into four phase
planning implementation stabilization and improvement Critical success factors in each
phase are identified by paper research case study and investigation An ERP
implementation process model based on the critical Success factors (CSFs) is proposed in
48
the paper The thesis analyzes the global planning stages and business process rebuilding
in the process of QIHE pharmaceuticals ERP Improvement on management and
financing before and after ERP implementation are contrasted and we come to the
following conclusions (1) The CSFs in the planning phase is comprehensive
investigation and evaluation (2) The CSFs in the implementation phase is effective
project management team (3) The CSFs in the stabilization phase is appropriate
information management system (4) The CSFs in the improvement phase is change on
demand and continue to innovate (5) The CSFs throughout the product life cycle is
business process rebuilding [131]
Van Stijn E and Wensley A (2001) ldquoOrganizational memory and the completeness of
process modeling in ERP systems some concerns methods and directions for future
researchrdquo mentioned that Enterprise resource planning (ERP) systems not only have a
broad functional scope promising to support many different business processes they also
embed many different aspects of the companyrsquos organizational memory Disparities can
exist between those memory contents in the ERP system and related contents in other
memory media such as individualsrsquo memories and the organizational structure and
culture It is our contention that in general these disparities or memory mismatches as
we will refer to them lead to under-performance of ERP systems In this paper they focus
on potential memory mismatches that may arise with respect to the embedding of process
knowledge within ERP packages Packages such as SAP provide a varied and rich
environment for process modeling However they suspect that there are still many
instances where process knowledge is either lost or represented in different ways in
different parts of the organization The overall thrust of the paper is to identify a variety
of concerns intriguing questions and avenues for future research [112]
Eric Kimberling (2008) in his article ldquo The Role of Lean Six Sigma in ERPrdquo insisted
that there are a number of things to consider when considering a new ERP system like six
sigma lean manufacturing or other business transformation projects that has the capacity
to measure reducing waste managing change well continuous improvement etc [133]
William H Gaw (2010) ldquoEight Basics of Lean Six Sigma for Manufacturing Firmsrdquo In
the efforts to draw closer to customers many manufacturers have lost focus on what
should be a companyrsquos primary success factor ndash profitable growth In todayrsquos competitive
49
manufacturing environment it takes more than quick fixes outsourcing and downsizing
for companies to consistently achieve their growth and profit objectives While these
options may yield temporary financial relief they will not lead the way to long-term
growth and profitability For companies to grow and consistently exceed bottom line
expectations they need to get lean And to get lean they should master eight basics of
Lean Six Sigma in the form of information integrity performance measurement
sequential production point-of-use logistic cycle time management production linearity
and resource planning and customer satisfaction [134]
Brehm L and Markus M L (2000) in The Divided Software Life Cycle of ERP
Packages mentioned that traditional information system life cycle (SLC) focuses on the
activities performed by company developing implementing and maintaining software for
its own internal use Enterprise resource planning (ERP) software packages change the
SLC in several important ways This paper presents an extension of the SLC model for
ERP packages The lsquodivided software life cyclersquo (DSLC) model features an equal
emphasis on the activities performed by the ERP adopting company and the ERP vendor
[15]
Alavi M and Carlson P (1992) A Review of MIS research and disciplinary
development The perceived status of journals in which MIS research is published is an
important issue to academics The number of IS-related journals has increased through
the years yet it is not obvious which are the ldquoleadingrdquo journals or what criteria should be
used to determine this This article addresses these issues by (1) evaluating and
analyzing previous studies in which MIS related journals have been ranked (2)
determining top-ranked journals and placing them into two levels or tiers based on
previous studies and (3) establishing a profile through a systematic analysis of the nine
journals in the first tier This study identified 17 highly ranked journals for publication
Nine were placed in the first tier and eight in the second tier In addition to IS-specific
journals publications included management science computer science and business-
oriented journals The individual strategies for improving software productivity are
identified Issues related to software costs and controlling them are examined and
discussed It is pointed out that a good framework of techniques exists for controlling
software budgets schedules and work completed but that a great deal of further progress
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 9
20
Babak Akhgar Jawed Siddiqi and Samir Al-Khayatt (2002) summarized their findings in
the article ldquoStrategic exploitation of ERP for e-businessrdquo for the Proceedings of the
International Conference on Information technology Coding and Computing (ITCCrsquo02)
This paper based on research from an ongoing IS investigation project at a large
multinational company examines the relationship between ERP amp E-business The paper
discusses different scenarios of ERP implementation status that organizations may find
themselves It examines the components of e-business success namely visibility of
information processes and technology that will be either enabled or restricted by ERP
What transpires from this research is that for many start-ups e-business becomes
synonymous with business in general Ultimately they conclude that e-business should
form part of the corporate strategy and that IS or IT strategy should form the basis for
determining ERP implementation structures thereby ensuring e-business requirements
become the platform for ERP [2]
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther G Chattopadhyay (2004) The paper
presents research on ERP system characteristics particularly relevant for Small to
Medium Enterprises (SME) Authors investigated the duration of the project phases to
establish the human resource requirements through the selection implementation and
support of the ERP project Common factors that are crucial for an SME in the
manufacturing sector embarking on an ERP system are identified in this paper for system
selection and implementation User survey was carried out for a target group of SME
companies around Brisbane Australia The survey captured both qualitative and
quantitative data relating to the ERP system in place at a target group of electrical and
electronic equipment manufacturing companies located in South East Queensland
Australia Quantitative analysis was carried out on the cost of the ERP selection and
implementation project both in terms of capital outlay and human resources [87]
Reported implementations recognized the benefits of aligning business processes with a
target ERP system in the period prior to the go-live and authors summarize following
points
ERP system as a business tool for growth of SME
21
Critical selection factors unique and realized benefits different for each business
SME having limited resources (money people time) with which to evaluate and
implement ERP
Ongoing costs
Overall success
In the paper study ldquoERP Training Strategies Conceptual Training and the Formation of
Accurate Mental Modelsrdquo Tony Coulson Conrad Shayo CE Tapie Rohm Lorne
Olfman (2003) examined a major determinant of successful ERP implementation end-
user training The study finds that a workflow conceptual advanced organizer strategy
(TCT group) improves end-userrsquos mental model accuracy over time as demonstrated by
the subjectslsquoability to recall ERP specific concepts Results indicate that a conceptual
advance organizer is an important component of ERP training and should be incorporated
into an organizationlsquos training strategy In general the study supported the framework
and found that by adding a tool conceptual knowledge-level to the training the end-users
developed more accurate mental models By using the knowledge-level framework and
incorporating tool conceptual knowledge into an organizationlsquos training design
organizations may see an improvement in overall ERP implementation results For
example because ERP training is very expensive those within an organization that attend
ERP training are often asked to train others in the organization when they return This
study shows that adding a tool conceptual knowledge-level to their training improves
their ability to recall and re-articulate their understanding of the system By building the
knowledge-levels that enable more effective understanding and communication of
concepts learned could be an invaluable asset to any companylsquos training and
implementation strategy [24]
ldquoEnterprise Resource Planning Challenges for Small and midsize Business (SMBs)rdquo
Analyst Katherine Jones (2004) of Aberdeen suggests that small and midsize businesses
are primarily driven by operating cost pressures perceived as the biggest challenge and
their key challenges are
1 Insufficient funding for corporate strategies and initiatives
2 Lack of clearly defined corporate vision and goals
3 Ineffective communication of corporate strategies and initiatives
22
4 Metrics that do not sufficiently provide incentives employees to supportachieve
corporate goals
5 Inability to accurately determine and plan for customer demand
As the immense variability in how SMB companies conduct business still predominates
the SMBs see technology as the enablers of their strategies Specifically cited are the
increased availability of advanced analytics decision support and reporting tools as well
as the availability of process-specific business applications [55]
Christina Soh Sia Siew Kien and Joanne Tay-Yap (2004) through their study on the
subject ldquoCultural Fits amp Misfits Is ERP a universal Solutionrdquo Present early findings
from a larger ongoing study The typology of misfits and examples are drawn from the
review of implementation documents and supplemented by interviews with key project
team members from one hospital [102]
In their White Paper ldquoERP Selection ndash Right Tracking Enterprise Change ITSg-GCPrdquo at
TCS Dr Joginder Singh Lamba amp Swapnil Kitcha (2007) analyzed the fact that
business changes in the form of portfolio expansion structure decentralization and supply
chain integration drive new investments in ERP Besides the need for more functional
areas within the IT landscape (BI CRM PLM and Product Information Management)
demands new interfaces with ERP backbone Heterogeneous compatibility and varied
maturity across modules elicit interest in best of breed solutions in ERP [64]
In ldquoFuture of ERP systems and Microsoft Dynamics Learn about XML and Web
servicesrdquo McKie (2008) discusses what sort of requirements XML and web services put
on business applications He further explains ERP systems need to be able to create
XML schemas (data specifications) and they need to be able to import and export data in
XML documents The more data an ERP user needs to share with business partners the
more important is to have these capabilities In addition to XML McKie identifies a
second type of Web service that offers functionality rather than data is expected to
emerge in the form of business partner integration analytics and alerts [79]
David Caruso (2005) Senior Vice President Industry Research AMR in his article
ldquoProcess Productivity and Profit The SMB Executiversquos Framework for ERP
Investmentrdquo narrated that SMBs which are not aggressively developing an effective ERP
strategy will be at some disadvantage to their peers by 2006 Forward-thinking executives
23
will consider strategic business capabilities as the drivers for enterprise resource planning
(ERP) investment justification In a 2005 study that AMR Research conducted with over
550 companies regarding their ERP investment plans and found that only 27 of small
companies (fewer than 500 employees) are currently using ERP This is in sharp contrast
to the 57 of large companies (500 to 2499 employees) and 70 of enterprise-sized
companies (2500-plus employees) that have operational ERP systems Given this data it
is not surprising that almost 50 of the respondents interviewed will be making
substantial changes to their existing ERP systems over the next 12 to 18 months The
challenge for executives charged with the decision is establishing a powerful context for
making the ERP investment [20] When considering the ERP investment decision from
the perspective of the executive suite there are four overarching drivers that frame what
executives need to consider
1 Productivitymdashgetting the most from your valuable employee assets
2 Connectivitymdashworking collaboratively with your key customers and suppliers
3 Business insightmdashImproving the speed and quality of decision making
4 Total cost of ownershipmdashreducing the cost of owning and operating IT systems
Yong Jean John amp Ki-Henry Yim (2001) in an article ldquoA study on an Environment of
ERP Introductionrdquo includes the role of ERP perception of ERP value ERP plan
direction and also argues various checkpoints as a preview of ERP introduction In
conclusion they list checkpoints in sequence based on the mean values that provides
indications of the relative importance As a result the most important checkpoints were
Performance of Introduction Main Reference Sites Availability of Current Resources
Easiness of Introduction Operation System Past Records of Supply Market Share and
Vendor Size The results shown in this paper has shown strong implications for ERP
vendors Vendor size and market share received the least attention amongs all the
checkpoints described in the study [125]
One step forward IQMS Executive White Paper (2007) ldquoHow Successful ERP Selections
are Made ldquo this paper is not just about want and donrsquot want from the various people in
the organization It suggests that it should be a long lasting purchase that provides the
users the feeling of a partnership As the user is not just buying software they are also
buying into a vendor and their company culture The combination of software capability
24
and vendor credibility should be a major purchasing factor There is more to a lasting
ERP purchase than that There are several platform thoughts on technology how many
vendors are included the demonstration the always useful buzz words with all the hype
on service oriented architecture (SOA) best of breed lean manufacturing and all the
other phrases floating in the industry today implementation time customer referrals
customer retention look at your company objectively etc [49]
Robert C Beatty amp Craig D Williams (2006) in ldquoBest Practices for Successfully
Implementing an ERP Upgraderdquo maintain that an ERP upgrade is deceptively complex
and can be daunting especially for organizations ignorant of the massive effort required
to do it correctly One study of mid-size to large companies conducted by AMR Research
found that 67 of these companies are implementing some form of ERP while another
21 are evaluating potential ERP systems solutions As a growing number of companies
adopt ERP systems ERP systems implementation and upgrades are identified as one of
the top five IT priorities among global CIOs according to independent surveys conducted
by Morgan Stanley and Deloitte amp Touche IDG Research Services Group In
conclusion this article provides organizations with a list of the eight most common
recommendations suggested by organizations that have already completed at least one
upgrade to their initial ERP implementation [11] These are
Finding 1 Build your business case on new functionality
Finding 2 Treat the upgrade like a new project
Finding 3 Keep the team together
Finding 4 This is a business project not an IT project
Finding 5 Watch for hidden infrastructure costs
Finding 6 Un-customize customizations
Finding 7 Test like your organizationrsquos future success depends on it
Robert Davison (2002) raises a valid point through his article ldquoCultural Complications of
ERPrdquo discussed cultural misfits from a Singaporean perspective This implies that a one-
size-fits all or one-business-model- fits-all approach is unlikely to be successful As much
of ERP literature originates from and describes application contexts in North America
and to a lesser extent Western Europe where most ERP developers are located and
implementations have occurred Developers and consultants need to adapt their products
25
and services for different cultural markets Awareness of cultural differences and prefer-
ences will certainly improve the assessment of ERP suitability and any subsequent
implementation [27]
A group of researchers Siew Kien Sia May Tang Christina Soh Wai Fong Boh (2002)
from Information Management Research Center Nanyang Business School in their
research paper ldquoEnterprise Resource Planning (ERP) Systems as a Technology of Power
Empowerment or Panoptic Controlrdquo explores ERP as an ambivalent technology of
power According to them on the one hand it may tighten management control by
bringing a new level of panoptic visibility to organizational activities on the other hand
the embedded business model within the ERP may drive empowerment of employees and
greater control relaxation through the configuration of new process design This research
seeks to understand how the different forces play out in the context of ERP
implementation and to explore the implications for traditional power distribution in
organizations It adopted a mixed qualitative-quantitative methodology in an intensive
case study of a restructured hospital in Singapore A survey of 260 users was
administered supplemented by approximately 27 hours of individual interviews with 23
people Results reveal that although ERP can facilitate both empowerment and panoptic
control management has consciously resisted empowerment by working to reinstitute the
power lost through the ERP implementation On the other hand the new panoptic
visibility though partially unintended appears to have evolved naturally and was readily
learned and applied in the organization This study is significant in exposing the
likelihood of ERP implementation as a technology that perpetuates management power
At least in the context of the hospital studied it is yet another means of enlarging the
management authority for ldquototal controlrdquo Current articulations of ERP by practitio-
nersmanagement as empowering thus appear to be more theoretical than real This is
consistent with the perspective of critical theorists (eg Sewell amp Wilkinson 1992
Weber 1947 Tannenbaum 1968) that organizational life will become increasingly
rationalized and more controlled Thus the findings support the critical perspective in
exposing the likelihood of ERP implementation to perpetuate management power Being
a single case study the external generalization of the above analysis is limited Future
research should be sensitive to the formative context (eg the nature of the pre-existing
26
structure the Asian cultural context) and the distribution of authority among
organizational actors (eg presence of management intention) in an organization The
dynamics of panoptic control and empowerment during ERP implementation may be
different in organizational transformation contexts or in organizations with more fluid or
organic pre-existing structures It may also be interesting to follow the analysis of
panoptical and empowerment over an extended period to get a better understanding of
their continuously evolving dynamics [98]
Suprateek Sarker and Allen S Lee (2003) in the paper ldquoUsing a Case study to test the
role of three key social enablers in ERP implementationrdquo indicate that three key social
enablersmdashstrong and committed leadership open and honest communication and a
balanced and empowered implementation teammdashare necessary conditionsprecursors for
successful ERP implementation In a longitudinal positivist case study we find that
while all three enablers may contribute to ERP implementation success only strong and
committed leadership can be empirically established as a necessary condition This
presents a challenge to future ERP researchers for resolving apparent contradictions
between the existing literature and the results of our analysis and for investigating the
nature of interactions among the leadership communication and team characteristics
[93]
Srinivas Mantha (2007) in the article ldquoERPndashBusiness Processes with IP
Communicationsrdquo explained the fact that the key to new competitive capability is
envisioning the enterprise in terms of business wide relationships to improve user
experience across the network exploit knowledge and enhance and accelerate core
processes IP Communications is the catalyst for this capability It enhances the value of
the user experience exploits knowledge value and increases the value of business
processes [76]
Linda Askenaumls amp Alf Westelius (2000) from Linkoumlping University Sweden explore
a new vista of ERP through their literature ldquoFive Roles of an Information System A
Social Constructionist Approach to Analyzing the use of ERP Systemsrdquo This paper
presents a novel way of thinking about how information systems are used in
organizations Traditionally computerized information systems are viewed as objects In
contrast by viewing the information system as an actor our understanding of the
27
structure process increases The user being influenced by the ERP (Enterprise Resource
Planning) system and giving it an actor role thereby also confers agency on the ERP
system Through its very use it influences actions and thus the structure as well Based
on a case study of ERP use in an ABB company for over a decade five different roles
played by the ERP system were identified The ERP system acted as Bureaucrat
Manipulator Administrator and Consultant or was dismissed (Dismissed) in the sense
that intended users chose to avoid using them In conclusion the purpose of this approach
is not to ldquoanimaterdquo the information system to give it life or a mind of its own but rather
to make explicit the socially constructed roles conferred on the information system by
users and others who are affected by it On this basis it is possible to suggest how the
roles can help us opening up the new areas of exploration concerning the fruitful use of
information technology [70]
Jinyoul Lee Keng Siau and Soongoo (2003) conducted a study on the topic ldquoEnterprise
Integration with ERP and EAIrdquo They state that to survive and thrive in these hypercom-
petitive markets it is essential for a company to understand rapidly changing business
circumstances To rapidly respond to a changing environment an enterprise must
integrate business functions into a single system efficiently utilizing information
technology and share data with third-party vendors and customers While ERP forces the
adoption of standard business processes EAI enables enterprise integration over business
object levels ERP thereby supports a centralized business strategy while EAI naturally
accommodates decentralized business processes Lastly they observe the fact True
enterprise integration means both technical and behavioral integration It is not simply
integrating different systems applications or business processes dispersed across an
enterprise It is integrating structural changes different behaviors and various
information systems in an enterprise Enterprise integration is costly and time-
consuming thus management should be cautious in the design of the project
Organizations should not blindly rush into new technologies Top management should
first strive to understand their business and needs for enterprise integration and then
select a methodology of enterprise integration [68]
Wilhelm Scheer and Frank Habermann (2000) in ldquoMaking ERP a Successrdquo have used
business process models at an operational level of e-business to achieve positive results
28
They have talked of different scenarios in e-business As in Business-to-Business
applications such as Supply Chain Management the user has to connect the ERP systems
of all business partners This means he has to fight not only with the thousands of
parameters of a single ERP system but with twice as much (or even more) Another likely
scenario is that the business partners involved in an inter-organizational supply chain are
using ERP systems of different vendors In this case a business process model can be
firstly used to define the conceptual value chain Secondly the conceptual model that is
independent from a certain software vendor can be linked to the repositories of the
different ERP systems in order to customize an integrated software solution These
examples demonstrate that business process models play a major role for the success of e-
business Some ERP vendors like SAP have understood this development and are already
implementing their first model-based e-business applications [94]
Ash CG (2001) in An e-Commerce Model for Extending ERP Systems onto the
Internet An Australian Perspective stated that an established research framework of e-
Business change is used to identify the factors for success of this e-business project
within an ERP environment The results confirm that a successful project was found to
have facilitators in all components of the business framework including the change
environment and project management Further there is the implication that the least
successful e-business projects will have inhibitors in both dimensions especially in the
area of cultural readiness and change management In this case study conflict arose
between local project management initiatives versus a centralized autocratic global ERP
deployment This highlights the need to encourage the balancing of conflicting
organizational knowledge when contemplating the adoption of e-business solutions [7]
Huigang Liang Yajiong Xue William R Boulton Terry Anthony Byrd (2004) ldquoWhy
Western Vendors donrsquot dominate Chinarsquos ERP Marketrdquo Examined cases of failed ERP
system implementation in China and explaining the unique circumstances These foreign
ERP implementation failures emphasize the need to localize strategies even for the
global ERP leaders The general manager of a foreign ERP vendor explained ldquoOne
should understand nationrsquos history and its culture before one starts doing business with
foreign companiesrdquo The cases of failed implementation suggest global ERP vendors
require more than superior technology and experience Their ERP strategies must also
29
address the cultural differences affecting ERP implementations Strategies need to
overcome problems relating to language reporting formats and content cost control
capabilities frequent business process redesigns effective customer support and capable
consulting partners [69]
In the research findings ldquoAn Agency Theory Model of ERP Implementationrdquo Vedabrata
Basu Albert L Lederer (2004) develop a model of testable propositions for applying
agency theory to study the relationship between implementation consultants and client
organizations deploying the ERP systems and to consequently evaluate how the
relationship affects the implementation success Therefore management needs to know
the factors that drive successful ERP implementation a product of the continuous
interaction between the implementation consultants and client firms Agency theory has
been successfully used by different researchers to explain relationships between two
parties seeking a common outcome This paper develops a conceptual model with the
variables and relationships that may play a critical role in explaining the sources of that
frustration It offers a foundation for research that can extend the applicability of agency
theory can help clients and consultants manage their relationships during the
implementation process and thus help them enhance the probability of ERP systems
implementation success It may also be useful for managing other outsourced IS projects
that have implementation settings similar to ERP [10]
Christian Vogt (2002) ldquoIntractable ERP A Comprehensive Analysis of Failed Enterprise-
Resource ndash Planning Projectsrdquo makes an analysis of possible causes that led to the
disasters for ERP implementation failures and suggests software engineering processes
that help avoiding such outcomes The Model Based Architecting and Software
Engineering (MBASE) guidelines developed by Prof Barry Boehm and Daniel Port at
the Center for Software Engineering (CSE) at USC provide a base for these elaborations
for a long time SW Engineering experts have praised commercial-off-the-shelf (COTS)
packages as the panacea to complex software development Far from it the elaboration
in this survey shows that the deployment of COTS packages may be extremely intrinsic
one does not know whether some COTS software adheres to its interface specifications or
how deficient it is or how well its performance scales up as workload demand grows
The upshot is that COTS software will always be an alien element in the software to be
30
developed and it should be considered that way Dye-in-thendashwool COTS package ERP
systems exhibit plenty of dangers Only if appropriate risk management and enough time
for stepwise employment is provided for ERP system can be tamed [115]
In the research findings ldquoImplementing Best Practices in ERP for Small amp Medium
Enterprisesrdquo Rashmi Jha A K Saini and M N Hoda (2008) provides an interesting
insight into taking ERP implementation as a project and develops problem driven
approach to examine its complex phenomena The implementation process will be
divided into several components which will reflect the nature of ERP projects and makes
them distinctive from other systems design methods This paper also addresses critical
issues relating to developing entrepreneurship for sustainable development of small and
medium size enterprises(SMEs) for its future extensions and added benefits It may also
be useful for managing other outsourced Information System (IS) projects that have
implementation settings similar to ERP [53]
Saumyendu and Maya Daneva (2003) in ldquoLessons Learnt from Five Years of Experience
in ERP Requirements Engineeringrdquo summarizes one companyrsquos five years of experience
in making a generic ERP RE model a live process It rests on previously published ERP
RE process assessment results and reports on what we learnt with particular focus on
typical issues organizations face when adopting a standard model and solutions that can
be used to avoid those issues in the future Each of our lessons is described together with
a RE practice technical foundation for the practice and engineering techniques for the RE
practitioner The lessons were used to refine our Corporate Documentation Model a
process-focused and template-based ERP-architecture framework [40]
In ldquoResearch on Agent-Based Architecture of ERP For Small amp Medium-Size
Enterpriserdquo Rui-Xue Fu Zhan-Hong Xin and Can Chen (2007) suggests that with the
rapid development of information technology and the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward To address these problems a MAERP system architecture has been developed
in which the agents are classified into four types F-Agent for realizing an operation
application C-Agent for coordinating with other agents I-Agent for a communication
31
tool between the user and the MAERP system and T-Agent for performing specific tasks
and data collecting [35]
Xavier Franch and Juan Pablo Carvallo (2003) in the research paper Using Quality
Models in Software Package Selection found that the absence of structured descriptions
of quality features and user quality requirements makes selecting the right software
package difficult The authors propose a methodology for describing the quality features
of domain-specific software packages uniformly and comprehensively using ISOIEC
9126-1 quality standards as a framework [34]
In the paper study ldquoRevisiting ERP Systems Benefit Realizationrdquo Paul Hawking and
Andrew Stein (2004) maintains that many companies initially implemented their ERP
systems to solve Y2K and disparate systems issues These same companies are now
looking at a how to strategically leverages their investment in these systems through the
implementation ldquosecond waverdquo functionality This paper identifies the expected and
actual benefits of ldquosecond waverdquo implementations In addition it identifies barriers which
limit the benefit realization The findings reinforce that ERP implementations are people
focused projects which rely heavily on change management for success [45]
Hamid Nach and Albert Lejeune (2008) ldquoImplementing ERP in SMEs Towards an
Ontology Supporting Managerial Decisionsrdquo state that the purpose of this research
project is to consolidate and formalize as ontology on the basis of an extensive literature
review the key processes and skills required for successful implementation of ERP in an
SME Using the Proteacutegeacute software program the research identified and formalized 395
terms each of which has its own definition Exploitation of this ontology could take
multiple and varied forms including creation of a learning system an on-line cooperation
platform or a project management process mapping tool contributing to successful use of
ERP in SMEs [81]
While Gul Tekin Temur and Sitki Gozlu (2008) ldquoDetermination of Performance Criteria
for ERP Software Technologyrdquo mention that the main goal is to determine the
performance criteria for ERP software technology with respect to their sources Today
the companies are in interaction with many internal and external partners and have to face
many situations in various environments Especially many small and medium sized firms
utilize ERP software technology to plan their business interactions in the chain In this
32
study firstly a literature search is accomplished Then in order to reveal the performance
criteria a large-scale automotive company has been selected to conduct interviews with
managers Also the meeting reports of a few small and medium-sized companies have
been analyzed As a result of the analysis on findings the common views of the firms
about performance criteria are classified into four groups according to their sources such
as people technical managerial and economical The sub factors of these main criteria
are also taken into account in order to point out the origins of the criteria The results of
the study will provide insight to researchers and as well as to professionals in the practice
[108]
Maya Daneva (2004) in ERP Requirements Engineering Practice Lessons Learned
mentioned the fact that organizations implementing Enterprise Resource Planning (ERP)
systems have been increasingly adopting generic off-the-shelf requirements engineering
(RE) process models Yet little information exists about the challenges of making a
generic RE model a life process This article discusses why bringing an off-the-shelf
process in is not a sufficient foundation The author shares experiences acquired over the
past five years of eliciting modeling and validating requirements in ERP projects and
highlights typical issues and their solutions Among the keys to success are planning RE
model use in the clients context and installing processes to support key RE activities [25]
While the article ldquoRescuing Troubled Software Projects by Team Transformation A
Case Study with an ERP Projectrdquo by Kim Man Lui and Keith C C Chan (2008)
differentiates various reasons of ERP project failures It further states that many software
projects fail whether failure is measured in terms of budget schedule or some other
requirement The causes of such failures are many but are not always easily recognized
This is not the least due to the human dimension of corporate activities as spurious or
misdiagnosed issues in Enterprise Resource Planning (ERP) projects can take on a life of
their own and become a magnet for company politics This paper reports an industrial
case in which the senior management attempted to deal with a troubled ERP
implementation (SAP R3) in an international fast moving consumer goods (FMCG)
company during 2001 and 2002 This paper reflects this dimension as it uses original
emails and PowerPoint slides to recount a number of representative episodes in a troubled
but ultimately successful project At the heart of this success is the realization that
33
whereas it can be difficult and time-consuming to do root-cause analyses it is relatively
simple to identify problem owners In this case the senior management without IT
backgrounds turned around a failing project by reorganizing the team structure according
to process areas so that issues in each process area had one problem owner We
summarize the managementrsquos actions into a troubleshooting framework and in addition
suggest three actions for rescuing troubled projects keep the project manager but narrow
down the managerrsquos scope of responsibility to one or two process areas assign the right
people to be responsible for other process areas and have the General Manager chair the
ERP meetings [60]
In the PICMET 2006 Proceedings on ldquoOptimizing the Change Management of Enterprise
Resource Planning Systems Implementationsrdquo Onur Kerimoglu and Nuri BaUogluI
(2006) maintain that although Enterprise Resource Planning (ERP) systems are being
used widely all around the world they also carry out many problems as well as their
benefits These systems are well known for enhancing cross functional efficiency and
effectiveness through the integration of all information flowing throughout an
organization However during different project life cycle stages of ERP systems this
integration may not be provided because of the formulation of incompatibilities which
are greater than the optimum level among different parties like ERP system processes of
the organization and system users Within this study existing incompatibilities between
these parties are modeled respectively In common the model propose that the ERP
product mostly matching with the processes of the organization should be selected
processes of the organization should be changed for being compatible with the ERP
system and system users should be educated new qualified people should be hired etc
for making the system and processes more familiar to people Here the point is that all of
these are done for keeping incompatibilities between the ERP system processes and
people at minimum level because this minimalism will avoid optimization and utilization
problems This study not only handles problems of ERP from a newer perspective but
also provides insight to managers about managing the change and utilizing their resources
efficiently for adopting the ERP software across the organization [59]
Capaldo Guido and Rippa Pierluigi (2008) in ldquoA methodological proposal to assess the
feasibility of ERP Systems Implementation Strategiesrdquo stated that Continuous failures in
34
ERP systems implementation project are today the main challenge in the feasibility of
integrated information systems Failure can be determined by different factors both from
technological side and organizational side if not well managed In this paper we propose
a methodological approach based on technochange management in order to assess the
feasibility of ERP implementation strategy and reduce the risk of failure in terms of
project metrics and early operational metrics A case study in a big Italian
Telecommunication Firm will be presented [19]
ldquoCase Study of PLIVA Pharmaceuticals Inc - Aligning ERP System Implementation
with Business Process Changerdquo is very relevant and contemporary paper presented by
Vesna Bosilj Vuksic and Mario Spremic (2004) The main objective of this paper is to
present the impacts of information technology (IT) and enterprise resource planning
(ERP) systems in business process renovation projects A case study of business process
reengineering project and the implementation of the SAP software solution in PLIVA
(PLIVA pharmaceuticals Inc) are presented [116]
In ldquoKey Factors Driving the Success of Technology Adoption Case Examples of ERP
Adoptionrdquo Chonyacha Suebsin and Nathasit Gerdsri (2009) address the issues that
impact technology adoption within an organization Several factors influencing
technology adoption process are identified from the literature review Case examples of
the adoption of a new management technology Enterprise Resource Planning (ERP) are
presented to illustrate the situations of technology adoption in organizations From the
case examples the factors influencing technology adoption in organizations are
consistent with the factors identified from the literatures The further discussion also
reveals the additional determinants including the clarification of project scope individual
commitment and communication which should be taken into consideration when an
organization adopts a new technology [105]
Maya Daneva (2002) in her paper ldquoUsing Maturity Assessments to Understand the ERP
Requirements Engineering Processrdquo mentions that applying standard requirements
engineering (RE) processes is a major trend in todayrsquos Enterprise Resource Planning
(ERP) software engineering It emerged five years ago with the promise to provide a
mechanism helping ERP project organizations deliver their business requirements timely
and within budget This paper looks in depth at a standard ERP RE process and seeks
35
answers to four questions how well it is defined what are the risks associated with its
application in matureimmature organizations what are the essential practices that
contribute to its success and what are the costs of the process and the quality of the
delivered results The main motivation of this paper is to provide some practical advice
for using assessments to increase project teamsrsquo understanding of the ERP RE process
[26]
Fan JC and Kwoting Fang (2006) ldquoERP Implementation and Information Systems
Success A Test of DeLone and McLeans Modelrdquo present their research that develops
and tests a theoretical extension of DeLone and McLeans model of information system
(IS) success which explains personnel belief that contributes to users utilization of ERP
(enterprise resource planning) systems The extended model is tested using the structural
equation model (SEM) a survey of 202 end-users from ten Taiwanese enterprises that
has implemented Data Systems workflow ERP systems is conducted The theoretical
model proposed in this study provides insight into how the concept of useful perception is
incorporated into DeLone and McLean model and plays a critical mediated role to
influence system usage and its associated satisfaction The implications of these findings
for researchers and practitioners are discussed [32]
In the research findings ldquoManaging ERP Implementation Failure A Project Management
Perspectiverdquo Charlie C Chen Chuck C H Law and Samuel C Yang (2008) stated that
Information Technology (IT) projects are susceptible to changes in the business
environment and the increasing velocity of change in global business is challenging the
management of enterprise systems such as enterprise resource planning (ERP) At the
same time system success depends on the rigor of the project management processes
Scope creep poor risk management inadequate allocation of human resources over time
and vendor management are some common problems associated with the implementation
of an enterprise system These issues pose threats to the success of a large-scale software
project such as ERP This research adopts a case study approach to examine how poor
project management can imperil the implementation of an ERP system Having learned
the lessons from the failure of its first ERP implementation the company in this case
reengineered its project management practices to successfully carry out its second ERP
implementation Many critical project management factors contributed to the failure and
36
success of this companyrsquos ERP system This study explores and identifies critical
elements of project management that contributed to the success of the second ERP
implementation For those organizations adopting ERP the findings provide a roadmap
to follow in order to avoid making critical but often underestimated project management
mistakes [21]
Rafa Kouki Robert Pellerin and Diane Poulin (2008) in An Exploratory Study of ERP
Assimilation in Developing Countries The Case of Three Tunisian Companies assessed
that ERP systems could be considered as the most difficult systems to be assimilated
Very little research however has been realised to investigate the determinants of success
of the ERP assimilation process There has been also a dearth in research about ERP
projects in general and ERP post-implementation and assimilation in particular in
developing countries Using a case study methodology grounded in the diffusion of
innovation theory this study tries to understand the factors that could improve or
challenge the ERP systems assimilation process in three Tunisian companies Our
findings highlighted the importance of several factors such as top management support
strategic alignment IT expertise training communication organizational culture and
coercive pressures [62]
Ian Sommerville (2008) Construction by Configuration Challenges for Software
Engineering Research and Practice observed that past ten years have seen a radical shift
in business application software development Rather than developing software from
scratch using a conventional programming language the majority of commercial
software is now developed through reuse ndash the adaptation and configuration of existing
software systems to meet specific organizational requirements The most widespread
form of reuse is through the use of generic systems such as ERP and COTS systems that
are configured to meet specific organizational requirements In this paper he discussed
the implications of software construction by configuration (CbC) for software
engineering Based on his experience with systems for medical records and university
administration he highlighted some of the issues and problems that can arise in
construction by configuration he discussed problems that arise in CbC projects and
identify a number of challenges for research and practice to improve this approach to
software engineering [104]
37
SV Deshmukh and RR Lakhe (2008) in the research paper ldquoSix Sigma ndash An Innovative
Approach for Waste Reduction A Case Study of an Indian SMErdquo present a case study
aimed at reducing waste at an SME engaged in manufacturing of corrugated boxes The
Define Measure Analyze Improve Control strategy of Six Sigma methodology was
followed to identify probable causes for wastages After studying the system and
implementation of six sigma tools an overall 227 waste reduction was achieved
Individually out of a total seven processes 5 showed waste reduction in excess of 40
This reduction was statistically significant at Plt005 The study confirmed successful
implementation of six sigma to minimize waste generation and in terms saving in
manufacturing costs or increasing the bottom line [29]
While in ldquoERP Implementation Critical Success Factors - The Role and Impact of
Business Process Managementrdquo Yasar F Jarrar Abdullah Al-Mudimigh and Mohamed
Zairi (2000) investigate the role and impact of business process management in
successful ERP implementation The paper starts by defining business process
management ERP and the ERP critical success factors The impact of business process
management on successful ERP implementation is then assessed through looking at the
experiences of several organizations The paper concludes by highlighting best practices
for capitalizing on business process management for successful ERP implementation
[52]
M S Camara L Kermad and A El Mhamedi (2006) in the paper ldquoRisk Prediction in
ERP Projects Classification of Reengineered Business Processesrdquo maintain that
Companies have been implementing ERPs for almost ten years now and more the same
implementation problems continue to occur More and more ERP projectrsquos technological
challenges are accompanied by critical dimensions related to the management of the
transformational effects of these projects on the organization Indeed risk management in
this kind of project is not very structured and misses specific methods In this article they
propose a structured methodology for risk management particularly in the BPR (Business
Process Reengineering) sub-project of ERP implementation The final aim of our work is
to decease appreciably resistance to organizational change which poses the greatest
obstacle to business process reengineering efforts They propose to adapt OSR (Optimal
Set Reduction) a risk management method used in software development for the risk
38
management in ERP implementation They address specially the risk related to the
changes in enterprise processes in the ERP project To achieve this objective they
propose to define business process change metrics starting from business process
complexity metrics that exist in the literature [18]
ldquoExploration and Verification of Factors in the Front-end Stage of the ERP
Implementation Process Evidence from Case Study and Survey Researchrdquo Kun Shi and
Qiang Lu (2009) depict that ERP (Enterprise Resources Planning) is widely used to
improve business performance This paper explores how the factors associated with the
Front-end ERP Implementation Process (FEIP) affect the implementation outcome First
based on literature review a preliminary framework with 12 hypotheses is developed
Then Grounded Theory is applied for a case study to further extract and verify the factors
and sub-factors These factors are finally identified as strategic planning corporate
culture user characteristics organization-process-system maturity external expertise
engagementsupport and project preparation Furthermore the significance and
correlation of all the factors are detected by conducting survey research with SPSS as a
tool for analysis The study shows that the framework is valid and that among six three
factors have strong impact on the ERP implementation result whereas others are less
influential Implication is given and limitation is indicated at the end [63]
Huo Lingyu Liu Bingwu and Li Juntao (2009) in the paper ldquoAn ERP System Selection
Model Based on Fuzzy Grey TOPSIS for SMEsrdquo present a new fuzzy multi-criteria
decision making (FMCDM) approach which integrates the technique for order preference
by the similarity to ideal solution (TOPSIS) grey relation and fuzzy set theory for
enterprise resource planning (ERP) system evaluation and selection in the Small and
Medium-Sized Enterprises (SMEs) In this study the characteristic of the alternative with
respect to the criteria are represented in terms of a linguistic term set and the weight of
the criteria is described by triangular fuzzy numbers respectively According to the grey
theory and fuzzy set theory a closeness coefficient is defined to determine the ranking
order of all alternatives by calculating the grade of grey relation to the fuzzy positive-
ideal solution (FPIS) and fuzzy negative-ideal solution (FNIS) simultaneously Finally
an example is shown to highlight the procedure of the proposed method [48]
39
Gao Juntao Zhang Li Wang Zhiyao (2008) summarized their findings in ldquoDecision
Support for Handling Gaps between ERP functionalities and Organizational Needs A
Goal Reasoning based approachrdquo They found that in the process of selecting
commercial off-the-shelf (COTS) ERP systems it is inevitable to encounter gaps between
ERP software and organizational needs Gaps occur when COTS attributes do not exactly
match organizational needs and they make organizational users and software vendors in
the dilemma whether to adapt as-is business processes or to customize software
packages A decision support method for handling gaps is proposed in this paper Firstly
organizational goal-process models are built as the base for decision making Secondly
the idea of evidence theory is introduced into goal reasoning and a quantified algorithm is
proposed to evaluate the impacts of different business processes on high level goals
which are critical to make decision At last the risk is discussed to rank intervals which
specify the expected utilization of business processes [56]
Yvonne Dittrich and Sebastien Vaucouleur (2009) conducted a research on the topicrdquo
ERP Customization as Software Engineering Knowledge Sharing and Cooperationrdquo and
argue that Enterprise resource planning (ERP) systems must be configured and
customized to fit a specific company The authors discuss cooperation with regard to ERP
systems customization Enterprise resource planning (ERP) vendors provide multiple
configuration possibilities ranging from module selection to master data provision to
steer access rights for different users These configuration possibilities cover anticipated
variability If the customer requires adaptation beyond whatrsquos anticipated the source
code of the product must be adapted Customizations in this articlersquos context are source-
code-based adaptations of software products The size and complexity of customizations
range from simple report generation to developing independent add-ons that support
specific businessesmdashfor example solutions for flight carriers The size and lead time of
such projects can compare to a full-size software development project They present
empirical research on customization practices of ERP systems as an example of software
development based on customization of standard software They compared customization
with other development practices that are based on integrating existing code and results
underlined the need to rethink software engineering and programming methods and tools
[129]
40
In the paper study ldquoSignificance of Software Metrics in ERP Projectsrdquo S Parthasarathy
and N Anbazhagan (2006) narrate that ERP projects are a subclass of software projects
often accompanied by large-scale organizational changes One of the major reasons found
in the literature for the failure of ERP projects is the poor management of software
processes In this paper we propose a Software Metrics Plan (SNP) containing different
software metrics to manage software processes during ERP implementation Two
hypotheses have been formulated and tested using statistical techniques to validate the
SNP The statistical analysis of the collected data from an ERP project supports the two
hypotheses leading to the conclusion that the software metrics are momentous in ERP
projects [84]
Antony Marsh (2000) in the article ldquoThe implementation of Enterprise Resource Planning
systems in small and medium Manufacturing enterprises in south-east Queensland a case
study approachrdquo examines the implementation of ERP systems in smallmedium-sized
enterprises in South East Queensland Australia Nine case studies were conducted to
determine factors for success or failure in the implementations Key success factors
identified included cross-functional team approaches organizational experience of
similar scale IT or organizational change projects and lsquodeeprsquo understanding of the key
issues relating to ERP implementations Failure factors identified included top-down or
consultant driven implementations IT department driven implementations or
implementations where the EFV is seen as a quick technological fix to problems within
the operation of the firm rather than as a strategic investment [78]
Christian Doumlrner Sebastian Draxler Volkmar Pipek and Volker Wulf (2009) through
their study ldquoEnd Users at the Bazaar Designing Next-Generation Enterprise Resource
Planning Systemsrdquo propose that the bazaar metaphor has developed a lasting
popularity in software engineering especially as software architectures have evolved
from monoliths to service orientation Nevertheless the metaphor is limited because it
doesnt consider end users those who develop software for themselves Introducing such
an end user the prosumer to the bazaar not only suggests a changing division of work
in software development but also calls for different functionality and architectural
choices The authors evaluated changing software architectures from an end-user
development (EUD) perspective taking the case of enterprise resource planning (ERP)
41
systems as traditionally monolithically designed systems moving toward service
orientation On the basis of the studys findings which indicated problems with the
systems technical flexibility the authors developed a tool set for fostering EUD
activities Their new architecture for ERP systems enables end users to create their own
solutions [31]
Kenny KF Lee (2000) in ldquoThe Five Disciplines of ERP Software Implementationrdquo has
identified the critical factors in businesses which learn grow and succeed This paper
applies the central concepts of the book its five disciplines to the software business
specifically the management of software implementation Using the learning challenge
posed by the organization-wide implementation of Enterprise Resource Systems (Em) the
paper covers how EM software project leaders may manage themselves their teams
business vision and corporate culture and team members to create a survival machine
which can thrive in the current economic and technological climate [67]
Piet MA Ribbers amp Schoo (2000) in his paper ldquoDesigning Complex Software
Implementation Programsrdquo raises a central question that how one can design of Program
Management contributes to the success of complex software implementations
Incomplete goal specifications lack of communication and underestimation of project
complexity are signs of insufficient program and project management To avoid these
pitfalls he proposes ways that have worked well in recent complex multi-project ERP
implementations (programs) Answering the above question raises the problem of
adequately defining and measuring the level of complexity of an implementation
program A conceptual model was developed which identifies program management
factors that are proposed to have an impact on implementation success Fifteen cases
were studied to find support for the proposed framework [88]
ldquoDetecting Gaps between ERP Software and Organizational Needs A Semantic
Similarity Based Approachrdquo is very relevant and contemporary paper presented by Gao
Juntao and Zhang Li (2008) It depicts that Gap analysis is one of the most important
phases in implementation of enterprise resource planning (ERP) system In this paper an
approach is proposed to automatically detect gaps between software capacities and
organizational needs based on semantic similarity computation The approach takes two
business process models as input and one specifies software capacities and the other
42
describes organizational needs The output of it is a report of gaps As a matter of fact
the differences between application domain and software discipline make semantic
heterogeneity a key problem in gap detection therefore the technologies of semantic
similarity computing are employed to resolve ambiguity issues caused by the use of
synonyms or homonyms In particular the idea of similarity propagation is introduced to
pick out a mapping between corresponding activities and data and Hungarian algorithm
is employed to reduce its time complexity Then the similarity of whole models is
measured according to the minimal total cost of change operations Finally an
experiment is given to evaluate the method [36]
In the research publication ldquoERP System Adoption - Does the Size Matterrdquo Sanna
Laukkanen Sami Sarpola and Petri Hallikainen (2005) investigate the relationship of
enterprise size to the constraints and objectives of ERP systems adoption The survey
data based on the responses of 44 companies indicates that significant differences exist
between small medium-sized and large enterprises in ERP system adoption Specifically
the findings suggest that small companies experience more knowledge constraints than
their larger counterparts in ERP adoption Further while being the most prevalent
objective for ERP adoption in all the company groups business development through
ERP adoption is considered especially important by the medium-sized and large
enterprises Finally the findings of the study suggest that instead of considering small
and medium-sized enterprises as one homogenous group the differences between these
two groups of companies should be acknowledged in the future research [65]
In their paper ldquoModel Based on CSCWrdquo Wedian Liang XuFen Zhenkun Li Rong Xiao
JunFeng Hu (2005) summarise their finding They feel that Software testing is an
important component of the software engineering and an important link that the software
development quality is guaranteed Using the reasonable model for software testing can
reduce the expenses of testing in the developing activity in the course of testing thus cut
down the cost of software development In this paper we put forward a model for
software testing bused on CSCW technology that run through each stages of software
development cycle If can find the mistake in the software as soon as possible has
shorten the time taken for testing in the course of the development of software testing
43
effectively Finally we applied the model to the testing project which develops ERP
system and then receive the ideal result [118]
In their paper ldquoThe Research and Development of IMIS for Small and Medium-sized
Printing Enterpriserdquo Taolin Ma Xiaoming Chen Yansong Sun Xiurong Li (2009)
analyzed the fact that the basic management thought of inventory management
information system (IMIS) was established by analyzing the inventory management
theory of modern enterprise In this system which using the architecture of CS the stores
were classified by ABC management method the inventory control was completed by
setting up the safety stock and the largest stock the analysis and design of IMIS were
finished This IMIS was developed to meet the practical requirements of small and
medium-sized printing enterprise in our country It can not only be used as the important
measure of the informationized construction for small and medium sized printing
enterprise but also used as a subsystem of enterprise ERP system IMIS could improve
enterprise management level realize rapid transformation of enterprise and finally
enhance the competitiveness of enterprise in market economy [106]
Jiangao Deng and Yijie Bian (2008) in the research paper ldquoConstructing a Risk
Management Mechanism Model of ERP Projectrdquo mention that in the process of
information project implementation of manufacturing enterprises there are many risks to
set up a set of risk management mechanism is guaranteed for them to succeed in ERP
implementation Firstly based on the analysis of ERP project implementation of China
the paper introduced the risk management methodology systems and the relative model
which includes three main steps identifying risk evaluating risk and controlling risk
After that on the aspects of decision implementation and application stages of
manufacturing ERP project life cycle the paper discussed risks of each stage and put
forward a two-dimension matrix risk management strategy Then a mechanism model of
ERP project risk management is constructed which shows that information risk control
strategies of the last two stages not only depend on resources of these stages but also
have a diverse relationship with the last stage Finally according to the successful
implementation of an enterprisersquos ERP project the paper carried out an effective case
application analysis of risk management mechanism model The lack of improvement in
usersrsquo ERP skill levels and the shortage in documenting the rationale for business rules
44
and configuration decisions were among the critical issues of the post-implementation
stage Indeed all of their respondents stressed the importance of refreshing the usersrsquo
knowledge about the system [28]
Saumyendu Ghosh (2003) in ldquoGlobal Implementation of ERP Software ndash Critical Success
Factors on Upgrading Technical Infrastructurerdquo discusses that implementing an
Enterprise Resource planning (ERP) software in a global environment executive
sponsors face two key challenges While business processes are to be re-engineered to
align with the ERP software best practices technical architecture and infrastructure needs
to be in place globally as per specifications of the packaged software In the legacy
environment different countries or different business units use different systems based
on local standards supported by local resources In the new ERP world globally all the
countries must conform to same technical infrastructure Technical managers face
multiple critical issues implementing a global solution Most of the ERP software is
developed in technically advanced countries standards are often too high for under
developed or developing countries In an effort to bring the global organization to a
common platform different countries need different levels of upgrades In this paper the
authors review key technical issues faced is a global upgrade process to support a global
ERP implementation and how to resolve those We conclude although technical
infrastructure and business process reengineering both are equally important and each
implementation is unique but following some simple steps it is easy to prioritize each
ones during different phases of the project Also time lines of two sub-projects must
converge after initial phase and must follow a common plan for the project to be
successful Multiple scenarios are described to facilitate the process He concludes
although technical infrastructure and business process reengineering both are equally
important and each implementation is unique but following some simple steps it is easy
to prioritize each ones during different phases of the project Also time lines of two
subprojects must converge after initial phase and must follow a common plan for the
project to be successful Multiple scenarios are described to facilitate the process [38]
Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008) ldquoDevelopment and
Implementation of ERPCRM System Based on Open Source Software to Small and
Medium-sized Enterprise in Chinardquo analysed the fact that E-commerce and the
45
development of modern enterprise management raise a number of challenges in the
process of informatization of small and medium-sized enterprises (SME) in china To
address this they present an approach in which the informatization is enhanced by using
Open Source Software with customized policies We analyses the main
informationization obstacles of SME in china bring forward that the lack of bankroll
talents cost and management etc are the key problems to informationization of SME
Furthermore they have developed a textile foreign trade ERP CRM system based on
Open Source Software for the local textile distributor of china integrating financial
distribution sales and service processes given the implement method of overall planning
step-by-step implementation key breakthrough and efficiency guiding In the end we
compare the typical Open Source Software and traditional commercial software point
out the advantages of informatization based Open Source Software to SME in china and
the development trend of Open Source Software for enterprise application [132]
ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information Systems ndash a
Multi-disciplinary Method for ERP System Requirements Engineeringrdquo by Inka Vilpola
Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that ERP systems are in
most cases off-the-shelf software packages and large by their size and complex by their
structure Small and medium-sized enterprises (SMEs) require flexibility of the ERP
system because of their individual operational processes Therefore it is crucial to select
and implement an ERP system that fits the requirements of the intended target processes
To support the requirements engineering of ERP systems we have developed Customer-
Centered ERP Implementation (C-CEI) method The method introduces a multi-
disciplinary approach to the ERP project and provides in-depth understanding of the
companylsquos processes and context of use Using C-CEI method decreases the risk of
SMEs to select an inappropriate system and improves the system acceptance by the
customer companyrsquos employees In this paper we present the method and illustrate it by
three SME case studies [114]
Saumyendu Ghosh (2000) in ldquoChallenges on a global implementation of ERP softwarerdquo
discusses that some of the unique challenges in ERP implementation are satisfying
multiple countries statutory requirements and reporting to the corporate head quarters
from one installation of the software conflicting interests between different business
46
entities lack of experienced implementators in all the countries and eminent users of
multinational advantages He discusses different aspects of these challenges in detail and
point out that ERP software can provide only one solution for a particular business
process unless workarounds are available from experienced implementation Different
counties adopt different reporting and accounting practices and therefore an ERP
implementation cannot solve all problems that global corporation may have multiple
countries in the scope of the project due to absence of standard global processes across
the organization He concludes that the most important critical success factor of these
international implementations are how quickly these corporations can reengineer existing
business process to adopt best practices of using an ERP system [38]
Dong Cheng Feiyan Deng Hongtao Li (2006) ldquoCritical Factors for Successful
Implementation of ERP in Chinardquo in their study propound a theoretical model for
successful implementation of Enterprise Resource Planning (ERP) under Chinarsquos
environment and the authors analyze the model empirically through structural equation
modeling The authors find that strategically IT planning abilities leadershiprsquos support
and the skills of IT section business processing abilities learning abilities and change
management abilities has a significant positive impact on successful ERP implementation
[22]
Parijat Upadhyay (2008) in his research studies ldquoAn explorative study to identify the
Critical Success Factors for ERP Implementation in Indian small and medium scale
enterprisesrdquo explores the existing literature on ERP implementation issues in context to
small and medium scale enterprises and attempts a compilation of the factors that assume
great significance while implementing ERP in SMErsquos Given the nature and magnitude of
the problems in encountered in implementing an ERP project this study would attempt to
identify the critical success factors(CSFrsquos) for a successful implementation of an ERP
project since it calls for substantial effort on the part of all the stake holders involved to
make the implementation a success [111]
ldquoThe ERP Implementation of SME in Chinardquo Yuanqiang Xia Peter Lok and Song Yang
(2009) presented the fact that ERP implementing for small and middle size enterprise
(SME) is different from the large one Based on the analysis on the character of ERP
marketing and SMEs of China 6 critical success factors are recommended The research
47
suggests that the top management support is most important to ERP implement in SME
of China in which paternalism prevails Database of management and capital are main
obstacles ERP 1 or ERP 2 fits to demand of SME high power project team has
tremendous significance in the situation of absence of IT engineer for SME education
and training is helpful to successfully ERP implementing The results service as better
understanding the ERP implementation of SME in China and gaining the good
performance of ERP implementation [126]
Yan Xu and Chung-Hsing Yeh (2009) in the article ldquoStrategic Management of
Performance Measures for an ERP Implementation Project Teamrdquo present a new
evaluation model for managing performance measures of an enterprise resource planning
(ERP) implementation project team in an organization With the performance measures
classified into four strategic perspectives of the balanced scorecard the evaluation model
enables the goal alignment between the project team and the organization A new
algorithm using the concept of multi-attribute decision making is developed to obtain the
relative importance value for each performance measure for its contribution to the
strategic goals of the organization The higher the importance values of a performance
measure the more important the role it plays in determining the responsibilities of the
corresponding project team player Understanding the importance of the key performance
measures will help an organization well-prepare to launch a project and have the project
being organized in advance A case of an ERP implementation project in an integrated
manufacturing corporation is presented to demonstrate the applicability of the evaluation
model and its effective management of the performance measures [124]
Zhang Yanhong (2009) in his research paper ldquoERP Implementation Process Analysis
Based on the Key Success Factorsrdquo describes that Enterprise Resource Planning (ERP) is
an amalgamation of a companys information systems designed to bind more closely a
variety of company functions including human resources inventories and financials
while simultaneously linking the company to customers and vendors This thesis is based
on the theory of product life cycle and the process of ERP is divided into four phase
planning implementation stabilization and improvement Critical success factors in each
phase are identified by paper research case study and investigation An ERP
implementation process model based on the critical Success factors (CSFs) is proposed in
48
the paper The thesis analyzes the global planning stages and business process rebuilding
in the process of QIHE pharmaceuticals ERP Improvement on management and
financing before and after ERP implementation are contrasted and we come to the
following conclusions (1) The CSFs in the planning phase is comprehensive
investigation and evaluation (2) The CSFs in the implementation phase is effective
project management team (3) The CSFs in the stabilization phase is appropriate
information management system (4) The CSFs in the improvement phase is change on
demand and continue to innovate (5) The CSFs throughout the product life cycle is
business process rebuilding [131]
Van Stijn E and Wensley A (2001) ldquoOrganizational memory and the completeness of
process modeling in ERP systems some concerns methods and directions for future
researchrdquo mentioned that Enterprise resource planning (ERP) systems not only have a
broad functional scope promising to support many different business processes they also
embed many different aspects of the companyrsquos organizational memory Disparities can
exist between those memory contents in the ERP system and related contents in other
memory media such as individualsrsquo memories and the organizational structure and
culture It is our contention that in general these disparities or memory mismatches as
we will refer to them lead to under-performance of ERP systems In this paper they focus
on potential memory mismatches that may arise with respect to the embedding of process
knowledge within ERP packages Packages such as SAP provide a varied and rich
environment for process modeling However they suspect that there are still many
instances where process knowledge is either lost or represented in different ways in
different parts of the organization The overall thrust of the paper is to identify a variety
of concerns intriguing questions and avenues for future research [112]
Eric Kimberling (2008) in his article ldquo The Role of Lean Six Sigma in ERPrdquo insisted
that there are a number of things to consider when considering a new ERP system like six
sigma lean manufacturing or other business transformation projects that has the capacity
to measure reducing waste managing change well continuous improvement etc [133]
William H Gaw (2010) ldquoEight Basics of Lean Six Sigma for Manufacturing Firmsrdquo In
the efforts to draw closer to customers many manufacturers have lost focus on what
should be a companyrsquos primary success factor ndash profitable growth In todayrsquos competitive
49
manufacturing environment it takes more than quick fixes outsourcing and downsizing
for companies to consistently achieve their growth and profit objectives While these
options may yield temporary financial relief they will not lead the way to long-term
growth and profitability For companies to grow and consistently exceed bottom line
expectations they need to get lean And to get lean they should master eight basics of
Lean Six Sigma in the form of information integrity performance measurement
sequential production point-of-use logistic cycle time management production linearity
and resource planning and customer satisfaction [134]
Brehm L and Markus M L (2000) in The Divided Software Life Cycle of ERP
Packages mentioned that traditional information system life cycle (SLC) focuses on the
activities performed by company developing implementing and maintaining software for
its own internal use Enterprise resource planning (ERP) software packages change the
SLC in several important ways This paper presents an extension of the SLC model for
ERP packages The lsquodivided software life cyclersquo (DSLC) model features an equal
emphasis on the activities performed by the ERP adopting company and the ERP vendor
[15]
Alavi M and Carlson P (1992) A Review of MIS research and disciplinary
development The perceived status of journals in which MIS research is published is an
important issue to academics The number of IS-related journals has increased through
the years yet it is not obvious which are the ldquoleadingrdquo journals or what criteria should be
used to determine this This article addresses these issues by (1) evaluating and
analyzing previous studies in which MIS related journals have been ranked (2)
determining top-ranked journals and placing them into two levels or tiers based on
previous studies and (3) establishing a profile through a systematic analysis of the nine
journals in the first tier This study identified 17 highly ranked journals for publication
Nine were placed in the first tier and eight in the second tier In addition to IS-specific
journals publications included management science computer science and business-
oriented journals The individual strategies for improving software productivity are
identified Issues related to software costs and controlling them are examined and
discussed It is pointed out that a good framework of techniques exists for controlling
software budgets schedules and work completed but that a great deal of further progress
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 10
21
Critical selection factors unique and realized benefits different for each business
SME having limited resources (money people time) with which to evaluate and
implement ERP
Ongoing costs
Overall success
In the paper study ldquoERP Training Strategies Conceptual Training and the Formation of
Accurate Mental Modelsrdquo Tony Coulson Conrad Shayo CE Tapie Rohm Lorne
Olfman (2003) examined a major determinant of successful ERP implementation end-
user training The study finds that a workflow conceptual advanced organizer strategy
(TCT group) improves end-userrsquos mental model accuracy over time as demonstrated by
the subjectslsquoability to recall ERP specific concepts Results indicate that a conceptual
advance organizer is an important component of ERP training and should be incorporated
into an organizationlsquos training strategy In general the study supported the framework
and found that by adding a tool conceptual knowledge-level to the training the end-users
developed more accurate mental models By using the knowledge-level framework and
incorporating tool conceptual knowledge into an organizationlsquos training design
organizations may see an improvement in overall ERP implementation results For
example because ERP training is very expensive those within an organization that attend
ERP training are often asked to train others in the organization when they return This
study shows that adding a tool conceptual knowledge-level to their training improves
their ability to recall and re-articulate their understanding of the system By building the
knowledge-levels that enable more effective understanding and communication of
concepts learned could be an invaluable asset to any companylsquos training and
implementation strategy [24]
ldquoEnterprise Resource Planning Challenges for Small and midsize Business (SMBs)rdquo
Analyst Katherine Jones (2004) of Aberdeen suggests that small and midsize businesses
are primarily driven by operating cost pressures perceived as the biggest challenge and
their key challenges are
1 Insufficient funding for corporate strategies and initiatives
2 Lack of clearly defined corporate vision and goals
3 Ineffective communication of corporate strategies and initiatives
22
4 Metrics that do not sufficiently provide incentives employees to supportachieve
corporate goals
5 Inability to accurately determine and plan for customer demand
As the immense variability in how SMB companies conduct business still predominates
the SMBs see technology as the enablers of their strategies Specifically cited are the
increased availability of advanced analytics decision support and reporting tools as well
as the availability of process-specific business applications [55]
Christina Soh Sia Siew Kien and Joanne Tay-Yap (2004) through their study on the
subject ldquoCultural Fits amp Misfits Is ERP a universal Solutionrdquo Present early findings
from a larger ongoing study The typology of misfits and examples are drawn from the
review of implementation documents and supplemented by interviews with key project
team members from one hospital [102]
In their White Paper ldquoERP Selection ndash Right Tracking Enterprise Change ITSg-GCPrdquo at
TCS Dr Joginder Singh Lamba amp Swapnil Kitcha (2007) analyzed the fact that
business changes in the form of portfolio expansion structure decentralization and supply
chain integration drive new investments in ERP Besides the need for more functional
areas within the IT landscape (BI CRM PLM and Product Information Management)
demands new interfaces with ERP backbone Heterogeneous compatibility and varied
maturity across modules elicit interest in best of breed solutions in ERP [64]
In ldquoFuture of ERP systems and Microsoft Dynamics Learn about XML and Web
servicesrdquo McKie (2008) discusses what sort of requirements XML and web services put
on business applications He further explains ERP systems need to be able to create
XML schemas (data specifications) and they need to be able to import and export data in
XML documents The more data an ERP user needs to share with business partners the
more important is to have these capabilities In addition to XML McKie identifies a
second type of Web service that offers functionality rather than data is expected to
emerge in the form of business partner integration analytics and alerts [79]
David Caruso (2005) Senior Vice President Industry Research AMR in his article
ldquoProcess Productivity and Profit The SMB Executiversquos Framework for ERP
Investmentrdquo narrated that SMBs which are not aggressively developing an effective ERP
strategy will be at some disadvantage to their peers by 2006 Forward-thinking executives
23
will consider strategic business capabilities as the drivers for enterprise resource planning
(ERP) investment justification In a 2005 study that AMR Research conducted with over
550 companies regarding their ERP investment plans and found that only 27 of small
companies (fewer than 500 employees) are currently using ERP This is in sharp contrast
to the 57 of large companies (500 to 2499 employees) and 70 of enterprise-sized
companies (2500-plus employees) that have operational ERP systems Given this data it
is not surprising that almost 50 of the respondents interviewed will be making
substantial changes to their existing ERP systems over the next 12 to 18 months The
challenge for executives charged with the decision is establishing a powerful context for
making the ERP investment [20] When considering the ERP investment decision from
the perspective of the executive suite there are four overarching drivers that frame what
executives need to consider
1 Productivitymdashgetting the most from your valuable employee assets
2 Connectivitymdashworking collaboratively with your key customers and suppliers
3 Business insightmdashImproving the speed and quality of decision making
4 Total cost of ownershipmdashreducing the cost of owning and operating IT systems
Yong Jean John amp Ki-Henry Yim (2001) in an article ldquoA study on an Environment of
ERP Introductionrdquo includes the role of ERP perception of ERP value ERP plan
direction and also argues various checkpoints as a preview of ERP introduction In
conclusion they list checkpoints in sequence based on the mean values that provides
indications of the relative importance As a result the most important checkpoints were
Performance of Introduction Main Reference Sites Availability of Current Resources
Easiness of Introduction Operation System Past Records of Supply Market Share and
Vendor Size The results shown in this paper has shown strong implications for ERP
vendors Vendor size and market share received the least attention amongs all the
checkpoints described in the study [125]
One step forward IQMS Executive White Paper (2007) ldquoHow Successful ERP Selections
are Made ldquo this paper is not just about want and donrsquot want from the various people in
the organization It suggests that it should be a long lasting purchase that provides the
users the feeling of a partnership As the user is not just buying software they are also
buying into a vendor and their company culture The combination of software capability
24
and vendor credibility should be a major purchasing factor There is more to a lasting
ERP purchase than that There are several platform thoughts on technology how many
vendors are included the demonstration the always useful buzz words with all the hype
on service oriented architecture (SOA) best of breed lean manufacturing and all the
other phrases floating in the industry today implementation time customer referrals
customer retention look at your company objectively etc [49]
Robert C Beatty amp Craig D Williams (2006) in ldquoBest Practices for Successfully
Implementing an ERP Upgraderdquo maintain that an ERP upgrade is deceptively complex
and can be daunting especially for organizations ignorant of the massive effort required
to do it correctly One study of mid-size to large companies conducted by AMR Research
found that 67 of these companies are implementing some form of ERP while another
21 are evaluating potential ERP systems solutions As a growing number of companies
adopt ERP systems ERP systems implementation and upgrades are identified as one of
the top five IT priorities among global CIOs according to independent surveys conducted
by Morgan Stanley and Deloitte amp Touche IDG Research Services Group In
conclusion this article provides organizations with a list of the eight most common
recommendations suggested by organizations that have already completed at least one
upgrade to their initial ERP implementation [11] These are
Finding 1 Build your business case on new functionality
Finding 2 Treat the upgrade like a new project
Finding 3 Keep the team together
Finding 4 This is a business project not an IT project
Finding 5 Watch for hidden infrastructure costs
Finding 6 Un-customize customizations
Finding 7 Test like your organizationrsquos future success depends on it
Robert Davison (2002) raises a valid point through his article ldquoCultural Complications of
ERPrdquo discussed cultural misfits from a Singaporean perspective This implies that a one-
size-fits all or one-business-model- fits-all approach is unlikely to be successful As much
of ERP literature originates from and describes application contexts in North America
and to a lesser extent Western Europe where most ERP developers are located and
implementations have occurred Developers and consultants need to adapt their products
25
and services for different cultural markets Awareness of cultural differences and prefer-
ences will certainly improve the assessment of ERP suitability and any subsequent
implementation [27]
A group of researchers Siew Kien Sia May Tang Christina Soh Wai Fong Boh (2002)
from Information Management Research Center Nanyang Business School in their
research paper ldquoEnterprise Resource Planning (ERP) Systems as a Technology of Power
Empowerment or Panoptic Controlrdquo explores ERP as an ambivalent technology of
power According to them on the one hand it may tighten management control by
bringing a new level of panoptic visibility to organizational activities on the other hand
the embedded business model within the ERP may drive empowerment of employees and
greater control relaxation through the configuration of new process design This research
seeks to understand how the different forces play out in the context of ERP
implementation and to explore the implications for traditional power distribution in
organizations It adopted a mixed qualitative-quantitative methodology in an intensive
case study of a restructured hospital in Singapore A survey of 260 users was
administered supplemented by approximately 27 hours of individual interviews with 23
people Results reveal that although ERP can facilitate both empowerment and panoptic
control management has consciously resisted empowerment by working to reinstitute the
power lost through the ERP implementation On the other hand the new panoptic
visibility though partially unintended appears to have evolved naturally and was readily
learned and applied in the organization This study is significant in exposing the
likelihood of ERP implementation as a technology that perpetuates management power
At least in the context of the hospital studied it is yet another means of enlarging the
management authority for ldquototal controlrdquo Current articulations of ERP by practitio-
nersmanagement as empowering thus appear to be more theoretical than real This is
consistent with the perspective of critical theorists (eg Sewell amp Wilkinson 1992
Weber 1947 Tannenbaum 1968) that organizational life will become increasingly
rationalized and more controlled Thus the findings support the critical perspective in
exposing the likelihood of ERP implementation to perpetuate management power Being
a single case study the external generalization of the above analysis is limited Future
research should be sensitive to the formative context (eg the nature of the pre-existing
26
structure the Asian cultural context) and the distribution of authority among
organizational actors (eg presence of management intention) in an organization The
dynamics of panoptic control and empowerment during ERP implementation may be
different in organizational transformation contexts or in organizations with more fluid or
organic pre-existing structures It may also be interesting to follow the analysis of
panoptical and empowerment over an extended period to get a better understanding of
their continuously evolving dynamics [98]
Suprateek Sarker and Allen S Lee (2003) in the paper ldquoUsing a Case study to test the
role of three key social enablers in ERP implementationrdquo indicate that three key social
enablersmdashstrong and committed leadership open and honest communication and a
balanced and empowered implementation teammdashare necessary conditionsprecursors for
successful ERP implementation In a longitudinal positivist case study we find that
while all three enablers may contribute to ERP implementation success only strong and
committed leadership can be empirically established as a necessary condition This
presents a challenge to future ERP researchers for resolving apparent contradictions
between the existing literature and the results of our analysis and for investigating the
nature of interactions among the leadership communication and team characteristics
[93]
Srinivas Mantha (2007) in the article ldquoERPndashBusiness Processes with IP
Communicationsrdquo explained the fact that the key to new competitive capability is
envisioning the enterprise in terms of business wide relationships to improve user
experience across the network exploit knowledge and enhance and accelerate core
processes IP Communications is the catalyst for this capability It enhances the value of
the user experience exploits knowledge value and increases the value of business
processes [76]
Linda Askenaumls amp Alf Westelius (2000) from Linkoumlping University Sweden explore
a new vista of ERP through their literature ldquoFive Roles of an Information System A
Social Constructionist Approach to Analyzing the use of ERP Systemsrdquo This paper
presents a novel way of thinking about how information systems are used in
organizations Traditionally computerized information systems are viewed as objects In
contrast by viewing the information system as an actor our understanding of the
27
structure process increases The user being influenced by the ERP (Enterprise Resource
Planning) system and giving it an actor role thereby also confers agency on the ERP
system Through its very use it influences actions and thus the structure as well Based
on a case study of ERP use in an ABB company for over a decade five different roles
played by the ERP system were identified The ERP system acted as Bureaucrat
Manipulator Administrator and Consultant or was dismissed (Dismissed) in the sense
that intended users chose to avoid using them In conclusion the purpose of this approach
is not to ldquoanimaterdquo the information system to give it life or a mind of its own but rather
to make explicit the socially constructed roles conferred on the information system by
users and others who are affected by it On this basis it is possible to suggest how the
roles can help us opening up the new areas of exploration concerning the fruitful use of
information technology [70]
Jinyoul Lee Keng Siau and Soongoo (2003) conducted a study on the topic ldquoEnterprise
Integration with ERP and EAIrdquo They state that to survive and thrive in these hypercom-
petitive markets it is essential for a company to understand rapidly changing business
circumstances To rapidly respond to a changing environment an enterprise must
integrate business functions into a single system efficiently utilizing information
technology and share data with third-party vendors and customers While ERP forces the
adoption of standard business processes EAI enables enterprise integration over business
object levels ERP thereby supports a centralized business strategy while EAI naturally
accommodates decentralized business processes Lastly they observe the fact True
enterprise integration means both technical and behavioral integration It is not simply
integrating different systems applications or business processes dispersed across an
enterprise It is integrating structural changes different behaviors and various
information systems in an enterprise Enterprise integration is costly and time-
consuming thus management should be cautious in the design of the project
Organizations should not blindly rush into new technologies Top management should
first strive to understand their business and needs for enterprise integration and then
select a methodology of enterprise integration [68]
Wilhelm Scheer and Frank Habermann (2000) in ldquoMaking ERP a Successrdquo have used
business process models at an operational level of e-business to achieve positive results
28
They have talked of different scenarios in e-business As in Business-to-Business
applications such as Supply Chain Management the user has to connect the ERP systems
of all business partners This means he has to fight not only with the thousands of
parameters of a single ERP system but with twice as much (or even more) Another likely
scenario is that the business partners involved in an inter-organizational supply chain are
using ERP systems of different vendors In this case a business process model can be
firstly used to define the conceptual value chain Secondly the conceptual model that is
independent from a certain software vendor can be linked to the repositories of the
different ERP systems in order to customize an integrated software solution These
examples demonstrate that business process models play a major role for the success of e-
business Some ERP vendors like SAP have understood this development and are already
implementing their first model-based e-business applications [94]
Ash CG (2001) in An e-Commerce Model for Extending ERP Systems onto the
Internet An Australian Perspective stated that an established research framework of e-
Business change is used to identify the factors for success of this e-business project
within an ERP environment The results confirm that a successful project was found to
have facilitators in all components of the business framework including the change
environment and project management Further there is the implication that the least
successful e-business projects will have inhibitors in both dimensions especially in the
area of cultural readiness and change management In this case study conflict arose
between local project management initiatives versus a centralized autocratic global ERP
deployment This highlights the need to encourage the balancing of conflicting
organizational knowledge when contemplating the adoption of e-business solutions [7]
Huigang Liang Yajiong Xue William R Boulton Terry Anthony Byrd (2004) ldquoWhy
Western Vendors donrsquot dominate Chinarsquos ERP Marketrdquo Examined cases of failed ERP
system implementation in China and explaining the unique circumstances These foreign
ERP implementation failures emphasize the need to localize strategies even for the
global ERP leaders The general manager of a foreign ERP vendor explained ldquoOne
should understand nationrsquos history and its culture before one starts doing business with
foreign companiesrdquo The cases of failed implementation suggest global ERP vendors
require more than superior technology and experience Their ERP strategies must also
29
address the cultural differences affecting ERP implementations Strategies need to
overcome problems relating to language reporting formats and content cost control
capabilities frequent business process redesigns effective customer support and capable
consulting partners [69]
In the research findings ldquoAn Agency Theory Model of ERP Implementationrdquo Vedabrata
Basu Albert L Lederer (2004) develop a model of testable propositions for applying
agency theory to study the relationship between implementation consultants and client
organizations deploying the ERP systems and to consequently evaluate how the
relationship affects the implementation success Therefore management needs to know
the factors that drive successful ERP implementation a product of the continuous
interaction between the implementation consultants and client firms Agency theory has
been successfully used by different researchers to explain relationships between two
parties seeking a common outcome This paper develops a conceptual model with the
variables and relationships that may play a critical role in explaining the sources of that
frustration It offers a foundation for research that can extend the applicability of agency
theory can help clients and consultants manage their relationships during the
implementation process and thus help them enhance the probability of ERP systems
implementation success It may also be useful for managing other outsourced IS projects
that have implementation settings similar to ERP [10]
Christian Vogt (2002) ldquoIntractable ERP A Comprehensive Analysis of Failed Enterprise-
Resource ndash Planning Projectsrdquo makes an analysis of possible causes that led to the
disasters for ERP implementation failures and suggests software engineering processes
that help avoiding such outcomes The Model Based Architecting and Software
Engineering (MBASE) guidelines developed by Prof Barry Boehm and Daniel Port at
the Center for Software Engineering (CSE) at USC provide a base for these elaborations
for a long time SW Engineering experts have praised commercial-off-the-shelf (COTS)
packages as the panacea to complex software development Far from it the elaboration
in this survey shows that the deployment of COTS packages may be extremely intrinsic
one does not know whether some COTS software adheres to its interface specifications or
how deficient it is or how well its performance scales up as workload demand grows
The upshot is that COTS software will always be an alien element in the software to be
30
developed and it should be considered that way Dye-in-thendashwool COTS package ERP
systems exhibit plenty of dangers Only if appropriate risk management and enough time
for stepwise employment is provided for ERP system can be tamed [115]
In the research findings ldquoImplementing Best Practices in ERP for Small amp Medium
Enterprisesrdquo Rashmi Jha A K Saini and M N Hoda (2008) provides an interesting
insight into taking ERP implementation as a project and develops problem driven
approach to examine its complex phenomena The implementation process will be
divided into several components which will reflect the nature of ERP projects and makes
them distinctive from other systems design methods This paper also addresses critical
issues relating to developing entrepreneurship for sustainable development of small and
medium size enterprises(SMEs) for its future extensions and added benefits It may also
be useful for managing other outsourced Information System (IS) projects that have
implementation settings similar to ERP [53]
Saumyendu and Maya Daneva (2003) in ldquoLessons Learnt from Five Years of Experience
in ERP Requirements Engineeringrdquo summarizes one companyrsquos five years of experience
in making a generic ERP RE model a live process It rests on previously published ERP
RE process assessment results and reports on what we learnt with particular focus on
typical issues organizations face when adopting a standard model and solutions that can
be used to avoid those issues in the future Each of our lessons is described together with
a RE practice technical foundation for the practice and engineering techniques for the RE
practitioner The lessons were used to refine our Corporate Documentation Model a
process-focused and template-based ERP-architecture framework [40]
In ldquoResearch on Agent-Based Architecture of ERP For Small amp Medium-Size
Enterpriserdquo Rui-Xue Fu Zhan-Hong Xin and Can Chen (2007) suggests that with the
rapid development of information technology and the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward To address these problems a MAERP system architecture has been developed
in which the agents are classified into four types F-Agent for realizing an operation
application C-Agent for coordinating with other agents I-Agent for a communication
31
tool between the user and the MAERP system and T-Agent for performing specific tasks
and data collecting [35]
Xavier Franch and Juan Pablo Carvallo (2003) in the research paper Using Quality
Models in Software Package Selection found that the absence of structured descriptions
of quality features and user quality requirements makes selecting the right software
package difficult The authors propose a methodology for describing the quality features
of domain-specific software packages uniformly and comprehensively using ISOIEC
9126-1 quality standards as a framework [34]
In the paper study ldquoRevisiting ERP Systems Benefit Realizationrdquo Paul Hawking and
Andrew Stein (2004) maintains that many companies initially implemented their ERP
systems to solve Y2K and disparate systems issues These same companies are now
looking at a how to strategically leverages their investment in these systems through the
implementation ldquosecond waverdquo functionality This paper identifies the expected and
actual benefits of ldquosecond waverdquo implementations In addition it identifies barriers which
limit the benefit realization The findings reinforce that ERP implementations are people
focused projects which rely heavily on change management for success [45]
Hamid Nach and Albert Lejeune (2008) ldquoImplementing ERP in SMEs Towards an
Ontology Supporting Managerial Decisionsrdquo state that the purpose of this research
project is to consolidate and formalize as ontology on the basis of an extensive literature
review the key processes and skills required for successful implementation of ERP in an
SME Using the Proteacutegeacute software program the research identified and formalized 395
terms each of which has its own definition Exploitation of this ontology could take
multiple and varied forms including creation of a learning system an on-line cooperation
platform or a project management process mapping tool contributing to successful use of
ERP in SMEs [81]
While Gul Tekin Temur and Sitki Gozlu (2008) ldquoDetermination of Performance Criteria
for ERP Software Technologyrdquo mention that the main goal is to determine the
performance criteria for ERP software technology with respect to their sources Today
the companies are in interaction with many internal and external partners and have to face
many situations in various environments Especially many small and medium sized firms
utilize ERP software technology to plan their business interactions in the chain In this
32
study firstly a literature search is accomplished Then in order to reveal the performance
criteria a large-scale automotive company has been selected to conduct interviews with
managers Also the meeting reports of a few small and medium-sized companies have
been analyzed As a result of the analysis on findings the common views of the firms
about performance criteria are classified into four groups according to their sources such
as people technical managerial and economical The sub factors of these main criteria
are also taken into account in order to point out the origins of the criteria The results of
the study will provide insight to researchers and as well as to professionals in the practice
[108]
Maya Daneva (2004) in ERP Requirements Engineering Practice Lessons Learned
mentioned the fact that organizations implementing Enterprise Resource Planning (ERP)
systems have been increasingly adopting generic off-the-shelf requirements engineering
(RE) process models Yet little information exists about the challenges of making a
generic RE model a life process This article discusses why bringing an off-the-shelf
process in is not a sufficient foundation The author shares experiences acquired over the
past five years of eliciting modeling and validating requirements in ERP projects and
highlights typical issues and their solutions Among the keys to success are planning RE
model use in the clients context and installing processes to support key RE activities [25]
While the article ldquoRescuing Troubled Software Projects by Team Transformation A
Case Study with an ERP Projectrdquo by Kim Man Lui and Keith C C Chan (2008)
differentiates various reasons of ERP project failures It further states that many software
projects fail whether failure is measured in terms of budget schedule or some other
requirement The causes of such failures are many but are not always easily recognized
This is not the least due to the human dimension of corporate activities as spurious or
misdiagnosed issues in Enterprise Resource Planning (ERP) projects can take on a life of
their own and become a magnet for company politics This paper reports an industrial
case in which the senior management attempted to deal with a troubled ERP
implementation (SAP R3) in an international fast moving consumer goods (FMCG)
company during 2001 and 2002 This paper reflects this dimension as it uses original
emails and PowerPoint slides to recount a number of representative episodes in a troubled
but ultimately successful project At the heart of this success is the realization that
33
whereas it can be difficult and time-consuming to do root-cause analyses it is relatively
simple to identify problem owners In this case the senior management without IT
backgrounds turned around a failing project by reorganizing the team structure according
to process areas so that issues in each process area had one problem owner We
summarize the managementrsquos actions into a troubleshooting framework and in addition
suggest three actions for rescuing troubled projects keep the project manager but narrow
down the managerrsquos scope of responsibility to one or two process areas assign the right
people to be responsible for other process areas and have the General Manager chair the
ERP meetings [60]
In the PICMET 2006 Proceedings on ldquoOptimizing the Change Management of Enterprise
Resource Planning Systems Implementationsrdquo Onur Kerimoglu and Nuri BaUogluI
(2006) maintain that although Enterprise Resource Planning (ERP) systems are being
used widely all around the world they also carry out many problems as well as their
benefits These systems are well known for enhancing cross functional efficiency and
effectiveness through the integration of all information flowing throughout an
organization However during different project life cycle stages of ERP systems this
integration may not be provided because of the formulation of incompatibilities which
are greater than the optimum level among different parties like ERP system processes of
the organization and system users Within this study existing incompatibilities between
these parties are modeled respectively In common the model propose that the ERP
product mostly matching with the processes of the organization should be selected
processes of the organization should be changed for being compatible with the ERP
system and system users should be educated new qualified people should be hired etc
for making the system and processes more familiar to people Here the point is that all of
these are done for keeping incompatibilities between the ERP system processes and
people at minimum level because this minimalism will avoid optimization and utilization
problems This study not only handles problems of ERP from a newer perspective but
also provides insight to managers about managing the change and utilizing their resources
efficiently for adopting the ERP software across the organization [59]
Capaldo Guido and Rippa Pierluigi (2008) in ldquoA methodological proposal to assess the
feasibility of ERP Systems Implementation Strategiesrdquo stated that Continuous failures in
34
ERP systems implementation project are today the main challenge in the feasibility of
integrated information systems Failure can be determined by different factors both from
technological side and organizational side if not well managed In this paper we propose
a methodological approach based on technochange management in order to assess the
feasibility of ERP implementation strategy and reduce the risk of failure in terms of
project metrics and early operational metrics A case study in a big Italian
Telecommunication Firm will be presented [19]
ldquoCase Study of PLIVA Pharmaceuticals Inc - Aligning ERP System Implementation
with Business Process Changerdquo is very relevant and contemporary paper presented by
Vesna Bosilj Vuksic and Mario Spremic (2004) The main objective of this paper is to
present the impacts of information technology (IT) and enterprise resource planning
(ERP) systems in business process renovation projects A case study of business process
reengineering project and the implementation of the SAP software solution in PLIVA
(PLIVA pharmaceuticals Inc) are presented [116]
In ldquoKey Factors Driving the Success of Technology Adoption Case Examples of ERP
Adoptionrdquo Chonyacha Suebsin and Nathasit Gerdsri (2009) address the issues that
impact technology adoption within an organization Several factors influencing
technology adoption process are identified from the literature review Case examples of
the adoption of a new management technology Enterprise Resource Planning (ERP) are
presented to illustrate the situations of technology adoption in organizations From the
case examples the factors influencing technology adoption in organizations are
consistent with the factors identified from the literatures The further discussion also
reveals the additional determinants including the clarification of project scope individual
commitment and communication which should be taken into consideration when an
organization adopts a new technology [105]
Maya Daneva (2002) in her paper ldquoUsing Maturity Assessments to Understand the ERP
Requirements Engineering Processrdquo mentions that applying standard requirements
engineering (RE) processes is a major trend in todayrsquos Enterprise Resource Planning
(ERP) software engineering It emerged five years ago with the promise to provide a
mechanism helping ERP project organizations deliver their business requirements timely
and within budget This paper looks in depth at a standard ERP RE process and seeks
35
answers to four questions how well it is defined what are the risks associated with its
application in matureimmature organizations what are the essential practices that
contribute to its success and what are the costs of the process and the quality of the
delivered results The main motivation of this paper is to provide some practical advice
for using assessments to increase project teamsrsquo understanding of the ERP RE process
[26]
Fan JC and Kwoting Fang (2006) ldquoERP Implementation and Information Systems
Success A Test of DeLone and McLeans Modelrdquo present their research that develops
and tests a theoretical extension of DeLone and McLeans model of information system
(IS) success which explains personnel belief that contributes to users utilization of ERP
(enterprise resource planning) systems The extended model is tested using the structural
equation model (SEM) a survey of 202 end-users from ten Taiwanese enterprises that
has implemented Data Systems workflow ERP systems is conducted The theoretical
model proposed in this study provides insight into how the concept of useful perception is
incorporated into DeLone and McLean model and plays a critical mediated role to
influence system usage and its associated satisfaction The implications of these findings
for researchers and practitioners are discussed [32]
In the research findings ldquoManaging ERP Implementation Failure A Project Management
Perspectiverdquo Charlie C Chen Chuck C H Law and Samuel C Yang (2008) stated that
Information Technology (IT) projects are susceptible to changes in the business
environment and the increasing velocity of change in global business is challenging the
management of enterprise systems such as enterprise resource planning (ERP) At the
same time system success depends on the rigor of the project management processes
Scope creep poor risk management inadequate allocation of human resources over time
and vendor management are some common problems associated with the implementation
of an enterprise system These issues pose threats to the success of a large-scale software
project such as ERP This research adopts a case study approach to examine how poor
project management can imperil the implementation of an ERP system Having learned
the lessons from the failure of its first ERP implementation the company in this case
reengineered its project management practices to successfully carry out its second ERP
implementation Many critical project management factors contributed to the failure and
36
success of this companyrsquos ERP system This study explores and identifies critical
elements of project management that contributed to the success of the second ERP
implementation For those organizations adopting ERP the findings provide a roadmap
to follow in order to avoid making critical but often underestimated project management
mistakes [21]
Rafa Kouki Robert Pellerin and Diane Poulin (2008) in An Exploratory Study of ERP
Assimilation in Developing Countries The Case of Three Tunisian Companies assessed
that ERP systems could be considered as the most difficult systems to be assimilated
Very little research however has been realised to investigate the determinants of success
of the ERP assimilation process There has been also a dearth in research about ERP
projects in general and ERP post-implementation and assimilation in particular in
developing countries Using a case study methodology grounded in the diffusion of
innovation theory this study tries to understand the factors that could improve or
challenge the ERP systems assimilation process in three Tunisian companies Our
findings highlighted the importance of several factors such as top management support
strategic alignment IT expertise training communication organizational culture and
coercive pressures [62]
Ian Sommerville (2008) Construction by Configuration Challenges for Software
Engineering Research and Practice observed that past ten years have seen a radical shift
in business application software development Rather than developing software from
scratch using a conventional programming language the majority of commercial
software is now developed through reuse ndash the adaptation and configuration of existing
software systems to meet specific organizational requirements The most widespread
form of reuse is through the use of generic systems such as ERP and COTS systems that
are configured to meet specific organizational requirements In this paper he discussed
the implications of software construction by configuration (CbC) for software
engineering Based on his experience with systems for medical records and university
administration he highlighted some of the issues and problems that can arise in
construction by configuration he discussed problems that arise in CbC projects and
identify a number of challenges for research and practice to improve this approach to
software engineering [104]
37
SV Deshmukh and RR Lakhe (2008) in the research paper ldquoSix Sigma ndash An Innovative
Approach for Waste Reduction A Case Study of an Indian SMErdquo present a case study
aimed at reducing waste at an SME engaged in manufacturing of corrugated boxes The
Define Measure Analyze Improve Control strategy of Six Sigma methodology was
followed to identify probable causes for wastages After studying the system and
implementation of six sigma tools an overall 227 waste reduction was achieved
Individually out of a total seven processes 5 showed waste reduction in excess of 40
This reduction was statistically significant at Plt005 The study confirmed successful
implementation of six sigma to minimize waste generation and in terms saving in
manufacturing costs or increasing the bottom line [29]
While in ldquoERP Implementation Critical Success Factors - The Role and Impact of
Business Process Managementrdquo Yasar F Jarrar Abdullah Al-Mudimigh and Mohamed
Zairi (2000) investigate the role and impact of business process management in
successful ERP implementation The paper starts by defining business process
management ERP and the ERP critical success factors The impact of business process
management on successful ERP implementation is then assessed through looking at the
experiences of several organizations The paper concludes by highlighting best practices
for capitalizing on business process management for successful ERP implementation
[52]
M S Camara L Kermad and A El Mhamedi (2006) in the paper ldquoRisk Prediction in
ERP Projects Classification of Reengineered Business Processesrdquo maintain that
Companies have been implementing ERPs for almost ten years now and more the same
implementation problems continue to occur More and more ERP projectrsquos technological
challenges are accompanied by critical dimensions related to the management of the
transformational effects of these projects on the organization Indeed risk management in
this kind of project is not very structured and misses specific methods In this article they
propose a structured methodology for risk management particularly in the BPR (Business
Process Reengineering) sub-project of ERP implementation The final aim of our work is
to decease appreciably resistance to organizational change which poses the greatest
obstacle to business process reengineering efforts They propose to adapt OSR (Optimal
Set Reduction) a risk management method used in software development for the risk
38
management in ERP implementation They address specially the risk related to the
changes in enterprise processes in the ERP project To achieve this objective they
propose to define business process change metrics starting from business process
complexity metrics that exist in the literature [18]
ldquoExploration and Verification of Factors in the Front-end Stage of the ERP
Implementation Process Evidence from Case Study and Survey Researchrdquo Kun Shi and
Qiang Lu (2009) depict that ERP (Enterprise Resources Planning) is widely used to
improve business performance This paper explores how the factors associated with the
Front-end ERP Implementation Process (FEIP) affect the implementation outcome First
based on literature review a preliminary framework with 12 hypotheses is developed
Then Grounded Theory is applied for a case study to further extract and verify the factors
and sub-factors These factors are finally identified as strategic planning corporate
culture user characteristics organization-process-system maturity external expertise
engagementsupport and project preparation Furthermore the significance and
correlation of all the factors are detected by conducting survey research with SPSS as a
tool for analysis The study shows that the framework is valid and that among six three
factors have strong impact on the ERP implementation result whereas others are less
influential Implication is given and limitation is indicated at the end [63]
Huo Lingyu Liu Bingwu and Li Juntao (2009) in the paper ldquoAn ERP System Selection
Model Based on Fuzzy Grey TOPSIS for SMEsrdquo present a new fuzzy multi-criteria
decision making (FMCDM) approach which integrates the technique for order preference
by the similarity to ideal solution (TOPSIS) grey relation and fuzzy set theory for
enterprise resource planning (ERP) system evaluation and selection in the Small and
Medium-Sized Enterprises (SMEs) In this study the characteristic of the alternative with
respect to the criteria are represented in terms of a linguistic term set and the weight of
the criteria is described by triangular fuzzy numbers respectively According to the grey
theory and fuzzy set theory a closeness coefficient is defined to determine the ranking
order of all alternatives by calculating the grade of grey relation to the fuzzy positive-
ideal solution (FPIS) and fuzzy negative-ideal solution (FNIS) simultaneously Finally
an example is shown to highlight the procedure of the proposed method [48]
39
Gao Juntao Zhang Li Wang Zhiyao (2008) summarized their findings in ldquoDecision
Support for Handling Gaps between ERP functionalities and Organizational Needs A
Goal Reasoning based approachrdquo They found that in the process of selecting
commercial off-the-shelf (COTS) ERP systems it is inevitable to encounter gaps between
ERP software and organizational needs Gaps occur when COTS attributes do not exactly
match organizational needs and they make organizational users and software vendors in
the dilemma whether to adapt as-is business processes or to customize software
packages A decision support method for handling gaps is proposed in this paper Firstly
organizational goal-process models are built as the base for decision making Secondly
the idea of evidence theory is introduced into goal reasoning and a quantified algorithm is
proposed to evaluate the impacts of different business processes on high level goals
which are critical to make decision At last the risk is discussed to rank intervals which
specify the expected utilization of business processes [56]
Yvonne Dittrich and Sebastien Vaucouleur (2009) conducted a research on the topicrdquo
ERP Customization as Software Engineering Knowledge Sharing and Cooperationrdquo and
argue that Enterprise resource planning (ERP) systems must be configured and
customized to fit a specific company The authors discuss cooperation with regard to ERP
systems customization Enterprise resource planning (ERP) vendors provide multiple
configuration possibilities ranging from module selection to master data provision to
steer access rights for different users These configuration possibilities cover anticipated
variability If the customer requires adaptation beyond whatrsquos anticipated the source
code of the product must be adapted Customizations in this articlersquos context are source-
code-based adaptations of software products The size and complexity of customizations
range from simple report generation to developing independent add-ons that support
specific businessesmdashfor example solutions for flight carriers The size and lead time of
such projects can compare to a full-size software development project They present
empirical research on customization practices of ERP systems as an example of software
development based on customization of standard software They compared customization
with other development practices that are based on integrating existing code and results
underlined the need to rethink software engineering and programming methods and tools
[129]
40
In the paper study ldquoSignificance of Software Metrics in ERP Projectsrdquo S Parthasarathy
and N Anbazhagan (2006) narrate that ERP projects are a subclass of software projects
often accompanied by large-scale organizational changes One of the major reasons found
in the literature for the failure of ERP projects is the poor management of software
processes In this paper we propose a Software Metrics Plan (SNP) containing different
software metrics to manage software processes during ERP implementation Two
hypotheses have been formulated and tested using statistical techniques to validate the
SNP The statistical analysis of the collected data from an ERP project supports the two
hypotheses leading to the conclusion that the software metrics are momentous in ERP
projects [84]
Antony Marsh (2000) in the article ldquoThe implementation of Enterprise Resource Planning
systems in small and medium Manufacturing enterprises in south-east Queensland a case
study approachrdquo examines the implementation of ERP systems in smallmedium-sized
enterprises in South East Queensland Australia Nine case studies were conducted to
determine factors for success or failure in the implementations Key success factors
identified included cross-functional team approaches organizational experience of
similar scale IT or organizational change projects and lsquodeeprsquo understanding of the key
issues relating to ERP implementations Failure factors identified included top-down or
consultant driven implementations IT department driven implementations or
implementations where the EFV is seen as a quick technological fix to problems within
the operation of the firm rather than as a strategic investment [78]
Christian Doumlrner Sebastian Draxler Volkmar Pipek and Volker Wulf (2009) through
their study ldquoEnd Users at the Bazaar Designing Next-Generation Enterprise Resource
Planning Systemsrdquo propose that the bazaar metaphor has developed a lasting
popularity in software engineering especially as software architectures have evolved
from monoliths to service orientation Nevertheless the metaphor is limited because it
doesnt consider end users those who develop software for themselves Introducing such
an end user the prosumer to the bazaar not only suggests a changing division of work
in software development but also calls for different functionality and architectural
choices The authors evaluated changing software architectures from an end-user
development (EUD) perspective taking the case of enterprise resource planning (ERP)
41
systems as traditionally monolithically designed systems moving toward service
orientation On the basis of the studys findings which indicated problems with the
systems technical flexibility the authors developed a tool set for fostering EUD
activities Their new architecture for ERP systems enables end users to create their own
solutions [31]
Kenny KF Lee (2000) in ldquoThe Five Disciplines of ERP Software Implementationrdquo has
identified the critical factors in businesses which learn grow and succeed This paper
applies the central concepts of the book its five disciplines to the software business
specifically the management of software implementation Using the learning challenge
posed by the organization-wide implementation of Enterprise Resource Systems (Em) the
paper covers how EM software project leaders may manage themselves their teams
business vision and corporate culture and team members to create a survival machine
which can thrive in the current economic and technological climate [67]
Piet MA Ribbers amp Schoo (2000) in his paper ldquoDesigning Complex Software
Implementation Programsrdquo raises a central question that how one can design of Program
Management contributes to the success of complex software implementations
Incomplete goal specifications lack of communication and underestimation of project
complexity are signs of insufficient program and project management To avoid these
pitfalls he proposes ways that have worked well in recent complex multi-project ERP
implementations (programs) Answering the above question raises the problem of
adequately defining and measuring the level of complexity of an implementation
program A conceptual model was developed which identifies program management
factors that are proposed to have an impact on implementation success Fifteen cases
were studied to find support for the proposed framework [88]
ldquoDetecting Gaps between ERP Software and Organizational Needs A Semantic
Similarity Based Approachrdquo is very relevant and contemporary paper presented by Gao
Juntao and Zhang Li (2008) It depicts that Gap analysis is one of the most important
phases in implementation of enterprise resource planning (ERP) system In this paper an
approach is proposed to automatically detect gaps between software capacities and
organizational needs based on semantic similarity computation The approach takes two
business process models as input and one specifies software capacities and the other
42
describes organizational needs The output of it is a report of gaps As a matter of fact
the differences between application domain and software discipline make semantic
heterogeneity a key problem in gap detection therefore the technologies of semantic
similarity computing are employed to resolve ambiguity issues caused by the use of
synonyms or homonyms In particular the idea of similarity propagation is introduced to
pick out a mapping between corresponding activities and data and Hungarian algorithm
is employed to reduce its time complexity Then the similarity of whole models is
measured according to the minimal total cost of change operations Finally an
experiment is given to evaluate the method [36]
In the research publication ldquoERP System Adoption - Does the Size Matterrdquo Sanna
Laukkanen Sami Sarpola and Petri Hallikainen (2005) investigate the relationship of
enterprise size to the constraints and objectives of ERP systems adoption The survey
data based on the responses of 44 companies indicates that significant differences exist
between small medium-sized and large enterprises in ERP system adoption Specifically
the findings suggest that small companies experience more knowledge constraints than
their larger counterparts in ERP adoption Further while being the most prevalent
objective for ERP adoption in all the company groups business development through
ERP adoption is considered especially important by the medium-sized and large
enterprises Finally the findings of the study suggest that instead of considering small
and medium-sized enterprises as one homogenous group the differences between these
two groups of companies should be acknowledged in the future research [65]
In their paper ldquoModel Based on CSCWrdquo Wedian Liang XuFen Zhenkun Li Rong Xiao
JunFeng Hu (2005) summarise their finding They feel that Software testing is an
important component of the software engineering and an important link that the software
development quality is guaranteed Using the reasonable model for software testing can
reduce the expenses of testing in the developing activity in the course of testing thus cut
down the cost of software development In this paper we put forward a model for
software testing bused on CSCW technology that run through each stages of software
development cycle If can find the mistake in the software as soon as possible has
shorten the time taken for testing in the course of the development of software testing
43
effectively Finally we applied the model to the testing project which develops ERP
system and then receive the ideal result [118]
In their paper ldquoThe Research and Development of IMIS for Small and Medium-sized
Printing Enterpriserdquo Taolin Ma Xiaoming Chen Yansong Sun Xiurong Li (2009)
analyzed the fact that the basic management thought of inventory management
information system (IMIS) was established by analyzing the inventory management
theory of modern enterprise In this system which using the architecture of CS the stores
were classified by ABC management method the inventory control was completed by
setting up the safety stock and the largest stock the analysis and design of IMIS were
finished This IMIS was developed to meet the practical requirements of small and
medium-sized printing enterprise in our country It can not only be used as the important
measure of the informationized construction for small and medium sized printing
enterprise but also used as a subsystem of enterprise ERP system IMIS could improve
enterprise management level realize rapid transformation of enterprise and finally
enhance the competitiveness of enterprise in market economy [106]
Jiangao Deng and Yijie Bian (2008) in the research paper ldquoConstructing a Risk
Management Mechanism Model of ERP Projectrdquo mention that in the process of
information project implementation of manufacturing enterprises there are many risks to
set up a set of risk management mechanism is guaranteed for them to succeed in ERP
implementation Firstly based on the analysis of ERP project implementation of China
the paper introduced the risk management methodology systems and the relative model
which includes three main steps identifying risk evaluating risk and controlling risk
After that on the aspects of decision implementation and application stages of
manufacturing ERP project life cycle the paper discussed risks of each stage and put
forward a two-dimension matrix risk management strategy Then a mechanism model of
ERP project risk management is constructed which shows that information risk control
strategies of the last two stages not only depend on resources of these stages but also
have a diverse relationship with the last stage Finally according to the successful
implementation of an enterprisersquos ERP project the paper carried out an effective case
application analysis of risk management mechanism model The lack of improvement in
usersrsquo ERP skill levels and the shortage in documenting the rationale for business rules
44
and configuration decisions were among the critical issues of the post-implementation
stage Indeed all of their respondents stressed the importance of refreshing the usersrsquo
knowledge about the system [28]
Saumyendu Ghosh (2003) in ldquoGlobal Implementation of ERP Software ndash Critical Success
Factors on Upgrading Technical Infrastructurerdquo discusses that implementing an
Enterprise Resource planning (ERP) software in a global environment executive
sponsors face two key challenges While business processes are to be re-engineered to
align with the ERP software best practices technical architecture and infrastructure needs
to be in place globally as per specifications of the packaged software In the legacy
environment different countries or different business units use different systems based
on local standards supported by local resources In the new ERP world globally all the
countries must conform to same technical infrastructure Technical managers face
multiple critical issues implementing a global solution Most of the ERP software is
developed in technically advanced countries standards are often too high for under
developed or developing countries In an effort to bring the global organization to a
common platform different countries need different levels of upgrades In this paper the
authors review key technical issues faced is a global upgrade process to support a global
ERP implementation and how to resolve those We conclude although technical
infrastructure and business process reengineering both are equally important and each
implementation is unique but following some simple steps it is easy to prioritize each
ones during different phases of the project Also time lines of two sub-projects must
converge after initial phase and must follow a common plan for the project to be
successful Multiple scenarios are described to facilitate the process He concludes
although technical infrastructure and business process reengineering both are equally
important and each implementation is unique but following some simple steps it is easy
to prioritize each ones during different phases of the project Also time lines of two
subprojects must converge after initial phase and must follow a common plan for the
project to be successful Multiple scenarios are described to facilitate the process [38]
Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008) ldquoDevelopment and
Implementation of ERPCRM System Based on Open Source Software to Small and
Medium-sized Enterprise in Chinardquo analysed the fact that E-commerce and the
45
development of modern enterprise management raise a number of challenges in the
process of informatization of small and medium-sized enterprises (SME) in china To
address this they present an approach in which the informatization is enhanced by using
Open Source Software with customized policies We analyses the main
informationization obstacles of SME in china bring forward that the lack of bankroll
talents cost and management etc are the key problems to informationization of SME
Furthermore they have developed a textile foreign trade ERP CRM system based on
Open Source Software for the local textile distributor of china integrating financial
distribution sales and service processes given the implement method of overall planning
step-by-step implementation key breakthrough and efficiency guiding In the end we
compare the typical Open Source Software and traditional commercial software point
out the advantages of informatization based Open Source Software to SME in china and
the development trend of Open Source Software for enterprise application [132]
ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information Systems ndash a
Multi-disciplinary Method for ERP System Requirements Engineeringrdquo by Inka Vilpola
Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that ERP systems are in
most cases off-the-shelf software packages and large by their size and complex by their
structure Small and medium-sized enterprises (SMEs) require flexibility of the ERP
system because of their individual operational processes Therefore it is crucial to select
and implement an ERP system that fits the requirements of the intended target processes
To support the requirements engineering of ERP systems we have developed Customer-
Centered ERP Implementation (C-CEI) method The method introduces a multi-
disciplinary approach to the ERP project and provides in-depth understanding of the
companylsquos processes and context of use Using C-CEI method decreases the risk of
SMEs to select an inappropriate system and improves the system acceptance by the
customer companyrsquos employees In this paper we present the method and illustrate it by
three SME case studies [114]
Saumyendu Ghosh (2000) in ldquoChallenges on a global implementation of ERP softwarerdquo
discusses that some of the unique challenges in ERP implementation are satisfying
multiple countries statutory requirements and reporting to the corporate head quarters
from one installation of the software conflicting interests between different business
46
entities lack of experienced implementators in all the countries and eminent users of
multinational advantages He discusses different aspects of these challenges in detail and
point out that ERP software can provide only one solution for a particular business
process unless workarounds are available from experienced implementation Different
counties adopt different reporting and accounting practices and therefore an ERP
implementation cannot solve all problems that global corporation may have multiple
countries in the scope of the project due to absence of standard global processes across
the organization He concludes that the most important critical success factor of these
international implementations are how quickly these corporations can reengineer existing
business process to adopt best practices of using an ERP system [38]
Dong Cheng Feiyan Deng Hongtao Li (2006) ldquoCritical Factors for Successful
Implementation of ERP in Chinardquo in their study propound a theoretical model for
successful implementation of Enterprise Resource Planning (ERP) under Chinarsquos
environment and the authors analyze the model empirically through structural equation
modeling The authors find that strategically IT planning abilities leadershiprsquos support
and the skills of IT section business processing abilities learning abilities and change
management abilities has a significant positive impact on successful ERP implementation
[22]
Parijat Upadhyay (2008) in his research studies ldquoAn explorative study to identify the
Critical Success Factors for ERP Implementation in Indian small and medium scale
enterprisesrdquo explores the existing literature on ERP implementation issues in context to
small and medium scale enterprises and attempts a compilation of the factors that assume
great significance while implementing ERP in SMErsquos Given the nature and magnitude of
the problems in encountered in implementing an ERP project this study would attempt to
identify the critical success factors(CSFrsquos) for a successful implementation of an ERP
project since it calls for substantial effort on the part of all the stake holders involved to
make the implementation a success [111]
ldquoThe ERP Implementation of SME in Chinardquo Yuanqiang Xia Peter Lok and Song Yang
(2009) presented the fact that ERP implementing for small and middle size enterprise
(SME) is different from the large one Based on the analysis on the character of ERP
marketing and SMEs of China 6 critical success factors are recommended The research
47
suggests that the top management support is most important to ERP implement in SME
of China in which paternalism prevails Database of management and capital are main
obstacles ERP 1 or ERP 2 fits to demand of SME high power project team has
tremendous significance in the situation of absence of IT engineer for SME education
and training is helpful to successfully ERP implementing The results service as better
understanding the ERP implementation of SME in China and gaining the good
performance of ERP implementation [126]
Yan Xu and Chung-Hsing Yeh (2009) in the article ldquoStrategic Management of
Performance Measures for an ERP Implementation Project Teamrdquo present a new
evaluation model for managing performance measures of an enterprise resource planning
(ERP) implementation project team in an organization With the performance measures
classified into four strategic perspectives of the balanced scorecard the evaluation model
enables the goal alignment between the project team and the organization A new
algorithm using the concept of multi-attribute decision making is developed to obtain the
relative importance value for each performance measure for its contribution to the
strategic goals of the organization The higher the importance values of a performance
measure the more important the role it plays in determining the responsibilities of the
corresponding project team player Understanding the importance of the key performance
measures will help an organization well-prepare to launch a project and have the project
being organized in advance A case of an ERP implementation project in an integrated
manufacturing corporation is presented to demonstrate the applicability of the evaluation
model and its effective management of the performance measures [124]
Zhang Yanhong (2009) in his research paper ldquoERP Implementation Process Analysis
Based on the Key Success Factorsrdquo describes that Enterprise Resource Planning (ERP) is
an amalgamation of a companys information systems designed to bind more closely a
variety of company functions including human resources inventories and financials
while simultaneously linking the company to customers and vendors This thesis is based
on the theory of product life cycle and the process of ERP is divided into four phase
planning implementation stabilization and improvement Critical success factors in each
phase are identified by paper research case study and investigation An ERP
implementation process model based on the critical Success factors (CSFs) is proposed in
48
the paper The thesis analyzes the global planning stages and business process rebuilding
in the process of QIHE pharmaceuticals ERP Improvement on management and
financing before and after ERP implementation are contrasted and we come to the
following conclusions (1) The CSFs in the planning phase is comprehensive
investigation and evaluation (2) The CSFs in the implementation phase is effective
project management team (3) The CSFs in the stabilization phase is appropriate
information management system (4) The CSFs in the improvement phase is change on
demand and continue to innovate (5) The CSFs throughout the product life cycle is
business process rebuilding [131]
Van Stijn E and Wensley A (2001) ldquoOrganizational memory and the completeness of
process modeling in ERP systems some concerns methods and directions for future
researchrdquo mentioned that Enterprise resource planning (ERP) systems not only have a
broad functional scope promising to support many different business processes they also
embed many different aspects of the companyrsquos organizational memory Disparities can
exist between those memory contents in the ERP system and related contents in other
memory media such as individualsrsquo memories and the organizational structure and
culture It is our contention that in general these disparities or memory mismatches as
we will refer to them lead to under-performance of ERP systems In this paper they focus
on potential memory mismatches that may arise with respect to the embedding of process
knowledge within ERP packages Packages such as SAP provide a varied and rich
environment for process modeling However they suspect that there are still many
instances where process knowledge is either lost or represented in different ways in
different parts of the organization The overall thrust of the paper is to identify a variety
of concerns intriguing questions and avenues for future research [112]
Eric Kimberling (2008) in his article ldquo The Role of Lean Six Sigma in ERPrdquo insisted
that there are a number of things to consider when considering a new ERP system like six
sigma lean manufacturing or other business transformation projects that has the capacity
to measure reducing waste managing change well continuous improvement etc [133]
William H Gaw (2010) ldquoEight Basics of Lean Six Sigma for Manufacturing Firmsrdquo In
the efforts to draw closer to customers many manufacturers have lost focus on what
should be a companyrsquos primary success factor ndash profitable growth In todayrsquos competitive
49
manufacturing environment it takes more than quick fixes outsourcing and downsizing
for companies to consistently achieve their growth and profit objectives While these
options may yield temporary financial relief they will not lead the way to long-term
growth and profitability For companies to grow and consistently exceed bottom line
expectations they need to get lean And to get lean they should master eight basics of
Lean Six Sigma in the form of information integrity performance measurement
sequential production point-of-use logistic cycle time management production linearity
and resource planning and customer satisfaction [134]
Brehm L and Markus M L (2000) in The Divided Software Life Cycle of ERP
Packages mentioned that traditional information system life cycle (SLC) focuses on the
activities performed by company developing implementing and maintaining software for
its own internal use Enterprise resource planning (ERP) software packages change the
SLC in several important ways This paper presents an extension of the SLC model for
ERP packages The lsquodivided software life cyclersquo (DSLC) model features an equal
emphasis on the activities performed by the ERP adopting company and the ERP vendor
[15]
Alavi M and Carlson P (1992) A Review of MIS research and disciplinary
development The perceived status of journals in which MIS research is published is an
important issue to academics The number of IS-related journals has increased through
the years yet it is not obvious which are the ldquoleadingrdquo journals or what criteria should be
used to determine this This article addresses these issues by (1) evaluating and
analyzing previous studies in which MIS related journals have been ranked (2)
determining top-ranked journals and placing them into two levels or tiers based on
previous studies and (3) establishing a profile through a systematic analysis of the nine
journals in the first tier This study identified 17 highly ranked journals for publication
Nine were placed in the first tier and eight in the second tier In addition to IS-specific
journals publications included management science computer science and business-
oriented journals The individual strategies for improving software productivity are
identified Issues related to software costs and controlling them are examined and
discussed It is pointed out that a good framework of techniques exists for controlling
software budgets schedules and work completed but that a great deal of further progress
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 11
22
4 Metrics that do not sufficiently provide incentives employees to supportachieve
corporate goals
5 Inability to accurately determine and plan for customer demand
As the immense variability in how SMB companies conduct business still predominates
the SMBs see technology as the enablers of their strategies Specifically cited are the
increased availability of advanced analytics decision support and reporting tools as well
as the availability of process-specific business applications [55]
Christina Soh Sia Siew Kien and Joanne Tay-Yap (2004) through their study on the
subject ldquoCultural Fits amp Misfits Is ERP a universal Solutionrdquo Present early findings
from a larger ongoing study The typology of misfits and examples are drawn from the
review of implementation documents and supplemented by interviews with key project
team members from one hospital [102]
In their White Paper ldquoERP Selection ndash Right Tracking Enterprise Change ITSg-GCPrdquo at
TCS Dr Joginder Singh Lamba amp Swapnil Kitcha (2007) analyzed the fact that
business changes in the form of portfolio expansion structure decentralization and supply
chain integration drive new investments in ERP Besides the need for more functional
areas within the IT landscape (BI CRM PLM and Product Information Management)
demands new interfaces with ERP backbone Heterogeneous compatibility and varied
maturity across modules elicit interest in best of breed solutions in ERP [64]
In ldquoFuture of ERP systems and Microsoft Dynamics Learn about XML and Web
servicesrdquo McKie (2008) discusses what sort of requirements XML and web services put
on business applications He further explains ERP systems need to be able to create
XML schemas (data specifications) and they need to be able to import and export data in
XML documents The more data an ERP user needs to share with business partners the
more important is to have these capabilities In addition to XML McKie identifies a
second type of Web service that offers functionality rather than data is expected to
emerge in the form of business partner integration analytics and alerts [79]
David Caruso (2005) Senior Vice President Industry Research AMR in his article
ldquoProcess Productivity and Profit The SMB Executiversquos Framework for ERP
Investmentrdquo narrated that SMBs which are not aggressively developing an effective ERP
strategy will be at some disadvantage to their peers by 2006 Forward-thinking executives
23
will consider strategic business capabilities as the drivers for enterprise resource planning
(ERP) investment justification In a 2005 study that AMR Research conducted with over
550 companies regarding their ERP investment plans and found that only 27 of small
companies (fewer than 500 employees) are currently using ERP This is in sharp contrast
to the 57 of large companies (500 to 2499 employees) and 70 of enterprise-sized
companies (2500-plus employees) that have operational ERP systems Given this data it
is not surprising that almost 50 of the respondents interviewed will be making
substantial changes to their existing ERP systems over the next 12 to 18 months The
challenge for executives charged with the decision is establishing a powerful context for
making the ERP investment [20] When considering the ERP investment decision from
the perspective of the executive suite there are four overarching drivers that frame what
executives need to consider
1 Productivitymdashgetting the most from your valuable employee assets
2 Connectivitymdashworking collaboratively with your key customers and suppliers
3 Business insightmdashImproving the speed and quality of decision making
4 Total cost of ownershipmdashreducing the cost of owning and operating IT systems
Yong Jean John amp Ki-Henry Yim (2001) in an article ldquoA study on an Environment of
ERP Introductionrdquo includes the role of ERP perception of ERP value ERP plan
direction and also argues various checkpoints as a preview of ERP introduction In
conclusion they list checkpoints in sequence based on the mean values that provides
indications of the relative importance As a result the most important checkpoints were
Performance of Introduction Main Reference Sites Availability of Current Resources
Easiness of Introduction Operation System Past Records of Supply Market Share and
Vendor Size The results shown in this paper has shown strong implications for ERP
vendors Vendor size and market share received the least attention amongs all the
checkpoints described in the study [125]
One step forward IQMS Executive White Paper (2007) ldquoHow Successful ERP Selections
are Made ldquo this paper is not just about want and donrsquot want from the various people in
the organization It suggests that it should be a long lasting purchase that provides the
users the feeling of a partnership As the user is not just buying software they are also
buying into a vendor and their company culture The combination of software capability
24
and vendor credibility should be a major purchasing factor There is more to a lasting
ERP purchase than that There are several platform thoughts on technology how many
vendors are included the demonstration the always useful buzz words with all the hype
on service oriented architecture (SOA) best of breed lean manufacturing and all the
other phrases floating in the industry today implementation time customer referrals
customer retention look at your company objectively etc [49]
Robert C Beatty amp Craig D Williams (2006) in ldquoBest Practices for Successfully
Implementing an ERP Upgraderdquo maintain that an ERP upgrade is deceptively complex
and can be daunting especially for organizations ignorant of the massive effort required
to do it correctly One study of mid-size to large companies conducted by AMR Research
found that 67 of these companies are implementing some form of ERP while another
21 are evaluating potential ERP systems solutions As a growing number of companies
adopt ERP systems ERP systems implementation and upgrades are identified as one of
the top five IT priorities among global CIOs according to independent surveys conducted
by Morgan Stanley and Deloitte amp Touche IDG Research Services Group In
conclusion this article provides organizations with a list of the eight most common
recommendations suggested by organizations that have already completed at least one
upgrade to their initial ERP implementation [11] These are
Finding 1 Build your business case on new functionality
Finding 2 Treat the upgrade like a new project
Finding 3 Keep the team together
Finding 4 This is a business project not an IT project
Finding 5 Watch for hidden infrastructure costs
Finding 6 Un-customize customizations
Finding 7 Test like your organizationrsquos future success depends on it
Robert Davison (2002) raises a valid point through his article ldquoCultural Complications of
ERPrdquo discussed cultural misfits from a Singaporean perspective This implies that a one-
size-fits all or one-business-model- fits-all approach is unlikely to be successful As much
of ERP literature originates from and describes application contexts in North America
and to a lesser extent Western Europe where most ERP developers are located and
implementations have occurred Developers and consultants need to adapt their products
25
and services for different cultural markets Awareness of cultural differences and prefer-
ences will certainly improve the assessment of ERP suitability and any subsequent
implementation [27]
A group of researchers Siew Kien Sia May Tang Christina Soh Wai Fong Boh (2002)
from Information Management Research Center Nanyang Business School in their
research paper ldquoEnterprise Resource Planning (ERP) Systems as a Technology of Power
Empowerment or Panoptic Controlrdquo explores ERP as an ambivalent technology of
power According to them on the one hand it may tighten management control by
bringing a new level of panoptic visibility to organizational activities on the other hand
the embedded business model within the ERP may drive empowerment of employees and
greater control relaxation through the configuration of new process design This research
seeks to understand how the different forces play out in the context of ERP
implementation and to explore the implications for traditional power distribution in
organizations It adopted a mixed qualitative-quantitative methodology in an intensive
case study of a restructured hospital in Singapore A survey of 260 users was
administered supplemented by approximately 27 hours of individual interviews with 23
people Results reveal that although ERP can facilitate both empowerment and panoptic
control management has consciously resisted empowerment by working to reinstitute the
power lost through the ERP implementation On the other hand the new panoptic
visibility though partially unintended appears to have evolved naturally and was readily
learned and applied in the organization This study is significant in exposing the
likelihood of ERP implementation as a technology that perpetuates management power
At least in the context of the hospital studied it is yet another means of enlarging the
management authority for ldquototal controlrdquo Current articulations of ERP by practitio-
nersmanagement as empowering thus appear to be more theoretical than real This is
consistent with the perspective of critical theorists (eg Sewell amp Wilkinson 1992
Weber 1947 Tannenbaum 1968) that organizational life will become increasingly
rationalized and more controlled Thus the findings support the critical perspective in
exposing the likelihood of ERP implementation to perpetuate management power Being
a single case study the external generalization of the above analysis is limited Future
research should be sensitive to the formative context (eg the nature of the pre-existing
26
structure the Asian cultural context) and the distribution of authority among
organizational actors (eg presence of management intention) in an organization The
dynamics of panoptic control and empowerment during ERP implementation may be
different in organizational transformation contexts or in organizations with more fluid or
organic pre-existing structures It may also be interesting to follow the analysis of
panoptical and empowerment over an extended period to get a better understanding of
their continuously evolving dynamics [98]
Suprateek Sarker and Allen S Lee (2003) in the paper ldquoUsing a Case study to test the
role of three key social enablers in ERP implementationrdquo indicate that three key social
enablersmdashstrong and committed leadership open and honest communication and a
balanced and empowered implementation teammdashare necessary conditionsprecursors for
successful ERP implementation In a longitudinal positivist case study we find that
while all three enablers may contribute to ERP implementation success only strong and
committed leadership can be empirically established as a necessary condition This
presents a challenge to future ERP researchers for resolving apparent contradictions
between the existing literature and the results of our analysis and for investigating the
nature of interactions among the leadership communication and team characteristics
[93]
Srinivas Mantha (2007) in the article ldquoERPndashBusiness Processes with IP
Communicationsrdquo explained the fact that the key to new competitive capability is
envisioning the enterprise in terms of business wide relationships to improve user
experience across the network exploit knowledge and enhance and accelerate core
processes IP Communications is the catalyst for this capability It enhances the value of
the user experience exploits knowledge value and increases the value of business
processes [76]
Linda Askenaumls amp Alf Westelius (2000) from Linkoumlping University Sweden explore
a new vista of ERP through their literature ldquoFive Roles of an Information System A
Social Constructionist Approach to Analyzing the use of ERP Systemsrdquo This paper
presents a novel way of thinking about how information systems are used in
organizations Traditionally computerized information systems are viewed as objects In
contrast by viewing the information system as an actor our understanding of the
27
structure process increases The user being influenced by the ERP (Enterprise Resource
Planning) system and giving it an actor role thereby also confers agency on the ERP
system Through its very use it influences actions and thus the structure as well Based
on a case study of ERP use in an ABB company for over a decade five different roles
played by the ERP system were identified The ERP system acted as Bureaucrat
Manipulator Administrator and Consultant or was dismissed (Dismissed) in the sense
that intended users chose to avoid using them In conclusion the purpose of this approach
is not to ldquoanimaterdquo the information system to give it life or a mind of its own but rather
to make explicit the socially constructed roles conferred on the information system by
users and others who are affected by it On this basis it is possible to suggest how the
roles can help us opening up the new areas of exploration concerning the fruitful use of
information technology [70]
Jinyoul Lee Keng Siau and Soongoo (2003) conducted a study on the topic ldquoEnterprise
Integration with ERP and EAIrdquo They state that to survive and thrive in these hypercom-
petitive markets it is essential for a company to understand rapidly changing business
circumstances To rapidly respond to a changing environment an enterprise must
integrate business functions into a single system efficiently utilizing information
technology and share data with third-party vendors and customers While ERP forces the
adoption of standard business processes EAI enables enterprise integration over business
object levels ERP thereby supports a centralized business strategy while EAI naturally
accommodates decentralized business processes Lastly they observe the fact True
enterprise integration means both technical and behavioral integration It is not simply
integrating different systems applications or business processes dispersed across an
enterprise It is integrating structural changes different behaviors and various
information systems in an enterprise Enterprise integration is costly and time-
consuming thus management should be cautious in the design of the project
Organizations should not blindly rush into new technologies Top management should
first strive to understand their business and needs for enterprise integration and then
select a methodology of enterprise integration [68]
Wilhelm Scheer and Frank Habermann (2000) in ldquoMaking ERP a Successrdquo have used
business process models at an operational level of e-business to achieve positive results
28
They have talked of different scenarios in e-business As in Business-to-Business
applications such as Supply Chain Management the user has to connect the ERP systems
of all business partners This means he has to fight not only with the thousands of
parameters of a single ERP system but with twice as much (or even more) Another likely
scenario is that the business partners involved in an inter-organizational supply chain are
using ERP systems of different vendors In this case a business process model can be
firstly used to define the conceptual value chain Secondly the conceptual model that is
independent from a certain software vendor can be linked to the repositories of the
different ERP systems in order to customize an integrated software solution These
examples demonstrate that business process models play a major role for the success of e-
business Some ERP vendors like SAP have understood this development and are already
implementing their first model-based e-business applications [94]
Ash CG (2001) in An e-Commerce Model for Extending ERP Systems onto the
Internet An Australian Perspective stated that an established research framework of e-
Business change is used to identify the factors for success of this e-business project
within an ERP environment The results confirm that a successful project was found to
have facilitators in all components of the business framework including the change
environment and project management Further there is the implication that the least
successful e-business projects will have inhibitors in both dimensions especially in the
area of cultural readiness and change management In this case study conflict arose
between local project management initiatives versus a centralized autocratic global ERP
deployment This highlights the need to encourage the balancing of conflicting
organizational knowledge when contemplating the adoption of e-business solutions [7]
Huigang Liang Yajiong Xue William R Boulton Terry Anthony Byrd (2004) ldquoWhy
Western Vendors donrsquot dominate Chinarsquos ERP Marketrdquo Examined cases of failed ERP
system implementation in China and explaining the unique circumstances These foreign
ERP implementation failures emphasize the need to localize strategies even for the
global ERP leaders The general manager of a foreign ERP vendor explained ldquoOne
should understand nationrsquos history and its culture before one starts doing business with
foreign companiesrdquo The cases of failed implementation suggest global ERP vendors
require more than superior technology and experience Their ERP strategies must also
29
address the cultural differences affecting ERP implementations Strategies need to
overcome problems relating to language reporting formats and content cost control
capabilities frequent business process redesigns effective customer support and capable
consulting partners [69]
In the research findings ldquoAn Agency Theory Model of ERP Implementationrdquo Vedabrata
Basu Albert L Lederer (2004) develop a model of testable propositions for applying
agency theory to study the relationship between implementation consultants and client
organizations deploying the ERP systems and to consequently evaluate how the
relationship affects the implementation success Therefore management needs to know
the factors that drive successful ERP implementation a product of the continuous
interaction between the implementation consultants and client firms Agency theory has
been successfully used by different researchers to explain relationships between two
parties seeking a common outcome This paper develops a conceptual model with the
variables and relationships that may play a critical role in explaining the sources of that
frustration It offers a foundation for research that can extend the applicability of agency
theory can help clients and consultants manage their relationships during the
implementation process and thus help them enhance the probability of ERP systems
implementation success It may also be useful for managing other outsourced IS projects
that have implementation settings similar to ERP [10]
Christian Vogt (2002) ldquoIntractable ERP A Comprehensive Analysis of Failed Enterprise-
Resource ndash Planning Projectsrdquo makes an analysis of possible causes that led to the
disasters for ERP implementation failures and suggests software engineering processes
that help avoiding such outcomes The Model Based Architecting and Software
Engineering (MBASE) guidelines developed by Prof Barry Boehm and Daniel Port at
the Center for Software Engineering (CSE) at USC provide a base for these elaborations
for a long time SW Engineering experts have praised commercial-off-the-shelf (COTS)
packages as the panacea to complex software development Far from it the elaboration
in this survey shows that the deployment of COTS packages may be extremely intrinsic
one does not know whether some COTS software adheres to its interface specifications or
how deficient it is or how well its performance scales up as workload demand grows
The upshot is that COTS software will always be an alien element in the software to be
30
developed and it should be considered that way Dye-in-thendashwool COTS package ERP
systems exhibit plenty of dangers Only if appropriate risk management and enough time
for stepwise employment is provided for ERP system can be tamed [115]
In the research findings ldquoImplementing Best Practices in ERP for Small amp Medium
Enterprisesrdquo Rashmi Jha A K Saini and M N Hoda (2008) provides an interesting
insight into taking ERP implementation as a project and develops problem driven
approach to examine its complex phenomena The implementation process will be
divided into several components which will reflect the nature of ERP projects and makes
them distinctive from other systems design methods This paper also addresses critical
issues relating to developing entrepreneurship for sustainable development of small and
medium size enterprises(SMEs) for its future extensions and added benefits It may also
be useful for managing other outsourced Information System (IS) projects that have
implementation settings similar to ERP [53]
Saumyendu and Maya Daneva (2003) in ldquoLessons Learnt from Five Years of Experience
in ERP Requirements Engineeringrdquo summarizes one companyrsquos five years of experience
in making a generic ERP RE model a live process It rests on previously published ERP
RE process assessment results and reports on what we learnt with particular focus on
typical issues organizations face when adopting a standard model and solutions that can
be used to avoid those issues in the future Each of our lessons is described together with
a RE practice technical foundation for the practice and engineering techniques for the RE
practitioner The lessons were used to refine our Corporate Documentation Model a
process-focused and template-based ERP-architecture framework [40]
In ldquoResearch on Agent-Based Architecture of ERP For Small amp Medium-Size
Enterpriserdquo Rui-Xue Fu Zhan-Hong Xin and Can Chen (2007) suggests that with the
rapid development of information technology and the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward To address these problems a MAERP system architecture has been developed
in which the agents are classified into four types F-Agent for realizing an operation
application C-Agent for coordinating with other agents I-Agent for a communication
31
tool between the user and the MAERP system and T-Agent for performing specific tasks
and data collecting [35]
Xavier Franch and Juan Pablo Carvallo (2003) in the research paper Using Quality
Models in Software Package Selection found that the absence of structured descriptions
of quality features and user quality requirements makes selecting the right software
package difficult The authors propose a methodology for describing the quality features
of domain-specific software packages uniformly and comprehensively using ISOIEC
9126-1 quality standards as a framework [34]
In the paper study ldquoRevisiting ERP Systems Benefit Realizationrdquo Paul Hawking and
Andrew Stein (2004) maintains that many companies initially implemented their ERP
systems to solve Y2K and disparate systems issues These same companies are now
looking at a how to strategically leverages their investment in these systems through the
implementation ldquosecond waverdquo functionality This paper identifies the expected and
actual benefits of ldquosecond waverdquo implementations In addition it identifies barriers which
limit the benefit realization The findings reinforce that ERP implementations are people
focused projects which rely heavily on change management for success [45]
Hamid Nach and Albert Lejeune (2008) ldquoImplementing ERP in SMEs Towards an
Ontology Supporting Managerial Decisionsrdquo state that the purpose of this research
project is to consolidate and formalize as ontology on the basis of an extensive literature
review the key processes and skills required for successful implementation of ERP in an
SME Using the Proteacutegeacute software program the research identified and formalized 395
terms each of which has its own definition Exploitation of this ontology could take
multiple and varied forms including creation of a learning system an on-line cooperation
platform or a project management process mapping tool contributing to successful use of
ERP in SMEs [81]
While Gul Tekin Temur and Sitki Gozlu (2008) ldquoDetermination of Performance Criteria
for ERP Software Technologyrdquo mention that the main goal is to determine the
performance criteria for ERP software technology with respect to their sources Today
the companies are in interaction with many internal and external partners and have to face
many situations in various environments Especially many small and medium sized firms
utilize ERP software technology to plan their business interactions in the chain In this
32
study firstly a literature search is accomplished Then in order to reveal the performance
criteria a large-scale automotive company has been selected to conduct interviews with
managers Also the meeting reports of a few small and medium-sized companies have
been analyzed As a result of the analysis on findings the common views of the firms
about performance criteria are classified into four groups according to their sources such
as people technical managerial and economical The sub factors of these main criteria
are also taken into account in order to point out the origins of the criteria The results of
the study will provide insight to researchers and as well as to professionals in the practice
[108]
Maya Daneva (2004) in ERP Requirements Engineering Practice Lessons Learned
mentioned the fact that organizations implementing Enterprise Resource Planning (ERP)
systems have been increasingly adopting generic off-the-shelf requirements engineering
(RE) process models Yet little information exists about the challenges of making a
generic RE model a life process This article discusses why bringing an off-the-shelf
process in is not a sufficient foundation The author shares experiences acquired over the
past five years of eliciting modeling and validating requirements in ERP projects and
highlights typical issues and their solutions Among the keys to success are planning RE
model use in the clients context and installing processes to support key RE activities [25]
While the article ldquoRescuing Troubled Software Projects by Team Transformation A
Case Study with an ERP Projectrdquo by Kim Man Lui and Keith C C Chan (2008)
differentiates various reasons of ERP project failures It further states that many software
projects fail whether failure is measured in terms of budget schedule or some other
requirement The causes of such failures are many but are not always easily recognized
This is not the least due to the human dimension of corporate activities as spurious or
misdiagnosed issues in Enterprise Resource Planning (ERP) projects can take on a life of
their own and become a magnet for company politics This paper reports an industrial
case in which the senior management attempted to deal with a troubled ERP
implementation (SAP R3) in an international fast moving consumer goods (FMCG)
company during 2001 and 2002 This paper reflects this dimension as it uses original
emails and PowerPoint slides to recount a number of representative episodes in a troubled
but ultimately successful project At the heart of this success is the realization that
33
whereas it can be difficult and time-consuming to do root-cause analyses it is relatively
simple to identify problem owners In this case the senior management without IT
backgrounds turned around a failing project by reorganizing the team structure according
to process areas so that issues in each process area had one problem owner We
summarize the managementrsquos actions into a troubleshooting framework and in addition
suggest three actions for rescuing troubled projects keep the project manager but narrow
down the managerrsquos scope of responsibility to one or two process areas assign the right
people to be responsible for other process areas and have the General Manager chair the
ERP meetings [60]
In the PICMET 2006 Proceedings on ldquoOptimizing the Change Management of Enterprise
Resource Planning Systems Implementationsrdquo Onur Kerimoglu and Nuri BaUogluI
(2006) maintain that although Enterprise Resource Planning (ERP) systems are being
used widely all around the world they also carry out many problems as well as their
benefits These systems are well known for enhancing cross functional efficiency and
effectiveness through the integration of all information flowing throughout an
organization However during different project life cycle stages of ERP systems this
integration may not be provided because of the formulation of incompatibilities which
are greater than the optimum level among different parties like ERP system processes of
the organization and system users Within this study existing incompatibilities between
these parties are modeled respectively In common the model propose that the ERP
product mostly matching with the processes of the organization should be selected
processes of the organization should be changed for being compatible with the ERP
system and system users should be educated new qualified people should be hired etc
for making the system and processes more familiar to people Here the point is that all of
these are done for keeping incompatibilities between the ERP system processes and
people at minimum level because this minimalism will avoid optimization and utilization
problems This study not only handles problems of ERP from a newer perspective but
also provides insight to managers about managing the change and utilizing their resources
efficiently for adopting the ERP software across the organization [59]
Capaldo Guido and Rippa Pierluigi (2008) in ldquoA methodological proposal to assess the
feasibility of ERP Systems Implementation Strategiesrdquo stated that Continuous failures in
34
ERP systems implementation project are today the main challenge in the feasibility of
integrated information systems Failure can be determined by different factors both from
technological side and organizational side if not well managed In this paper we propose
a methodological approach based on technochange management in order to assess the
feasibility of ERP implementation strategy and reduce the risk of failure in terms of
project metrics and early operational metrics A case study in a big Italian
Telecommunication Firm will be presented [19]
ldquoCase Study of PLIVA Pharmaceuticals Inc - Aligning ERP System Implementation
with Business Process Changerdquo is very relevant and contemporary paper presented by
Vesna Bosilj Vuksic and Mario Spremic (2004) The main objective of this paper is to
present the impacts of information technology (IT) and enterprise resource planning
(ERP) systems in business process renovation projects A case study of business process
reengineering project and the implementation of the SAP software solution in PLIVA
(PLIVA pharmaceuticals Inc) are presented [116]
In ldquoKey Factors Driving the Success of Technology Adoption Case Examples of ERP
Adoptionrdquo Chonyacha Suebsin and Nathasit Gerdsri (2009) address the issues that
impact technology adoption within an organization Several factors influencing
technology adoption process are identified from the literature review Case examples of
the adoption of a new management technology Enterprise Resource Planning (ERP) are
presented to illustrate the situations of technology adoption in organizations From the
case examples the factors influencing technology adoption in organizations are
consistent with the factors identified from the literatures The further discussion also
reveals the additional determinants including the clarification of project scope individual
commitment and communication which should be taken into consideration when an
organization adopts a new technology [105]
Maya Daneva (2002) in her paper ldquoUsing Maturity Assessments to Understand the ERP
Requirements Engineering Processrdquo mentions that applying standard requirements
engineering (RE) processes is a major trend in todayrsquos Enterprise Resource Planning
(ERP) software engineering It emerged five years ago with the promise to provide a
mechanism helping ERP project organizations deliver their business requirements timely
and within budget This paper looks in depth at a standard ERP RE process and seeks
35
answers to four questions how well it is defined what are the risks associated with its
application in matureimmature organizations what are the essential practices that
contribute to its success and what are the costs of the process and the quality of the
delivered results The main motivation of this paper is to provide some practical advice
for using assessments to increase project teamsrsquo understanding of the ERP RE process
[26]
Fan JC and Kwoting Fang (2006) ldquoERP Implementation and Information Systems
Success A Test of DeLone and McLeans Modelrdquo present their research that develops
and tests a theoretical extension of DeLone and McLeans model of information system
(IS) success which explains personnel belief that contributes to users utilization of ERP
(enterprise resource planning) systems The extended model is tested using the structural
equation model (SEM) a survey of 202 end-users from ten Taiwanese enterprises that
has implemented Data Systems workflow ERP systems is conducted The theoretical
model proposed in this study provides insight into how the concept of useful perception is
incorporated into DeLone and McLean model and plays a critical mediated role to
influence system usage and its associated satisfaction The implications of these findings
for researchers and practitioners are discussed [32]
In the research findings ldquoManaging ERP Implementation Failure A Project Management
Perspectiverdquo Charlie C Chen Chuck C H Law and Samuel C Yang (2008) stated that
Information Technology (IT) projects are susceptible to changes in the business
environment and the increasing velocity of change in global business is challenging the
management of enterprise systems such as enterprise resource planning (ERP) At the
same time system success depends on the rigor of the project management processes
Scope creep poor risk management inadequate allocation of human resources over time
and vendor management are some common problems associated with the implementation
of an enterprise system These issues pose threats to the success of a large-scale software
project such as ERP This research adopts a case study approach to examine how poor
project management can imperil the implementation of an ERP system Having learned
the lessons from the failure of its first ERP implementation the company in this case
reengineered its project management practices to successfully carry out its second ERP
implementation Many critical project management factors contributed to the failure and
36
success of this companyrsquos ERP system This study explores and identifies critical
elements of project management that contributed to the success of the second ERP
implementation For those organizations adopting ERP the findings provide a roadmap
to follow in order to avoid making critical but often underestimated project management
mistakes [21]
Rafa Kouki Robert Pellerin and Diane Poulin (2008) in An Exploratory Study of ERP
Assimilation in Developing Countries The Case of Three Tunisian Companies assessed
that ERP systems could be considered as the most difficult systems to be assimilated
Very little research however has been realised to investigate the determinants of success
of the ERP assimilation process There has been also a dearth in research about ERP
projects in general and ERP post-implementation and assimilation in particular in
developing countries Using a case study methodology grounded in the diffusion of
innovation theory this study tries to understand the factors that could improve or
challenge the ERP systems assimilation process in three Tunisian companies Our
findings highlighted the importance of several factors such as top management support
strategic alignment IT expertise training communication organizational culture and
coercive pressures [62]
Ian Sommerville (2008) Construction by Configuration Challenges for Software
Engineering Research and Practice observed that past ten years have seen a radical shift
in business application software development Rather than developing software from
scratch using a conventional programming language the majority of commercial
software is now developed through reuse ndash the adaptation and configuration of existing
software systems to meet specific organizational requirements The most widespread
form of reuse is through the use of generic systems such as ERP and COTS systems that
are configured to meet specific organizational requirements In this paper he discussed
the implications of software construction by configuration (CbC) for software
engineering Based on his experience with systems for medical records and university
administration he highlighted some of the issues and problems that can arise in
construction by configuration he discussed problems that arise in CbC projects and
identify a number of challenges for research and practice to improve this approach to
software engineering [104]
37
SV Deshmukh and RR Lakhe (2008) in the research paper ldquoSix Sigma ndash An Innovative
Approach for Waste Reduction A Case Study of an Indian SMErdquo present a case study
aimed at reducing waste at an SME engaged in manufacturing of corrugated boxes The
Define Measure Analyze Improve Control strategy of Six Sigma methodology was
followed to identify probable causes for wastages After studying the system and
implementation of six sigma tools an overall 227 waste reduction was achieved
Individually out of a total seven processes 5 showed waste reduction in excess of 40
This reduction was statistically significant at Plt005 The study confirmed successful
implementation of six sigma to minimize waste generation and in terms saving in
manufacturing costs or increasing the bottom line [29]
While in ldquoERP Implementation Critical Success Factors - The Role and Impact of
Business Process Managementrdquo Yasar F Jarrar Abdullah Al-Mudimigh and Mohamed
Zairi (2000) investigate the role and impact of business process management in
successful ERP implementation The paper starts by defining business process
management ERP and the ERP critical success factors The impact of business process
management on successful ERP implementation is then assessed through looking at the
experiences of several organizations The paper concludes by highlighting best practices
for capitalizing on business process management for successful ERP implementation
[52]
M S Camara L Kermad and A El Mhamedi (2006) in the paper ldquoRisk Prediction in
ERP Projects Classification of Reengineered Business Processesrdquo maintain that
Companies have been implementing ERPs for almost ten years now and more the same
implementation problems continue to occur More and more ERP projectrsquos technological
challenges are accompanied by critical dimensions related to the management of the
transformational effects of these projects on the organization Indeed risk management in
this kind of project is not very structured and misses specific methods In this article they
propose a structured methodology for risk management particularly in the BPR (Business
Process Reengineering) sub-project of ERP implementation The final aim of our work is
to decease appreciably resistance to organizational change which poses the greatest
obstacle to business process reengineering efforts They propose to adapt OSR (Optimal
Set Reduction) a risk management method used in software development for the risk
38
management in ERP implementation They address specially the risk related to the
changes in enterprise processes in the ERP project To achieve this objective they
propose to define business process change metrics starting from business process
complexity metrics that exist in the literature [18]
ldquoExploration and Verification of Factors in the Front-end Stage of the ERP
Implementation Process Evidence from Case Study and Survey Researchrdquo Kun Shi and
Qiang Lu (2009) depict that ERP (Enterprise Resources Planning) is widely used to
improve business performance This paper explores how the factors associated with the
Front-end ERP Implementation Process (FEIP) affect the implementation outcome First
based on literature review a preliminary framework with 12 hypotheses is developed
Then Grounded Theory is applied for a case study to further extract and verify the factors
and sub-factors These factors are finally identified as strategic planning corporate
culture user characteristics organization-process-system maturity external expertise
engagementsupport and project preparation Furthermore the significance and
correlation of all the factors are detected by conducting survey research with SPSS as a
tool for analysis The study shows that the framework is valid and that among six three
factors have strong impact on the ERP implementation result whereas others are less
influential Implication is given and limitation is indicated at the end [63]
Huo Lingyu Liu Bingwu and Li Juntao (2009) in the paper ldquoAn ERP System Selection
Model Based on Fuzzy Grey TOPSIS for SMEsrdquo present a new fuzzy multi-criteria
decision making (FMCDM) approach which integrates the technique for order preference
by the similarity to ideal solution (TOPSIS) grey relation and fuzzy set theory for
enterprise resource planning (ERP) system evaluation and selection in the Small and
Medium-Sized Enterprises (SMEs) In this study the characteristic of the alternative with
respect to the criteria are represented in terms of a linguistic term set and the weight of
the criteria is described by triangular fuzzy numbers respectively According to the grey
theory and fuzzy set theory a closeness coefficient is defined to determine the ranking
order of all alternatives by calculating the grade of grey relation to the fuzzy positive-
ideal solution (FPIS) and fuzzy negative-ideal solution (FNIS) simultaneously Finally
an example is shown to highlight the procedure of the proposed method [48]
39
Gao Juntao Zhang Li Wang Zhiyao (2008) summarized their findings in ldquoDecision
Support for Handling Gaps between ERP functionalities and Organizational Needs A
Goal Reasoning based approachrdquo They found that in the process of selecting
commercial off-the-shelf (COTS) ERP systems it is inevitable to encounter gaps between
ERP software and organizational needs Gaps occur when COTS attributes do not exactly
match organizational needs and they make organizational users and software vendors in
the dilemma whether to adapt as-is business processes or to customize software
packages A decision support method for handling gaps is proposed in this paper Firstly
organizational goal-process models are built as the base for decision making Secondly
the idea of evidence theory is introduced into goal reasoning and a quantified algorithm is
proposed to evaluate the impacts of different business processes on high level goals
which are critical to make decision At last the risk is discussed to rank intervals which
specify the expected utilization of business processes [56]
Yvonne Dittrich and Sebastien Vaucouleur (2009) conducted a research on the topicrdquo
ERP Customization as Software Engineering Knowledge Sharing and Cooperationrdquo and
argue that Enterprise resource planning (ERP) systems must be configured and
customized to fit a specific company The authors discuss cooperation with regard to ERP
systems customization Enterprise resource planning (ERP) vendors provide multiple
configuration possibilities ranging from module selection to master data provision to
steer access rights for different users These configuration possibilities cover anticipated
variability If the customer requires adaptation beyond whatrsquos anticipated the source
code of the product must be adapted Customizations in this articlersquos context are source-
code-based adaptations of software products The size and complexity of customizations
range from simple report generation to developing independent add-ons that support
specific businessesmdashfor example solutions for flight carriers The size and lead time of
such projects can compare to a full-size software development project They present
empirical research on customization practices of ERP systems as an example of software
development based on customization of standard software They compared customization
with other development practices that are based on integrating existing code and results
underlined the need to rethink software engineering and programming methods and tools
[129]
40
In the paper study ldquoSignificance of Software Metrics in ERP Projectsrdquo S Parthasarathy
and N Anbazhagan (2006) narrate that ERP projects are a subclass of software projects
often accompanied by large-scale organizational changes One of the major reasons found
in the literature for the failure of ERP projects is the poor management of software
processes In this paper we propose a Software Metrics Plan (SNP) containing different
software metrics to manage software processes during ERP implementation Two
hypotheses have been formulated and tested using statistical techniques to validate the
SNP The statistical analysis of the collected data from an ERP project supports the two
hypotheses leading to the conclusion that the software metrics are momentous in ERP
projects [84]
Antony Marsh (2000) in the article ldquoThe implementation of Enterprise Resource Planning
systems in small and medium Manufacturing enterprises in south-east Queensland a case
study approachrdquo examines the implementation of ERP systems in smallmedium-sized
enterprises in South East Queensland Australia Nine case studies were conducted to
determine factors for success or failure in the implementations Key success factors
identified included cross-functional team approaches organizational experience of
similar scale IT or organizational change projects and lsquodeeprsquo understanding of the key
issues relating to ERP implementations Failure factors identified included top-down or
consultant driven implementations IT department driven implementations or
implementations where the EFV is seen as a quick technological fix to problems within
the operation of the firm rather than as a strategic investment [78]
Christian Doumlrner Sebastian Draxler Volkmar Pipek and Volker Wulf (2009) through
their study ldquoEnd Users at the Bazaar Designing Next-Generation Enterprise Resource
Planning Systemsrdquo propose that the bazaar metaphor has developed a lasting
popularity in software engineering especially as software architectures have evolved
from monoliths to service orientation Nevertheless the metaphor is limited because it
doesnt consider end users those who develop software for themselves Introducing such
an end user the prosumer to the bazaar not only suggests a changing division of work
in software development but also calls for different functionality and architectural
choices The authors evaluated changing software architectures from an end-user
development (EUD) perspective taking the case of enterprise resource planning (ERP)
41
systems as traditionally monolithically designed systems moving toward service
orientation On the basis of the studys findings which indicated problems with the
systems technical flexibility the authors developed a tool set for fostering EUD
activities Their new architecture for ERP systems enables end users to create their own
solutions [31]
Kenny KF Lee (2000) in ldquoThe Five Disciplines of ERP Software Implementationrdquo has
identified the critical factors in businesses which learn grow and succeed This paper
applies the central concepts of the book its five disciplines to the software business
specifically the management of software implementation Using the learning challenge
posed by the organization-wide implementation of Enterprise Resource Systems (Em) the
paper covers how EM software project leaders may manage themselves their teams
business vision and corporate culture and team members to create a survival machine
which can thrive in the current economic and technological climate [67]
Piet MA Ribbers amp Schoo (2000) in his paper ldquoDesigning Complex Software
Implementation Programsrdquo raises a central question that how one can design of Program
Management contributes to the success of complex software implementations
Incomplete goal specifications lack of communication and underestimation of project
complexity are signs of insufficient program and project management To avoid these
pitfalls he proposes ways that have worked well in recent complex multi-project ERP
implementations (programs) Answering the above question raises the problem of
adequately defining and measuring the level of complexity of an implementation
program A conceptual model was developed which identifies program management
factors that are proposed to have an impact on implementation success Fifteen cases
were studied to find support for the proposed framework [88]
ldquoDetecting Gaps between ERP Software and Organizational Needs A Semantic
Similarity Based Approachrdquo is very relevant and contemporary paper presented by Gao
Juntao and Zhang Li (2008) It depicts that Gap analysis is one of the most important
phases in implementation of enterprise resource planning (ERP) system In this paper an
approach is proposed to automatically detect gaps between software capacities and
organizational needs based on semantic similarity computation The approach takes two
business process models as input and one specifies software capacities and the other
42
describes organizational needs The output of it is a report of gaps As a matter of fact
the differences between application domain and software discipline make semantic
heterogeneity a key problem in gap detection therefore the technologies of semantic
similarity computing are employed to resolve ambiguity issues caused by the use of
synonyms or homonyms In particular the idea of similarity propagation is introduced to
pick out a mapping between corresponding activities and data and Hungarian algorithm
is employed to reduce its time complexity Then the similarity of whole models is
measured according to the minimal total cost of change operations Finally an
experiment is given to evaluate the method [36]
In the research publication ldquoERP System Adoption - Does the Size Matterrdquo Sanna
Laukkanen Sami Sarpola and Petri Hallikainen (2005) investigate the relationship of
enterprise size to the constraints and objectives of ERP systems adoption The survey
data based on the responses of 44 companies indicates that significant differences exist
between small medium-sized and large enterprises in ERP system adoption Specifically
the findings suggest that small companies experience more knowledge constraints than
their larger counterparts in ERP adoption Further while being the most prevalent
objective for ERP adoption in all the company groups business development through
ERP adoption is considered especially important by the medium-sized and large
enterprises Finally the findings of the study suggest that instead of considering small
and medium-sized enterprises as one homogenous group the differences between these
two groups of companies should be acknowledged in the future research [65]
In their paper ldquoModel Based on CSCWrdquo Wedian Liang XuFen Zhenkun Li Rong Xiao
JunFeng Hu (2005) summarise their finding They feel that Software testing is an
important component of the software engineering and an important link that the software
development quality is guaranteed Using the reasonable model for software testing can
reduce the expenses of testing in the developing activity in the course of testing thus cut
down the cost of software development In this paper we put forward a model for
software testing bused on CSCW technology that run through each stages of software
development cycle If can find the mistake in the software as soon as possible has
shorten the time taken for testing in the course of the development of software testing
43
effectively Finally we applied the model to the testing project which develops ERP
system and then receive the ideal result [118]
In their paper ldquoThe Research and Development of IMIS for Small and Medium-sized
Printing Enterpriserdquo Taolin Ma Xiaoming Chen Yansong Sun Xiurong Li (2009)
analyzed the fact that the basic management thought of inventory management
information system (IMIS) was established by analyzing the inventory management
theory of modern enterprise In this system which using the architecture of CS the stores
were classified by ABC management method the inventory control was completed by
setting up the safety stock and the largest stock the analysis and design of IMIS were
finished This IMIS was developed to meet the practical requirements of small and
medium-sized printing enterprise in our country It can not only be used as the important
measure of the informationized construction for small and medium sized printing
enterprise but also used as a subsystem of enterprise ERP system IMIS could improve
enterprise management level realize rapid transformation of enterprise and finally
enhance the competitiveness of enterprise in market economy [106]
Jiangao Deng and Yijie Bian (2008) in the research paper ldquoConstructing a Risk
Management Mechanism Model of ERP Projectrdquo mention that in the process of
information project implementation of manufacturing enterprises there are many risks to
set up a set of risk management mechanism is guaranteed for them to succeed in ERP
implementation Firstly based on the analysis of ERP project implementation of China
the paper introduced the risk management methodology systems and the relative model
which includes three main steps identifying risk evaluating risk and controlling risk
After that on the aspects of decision implementation and application stages of
manufacturing ERP project life cycle the paper discussed risks of each stage and put
forward a two-dimension matrix risk management strategy Then a mechanism model of
ERP project risk management is constructed which shows that information risk control
strategies of the last two stages not only depend on resources of these stages but also
have a diverse relationship with the last stage Finally according to the successful
implementation of an enterprisersquos ERP project the paper carried out an effective case
application analysis of risk management mechanism model The lack of improvement in
usersrsquo ERP skill levels and the shortage in documenting the rationale for business rules
44
and configuration decisions were among the critical issues of the post-implementation
stage Indeed all of their respondents stressed the importance of refreshing the usersrsquo
knowledge about the system [28]
Saumyendu Ghosh (2003) in ldquoGlobal Implementation of ERP Software ndash Critical Success
Factors on Upgrading Technical Infrastructurerdquo discusses that implementing an
Enterprise Resource planning (ERP) software in a global environment executive
sponsors face two key challenges While business processes are to be re-engineered to
align with the ERP software best practices technical architecture and infrastructure needs
to be in place globally as per specifications of the packaged software In the legacy
environment different countries or different business units use different systems based
on local standards supported by local resources In the new ERP world globally all the
countries must conform to same technical infrastructure Technical managers face
multiple critical issues implementing a global solution Most of the ERP software is
developed in technically advanced countries standards are often too high for under
developed or developing countries In an effort to bring the global organization to a
common platform different countries need different levels of upgrades In this paper the
authors review key technical issues faced is a global upgrade process to support a global
ERP implementation and how to resolve those We conclude although technical
infrastructure and business process reengineering both are equally important and each
implementation is unique but following some simple steps it is easy to prioritize each
ones during different phases of the project Also time lines of two sub-projects must
converge after initial phase and must follow a common plan for the project to be
successful Multiple scenarios are described to facilitate the process He concludes
although technical infrastructure and business process reengineering both are equally
important and each implementation is unique but following some simple steps it is easy
to prioritize each ones during different phases of the project Also time lines of two
subprojects must converge after initial phase and must follow a common plan for the
project to be successful Multiple scenarios are described to facilitate the process [38]
Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008) ldquoDevelopment and
Implementation of ERPCRM System Based on Open Source Software to Small and
Medium-sized Enterprise in Chinardquo analysed the fact that E-commerce and the
45
development of modern enterprise management raise a number of challenges in the
process of informatization of small and medium-sized enterprises (SME) in china To
address this they present an approach in which the informatization is enhanced by using
Open Source Software with customized policies We analyses the main
informationization obstacles of SME in china bring forward that the lack of bankroll
talents cost and management etc are the key problems to informationization of SME
Furthermore they have developed a textile foreign trade ERP CRM system based on
Open Source Software for the local textile distributor of china integrating financial
distribution sales and service processes given the implement method of overall planning
step-by-step implementation key breakthrough and efficiency guiding In the end we
compare the typical Open Source Software and traditional commercial software point
out the advantages of informatization based Open Source Software to SME in china and
the development trend of Open Source Software for enterprise application [132]
ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information Systems ndash a
Multi-disciplinary Method for ERP System Requirements Engineeringrdquo by Inka Vilpola
Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that ERP systems are in
most cases off-the-shelf software packages and large by their size and complex by their
structure Small and medium-sized enterprises (SMEs) require flexibility of the ERP
system because of their individual operational processes Therefore it is crucial to select
and implement an ERP system that fits the requirements of the intended target processes
To support the requirements engineering of ERP systems we have developed Customer-
Centered ERP Implementation (C-CEI) method The method introduces a multi-
disciplinary approach to the ERP project and provides in-depth understanding of the
companylsquos processes and context of use Using C-CEI method decreases the risk of
SMEs to select an inappropriate system and improves the system acceptance by the
customer companyrsquos employees In this paper we present the method and illustrate it by
three SME case studies [114]
Saumyendu Ghosh (2000) in ldquoChallenges on a global implementation of ERP softwarerdquo
discusses that some of the unique challenges in ERP implementation are satisfying
multiple countries statutory requirements and reporting to the corporate head quarters
from one installation of the software conflicting interests between different business
46
entities lack of experienced implementators in all the countries and eminent users of
multinational advantages He discusses different aspects of these challenges in detail and
point out that ERP software can provide only one solution for a particular business
process unless workarounds are available from experienced implementation Different
counties adopt different reporting and accounting practices and therefore an ERP
implementation cannot solve all problems that global corporation may have multiple
countries in the scope of the project due to absence of standard global processes across
the organization He concludes that the most important critical success factor of these
international implementations are how quickly these corporations can reengineer existing
business process to adopt best practices of using an ERP system [38]
Dong Cheng Feiyan Deng Hongtao Li (2006) ldquoCritical Factors for Successful
Implementation of ERP in Chinardquo in their study propound a theoretical model for
successful implementation of Enterprise Resource Planning (ERP) under Chinarsquos
environment and the authors analyze the model empirically through structural equation
modeling The authors find that strategically IT planning abilities leadershiprsquos support
and the skills of IT section business processing abilities learning abilities and change
management abilities has a significant positive impact on successful ERP implementation
[22]
Parijat Upadhyay (2008) in his research studies ldquoAn explorative study to identify the
Critical Success Factors for ERP Implementation in Indian small and medium scale
enterprisesrdquo explores the existing literature on ERP implementation issues in context to
small and medium scale enterprises and attempts a compilation of the factors that assume
great significance while implementing ERP in SMErsquos Given the nature and magnitude of
the problems in encountered in implementing an ERP project this study would attempt to
identify the critical success factors(CSFrsquos) for a successful implementation of an ERP
project since it calls for substantial effort on the part of all the stake holders involved to
make the implementation a success [111]
ldquoThe ERP Implementation of SME in Chinardquo Yuanqiang Xia Peter Lok and Song Yang
(2009) presented the fact that ERP implementing for small and middle size enterprise
(SME) is different from the large one Based on the analysis on the character of ERP
marketing and SMEs of China 6 critical success factors are recommended The research
47
suggests that the top management support is most important to ERP implement in SME
of China in which paternalism prevails Database of management and capital are main
obstacles ERP 1 or ERP 2 fits to demand of SME high power project team has
tremendous significance in the situation of absence of IT engineer for SME education
and training is helpful to successfully ERP implementing The results service as better
understanding the ERP implementation of SME in China and gaining the good
performance of ERP implementation [126]
Yan Xu and Chung-Hsing Yeh (2009) in the article ldquoStrategic Management of
Performance Measures for an ERP Implementation Project Teamrdquo present a new
evaluation model for managing performance measures of an enterprise resource planning
(ERP) implementation project team in an organization With the performance measures
classified into four strategic perspectives of the balanced scorecard the evaluation model
enables the goal alignment between the project team and the organization A new
algorithm using the concept of multi-attribute decision making is developed to obtain the
relative importance value for each performance measure for its contribution to the
strategic goals of the organization The higher the importance values of a performance
measure the more important the role it plays in determining the responsibilities of the
corresponding project team player Understanding the importance of the key performance
measures will help an organization well-prepare to launch a project and have the project
being organized in advance A case of an ERP implementation project in an integrated
manufacturing corporation is presented to demonstrate the applicability of the evaluation
model and its effective management of the performance measures [124]
Zhang Yanhong (2009) in his research paper ldquoERP Implementation Process Analysis
Based on the Key Success Factorsrdquo describes that Enterprise Resource Planning (ERP) is
an amalgamation of a companys information systems designed to bind more closely a
variety of company functions including human resources inventories and financials
while simultaneously linking the company to customers and vendors This thesis is based
on the theory of product life cycle and the process of ERP is divided into four phase
planning implementation stabilization and improvement Critical success factors in each
phase are identified by paper research case study and investigation An ERP
implementation process model based on the critical Success factors (CSFs) is proposed in
48
the paper The thesis analyzes the global planning stages and business process rebuilding
in the process of QIHE pharmaceuticals ERP Improvement on management and
financing before and after ERP implementation are contrasted and we come to the
following conclusions (1) The CSFs in the planning phase is comprehensive
investigation and evaluation (2) The CSFs in the implementation phase is effective
project management team (3) The CSFs in the stabilization phase is appropriate
information management system (4) The CSFs in the improvement phase is change on
demand and continue to innovate (5) The CSFs throughout the product life cycle is
business process rebuilding [131]
Van Stijn E and Wensley A (2001) ldquoOrganizational memory and the completeness of
process modeling in ERP systems some concerns methods and directions for future
researchrdquo mentioned that Enterprise resource planning (ERP) systems not only have a
broad functional scope promising to support many different business processes they also
embed many different aspects of the companyrsquos organizational memory Disparities can
exist between those memory contents in the ERP system and related contents in other
memory media such as individualsrsquo memories and the organizational structure and
culture It is our contention that in general these disparities or memory mismatches as
we will refer to them lead to under-performance of ERP systems In this paper they focus
on potential memory mismatches that may arise with respect to the embedding of process
knowledge within ERP packages Packages such as SAP provide a varied and rich
environment for process modeling However they suspect that there are still many
instances where process knowledge is either lost or represented in different ways in
different parts of the organization The overall thrust of the paper is to identify a variety
of concerns intriguing questions and avenues for future research [112]
Eric Kimberling (2008) in his article ldquo The Role of Lean Six Sigma in ERPrdquo insisted
that there are a number of things to consider when considering a new ERP system like six
sigma lean manufacturing or other business transformation projects that has the capacity
to measure reducing waste managing change well continuous improvement etc [133]
William H Gaw (2010) ldquoEight Basics of Lean Six Sigma for Manufacturing Firmsrdquo In
the efforts to draw closer to customers many manufacturers have lost focus on what
should be a companyrsquos primary success factor ndash profitable growth In todayrsquos competitive
49
manufacturing environment it takes more than quick fixes outsourcing and downsizing
for companies to consistently achieve their growth and profit objectives While these
options may yield temporary financial relief they will not lead the way to long-term
growth and profitability For companies to grow and consistently exceed bottom line
expectations they need to get lean And to get lean they should master eight basics of
Lean Six Sigma in the form of information integrity performance measurement
sequential production point-of-use logistic cycle time management production linearity
and resource planning and customer satisfaction [134]
Brehm L and Markus M L (2000) in The Divided Software Life Cycle of ERP
Packages mentioned that traditional information system life cycle (SLC) focuses on the
activities performed by company developing implementing and maintaining software for
its own internal use Enterprise resource planning (ERP) software packages change the
SLC in several important ways This paper presents an extension of the SLC model for
ERP packages The lsquodivided software life cyclersquo (DSLC) model features an equal
emphasis on the activities performed by the ERP adopting company and the ERP vendor
[15]
Alavi M and Carlson P (1992) A Review of MIS research and disciplinary
development The perceived status of journals in which MIS research is published is an
important issue to academics The number of IS-related journals has increased through
the years yet it is not obvious which are the ldquoleadingrdquo journals or what criteria should be
used to determine this This article addresses these issues by (1) evaluating and
analyzing previous studies in which MIS related journals have been ranked (2)
determining top-ranked journals and placing them into two levels or tiers based on
previous studies and (3) establishing a profile through a systematic analysis of the nine
journals in the first tier This study identified 17 highly ranked journals for publication
Nine were placed in the first tier and eight in the second tier In addition to IS-specific
journals publications included management science computer science and business-
oriented journals The individual strategies for improving software productivity are
identified Issues related to software costs and controlling them are examined and
discussed It is pointed out that a good framework of techniques exists for controlling
software budgets schedules and work completed but that a great deal of further progress
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 12
23
will consider strategic business capabilities as the drivers for enterprise resource planning
(ERP) investment justification In a 2005 study that AMR Research conducted with over
550 companies regarding their ERP investment plans and found that only 27 of small
companies (fewer than 500 employees) are currently using ERP This is in sharp contrast
to the 57 of large companies (500 to 2499 employees) and 70 of enterprise-sized
companies (2500-plus employees) that have operational ERP systems Given this data it
is not surprising that almost 50 of the respondents interviewed will be making
substantial changes to their existing ERP systems over the next 12 to 18 months The
challenge for executives charged with the decision is establishing a powerful context for
making the ERP investment [20] When considering the ERP investment decision from
the perspective of the executive suite there are four overarching drivers that frame what
executives need to consider
1 Productivitymdashgetting the most from your valuable employee assets
2 Connectivitymdashworking collaboratively with your key customers and suppliers
3 Business insightmdashImproving the speed and quality of decision making
4 Total cost of ownershipmdashreducing the cost of owning and operating IT systems
Yong Jean John amp Ki-Henry Yim (2001) in an article ldquoA study on an Environment of
ERP Introductionrdquo includes the role of ERP perception of ERP value ERP plan
direction and also argues various checkpoints as a preview of ERP introduction In
conclusion they list checkpoints in sequence based on the mean values that provides
indications of the relative importance As a result the most important checkpoints were
Performance of Introduction Main Reference Sites Availability of Current Resources
Easiness of Introduction Operation System Past Records of Supply Market Share and
Vendor Size The results shown in this paper has shown strong implications for ERP
vendors Vendor size and market share received the least attention amongs all the
checkpoints described in the study [125]
One step forward IQMS Executive White Paper (2007) ldquoHow Successful ERP Selections
are Made ldquo this paper is not just about want and donrsquot want from the various people in
the organization It suggests that it should be a long lasting purchase that provides the
users the feeling of a partnership As the user is not just buying software they are also
buying into a vendor and their company culture The combination of software capability
24
and vendor credibility should be a major purchasing factor There is more to a lasting
ERP purchase than that There are several platform thoughts on technology how many
vendors are included the demonstration the always useful buzz words with all the hype
on service oriented architecture (SOA) best of breed lean manufacturing and all the
other phrases floating in the industry today implementation time customer referrals
customer retention look at your company objectively etc [49]
Robert C Beatty amp Craig D Williams (2006) in ldquoBest Practices for Successfully
Implementing an ERP Upgraderdquo maintain that an ERP upgrade is deceptively complex
and can be daunting especially for organizations ignorant of the massive effort required
to do it correctly One study of mid-size to large companies conducted by AMR Research
found that 67 of these companies are implementing some form of ERP while another
21 are evaluating potential ERP systems solutions As a growing number of companies
adopt ERP systems ERP systems implementation and upgrades are identified as one of
the top five IT priorities among global CIOs according to independent surveys conducted
by Morgan Stanley and Deloitte amp Touche IDG Research Services Group In
conclusion this article provides organizations with a list of the eight most common
recommendations suggested by organizations that have already completed at least one
upgrade to their initial ERP implementation [11] These are
Finding 1 Build your business case on new functionality
Finding 2 Treat the upgrade like a new project
Finding 3 Keep the team together
Finding 4 This is a business project not an IT project
Finding 5 Watch for hidden infrastructure costs
Finding 6 Un-customize customizations
Finding 7 Test like your organizationrsquos future success depends on it
Robert Davison (2002) raises a valid point through his article ldquoCultural Complications of
ERPrdquo discussed cultural misfits from a Singaporean perspective This implies that a one-
size-fits all or one-business-model- fits-all approach is unlikely to be successful As much
of ERP literature originates from and describes application contexts in North America
and to a lesser extent Western Europe where most ERP developers are located and
implementations have occurred Developers and consultants need to adapt their products
25
and services for different cultural markets Awareness of cultural differences and prefer-
ences will certainly improve the assessment of ERP suitability and any subsequent
implementation [27]
A group of researchers Siew Kien Sia May Tang Christina Soh Wai Fong Boh (2002)
from Information Management Research Center Nanyang Business School in their
research paper ldquoEnterprise Resource Planning (ERP) Systems as a Technology of Power
Empowerment or Panoptic Controlrdquo explores ERP as an ambivalent technology of
power According to them on the one hand it may tighten management control by
bringing a new level of panoptic visibility to organizational activities on the other hand
the embedded business model within the ERP may drive empowerment of employees and
greater control relaxation through the configuration of new process design This research
seeks to understand how the different forces play out in the context of ERP
implementation and to explore the implications for traditional power distribution in
organizations It adopted a mixed qualitative-quantitative methodology in an intensive
case study of a restructured hospital in Singapore A survey of 260 users was
administered supplemented by approximately 27 hours of individual interviews with 23
people Results reveal that although ERP can facilitate both empowerment and panoptic
control management has consciously resisted empowerment by working to reinstitute the
power lost through the ERP implementation On the other hand the new panoptic
visibility though partially unintended appears to have evolved naturally and was readily
learned and applied in the organization This study is significant in exposing the
likelihood of ERP implementation as a technology that perpetuates management power
At least in the context of the hospital studied it is yet another means of enlarging the
management authority for ldquototal controlrdquo Current articulations of ERP by practitio-
nersmanagement as empowering thus appear to be more theoretical than real This is
consistent with the perspective of critical theorists (eg Sewell amp Wilkinson 1992
Weber 1947 Tannenbaum 1968) that organizational life will become increasingly
rationalized and more controlled Thus the findings support the critical perspective in
exposing the likelihood of ERP implementation to perpetuate management power Being
a single case study the external generalization of the above analysis is limited Future
research should be sensitive to the formative context (eg the nature of the pre-existing
26
structure the Asian cultural context) and the distribution of authority among
organizational actors (eg presence of management intention) in an organization The
dynamics of panoptic control and empowerment during ERP implementation may be
different in organizational transformation contexts or in organizations with more fluid or
organic pre-existing structures It may also be interesting to follow the analysis of
panoptical and empowerment over an extended period to get a better understanding of
their continuously evolving dynamics [98]
Suprateek Sarker and Allen S Lee (2003) in the paper ldquoUsing a Case study to test the
role of three key social enablers in ERP implementationrdquo indicate that three key social
enablersmdashstrong and committed leadership open and honest communication and a
balanced and empowered implementation teammdashare necessary conditionsprecursors for
successful ERP implementation In a longitudinal positivist case study we find that
while all three enablers may contribute to ERP implementation success only strong and
committed leadership can be empirically established as a necessary condition This
presents a challenge to future ERP researchers for resolving apparent contradictions
between the existing literature and the results of our analysis and for investigating the
nature of interactions among the leadership communication and team characteristics
[93]
Srinivas Mantha (2007) in the article ldquoERPndashBusiness Processes with IP
Communicationsrdquo explained the fact that the key to new competitive capability is
envisioning the enterprise in terms of business wide relationships to improve user
experience across the network exploit knowledge and enhance and accelerate core
processes IP Communications is the catalyst for this capability It enhances the value of
the user experience exploits knowledge value and increases the value of business
processes [76]
Linda Askenaumls amp Alf Westelius (2000) from Linkoumlping University Sweden explore
a new vista of ERP through their literature ldquoFive Roles of an Information System A
Social Constructionist Approach to Analyzing the use of ERP Systemsrdquo This paper
presents a novel way of thinking about how information systems are used in
organizations Traditionally computerized information systems are viewed as objects In
contrast by viewing the information system as an actor our understanding of the
27
structure process increases The user being influenced by the ERP (Enterprise Resource
Planning) system and giving it an actor role thereby also confers agency on the ERP
system Through its very use it influences actions and thus the structure as well Based
on a case study of ERP use in an ABB company for over a decade five different roles
played by the ERP system were identified The ERP system acted as Bureaucrat
Manipulator Administrator and Consultant or was dismissed (Dismissed) in the sense
that intended users chose to avoid using them In conclusion the purpose of this approach
is not to ldquoanimaterdquo the information system to give it life or a mind of its own but rather
to make explicit the socially constructed roles conferred on the information system by
users and others who are affected by it On this basis it is possible to suggest how the
roles can help us opening up the new areas of exploration concerning the fruitful use of
information technology [70]
Jinyoul Lee Keng Siau and Soongoo (2003) conducted a study on the topic ldquoEnterprise
Integration with ERP and EAIrdquo They state that to survive and thrive in these hypercom-
petitive markets it is essential for a company to understand rapidly changing business
circumstances To rapidly respond to a changing environment an enterprise must
integrate business functions into a single system efficiently utilizing information
technology and share data with third-party vendors and customers While ERP forces the
adoption of standard business processes EAI enables enterprise integration over business
object levels ERP thereby supports a centralized business strategy while EAI naturally
accommodates decentralized business processes Lastly they observe the fact True
enterprise integration means both technical and behavioral integration It is not simply
integrating different systems applications or business processes dispersed across an
enterprise It is integrating structural changes different behaviors and various
information systems in an enterprise Enterprise integration is costly and time-
consuming thus management should be cautious in the design of the project
Organizations should not blindly rush into new technologies Top management should
first strive to understand their business and needs for enterprise integration and then
select a methodology of enterprise integration [68]
Wilhelm Scheer and Frank Habermann (2000) in ldquoMaking ERP a Successrdquo have used
business process models at an operational level of e-business to achieve positive results
28
They have talked of different scenarios in e-business As in Business-to-Business
applications such as Supply Chain Management the user has to connect the ERP systems
of all business partners This means he has to fight not only with the thousands of
parameters of a single ERP system but with twice as much (or even more) Another likely
scenario is that the business partners involved in an inter-organizational supply chain are
using ERP systems of different vendors In this case a business process model can be
firstly used to define the conceptual value chain Secondly the conceptual model that is
independent from a certain software vendor can be linked to the repositories of the
different ERP systems in order to customize an integrated software solution These
examples demonstrate that business process models play a major role for the success of e-
business Some ERP vendors like SAP have understood this development and are already
implementing their first model-based e-business applications [94]
Ash CG (2001) in An e-Commerce Model for Extending ERP Systems onto the
Internet An Australian Perspective stated that an established research framework of e-
Business change is used to identify the factors for success of this e-business project
within an ERP environment The results confirm that a successful project was found to
have facilitators in all components of the business framework including the change
environment and project management Further there is the implication that the least
successful e-business projects will have inhibitors in both dimensions especially in the
area of cultural readiness and change management In this case study conflict arose
between local project management initiatives versus a centralized autocratic global ERP
deployment This highlights the need to encourage the balancing of conflicting
organizational knowledge when contemplating the adoption of e-business solutions [7]
Huigang Liang Yajiong Xue William R Boulton Terry Anthony Byrd (2004) ldquoWhy
Western Vendors donrsquot dominate Chinarsquos ERP Marketrdquo Examined cases of failed ERP
system implementation in China and explaining the unique circumstances These foreign
ERP implementation failures emphasize the need to localize strategies even for the
global ERP leaders The general manager of a foreign ERP vendor explained ldquoOne
should understand nationrsquos history and its culture before one starts doing business with
foreign companiesrdquo The cases of failed implementation suggest global ERP vendors
require more than superior technology and experience Their ERP strategies must also
29
address the cultural differences affecting ERP implementations Strategies need to
overcome problems relating to language reporting formats and content cost control
capabilities frequent business process redesigns effective customer support and capable
consulting partners [69]
In the research findings ldquoAn Agency Theory Model of ERP Implementationrdquo Vedabrata
Basu Albert L Lederer (2004) develop a model of testable propositions for applying
agency theory to study the relationship between implementation consultants and client
organizations deploying the ERP systems and to consequently evaluate how the
relationship affects the implementation success Therefore management needs to know
the factors that drive successful ERP implementation a product of the continuous
interaction between the implementation consultants and client firms Agency theory has
been successfully used by different researchers to explain relationships between two
parties seeking a common outcome This paper develops a conceptual model with the
variables and relationships that may play a critical role in explaining the sources of that
frustration It offers a foundation for research that can extend the applicability of agency
theory can help clients and consultants manage their relationships during the
implementation process and thus help them enhance the probability of ERP systems
implementation success It may also be useful for managing other outsourced IS projects
that have implementation settings similar to ERP [10]
Christian Vogt (2002) ldquoIntractable ERP A Comprehensive Analysis of Failed Enterprise-
Resource ndash Planning Projectsrdquo makes an analysis of possible causes that led to the
disasters for ERP implementation failures and suggests software engineering processes
that help avoiding such outcomes The Model Based Architecting and Software
Engineering (MBASE) guidelines developed by Prof Barry Boehm and Daniel Port at
the Center for Software Engineering (CSE) at USC provide a base for these elaborations
for a long time SW Engineering experts have praised commercial-off-the-shelf (COTS)
packages as the panacea to complex software development Far from it the elaboration
in this survey shows that the deployment of COTS packages may be extremely intrinsic
one does not know whether some COTS software adheres to its interface specifications or
how deficient it is or how well its performance scales up as workload demand grows
The upshot is that COTS software will always be an alien element in the software to be
30
developed and it should be considered that way Dye-in-thendashwool COTS package ERP
systems exhibit plenty of dangers Only if appropriate risk management and enough time
for stepwise employment is provided for ERP system can be tamed [115]
In the research findings ldquoImplementing Best Practices in ERP for Small amp Medium
Enterprisesrdquo Rashmi Jha A K Saini and M N Hoda (2008) provides an interesting
insight into taking ERP implementation as a project and develops problem driven
approach to examine its complex phenomena The implementation process will be
divided into several components which will reflect the nature of ERP projects and makes
them distinctive from other systems design methods This paper also addresses critical
issues relating to developing entrepreneurship for sustainable development of small and
medium size enterprises(SMEs) for its future extensions and added benefits It may also
be useful for managing other outsourced Information System (IS) projects that have
implementation settings similar to ERP [53]
Saumyendu and Maya Daneva (2003) in ldquoLessons Learnt from Five Years of Experience
in ERP Requirements Engineeringrdquo summarizes one companyrsquos five years of experience
in making a generic ERP RE model a live process It rests on previously published ERP
RE process assessment results and reports on what we learnt with particular focus on
typical issues organizations face when adopting a standard model and solutions that can
be used to avoid those issues in the future Each of our lessons is described together with
a RE practice technical foundation for the practice and engineering techniques for the RE
practitioner The lessons were used to refine our Corporate Documentation Model a
process-focused and template-based ERP-architecture framework [40]
In ldquoResearch on Agent-Based Architecture of ERP For Small amp Medium-Size
Enterpriserdquo Rui-Xue Fu Zhan-Hong Xin and Can Chen (2007) suggests that with the
rapid development of information technology and the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward To address these problems a MAERP system architecture has been developed
in which the agents are classified into four types F-Agent for realizing an operation
application C-Agent for coordinating with other agents I-Agent for a communication
31
tool between the user and the MAERP system and T-Agent for performing specific tasks
and data collecting [35]
Xavier Franch and Juan Pablo Carvallo (2003) in the research paper Using Quality
Models in Software Package Selection found that the absence of structured descriptions
of quality features and user quality requirements makes selecting the right software
package difficult The authors propose a methodology for describing the quality features
of domain-specific software packages uniformly and comprehensively using ISOIEC
9126-1 quality standards as a framework [34]
In the paper study ldquoRevisiting ERP Systems Benefit Realizationrdquo Paul Hawking and
Andrew Stein (2004) maintains that many companies initially implemented their ERP
systems to solve Y2K and disparate systems issues These same companies are now
looking at a how to strategically leverages their investment in these systems through the
implementation ldquosecond waverdquo functionality This paper identifies the expected and
actual benefits of ldquosecond waverdquo implementations In addition it identifies barriers which
limit the benefit realization The findings reinforce that ERP implementations are people
focused projects which rely heavily on change management for success [45]
Hamid Nach and Albert Lejeune (2008) ldquoImplementing ERP in SMEs Towards an
Ontology Supporting Managerial Decisionsrdquo state that the purpose of this research
project is to consolidate and formalize as ontology on the basis of an extensive literature
review the key processes and skills required for successful implementation of ERP in an
SME Using the Proteacutegeacute software program the research identified and formalized 395
terms each of which has its own definition Exploitation of this ontology could take
multiple and varied forms including creation of a learning system an on-line cooperation
platform or a project management process mapping tool contributing to successful use of
ERP in SMEs [81]
While Gul Tekin Temur and Sitki Gozlu (2008) ldquoDetermination of Performance Criteria
for ERP Software Technologyrdquo mention that the main goal is to determine the
performance criteria for ERP software technology with respect to their sources Today
the companies are in interaction with many internal and external partners and have to face
many situations in various environments Especially many small and medium sized firms
utilize ERP software technology to plan their business interactions in the chain In this
32
study firstly a literature search is accomplished Then in order to reveal the performance
criteria a large-scale automotive company has been selected to conduct interviews with
managers Also the meeting reports of a few small and medium-sized companies have
been analyzed As a result of the analysis on findings the common views of the firms
about performance criteria are classified into four groups according to their sources such
as people technical managerial and economical The sub factors of these main criteria
are also taken into account in order to point out the origins of the criteria The results of
the study will provide insight to researchers and as well as to professionals in the practice
[108]
Maya Daneva (2004) in ERP Requirements Engineering Practice Lessons Learned
mentioned the fact that organizations implementing Enterprise Resource Planning (ERP)
systems have been increasingly adopting generic off-the-shelf requirements engineering
(RE) process models Yet little information exists about the challenges of making a
generic RE model a life process This article discusses why bringing an off-the-shelf
process in is not a sufficient foundation The author shares experiences acquired over the
past five years of eliciting modeling and validating requirements in ERP projects and
highlights typical issues and their solutions Among the keys to success are planning RE
model use in the clients context and installing processes to support key RE activities [25]
While the article ldquoRescuing Troubled Software Projects by Team Transformation A
Case Study with an ERP Projectrdquo by Kim Man Lui and Keith C C Chan (2008)
differentiates various reasons of ERP project failures It further states that many software
projects fail whether failure is measured in terms of budget schedule or some other
requirement The causes of such failures are many but are not always easily recognized
This is not the least due to the human dimension of corporate activities as spurious or
misdiagnosed issues in Enterprise Resource Planning (ERP) projects can take on a life of
their own and become a magnet for company politics This paper reports an industrial
case in which the senior management attempted to deal with a troubled ERP
implementation (SAP R3) in an international fast moving consumer goods (FMCG)
company during 2001 and 2002 This paper reflects this dimension as it uses original
emails and PowerPoint slides to recount a number of representative episodes in a troubled
but ultimately successful project At the heart of this success is the realization that
33
whereas it can be difficult and time-consuming to do root-cause analyses it is relatively
simple to identify problem owners In this case the senior management without IT
backgrounds turned around a failing project by reorganizing the team structure according
to process areas so that issues in each process area had one problem owner We
summarize the managementrsquos actions into a troubleshooting framework and in addition
suggest three actions for rescuing troubled projects keep the project manager but narrow
down the managerrsquos scope of responsibility to one or two process areas assign the right
people to be responsible for other process areas and have the General Manager chair the
ERP meetings [60]
In the PICMET 2006 Proceedings on ldquoOptimizing the Change Management of Enterprise
Resource Planning Systems Implementationsrdquo Onur Kerimoglu and Nuri BaUogluI
(2006) maintain that although Enterprise Resource Planning (ERP) systems are being
used widely all around the world they also carry out many problems as well as their
benefits These systems are well known for enhancing cross functional efficiency and
effectiveness through the integration of all information flowing throughout an
organization However during different project life cycle stages of ERP systems this
integration may not be provided because of the formulation of incompatibilities which
are greater than the optimum level among different parties like ERP system processes of
the organization and system users Within this study existing incompatibilities between
these parties are modeled respectively In common the model propose that the ERP
product mostly matching with the processes of the organization should be selected
processes of the organization should be changed for being compatible with the ERP
system and system users should be educated new qualified people should be hired etc
for making the system and processes more familiar to people Here the point is that all of
these are done for keeping incompatibilities between the ERP system processes and
people at minimum level because this minimalism will avoid optimization and utilization
problems This study not only handles problems of ERP from a newer perspective but
also provides insight to managers about managing the change and utilizing their resources
efficiently for adopting the ERP software across the organization [59]
Capaldo Guido and Rippa Pierluigi (2008) in ldquoA methodological proposal to assess the
feasibility of ERP Systems Implementation Strategiesrdquo stated that Continuous failures in
34
ERP systems implementation project are today the main challenge in the feasibility of
integrated information systems Failure can be determined by different factors both from
technological side and organizational side if not well managed In this paper we propose
a methodological approach based on technochange management in order to assess the
feasibility of ERP implementation strategy and reduce the risk of failure in terms of
project metrics and early operational metrics A case study in a big Italian
Telecommunication Firm will be presented [19]
ldquoCase Study of PLIVA Pharmaceuticals Inc - Aligning ERP System Implementation
with Business Process Changerdquo is very relevant and contemporary paper presented by
Vesna Bosilj Vuksic and Mario Spremic (2004) The main objective of this paper is to
present the impacts of information technology (IT) and enterprise resource planning
(ERP) systems in business process renovation projects A case study of business process
reengineering project and the implementation of the SAP software solution in PLIVA
(PLIVA pharmaceuticals Inc) are presented [116]
In ldquoKey Factors Driving the Success of Technology Adoption Case Examples of ERP
Adoptionrdquo Chonyacha Suebsin and Nathasit Gerdsri (2009) address the issues that
impact technology adoption within an organization Several factors influencing
technology adoption process are identified from the literature review Case examples of
the adoption of a new management technology Enterprise Resource Planning (ERP) are
presented to illustrate the situations of technology adoption in organizations From the
case examples the factors influencing technology adoption in organizations are
consistent with the factors identified from the literatures The further discussion also
reveals the additional determinants including the clarification of project scope individual
commitment and communication which should be taken into consideration when an
organization adopts a new technology [105]
Maya Daneva (2002) in her paper ldquoUsing Maturity Assessments to Understand the ERP
Requirements Engineering Processrdquo mentions that applying standard requirements
engineering (RE) processes is a major trend in todayrsquos Enterprise Resource Planning
(ERP) software engineering It emerged five years ago with the promise to provide a
mechanism helping ERP project organizations deliver their business requirements timely
and within budget This paper looks in depth at a standard ERP RE process and seeks
35
answers to four questions how well it is defined what are the risks associated with its
application in matureimmature organizations what are the essential practices that
contribute to its success and what are the costs of the process and the quality of the
delivered results The main motivation of this paper is to provide some practical advice
for using assessments to increase project teamsrsquo understanding of the ERP RE process
[26]
Fan JC and Kwoting Fang (2006) ldquoERP Implementation and Information Systems
Success A Test of DeLone and McLeans Modelrdquo present their research that develops
and tests a theoretical extension of DeLone and McLeans model of information system
(IS) success which explains personnel belief that contributes to users utilization of ERP
(enterprise resource planning) systems The extended model is tested using the structural
equation model (SEM) a survey of 202 end-users from ten Taiwanese enterprises that
has implemented Data Systems workflow ERP systems is conducted The theoretical
model proposed in this study provides insight into how the concept of useful perception is
incorporated into DeLone and McLean model and plays a critical mediated role to
influence system usage and its associated satisfaction The implications of these findings
for researchers and practitioners are discussed [32]
In the research findings ldquoManaging ERP Implementation Failure A Project Management
Perspectiverdquo Charlie C Chen Chuck C H Law and Samuel C Yang (2008) stated that
Information Technology (IT) projects are susceptible to changes in the business
environment and the increasing velocity of change in global business is challenging the
management of enterprise systems such as enterprise resource planning (ERP) At the
same time system success depends on the rigor of the project management processes
Scope creep poor risk management inadequate allocation of human resources over time
and vendor management are some common problems associated with the implementation
of an enterprise system These issues pose threats to the success of a large-scale software
project such as ERP This research adopts a case study approach to examine how poor
project management can imperil the implementation of an ERP system Having learned
the lessons from the failure of its first ERP implementation the company in this case
reengineered its project management practices to successfully carry out its second ERP
implementation Many critical project management factors contributed to the failure and
36
success of this companyrsquos ERP system This study explores and identifies critical
elements of project management that contributed to the success of the second ERP
implementation For those organizations adopting ERP the findings provide a roadmap
to follow in order to avoid making critical but often underestimated project management
mistakes [21]
Rafa Kouki Robert Pellerin and Diane Poulin (2008) in An Exploratory Study of ERP
Assimilation in Developing Countries The Case of Three Tunisian Companies assessed
that ERP systems could be considered as the most difficult systems to be assimilated
Very little research however has been realised to investigate the determinants of success
of the ERP assimilation process There has been also a dearth in research about ERP
projects in general and ERP post-implementation and assimilation in particular in
developing countries Using a case study methodology grounded in the diffusion of
innovation theory this study tries to understand the factors that could improve or
challenge the ERP systems assimilation process in three Tunisian companies Our
findings highlighted the importance of several factors such as top management support
strategic alignment IT expertise training communication organizational culture and
coercive pressures [62]
Ian Sommerville (2008) Construction by Configuration Challenges for Software
Engineering Research and Practice observed that past ten years have seen a radical shift
in business application software development Rather than developing software from
scratch using a conventional programming language the majority of commercial
software is now developed through reuse ndash the adaptation and configuration of existing
software systems to meet specific organizational requirements The most widespread
form of reuse is through the use of generic systems such as ERP and COTS systems that
are configured to meet specific organizational requirements In this paper he discussed
the implications of software construction by configuration (CbC) for software
engineering Based on his experience with systems for medical records and university
administration he highlighted some of the issues and problems that can arise in
construction by configuration he discussed problems that arise in CbC projects and
identify a number of challenges for research and practice to improve this approach to
software engineering [104]
37
SV Deshmukh and RR Lakhe (2008) in the research paper ldquoSix Sigma ndash An Innovative
Approach for Waste Reduction A Case Study of an Indian SMErdquo present a case study
aimed at reducing waste at an SME engaged in manufacturing of corrugated boxes The
Define Measure Analyze Improve Control strategy of Six Sigma methodology was
followed to identify probable causes for wastages After studying the system and
implementation of six sigma tools an overall 227 waste reduction was achieved
Individually out of a total seven processes 5 showed waste reduction in excess of 40
This reduction was statistically significant at Plt005 The study confirmed successful
implementation of six sigma to minimize waste generation and in terms saving in
manufacturing costs or increasing the bottom line [29]
While in ldquoERP Implementation Critical Success Factors - The Role and Impact of
Business Process Managementrdquo Yasar F Jarrar Abdullah Al-Mudimigh and Mohamed
Zairi (2000) investigate the role and impact of business process management in
successful ERP implementation The paper starts by defining business process
management ERP and the ERP critical success factors The impact of business process
management on successful ERP implementation is then assessed through looking at the
experiences of several organizations The paper concludes by highlighting best practices
for capitalizing on business process management for successful ERP implementation
[52]
M S Camara L Kermad and A El Mhamedi (2006) in the paper ldquoRisk Prediction in
ERP Projects Classification of Reengineered Business Processesrdquo maintain that
Companies have been implementing ERPs for almost ten years now and more the same
implementation problems continue to occur More and more ERP projectrsquos technological
challenges are accompanied by critical dimensions related to the management of the
transformational effects of these projects on the organization Indeed risk management in
this kind of project is not very structured and misses specific methods In this article they
propose a structured methodology for risk management particularly in the BPR (Business
Process Reengineering) sub-project of ERP implementation The final aim of our work is
to decease appreciably resistance to organizational change which poses the greatest
obstacle to business process reengineering efforts They propose to adapt OSR (Optimal
Set Reduction) a risk management method used in software development for the risk
38
management in ERP implementation They address specially the risk related to the
changes in enterprise processes in the ERP project To achieve this objective they
propose to define business process change metrics starting from business process
complexity metrics that exist in the literature [18]
ldquoExploration and Verification of Factors in the Front-end Stage of the ERP
Implementation Process Evidence from Case Study and Survey Researchrdquo Kun Shi and
Qiang Lu (2009) depict that ERP (Enterprise Resources Planning) is widely used to
improve business performance This paper explores how the factors associated with the
Front-end ERP Implementation Process (FEIP) affect the implementation outcome First
based on literature review a preliminary framework with 12 hypotheses is developed
Then Grounded Theory is applied for a case study to further extract and verify the factors
and sub-factors These factors are finally identified as strategic planning corporate
culture user characteristics organization-process-system maturity external expertise
engagementsupport and project preparation Furthermore the significance and
correlation of all the factors are detected by conducting survey research with SPSS as a
tool for analysis The study shows that the framework is valid and that among six three
factors have strong impact on the ERP implementation result whereas others are less
influential Implication is given and limitation is indicated at the end [63]
Huo Lingyu Liu Bingwu and Li Juntao (2009) in the paper ldquoAn ERP System Selection
Model Based on Fuzzy Grey TOPSIS for SMEsrdquo present a new fuzzy multi-criteria
decision making (FMCDM) approach which integrates the technique for order preference
by the similarity to ideal solution (TOPSIS) grey relation and fuzzy set theory for
enterprise resource planning (ERP) system evaluation and selection in the Small and
Medium-Sized Enterprises (SMEs) In this study the characteristic of the alternative with
respect to the criteria are represented in terms of a linguistic term set and the weight of
the criteria is described by triangular fuzzy numbers respectively According to the grey
theory and fuzzy set theory a closeness coefficient is defined to determine the ranking
order of all alternatives by calculating the grade of grey relation to the fuzzy positive-
ideal solution (FPIS) and fuzzy negative-ideal solution (FNIS) simultaneously Finally
an example is shown to highlight the procedure of the proposed method [48]
39
Gao Juntao Zhang Li Wang Zhiyao (2008) summarized their findings in ldquoDecision
Support for Handling Gaps between ERP functionalities and Organizational Needs A
Goal Reasoning based approachrdquo They found that in the process of selecting
commercial off-the-shelf (COTS) ERP systems it is inevitable to encounter gaps between
ERP software and organizational needs Gaps occur when COTS attributes do not exactly
match organizational needs and they make organizational users and software vendors in
the dilemma whether to adapt as-is business processes or to customize software
packages A decision support method for handling gaps is proposed in this paper Firstly
organizational goal-process models are built as the base for decision making Secondly
the idea of evidence theory is introduced into goal reasoning and a quantified algorithm is
proposed to evaluate the impacts of different business processes on high level goals
which are critical to make decision At last the risk is discussed to rank intervals which
specify the expected utilization of business processes [56]
Yvonne Dittrich and Sebastien Vaucouleur (2009) conducted a research on the topicrdquo
ERP Customization as Software Engineering Knowledge Sharing and Cooperationrdquo and
argue that Enterprise resource planning (ERP) systems must be configured and
customized to fit a specific company The authors discuss cooperation with regard to ERP
systems customization Enterprise resource planning (ERP) vendors provide multiple
configuration possibilities ranging from module selection to master data provision to
steer access rights for different users These configuration possibilities cover anticipated
variability If the customer requires adaptation beyond whatrsquos anticipated the source
code of the product must be adapted Customizations in this articlersquos context are source-
code-based adaptations of software products The size and complexity of customizations
range from simple report generation to developing independent add-ons that support
specific businessesmdashfor example solutions for flight carriers The size and lead time of
such projects can compare to a full-size software development project They present
empirical research on customization practices of ERP systems as an example of software
development based on customization of standard software They compared customization
with other development practices that are based on integrating existing code and results
underlined the need to rethink software engineering and programming methods and tools
[129]
40
In the paper study ldquoSignificance of Software Metrics in ERP Projectsrdquo S Parthasarathy
and N Anbazhagan (2006) narrate that ERP projects are a subclass of software projects
often accompanied by large-scale organizational changes One of the major reasons found
in the literature for the failure of ERP projects is the poor management of software
processes In this paper we propose a Software Metrics Plan (SNP) containing different
software metrics to manage software processes during ERP implementation Two
hypotheses have been formulated and tested using statistical techniques to validate the
SNP The statistical analysis of the collected data from an ERP project supports the two
hypotheses leading to the conclusion that the software metrics are momentous in ERP
projects [84]
Antony Marsh (2000) in the article ldquoThe implementation of Enterprise Resource Planning
systems in small and medium Manufacturing enterprises in south-east Queensland a case
study approachrdquo examines the implementation of ERP systems in smallmedium-sized
enterprises in South East Queensland Australia Nine case studies were conducted to
determine factors for success or failure in the implementations Key success factors
identified included cross-functional team approaches organizational experience of
similar scale IT or organizational change projects and lsquodeeprsquo understanding of the key
issues relating to ERP implementations Failure factors identified included top-down or
consultant driven implementations IT department driven implementations or
implementations where the EFV is seen as a quick technological fix to problems within
the operation of the firm rather than as a strategic investment [78]
Christian Doumlrner Sebastian Draxler Volkmar Pipek and Volker Wulf (2009) through
their study ldquoEnd Users at the Bazaar Designing Next-Generation Enterprise Resource
Planning Systemsrdquo propose that the bazaar metaphor has developed a lasting
popularity in software engineering especially as software architectures have evolved
from monoliths to service orientation Nevertheless the metaphor is limited because it
doesnt consider end users those who develop software for themselves Introducing such
an end user the prosumer to the bazaar not only suggests a changing division of work
in software development but also calls for different functionality and architectural
choices The authors evaluated changing software architectures from an end-user
development (EUD) perspective taking the case of enterprise resource planning (ERP)
41
systems as traditionally monolithically designed systems moving toward service
orientation On the basis of the studys findings which indicated problems with the
systems technical flexibility the authors developed a tool set for fostering EUD
activities Their new architecture for ERP systems enables end users to create their own
solutions [31]
Kenny KF Lee (2000) in ldquoThe Five Disciplines of ERP Software Implementationrdquo has
identified the critical factors in businesses which learn grow and succeed This paper
applies the central concepts of the book its five disciplines to the software business
specifically the management of software implementation Using the learning challenge
posed by the organization-wide implementation of Enterprise Resource Systems (Em) the
paper covers how EM software project leaders may manage themselves their teams
business vision and corporate culture and team members to create a survival machine
which can thrive in the current economic and technological climate [67]
Piet MA Ribbers amp Schoo (2000) in his paper ldquoDesigning Complex Software
Implementation Programsrdquo raises a central question that how one can design of Program
Management contributes to the success of complex software implementations
Incomplete goal specifications lack of communication and underestimation of project
complexity are signs of insufficient program and project management To avoid these
pitfalls he proposes ways that have worked well in recent complex multi-project ERP
implementations (programs) Answering the above question raises the problem of
adequately defining and measuring the level of complexity of an implementation
program A conceptual model was developed which identifies program management
factors that are proposed to have an impact on implementation success Fifteen cases
were studied to find support for the proposed framework [88]
ldquoDetecting Gaps between ERP Software and Organizational Needs A Semantic
Similarity Based Approachrdquo is very relevant and contemporary paper presented by Gao
Juntao and Zhang Li (2008) It depicts that Gap analysis is one of the most important
phases in implementation of enterprise resource planning (ERP) system In this paper an
approach is proposed to automatically detect gaps between software capacities and
organizational needs based on semantic similarity computation The approach takes two
business process models as input and one specifies software capacities and the other
42
describes organizational needs The output of it is a report of gaps As a matter of fact
the differences between application domain and software discipline make semantic
heterogeneity a key problem in gap detection therefore the technologies of semantic
similarity computing are employed to resolve ambiguity issues caused by the use of
synonyms or homonyms In particular the idea of similarity propagation is introduced to
pick out a mapping between corresponding activities and data and Hungarian algorithm
is employed to reduce its time complexity Then the similarity of whole models is
measured according to the minimal total cost of change operations Finally an
experiment is given to evaluate the method [36]
In the research publication ldquoERP System Adoption - Does the Size Matterrdquo Sanna
Laukkanen Sami Sarpola and Petri Hallikainen (2005) investigate the relationship of
enterprise size to the constraints and objectives of ERP systems adoption The survey
data based on the responses of 44 companies indicates that significant differences exist
between small medium-sized and large enterprises in ERP system adoption Specifically
the findings suggest that small companies experience more knowledge constraints than
their larger counterparts in ERP adoption Further while being the most prevalent
objective for ERP adoption in all the company groups business development through
ERP adoption is considered especially important by the medium-sized and large
enterprises Finally the findings of the study suggest that instead of considering small
and medium-sized enterprises as one homogenous group the differences between these
two groups of companies should be acknowledged in the future research [65]
In their paper ldquoModel Based on CSCWrdquo Wedian Liang XuFen Zhenkun Li Rong Xiao
JunFeng Hu (2005) summarise their finding They feel that Software testing is an
important component of the software engineering and an important link that the software
development quality is guaranteed Using the reasonable model for software testing can
reduce the expenses of testing in the developing activity in the course of testing thus cut
down the cost of software development In this paper we put forward a model for
software testing bused on CSCW technology that run through each stages of software
development cycle If can find the mistake in the software as soon as possible has
shorten the time taken for testing in the course of the development of software testing
43
effectively Finally we applied the model to the testing project which develops ERP
system and then receive the ideal result [118]
In their paper ldquoThe Research and Development of IMIS for Small and Medium-sized
Printing Enterpriserdquo Taolin Ma Xiaoming Chen Yansong Sun Xiurong Li (2009)
analyzed the fact that the basic management thought of inventory management
information system (IMIS) was established by analyzing the inventory management
theory of modern enterprise In this system which using the architecture of CS the stores
were classified by ABC management method the inventory control was completed by
setting up the safety stock and the largest stock the analysis and design of IMIS were
finished This IMIS was developed to meet the practical requirements of small and
medium-sized printing enterprise in our country It can not only be used as the important
measure of the informationized construction for small and medium sized printing
enterprise but also used as a subsystem of enterprise ERP system IMIS could improve
enterprise management level realize rapid transformation of enterprise and finally
enhance the competitiveness of enterprise in market economy [106]
Jiangao Deng and Yijie Bian (2008) in the research paper ldquoConstructing a Risk
Management Mechanism Model of ERP Projectrdquo mention that in the process of
information project implementation of manufacturing enterprises there are many risks to
set up a set of risk management mechanism is guaranteed for them to succeed in ERP
implementation Firstly based on the analysis of ERP project implementation of China
the paper introduced the risk management methodology systems and the relative model
which includes three main steps identifying risk evaluating risk and controlling risk
After that on the aspects of decision implementation and application stages of
manufacturing ERP project life cycle the paper discussed risks of each stage and put
forward a two-dimension matrix risk management strategy Then a mechanism model of
ERP project risk management is constructed which shows that information risk control
strategies of the last two stages not only depend on resources of these stages but also
have a diverse relationship with the last stage Finally according to the successful
implementation of an enterprisersquos ERP project the paper carried out an effective case
application analysis of risk management mechanism model The lack of improvement in
usersrsquo ERP skill levels and the shortage in documenting the rationale for business rules
44
and configuration decisions were among the critical issues of the post-implementation
stage Indeed all of their respondents stressed the importance of refreshing the usersrsquo
knowledge about the system [28]
Saumyendu Ghosh (2003) in ldquoGlobal Implementation of ERP Software ndash Critical Success
Factors on Upgrading Technical Infrastructurerdquo discusses that implementing an
Enterprise Resource planning (ERP) software in a global environment executive
sponsors face two key challenges While business processes are to be re-engineered to
align with the ERP software best practices technical architecture and infrastructure needs
to be in place globally as per specifications of the packaged software In the legacy
environment different countries or different business units use different systems based
on local standards supported by local resources In the new ERP world globally all the
countries must conform to same technical infrastructure Technical managers face
multiple critical issues implementing a global solution Most of the ERP software is
developed in technically advanced countries standards are often too high for under
developed or developing countries In an effort to bring the global organization to a
common platform different countries need different levels of upgrades In this paper the
authors review key technical issues faced is a global upgrade process to support a global
ERP implementation and how to resolve those We conclude although technical
infrastructure and business process reengineering both are equally important and each
implementation is unique but following some simple steps it is easy to prioritize each
ones during different phases of the project Also time lines of two sub-projects must
converge after initial phase and must follow a common plan for the project to be
successful Multiple scenarios are described to facilitate the process He concludes
although technical infrastructure and business process reengineering both are equally
important and each implementation is unique but following some simple steps it is easy
to prioritize each ones during different phases of the project Also time lines of two
subprojects must converge after initial phase and must follow a common plan for the
project to be successful Multiple scenarios are described to facilitate the process [38]
Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008) ldquoDevelopment and
Implementation of ERPCRM System Based on Open Source Software to Small and
Medium-sized Enterprise in Chinardquo analysed the fact that E-commerce and the
45
development of modern enterprise management raise a number of challenges in the
process of informatization of small and medium-sized enterprises (SME) in china To
address this they present an approach in which the informatization is enhanced by using
Open Source Software with customized policies We analyses the main
informationization obstacles of SME in china bring forward that the lack of bankroll
talents cost and management etc are the key problems to informationization of SME
Furthermore they have developed a textile foreign trade ERP CRM system based on
Open Source Software for the local textile distributor of china integrating financial
distribution sales and service processes given the implement method of overall planning
step-by-step implementation key breakthrough and efficiency guiding In the end we
compare the typical Open Source Software and traditional commercial software point
out the advantages of informatization based Open Source Software to SME in china and
the development trend of Open Source Software for enterprise application [132]
ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information Systems ndash a
Multi-disciplinary Method for ERP System Requirements Engineeringrdquo by Inka Vilpola
Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that ERP systems are in
most cases off-the-shelf software packages and large by their size and complex by their
structure Small and medium-sized enterprises (SMEs) require flexibility of the ERP
system because of their individual operational processes Therefore it is crucial to select
and implement an ERP system that fits the requirements of the intended target processes
To support the requirements engineering of ERP systems we have developed Customer-
Centered ERP Implementation (C-CEI) method The method introduces a multi-
disciplinary approach to the ERP project and provides in-depth understanding of the
companylsquos processes and context of use Using C-CEI method decreases the risk of
SMEs to select an inappropriate system and improves the system acceptance by the
customer companyrsquos employees In this paper we present the method and illustrate it by
three SME case studies [114]
Saumyendu Ghosh (2000) in ldquoChallenges on a global implementation of ERP softwarerdquo
discusses that some of the unique challenges in ERP implementation are satisfying
multiple countries statutory requirements and reporting to the corporate head quarters
from one installation of the software conflicting interests between different business
46
entities lack of experienced implementators in all the countries and eminent users of
multinational advantages He discusses different aspects of these challenges in detail and
point out that ERP software can provide only one solution for a particular business
process unless workarounds are available from experienced implementation Different
counties adopt different reporting and accounting practices and therefore an ERP
implementation cannot solve all problems that global corporation may have multiple
countries in the scope of the project due to absence of standard global processes across
the organization He concludes that the most important critical success factor of these
international implementations are how quickly these corporations can reengineer existing
business process to adopt best practices of using an ERP system [38]
Dong Cheng Feiyan Deng Hongtao Li (2006) ldquoCritical Factors for Successful
Implementation of ERP in Chinardquo in their study propound a theoretical model for
successful implementation of Enterprise Resource Planning (ERP) under Chinarsquos
environment and the authors analyze the model empirically through structural equation
modeling The authors find that strategically IT planning abilities leadershiprsquos support
and the skills of IT section business processing abilities learning abilities and change
management abilities has a significant positive impact on successful ERP implementation
[22]
Parijat Upadhyay (2008) in his research studies ldquoAn explorative study to identify the
Critical Success Factors for ERP Implementation in Indian small and medium scale
enterprisesrdquo explores the existing literature on ERP implementation issues in context to
small and medium scale enterprises and attempts a compilation of the factors that assume
great significance while implementing ERP in SMErsquos Given the nature and magnitude of
the problems in encountered in implementing an ERP project this study would attempt to
identify the critical success factors(CSFrsquos) for a successful implementation of an ERP
project since it calls for substantial effort on the part of all the stake holders involved to
make the implementation a success [111]
ldquoThe ERP Implementation of SME in Chinardquo Yuanqiang Xia Peter Lok and Song Yang
(2009) presented the fact that ERP implementing for small and middle size enterprise
(SME) is different from the large one Based on the analysis on the character of ERP
marketing and SMEs of China 6 critical success factors are recommended The research
47
suggests that the top management support is most important to ERP implement in SME
of China in which paternalism prevails Database of management and capital are main
obstacles ERP 1 or ERP 2 fits to demand of SME high power project team has
tremendous significance in the situation of absence of IT engineer for SME education
and training is helpful to successfully ERP implementing The results service as better
understanding the ERP implementation of SME in China and gaining the good
performance of ERP implementation [126]
Yan Xu and Chung-Hsing Yeh (2009) in the article ldquoStrategic Management of
Performance Measures for an ERP Implementation Project Teamrdquo present a new
evaluation model for managing performance measures of an enterprise resource planning
(ERP) implementation project team in an organization With the performance measures
classified into four strategic perspectives of the balanced scorecard the evaluation model
enables the goal alignment between the project team and the organization A new
algorithm using the concept of multi-attribute decision making is developed to obtain the
relative importance value for each performance measure for its contribution to the
strategic goals of the organization The higher the importance values of a performance
measure the more important the role it plays in determining the responsibilities of the
corresponding project team player Understanding the importance of the key performance
measures will help an organization well-prepare to launch a project and have the project
being organized in advance A case of an ERP implementation project in an integrated
manufacturing corporation is presented to demonstrate the applicability of the evaluation
model and its effective management of the performance measures [124]
Zhang Yanhong (2009) in his research paper ldquoERP Implementation Process Analysis
Based on the Key Success Factorsrdquo describes that Enterprise Resource Planning (ERP) is
an amalgamation of a companys information systems designed to bind more closely a
variety of company functions including human resources inventories and financials
while simultaneously linking the company to customers and vendors This thesis is based
on the theory of product life cycle and the process of ERP is divided into four phase
planning implementation stabilization and improvement Critical success factors in each
phase are identified by paper research case study and investigation An ERP
implementation process model based on the critical Success factors (CSFs) is proposed in
48
the paper The thesis analyzes the global planning stages and business process rebuilding
in the process of QIHE pharmaceuticals ERP Improvement on management and
financing before and after ERP implementation are contrasted and we come to the
following conclusions (1) The CSFs in the planning phase is comprehensive
investigation and evaluation (2) The CSFs in the implementation phase is effective
project management team (3) The CSFs in the stabilization phase is appropriate
information management system (4) The CSFs in the improvement phase is change on
demand and continue to innovate (5) The CSFs throughout the product life cycle is
business process rebuilding [131]
Van Stijn E and Wensley A (2001) ldquoOrganizational memory and the completeness of
process modeling in ERP systems some concerns methods and directions for future
researchrdquo mentioned that Enterprise resource planning (ERP) systems not only have a
broad functional scope promising to support many different business processes they also
embed many different aspects of the companyrsquos organizational memory Disparities can
exist between those memory contents in the ERP system and related contents in other
memory media such as individualsrsquo memories and the organizational structure and
culture It is our contention that in general these disparities or memory mismatches as
we will refer to them lead to under-performance of ERP systems In this paper they focus
on potential memory mismatches that may arise with respect to the embedding of process
knowledge within ERP packages Packages such as SAP provide a varied and rich
environment for process modeling However they suspect that there are still many
instances where process knowledge is either lost or represented in different ways in
different parts of the organization The overall thrust of the paper is to identify a variety
of concerns intriguing questions and avenues for future research [112]
Eric Kimberling (2008) in his article ldquo The Role of Lean Six Sigma in ERPrdquo insisted
that there are a number of things to consider when considering a new ERP system like six
sigma lean manufacturing or other business transformation projects that has the capacity
to measure reducing waste managing change well continuous improvement etc [133]
William H Gaw (2010) ldquoEight Basics of Lean Six Sigma for Manufacturing Firmsrdquo In
the efforts to draw closer to customers many manufacturers have lost focus on what
should be a companyrsquos primary success factor ndash profitable growth In todayrsquos competitive
49
manufacturing environment it takes more than quick fixes outsourcing and downsizing
for companies to consistently achieve their growth and profit objectives While these
options may yield temporary financial relief they will not lead the way to long-term
growth and profitability For companies to grow and consistently exceed bottom line
expectations they need to get lean And to get lean they should master eight basics of
Lean Six Sigma in the form of information integrity performance measurement
sequential production point-of-use logistic cycle time management production linearity
and resource planning and customer satisfaction [134]
Brehm L and Markus M L (2000) in The Divided Software Life Cycle of ERP
Packages mentioned that traditional information system life cycle (SLC) focuses on the
activities performed by company developing implementing and maintaining software for
its own internal use Enterprise resource planning (ERP) software packages change the
SLC in several important ways This paper presents an extension of the SLC model for
ERP packages The lsquodivided software life cyclersquo (DSLC) model features an equal
emphasis on the activities performed by the ERP adopting company and the ERP vendor
[15]
Alavi M and Carlson P (1992) A Review of MIS research and disciplinary
development The perceived status of journals in which MIS research is published is an
important issue to academics The number of IS-related journals has increased through
the years yet it is not obvious which are the ldquoleadingrdquo journals or what criteria should be
used to determine this This article addresses these issues by (1) evaluating and
analyzing previous studies in which MIS related journals have been ranked (2)
determining top-ranked journals and placing them into two levels or tiers based on
previous studies and (3) establishing a profile through a systematic analysis of the nine
journals in the first tier This study identified 17 highly ranked journals for publication
Nine were placed in the first tier and eight in the second tier In addition to IS-specific
journals publications included management science computer science and business-
oriented journals The individual strategies for improving software productivity are
identified Issues related to software costs and controlling them are examined and
discussed It is pointed out that a good framework of techniques exists for controlling
software budgets schedules and work completed but that a great deal of further progress
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 13
24
and vendor credibility should be a major purchasing factor There is more to a lasting
ERP purchase than that There are several platform thoughts on technology how many
vendors are included the demonstration the always useful buzz words with all the hype
on service oriented architecture (SOA) best of breed lean manufacturing and all the
other phrases floating in the industry today implementation time customer referrals
customer retention look at your company objectively etc [49]
Robert C Beatty amp Craig D Williams (2006) in ldquoBest Practices for Successfully
Implementing an ERP Upgraderdquo maintain that an ERP upgrade is deceptively complex
and can be daunting especially for organizations ignorant of the massive effort required
to do it correctly One study of mid-size to large companies conducted by AMR Research
found that 67 of these companies are implementing some form of ERP while another
21 are evaluating potential ERP systems solutions As a growing number of companies
adopt ERP systems ERP systems implementation and upgrades are identified as one of
the top five IT priorities among global CIOs according to independent surveys conducted
by Morgan Stanley and Deloitte amp Touche IDG Research Services Group In
conclusion this article provides organizations with a list of the eight most common
recommendations suggested by organizations that have already completed at least one
upgrade to their initial ERP implementation [11] These are
Finding 1 Build your business case on new functionality
Finding 2 Treat the upgrade like a new project
Finding 3 Keep the team together
Finding 4 This is a business project not an IT project
Finding 5 Watch for hidden infrastructure costs
Finding 6 Un-customize customizations
Finding 7 Test like your organizationrsquos future success depends on it
Robert Davison (2002) raises a valid point through his article ldquoCultural Complications of
ERPrdquo discussed cultural misfits from a Singaporean perspective This implies that a one-
size-fits all or one-business-model- fits-all approach is unlikely to be successful As much
of ERP literature originates from and describes application contexts in North America
and to a lesser extent Western Europe where most ERP developers are located and
implementations have occurred Developers and consultants need to adapt their products
25
and services for different cultural markets Awareness of cultural differences and prefer-
ences will certainly improve the assessment of ERP suitability and any subsequent
implementation [27]
A group of researchers Siew Kien Sia May Tang Christina Soh Wai Fong Boh (2002)
from Information Management Research Center Nanyang Business School in their
research paper ldquoEnterprise Resource Planning (ERP) Systems as a Technology of Power
Empowerment or Panoptic Controlrdquo explores ERP as an ambivalent technology of
power According to them on the one hand it may tighten management control by
bringing a new level of panoptic visibility to organizational activities on the other hand
the embedded business model within the ERP may drive empowerment of employees and
greater control relaxation through the configuration of new process design This research
seeks to understand how the different forces play out in the context of ERP
implementation and to explore the implications for traditional power distribution in
organizations It adopted a mixed qualitative-quantitative methodology in an intensive
case study of a restructured hospital in Singapore A survey of 260 users was
administered supplemented by approximately 27 hours of individual interviews with 23
people Results reveal that although ERP can facilitate both empowerment and panoptic
control management has consciously resisted empowerment by working to reinstitute the
power lost through the ERP implementation On the other hand the new panoptic
visibility though partially unintended appears to have evolved naturally and was readily
learned and applied in the organization This study is significant in exposing the
likelihood of ERP implementation as a technology that perpetuates management power
At least in the context of the hospital studied it is yet another means of enlarging the
management authority for ldquototal controlrdquo Current articulations of ERP by practitio-
nersmanagement as empowering thus appear to be more theoretical than real This is
consistent with the perspective of critical theorists (eg Sewell amp Wilkinson 1992
Weber 1947 Tannenbaum 1968) that organizational life will become increasingly
rationalized and more controlled Thus the findings support the critical perspective in
exposing the likelihood of ERP implementation to perpetuate management power Being
a single case study the external generalization of the above analysis is limited Future
research should be sensitive to the formative context (eg the nature of the pre-existing
26
structure the Asian cultural context) and the distribution of authority among
organizational actors (eg presence of management intention) in an organization The
dynamics of panoptic control and empowerment during ERP implementation may be
different in organizational transformation contexts or in organizations with more fluid or
organic pre-existing structures It may also be interesting to follow the analysis of
panoptical and empowerment over an extended period to get a better understanding of
their continuously evolving dynamics [98]
Suprateek Sarker and Allen S Lee (2003) in the paper ldquoUsing a Case study to test the
role of three key social enablers in ERP implementationrdquo indicate that three key social
enablersmdashstrong and committed leadership open and honest communication and a
balanced and empowered implementation teammdashare necessary conditionsprecursors for
successful ERP implementation In a longitudinal positivist case study we find that
while all three enablers may contribute to ERP implementation success only strong and
committed leadership can be empirically established as a necessary condition This
presents a challenge to future ERP researchers for resolving apparent contradictions
between the existing literature and the results of our analysis and for investigating the
nature of interactions among the leadership communication and team characteristics
[93]
Srinivas Mantha (2007) in the article ldquoERPndashBusiness Processes with IP
Communicationsrdquo explained the fact that the key to new competitive capability is
envisioning the enterprise in terms of business wide relationships to improve user
experience across the network exploit knowledge and enhance and accelerate core
processes IP Communications is the catalyst for this capability It enhances the value of
the user experience exploits knowledge value and increases the value of business
processes [76]
Linda Askenaumls amp Alf Westelius (2000) from Linkoumlping University Sweden explore
a new vista of ERP through their literature ldquoFive Roles of an Information System A
Social Constructionist Approach to Analyzing the use of ERP Systemsrdquo This paper
presents a novel way of thinking about how information systems are used in
organizations Traditionally computerized information systems are viewed as objects In
contrast by viewing the information system as an actor our understanding of the
27
structure process increases The user being influenced by the ERP (Enterprise Resource
Planning) system and giving it an actor role thereby also confers agency on the ERP
system Through its very use it influences actions and thus the structure as well Based
on a case study of ERP use in an ABB company for over a decade five different roles
played by the ERP system were identified The ERP system acted as Bureaucrat
Manipulator Administrator and Consultant or was dismissed (Dismissed) in the sense
that intended users chose to avoid using them In conclusion the purpose of this approach
is not to ldquoanimaterdquo the information system to give it life or a mind of its own but rather
to make explicit the socially constructed roles conferred on the information system by
users and others who are affected by it On this basis it is possible to suggest how the
roles can help us opening up the new areas of exploration concerning the fruitful use of
information technology [70]
Jinyoul Lee Keng Siau and Soongoo (2003) conducted a study on the topic ldquoEnterprise
Integration with ERP and EAIrdquo They state that to survive and thrive in these hypercom-
petitive markets it is essential for a company to understand rapidly changing business
circumstances To rapidly respond to a changing environment an enterprise must
integrate business functions into a single system efficiently utilizing information
technology and share data with third-party vendors and customers While ERP forces the
adoption of standard business processes EAI enables enterprise integration over business
object levels ERP thereby supports a centralized business strategy while EAI naturally
accommodates decentralized business processes Lastly they observe the fact True
enterprise integration means both technical and behavioral integration It is not simply
integrating different systems applications or business processes dispersed across an
enterprise It is integrating structural changes different behaviors and various
information systems in an enterprise Enterprise integration is costly and time-
consuming thus management should be cautious in the design of the project
Organizations should not blindly rush into new technologies Top management should
first strive to understand their business and needs for enterprise integration and then
select a methodology of enterprise integration [68]
Wilhelm Scheer and Frank Habermann (2000) in ldquoMaking ERP a Successrdquo have used
business process models at an operational level of e-business to achieve positive results
28
They have talked of different scenarios in e-business As in Business-to-Business
applications such as Supply Chain Management the user has to connect the ERP systems
of all business partners This means he has to fight not only with the thousands of
parameters of a single ERP system but with twice as much (or even more) Another likely
scenario is that the business partners involved in an inter-organizational supply chain are
using ERP systems of different vendors In this case a business process model can be
firstly used to define the conceptual value chain Secondly the conceptual model that is
independent from a certain software vendor can be linked to the repositories of the
different ERP systems in order to customize an integrated software solution These
examples demonstrate that business process models play a major role for the success of e-
business Some ERP vendors like SAP have understood this development and are already
implementing their first model-based e-business applications [94]
Ash CG (2001) in An e-Commerce Model for Extending ERP Systems onto the
Internet An Australian Perspective stated that an established research framework of e-
Business change is used to identify the factors for success of this e-business project
within an ERP environment The results confirm that a successful project was found to
have facilitators in all components of the business framework including the change
environment and project management Further there is the implication that the least
successful e-business projects will have inhibitors in both dimensions especially in the
area of cultural readiness and change management In this case study conflict arose
between local project management initiatives versus a centralized autocratic global ERP
deployment This highlights the need to encourage the balancing of conflicting
organizational knowledge when contemplating the adoption of e-business solutions [7]
Huigang Liang Yajiong Xue William R Boulton Terry Anthony Byrd (2004) ldquoWhy
Western Vendors donrsquot dominate Chinarsquos ERP Marketrdquo Examined cases of failed ERP
system implementation in China and explaining the unique circumstances These foreign
ERP implementation failures emphasize the need to localize strategies even for the
global ERP leaders The general manager of a foreign ERP vendor explained ldquoOne
should understand nationrsquos history and its culture before one starts doing business with
foreign companiesrdquo The cases of failed implementation suggest global ERP vendors
require more than superior technology and experience Their ERP strategies must also
29
address the cultural differences affecting ERP implementations Strategies need to
overcome problems relating to language reporting formats and content cost control
capabilities frequent business process redesigns effective customer support and capable
consulting partners [69]
In the research findings ldquoAn Agency Theory Model of ERP Implementationrdquo Vedabrata
Basu Albert L Lederer (2004) develop a model of testable propositions for applying
agency theory to study the relationship between implementation consultants and client
organizations deploying the ERP systems and to consequently evaluate how the
relationship affects the implementation success Therefore management needs to know
the factors that drive successful ERP implementation a product of the continuous
interaction between the implementation consultants and client firms Agency theory has
been successfully used by different researchers to explain relationships between two
parties seeking a common outcome This paper develops a conceptual model with the
variables and relationships that may play a critical role in explaining the sources of that
frustration It offers a foundation for research that can extend the applicability of agency
theory can help clients and consultants manage their relationships during the
implementation process and thus help them enhance the probability of ERP systems
implementation success It may also be useful for managing other outsourced IS projects
that have implementation settings similar to ERP [10]
Christian Vogt (2002) ldquoIntractable ERP A Comprehensive Analysis of Failed Enterprise-
Resource ndash Planning Projectsrdquo makes an analysis of possible causes that led to the
disasters for ERP implementation failures and suggests software engineering processes
that help avoiding such outcomes The Model Based Architecting and Software
Engineering (MBASE) guidelines developed by Prof Barry Boehm and Daniel Port at
the Center for Software Engineering (CSE) at USC provide a base for these elaborations
for a long time SW Engineering experts have praised commercial-off-the-shelf (COTS)
packages as the panacea to complex software development Far from it the elaboration
in this survey shows that the deployment of COTS packages may be extremely intrinsic
one does not know whether some COTS software adheres to its interface specifications or
how deficient it is or how well its performance scales up as workload demand grows
The upshot is that COTS software will always be an alien element in the software to be
30
developed and it should be considered that way Dye-in-thendashwool COTS package ERP
systems exhibit plenty of dangers Only if appropriate risk management and enough time
for stepwise employment is provided for ERP system can be tamed [115]
In the research findings ldquoImplementing Best Practices in ERP for Small amp Medium
Enterprisesrdquo Rashmi Jha A K Saini and M N Hoda (2008) provides an interesting
insight into taking ERP implementation as a project and develops problem driven
approach to examine its complex phenomena The implementation process will be
divided into several components which will reflect the nature of ERP projects and makes
them distinctive from other systems design methods This paper also addresses critical
issues relating to developing entrepreneurship for sustainable development of small and
medium size enterprises(SMEs) for its future extensions and added benefits It may also
be useful for managing other outsourced Information System (IS) projects that have
implementation settings similar to ERP [53]
Saumyendu and Maya Daneva (2003) in ldquoLessons Learnt from Five Years of Experience
in ERP Requirements Engineeringrdquo summarizes one companyrsquos five years of experience
in making a generic ERP RE model a live process It rests on previously published ERP
RE process assessment results and reports on what we learnt with particular focus on
typical issues organizations face when adopting a standard model and solutions that can
be used to avoid those issues in the future Each of our lessons is described together with
a RE practice technical foundation for the practice and engineering techniques for the RE
practitioner The lessons were used to refine our Corporate Documentation Model a
process-focused and template-based ERP-architecture framework [40]
In ldquoResearch on Agent-Based Architecture of ERP For Small amp Medium-Size
Enterpriserdquo Rui-Xue Fu Zhan-Hong Xin and Can Chen (2007) suggests that with the
rapid development of information technology and the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward To address these problems a MAERP system architecture has been developed
in which the agents are classified into four types F-Agent for realizing an operation
application C-Agent for coordinating with other agents I-Agent for a communication
31
tool between the user and the MAERP system and T-Agent for performing specific tasks
and data collecting [35]
Xavier Franch and Juan Pablo Carvallo (2003) in the research paper Using Quality
Models in Software Package Selection found that the absence of structured descriptions
of quality features and user quality requirements makes selecting the right software
package difficult The authors propose a methodology for describing the quality features
of domain-specific software packages uniformly and comprehensively using ISOIEC
9126-1 quality standards as a framework [34]
In the paper study ldquoRevisiting ERP Systems Benefit Realizationrdquo Paul Hawking and
Andrew Stein (2004) maintains that many companies initially implemented their ERP
systems to solve Y2K and disparate systems issues These same companies are now
looking at a how to strategically leverages their investment in these systems through the
implementation ldquosecond waverdquo functionality This paper identifies the expected and
actual benefits of ldquosecond waverdquo implementations In addition it identifies barriers which
limit the benefit realization The findings reinforce that ERP implementations are people
focused projects which rely heavily on change management for success [45]
Hamid Nach and Albert Lejeune (2008) ldquoImplementing ERP in SMEs Towards an
Ontology Supporting Managerial Decisionsrdquo state that the purpose of this research
project is to consolidate and formalize as ontology on the basis of an extensive literature
review the key processes and skills required for successful implementation of ERP in an
SME Using the Proteacutegeacute software program the research identified and formalized 395
terms each of which has its own definition Exploitation of this ontology could take
multiple and varied forms including creation of a learning system an on-line cooperation
platform or a project management process mapping tool contributing to successful use of
ERP in SMEs [81]
While Gul Tekin Temur and Sitki Gozlu (2008) ldquoDetermination of Performance Criteria
for ERP Software Technologyrdquo mention that the main goal is to determine the
performance criteria for ERP software technology with respect to their sources Today
the companies are in interaction with many internal and external partners and have to face
many situations in various environments Especially many small and medium sized firms
utilize ERP software technology to plan their business interactions in the chain In this
32
study firstly a literature search is accomplished Then in order to reveal the performance
criteria a large-scale automotive company has been selected to conduct interviews with
managers Also the meeting reports of a few small and medium-sized companies have
been analyzed As a result of the analysis on findings the common views of the firms
about performance criteria are classified into four groups according to their sources such
as people technical managerial and economical The sub factors of these main criteria
are also taken into account in order to point out the origins of the criteria The results of
the study will provide insight to researchers and as well as to professionals in the practice
[108]
Maya Daneva (2004) in ERP Requirements Engineering Practice Lessons Learned
mentioned the fact that organizations implementing Enterprise Resource Planning (ERP)
systems have been increasingly adopting generic off-the-shelf requirements engineering
(RE) process models Yet little information exists about the challenges of making a
generic RE model a life process This article discusses why bringing an off-the-shelf
process in is not a sufficient foundation The author shares experiences acquired over the
past five years of eliciting modeling and validating requirements in ERP projects and
highlights typical issues and their solutions Among the keys to success are planning RE
model use in the clients context and installing processes to support key RE activities [25]
While the article ldquoRescuing Troubled Software Projects by Team Transformation A
Case Study with an ERP Projectrdquo by Kim Man Lui and Keith C C Chan (2008)
differentiates various reasons of ERP project failures It further states that many software
projects fail whether failure is measured in terms of budget schedule or some other
requirement The causes of such failures are many but are not always easily recognized
This is not the least due to the human dimension of corporate activities as spurious or
misdiagnosed issues in Enterprise Resource Planning (ERP) projects can take on a life of
their own and become a magnet for company politics This paper reports an industrial
case in which the senior management attempted to deal with a troubled ERP
implementation (SAP R3) in an international fast moving consumer goods (FMCG)
company during 2001 and 2002 This paper reflects this dimension as it uses original
emails and PowerPoint slides to recount a number of representative episodes in a troubled
but ultimately successful project At the heart of this success is the realization that
33
whereas it can be difficult and time-consuming to do root-cause analyses it is relatively
simple to identify problem owners In this case the senior management without IT
backgrounds turned around a failing project by reorganizing the team structure according
to process areas so that issues in each process area had one problem owner We
summarize the managementrsquos actions into a troubleshooting framework and in addition
suggest three actions for rescuing troubled projects keep the project manager but narrow
down the managerrsquos scope of responsibility to one or two process areas assign the right
people to be responsible for other process areas and have the General Manager chair the
ERP meetings [60]
In the PICMET 2006 Proceedings on ldquoOptimizing the Change Management of Enterprise
Resource Planning Systems Implementationsrdquo Onur Kerimoglu and Nuri BaUogluI
(2006) maintain that although Enterprise Resource Planning (ERP) systems are being
used widely all around the world they also carry out many problems as well as their
benefits These systems are well known for enhancing cross functional efficiency and
effectiveness through the integration of all information flowing throughout an
organization However during different project life cycle stages of ERP systems this
integration may not be provided because of the formulation of incompatibilities which
are greater than the optimum level among different parties like ERP system processes of
the organization and system users Within this study existing incompatibilities between
these parties are modeled respectively In common the model propose that the ERP
product mostly matching with the processes of the organization should be selected
processes of the organization should be changed for being compatible with the ERP
system and system users should be educated new qualified people should be hired etc
for making the system and processes more familiar to people Here the point is that all of
these are done for keeping incompatibilities between the ERP system processes and
people at minimum level because this minimalism will avoid optimization and utilization
problems This study not only handles problems of ERP from a newer perspective but
also provides insight to managers about managing the change and utilizing their resources
efficiently for adopting the ERP software across the organization [59]
Capaldo Guido and Rippa Pierluigi (2008) in ldquoA methodological proposal to assess the
feasibility of ERP Systems Implementation Strategiesrdquo stated that Continuous failures in
34
ERP systems implementation project are today the main challenge in the feasibility of
integrated information systems Failure can be determined by different factors both from
technological side and organizational side if not well managed In this paper we propose
a methodological approach based on technochange management in order to assess the
feasibility of ERP implementation strategy and reduce the risk of failure in terms of
project metrics and early operational metrics A case study in a big Italian
Telecommunication Firm will be presented [19]
ldquoCase Study of PLIVA Pharmaceuticals Inc - Aligning ERP System Implementation
with Business Process Changerdquo is very relevant and contemporary paper presented by
Vesna Bosilj Vuksic and Mario Spremic (2004) The main objective of this paper is to
present the impacts of information technology (IT) and enterprise resource planning
(ERP) systems in business process renovation projects A case study of business process
reengineering project and the implementation of the SAP software solution in PLIVA
(PLIVA pharmaceuticals Inc) are presented [116]
In ldquoKey Factors Driving the Success of Technology Adoption Case Examples of ERP
Adoptionrdquo Chonyacha Suebsin and Nathasit Gerdsri (2009) address the issues that
impact technology adoption within an organization Several factors influencing
technology adoption process are identified from the literature review Case examples of
the adoption of a new management technology Enterprise Resource Planning (ERP) are
presented to illustrate the situations of technology adoption in organizations From the
case examples the factors influencing technology adoption in organizations are
consistent with the factors identified from the literatures The further discussion also
reveals the additional determinants including the clarification of project scope individual
commitment and communication which should be taken into consideration when an
organization adopts a new technology [105]
Maya Daneva (2002) in her paper ldquoUsing Maturity Assessments to Understand the ERP
Requirements Engineering Processrdquo mentions that applying standard requirements
engineering (RE) processes is a major trend in todayrsquos Enterprise Resource Planning
(ERP) software engineering It emerged five years ago with the promise to provide a
mechanism helping ERP project organizations deliver their business requirements timely
and within budget This paper looks in depth at a standard ERP RE process and seeks
35
answers to four questions how well it is defined what are the risks associated with its
application in matureimmature organizations what are the essential practices that
contribute to its success and what are the costs of the process and the quality of the
delivered results The main motivation of this paper is to provide some practical advice
for using assessments to increase project teamsrsquo understanding of the ERP RE process
[26]
Fan JC and Kwoting Fang (2006) ldquoERP Implementation and Information Systems
Success A Test of DeLone and McLeans Modelrdquo present their research that develops
and tests a theoretical extension of DeLone and McLeans model of information system
(IS) success which explains personnel belief that contributes to users utilization of ERP
(enterprise resource planning) systems The extended model is tested using the structural
equation model (SEM) a survey of 202 end-users from ten Taiwanese enterprises that
has implemented Data Systems workflow ERP systems is conducted The theoretical
model proposed in this study provides insight into how the concept of useful perception is
incorporated into DeLone and McLean model and plays a critical mediated role to
influence system usage and its associated satisfaction The implications of these findings
for researchers and practitioners are discussed [32]
In the research findings ldquoManaging ERP Implementation Failure A Project Management
Perspectiverdquo Charlie C Chen Chuck C H Law and Samuel C Yang (2008) stated that
Information Technology (IT) projects are susceptible to changes in the business
environment and the increasing velocity of change in global business is challenging the
management of enterprise systems such as enterprise resource planning (ERP) At the
same time system success depends on the rigor of the project management processes
Scope creep poor risk management inadequate allocation of human resources over time
and vendor management are some common problems associated with the implementation
of an enterprise system These issues pose threats to the success of a large-scale software
project such as ERP This research adopts a case study approach to examine how poor
project management can imperil the implementation of an ERP system Having learned
the lessons from the failure of its first ERP implementation the company in this case
reengineered its project management practices to successfully carry out its second ERP
implementation Many critical project management factors contributed to the failure and
36
success of this companyrsquos ERP system This study explores and identifies critical
elements of project management that contributed to the success of the second ERP
implementation For those organizations adopting ERP the findings provide a roadmap
to follow in order to avoid making critical but often underestimated project management
mistakes [21]
Rafa Kouki Robert Pellerin and Diane Poulin (2008) in An Exploratory Study of ERP
Assimilation in Developing Countries The Case of Three Tunisian Companies assessed
that ERP systems could be considered as the most difficult systems to be assimilated
Very little research however has been realised to investigate the determinants of success
of the ERP assimilation process There has been also a dearth in research about ERP
projects in general and ERP post-implementation and assimilation in particular in
developing countries Using a case study methodology grounded in the diffusion of
innovation theory this study tries to understand the factors that could improve or
challenge the ERP systems assimilation process in three Tunisian companies Our
findings highlighted the importance of several factors such as top management support
strategic alignment IT expertise training communication organizational culture and
coercive pressures [62]
Ian Sommerville (2008) Construction by Configuration Challenges for Software
Engineering Research and Practice observed that past ten years have seen a radical shift
in business application software development Rather than developing software from
scratch using a conventional programming language the majority of commercial
software is now developed through reuse ndash the adaptation and configuration of existing
software systems to meet specific organizational requirements The most widespread
form of reuse is through the use of generic systems such as ERP and COTS systems that
are configured to meet specific organizational requirements In this paper he discussed
the implications of software construction by configuration (CbC) for software
engineering Based on his experience with systems for medical records and university
administration he highlighted some of the issues and problems that can arise in
construction by configuration he discussed problems that arise in CbC projects and
identify a number of challenges for research and practice to improve this approach to
software engineering [104]
37
SV Deshmukh and RR Lakhe (2008) in the research paper ldquoSix Sigma ndash An Innovative
Approach for Waste Reduction A Case Study of an Indian SMErdquo present a case study
aimed at reducing waste at an SME engaged in manufacturing of corrugated boxes The
Define Measure Analyze Improve Control strategy of Six Sigma methodology was
followed to identify probable causes for wastages After studying the system and
implementation of six sigma tools an overall 227 waste reduction was achieved
Individually out of a total seven processes 5 showed waste reduction in excess of 40
This reduction was statistically significant at Plt005 The study confirmed successful
implementation of six sigma to minimize waste generation and in terms saving in
manufacturing costs or increasing the bottom line [29]
While in ldquoERP Implementation Critical Success Factors - The Role and Impact of
Business Process Managementrdquo Yasar F Jarrar Abdullah Al-Mudimigh and Mohamed
Zairi (2000) investigate the role and impact of business process management in
successful ERP implementation The paper starts by defining business process
management ERP and the ERP critical success factors The impact of business process
management on successful ERP implementation is then assessed through looking at the
experiences of several organizations The paper concludes by highlighting best practices
for capitalizing on business process management for successful ERP implementation
[52]
M S Camara L Kermad and A El Mhamedi (2006) in the paper ldquoRisk Prediction in
ERP Projects Classification of Reengineered Business Processesrdquo maintain that
Companies have been implementing ERPs for almost ten years now and more the same
implementation problems continue to occur More and more ERP projectrsquos technological
challenges are accompanied by critical dimensions related to the management of the
transformational effects of these projects on the organization Indeed risk management in
this kind of project is not very structured and misses specific methods In this article they
propose a structured methodology for risk management particularly in the BPR (Business
Process Reengineering) sub-project of ERP implementation The final aim of our work is
to decease appreciably resistance to organizational change which poses the greatest
obstacle to business process reengineering efforts They propose to adapt OSR (Optimal
Set Reduction) a risk management method used in software development for the risk
38
management in ERP implementation They address specially the risk related to the
changes in enterprise processes in the ERP project To achieve this objective they
propose to define business process change metrics starting from business process
complexity metrics that exist in the literature [18]
ldquoExploration and Verification of Factors in the Front-end Stage of the ERP
Implementation Process Evidence from Case Study and Survey Researchrdquo Kun Shi and
Qiang Lu (2009) depict that ERP (Enterprise Resources Planning) is widely used to
improve business performance This paper explores how the factors associated with the
Front-end ERP Implementation Process (FEIP) affect the implementation outcome First
based on literature review a preliminary framework with 12 hypotheses is developed
Then Grounded Theory is applied for a case study to further extract and verify the factors
and sub-factors These factors are finally identified as strategic planning corporate
culture user characteristics organization-process-system maturity external expertise
engagementsupport and project preparation Furthermore the significance and
correlation of all the factors are detected by conducting survey research with SPSS as a
tool for analysis The study shows that the framework is valid and that among six three
factors have strong impact on the ERP implementation result whereas others are less
influential Implication is given and limitation is indicated at the end [63]
Huo Lingyu Liu Bingwu and Li Juntao (2009) in the paper ldquoAn ERP System Selection
Model Based on Fuzzy Grey TOPSIS for SMEsrdquo present a new fuzzy multi-criteria
decision making (FMCDM) approach which integrates the technique for order preference
by the similarity to ideal solution (TOPSIS) grey relation and fuzzy set theory for
enterprise resource planning (ERP) system evaluation and selection in the Small and
Medium-Sized Enterprises (SMEs) In this study the characteristic of the alternative with
respect to the criteria are represented in terms of a linguistic term set and the weight of
the criteria is described by triangular fuzzy numbers respectively According to the grey
theory and fuzzy set theory a closeness coefficient is defined to determine the ranking
order of all alternatives by calculating the grade of grey relation to the fuzzy positive-
ideal solution (FPIS) and fuzzy negative-ideal solution (FNIS) simultaneously Finally
an example is shown to highlight the procedure of the proposed method [48]
39
Gao Juntao Zhang Li Wang Zhiyao (2008) summarized their findings in ldquoDecision
Support for Handling Gaps between ERP functionalities and Organizational Needs A
Goal Reasoning based approachrdquo They found that in the process of selecting
commercial off-the-shelf (COTS) ERP systems it is inevitable to encounter gaps between
ERP software and organizational needs Gaps occur when COTS attributes do not exactly
match organizational needs and they make organizational users and software vendors in
the dilemma whether to adapt as-is business processes or to customize software
packages A decision support method for handling gaps is proposed in this paper Firstly
organizational goal-process models are built as the base for decision making Secondly
the idea of evidence theory is introduced into goal reasoning and a quantified algorithm is
proposed to evaluate the impacts of different business processes on high level goals
which are critical to make decision At last the risk is discussed to rank intervals which
specify the expected utilization of business processes [56]
Yvonne Dittrich and Sebastien Vaucouleur (2009) conducted a research on the topicrdquo
ERP Customization as Software Engineering Knowledge Sharing and Cooperationrdquo and
argue that Enterprise resource planning (ERP) systems must be configured and
customized to fit a specific company The authors discuss cooperation with regard to ERP
systems customization Enterprise resource planning (ERP) vendors provide multiple
configuration possibilities ranging from module selection to master data provision to
steer access rights for different users These configuration possibilities cover anticipated
variability If the customer requires adaptation beyond whatrsquos anticipated the source
code of the product must be adapted Customizations in this articlersquos context are source-
code-based adaptations of software products The size and complexity of customizations
range from simple report generation to developing independent add-ons that support
specific businessesmdashfor example solutions for flight carriers The size and lead time of
such projects can compare to a full-size software development project They present
empirical research on customization practices of ERP systems as an example of software
development based on customization of standard software They compared customization
with other development practices that are based on integrating existing code and results
underlined the need to rethink software engineering and programming methods and tools
[129]
40
In the paper study ldquoSignificance of Software Metrics in ERP Projectsrdquo S Parthasarathy
and N Anbazhagan (2006) narrate that ERP projects are a subclass of software projects
often accompanied by large-scale organizational changes One of the major reasons found
in the literature for the failure of ERP projects is the poor management of software
processes In this paper we propose a Software Metrics Plan (SNP) containing different
software metrics to manage software processes during ERP implementation Two
hypotheses have been formulated and tested using statistical techniques to validate the
SNP The statistical analysis of the collected data from an ERP project supports the two
hypotheses leading to the conclusion that the software metrics are momentous in ERP
projects [84]
Antony Marsh (2000) in the article ldquoThe implementation of Enterprise Resource Planning
systems in small and medium Manufacturing enterprises in south-east Queensland a case
study approachrdquo examines the implementation of ERP systems in smallmedium-sized
enterprises in South East Queensland Australia Nine case studies were conducted to
determine factors for success or failure in the implementations Key success factors
identified included cross-functional team approaches organizational experience of
similar scale IT or organizational change projects and lsquodeeprsquo understanding of the key
issues relating to ERP implementations Failure factors identified included top-down or
consultant driven implementations IT department driven implementations or
implementations where the EFV is seen as a quick technological fix to problems within
the operation of the firm rather than as a strategic investment [78]
Christian Doumlrner Sebastian Draxler Volkmar Pipek and Volker Wulf (2009) through
their study ldquoEnd Users at the Bazaar Designing Next-Generation Enterprise Resource
Planning Systemsrdquo propose that the bazaar metaphor has developed a lasting
popularity in software engineering especially as software architectures have evolved
from monoliths to service orientation Nevertheless the metaphor is limited because it
doesnt consider end users those who develop software for themselves Introducing such
an end user the prosumer to the bazaar not only suggests a changing division of work
in software development but also calls for different functionality and architectural
choices The authors evaluated changing software architectures from an end-user
development (EUD) perspective taking the case of enterprise resource planning (ERP)
41
systems as traditionally monolithically designed systems moving toward service
orientation On the basis of the studys findings which indicated problems with the
systems technical flexibility the authors developed a tool set for fostering EUD
activities Their new architecture for ERP systems enables end users to create their own
solutions [31]
Kenny KF Lee (2000) in ldquoThe Five Disciplines of ERP Software Implementationrdquo has
identified the critical factors in businesses which learn grow and succeed This paper
applies the central concepts of the book its five disciplines to the software business
specifically the management of software implementation Using the learning challenge
posed by the organization-wide implementation of Enterprise Resource Systems (Em) the
paper covers how EM software project leaders may manage themselves their teams
business vision and corporate culture and team members to create a survival machine
which can thrive in the current economic and technological climate [67]
Piet MA Ribbers amp Schoo (2000) in his paper ldquoDesigning Complex Software
Implementation Programsrdquo raises a central question that how one can design of Program
Management contributes to the success of complex software implementations
Incomplete goal specifications lack of communication and underestimation of project
complexity are signs of insufficient program and project management To avoid these
pitfalls he proposes ways that have worked well in recent complex multi-project ERP
implementations (programs) Answering the above question raises the problem of
adequately defining and measuring the level of complexity of an implementation
program A conceptual model was developed which identifies program management
factors that are proposed to have an impact on implementation success Fifteen cases
were studied to find support for the proposed framework [88]
ldquoDetecting Gaps between ERP Software and Organizational Needs A Semantic
Similarity Based Approachrdquo is very relevant and contemporary paper presented by Gao
Juntao and Zhang Li (2008) It depicts that Gap analysis is one of the most important
phases in implementation of enterprise resource planning (ERP) system In this paper an
approach is proposed to automatically detect gaps between software capacities and
organizational needs based on semantic similarity computation The approach takes two
business process models as input and one specifies software capacities and the other
42
describes organizational needs The output of it is a report of gaps As a matter of fact
the differences between application domain and software discipline make semantic
heterogeneity a key problem in gap detection therefore the technologies of semantic
similarity computing are employed to resolve ambiguity issues caused by the use of
synonyms or homonyms In particular the idea of similarity propagation is introduced to
pick out a mapping between corresponding activities and data and Hungarian algorithm
is employed to reduce its time complexity Then the similarity of whole models is
measured according to the minimal total cost of change operations Finally an
experiment is given to evaluate the method [36]
In the research publication ldquoERP System Adoption - Does the Size Matterrdquo Sanna
Laukkanen Sami Sarpola and Petri Hallikainen (2005) investigate the relationship of
enterprise size to the constraints and objectives of ERP systems adoption The survey
data based on the responses of 44 companies indicates that significant differences exist
between small medium-sized and large enterprises in ERP system adoption Specifically
the findings suggest that small companies experience more knowledge constraints than
their larger counterparts in ERP adoption Further while being the most prevalent
objective for ERP adoption in all the company groups business development through
ERP adoption is considered especially important by the medium-sized and large
enterprises Finally the findings of the study suggest that instead of considering small
and medium-sized enterprises as one homogenous group the differences between these
two groups of companies should be acknowledged in the future research [65]
In their paper ldquoModel Based on CSCWrdquo Wedian Liang XuFen Zhenkun Li Rong Xiao
JunFeng Hu (2005) summarise their finding They feel that Software testing is an
important component of the software engineering and an important link that the software
development quality is guaranteed Using the reasonable model for software testing can
reduce the expenses of testing in the developing activity in the course of testing thus cut
down the cost of software development In this paper we put forward a model for
software testing bused on CSCW technology that run through each stages of software
development cycle If can find the mistake in the software as soon as possible has
shorten the time taken for testing in the course of the development of software testing
43
effectively Finally we applied the model to the testing project which develops ERP
system and then receive the ideal result [118]
In their paper ldquoThe Research and Development of IMIS for Small and Medium-sized
Printing Enterpriserdquo Taolin Ma Xiaoming Chen Yansong Sun Xiurong Li (2009)
analyzed the fact that the basic management thought of inventory management
information system (IMIS) was established by analyzing the inventory management
theory of modern enterprise In this system which using the architecture of CS the stores
were classified by ABC management method the inventory control was completed by
setting up the safety stock and the largest stock the analysis and design of IMIS were
finished This IMIS was developed to meet the practical requirements of small and
medium-sized printing enterprise in our country It can not only be used as the important
measure of the informationized construction for small and medium sized printing
enterprise but also used as a subsystem of enterprise ERP system IMIS could improve
enterprise management level realize rapid transformation of enterprise and finally
enhance the competitiveness of enterprise in market economy [106]
Jiangao Deng and Yijie Bian (2008) in the research paper ldquoConstructing a Risk
Management Mechanism Model of ERP Projectrdquo mention that in the process of
information project implementation of manufacturing enterprises there are many risks to
set up a set of risk management mechanism is guaranteed for them to succeed in ERP
implementation Firstly based on the analysis of ERP project implementation of China
the paper introduced the risk management methodology systems and the relative model
which includes three main steps identifying risk evaluating risk and controlling risk
After that on the aspects of decision implementation and application stages of
manufacturing ERP project life cycle the paper discussed risks of each stage and put
forward a two-dimension matrix risk management strategy Then a mechanism model of
ERP project risk management is constructed which shows that information risk control
strategies of the last two stages not only depend on resources of these stages but also
have a diverse relationship with the last stage Finally according to the successful
implementation of an enterprisersquos ERP project the paper carried out an effective case
application analysis of risk management mechanism model The lack of improvement in
usersrsquo ERP skill levels and the shortage in documenting the rationale for business rules
44
and configuration decisions were among the critical issues of the post-implementation
stage Indeed all of their respondents stressed the importance of refreshing the usersrsquo
knowledge about the system [28]
Saumyendu Ghosh (2003) in ldquoGlobal Implementation of ERP Software ndash Critical Success
Factors on Upgrading Technical Infrastructurerdquo discusses that implementing an
Enterprise Resource planning (ERP) software in a global environment executive
sponsors face two key challenges While business processes are to be re-engineered to
align with the ERP software best practices technical architecture and infrastructure needs
to be in place globally as per specifications of the packaged software In the legacy
environment different countries or different business units use different systems based
on local standards supported by local resources In the new ERP world globally all the
countries must conform to same technical infrastructure Technical managers face
multiple critical issues implementing a global solution Most of the ERP software is
developed in technically advanced countries standards are often too high for under
developed or developing countries In an effort to bring the global organization to a
common platform different countries need different levels of upgrades In this paper the
authors review key technical issues faced is a global upgrade process to support a global
ERP implementation and how to resolve those We conclude although technical
infrastructure and business process reengineering both are equally important and each
implementation is unique but following some simple steps it is easy to prioritize each
ones during different phases of the project Also time lines of two sub-projects must
converge after initial phase and must follow a common plan for the project to be
successful Multiple scenarios are described to facilitate the process He concludes
although technical infrastructure and business process reengineering both are equally
important and each implementation is unique but following some simple steps it is easy
to prioritize each ones during different phases of the project Also time lines of two
subprojects must converge after initial phase and must follow a common plan for the
project to be successful Multiple scenarios are described to facilitate the process [38]
Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008) ldquoDevelopment and
Implementation of ERPCRM System Based on Open Source Software to Small and
Medium-sized Enterprise in Chinardquo analysed the fact that E-commerce and the
45
development of modern enterprise management raise a number of challenges in the
process of informatization of small and medium-sized enterprises (SME) in china To
address this they present an approach in which the informatization is enhanced by using
Open Source Software with customized policies We analyses the main
informationization obstacles of SME in china bring forward that the lack of bankroll
talents cost and management etc are the key problems to informationization of SME
Furthermore they have developed a textile foreign trade ERP CRM system based on
Open Source Software for the local textile distributor of china integrating financial
distribution sales and service processes given the implement method of overall planning
step-by-step implementation key breakthrough and efficiency guiding In the end we
compare the typical Open Source Software and traditional commercial software point
out the advantages of informatization based Open Source Software to SME in china and
the development trend of Open Source Software for enterprise application [132]
ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information Systems ndash a
Multi-disciplinary Method for ERP System Requirements Engineeringrdquo by Inka Vilpola
Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that ERP systems are in
most cases off-the-shelf software packages and large by their size and complex by their
structure Small and medium-sized enterprises (SMEs) require flexibility of the ERP
system because of their individual operational processes Therefore it is crucial to select
and implement an ERP system that fits the requirements of the intended target processes
To support the requirements engineering of ERP systems we have developed Customer-
Centered ERP Implementation (C-CEI) method The method introduces a multi-
disciplinary approach to the ERP project and provides in-depth understanding of the
companylsquos processes and context of use Using C-CEI method decreases the risk of
SMEs to select an inappropriate system and improves the system acceptance by the
customer companyrsquos employees In this paper we present the method and illustrate it by
three SME case studies [114]
Saumyendu Ghosh (2000) in ldquoChallenges on a global implementation of ERP softwarerdquo
discusses that some of the unique challenges in ERP implementation are satisfying
multiple countries statutory requirements and reporting to the corporate head quarters
from one installation of the software conflicting interests between different business
46
entities lack of experienced implementators in all the countries and eminent users of
multinational advantages He discusses different aspects of these challenges in detail and
point out that ERP software can provide only one solution for a particular business
process unless workarounds are available from experienced implementation Different
counties adopt different reporting and accounting practices and therefore an ERP
implementation cannot solve all problems that global corporation may have multiple
countries in the scope of the project due to absence of standard global processes across
the organization He concludes that the most important critical success factor of these
international implementations are how quickly these corporations can reengineer existing
business process to adopt best practices of using an ERP system [38]
Dong Cheng Feiyan Deng Hongtao Li (2006) ldquoCritical Factors for Successful
Implementation of ERP in Chinardquo in their study propound a theoretical model for
successful implementation of Enterprise Resource Planning (ERP) under Chinarsquos
environment and the authors analyze the model empirically through structural equation
modeling The authors find that strategically IT planning abilities leadershiprsquos support
and the skills of IT section business processing abilities learning abilities and change
management abilities has a significant positive impact on successful ERP implementation
[22]
Parijat Upadhyay (2008) in his research studies ldquoAn explorative study to identify the
Critical Success Factors for ERP Implementation in Indian small and medium scale
enterprisesrdquo explores the existing literature on ERP implementation issues in context to
small and medium scale enterprises and attempts a compilation of the factors that assume
great significance while implementing ERP in SMErsquos Given the nature and magnitude of
the problems in encountered in implementing an ERP project this study would attempt to
identify the critical success factors(CSFrsquos) for a successful implementation of an ERP
project since it calls for substantial effort on the part of all the stake holders involved to
make the implementation a success [111]
ldquoThe ERP Implementation of SME in Chinardquo Yuanqiang Xia Peter Lok and Song Yang
(2009) presented the fact that ERP implementing for small and middle size enterprise
(SME) is different from the large one Based on the analysis on the character of ERP
marketing and SMEs of China 6 critical success factors are recommended The research
47
suggests that the top management support is most important to ERP implement in SME
of China in which paternalism prevails Database of management and capital are main
obstacles ERP 1 or ERP 2 fits to demand of SME high power project team has
tremendous significance in the situation of absence of IT engineer for SME education
and training is helpful to successfully ERP implementing The results service as better
understanding the ERP implementation of SME in China and gaining the good
performance of ERP implementation [126]
Yan Xu and Chung-Hsing Yeh (2009) in the article ldquoStrategic Management of
Performance Measures for an ERP Implementation Project Teamrdquo present a new
evaluation model for managing performance measures of an enterprise resource planning
(ERP) implementation project team in an organization With the performance measures
classified into four strategic perspectives of the balanced scorecard the evaluation model
enables the goal alignment between the project team and the organization A new
algorithm using the concept of multi-attribute decision making is developed to obtain the
relative importance value for each performance measure for its contribution to the
strategic goals of the organization The higher the importance values of a performance
measure the more important the role it plays in determining the responsibilities of the
corresponding project team player Understanding the importance of the key performance
measures will help an organization well-prepare to launch a project and have the project
being organized in advance A case of an ERP implementation project in an integrated
manufacturing corporation is presented to demonstrate the applicability of the evaluation
model and its effective management of the performance measures [124]
Zhang Yanhong (2009) in his research paper ldquoERP Implementation Process Analysis
Based on the Key Success Factorsrdquo describes that Enterprise Resource Planning (ERP) is
an amalgamation of a companys information systems designed to bind more closely a
variety of company functions including human resources inventories and financials
while simultaneously linking the company to customers and vendors This thesis is based
on the theory of product life cycle and the process of ERP is divided into four phase
planning implementation stabilization and improvement Critical success factors in each
phase are identified by paper research case study and investigation An ERP
implementation process model based on the critical Success factors (CSFs) is proposed in
48
the paper The thesis analyzes the global planning stages and business process rebuilding
in the process of QIHE pharmaceuticals ERP Improvement on management and
financing before and after ERP implementation are contrasted and we come to the
following conclusions (1) The CSFs in the planning phase is comprehensive
investigation and evaluation (2) The CSFs in the implementation phase is effective
project management team (3) The CSFs in the stabilization phase is appropriate
information management system (4) The CSFs in the improvement phase is change on
demand and continue to innovate (5) The CSFs throughout the product life cycle is
business process rebuilding [131]
Van Stijn E and Wensley A (2001) ldquoOrganizational memory and the completeness of
process modeling in ERP systems some concerns methods and directions for future
researchrdquo mentioned that Enterprise resource planning (ERP) systems not only have a
broad functional scope promising to support many different business processes they also
embed many different aspects of the companyrsquos organizational memory Disparities can
exist between those memory contents in the ERP system and related contents in other
memory media such as individualsrsquo memories and the organizational structure and
culture It is our contention that in general these disparities or memory mismatches as
we will refer to them lead to under-performance of ERP systems In this paper they focus
on potential memory mismatches that may arise with respect to the embedding of process
knowledge within ERP packages Packages such as SAP provide a varied and rich
environment for process modeling However they suspect that there are still many
instances where process knowledge is either lost or represented in different ways in
different parts of the organization The overall thrust of the paper is to identify a variety
of concerns intriguing questions and avenues for future research [112]
Eric Kimberling (2008) in his article ldquo The Role of Lean Six Sigma in ERPrdquo insisted
that there are a number of things to consider when considering a new ERP system like six
sigma lean manufacturing or other business transformation projects that has the capacity
to measure reducing waste managing change well continuous improvement etc [133]
William H Gaw (2010) ldquoEight Basics of Lean Six Sigma for Manufacturing Firmsrdquo In
the efforts to draw closer to customers many manufacturers have lost focus on what
should be a companyrsquos primary success factor ndash profitable growth In todayrsquos competitive
49
manufacturing environment it takes more than quick fixes outsourcing and downsizing
for companies to consistently achieve their growth and profit objectives While these
options may yield temporary financial relief they will not lead the way to long-term
growth and profitability For companies to grow and consistently exceed bottom line
expectations they need to get lean And to get lean they should master eight basics of
Lean Six Sigma in the form of information integrity performance measurement
sequential production point-of-use logistic cycle time management production linearity
and resource planning and customer satisfaction [134]
Brehm L and Markus M L (2000) in The Divided Software Life Cycle of ERP
Packages mentioned that traditional information system life cycle (SLC) focuses on the
activities performed by company developing implementing and maintaining software for
its own internal use Enterprise resource planning (ERP) software packages change the
SLC in several important ways This paper presents an extension of the SLC model for
ERP packages The lsquodivided software life cyclersquo (DSLC) model features an equal
emphasis on the activities performed by the ERP adopting company and the ERP vendor
[15]
Alavi M and Carlson P (1992) A Review of MIS research and disciplinary
development The perceived status of journals in which MIS research is published is an
important issue to academics The number of IS-related journals has increased through
the years yet it is not obvious which are the ldquoleadingrdquo journals or what criteria should be
used to determine this This article addresses these issues by (1) evaluating and
analyzing previous studies in which MIS related journals have been ranked (2)
determining top-ranked journals and placing them into two levels or tiers based on
previous studies and (3) establishing a profile through a systematic analysis of the nine
journals in the first tier This study identified 17 highly ranked journals for publication
Nine were placed in the first tier and eight in the second tier In addition to IS-specific
journals publications included management science computer science and business-
oriented journals The individual strategies for improving software productivity are
identified Issues related to software costs and controlling them are examined and
discussed It is pointed out that a good framework of techniques exists for controlling
software budgets schedules and work completed but that a great deal of further progress
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 14
25
and services for different cultural markets Awareness of cultural differences and prefer-
ences will certainly improve the assessment of ERP suitability and any subsequent
implementation [27]
A group of researchers Siew Kien Sia May Tang Christina Soh Wai Fong Boh (2002)
from Information Management Research Center Nanyang Business School in their
research paper ldquoEnterprise Resource Planning (ERP) Systems as a Technology of Power
Empowerment or Panoptic Controlrdquo explores ERP as an ambivalent technology of
power According to them on the one hand it may tighten management control by
bringing a new level of panoptic visibility to organizational activities on the other hand
the embedded business model within the ERP may drive empowerment of employees and
greater control relaxation through the configuration of new process design This research
seeks to understand how the different forces play out in the context of ERP
implementation and to explore the implications for traditional power distribution in
organizations It adopted a mixed qualitative-quantitative methodology in an intensive
case study of a restructured hospital in Singapore A survey of 260 users was
administered supplemented by approximately 27 hours of individual interviews with 23
people Results reveal that although ERP can facilitate both empowerment and panoptic
control management has consciously resisted empowerment by working to reinstitute the
power lost through the ERP implementation On the other hand the new panoptic
visibility though partially unintended appears to have evolved naturally and was readily
learned and applied in the organization This study is significant in exposing the
likelihood of ERP implementation as a technology that perpetuates management power
At least in the context of the hospital studied it is yet another means of enlarging the
management authority for ldquototal controlrdquo Current articulations of ERP by practitio-
nersmanagement as empowering thus appear to be more theoretical than real This is
consistent with the perspective of critical theorists (eg Sewell amp Wilkinson 1992
Weber 1947 Tannenbaum 1968) that organizational life will become increasingly
rationalized and more controlled Thus the findings support the critical perspective in
exposing the likelihood of ERP implementation to perpetuate management power Being
a single case study the external generalization of the above analysis is limited Future
research should be sensitive to the formative context (eg the nature of the pre-existing
26
structure the Asian cultural context) and the distribution of authority among
organizational actors (eg presence of management intention) in an organization The
dynamics of panoptic control and empowerment during ERP implementation may be
different in organizational transformation contexts or in organizations with more fluid or
organic pre-existing structures It may also be interesting to follow the analysis of
panoptical and empowerment over an extended period to get a better understanding of
their continuously evolving dynamics [98]
Suprateek Sarker and Allen S Lee (2003) in the paper ldquoUsing a Case study to test the
role of three key social enablers in ERP implementationrdquo indicate that three key social
enablersmdashstrong and committed leadership open and honest communication and a
balanced and empowered implementation teammdashare necessary conditionsprecursors for
successful ERP implementation In a longitudinal positivist case study we find that
while all three enablers may contribute to ERP implementation success only strong and
committed leadership can be empirically established as a necessary condition This
presents a challenge to future ERP researchers for resolving apparent contradictions
between the existing literature and the results of our analysis and for investigating the
nature of interactions among the leadership communication and team characteristics
[93]
Srinivas Mantha (2007) in the article ldquoERPndashBusiness Processes with IP
Communicationsrdquo explained the fact that the key to new competitive capability is
envisioning the enterprise in terms of business wide relationships to improve user
experience across the network exploit knowledge and enhance and accelerate core
processes IP Communications is the catalyst for this capability It enhances the value of
the user experience exploits knowledge value and increases the value of business
processes [76]
Linda Askenaumls amp Alf Westelius (2000) from Linkoumlping University Sweden explore
a new vista of ERP through their literature ldquoFive Roles of an Information System A
Social Constructionist Approach to Analyzing the use of ERP Systemsrdquo This paper
presents a novel way of thinking about how information systems are used in
organizations Traditionally computerized information systems are viewed as objects In
contrast by viewing the information system as an actor our understanding of the
27
structure process increases The user being influenced by the ERP (Enterprise Resource
Planning) system and giving it an actor role thereby also confers agency on the ERP
system Through its very use it influences actions and thus the structure as well Based
on a case study of ERP use in an ABB company for over a decade five different roles
played by the ERP system were identified The ERP system acted as Bureaucrat
Manipulator Administrator and Consultant or was dismissed (Dismissed) in the sense
that intended users chose to avoid using them In conclusion the purpose of this approach
is not to ldquoanimaterdquo the information system to give it life or a mind of its own but rather
to make explicit the socially constructed roles conferred on the information system by
users and others who are affected by it On this basis it is possible to suggest how the
roles can help us opening up the new areas of exploration concerning the fruitful use of
information technology [70]
Jinyoul Lee Keng Siau and Soongoo (2003) conducted a study on the topic ldquoEnterprise
Integration with ERP and EAIrdquo They state that to survive and thrive in these hypercom-
petitive markets it is essential for a company to understand rapidly changing business
circumstances To rapidly respond to a changing environment an enterprise must
integrate business functions into a single system efficiently utilizing information
technology and share data with third-party vendors and customers While ERP forces the
adoption of standard business processes EAI enables enterprise integration over business
object levels ERP thereby supports a centralized business strategy while EAI naturally
accommodates decentralized business processes Lastly they observe the fact True
enterprise integration means both technical and behavioral integration It is not simply
integrating different systems applications or business processes dispersed across an
enterprise It is integrating structural changes different behaviors and various
information systems in an enterprise Enterprise integration is costly and time-
consuming thus management should be cautious in the design of the project
Organizations should not blindly rush into new technologies Top management should
first strive to understand their business and needs for enterprise integration and then
select a methodology of enterprise integration [68]
Wilhelm Scheer and Frank Habermann (2000) in ldquoMaking ERP a Successrdquo have used
business process models at an operational level of e-business to achieve positive results
28
They have talked of different scenarios in e-business As in Business-to-Business
applications such as Supply Chain Management the user has to connect the ERP systems
of all business partners This means he has to fight not only with the thousands of
parameters of a single ERP system but with twice as much (or even more) Another likely
scenario is that the business partners involved in an inter-organizational supply chain are
using ERP systems of different vendors In this case a business process model can be
firstly used to define the conceptual value chain Secondly the conceptual model that is
independent from a certain software vendor can be linked to the repositories of the
different ERP systems in order to customize an integrated software solution These
examples demonstrate that business process models play a major role for the success of e-
business Some ERP vendors like SAP have understood this development and are already
implementing their first model-based e-business applications [94]
Ash CG (2001) in An e-Commerce Model for Extending ERP Systems onto the
Internet An Australian Perspective stated that an established research framework of e-
Business change is used to identify the factors for success of this e-business project
within an ERP environment The results confirm that a successful project was found to
have facilitators in all components of the business framework including the change
environment and project management Further there is the implication that the least
successful e-business projects will have inhibitors in both dimensions especially in the
area of cultural readiness and change management In this case study conflict arose
between local project management initiatives versus a centralized autocratic global ERP
deployment This highlights the need to encourage the balancing of conflicting
organizational knowledge when contemplating the adoption of e-business solutions [7]
Huigang Liang Yajiong Xue William R Boulton Terry Anthony Byrd (2004) ldquoWhy
Western Vendors donrsquot dominate Chinarsquos ERP Marketrdquo Examined cases of failed ERP
system implementation in China and explaining the unique circumstances These foreign
ERP implementation failures emphasize the need to localize strategies even for the
global ERP leaders The general manager of a foreign ERP vendor explained ldquoOne
should understand nationrsquos history and its culture before one starts doing business with
foreign companiesrdquo The cases of failed implementation suggest global ERP vendors
require more than superior technology and experience Their ERP strategies must also
29
address the cultural differences affecting ERP implementations Strategies need to
overcome problems relating to language reporting formats and content cost control
capabilities frequent business process redesigns effective customer support and capable
consulting partners [69]
In the research findings ldquoAn Agency Theory Model of ERP Implementationrdquo Vedabrata
Basu Albert L Lederer (2004) develop a model of testable propositions for applying
agency theory to study the relationship between implementation consultants and client
organizations deploying the ERP systems and to consequently evaluate how the
relationship affects the implementation success Therefore management needs to know
the factors that drive successful ERP implementation a product of the continuous
interaction between the implementation consultants and client firms Agency theory has
been successfully used by different researchers to explain relationships between two
parties seeking a common outcome This paper develops a conceptual model with the
variables and relationships that may play a critical role in explaining the sources of that
frustration It offers a foundation for research that can extend the applicability of agency
theory can help clients and consultants manage their relationships during the
implementation process and thus help them enhance the probability of ERP systems
implementation success It may also be useful for managing other outsourced IS projects
that have implementation settings similar to ERP [10]
Christian Vogt (2002) ldquoIntractable ERP A Comprehensive Analysis of Failed Enterprise-
Resource ndash Planning Projectsrdquo makes an analysis of possible causes that led to the
disasters for ERP implementation failures and suggests software engineering processes
that help avoiding such outcomes The Model Based Architecting and Software
Engineering (MBASE) guidelines developed by Prof Barry Boehm and Daniel Port at
the Center for Software Engineering (CSE) at USC provide a base for these elaborations
for a long time SW Engineering experts have praised commercial-off-the-shelf (COTS)
packages as the panacea to complex software development Far from it the elaboration
in this survey shows that the deployment of COTS packages may be extremely intrinsic
one does not know whether some COTS software adheres to its interface specifications or
how deficient it is or how well its performance scales up as workload demand grows
The upshot is that COTS software will always be an alien element in the software to be
30
developed and it should be considered that way Dye-in-thendashwool COTS package ERP
systems exhibit plenty of dangers Only if appropriate risk management and enough time
for stepwise employment is provided for ERP system can be tamed [115]
In the research findings ldquoImplementing Best Practices in ERP for Small amp Medium
Enterprisesrdquo Rashmi Jha A K Saini and M N Hoda (2008) provides an interesting
insight into taking ERP implementation as a project and develops problem driven
approach to examine its complex phenomena The implementation process will be
divided into several components which will reflect the nature of ERP projects and makes
them distinctive from other systems design methods This paper also addresses critical
issues relating to developing entrepreneurship for sustainable development of small and
medium size enterprises(SMEs) for its future extensions and added benefits It may also
be useful for managing other outsourced Information System (IS) projects that have
implementation settings similar to ERP [53]
Saumyendu and Maya Daneva (2003) in ldquoLessons Learnt from Five Years of Experience
in ERP Requirements Engineeringrdquo summarizes one companyrsquos five years of experience
in making a generic ERP RE model a live process It rests on previously published ERP
RE process assessment results and reports on what we learnt with particular focus on
typical issues organizations face when adopting a standard model and solutions that can
be used to avoid those issues in the future Each of our lessons is described together with
a RE practice technical foundation for the practice and engineering techniques for the RE
practitioner The lessons were used to refine our Corporate Documentation Model a
process-focused and template-based ERP-architecture framework [40]
In ldquoResearch on Agent-Based Architecture of ERP For Small amp Medium-Size
Enterpriserdquo Rui-Xue Fu Zhan-Hong Xin and Can Chen (2007) suggests that with the
rapid development of information technology and the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward To address these problems a MAERP system architecture has been developed
in which the agents are classified into four types F-Agent for realizing an operation
application C-Agent for coordinating with other agents I-Agent for a communication
31
tool between the user and the MAERP system and T-Agent for performing specific tasks
and data collecting [35]
Xavier Franch and Juan Pablo Carvallo (2003) in the research paper Using Quality
Models in Software Package Selection found that the absence of structured descriptions
of quality features and user quality requirements makes selecting the right software
package difficult The authors propose a methodology for describing the quality features
of domain-specific software packages uniformly and comprehensively using ISOIEC
9126-1 quality standards as a framework [34]
In the paper study ldquoRevisiting ERP Systems Benefit Realizationrdquo Paul Hawking and
Andrew Stein (2004) maintains that many companies initially implemented their ERP
systems to solve Y2K and disparate systems issues These same companies are now
looking at a how to strategically leverages their investment in these systems through the
implementation ldquosecond waverdquo functionality This paper identifies the expected and
actual benefits of ldquosecond waverdquo implementations In addition it identifies barriers which
limit the benefit realization The findings reinforce that ERP implementations are people
focused projects which rely heavily on change management for success [45]
Hamid Nach and Albert Lejeune (2008) ldquoImplementing ERP in SMEs Towards an
Ontology Supporting Managerial Decisionsrdquo state that the purpose of this research
project is to consolidate and formalize as ontology on the basis of an extensive literature
review the key processes and skills required for successful implementation of ERP in an
SME Using the Proteacutegeacute software program the research identified and formalized 395
terms each of which has its own definition Exploitation of this ontology could take
multiple and varied forms including creation of a learning system an on-line cooperation
platform or a project management process mapping tool contributing to successful use of
ERP in SMEs [81]
While Gul Tekin Temur and Sitki Gozlu (2008) ldquoDetermination of Performance Criteria
for ERP Software Technologyrdquo mention that the main goal is to determine the
performance criteria for ERP software technology with respect to their sources Today
the companies are in interaction with many internal and external partners and have to face
many situations in various environments Especially many small and medium sized firms
utilize ERP software technology to plan their business interactions in the chain In this
32
study firstly a literature search is accomplished Then in order to reveal the performance
criteria a large-scale automotive company has been selected to conduct interviews with
managers Also the meeting reports of a few small and medium-sized companies have
been analyzed As a result of the analysis on findings the common views of the firms
about performance criteria are classified into four groups according to their sources such
as people technical managerial and economical The sub factors of these main criteria
are also taken into account in order to point out the origins of the criteria The results of
the study will provide insight to researchers and as well as to professionals in the practice
[108]
Maya Daneva (2004) in ERP Requirements Engineering Practice Lessons Learned
mentioned the fact that organizations implementing Enterprise Resource Planning (ERP)
systems have been increasingly adopting generic off-the-shelf requirements engineering
(RE) process models Yet little information exists about the challenges of making a
generic RE model a life process This article discusses why bringing an off-the-shelf
process in is not a sufficient foundation The author shares experiences acquired over the
past five years of eliciting modeling and validating requirements in ERP projects and
highlights typical issues and their solutions Among the keys to success are planning RE
model use in the clients context and installing processes to support key RE activities [25]
While the article ldquoRescuing Troubled Software Projects by Team Transformation A
Case Study with an ERP Projectrdquo by Kim Man Lui and Keith C C Chan (2008)
differentiates various reasons of ERP project failures It further states that many software
projects fail whether failure is measured in terms of budget schedule or some other
requirement The causes of such failures are many but are not always easily recognized
This is not the least due to the human dimension of corporate activities as spurious or
misdiagnosed issues in Enterprise Resource Planning (ERP) projects can take on a life of
their own and become a magnet for company politics This paper reports an industrial
case in which the senior management attempted to deal with a troubled ERP
implementation (SAP R3) in an international fast moving consumer goods (FMCG)
company during 2001 and 2002 This paper reflects this dimension as it uses original
emails and PowerPoint slides to recount a number of representative episodes in a troubled
but ultimately successful project At the heart of this success is the realization that
33
whereas it can be difficult and time-consuming to do root-cause analyses it is relatively
simple to identify problem owners In this case the senior management without IT
backgrounds turned around a failing project by reorganizing the team structure according
to process areas so that issues in each process area had one problem owner We
summarize the managementrsquos actions into a troubleshooting framework and in addition
suggest three actions for rescuing troubled projects keep the project manager but narrow
down the managerrsquos scope of responsibility to one or two process areas assign the right
people to be responsible for other process areas and have the General Manager chair the
ERP meetings [60]
In the PICMET 2006 Proceedings on ldquoOptimizing the Change Management of Enterprise
Resource Planning Systems Implementationsrdquo Onur Kerimoglu and Nuri BaUogluI
(2006) maintain that although Enterprise Resource Planning (ERP) systems are being
used widely all around the world they also carry out many problems as well as their
benefits These systems are well known for enhancing cross functional efficiency and
effectiveness through the integration of all information flowing throughout an
organization However during different project life cycle stages of ERP systems this
integration may not be provided because of the formulation of incompatibilities which
are greater than the optimum level among different parties like ERP system processes of
the organization and system users Within this study existing incompatibilities between
these parties are modeled respectively In common the model propose that the ERP
product mostly matching with the processes of the organization should be selected
processes of the organization should be changed for being compatible with the ERP
system and system users should be educated new qualified people should be hired etc
for making the system and processes more familiar to people Here the point is that all of
these are done for keeping incompatibilities between the ERP system processes and
people at minimum level because this minimalism will avoid optimization and utilization
problems This study not only handles problems of ERP from a newer perspective but
also provides insight to managers about managing the change and utilizing their resources
efficiently for adopting the ERP software across the organization [59]
Capaldo Guido and Rippa Pierluigi (2008) in ldquoA methodological proposal to assess the
feasibility of ERP Systems Implementation Strategiesrdquo stated that Continuous failures in
34
ERP systems implementation project are today the main challenge in the feasibility of
integrated information systems Failure can be determined by different factors both from
technological side and organizational side if not well managed In this paper we propose
a methodological approach based on technochange management in order to assess the
feasibility of ERP implementation strategy and reduce the risk of failure in terms of
project metrics and early operational metrics A case study in a big Italian
Telecommunication Firm will be presented [19]
ldquoCase Study of PLIVA Pharmaceuticals Inc - Aligning ERP System Implementation
with Business Process Changerdquo is very relevant and contemporary paper presented by
Vesna Bosilj Vuksic and Mario Spremic (2004) The main objective of this paper is to
present the impacts of information technology (IT) and enterprise resource planning
(ERP) systems in business process renovation projects A case study of business process
reengineering project and the implementation of the SAP software solution in PLIVA
(PLIVA pharmaceuticals Inc) are presented [116]
In ldquoKey Factors Driving the Success of Technology Adoption Case Examples of ERP
Adoptionrdquo Chonyacha Suebsin and Nathasit Gerdsri (2009) address the issues that
impact technology adoption within an organization Several factors influencing
technology adoption process are identified from the literature review Case examples of
the adoption of a new management technology Enterprise Resource Planning (ERP) are
presented to illustrate the situations of technology adoption in organizations From the
case examples the factors influencing technology adoption in organizations are
consistent with the factors identified from the literatures The further discussion also
reveals the additional determinants including the clarification of project scope individual
commitment and communication which should be taken into consideration when an
organization adopts a new technology [105]
Maya Daneva (2002) in her paper ldquoUsing Maturity Assessments to Understand the ERP
Requirements Engineering Processrdquo mentions that applying standard requirements
engineering (RE) processes is a major trend in todayrsquos Enterprise Resource Planning
(ERP) software engineering It emerged five years ago with the promise to provide a
mechanism helping ERP project organizations deliver their business requirements timely
and within budget This paper looks in depth at a standard ERP RE process and seeks
35
answers to four questions how well it is defined what are the risks associated with its
application in matureimmature organizations what are the essential practices that
contribute to its success and what are the costs of the process and the quality of the
delivered results The main motivation of this paper is to provide some practical advice
for using assessments to increase project teamsrsquo understanding of the ERP RE process
[26]
Fan JC and Kwoting Fang (2006) ldquoERP Implementation and Information Systems
Success A Test of DeLone and McLeans Modelrdquo present their research that develops
and tests a theoretical extension of DeLone and McLeans model of information system
(IS) success which explains personnel belief that contributes to users utilization of ERP
(enterprise resource planning) systems The extended model is tested using the structural
equation model (SEM) a survey of 202 end-users from ten Taiwanese enterprises that
has implemented Data Systems workflow ERP systems is conducted The theoretical
model proposed in this study provides insight into how the concept of useful perception is
incorporated into DeLone and McLean model and plays a critical mediated role to
influence system usage and its associated satisfaction The implications of these findings
for researchers and practitioners are discussed [32]
In the research findings ldquoManaging ERP Implementation Failure A Project Management
Perspectiverdquo Charlie C Chen Chuck C H Law and Samuel C Yang (2008) stated that
Information Technology (IT) projects are susceptible to changes in the business
environment and the increasing velocity of change in global business is challenging the
management of enterprise systems such as enterprise resource planning (ERP) At the
same time system success depends on the rigor of the project management processes
Scope creep poor risk management inadequate allocation of human resources over time
and vendor management are some common problems associated with the implementation
of an enterprise system These issues pose threats to the success of a large-scale software
project such as ERP This research adopts a case study approach to examine how poor
project management can imperil the implementation of an ERP system Having learned
the lessons from the failure of its first ERP implementation the company in this case
reengineered its project management practices to successfully carry out its second ERP
implementation Many critical project management factors contributed to the failure and
36
success of this companyrsquos ERP system This study explores and identifies critical
elements of project management that contributed to the success of the second ERP
implementation For those organizations adopting ERP the findings provide a roadmap
to follow in order to avoid making critical but often underestimated project management
mistakes [21]
Rafa Kouki Robert Pellerin and Diane Poulin (2008) in An Exploratory Study of ERP
Assimilation in Developing Countries The Case of Three Tunisian Companies assessed
that ERP systems could be considered as the most difficult systems to be assimilated
Very little research however has been realised to investigate the determinants of success
of the ERP assimilation process There has been also a dearth in research about ERP
projects in general and ERP post-implementation and assimilation in particular in
developing countries Using a case study methodology grounded in the diffusion of
innovation theory this study tries to understand the factors that could improve or
challenge the ERP systems assimilation process in three Tunisian companies Our
findings highlighted the importance of several factors such as top management support
strategic alignment IT expertise training communication organizational culture and
coercive pressures [62]
Ian Sommerville (2008) Construction by Configuration Challenges for Software
Engineering Research and Practice observed that past ten years have seen a radical shift
in business application software development Rather than developing software from
scratch using a conventional programming language the majority of commercial
software is now developed through reuse ndash the adaptation and configuration of existing
software systems to meet specific organizational requirements The most widespread
form of reuse is through the use of generic systems such as ERP and COTS systems that
are configured to meet specific organizational requirements In this paper he discussed
the implications of software construction by configuration (CbC) for software
engineering Based on his experience with systems for medical records and university
administration he highlighted some of the issues and problems that can arise in
construction by configuration he discussed problems that arise in CbC projects and
identify a number of challenges for research and practice to improve this approach to
software engineering [104]
37
SV Deshmukh and RR Lakhe (2008) in the research paper ldquoSix Sigma ndash An Innovative
Approach for Waste Reduction A Case Study of an Indian SMErdquo present a case study
aimed at reducing waste at an SME engaged in manufacturing of corrugated boxes The
Define Measure Analyze Improve Control strategy of Six Sigma methodology was
followed to identify probable causes for wastages After studying the system and
implementation of six sigma tools an overall 227 waste reduction was achieved
Individually out of a total seven processes 5 showed waste reduction in excess of 40
This reduction was statistically significant at Plt005 The study confirmed successful
implementation of six sigma to minimize waste generation and in terms saving in
manufacturing costs or increasing the bottom line [29]
While in ldquoERP Implementation Critical Success Factors - The Role and Impact of
Business Process Managementrdquo Yasar F Jarrar Abdullah Al-Mudimigh and Mohamed
Zairi (2000) investigate the role and impact of business process management in
successful ERP implementation The paper starts by defining business process
management ERP and the ERP critical success factors The impact of business process
management on successful ERP implementation is then assessed through looking at the
experiences of several organizations The paper concludes by highlighting best practices
for capitalizing on business process management for successful ERP implementation
[52]
M S Camara L Kermad and A El Mhamedi (2006) in the paper ldquoRisk Prediction in
ERP Projects Classification of Reengineered Business Processesrdquo maintain that
Companies have been implementing ERPs for almost ten years now and more the same
implementation problems continue to occur More and more ERP projectrsquos technological
challenges are accompanied by critical dimensions related to the management of the
transformational effects of these projects on the organization Indeed risk management in
this kind of project is not very structured and misses specific methods In this article they
propose a structured methodology for risk management particularly in the BPR (Business
Process Reengineering) sub-project of ERP implementation The final aim of our work is
to decease appreciably resistance to organizational change which poses the greatest
obstacle to business process reengineering efforts They propose to adapt OSR (Optimal
Set Reduction) a risk management method used in software development for the risk
38
management in ERP implementation They address specially the risk related to the
changes in enterprise processes in the ERP project To achieve this objective they
propose to define business process change metrics starting from business process
complexity metrics that exist in the literature [18]
ldquoExploration and Verification of Factors in the Front-end Stage of the ERP
Implementation Process Evidence from Case Study and Survey Researchrdquo Kun Shi and
Qiang Lu (2009) depict that ERP (Enterprise Resources Planning) is widely used to
improve business performance This paper explores how the factors associated with the
Front-end ERP Implementation Process (FEIP) affect the implementation outcome First
based on literature review a preliminary framework with 12 hypotheses is developed
Then Grounded Theory is applied for a case study to further extract and verify the factors
and sub-factors These factors are finally identified as strategic planning corporate
culture user characteristics organization-process-system maturity external expertise
engagementsupport and project preparation Furthermore the significance and
correlation of all the factors are detected by conducting survey research with SPSS as a
tool for analysis The study shows that the framework is valid and that among six three
factors have strong impact on the ERP implementation result whereas others are less
influential Implication is given and limitation is indicated at the end [63]
Huo Lingyu Liu Bingwu and Li Juntao (2009) in the paper ldquoAn ERP System Selection
Model Based on Fuzzy Grey TOPSIS for SMEsrdquo present a new fuzzy multi-criteria
decision making (FMCDM) approach which integrates the technique for order preference
by the similarity to ideal solution (TOPSIS) grey relation and fuzzy set theory for
enterprise resource planning (ERP) system evaluation and selection in the Small and
Medium-Sized Enterprises (SMEs) In this study the characteristic of the alternative with
respect to the criteria are represented in terms of a linguistic term set and the weight of
the criteria is described by triangular fuzzy numbers respectively According to the grey
theory and fuzzy set theory a closeness coefficient is defined to determine the ranking
order of all alternatives by calculating the grade of grey relation to the fuzzy positive-
ideal solution (FPIS) and fuzzy negative-ideal solution (FNIS) simultaneously Finally
an example is shown to highlight the procedure of the proposed method [48]
39
Gao Juntao Zhang Li Wang Zhiyao (2008) summarized their findings in ldquoDecision
Support for Handling Gaps between ERP functionalities and Organizational Needs A
Goal Reasoning based approachrdquo They found that in the process of selecting
commercial off-the-shelf (COTS) ERP systems it is inevitable to encounter gaps between
ERP software and organizational needs Gaps occur when COTS attributes do not exactly
match organizational needs and they make organizational users and software vendors in
the dilemma whether to adapt as-is business processes or to customize software
packages A decision support method for handling gaps is proposed in this paper Firstly
organizational goal-process models are built as the base for decision making Secondly
the idea of evidence theory is introduced into goal reasoning and a quantified algorithm is
proposed to evaluate the impacts of different business processes on high level goals
which are critical to make decision At last the risk is discussed to rank intervals which
specify the expected utilization of business processes [56]
Yvonne Dittrich and Sebastien Vaucouleur (2009) conducted a research on the topicrdquo
ERP Customization as Software Engineering Knowledge Sharing and Cooperationrdquo and
argue that Enterprise resource planning (ERP) systems must be configured and
customized to fit a specific company The authors discuss cooperation with regard to ERP
systems customization Enterprise resource planning (ERP) vendors provide multiple
configuration possibilities ranging from module selection to master data provision to
steer access rights for different users These configuration possibilities cover anticipated
variability If the customer requires adaptation beyond whatrsquos anticipated the source
code of the product must be adapted Customizations in this articlersquos context are source-
code-based adaptations of software products The size and complexity of customizations
range from simple report generation to developing independent add-ons that support
specific businessesmdashfor example solutions for flight carriers The size and lead time of
such projects can compare to a full-size software development project They present
empirical research on customization practices of ERP systems as an example of software
development based on customization of standard software They compared customization
with other development practices that are based on integrating existing code and results
underlined the need to rethink software engineering and programming methods and tools
[129]
40
In the paper study ldquoSignificance of Software Metrics in ERP Projectsrdquo S Parthasarathy
and N Anbazhagan (2006) narrate that ERP projects are a subclass of software projects
often accompanied by large-scale organizational changes One of the major reasons found
in the literature for the failure of ERP projects is the poor management of software
processes In this paper we propose a Software Metrics Plan (SNP) containing different
software metrics to manage software processes during ERP implementation Two
hypotheses have been formulated and tested using statistical techniques to validate the
SNP The statistical analysis of the collected data from an ERP project supports the two
hypotheses leading to the conclusion that the software metrics are momentous in ERP
projects [84]
Antony Marsh (2000) in the article ldquoThe implementation of Enterprise Resource Planning
systems in small and medium Manufacturing enterprises in south-east Queensland a case
study approachrdquo examines the implementation of ERP systems in smallmedium-sized
enterprises in South East Queensland Australia Nine case studies were conducted to
determine factors for success or failure in the implementations Key success factors
identified included cross-functional team approaches organizational experience of
similar scale IT or organizational change projects and lsquodeeprsquo understanding of the key
issues relating to ERP implementations Failure factors identified included top-down or
consultant driven implementations IT department driven implementations or
implementations where the EFV is seen as a quick technological fix to problems within
the operation of the firm rather than as a strategic investment [78]
Christian Doumlrner Sebastian Draxler Volkmar Pipek and Volker Wulf (2009) through
their study ldquoEnd Users at the Bazaar Designing Next-Generation Enterprise Resource
Planning Systemsrdquo propose that the bazaar metaphor has developed a lasting
popularity in software engineering especially as software architectures have evolved
from monoliths to service orientation Nevertheless the metaphor is limited because it
doesnt consider end users those who develop software for themselves Introducing such
an end user the prosumer to the bazaar not only suggests a changing division of work
in software development but also calls for different functionality and architectural
choices The authors evaluated changing software architectures from an end-user
development (EUD) perspective taking the case of enterprise resource planning (ERP)
41
systems as traditionally monolithically designed systems moving toward service
orientation On the basis of the studys findings which indicated problems with the
systems technical flexibility the authors developed a tool set for fostering EUD
activities Their new architecture for ERP systems enables end users to create their own
solutions [31]
Kenny KF Lee (2000) in ldquoThe Five Disciplines of ERP Software Implementationrdquo has
identified the critical factors in businesses which learn grow and succeed This paper
applies the central concepts of the book its five disciplines to the software business
specifically the management of software implementation Using the learning challenge
posed by the organization-wide implementation of Enterprise Resource Systems (Em) the
paper covers how EM software project leaders may manage themselves their teams
business vision and corporate culture and team members to create a survival machine
which can thrive in the current economic and technological climate [67]
Piet MA Ribbers amp Schoo (2000) in his paper ldquoDesigning Complex Software
Implementation Programsrdquo raises a central question that how one can design of Program
Management contributes to the success of complex software implementations
Incomplete goal specifications lack of communication and underestimation of project
complexity are signs of insufficient program and project management To avoid these
pitfalls he proposes ways that have worked well in recent complex multi-project ERP
implementations (programs) Answering the above question raises the problem of
adequately defining and measuring the level of complexity of an implementation
program A conceptual model was developed which identifies program management
factors that are proposed to have an impact on implementation success Fifteen cases
were studied to find support for the proposed framework [88]
ldquoDetecting Gaps between ERP Software and Organizational Needs A Semantic
Similarity Based Approachrdquo is very relevant and contemporary paper presented by Gao
Juntao and Zhang Li (2008) It depicts that Gap analysis is one of the most important
phases in implementation of enterprise resource planning (ERP) system In this paper an
approach is proposed to automatically detect gaps between software capacities and
organizational needs based on semantic similarity computation The approach takes two
business process models as input and one specifies software capacities and the other
42
describes organizational needs The output of it is a report of gaps As a matter of fact
the differences between application domain and software discipline make semantic
heterogeneity a key problem in gap detection therefore the technologies of semantic
similarity computing are employed to resolve ambiguity issues caused by the use of
synonyms or homonyms In particular the idea of similarity propagation is introduced to
pick out a mapping between corresponding activities and data and Hungarian algorithm
is employed to reduce its time complexity Then the similarity of whole models is
measured according to the minimal total cost of change operations Finally an
experiment is given to evaluate the method [36]
In the research publication ldquoERP System Adoption - Does the Size Matterrdquo Sanna
Laukkanen Sami Sarpola and Petri Hallikainen (2005) investigate the relationship of
enterprise size to the constraints and objectives of ERP systems adoption The survey
data based on the responses of 44 companies indicates that significant differences exist
between small medium-sized and large enterprises in ERP system adoption Specifically
the findings suggest that small companies experience more knowledge constraints than
their larger counterparts in ERP adoption Further while being the most prevalent
objective for ERP adoption in all the company groups business development through
ERP adoption is considered especially important by the medium-sized and large
enterprises Finally the findings of the study suggest that instead of considering small
and medium-sized enterprises as one homogenous group the differences between these
two groups of companies should be acknowledged in the future research [65]
In their paper ldquoModel Based on CSCWrdquo Wedian Liang XuFen Zhenkun Li Rong Xiao
JunFeng Hu (2005) summarise their finding They feel that Software testing is an
important component of the software engineering and an important link that the software
development quality is guaranteed Using the reasonable model for software testing can
reduce the expenses of testing in the developing activity in the course of testing thus cut
down the cost of software development In this paper we put forward a model for
software testing bused on CSCW technology that run through each stages of software
development cycle If can find the mistake in the software as soon as possible has
shorten the time taken for testing in the course of the development of software testing
43
effectively Finally we applied the model to the testing project which develops ERP
system and then receive the ideal result [118]
In their paper ldquoThe Research and Development of IMIS for Small and Medium-sized
Printing Enterpriserdquo Taolin Ma Xiaoming Chen Yansong Sun Xiurong Li (2009)
analyzed the fact that the basic management thought of inventory management
information system (IMIS) was established by analyzing the inventory management
theory of modern enterprise In this system which using the architecture of CS the stores
were classified by ABC management method the inventory control was completed by
setting up the safety stock and the largest stock the analysis and design of IMIS were
finished This IMIS was developed to meet the practical requirements of small and
medium-sized printing enterprise in our country It can not only be used as the important
measure of the informationized construction for small and medium sized printing
enterprise but also used as a subsystem of enterprise ERP system IMIS could improve
enterprise management level realize rapid transformation of enterprise and finally
enhance the competitiveness of enterprise in market economy [106]
Jiangao Deng and Yijie Bian (2008) in the research paper ldquoConstructing a Risk
Management Mechanism Model of ERP Projectrdquo mention that in the process of
information project implementation of manufacturing enterprises there are many risks to
set up a set of risk management mechanism is guaranteed for them to succeed in ERP
implementation Firstly based on the analysis of ERP project implementation of China
the paper introduced the risk management methodology systems and the relative model
which includes three main steps identifying risk evaluating risk and controlling risk
After that on the aspects of decision implementation and application stages of
manufacturing ERP project life cycle the paper discussed risks of each stage and put
forward a two-dimension matrix risk management strategy Then a mechanism model of
ERP project risk management is constructed which shows that information risk control
strategies of the last two stages not only depend on resources of these stages but also
have a diverse relationship with the last stage Finally according to the successful
implementation of an enterprisersquos ERP project the paper carried out an effective case
application analysis of risk management mechanism model The lack of improvement in
usersrsquo ERP skill levels and the shortage in documenting the rationale for business rules
44
and configuration decisions were among the critical issues of the post-implementation
stage Indeed all of their respondents stressed the importance of refreshing the usersrsquo
knowledge about the system [28]
Saumyendu Ghosh (2003) in ldquoGlobal Implementation of ERP Software ndash Critical Success
Factors on Upgrading Technical Infrastructurerdquo discusses that implementing an
Enterprise Resource planning (ERP) software in a global environment executive
sponsors face two key challenges While business processes are to be re-engineered to
align with the ERP software best practices technical architecture and infrastructure needs
to be in place globally as per specifications of the packaged software In the legacy
environment different countries or different business units use different systems based
on local standards supported by local resources In the new ERP world globally all the
countries must conform to same technical infrastructure Technical managers face
multiple critical issues implementing a global solution Most of the ERP software is
developed in technically advanced countries standards are often too high for under
developed or developing countries In an effort to bring the global organization to a
common platform different countries need different levels of upgrades In this paper the
authors review key technical issues faced is a global upgrade process to support a global
ERP implementation and how to resolve those We conclude although technical
infrastructure and business process reengineering both are equally important and each
implementation is unique but following some simple steps it is easy to prioritize each
ones during different phases of the project Also time lines of two sub-projects must
converge after initial phase and must follow a common plan for the project to be
successful Multiple scenarios are described to facilitate the process He concludes
although technical infrastructure and business process reengineering both are equally
important and each implementation is unique but following some simple steps it is easy
to prioritize each ones during different phases of the project Also time lines of two
subprojects must converge after initial phase and must follow a common plan for the
project to be successful Multiple scenarios are described to facilitate the process [38]
Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008) ldquoDevelopment and
Implementation of ERPCRM System Based on Open Source Software to Small and
Medium-sized Enterprise in Chinardquo analysed the fact that E-commerce and the
45
development of modern enterprise management raise a number of challenges in the
process of informatization of small and medium-sized enterprises (SME) in china To
address this they present an approach in which the informatization is enhanced by using
Open Source Software with customized policies We analyses the main
informationization obstacles of SME in china bring forward that the lack of bankroll
talents cost and management etc are the key problems to informationization of SME
Furthermore they have developed a textile foreign trade ERP CRM system based on
Open Source Software for the local textile distributor of china integrating financial
distribution sales and service processes given the implement method of overall planning
step-by-step implementation key breakthrough and efficiency guiding In the end we
compare the typical Open Source Software and traditional commercial software point
out the advantages of informatization based Open Source Software to SME in china and
the development trend of Open Source Software for enterprise application [132]
ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information Systems ndash a
Multi-disciplinary Method for ERP System Requirements Engineeringrdquo by Inka Vilpola
Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that ERP systems are in
most cases off-the-shelf software packages and large by their size and complex by their
structure Small and medium-sized enterprises (SMEs) require flexibility of the ERP
system because of their individual operational processes Therefore it is crucial to select
and implement an ERP system that fits the requirements of the intended target processes
To support the requirements engineering of ERP systems we have developed Customer-
Centered ERP Implementation (C-CEI) method The method introduces a multi-
disciplinary approach to the ERP project and provides in-depth understanding of the
companylsquos processes and context of use Using C-CEI method decreases the risk of
SMEs to select an inappropriate system and improves the system acceptance by the
customer companyrsquos employees In this paper we present the method and illustrate it by
three SME case studies [114]
Saumyendu Ghosh (2000) in ldquoChallenges on a global implementation of ERP softwarerdquo
discusses that some of the unique challenges in ERP implementation are satisfying
multiple countries statutory requirements and reporting to the corporate head quarters
from one installation of the software conflicting interests between different business
46
entities lack of experienced implementators in all the countries and eminent users of
multinational advantages He discusses different aspects of these challenges in detail and
point out that ERP software can provide only one solution for a particular business
process unless workarounds are available from experienced implementation Different
counties adopt different reporting and accounting practices and therefore an ERP
implementation cannot solve all problems that global corporation may have multiple
countries in the scope of the project due to absence of standard global processes across
the organization He concludes that the most important critical success factor of these
international implementations are how quickly these corporations can reengineer existing
business process to adopt best practices of using an ERP system [38]
Dong Cheng Feiyan Deng Hongtao Li (2006) ldquoCritical Factors for Successful
Implementation of ERP in Chinardquo in their study propound a theoretical model for
successful implementation of Enterprise Resource Planning (ERP) under Chinarsquos
environment and the authors analyze the model empirically through structural equation
modeling The authors find that strategically IT planning abilities leadershiprsquos support
and the skills of IT section business processing abilities learning abilities and change
management abilities has a significant positive impact on successful ERP implementation
[22]
Parijat Upadhyay (2008) in his research studies ldquoAn explorative study to identify the
Critical Success Factors for ERP Implementation in Indian small and medium scale
enterprisesrdquo explores the existing literature on ERP implementation issues in context to
small and medium scale enterprises and attempts a compilation of the factors that assume
great significance while implementing ERP in SMErsquos Given the nature and magnitude of
the problems in encountered in implementing an ERP project this study would attempt to
identify the critical success factors(CSFrsquos) for a successful implementation of an ERP
project since it calls for substantial effort on the part of all the stake holders involved to
make the implementation a success [111]
ldquoThe ERP Implementation of SME in Chinardquo Yuanqiang Xia Peter Lok and Song Yang
(2009) presented the fact that ERP implementing for small and middle size enterprise
(SME) is different from the large one Based on the analysis on the character of ERP
marketing and SMEs of China 6 critical success factors are recommended The research
47
suggests that the top management support is most important to ERP implement in SME
of China in which paternalism prevails Database of management and capital are main
obstacles ERP 1 or ERP 2 fits to demand of SME high power project team has
tremendous significance in the situation of absence of IT engineer for SME education
and training is helpful to successfully ERP implementing The results service as better
understanding the ERP implementation of SME in China and gaining the good
performance of ERP implementation [126]
Yan Xu and Chung-Hsing Yeh (2009) in the article ldquoStrategic Management of
Performance Measures for an ERP Implementation Project Teamrdquo present a new
evaluation model for managing performance measures of an enterprise resource planning
(ERP) implementation project team in an organization With the performance measures
classified into four strategic perspectives of the balanced scorecard the evaluation model
enables the goal alignment between the project team and the organization A new
algorithm using the concept of multi-attribute decision making is developed to obtain the
relative importance value for each performance measure for its contribution to the
strategic goals of the organization The higher the importance values of a performance
measure the more important the role it plays in determining the responsibilities of the
corresponding project team player Understanding the importance of the key performance
measures will help an organization well-prepare to launch a project and have the project
being organized in advance A case of an ERP implementation project in an integrated
manufacturing corporation is presented to demonstrate the applicability of the evaluation
model and its effective management of the performance measures [124]
Zhang Yanhong (2009) in his research paper ldquoERP Implementation Process Analysis
Based on the Key Success Factorsrdquo describes that Enterprise Resource Planning (ERP) is
an amalgamation of a companys information systems designed to bind more closely a
variety of company functions including human resources inventories and financials
while simultaneously linking the company to customers and vendors This thesis is based
on the theory of product life cycle and the process of ERP is divided into four phase
planning implementation stabilization and improvement Critical success factors in each
phase are identified by paper research case study and investigation An ERP
implementation process model based on the critical Success factors (CSFs) is proposed in
48
the paper The thesis analyzes the global planning stages and business process rebuilding
in the process of QIHE pharmaceuticals ERP Improvement on management and
financing before and after ERP implementation are contrasted and we come to the
following conclusions (1) The CSFs in the planning phase is comprehensive
investigation and evaluation (2) The CSFs in the implementation phase is effective
project management team (3) The CSFs in the stabilization phase is appropriate
information management system (4) The CSFs in the improvement phase is change on
demand and continue to innovate (5) The CSFs throughout the product life cycle is
business process rebuilding [131]
Van Stijn E and Wensley A (2001) ldquoOrganizational memory and the completeness of
process modeling in ERP systems some concerns methods and directions for future
researchrdquo mentioned that Enterprise resource planning (ERP) systems not only have a
broad functional scope promising to support many different business processes they also
embed many different aspects of the companyrsquos organizational memory Disparities can
exist between those memory contents in the ERP system and related contents in other
memory media such as individualsrsquo memories and the organizational structure and
culture It is our contention that in general these disparities or memory mismatches as
we will refer to them lead to under-performance of ERP systems In this paper they focus
on potential memory mismatches that may arise with respect to the embedding of process
knowledge within ERP packages Packages such as SAP provide a varied and rich
environment for process modeling However they suspect that there are still many
instances where process knowledge is either lost or represented in different ways in
different parts of the organization The overall thrust of the paper is to identify a variety
of concerns intriguing questions and avenues for future research [112]
Eric Kimberling (2008) in his article ldquo The Role of Lean Six Sigma in ERPrdquo insisted
that there are a number of things to consider when considering a new ERP system like six
sigma lean manufacturing or other business transformation projects that has the capacity
to measure reducing waste managing change well continuous improvement etc [133]
William H Gaw (2010) ldquoEight Basics of Lean Six Sigma for Manufacturing Firmsrdquo In
the efforts to draw closer to customers many manufacturers have lost focus on what
should be a companyrsquos primary success factor ndash profitable growth In todayrsquos competitive
49
manufacturing environment it takes more than quick fixes outsourcing and downsizing
for companies to consistently achieve their growth and profit objectives While these
options may yield temporary financial relief they will not lead the way to long-term
growth and profitability For companies to grow and consistently exceed bottom line
expectations they need to get lean And to get lean they should master eight basics of
Lean Six Sigma in the form of information integrity performance measurement
sequential production point-of-use logistic cycle time management production linearity
and resource planning and customer satisfaction [134]
Brehm L and Markus M L (2000) in The Divided Software Life Cycle of ERP
Packages mentioned that traditional information system life cycle (SLC) focuses on the
activities performed by company developing implementing and maintaining software for
its own internal use Enterprise resource planning (ERP) software packages change the
SLC in several important ways This paper presents an extension of the SLC model for
ERP packages The lsquodivided software life cyclersquo (DSLC) model features an equal
emphasis on the activities performed by the ERP adopting company and the ERP vendor
[15]
Alavi M and Carlson P (1992) A Review of MIS research and disciplinary
development The perceived status of journals in which MIS research is published is an
important issue to academics The number of IS-related journals has increased through
the years yet it is not obvious which are the ldquoleadingrdquo journals or what criteria should be
used to determine this This article addresses these issues by (1) evaluating and
analyzing previous studies in which MIS related journals have been ranked (2)
determining top-ranked journals and placing them into two levels or tiers based on
previous studies and (3) establishing a profile through a systematic analysis of the nine
journals in the first tier This study identified 17 highly ranked journals for publication
Nine were placed in the first tier and eight in the second tier In addition to IS-specific
journals publications included management science computer science and business-
oriented journals The individual strategies for improving software productivity are
identified Issues related to software costs and controlling them are examined and
discussed It is pointed out that a good framework of techniques exists for controlling
software budgets schedules and work completed but that a great deal of further progress
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 15
26
structure the Asian cultural context) and the distribution of authority among
organizational actors (eg presence of management intention) in an organization The
dynamics of panoptic control and empowerment during ERP implementation may be
different in organizational transformation contexts or in organizations with more fluid or
organic pre-existing structures It may also be interesting to follow the analysis of
panoptical and empowerment over an extended period to get a better understanding of
their continuously evolving dynamics [98]
Suprateek Sarker and Allen S Lee (2003) in the paper ldquoUsing a Case study to test the
role of three key social enablers in ERP implementationrdquo indicate that three key social
enablersmdashstrong and committed leadership open and honest communication and a
balanced and empowered implementation teammdashare necessary conditionsprecursors for
successful ERP implementation In a longitudinal positivist case study we find that
while all three enablers may contribute to ERP implementation success only strong and
committed leadership can be empirically established as a necessary condition This
presents a challenge to future ERP researchers for resolving apparent contradictions
between the existing literature and the results of our analysis and for investigating the
nature of interactions among the leadership communication and team characteristics
[93]
Srinivas Mantha (2007) in the article ldquoERPndashBusiness Processes with IP
Communicationsrdquo explained the fact that the key to new competitive capability is
envisioning the enterprise in terms of business wide relationships to improve user
experience across the network exploit knowledge and enhance and accelerate core
processes IP Communications is the catalyst for this capability It enhances the value of
the user experience exploits knowledge value and increases the value of business
processes [76]
Linda Askenaumls amp Alf Westelius (2000) from Linkoumlping University Sweden explore
a new vista of ERP through their literature ldquoFive Roles of an Information System A
Social Constructionist Approach to Analyzing the use of ERP Systemsrdquo This paper
presents a novel way of thinking about how information systems are used in
organizations Traditionally computerized information systems are viewed as objects In
contrast by viewing the information system as an actor our understanding of the
27
structure process increases The user being influenced by the ERP (Enterprise Resource
Planning) system and giving it an actor role thereby also confers agency on the ERP
system Through its very use it influences actions and thus the structure as well Based
on a case study of ERP use in an ABB company for over a decade five different roles
played by the ERP system were identified The ERP system acted as Bureaucrat
Manipulator Administrator and Consultant or was dismissed (Dismissed) in the sense
that intended users chose to avoid using them In conclusion the purpose of this approach
is not to ldquoanimaterdquo the information system to give it life or a mind of its own but rather
to make explicit the socially constructed roles conferred on the information system by
users and others who are affected by it On this basis it is possible to suggest how the
roles can help us opening up the new areas of exploration concerning the fruitful use of
information technology [70]
Jinyoul Lee Keng Siau and Soongoo (2003) conducted a study on the topic ldquoEnterprise
Integration with ERP and EAIrdquo They state that to survive and thrive in these hypercom-
petitive markets it is essential for a company to understand rapidly changing business
circumstances To rapidly respond to a changing environment an enterprise must
integrate business functions into a single system efficiently utilizing information
technology and share data with third-party vendors and customers While ERP forces the
adoption of standard business processes EAI enables enterprise integration over business
object levels ERP thereby supports a centralized business strategy while EAI naturally
accommodates decentralized business processes Lastly they observe the fact True
enterprise integration means both technical and behavioral integration It is not simply
integrating different systems applications or business processes dispersed across an
enterprise It is integrating structural changes different behaviors and various
information systems in an enterprise Enterprise integration is costly and time-
consuming thus management should be cautious in the design of the project
Organizations should not blindly rush into new technologies Top management should
first strive to understand their business and needs for enterprise integration and then
select a methodology of enterprise integration [68]
Wilhelm Scheer and Frank Habermann (2000) in ldquoMaking ERP a Successrdquo have used
business process models at an operational level of e-business to achieve positive results
28
They have talked of different scenarios in e-business As in Business-to-Business
applications such as Supply Chain Management the user has to connect the ERP systems
of all business partners This means he has to fight not only with the thousands of
parameters of a single ERP system but with twice as much (or even more) Another likely
scenario is that the business partners involved in an inter-organizational supply chain are
using ERP systems of different vendors In this case a business process model can be
firstly used to define the conceptual value chain Secondly the conceptual model that is
independent from a certain software vendor can be linked to the repositories of the
different ERP systems in order to customize an integrated software solution These
examples demonstrate that business process models play a major role for the success of e-
business Some ERP vendors like SAP have understood this development and are already
implementing their first model-based e-business applications [94]
Ash CG (2001) in An e-Commerce Model for Extending ERP Systems onto the
Internet An Australian Perspective stated that an established research framework of e-
Business change is used to identify the factors for success of this e-business project
within an ERP environment The results confirm that a successful project was found to
have facilitators in all components of the business framework including the change
environment and project management Further there is the implication that the least
successful e-business projects will have inhibitors in both dimensions especially in the
area of cultural readiness and change management In this case study conflict arose
between local project management initiatives versus a centralized autocratic global ERP
deployment This highlights the need to encourage the balancing of conflicting
organizational knowledge when contemplating the adoption of e-business solutions [7]
Huigang Liang Yajiong Xue William R Boulton Terry Anthony Byrd (2004) ldquoWhy
Western Vendors donrsquot dominate Chinarsquos ERP Marketrdquo Examined cases of failed ERP
system implementation in China and explaining the unique circumstances These foreign
ERP implementation failures emphasize the need to localize strategies even for the
global ERP leaders The general manager of a foreign ERP vendor explained ldquoOne
should understand nationrsquos history and its culture before one starts doing business with
foreign companiesrdquo The cases of failed implementation suggest global ERP vendors
require more than superior technology and experience Their ERP strategies must also
29
address the cultural differences affecting ERP implementations Strategies need to
overcome problems relating to language reporting formats and content cost control
capabilities frequent business process redesigns effective customer support and capable
consulting partners [69]
In the research findings ldquoAn Agency Theory Model of ERP Implementationrdquo Vedabrata
Basu Albert L Lederer (2004) develop a model of testable propositions for applying
agency theory to study the relationship between implementation consultants and client
organizations deploying the ERP systems and to consequently evaluate how the
relationship affects the implementation success Therefore management needs to know
the factors that drive successful ERP implementation a product of the continuous
interaction between the implementation consultants and client firms Agency theory has
been successfully used by different researchers to explain relationships between two
parties seeking a common outcome This paper develops a conceptual model with the
variables and relationships that may play a critical role in explaining the sources of that
frustration It offers a foundation for research that can extend the applicability of agency
theory can help clients and consultants manage their relationships during the
implementation process and thus help them enhance the probability of ERP systems
implementation success It may also be useful for managing other outsourced IS projects
that have implementation settings similar to ERP [10]
Christian Vogt (2002) ldquoIntractable ERP A Comprehensive Analysis of Failed Enterprise-
Resource ndash Planning Projectsrdquo makes an analysis of possible causes that led to the
disasters for ERP implementation failures and suggests software engineering processes
that help avoiding such outcomes The Model Based Architecting and Software
Engineering (MBASE) guidelines developed by Prof Barry Boehm and Daniel Port at
the Center for Software Engineering (CSE) at USC provide a base for these elaborations
for a long time SW Engineering experts have praised commercial-off-the-shelf (COTS)
packages as the panacea to complex software development Far from it the elaboration
in this survey shows that the deployment of COTS packages may be extremely intrinsic
one does not know whether some COTS software adheres to its interface specifications or
how deficient it is or how well its performance scales up as workload demand grows
The upshot is that COTS software will always be an alien element in the software to be
30
developed and it should be considered that way Dye-in-thendashwool COTS package ERP
systems exhibit plenty of dangers Only if appropriate risk management and enough time
for stepwise employment is provided for ERP system can be tamed [115]
In the research findings ldquoImplementing Best Practices in ERP for Small amp Medium
Enterprisesrdquo Rashmi Jha A K Saini and M N Hoda (2008) provides an interesting
insight into taking ERP implementation as a project and develops problem driven
approach to examine its complex phenomena The implementation process will be
divided into several components which will reflect the nature of ERP projects and makes
them distinctive from other systems design methods This paper also addresses critical
issues relating to developing entrepreneurship for sustainable development of small and
medium size enterprises(SMEs) for its future extensions and added benefits It may also
be useful for managing other outsourced Information System (IS) projects that have
implementation settings similar to ERP [53]
Saumyendu and Maya Daneva (2003) in ldquoLessons Learnt from Five Years of Experience
in ERP Requirements Engineeringrdquo summarizes one companyrsquos five years of experience
in making a generic ERP RE model a live process It rests on previously published ERP
RE process assessment results and reports on what we learnt with particular focus on
typical issues organizations face when adopting a standard model and solutions that can
be used to avoid those issues in the future Each of our lessons is described together with
a RE practice technical foundation for the practice and engineering techniques for the RE
practitioner The lessons were used to refine our Corporate Documentation Model a
process-focused and template-based ERP-architecture framework [40]
In ldquoResearch on Agent-Based Architecture of ERP For Small amp Medium-Size
Enterpriserdquo Rui-Xue Fu Zhan-Hong Xin and Can Chen (2007) suggests that with the
rapid development of information technology and the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward To address these problems a MAERP system architecture has been developed
in which the agents are classified into four types F-Agent for realizing an operation
application C-Agent for coordinating with other agents I-Agent for a communication
31
tool between the user and the MAERP system and T-Agent for performing specific tasks
and data collecting [35]
Xavier Franch and Juan Pablo Carvallo (2003) in the research paper Using Quality
Models in Software Package Selection found that the absence of structured descriptions
of quality features and user quality requirements makes selecting the right software
package difficult The authors propose a methodology for describing the quality features
of domain-specific software packages uniformly and comprehensively using ISOIEC
9126-1 quality standards as a framework [34]
In the paper study ldquoRevisiting ERP Systems Benefit Realizationrdquo Paul Hawking and
Andrew Stein (2004) maintains that many companies initially implemented their ERP
systems to solve Y2K and disparate systems issues These same companies are now
looking at a how to strategically leverages their investment in these systems through the
implementation ldquosecond waverdquo functionality This paper identifies the expected and
actual benefits of ldquosecond waverdquo implementations In addition it identifies barriers which
limit the benefit realization The findings reinforce that ERP implementations are people
focused projects which rely heavily on change management for success [45]
Hamid Nach and Albert Lejeune (2008) ldquoImplementing ERP in SMEs Towards an
Ontology Supporting Managerial Decisionsrdquo state that the purpose of this research
project is to consolidate and formalize as ontology on the basis of an extensive literature
review the key processes and skills required for successful implementation of ERP in an
SME Using the Proteacutegeacute software program the research identified and formalized 395
terms each of which has its own definition Exploitation of this ontology could take
multiple and varied forms including creation of a learning system an on-line cooperation
platform or a project management process mapping tool contributing to successful use of
ERP in SMEs [81]
While Gul Tekin Temur and Sitki Gozlu (2008) ldquoDetermination of Performance Criteria
for ERP Software Technologyrdquo mention that the main goal is to determine the
performance criteria for ERP software technology with respect to their sources Today
the companies are in interaction with many internal and external partners and have to face
many situations in various environments Especially many small and medium sized firms
utilize ERP software technology to plan their business interactions in the chain In this
32
study firstly a literature search is accomplished Then in order to reveal the performance
criteria a large-scale automotive company has been selected to conduct interviews with
managers Also the meeting reports of a few small and medium-sized companies have
been analyzed As a result of the analysis on findings the common views of the firms
about performance criteria are classified into four groups according to their sources such
as people technical managerial and economical The sub factors of these main criteria
are also taken into account in order to point out the origins of the criteria The results of
the study will provide insight to researchers and as well as to professionals in the practice
[108]
Maya Daneva (2004) in ERP Requirements Engineering Practice Lessons Learned
mentioned the fact that organizations implementing Enterprise Resource Planning (ERP)
systems have been increasingly adopting generic off-the-shelf requirements engineering
(RE) process models Yet little information exists about the challenges of making a
generic RE model a life process This article discusses why bringing an off-the-shelf
process in is not a sufficient foundation The author shares experiences acquired over the
past five years of eliciting modeling and validating requirements in ERP projects and
highlights typical issues and their solutions Among the keys to success are planning RE
model use in the clients context and installing processes to support key RE activities [25]
While the article ldquoRescuing Troubled Software Projects by Team Transformation A
Case Study with an ERP Projectrdquo by Kim Man Lui and Keith C C Chan (2008)
differentiates various reasons of ERP project failures It further states that many software
projects fail whether failure is measured in terms of budget schedule or some other
requirement The causes of such failures are many but are not always easily recognized
This is not the least due to the human dimension of corporate activities as spurious or
misdiagnosed issues in Enterprise Resource Planning (ERP) projects can take on a life of
their own and become a magnet for company politics This paper reports an industrial
case in which the senior management attempted to deal with a troubled ERP
implementation (SAP R3) in an international fast moving consumer goods (FMCG)
company during 2001 and 2002 This paper reflects this dimension as it uses original
emails and PowerPoint slides to recount a number of representative episodes in a troubled
but ultimately successful project At the heart of this success is the realization that
33
whereas it can be difficult and time-consuming to do root-cause analyses it is relatively
simple to identify problem owners In this case the senior management without IT
backgrounds turned around a failing project by reorganizing the team structure according
to process areas so that issues in each process area had one problem owner We
summarize the managementrsquos actions into a troubleshooting framework and in addition
suggest three actions for rescuing troubled projects keep the project manager but narrow
down the managerrsquos scope of responsibility to one or two process areas assign the right
people to be responsible for other process areas and have the General Manager chair the
ERP meetings [60]
In the PICMET 2006 Proceedings on ldquoOptimizing the Change Management of Enterprise
Resource Planning Systems Implementationsrdquo Onur Kerimoglu and Nuri BaUogluI
(2006) maintain that although Enterprise Resource Planning (ERP) systems are being
used widely all around the world they also carry out many problems as well as their
benefits These systems are well known for enhancing cross functional efficiency and
effectiveness through the integration of all information flowing throughout an
organization However during different project life cycle stages of ERP systems this
integration may not be provided because of the formulation of incompatibilities which
are greater than the optimum level among different parties like ERP system processes of
the organization and system users Within this study existing incompatibilities between
these parties are modeled respectively In common the model propose that the ERP
product mostly matching with the processes of the organization should be selected
processes of the organization should be changed for being compatible with the ERP
system and system users should be educated new qualified people should be hired etc
for making the system and processes more familiar to people Here the point is that all of
these are done for keeping incompatibilities between the ERP system processes and
people at minimum level because this minimalism will avoid optimization and utilization
problems This study not only handles problems of ERP from a newer perspective but
also provides insight to managers about managing the change and utilizing their resources
efficiently for adopting the ERP software across the organization [59]
Capaldo Guido and Rippa Pierluigi (2008) in ldquoA methodological proposal to assess the
feasibility of ERP Systems Implementation Strategiesrdquo stated that Continuous failures in
34
ERP systems implementation project are today the main challenge in the feasibility of
integrated information systems Failure can be determined by different factors both from
technological side and organizational side if not well managed In this paper we propose
a methodological approach based on technochange management in order to assess the
feasibility of ERP implementation strategy and reduce the risk of failure in terms of
project metrics and early operational metrics A case study in a big Italian
Telecommunication Firm will be presented [19]
ldquoCase Study of PLIVA Pharmaceuticals Inc - Aligning ERP System Implementation
with Business Process Changerdquo is very relevant and contemporary paper presented by
Vesna Bosilj Vuksic and Mario Spremic (2004) The main objective of this paper is to
present the impacts of information technology (IT) and enterprise resource planning
(ERP) systems in business process renovation projects A case study of business process
reengineering project and the implementation of the SAP software solution in PLIVA
(PLIVA pharmaceuticals Inc) are presented [116]
In ldquoKey Factors Driving the Success of Technology Adoption Case Examples of ERP
Adoptionrdquo Chonyacha Suebsin and Nathasit Gerdsri (2009) address the issues that
impact technology adoption within an organization Several factors influencing
technology adoption process are identified from the literature review Case examples of
the adoption of a new management technology Enterprise Resource Planning (ERP) are
presented to illustrate the situations of technology adoption in organizations From the
case examples the factors influencing technology adoption in organizations are
consistent with the factors identified from the literatures The further discussion also
reveals the additional determinants including the clarification of project scope individual
commitment and communication which should be taken into consideration when an
organization adopts a new technology [105]
Maya Daneva (2002) in her paper ldquoUsing Maturity Assessments to Understand the ERP
Requirements Engineering Processrdquo mentions that applying standard requirements
engineering (RE) processes is a major trend in todayrsquos Enterprise Resource Planning
(ERP) software engineering It emerged five years ago with the promise to provide a
mechanism helping ERP project organizations deliver their business requirements timely
and within budget This paper looks in depth at a standard ERP RE process and seeks
35
answers to four questions how well it is defined what are the risks associated with its
application in matureimmature organizations what are the essential practices that
contribute to its success and what are the costs of the process and the quality of the
delivered results The main motivation of this paper is to provide some practical advice
for using assessments to increase project teamsrsquo understanding of the ERP RE process
[26]
Fan JC and Kwoting Fang (2006) ldquoERP Implementation and Information Systems
Success A Test of DeLone and McLeans Modelrdquo present their research that develops
and tests a theoretical extension of DeLone and McLeans model of information system
(IS) success which explains personnel belief that contributes to users utilization of ERP
(enterprise resource planning) systems The extended model is tested using the structural
equation model (SEM) a survey of 202 end-users from ten Taiwanese enterprises that
has implemented Data Systems workflow ERP systems is conducted The theoretical
model proposed in this study provides insight into how the concept of useful perception is
incorporated into DeLone and McLean model and plays a critical mediated role to
influence system usage and its associated satisfaction The implications of these findings
for researchers and practitioners are discussed [32]
In the research findings ldquoManaging ERP Implementation Failure A Project Management
Perspectiverdquo Charlie C Chen Chuck C H Law and Samuel C Yang (2008) stated that
Information Technology (IT) projects are susceptible to changes in the business
environment and the increasing velocity of change in global business is challenging the
management of enterprise systems such as enterprise resource planning (ERP) At the
same time system success depends on the rigor of the project management processes
Scope creep poor risk management inadequate allocation of human resources over time
and vendor management are some common problems associated with the implementation
of an enterprise system These issues pose threats to the success of a large-scale software
project such as ERP This research adopts a case study approach to examine how poor
project management can imperil the implementation of an ERP system Having learned
the lessons from the failure of its first ERP implementation the company in this case
reengineered its project management practices to successfully carry out its second ERP
implementation Many critical project management factors contributed to the failure and
36
success of this companyrsquos ERP system This study explores and identifies critical
elements of project management that contributed to the success of the second ERP
implementation For those organizations adopting ERP the findings provide a roadmap
to follow in order to avoid making critical but often underestimated project management
mistakes [21]
Rafa Kouki Robert Pellerin and Diane Poulin (2008) in An Exploratory Study of ERP
Assimilation in Developing Countries The Case of Three Tunisian Companies assessed
that ERP systems could be considered as the most difficult systems to be assimilated
Very little research however has been realised to investigate the determinants of success
of the ERP assimilation process There has been also a dearth in research about ERP
projects in general and ERP post-implementation and assimilation in particular in
developing countries Using a case study methodology grounded in the diffusion of
innovation theory this study tries to understand the factors that could improve or
challenge the ERP systems assimilation process in three Tunisian companies Our
findings highlighted the importance of several factors such as top management support
strategic alignment IT expertise training communication organizational culture and
coercive pressures [62]
Ian Sommerville (2008) Construction by Configuration Challenges for Software
Engineering Research and Practice observed that past ten years have seen a radical shift
in business application software development Rather than developing software from
scratch using a conventional programming language the majority of commercial
software is now developed through reuse ndash the adaptation and configuration of existing
software systems to meet specific organizational requirements The most widespread
form of reuse is through the use of generic systems such as ERP and COTS systems that
are configured to meet specific organizational requirements In this paper he discussed
the implications of software construction by configuration (CbC) for software
engineering Based on his experience with systems for medical records and university
administration he highlighted some of the issues and problems that can arise in
construction by configuration he discussed problems that arise in CbC projects and
identify a number of challenges for research and practice to improve this approach to
software engineering [104]
37
SV Deshmukh and RR Lakhe (2008) in the research paper ldquoSix Sigma ndash An Innovative
Approach for Waste Reduction A Case Study of an Indian SMErdquo present a case study
aimed at reducing waste at an SME engaged in manufacturing of corrugated boxes The
Define Measure Analyze Improve Control strategy of Six Sigma methodology was
followed to identify probable causes for wastages After studying the system and
implementation of six sigma tools an overall 227 waste reduction was achieved
Individually out of a total seven processes 5 showed waste reduction in excess of 40
This reduction was statistically significant at Plt005 The study confirmed successful
implementation of six sigma to minimize waste generation and in terms saving in
manufacturing costs or increasing the bottom line [29]
While in ldquoERP Implementation Critical Success Factors - The Role and Impact of
Business Process Managementrdquo Yasar F Jarrar Abdullah Al-Mudimigh and Mohamed
Zairi (2000) investigate the role and impact of business process management in
successful ERP implementation The paper starts by defining business process
management ERP and the ERP critical success factors The impact of business process
management on successful ERP implementation is then assessed through looking at the
experiences of several organizations The paper concludes by highlighting best practices
for capitalizing on business process management for successful ERP implementation
[52]
M S Camara L Kermad and A El Mhamedi (2006) in the paper ldquoRisk Prediction in
ERP Projects Classification of Reengineered Business Processesrdquo maintain that
Companies have been implementing ERPs for almost ten years now and more the same
implementation problems continue to occur More and more ERP projectrsquos technological
challenges are accompanied by critical dimensions related to the management of the
transformational effects of these projects on the organization Indeed risk management in
this kind of project is not very structured and misses specific methods In this article they
propose a structured methodology for risk management particularly in the BPR (Business
Process Reengineering) sub-project of ERP implementation The final aim of our work is
to decease appreciably resistance to organizational change which poses the greatest
obstacle to business process reengineering efforts They propose to adapt OSR (Optimal
Set Reduction) a risk management method used in software development for the risk
38
management in ERP implementation They address specially the risk related to the
changes in enterprise processes in the ERP project To achieve this objective they
propose to define business process change metrics starting from business process
complexity metrics that exist in the literature [18]
ldquoExploration and Verification of Factors in the Front-end Stage of the ERP
Implementation Process Evidence from Case Study and Survey Researchrdquo Kun Shi and
Qiang Lu (2009) depict that ERP (Enterprise Resources Planning) is widely used to
improve business performance This paper explores how the factors associated with the
Front-end ERP Implementation Process (FEIP) affect the implementation outcome First
based on literature review a preliminary framework with 12 hypotheses is developed
Then Grounded Theory is applied for a case study to further extract and verify the factors
and sub-factors These factors are finally identified as strategic planning corporate
culture user characteristics organization-process-system maturity external expertise
engagementsupport and project preparation Furthermore the significance and
correlation of all the factors are detected by conducting survey research with SPSS as a
tool for analysis The study shows that the framework is valid and that among six three
factors have strong impact on the ERP implementation result whereas others are less
influential Implication is given and limitation is indicated at the end [63]
Huo Lingyu Liu Bingwu and Li Juntao (2009) in the paper ldquoAn ERP System Selection
Model Based on Fuzzy Grey TOPSIS for SMEsrdquo present a new fuzzy multi-criteria
decision making (FMCDM) approach which integrates the technique for order preference
by the similarity to ideal solution (TOPSIS) grey relation and fuzzy set theory for
enterprise resource planning (ERP) system evaluation and selection in the Small and
Medium-Sized Enterprises (SMEs) In this study the characteristic of the alternative with
respect to the criteria are represented in terms of a linguistic term set and the weight of
the criteria is described by triangular fuzzy numbers respectively According to the grey
theory and fuzzy set theory a closeness coefficient is defined to determine the ranking
order of all alternatives by calculating the grade of grey relation to the fuzzy positive-
ideal solution (FPIS) and fuzzy negative-ideal solution (FNIS) simultaneously Finally
an example is shown to highlight the procedure of the proposed method [48]
39
Gao Juntao Zhang Li Wang Zhiyao (2008) summarized their findings in ldquoDecision
Support for Handling Gaps between ERP functionalities and Organizational Needs A
Goal Reasoning based approachrdquo They found that in the process of selecting
commercial off-the-shelf (COTS) ERP systems it is inevitable to encounter gaps between
ERP software and organizational needs Gaps occur when COTS attributes do not exactly
match organizational needs and they make organizational users and software vendors in
the dilemma whether to adapt as-is business processes or to customize software
packages A decision support method for handling gaps is proposed in this paper Firstly
organizational goal-process models are built as the base for decision making Secondly
the idea of evidence theory is introduced into goal reasoning and a quantified algorithm is
proposed to evaluate the impacts of different business processes on high level goals
which are critical to make decision At last the risk is discussed to rank intervals which
specify the expected utilization of business processes [56]
Yvonne Dittrich and Sebastien Vaucouleur (2009) conducted a research on the topicrdquo
ERP Customization as Software Engineering Knowledge Sharing and Cooperationrdquo and
argue that Enterprise resource planning (ERP) systems must be configured and
customized to fit a specific company The authors discuss cooperation with regard to ERP
systems customization Enterprise resource planning (ERP) vendors provide multiple
configuration possibilities ranging from module selection to master data provision to
steer access rights for different users These configuration possibilities cover anticipated
variability If the customer requires adaptation beyond whatrsquos anticipated the source
code of the product must be adapted Customizations in this articlersquos context are source-
code-based adaptations of software products The size and complexity of customizations
range from simple report generation to developing independent add-ons that support
specific businessesmdashfor example solutions for flight carriers The size and lead time of
such projects can compare to a full-size software development project They present
empirical research on customization practices of ERP systems as an example of software
development based on customization of standard software They compared customization
with other development practices that are based on integrating existing code and results
underlined the need to rethink software engineering and programming methods and tools
[129]
40
In the paper study ldquoSignificance of Software Metrics in ERP Projectsrdquo S Parthasarathy
and N Anbazhagan (2006) narrate that ERP projects are a subclass of software projects
often accompanied by large-scale organizational changes One of the major reasons found
in the literature for the failure of ERP projects is the poor management of software
processes In this paper we propose a Software Metrics Plan (SNP) containing different
software metrics to manage software processes during ERP implementation Two
hypotheses have been formulated and tested using statistical techniques to validate the
SNP The statistical analysis of the collected data from an ERP project supports the two
hypotheses leading to the conclusion that the software metrics are momentous in ERP
projects [84]
Antony Marsh (2000) in the article ldquoThe implementation of Enterprise Resource Planning
systems in small and medium Manufacturing enterprises in south-east Queensland a case
study approachrdquo examines the implementation of ERP systems in smallmedium-sized
enterprises in South East Queensland Australia Nine case studies were conducted to
determine factors for success or failure in the implementations Key success factors
identified included cross-functional team approaches organizational experience of
similar scale IT or organizational change projects and lsquodeeprsquo understanding of the key
issues relating to ERP implementations Failure factors identified included top-down or
consultant driven implementations IT department driven implementations or
implementations where the EFV is seen as a quick technological fix to problems within
the operation of the firm rather than as a strategic investment [78]
Christian Doumlrner Sebastian Draxler Volkmar Pipek and Volker Wulf (2009) through
their study ldquoEnd Users at the Bazaar Designing Next-Generation Enterprise Resource
Planning Systemsrdquo propose that the bazaar metaphor has developed a lasting
popularity in software engineering especially as software architectures have evolved
from monoliths to service orientation Nevertheless the metaphor is limited because it
doesnt consider end users those who develop software for themselves Introducing such
an end user the prosumer to the bazaar not only suggests a changing division of work
in software development but also calls for different functionality and architectural
choices The authors evaluated changing software architectures from an end-user
development (EUD) perspective taking the case of enterprise resource planning (ERP)
41
systems as traditionally monolithically designed systems moving toward service
orientation On the basis of the studys findings which indicated problems with the
systems technical flexibility the authors developed a tool set for fostering EUD
activities Their new architecture for ERP systems enables end users to create their own
solutions [31]
Kenny KF Lee (2000) in ldquoThe Five Disciplines of ERP Software Implementationrdquo has
identified the critical factors in businesses which learn grow and succeed This paper
applies the central concepts of the book its five disciplines to the software business
specifically the management of software implementation Using the learning challenge
posed by the organization-wide implementation of Enterprise Resource Systems (Em) the
paper covers how EM software project leaders may manage themselves their teams
business vision and corporate culture and team members to create a survival machine
which can thrive in the current economic and technological climate [67]
Piet MA Ribbers amp Schoo (2000) in his paper ldquoDesigning Complex Software
Implementation Programsrdquo raises a central question that how one can design of Program
Management contributes to the success of complex software implementations
Incomplete goal specifications lack of communication and underestimation of project
complexity are signs of insufficient program and project management To avoid these
pitfalls he proposes ways that have worked well in recent complex multi-project ERP
implementations (programs) Answering the above question raises the problem of
adequately defining and measuring the level of complexity of an implementation
program A conceptual model was developed which identifies program management
factors that are proposed to have an impact on implementation success Fifteen cases
were studied to find support for the proposed framework [88]
ldquoDetecting Gaps between ERP Software and Organizational Needs A Semantic
Similarity Based Approachrdquo is very relevant and contemporary paper presented by Gao
Juntao and Zhang Li (2008) It depicts that Gap analysis is one of the most important
phases in implementation of enterprise resource planning (ERP) system In this paper an
approach is proposed to automatically detect gaps between software capacities and
organizational needs based on semantic similarity computation The approach takes two
business process models as input and one specifies software capacities and the other
42
describes organizational needs The output of it is a report of gaps As a matter of fact
the differences between application domain and software discipline make semantic
heterogeneity a key problem in gap detection therefore the technologies of semantic
similarity computing are employed to resolve ambiguity issues caused by the use of
synonyms or homonyms In particular the idea of similarity propagation is introduced to
pick out a mapping between corresponding activities and data and Hungarian algorithm
is employed to reduce its time complexity Then the similarity of whole models is
measured according to the minimal total cost of change operations Finally an
experiment is given to evaluate the method [36]
In the research publication ldquoERP System Adoption - Does the Size Matterrdquo Sanna
Laukkanen Sami Sarpola and Petri Hallikainen (2005) investigate the relationship of
enterprise size to the constraints and objectives of ERP systems adoption The survey
data based on the responses of 44 companies indicates that significant differences exist
between small medium-sized and large enterprises in ERP system adoption Specifically
the findings suggest that small companies experience more knowledge constraints than
their larger counterparts in ERP adoption Further while being the most prevalent
objective for ERP adoption in all the company groups business development through
ERP adoption is considered especially important by the medium-sized and large
enterprises Finally the findings of the study suggest that instead of considering small
and medium-sized enterprises as one homogenous group the differences between these
two groups of companies should be acknowledged in the future research [65]
In their paper ldquoModel Based on CSCWrdquo Wedian Liang XuFen Zhenkun Li Rong Xiao
JunFeng Hu (2005) summarise their finding They feel that Software testing is an
important component of the software engineering and an important link that the software
development quality is guaranteed Using the reasonable model for software testing can
reduce the expenses of testing in the developing activity in the course of testing thus cut
down the cost of software development In this paper we put forward a model for
software testing bused on CSCW technology that run through each stages of software
development cycle If can find the mistake in the software as soon as possible has
shorten the time taken for testing in the course of the development of software testing
43
effectively Finally we applied the model to the testing project which develops ERP
system and then receive the ideal result [118]
In their paper ldquoThe Research and Development of IMIS for Small and Medium-sized
Printing Enterpriserdquo Taolin Ma Xiaoming Chen Yansong Sun Xiurong Li (2009)
analyzed the fact that the basic management thought of inventory management
information system (IMIS) was established by analyzing the inventory management
theory of modern enterprise In this system which using the architecture of CS the stores
were classified by ABC management method the inventory control was completed by
setting up the safety stock and the largest stock the analysis and design of IMIS were
finished This IMIS was developed to meet the practical requirements of small and
medium-sized printing enterprise in our country It can not only be used as the important
measure of the informationized construction for small and medium sized printing
enterprise but also used as a subsystem of enterprise ERP system IMIS could improve
enterprise management level realize rapid transformation of enterprise and finally
enhance the competitiveness of enterprise in market economy [106]
Jiangao Deng and Yijie Bian (2008) in the research paper ldquoConstructing a Risk
Management Mechanism Model of ERP Projectrdquo mention that in the process of
information project implementation of manufacturing enterprises there are many risks to
set up a set of risk management mechanism is guaranteed for them to succeed in ERP
implementation Firstly based on the analysis of ERP project implementation of China
the paper introduced the risk management methodology systems and the relative model
which includes three main steps identifying risk evaluating risk and controlling risk
After that on the aspects of decision implementation and application stages of
manufacturing ERP project life cycle the paper discussed risks of each stage and put
forward a two-dimension matrix risk management strategy Then a mechanism model of
ERP project risk management is constructed which shows that information risk control
strategies of the last two stages not only depend on resources of these stages but also
have a diverse relationship with the last stage Finally according to the successful
implementation of an enterprisersquos ERP project the paper carried out an effective case
application analysis of risk management mechanism model The lack of improvement in
usersrsquo ERP skill levels and the shortage in documenting the rationale for business rules
44
and configuration decisions were among the critical issues of the post-implementation
stage Indeed all of their respondents stressed the importance of refreshing the usersrsquo
knowledge about the system [28]
Saumyendu Ghosh (2003) in ldquoGlobal Implementation of ERP Software ndash Critical Success
Factors on Upgrading Technical Infrastructurerdquo discusses that implementing an
Enterprise Resource planning (ERP) software in a global environment executive
sponsors face two key challenges While business processes are to be re-engineered to
align with the ERP software best practices technical architecture and infrastructure needs
to be in place globally as per specifications of the packaged software In the legacy
environment different countries or different business units use different systems based
on local standards supported by local resources In the new ERP world globally all the
countries must conform to same technical infrastructure Technical managers face
multiple critical issues implementing a global solution Most of the ERP software is
developed in technically advanced countries standards are often too high for under
developed or developing countries In an effort to bring the global organization to a
common platform different countries need different levels of upgrades In this paper the
authors review key technical issues faced is a global upgrade process to support a global
ERP implementation and how to resolve those We conclude although technical
infrastructure and business process reengineering both are equally important and each
implementation is unique but following some simple steps it is easy to prioritize each
ones during different phases of the project Also time lines of two sub-projects must
converge after initial phase and must follow a common plan for the project to be
successful Multiple scenarios are described to facilitate the process He concludes
although technical infrastructure and business process reengineering both are equally
important and each implementation is unique but following some simple steps it is easy
to prioritize each ones during different phases of the project Also time lines of two
subprojects must converge after initial phase and must follow a common plan for the
project to be successful Multiple scenarios are described to facilitate the process [38]
Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008) ldquoDevelopment and
Implementation of ERPCRM System Based on Open Source Software to Small and
Medium-sized Enterprise in Chinardquo analysed the fact that E-commerce and the
45
development of modern enterprise management raise a number of challenges in the
process of informatization of small and medium-sized enterprises (SME) in china To
address this they present an approach in which the informatization is enhanced by using
Open Source Software with customized policies We analyses the main
informationization obstacles of SME in china bring forward that the lack of bankroll
talents cost and management etc are the key problems to informationization of SME
Furthermore they have developed a textile foreign trade ERP CRM system based on
Open Source Software for the local textile distributor of china integrating financial
distribution sales and service processes given the implement method of overall planning
step-by-step implementation key breakthrough and efficiency guiding In the end we
compare the typical Open Source Software and traditional commercial software point
out the advantages of informatization based Open Source Software to SME in china and
the development trend of Open Source Software for enterprise application [132]
ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information Systems ndash a
Multi-disciplinary Method for ERP System Requirements Engineeringrdquo by Inka Vilpola
Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that ERP systems are in
most cases off-the-shelf software packages and large by their size and complex by their
structure Small and medium-sized enterprises (SMEs) require flexibility of the ERP
system because of their individual operational processes Therefore it is crucial to select
and implement an ERP system that fits the requirements of the intended target processes
To support the requirements engineering of ERP systems we have developed Customer-
Centered ERP Implementation (C-CEI) method The method introduces a multi-
disciplinary approach to the ERP project and provides in-depth understanding of the
companylsquos processes and context of use Using C-CEI method decreases the risk of
SMEs to select an inappropriate system and improves the system acceptance by the
customer companyrsquos employees In this paper we present the method and illustrate it by
three SME case studies [114]
Saumyendu Ghosh (2000) in ldquoChallenges on a global implementation of ERP softwarerdquo
discusses that some of the unique challenges in ERP implementation are satisfying
multiple countries statutory requirements and reporting to the corporate head quarters
from one installation of the software conflicting interests between different business
46
entities lack of experienced implementators in all the countries and eminent users of
multinational advantages He discusses different aspects of these challenges in detail and
point out that ERP software can provide only one solution for a particular business
process unless workarounds are available from experienced implementation Different
counties adopt different reporting and accounting practices and therefore an ERP
implementation cannot solve all problems that global corporation may have multiple
countries in the scope of the project due to absence of standard global processes across
the organization He concludes that the most important critical success factor of these
international implementations are how quickly these corporations can reengineer existing
business process to adopt best practices of using an ERP system [38]
Dong Cheng Feiyan Deng Hongtao Li (2006) ldquoCritical Factors for Successful
Implementation of ERP in Chinardquo in their study propound a theoretical model for
successful implementation of Enterprise Resource Planning (ERP) under Chinarsquos
environment and the authors analyze the model empirically through structural equation
modeling The authors find that strategically IT planning abilities leadershiprsquos support
and the skills of IT section business processing abilities learning abilities and change
management abilities has a significant positive impact on successful ERP implementation
[22]
Parijat Upadhyay (2008) in his research studies ldquoAn explorative study to identify the
Critical Success Factors for ERP Implementation in Indian small and medium scale
enterprisesrdquo explores the existing literature on ERP implementation issues in context to
small and medium scale enterprises and attempts a compilation of the factors that assume
great significance while implementing ERP in SMErsquos Given the nature and magnitude of
the problems in encountered in implementing an ERP project this study would attempt to
identify the critical success factors(CSFrsquos) for a successful implementation of an ERP
project since it calls for substantial effort on the part of all the stake holders involved to
make the implementation a success [111]
ldquoThe ERP Implementation of SME in Chinardquo Yuanqiang Xia Peter Lok and Song Yang
(2009) presented the fact that ERP implementing for small and middle size enterprise
(SME) is different from the large one Based on the analysis on the character of ERP
marketing and SMEs of China 6 critical success factors are recommended The research
47
suggests that the top management support is most important to ERP implement in SME
of China in which paternalism prevails Database of management and capital are main
obstacles ERP 1 or ERP 2 fits to demand of SME high power project team has
tremendous significance in the situation of absence of IT engineer for SME education
and training is helpful to successfully ERP implementing The results service as better
understanding the ERP implementation of SME in China and gaining the good
performance of ERP implementation [126]
Yan Xu and Chung-Hsing Yeh (2009) in the article ldquoStrategic Management of
Performance Measures for an ERP Implementation Project Teamrdquo present a new
evaluation model for managing performance measures of an enterprise resource planning
(ERP) implementation project team in an organization With the performance measures
classified into four strategic perspectives of the balanced scorecard the evaluation model
enables the goal alignment between the project team and the organization A new
algorithm using the concept of multi-attribute decision making is developed to obtain the
relative importance value for each performance measure for its contribution to the
strategic goals of the organization The higher the importance values of a performance
measure the more important the role it plays in determining the responsibilities of the
corresponding project team player Understanding the importance of the key performance
measures will help an organization well-prepare to launch a project and have the project
being organized in advance A case of an ERP implementation project in an integrated
manufacturing corporation is presented to demonstrate the applicability of the evaluation
model and its effective management of the performance measures [124]
Zhang Yanhong (2009) in his research paper ldquoERP Implementation Process Analysis
Based on the Key Success Factorsrdquo describes that Enterprise Resource Planning (ERP) is
an amalgamation of a companys information systems designed to bind more closely a
variety of company functions including human resources inventories and financials
while simultaneously linking the company to customers and vendors This thesis is based
on the theory of product life cycle and the process of ERP is divided into four phase
planning implementation stabilization and improvement Critical success factors in each
phase are identified by paper research case study and investigation An ERP
implementation process model based on the critical Success factors (CSFs) is proposed in
48
the paper The thesis analyzes the global planning stages and business process rebuilding
in the process of QIHE pharmaceuticals ERP Improvement on management and
financing before and after ERP implementation are contrasted and we come to the
following conclusions (1) The CSFs in the planning phase is comprehensive
investigation and evaluation (2) The CSFs in the implementation phase is effective
project management team (3) The CSFs in the stabilization phase is appropriate
information management system (4) The CSFs in the improvement phase is change on
demand and continue to innovate (5) The CSFs throughout the product life cycle is
business process rebuilding [131]
Van Stijn E and Wensley A (2001) ldquoOrganizational memory and the completeness of
process modeling in ERP systems some concerns methods and directions for future
researchrdquo mentioned that Enterprise resource planning (ERP) systems not only have a
broad functional scope promising to support many different business processes they also
embed many different aspects of the companyrsquos organizational memory Disparities can
exist between those memory contents in the ERP system and related contents in other
memory media such as individualsrsquo memories and the organizational structure and
culture It is our contention that in general these disparities or memory mismatches as
we will refer to them lead to under-performance of ERP systems In this paper they focus
on potential memory mismatches that may arise with respect to the embedding of process
knowledge within ERP packages Packages such as SAP provide a varied and rich
environment for process modeling However they suspect that there are still many
instances where process knowledge is either lost or represented in different ways in
different parts of the organization The overall thrust of the paper is to identify a variety
of concerns intriguing questions and avenues for future research [112]
Eric Kimberling (2008) in his article ldquo The Role of Lean Six Sigma in ERPrdquo insisted
that there are a number of things to consider when considering a new ERP system like six
sigma lean manufacturing or other business transformation projects that has the capacity
to measure reducing waste managing change well continuous improvement etc [133]
William H Gaw (2010) ldquoEight Basics of Lean Six Sigma for Manufacturing Firmsrdquo In
the efforts to draw closer to customers many manufacturers have lost focus on what
should be a companyrsquos primary success factor ndash profitable growth In todayrsquos competitive
49
manufacturing environment it takes more than quick fixes outsourcing and downsizing
for companies to consistently achieve their growth and profit objectives While these
options may yield temporary financial relief they will not lead the way to long-term
growth and profitability For companies to grow and consistently exceed bottom line
expectations they need to get lean And to get lean they should master eight basics of
Lean Six Sigma in the form of information integrity performance measurement
sequential production point-of-use logistic cycle time management production linearity
and resource planning and customer satisfaction [134]
Brehm L and Markus M L (2000) in The Divided Software Life Cycle of ERP
Packages mentioned that traditional information system life cycle (SLC) focuses on the
activities performed by company developing implementing and maintaining software for
its own internal use Enterprise resource planning (ERP) software packages change the
SLC in several important ways This paper presents an extension of the SLC model for
ERP packages The lsquodivided software life cyclersquo (DSLC) model features an equal
emphasis on the activities performed by the ERP adopting company and the ERP vendor
[15]
Alavi M and Carlson P (1992) A Review of MIS research and disciplinary
development The perceived status of journals in which MIS research is published is an
important issue to academics The number of IS-related journals has increased through
the years yet it is not obvious which are the ldquoleadingrdquo journals or what criteria should be
used to determine this This article addresses these issues by (1) evaluating and
analyzing previous studies in which MIS related journals have been ranked (2)
determining top-ranked journals and placing them into two levels or tiers based on
previous studies and (3) establishing a profile through a systematic analysis of the nine
journals in the first tier This study identified 17 highly ranked journals for publication
Nine were placed in the first tier and eight in the second tier In addition to IS-specific
journals publications included management science computer science and business-
oriented journals The individual strategies for improving software productivity are
identified Issues related to software costs and controlling them are examined and
discussed It is pointed out that a good framework of techniques exists for controlling
software budgets schedules and work completed but that a great deal of further progress
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 16
27
structure process increases The user being influenced by the ERP (Enterprise Resource
Planning) system and giving it an actor role thereby also confers agency on the ERP
system Through its very use it influences actions and thus the structure as well Based
on a case study of ERP use in an ABB company for over a decade five different roles
played by the ERP system were identified The ERP system acted as Bureaucrat
Manipulator Administrator and Consultant or was dismissed (Dismissed) in the sense
that intended users chose to avoid using them In conclusion the purpose of this approach
is not to ldquoanimaterdquo the information system to give it life or a mind of its own but rather
to make explicit the socially constructed roles conferred on the information system by
users and others who are affected by it On this basis it is possible to suggest how the
roles can help us opening up the new areas of exploration concerning the fruitful use of
information technology [70]
Jinyoul Lee Keng Siau and Soongoo (2003) conducted a study on the topic ldquoEnterprise
Integration with ERP and EAIrdquo They state that to survive and thrive in these hypercom-
petitive markets it is essential for a company to understand rapidly changing business
circumstances To rapidly respond to a changing environment an enterprise must
integrate business functions into a single system efficiently utilizing information
technology and share data with third-party vendors and customers While ERP forces the
adoption of standard business processes EAI enables enterprise integration over business
object levels ERP thereby supports a centralized business strategy while EAI naturally
accommodates decentralized business processes Lastly they observe the fact True
enterprise integration means both technical and behavioral integration It is not simply
integrating different systems applications or business processes dispersed across an
enterprise It is integrating structural changes different behaviors and various
information systems in an enterprise Enterprise integration is costly and time-
consuming thus management should be cautious in the design of the project
Organizations should not blindly rush into new technologies Top management should
first strive to understand their business and needs for enterprise integration and then
select a methodology of enterprise integration [68]
Wilhelm Scheer and Frank Habermann (2000) in ldquoMaking ERP a Successrdquo have used
business process models at an operational level of e-business to achieve positive results
28
They have talked of different scenarios in e-business As in Business-to-Business
applications such as Supply Chain Management the user has to connect the ERP systems
of all business partners This means he has to fight not only with the thousands of
parameters of a single ERP system but with twice as much (or even more) Another likely
scenario is that the business partners involved in an inter-organizational supply chain are
using ERP systems of different vendors In this case a business process model can be
firstly used to define the conceptual value chain Secondly the conceptual model that is
independent from a certain software vendor can be linked to the repositories of the
different ERP systems in order to customize an integrated software solution These
examples demonstrate that business process models play a major role for the success of e-
business Some ERP vendors like SAP have understood this development and are already
implementing their first model-based e-business applications [94]
Ash CG (2001) in An e-Commerce Model for Extending ERP Systems onto the
Internet An Australian Perspective stated that an established research framework of e-
Business change is used to identify the factors for success of this e-business project
within an ERP environment The results confirm that a successful project was found to
have facilitators in all components of the business framework including the change
environment and project management Further there is the implication that the least
successful e-business projects will have inhibitors in both dimensions especially in the
area of cultural readiness and change management In this case study conflict arose
between local project management initiatives versus a centralized autocratic global ERP
deployment This highlights the need to encourage the balancing of conflicting
organizational knowledge when contemplating the adoption of e-business solutions [7]
Huigang Liang Yajiong Xue William R Boulton Terry Anthony Byrd (2004) ldquoWhy
Western Vendors donrsquot dominate Chinarsquos ERP Marketrdquo Examined cases of failed ERP
system implementation in China and explaining the unique circumstances These foreign
ERP implementation failures emphasize the need to localize strategies even for the
global ERP leaders The general manager of a foreign ERP vendor explained ldquoOne
should understand nationrsquos history and its culture before one starts doing business with
foreign companiesrdquo The cases of failed implementation suggest global ERP vendors
require more than superior technology and experience Their ERP strategies must also
29
address the cultural differences affecting ERP implementations Strategies need to
overcome problems relating to language reporting formats and content cost control
capabilities frequent business process redesigns effective customer support and capable
consulting partners [69]
In the research findings ldquoAn Agency Theory Model of ERP Implementationrdquo Vedabrata
Basu Albert L Lederer (2004) develop a model of testable propositions for applying
agency theory to study the relationship between implementation consultants and client
organizations deploying the ERP systems and to consequently evaluate how the
relationship affects the implementation success Therefore management needs to know
the factors that drive successful ERP implementation a product of the continuous
interaction between the implementation consultants and client firms Agency theory has
been successfully used by different researchers to explain relationships between two
parties seeking a common outcome This paper develops a conceptual model with the
variables and relationships that may play a critical role in explaining the sources of that
frustration It offers a foundation for research that can extend the applicability of agency
theory can help clients and consultants manage their relationships during the
implementation process and thus help them enhance the probability of ERP systems
implementation success It may also be useful for managing other outsourced IS projects
that have implementation settings similar to ERP [10]
Christian Vogt (2002) ldquoIntractable ERP A Comprehensive Analysis of Failed Enterprise-
Resource ndash Planning Projectsrdquo makes an analysis of possible causes that led to the
disasters for ERP implementation failures and suggests software engineering processes
that help avoiding such outcomes The Model Based Architecting and Software
Engineering (MBASE) guidelines developed by Prof Barry Boehm and Daniel Port at
the Center for Software Engineering (CSE) at USC provide a base for these elaborations
for a long time SW Engineering experts have praised commercial-off-the-shelf (COTS)
packages as the panacea to complex software development Far from it the elaboration
in this survey shows that the deployment of COTS packages may be extremely intrinsic
one does not know whether some COTS software adheres to its interface specifications or
how deficient it is or how well its performance scales up as workload demand grows
The upshot is that COTS software will always be an alien element in the software to be
30
developed and it should be considered that way Dye-in-thendashwool COTS package ERP
systems exhibit plenty of dangers Only if appropriate risk management and enough time
for stepwise employment is provided for ERP system can be tamed [115]
In the research findings ldquoImplementing Best Practices in ERP for Small amp Medium
Enterprisesrdquo Rashmi Jha A K Saini and M N Hoda (2008) provides an interesting
insight into taking ERP implementation as a project and develops problem driven
approach to examine its complex phenomena The implementation process will be
divided into several components which will reflect the nature of ERP projects and makes
them distinctive from other systems design methods This paper also addresses critical
issues relating to developing entrepreneurship for sustainable development of small and
medium size enterprises(SMEs) for its future extensions and added benefits It may also
be useful for managing other outsourced Information System (IS) projects that have
implementation settings similar to ERP [53]
Saumyendu and Maya Daneva (2003) in ldquoLessons Learnt from Five Years of Experience
in ERP Requirements Engineeringrdquo summarizes one companyrsquos five years of experience
in making a generic ERP RE model a live process It rests on previously published ERP
RE process assessment results and reports on what we learnt with particular focus on
typical issues organizations face when adopting a standard model and solutions that can
be used to avoid those issues in the future Each of our lessons is described together with
a RE practice technical foundation for the practice and engineering techniques for the RE
practitioner The lessons were used to refine our Corporate Documentation Model a
process-focused and template-based ERP-architecture framework [40]
In ldquoResearch on Agent-Based Architecture of ERP For Small amp Medium-Size
Enterpriserdquo Rui-Xue Fu Zhan-Hong Xin and Can Chen (2007) suggests that with the
rapid development of information technology and the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward To address these problems a MAERP system architecture has been developed
in which the agents are classified into four types F-Agent for realizing an operation
application C-Agent for coordinating with other agents I-Agent for a communication
31
tool between the user and the MAERP system and T-Agent for performing specific tasks
and data collecting [35]
Xavier Franch and Juan Pablo Carvallo (2003) in the research paper Using Quality
Models in Software Package Selection found that the absence of structured descriptions
of quality features and user quality requirements makes selecting the right software
package difficult The authors propose a methodology for describing the quality features
of domain-specific software packages uniformly and comprehensively using ISOIEC
9126-1 quality standards as a framework [34]
In the paper study ldquoRevisiting ERP Systems Benefit Realizationrdquo Paul Hawking and
Andrew Stein (2004) maintains that many companies initially implemented their ERP
systems to solve Y2K and disparate systems issues These same companies are now
looking at a how to strategically leverages their investment in these systems through the
implementation ldquosecond waverdquo functionality This paper identifies the expected and
actual benefits of ldquosecond waverdquo implementations In addition it identifies barriers which
limit the benefit realization The findings reinforce that ERP implementations are people
focused projects which rely heavily on change management for success [45]
Hamid Nach and Albert Lejeune (2008) ldquoImplementing ERP in SMEs Towards an
Ontology Supporting Managerial Decisionsrdquo state that the purpose of this research
project is to consolidate and formalize as ontology on the basis of an extensive literature
review the key processes and skills required for successful implementation of ERP in an
SME Using the Proteacutegeacute software program the research identified and formalized 395
terms each of which has its own definition Exploitation of this ontology could take
multiple and varied forms including creation of a learning system an on-line cooperation
platform or a project management process mapping tool contributing to successful use of
ERP in SMEs [81]
While Gul Tekin Temur and Sitki Gozlu (2008) ldquoDetermination of Performance Criteria
for ERP Software Technologyrdquo mention that the main goal is to determine the
performance criteria for ERP software technology with respect to their sources Today
the companies are in interaction with many internal and external partners and have to face
many situations in various environments Especially many small and medium sized firms
utilize ERP software technology to plan their business interactions in the chain In this
32
study firstly a literature search is accomplished Then in order to reveal the performance
criteria a large-scale automotive company has been selected to conduct interviews with
managers Also the meeting reports of a few small and medium-sized companies have
been analyzed As a result of the analysis on findings the common views of the firms
about performance criteria are classified into four groups according to their sources such
as people technical managerial and economical The sub factors of these main criteria
are also taken into account in order to point out the origins of the criteria The results of
the study will provide insight to researchers and as well as to professionals in the practice
[108]
Maya Daneva (2004) in ERP Requirements Engineering Practice Lessons Learned
mentioned the fact that organizations implementing Enterprise Resource Planning (ERP)
systems have been increasingly adopting generic off-the-shelf requirements engineering
(RE) process models Yet little information exists about the challenges of making a
generic RE model a life process This article discusses why bringing an off-the-shelf
process in is not a sufficient foundation The author shares experiences acquired over the
past five years of eliciting modeling and validating requirements in ERP projects and
highlights typical issues and their solutions Among the keys to success are planning RE
model use in the clients context and installing processes to support key RE activities [25]
While the article ldquoRescuing Troubled Software Projects by Team Transformation A
Case Study with an ERP Projectrdquo by Kim Man Lui and Keith C C Chan (2008)
differentiates various reasons of ERP project failures It further states that many software
projects fail whether failure is measured in terms of budget schedule or some other
requirement The causes of such failures are many but are not always easily recognized
This is not the least due to the human dimension of corporate activities as spurious or
misdiagnosed issues in Enterprise Resource Planning (ERP) projects can take on a life of
their own and become a magnet for company politics This paper reports an industrial
case in which the senior management attempted to deal with a troubled ERP
implementation (SAP R3) in an international fast moving consumer goods (FMCG)
company during 2001 and 2002 This paper reflects this dimension as it uses original
emails and PowerPoint slides to recount a number of representative episodes in a troubled
but ultimately successful project At the heart of this success is the realization that
33
whereas it can be difficult and time-consuming to do root-cause analyses it is relatively
simple to identify problem owners In this case the senior management without IT
backgrounds turned around a failing project by reorganizing the team structure according
to process areas so that issues in each process area had one problem owner We
summarize the managementrsquos actions into a troubleshooting framework and in addition
suggest three actions for rescuing troubled projects keep the project manager but narrow
down the managerrsquos scope of responsibility to one or two process areas assign the right
people to be responsible for other process areas and have the General Manager chair the
ERP meetings [60]
In the PICMET 2006 Proceedings on ldquoOptimizing the Change Management of Enterprise
Resource Planning Systems Implementationsrdquo Onur Kerimoglu and Nuri BaUogluI
(2006) maintain that although Enterprise Resource Planning (ERP) systems are being
used widely all around the world they also carry out many problems as well as their
benefits These systems are well known for enhancing cross functional efficiency and
effectiveness through the integration of all information flowing throughout an
organization However during different project life cycle stages of ERP systems this
integration may not be provided because of the formulation of incompatibilities which
are greater than the optimum level among different parties like ERP system processes of
the organization and system users Within this study existing incompatibilities between
these parties are modeled respectively In common the model propose that the ERP
product mostly matching with the processes of the organization should be selected
processes of the organization should be changed for being compatible with the ERP
system and system users should be educated new qualified people should be hired etc
for making the system and processes more familiar to people Here the point is that all of
these are done for keeping incompatibilities between the ERP system processes and
people at minimum level because this minimalism will avoid optimization and utilization
problems This study not only handles problems of ERP from a newer perspective but
also provides insight to managers about managing the change and utilizing their resources
efficiently for adopting the ERP software across the organization [59]
Capaldo Guido and Rippa Pierluigi (2008) in ldquoA methodological proposal to assess the
feasibility of ERP Systems Implementation Strategiesrdquo stated that Continuous failures in
34
ERP systems implementation project are today the main challenge in the feasibility of
integrated information systems Failure can be determined by different factors both from
technological side and organizational side if not well managed In this paper we propose
a methodological approach based on technochange management in order to assess the
feasibility of ERP implementation strategy and reduce the risk of failure in terms of
project metrics and early operational metrics A case study in a big Italian
Telecommunication Firm will be presented [19]
ldquoCase Study of PLIVA Pharmaceuticals Inc - Aligning ERP System Implementation
with Business Process Changerdquo is very relevant and contemporary paper presented by
Vesna Bosilj Vuksic and Mario Spremic (2004) The main objective of this paper is to
present the impacts of information technology (IT) and enterprise resource planning
(ERP) systems in business process renovation projects A case study of business process
reengineering project and the implementation of the SAP software solution in PLIVA
(PLIVA pharmaceuticals Inc) are presented [116]
In ldquoKey Factors Driving the Success of Technology Adoption Case Examples of ERP
Adoptionrdquo Chonyacha Suebsin and Nathasit Gerdsri (2009) address the issues that
impact technology adoption within an organization Several factors influencing
technology adoption process are identified from the literature review Case examples of
the adoption of a new management technology Enterprise Resource Planning (ERP) are
presented to illustrate the situations of technology adoption in organizations From the
case examples the factors influencing technology adoption in organizations are
consistent with the factors identified from the literatures The further discussion also
reveals the additional determinants including the clarification of project scope individual
commitment and communication which should be taken into consideration when an
organization adopts a new technology [105]
Maya Daneva (2002) in her paper ldquoUsing Maturity Assessments to Understand the ERP
Requirements Engineering Processrdquo mentions that applying standard requirements
engineering (RE) processes is a major trend in todayrsquos Enterprise Resource Planning
(ERP) software engineering It emerged five years ago with the promise to provide a
mechanism helping ERP project organizations deliver their business requirements timely
and within budget This paper looks in depth at a standard ERP RE process and seeks
35
answers to four questions how well it is defined what are the risks associated with its
application in matureimmature organizations what are the essential practices that
contribute to its success and what are the costs of the process and the quality of the
delivered results The main motivation of this paper is to provide some practical advice
for using assessments to increase project teamsrsquo understanding of the ERP RE process
[26]
Fan JC and Kwoting Fang (2006) ldquoERP Implementation and Information Systems
Success A Test of DeLone and McLeans Modelrdquo present their research that develops
and tests a theoretical extension of DeLone and McLeans model of information system
(IS) success which explains personnel belief that contributes to users utilization of ERP
(enterprise resource planning) systems The extended model is tested using the structural
equation model (SEM) a survey of 202 end-users from ten Taiwanese enterprises that
has implemented Data Systems workflow ERP systems is conducted The theoretical
model proposed in this study provides insight into how the concept of useful perception is
incorporated into DeLone and McLean model and plays a critical mediated role to
influence system usage and its associated satisfaction The implications of these findings
for researchers and practitioners are discussed [32]
In the research findings ldquoManaging ERP Implementation Failure A Project Management
Perspectiverdquo Charlie C Chen Chuck C H Law and Samuel C Yang (2008) stated that
Information Technology (IT) projects are susceptible to changes in the business
environment and the increasing velocity of change in global business is challenging the
management of enterprise systems such as enterprise resource planning (ERP) At the
same time system success depends on the rigor of the project management processes
Scope creep poor risk management inadequate allocation of human resources over time
and vendor management are some common problems associated with the implementation
of an enterprise system These issues pose threats to the success of a large-scale software
project such as ERP This research adopts a case study approach to examine how poor
project management can imperil the implementation of an ERP system Having learned
the lessons from the failure of its first ERP implementation the company in this case
reengineered its project management practices to successfully carry out its second ERP
implementation Many critical project management factors contributed to the failure and
36
success of this companyrsquos ERP system This study explores and identifies critical
elements of project management that contributed to the success of the second ERP
implementation For those organizations adopting ERP the findings provide a roadmap
to follow in order to avoid making critical but often underestimated project management
mistakes [21]
Rafa Kouki Robert Pellerin and Diane Poulin (2008) in An Exploratory Study of ERP
Assimilation in Developing Countries The Case of Three Tunisian Companies assessed
that ERP systems could be considered as the most difficult systems to be assimilated
Very little research however has been realised to investigate the determinants of success
of the ERP assimilation process There has been also a dearth in research about ERP
projects in general and ERP post-implementation and assimilation in particular in
developing countries Using a case study methodology grounded in the diffusion of
innovation theory this study tries to understand the factors that could improve or
challenge the ERP systems assimilation process in three Tunisian companies Our
findings highlighted the importance of several factors such as top management support
strategic alignment IT expertise training communication organizational culture and
coercive pressures [62]
Ian Sommerville (2008) Construction by Configuration Challenges for Software
Engineering Research and Practice observed that past ten years have seen a radical shift
in business application software development Rather than developing software from
scratch using a conventional programming language the majority of commercial
software is now developed through reuse ndash the adaptation and configuration of existing
software systems to meet specific organizational requirements The most widespread
form of reuse is through the use of generic systems such as ERP and COTS systems that
are configured to meet specific organizational requirements In this paper he discussed
the implications of software construction by configuration (CbC) for software
engineering Based on his experience with systems for medical records and university
administration he highlighted some of the issues and problems that can arise in
construction by configuration he discussed problems that arise in CbC projects and
identify a number of challenges for research and practice to improve this approach to
software engineering [104]
37
SV Deshmukh and RR Lakhe (2008) in the research paper ldquoSix Sigma ndash An Innovative
Approach for Waste Reduction A Case Study of an Indian SMErdquo present a case study
aimed at reducing waste at an SME engaged in manufacturing of corrugated boxes The
Define Measure Analyze Improve Control strategy of Six Sigma methodology was
followed to identify probable causes for wastages After studying the system and
implementation of six sigma tools an overall 227 waste reduction was achieved
Individually out of a total seven processes 5 showed waste reduction in excess of 40
This reduction was statistically significant at Plt005 The study confirmed successful
implementation of six sigma to minimize waste generation and in terms saving in
manufacturing costs or increasing the bottom line [29]
While in ldquoERP Implementation Critical Success Factors - The Role and Impact of
Business Process Managementrdquo Yasar F Jarrar Abdullah Al-Mudimigh and Mohamed
Zairi (2000) investigate the role and impact of business process management in
successful ERP implementation The paper starts by defining business process
management ERP and the ERP critical success factors The impact of business process
management on successful ERP implementation is then assessed through looking at the
experiences of several organizations The paper concludes by highlighting best practices
for capitalizing on business process management for successful ERP implementation
[52]
M S Camara L Kermad and A El Mhamedi (2006) in the paper ldquoRisk Prediction in
ERP Projects Classification of Reengineered Business Processesrdquo maintain that
Companies have been implementing ERPs for almost ten years now and more the same
implementation problems continue to occur More and more ERP projectrsquos technological
challenges are accompanied by critical dimensions related to the management of the
transformational effects of these projects on the organization Indeed risk management in
this kind of project is not very structured and misses specific methods In this article they
propose a structured methodology for risk management particularly in the BPR (Business
Process Reengineering) sub-project of ERP implementation The final aim of our work is
to decease appreciably resistance to organizational change which poses the greatest
obstacle to business process reengineering efforts They propose to adapt OSR (Optimal
Set Reduction) a risk management method used in software development for the risk
38
management in ERP implementation They address specially the risk related to the
changes in enterprise processes in the ERP project To achieve this objective they
propose to define business process change metrics starting from business process
complexity metrics that exist in the literature [18]
ldquoExploration and Verification of Factors in the Front-end Stage of the ERP
Implementation Process Evidence from Case Study and Survey Researchrdquo Kun Shi and
Qiang Lu (2009) depict that ERP (Enterprise Resources Planning) is widely used to
improve business performance This paper explores how the factors associated with the
Front-end ERP Implementation Process (FEIP) affect the implementation outcome First
based on literature review a preliminary framework with 12 hypotheses is developed
Then Grounded Theory is applied for a case study to further extract and verify the factors
and sub-factors These factors are finally identified as strategic planning corporate
culture user characteristics organization-process-system maturity external expertise
engagementsupport and project preparation Furthermore the significance and
correlation of all the factors are detected by conducting survey research with SPSS as a
tool for analysis The study shows that the framework is valid and that among six three
factors have strong impact on the ERP implementation result whereas others are less
influential Implication is given and limitation is indicated at the end [63]
Huo Lingyu Liu Bingwu and Li Juntao (2009) in the paper ldquoAn ERP System Selection
Model Based on Fuzzy Grey TOPSIS for SMEsrdquo present a new fuzzy multi-criteria
decision making (FMCDM) approach which integrates the technique for order preference
by the similarity to ideal solution (TOPSIS) grey relation and fuzzy set theory for
enterprise resource planning (ERP) system evaluation and selection in the Small and
Medium-Sized Enterprises (SMEs) In this study the characteristic of the alternative with
respect to the criteria are represented in terms of a linguistic term set and the weight of
the criteria is described by triangular fuzzy numbers respectively According to the grey
theory and fuzzy set theory a closeness coefficient is defined to determine the ranking
order of all alternatives by calculating the grade of grey relation to the fuzzy positive-
ideal solution (FPIS) and fuzzy negative-ideal solution (FNIS) simultaneously Finally
an example is shown to highlight the procedure of the proposed method [48]
39
Gao Juntao Zhang Li Wang Zhiyao (2008) summarized their findings in ldquoDecision
Support for Handling Gaps between ERP functionalities and Organizational Needs A
Goal Reasoning based approachrdquo They found that in the process of selecting
commercial off-the-shelf (COTS) ERP systems it is inevitable to encounter gaps between
ERP software and organizational needs Gaps occur when COTS attributes do not exactly
match organizational needs and they make organizational users and software vendors in
the dilemma whether to adapt as-is business processes or to customize software
packages A decision support method for handling gaps is proposed in this paper Firstly
organizational goal-process models are built as the base for decision making Secondly
the idea of evidence theory is introduced into goal reasoning and a quantified algorithm is
proposed to evaluate the impacts of different business processes on high level goals
which are critical to make decision At last the risk is discussed to rank intervals which
specify the expected utilization of business processes [56]
Yvonne Dittrich and Sebastien Vaucouleur (2009) conducted a research on the topicrdquo
ERP Customization as Software Engineering Knowledge Sharing and Cooperationrdquo and
argue that Enterprise resource planning (ERP) systems must be configured and
customized to fit a specific company The authors discuss cooperation with regard to ERP
systems customization Enterprise resource planning (ERP) vendors provide multiple
configuration possibilities ranging from module selection to master data provision to
steer access rights for different users These configuration possibilities cover anticipated
variability If the customer requires adaptation beyond whatrsquos anticipated the source
code of the product must be adapted Customizations in this articlersquos context are source-
code-based adaptations of software products The size and complexity of customizations
range from simple report generation to developing independent add-ons that support
specific businessesmdashfor example solutions for flight carriers The size and lead time of
such projects can compare to a full-size software development project They present
empirical research on customization practices of ERP systems as an example of software
development based on customization of standard software They compared customization
with other development practices that are based on integrating existing code and results
underlined the need to rethink software engineering and programming methods and tools
[129]
40
In the paper study ldquoSignificance of Software Metrics in ERP Projectsrdquo S Parthasarathy
and N Anbazhagan (2006) narrate that ERP projects are a subclass of software projects
often accompanied by large-scale organizational changes One of the major reasons found
in the literature for the failure of ERP projects is the poor management of software
processes In this paper we propose a Software Metrics Plan (SNP) containing different
software metrics to manage software processes during ERP implementation Two
hypotheses have been formulated and tested using statistical techniques to validate the
SNP The statistical analysis of the collected data from an ERP project supports the two
hypotheses leading to the conclusion that the software metrics are momentous in ERP
projects [84]
Antony Marsh (2000) in the article ldquoThe implementation of Enterprise Resource Planning
systems in small and medium Manufacturing enterprises in south-east Queensland a case
study approachrdquo examines the implementation of ERP systems in smallmedium-sized
enterprises in South East Queensland Australia Nine case studies were conducted to
determine factors for success or failure in the implementations Key success factors
identified included cross-functional team approaches organizational experience of
similar scale IT or organizational change projects and lsquodeeprsquo understanding of the key
issues relating to ERP implementations Failure factors identified included top-down or
consultant driven implementations IT department driven implementations or
implementations where the EFV is seen as a quick technological fix to problems within
the operation of the firm rather than as a strategic investment [78]
Christian Doumlrner Sebastian Draxler Volkmar Pipek and Volker Wulf (2009) through
their study ldquoEnd Users at the Bazaar Designing Next-Generation Enterprise Resource
Planning Systemsrdquo propose that the bazaar metaphor has developed a lasting
popularity in software engineering especially as software architectures have evolved
from monoliths to service orientation Nevertheless the metaphor is limited because it
doesnt consider end users those who develop software for themselves Introducing such
an end user the prosumer to the bazaar not only suggests a changing division of work
in software development but also calls for different functionality and architectural
choices The authors evaluated changing software architectures from an end-user
development (EUD) perspective taking the case of enterprise resource planning (ERP)
41
systems as traditionally monolithically designed systems moving toward service
orientation On the basis of the studys findings which indicated problems with the
systems technical flexibility the authors developed a tool set for fostering EUD
activities Their new architecture for ERP systems enables end users to create their own
solutions [31]
Kenny KF Lee (2000) in ldquoThe Five Disciplines of ERP Software Implementationrdquo has
identified the critical factors in businesses which learn grow and succeed This paper
applies the central concepts of the book its five disciplines to the software business
specifically the management of software implementation Using the learning challenge
posed by the organization-wide implementation of Enterprise Resource Systems (Em) the
paper covers how EM software project leaders may manage themselves their teams
business vision and corporate culture and team members to create a survival machine
which can thrive in the current economic and technological climate [67]
Piet MA Ribbers amp Schoo (2000) in his paper ldquoDesigning Complex Software
Implementation Programsrdquo raises a central question that how one can design of Program
Management contributes to the success of complex software implementations
Incomplete goal specifications lack of communication and underestimation of project
complexity are signs of insufficient program and project management To avoid these
pitfalls he proposes ways that have worked well in recent complex multi-project ERP
implementations (programs) Answering the above question raises the problem of
adequately defining and measuring the level of complexity of an implementation
program A conceptual model was developed which identifies program management
factors that are proposed to have an impact on implementation success Fifteen cases
were studied to find support for the proposed framework [88]
ldquoDetecting Gaps between ERP Software and Organizational Needs A Semantic
Similarity Based Approachrdquo is very relevant and contemporary paper presented by Gao
Juntao and Zhang Li (2008) It depicts that Gap analysis is one of the most important
phases in implementation of enterprise resource planning (ERP) system In this paper an
approach is proposed to automatically detect gaps between software capacities and
organizational needs based on semantic similarity computation The approach takes two
business process models as input and one specifies software capacities and the other
42
describes organizational needs The output of it is a report of gaps As a matter of fact
the differences between application domain and software discipline make semantic
heterogeneity a key problem in gap detection therefore the technologies of semantic
similarity computing are employed to resolve ambiguity issues caused by the use of
synonyms or homonyms In particular the idea of similarity propagation is introduced to
pick out a mapping between corresponding activities and data and Hungarian algorithm
is employed to reduce its time complexity Then the similarity of whole models is
measured according to the minimal total cost of change operations Finally an
experiment is given to evaluate the method [36]
In the research publication ldquoERP System Adoption - Does the Size Matterrdquo Sanna
Laukkanen Sami Sarpola and Petri Hallikainen (2005) investigate the relationship of
enterprise size to the constraints and objectives of ERP systems adoption The survey
data based on the responses of 44 companies indicates that significant differences exist
between small medium-sized and large enterprises in ERP system adoption Specifically
the findings suggest that small companies experience more knowledge constraints than
their larger counterparts in ERP adoption Further while being the most prevalent
objective for ERP adoption in all the company groups business development through
ERP adoption is considered especially important by the medium-sized and large
enterprises Finally the findings of the study suggest that instead of considering small
and medium-sized enterprises as one homogenous group the differences between these
two groups of companies should be acknowledged in the future research [65]
In their paper ldquoModel Based on CSCWrdquo Wedian Liang XuFen Zhenkun Li Rong Xiao
JunFeng Hu (2005) summarise their finding They feel that Software testing is an
important component of the software engineering and an important link that the software
development quality is guaranteed Using the reasonable model for software testing can
reduce the expenses of testing in the developing activity in the course of testing thus cut
down the cost of software development In this paper we put forward a model for
software testing bused on CSCW technology that run through each stages of software
development cycle If can find the mistake in the software as soon as possible has
shorten the time taken for testing in the course of the development of software testing
43
effectively Finally we applied the model to the testing project which develops ERP
system and then receive the ideal result [118]
In their paper ldquoThe Research and Development of IMIS for Small and Medium-sized
Printing Enterpriserdquo Taolin Ma Xiaoming Chen Yansong Sun Xiurong Li (2009)
analyzed the fact that the basic management thought of inventory management
information system (IMIS) was established by analyzing the inventory management
theory of modern enterprise In this system which using the architecture of CS the stores
were classified by ABC management method the inventory control was completed by
setting up the safety stock and the largest stock the analysis and design of IMIS were
finished This IMIS was developed to meet the practical requirements of small and
medium-sized printing enterprise in our country It can not only be used as the important
measure of the informationized construction for small and medium sized printing
enterprise but also used as a subsystem of enterprise ERP system IMIS could improve
enterprise management level realize rapid transformation of enterprise and finally
enhance the competitiveness of enterprise in market economy [106]
Jiangao Deng and Yijie Bian (2008) in the research paper ldquoConstructing a Risk
Management Mechanism Model of ERP Projectrdquo mention that in the process of
information project implementation of manufacturing enterprises there are many risks to
set up a set of risk management mechanism is guaranteed for them to succeed in ERP
implementation Firstly based on the analysis of ERP project implementation of China
the paper introduced the risk management methodology systems and the relative model
which includes three main steps identifying risk evaluating risk and controlling risk
After that on the aspects of decision implementation and application stages of
manufacturing ERP project life cycle the paper discussed risks of each stage and put
forward a two-dimension matrix risk management strategy Then a mechanism model of
ERP project risk management is constructed which shows that information risk control
strategies of the last two stages not only depend on resources of these stages but also
have a diverse relationship with the last stage Finally according to the successful
implementation of an enterprisersquos ERP project the paper carried out an effective case
application analysis of risk management mechanism model The lack of improvement in
usersrsquo ERP skill levels and the shortage in documenting the rationale for business rules
44
and configuration decisions were among the critical issues of the post-implementation
stage Indeed all of their respondents stressed the importance of refreshing the usersrsquo
knowledge about the system [28]
Saumyendu Ghosh (2003) in ldquoGlobal Implementation of ERP Software ndash Critical Success
Factors on Upgrading Technical Infrastructurerdquo discusses that implementing an
Enterprise Resource planning (ERP) software in a global environment executive
sponsors face two key challenges While business processes are to be re-engineered to
align with the ERP software best practices technical architecture and infrastructure needs
to be in place globally as per specifications of the packaged software In the legacy
environment different countries or different business units use different systems based
on local standards supported by local resources In the new ERP world globally all the
countries must conform to same technical infrastructure Technical managers face
multiple critical issues implementing a global solution Most of the ERP software is
developed in technically advanced countries standards are often too high for under
developed or developing countries In an effort to bring the global organization to a
common platform different countries need different levels of upgrades In this paper the
authors review key technical issues faced is a global upgrade process to support a global
ERP implementation and how to resolve those We conclude although technical
infrastructure and business process reengineering both are equally important and each
implementation is unique but following some simple steps it is easy to prioritize each
ones during different phases of the project Also time lines of two sub-projects must
converge after initial phase and must follow a common plan for the project to be
successful Multiple scenarios are described to facilitate the process He concludes
although technical infrastructure and business process reengineering both are equally
important and each implementation is unique but following some simple steps it is easy
to prioritize each ones during different phases of the project Also time lines of two
subprojects must converge after initial phase and must follow a common plan for the
project to be successful Multiple scenarios are described to facilitate the process [38]
Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008) ldquoDevelopment and
Implementation of ERPCRM System Based on Open Source Software to Small and
Medium-sized Enterprise in Chinardquo analysed the fact that E-commerce and the
45
development of modern enterprise management raise a number of challenges in the
process of informatization of small and medium-sized enterprises (SME) in china To
address this they present an approach in which the informatization is enhanced by using
Open Source Software with customized policies We analyses the main
informationization obstacles of SME in china bring forward that the lack of bankroll
talents cost and management etc are the key problems to informationization of SME
Furthermore they have developed a textile foreign trade ERP CRM system based on
Open Source Software for the local textile distributor of china integrating financial
distribution sales and service processes given the implement method of overall planning
step-by-step implementation key breakthrough and efficiency guiding In the end we
compare the typical Open Source Software and traditional commercial software point
out the advantages of informatization based Open Source Software to SME in china and
the development trend of Open Source Software for enterprise application [132]
ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information Systems ndash a
Multi-disciplinary Method for ERP System Requirements Engineeringrdquo by Inka Vilpola
Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that ERP systems are in
most cases off-the-shelf software packages and large by their size and complex by their
structure Small and medium-sized enterprises (SMEs) require flexibility of the ERP
system because of their individual operational processes Therefore it is crucial to select
and implement an ERP system that fits the requirements of the intended target processes
To support the requirements engineering of ERP systems we have developed Customer-
Centered ERP Implementation (C-CEI) method The method introduces a multi-
disciplinary approach to the ERP project and provides in-depth understanding of the
companylsquos processes and context of use Using C-CEI method decreases the risk of
SMEs to select an inappropriate system and improves the system acceptance by the
customer companyrsquos employees In this paper we present the method and illustrate it by
three SME case studies [114]
Saumyendu Ghosh (2000) in ldquoChallenges on a global implementation of ERP softwarerdquo
discusses that some of the unique challenges in ERP implementation are satisfying
multiple countries statutory requirements and reporting to the corporate head quarters
from one installation of the software conflicting interests between different business
46
entities lack of experienced implementators in all the countries and eminent users of
multinational advantages He discusses different aspects of these challenges in detail and
point out that ERP software can provide only one solution for a particular business
process unless workarounds are available from experienced implementation Different
counties adopt different reporting and accounting practices and therefore an ERP
implementation cannot solve all problems that global corporation may have multiple
countries in the scope of the project due to absence of standard global processes across
the organization He concludes that the most important critical success factor of these
international implementations are how quickly these corporations can reengineer existing
business process to adopt best practices of using an ERP system [38]
Dong Cheng Feiyan Deng Hongtao Li (2006) ldquoCritical Factors for Successful
Implementation of ERP in Chinardquo in their study propound a theoretical model for
successful implementation of Enterprise Resource Planning (ERP) under Chinarsquos
environment and the authors analyze the model empirically through structural equation
modeling The authors find that strategically IT planning abilities leadershiprsquos support
and the skills of IT section business processing abilities learning abilities and change
management abilities has a significant positive impact on successful ERP implementation
[22]
Parijat Upadhyay (2008) in his research studies ldquoAn explorative study to identify the
Critical Success Factors for ERP Implementation in Indian small and medium scale
enterprisesrdquo explores the existing literature on ERP implementation issues in context to
small and medium scale enterprises and attempts a compilation of the factors that assume
great significance while implementing ERP in SMErsquos Given the nature and magnitude of
the problems in encountered in implementing an ERP project this study would attempt to
identify the critical success factors(CSFrsquos) for a successful implementation of an ERP
project since it calls for substantial effort on the part of all the stake holders involved to
make the implementation a success [111]
ldquoThe ERP Implementation of SME in Chinardquo Yuanqiang Xia Peter Lok and Song Yang
(2009) presented the fact that ERP implementing for small and middle size enterprise
(SME) is different from the large one Based on the analysis on the character of ERP
marketing and SMEs of China 6 critical success factors are recommended The research
47
suggests that the top management support is most important to ERP implement in SME
of China in which paternalism prevails Database of management and capital are main
obstacles ERP 1 or ERP 2 fits to demand of SME high power project team has
tremendous significance in the situation of absence of IT engineer for SME education
and training is helpful to successfully ERP implementing The results service as better
understanding the ERP implementation of SME in China and gaining the good
performance of ERP implementation [126]
Yan Xu and Chung-Hsing Yeh (2009) in the article ldquoStrategic Management of
Performance Measures for an ERP Implementation Project Teamrdquo present a new
evaluation model for managing performance measures of an enterprise resource planning
(ERP) implementation project team in an organization With the performance measures
classified into four strategic perspectives of the balanced scorecard the evaluation model
enables the goal alignment between the project team and the organization A new
algorithm using the concept of multi-attribute decision making is developed to obtain the
relative importance value for each performance measure for its contribution to the
strategic goals of the organization The higher the importance values of a performance
measure the more important the role it plays in determining the responsibilities of the
corresponding project team player Understanding the importance of the key performance
measures will help an organization well-prepare to launch a project and have the project
being organized in advance A case of an ERP implementation project in an integrated
manufacturing corporation is presented to demonstrate the applicability of the evaluation
model and its effective management of the performance measures [124]
Zhang Yanhong (2009) in his research paper ldquoERP Implementation Process Analysis
Based on the Key Success Factorsrdquo describes that Enterprise Resource Planning (ERP) is
an amalgamation of a companys information systems designed to bind more closely a
variety of company functions including human resources inventories and financials
while simultaneously linking the company to customers and vendors This thesis is based
on the theory of product life cycle and the process of ERP is divided into four phase
planning implementation stabilization and improvement Critical success factors in each
phase are identified by paper research case study and investigation An ERP
implementation process model based on the critical Success factors (CSFs) is proposed in
48
the paper The thesis analyzes the global planning stages and business process rebuilding
in the process of QIHE pharmaceuticals ERP Improvement on management and
financing before and after ERP implementation are contrasted and we come to the
following conclusions (1) The CSFs in the planning phase is comprehensive
investigation and evaluation (2) The CSFs in the implementation phase is effective
project management team (3) The CSFs in the stabilization phase is appropriate
information management system (4) The CSFs in the improvement phase is change on
demand and continue to innovate (5) The CSFs throughout the product life cycle is
business process rebuilding [131]
Van Stijn E and Wensley A (2001) ldquoOrganizational memory and the completeness of
process modeling in ERP systems some concerns methods and directions for future
researchrdquo mentioned that Enterprise resource planning (ERP) systems not only have a
broad functional scope promising to support many different business processes they also
embed many different aspects of the companyrsquos organizational memory Disparities can
exist between those memory contents in the ERP system and related contents in other
memory media such as individualsrsquo memories and the organizational structure and
culture It is our contention that in general these disparities or memory mismatches as
we will refer to them lead to under-performance of ERP systems In this paper they focus
on potential memory mismatches that may arise with respect to the embedding of process
knowledge within ERP packages Packages such as SAP provide a varied and rich
environment for process modeling However they suspect that there are still many
instances where process knowledge is either lost or represented in different ways in
different parts of the organization The overall thrust of the paper is to identify a variety
of concerns intriguing questions and avenues for future research [112]
Eric Kimberling (2008) in his article ldquo The Role of Lean Six Sigma in ERPrdquo insisted
that there are a number of things to consider when considering a new ERP system like six
sigma lean manufacturing or other business transformation projects that has the capacity
to measure reducing waste managing change well continuous improvement etc [133]
William H Gaw (2010) ldquoEight Basics of Lean Six Sigma for Manufacturing Firmsrdquo In
the efforts to draw closer to customers many manufacturers have lost focus on what
should be a companyrsquos primary success factor ndash profitable growth In todayrsquos competitive
49
manufacturing environment it takes more than quick fixes outsourcing and downsizing
for companies to consistently achieve their growth and profit objectives While these
options may yield temporary financial relief they will not lead the way to long-term
growth and profitability For companies to grow and consistently exceed bottom line
expectations they need to get lean And to get lean they should master eight basics of
Lean Six Sigma in the form of information integrity performance measurement
sequential production point-of-use logistic cycle time management production linearity
and resource planning and customer satisfaction [134]
Brehm L and Markus M L (2000) in The Divided Software Life Cycle of ERP
Packages mentioned that traditional information system life cycle (SLC) focuses on the
activities performed by company developing implementing and maintaining software for
its own internal use Enterprise resource planning (ERP) software packages change the
SLC in several important ways This paper presents an extension of the SLC model for
ERP packages The lsquodivided software life cyclersquo (DSLC) model features an equal
emphasis on the activities performed by the ERP adopting company and the ERP vendor
[15]
Alavi M and Carlson P (1992) A Review of MIS research and disciplinary
development The perceived status of journals in which MIS research is published is an
important issue to academics The number of IS-related journals has increased through
the years yet it is not obvious which are the ldquoleadingrdquo journals or what criteria should be
used to determine this This article addresses these issues by (1) evaluating and
analyzing previous studies in which MIS related journals have been ranked (2)
determining top-ranked journals and placing them into two levels or tiers based on
previous studies and (3) establishing a profile through a systematic analysis of the nine
journals in the first tier This study identified 17 highly ranked journals for publication
Nine were placed in the first tier and eight in the second tier In addition to IS-specific
journals publications included management science computer science and business-
oriented journals The individual strategies for improving software productivity are
identified Issues related to software costs and controlling them are examined and
discussed It is pointed out that a good framework of techniques exists for controlling
software budgets schedules and work completed but that a great deal of further progress
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 17
28
They have talked of different scenarios in e-business As in Business-to-Business
applications such as Supply Chain Management the user has to connect the ERP systems
of all business partners This means he has to fight not only with the thousands of
parameters of a single ERP system but with twice as much (or even more) Another likely
scenario is that the business partners involved in an inter-organizational supply chain are
using ERP systems of different vendors In this case a business process model can be
firstly used to define the conceptual value chain Secondly the conceptual model that is
independent from a certain software vendor can be linked to the repositories of the
different ERP systems in order to customize an integrated software solution These
examples demonstrate that business process models play a major role for the success of e-
business Some ERP vendors like SAP have understood this development and are already
implementing their first model-based e-business applications [94]
Ash CG (2001) in An e-Commerce Model for Extending ERP Systems onto the
Internet An Australian Perspective stated that an established research framework of e-
Business change is used to identify the factors for success of this e-business project
within an ERP environment The results confirm that a successful project was found to
have facilitators in all components of the business framework including the change
environment and project management Further there is the implication that the least
successful e-business projects will have inhibitors in both dimensions especially in the
area of cultural readiness and change management In this case study conflict arose
between local project management initiatives versus a centralized autocratic global ERP
deployment This highlights the need to encourage the balancing of conflicting
organizational knowledge when contemplating the adoption of e-business solutions [7]
Huigang Liang Yajiong Xue William R Boulton Terry Anthony Byrd (2004) ldquoWhy
Western Vendors donrsquot dominate Chinarsquos ERP Marketrdquo Examined cases of failed ERP
system implementation in China and explaining the unique circumstances These foreign
ERP implementation failures emphasize the need to localize strategies even for the
global ERP leaders The general manager of a foreign ERP vendor explained ldquoOne
should understand nationrsquos history and its culture before one starts doing business with
foreign companiesrdquo The cases of failed implementation suggest global ERP vendors
require more than superior technology and experience Their ERP strategies must also
29
address the cultural differences affecting ERP implementations Strategies need to
overcome problems relating to language reporting formats and content cost control
capabilities frequent business process redesigns effective customer support and capable
consulting partners [69]
In the research findings ldquoAn Agency Theory Model of ERP Implementationrdquo Vedabrata
Basu Albert L Lederer (2004) develop a model of testable propositions for applying
agency theory to study the relationship between implementation consultants and client
organizations deploying the ERP systems and to consequently evaluate how the
relationship affects the implementation success Therefore management needs to know
the factors that drive successful ERP implementation a product of the continuous
interaction between the implementation consultants and client firms Agency theory has
been successfully used by different researchers to explain relationships between two
parties seeking a common outcome This paper develops a conceptual model with the
variables and relationships that may play a critical role in explaining the sources of that
frustration It offers a foundation for research that can extend the applicability of agency
theory can help clients and consultants manage their relationships during the
implementation process and thus help them enhance the probability of ERP systems
implementation success It may also be useful for managing other outsourced IS projects
that have implementation settings similar to ERP [10]
Christian Vogt (2002) ldquoIntractable ERP A Comprehensive Analysis of Failed Enterprise-
Resource ndash Planning Projectsrdquo makes an analysis of possible causes that led to the
disasters for ERP implementation failures and suggests software engineering processes
that help avoiding such outcomes The Model Based Architecting and Software
Engineering (MBASE) guidelines developed by Prof Barry Boehm and Daniel Port at
the Center for Software Engineering (CSE) at USC provide a base for these elaborations
for a long time SW Engineering experts have praised commercial-off-the-shelf (COTS)
packages as the panacea to complex software development Far from it the elaboration
in this survey shows that the deployment of COTS packages may be extremely intrinsic
one does not know whether some COTS software adheres to its interface specifications or
how deficient it is or how well its performance scales up as workload demand grows
The upshot is that COTS software will always be an alien element in the software to be
30
developed and it should be considered that way Dye-in-thendashwool COTS package ERP
systems exhibit plenty of dangers Only if appropriate risk management and enough time
for stepwise employment is provided for ERP system can be tamed [115]
In the research findings ldquoImplementing Best Practices in ERP for Small amp Medium
Enterprisesrdquo Rashmi Jha A K Saini and M N Hoda (2008) provides an interesting
insight into taking ERP implementation as a project and develops problem driven
approach to examine its complex phenomena The implementation process will be
divided into several components which will reflect the nature of ERP projects and makes
them distinctive from other systems design methods This paper also addresses critical
issues relating to developing entrepreneurship for sustainable development of small and
medium size enterprises(SMEs) for its future extensions and added benefits It may also
be useful for managing other outsourced Information System (IS) projects that have
implementation settings similar to ERP [53]
Saumyendu and Maya Daneva (2003) in ldquoLessons Learnt from Five Years of Experience
in ERP Requirements Engineeringrdquo summarizes one companyrsquos five years of experience
in making a generic ERP RE model a live process It rests on previously published ERP
RE process assessment results and reports on what we learnt with particular focus on
typical issues organizations face when adopting a standard model and solutions that can
be used to avoid those issues in the future Each of our lessons is described together with
a RE practice technical foundation for the practice and engineering techniques for the RE
practitioner The lessons were used to refine our Corporate Documentation Model a
process-focused and template-based ERP-architecture framework [40]
In ldquoResearch on Agent-Based Architecture of ERP For Small amp Medium-Size
Enterpriserdquo Rui-Xue Fu Zhan-Hong Xin and Can Chen (2007) suggests that with the
rapid development of information technology and the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward To address these problems a MAERP system architecture has been developed
in which the agents are classified into four types F-Agent for realizing an operation
application C-Agent for coordinating with other agents I-Agent for a communication
31
tool between the user and the MAERP system and T-Agent for performing specific tasks
and data collecting [35]
Xavier Franch and Juan Pablo Carvallo (2003) in the research paper Using Quality
Models in Software Package Selection found that the absence of structured descriptions
of quality features and user quality requirements makes selecting the right software
package difficult The authors propose a methodology for describing the quality features
of domain-specific software packages uniformly and comprehensively using ISOIEC
9126-1 quality standards as a framework [34]
In the paper study ldquoRevisiting ERP Systems Benefit Realizationrdquo Paul Hawking and
Andrew Stein (2004) maintains that many companies initially implemented their ERP
systems to solve Y2K and disparate systems issues These same companies are now
looking at a how to strategically leverages their investment in these systems through the
implementation ldquosecond waverdquo functionality This paper identifies the expected and
actual benefits of ldquosecond waverdquo implementations In addition it identifies barriers which
limit the benefit realization The findings reinforce that ERP implementations are people
focused projects which rely heavily on change management for success [45]
Hamid Nach and Albert Lejeune (2008) ldquoImplementing ERP in SMEs Towards an
Ontology Supporting Managerial Decisionsrdquo state that the purpose of this research
project is to consolidate and formalize as ontology on the basis of an extensive literature
review the key processes and skills required for successful implementation of ERP in an
SME Using the Proteacutegeacute software program the research identified and formalized 395
terms each of which has its own definition Exploitation of this ontology could take
multiple and varied forms including creation of a learning system an on-line cooperation
platform or a project management process mapping tool contributing to successful use of
ERP in SMEs [81]
While Gul Tekin Temur and Sitki Gozlu (2008) ldquoDetermination of Performance Criteria
for ERP Software Technologyrdquo mention that the main goal is to determine the
performance criteria for ERP software technology with respect to their sources Today
the companies are in interaction with many internal and external partners and have to face
many situations in various environments Especially many small and medium sized firms
utilize ERP software technology to plan their business interactions in the chain In this
32
study firstly a literature search is accomplished Then in order to reveal the performance
criteria a large-scale automotive company has been selected to conduct interviews with
managers Also the meeting reports of a few small and medium-sized companies have
been analyzed As a result of the analysis on findings the common views of the firms
about performance criteria are classified into four groups according to their sources such
as people technical managerial and economical The sub factors of these main criteria
are also taken into account in order to point out the origins of the criteria The results of
the study will provide insight to researchers and as well as to professionals in the practice
[108]
Maya Daneva (2004) in ERP Requirements Engineering Practice Lessons Learned
mentioned the fact that organizations implementing Enterprise Resource Planning (ERP)
systems have been increasingly adopting generic off-the-shelf requirements engineering
(RE) process models Yet little information exists about the challenges of making a
generic RE model a life process This article discusses why bringing an off-the-shelf
process in is not a sufficient foundation The author shares experiences acquired over the
past five years of eliciting modeling and validating requirements in ERP projects and
highlights typical issues and their solutions Among the keys to success are planning RE
model use in the clients context and installing processes to support key RE activities [25]
While the article ldquoRescuing Troubled Software Projects by Team Transformation A
Case Study with an ERP Projectrdquo by Kim Man Lui and Keith C C Chan (2008)
differentiates various reasons of ERP project failures It further states that many software
projects fail whether failure is measured in terms of budget schedule or some other
requirement The causes of such failures are many but are not always easily recognized
This is not the least due to the human dimension of corporate activities as spurious or
misdiagnosed issues in Enterprise Resource Planning (ERP) projects can take on a life of
their own and become a magnet for company politics This paper reports an industrial
case in which the senior management attempted to deal with a troubled ERP
implementation (SAP R3) in an international fast moving consumer goods (FMCG)
company during 2001 and 2002 This paper reflects this dimension as it uses original
emails and PowerPoint slides to recount a number of representative episodes in a troubled
but ultimately successful project At the heart of this success is the realization that
33
whereas it can be difficult and time-consuming to do root-cause analyses it is relatively
simple to identify problem owners In this case the senior management without IT
backgrounds turned around a failing project by reorganizing the team structure according
to process areas so that issues in each process area had one problem owner We
summarize the managementrsquos actions into a troubleshooting framework and in addition
suggest three actions for rescuing troubled projects keep the project manager but narrow
down the managerrsquos scope of responsibility to one or two process areas assign the right
people to be responsible for other process areas and have the General Manager chair the
ERP meetings [60]
In the PICMET 2006 Proceedings on ldquoOptimizing the Change Management of Enterprise
Resource Planning Systems Implementationsrdquo Onur Kerimoglu and Nuri BaUogluI
(2006) maintain that although Enterprise Resource Planning (ERP) systems are being
used widely all around the world they also carry out many problems as well as their
benefits These systems are well known for enhancing cross functional efficiency and
effectiveness through the integration of all information flowing throughout an
organization However during different project life cycle stages of ERP systems this
integration may not be provided because of the formulation of incompatibilities which
are greater than the optimum level among different parties like ERP system processes of
the organization and system users Within this study existing incompatibilities between
these parties are modeled respectively In common the model propose that the ERP
product mostly matching with the processes of the organization should be selected
processes of the organization should be changed for being compatible with the ERP
system and system users should be educated new qualified people should be hired etc
for making the system and processes more familiar to people Here the point is that all of
these are done for keeping incompatibilities between the ERP system processes and
people at minimum level because this minimalism will avoid optimization and utilization
problems This study not only handles problems of ERP from a newer perspective but
also provides insight to managers about managing the change and utilizing their resources
efficiently for adopting the ERP software across the organization [59]
Capaldo Guido and Rippa Pierluigi (2008) in ldquoA methodological proposal to assess the
feasibility of ERP Systems Implementation Strategiesrdquo stated that Continuous failures in
34
ERP systems implementation project are today the main challenge in the feasibility of
integrated information systems Failure can be determined by different factors both from
technological side and organizational side if not well managed In this paper we propose
a methodological approach based on technochange management in order to assess the
feasibility of ERP implementation strategy and reduce the risk of failure in terms of
project metrics and early operational metrics A case study in a big Italian
Telecommunication Firm will be presented [19]
ldquoCase Study of PLIVA Pharmaceuticals Inc - Aligning ERP System Implementation
with Business Process Changerdquo is very relevant and contemporary paper presented by
Vesna Bosilj Vuksic and Mario Spremic (2004) The main objective of this paper is to
present the impacts of information technology (IT) and enterprise resource planning
(ERP) systems in business process renovation projects A case study of business process
reengineering project and the implementation of the SAP software solution in PLIVA
(PLIVA pharmaceuticals Inc) are presented [116]
In ldquoKey Factors Driving the Success of Technology Adoption Case Examples of ERP
Adoptionrdquo Chonyacha Suebsin and Nathasit Gerdsri (2009) address the issues that
impact technology adoption within an organization Several factors influencing
technology adoption process are identified from the literature review Case examples of
the adoption of a new management technology Enterprise Resource Planning (ERP) are
presented to illustrate the situations of technology adoption in organizations From the
case examples the factors influencing technology adoption in organizations are
consistent with the factors identified from the literatures The further discussion also
reveals the additional determinants including the clarification of project scope individual
commitment and communication which should be taken into consideration when an
organization adopts a new technology [105]
Maya Daneva (2002) in her paper ldquoUsing Maturity Assessments to Understand the ERP
Requirements Engineering Processrdquo mentions that applying standard requirements
engineering (RE) processes is a major trend in todayrsquos Enterprise Resource Planning
(ERP) software engineering It emerged five years ago with the promise to provide a
mechanism helping ERP project organizations deliver their business requirements timely
and within budget This paper looks in depth at a standard ERP RE process and seeks
35
answers to four questions how well it is defined what are the risks associated with its
application in matureimmature organizations what are the essential practices that
contribute to its success and what are the costs of the process and the quality of the
delivered results The main motivation of this paper is to provide some practical advice
for using assessments to increase project teamsrsquo understanding of the ERP RE process
[26]
Fan JC and Kwoting Fang (2006) ldquoERP Implementation and Information Systems
Success A Test of DeLone and McLeans Modelrdquo present their research that develops
and tests a theoretical extension of DeLone and McLeans model of information system
(IS) success which explains personnel belief that contributes to users utilization of ERP
(enterprise resource planning) systems The extended model is tested using the structural
equation model (SEM) a survey of 202 end-users from ten Taiwanese enterprises that
has implemented Data Systems workflow ERP systems is conducted The theoretical
model proposed in this study provides insight into how the concept of useful perception is
incorporated into DeLone and McLean model and plays a critical mediated role to
influence system usage and its associated satisfaction The implications of these findings
for researchers and practitioners are discussed [32]
In the research findings ldquoManaging ERP Implementation Failure A Project Management
Perspectiverdquo Charlie C Chen Chuck C H Law and Samuel C Yang (2008) stated that
Information Technology (IT) projects are susceptible to changes in the business
environment and the increasing velocity of change in global business is challenging the
management of enterprise systems such as enterprise resource planning (ERP) At the
same time system success depends on the rigor of the project management processes
Scope creep poor risk management inadequate allocation of human resources over time
and vendor management are some common problems associated with the implementation
of an enterprise system These issues pose threats to the success of a large-scale software
project such as ERP This research adopts a case study approach to examine how poor
project management can imperil the implementation of an ERP system Having learned
the lessons from the failure of its first ERP implementation the company in this case
reengineered its project management practices to successfully carry out its second ERP
implementation Many critical project management factors contributed to the failure and
36
success of this companyrsquos ERP system This study explores and identifies critical
elements of project management that contributed to the success of the second ERP
implementation For those organizations adopting ERP the findings provide a roadmap
to follow in order to avoid making critical but often underestimated project management
mistakes [21]
Rafa Kouki Robert Pellerin and Diane Poulin (2008) in An Exploratory Study of ERP
Assimilation in Developing Countries The Case of Three Tunisian Companies assessed
that ERP systems could be considered as the most difficult systems to be assimilated
Very little research however has been realised to investigate the determinants of success
of the ERP assimilation process There has been also a dearth in research about ERP
projects in general and ERP post-implementation and assimilation in particular in
developing countries Using a case study methodology grounded in the diffusion of
innovation theory this study tries to understand the factors that could improve or
challenge the ERP systems assimilation process in three Tunisian companies Our
findings highlighted the importance of several factors such as top management support
strategic alignment IT expertise training communication organizational culture and
coercive pressures [62]
Ian Sommerville (2008) Construction by Configuration Challenges for Software
Engineering Research and Practice observed that past ten years have seen a radical shift
in business application software development Rather than developing software from
scratch using a conventional programming language the majority of commercial
software is now developed through reuse ndash the adaptation and configuration of existing
software systems to meet specific organizational requirements The most widespread
form of reuse is through the use of generic systems such as ERP and COTS systems that
are configured to meet specific organizational requirements In this paper he discussed
the implications of software construction by configuration (CbC) for software
engineering Based on his experience with systems for medical records and university
administration he highlighted some of the issues and problems that can arise in
construction by configuration he discussed problems that arise in CbC projects and
identify a number of challenges for research and practice to improve this approach to
software engineering [104]
37
SV Deshmukh and RR Lakhe (2008) in the research paper ldquoSix Sigma ndash An Innovative
Approach for Waste Reduction A Case Study of an Indian SMErdquo present a case study
aimed at reducing waste at an SME engaged in manufacturing of corrugated boxes The
Define Measure Analyze Improve Control strategy of Six Sigma methodology was
followed to identify probable causes for wastages After studying the system and
implementation of six sigma tools an overall 227 waste reduction was achieved
Individually out of a total seven processes 5 showed waste reduction in excess of 40
This reduction was statistically significant at Plt005 The study confirmed successful
implementation of six sigma to minimize waste generation and in terms saving in
manufacturing costs or increasing the bottom line [29]
While in ldquoERP Implementation Critical Success Factors - The Role and Impact of
Business Process Managementrdquo Yasar F Jarrar Abdullah Al-Mudimigh and Mohamed
Zairi (2000) investigate the role and impact of business process management in
successful ERP implementation The paper starts by defining business process
management ERP and the ERP critical success factors The impact of business process
management on successful ERP implementation is then assessed through looking at the
experiences of several organizations The paper concludes by highlighting best practices
for capitalizing on business process management for successful ERP implementation
[52]
M S Camara L Kermad and A El Mhamedi (2006) in the paper ldquoRisk Prediction in
ERP Projects Classification of Reengineered Business Processesrdquo maintain that
Companies have been implementing ERPs for almost ten years now and more the same
implementation problems continue to occur More and more ERP projectrsquos technological
challenges are accompanied by critical dimensions related to the management of the
transformational effects of these projects on the organization Indeed risk management in
this kind of project is not very structured and misses specific methods In this article they
propose a structured methodology for risk management particularly in the BPR (Business
Process Reengineering) sub-project of ERP implementation The final aim of our work is
to decease appreciably resistance to organizational change which poses the greatest
obstacle to business process reengineering efforts They propose to adapt OSR (Optimal
Set Reduction) a risk management method used in software development for the risk
38
management in ERP implementation They address specially the risk related to the
changes in enterprise processes in the ERP project To achieve this objective they
propose to define business process change metrics starting from business process
complexity metrics that exist in the literature [18]
ldquoExploration and Verification of Factors in the Front-end Stage of the ERP
Implementation Process Evidence from Case Study and Survey Researchrdquo Kun Shi and
Qiang Lu (2009) depict that ERP (Enterprise Resources Planning) is widely used to
improve business performance This paper explores how the factors associated with the
Front-end ERP Implementation Process (FEIP) affect the implementation outcome First
based on literature review a preliminary framework with 12 hypotheses is developed
Then Grounded Theory is applied for a case study to further extract and verify the factors
and sub-factors These factors are finally identified as strategic planning corporate
culture user characteristics organization-process-system maturity external expertise
engagementsupport and project preparation Furthermore the significance and
correlation of all the factors are detected by conducting survey research with SPSS as a
tool for analysis The study shows that the framework is valid and that among six three
factors have strong impact on the ERP implementation result whereas others are less
influential Implication is given and limitation is indicated at the end [63]
Huo Lingyu Liu Bingwu and Li Juntao (2009) in the paper ldquoAn ERP System Selection
Model Based on Fuzzy Grey TOPSIS for SMEsrdquo present a new fuzzy multi-criteria
decision making (FMCDM) approach which integrates the technique for order preference
by the similarity to ideal solution (TOPSIS) grey relation and fuzzy set theory for
enterprise resource planning (ERP) system evaluation and selection in the Small and
Medium-Sized Enterprises (SMEs) In this study the characteristic of the alternative with
respect to the criteria are represented in terms of a linguistic term set and the weight of
the criteria is described by triangular fuzzy numbers respectively According to the grey
theory and fuzzy set theory a closeness coefficient is defined to determine the ranking
order of all alternatives by calculating the grade of grey relation to the fuzzy positive-
ideal solution (FPIS) and fuzzy negative-ideal solution (FNIS) simultaneously Finally
an example is shown to highlight the procedure of the proposed method [48]
39
Gao Juntao Zhang Li Wang Zhiyao (2008) summarized their findings in ldquoDecision
Support for Handling Gaps between ERP functionalities and Organizational Needs A
Goal Reasoning based approachrdquo They found that in the process of selecting
commercial off-the-shelf (COTS) ERP systems it is inevitable to encounter gaps between
ERP software and organizational needs Gaps occur when COTS attributes do not exactly
match organizational needs and they make organizational users and software vendors in
the dilemma whether to adapt as-is business processes or to customize software
packages A decision support method for handling gaps is proposed in this paper Firstly
organizational goal-process models are built as the base for decision making Secondly
the idea of evidence theory is introduced into goal reasoning and a quantified algorithm is
proposed to evaluate the impacts of different business processes on high level goals
which are critical to make decision At last the risk is discussed to rank intervals which
specify the expected utilization of business processes [56]
Yvonne Dittrich and Sebastien Vaucouleur (2009) conducted a research on the topicrdquo
ERP Customization as Software Engineering Knowledge Sharing and Cooperationrdquo and
argue that Enterprise resource planning (ERP) systems must be configured and
customized to fit a specific company The authors discuss cooperation with regard to ERP
systems customization Enterprise resource planning (ERP) vendors provide multiple
configuration possibilities ranging from module selection to master data provision to
steer access rights for different users These configuration possibilities cover anticipated
variability If the customer requires adaptation beyond whatrsquos anticipated the source
code of the product must be adapted Customizations in this articlersquos context are source-
code-based adaptations of software products The size and complexity of customizations
range from simple report generation to developing independent add-ons that support
specific businessesmdashfor example solutions for flight carriers The size and lead time of
such projects can compare to a full-size software development project They present
empirical research on customization practices of ERP systems as an example of software
development based on customization of standard software They compared customization
with other development practices that are based on integrating existing code and results
underlined the need to rethink software engineering and programming methods and tools
[129]
40
In the paper study ldquoSignificance of Software Metrics in ERP Projectsrdquo S Parthasarathy
and N Anbazhagan (2006) narrate that ERP projects are a subclass of software projects
often accompanied by large-scale organizational changes One of the major reasons found
in the literature for the failure of ERP projects is the poor management of software
processes In this paper we propose a Software Metrics Plan (SNP) containing different
software metrics to manage software processes during ERP implementation Two
hypotheses have been formulated and tested using statistical techniques to validate the
SNP The statistical analysis of the collected data from an ERP project supports the two
hypotheses leading to the conclusion that the software metrics are momentous in ERP
projects [84]
Antony Marsh (2000) in the article ldquoThe implementation of Enterprise Resource Planning
systems in small and medium Manufacturing enterprises in south-east Queensland a case
study approachrdquo examines the implementation of ERP systems in smallmedium-sized
enterprises in South East Queensland Australia Nine case studies were conducted to
determine factors for success or failure in the implementations Key success factors
identified included cross-functional team approaches organizational experience of
similar scale IT or organizational change projects and lsquodeeprsquo understanding of the key
issues relating to ERP implementations Failure factors identified included top-down or
consultant driven implementations IT department driven implementations or
implementations where the EFV is seen as a quick technological fix to problems within
the operation of the firm rather than as a strategic investment [78]
Christian Doumlrner Sebastian Draxler Volkmar Pipek and Volker Wulf (2009) through
their study ldquoEnd Users at the Bazaar Designing Next-Generation Enterprise Resource
Planning Systemsrdquo propose that the bazaar metaphor has developed a lasting
popularity in software engineering especially as software architectures have evolved
from monoliths to service orientation Nevertheless the metaphor is limited because it
doesnt consider end users those who develop software for themselves Introducing such
an end user the prosumer to the bazaar not only suggests a changing division of work
in software development but also calls for different functionality and architectural
choices The authors evaluated changing software architectures from an end-user
development (EUD) perspective taking the case of enterprise resource planning (ERP)
41
systems as traditionally monolithically designed systems moving toward service
orientation On the basis of the studys findings which indicated problems with the
systems technical flexibility the authors developed a tool set for fostering EUD
activities Their new architecture for ERP systems enables end users to create their own
solutions [31]
Kenny KF Lee (2000) in ldquoThe Five Disciplines of ERP Software Implementationrdquo has
identified the critical factors in businesses which learn grow and succeed This paper
applies the central concepts of the book its five disciplines to the software business
specifically the management of software implementation Using the learning challenge
posed by the organization-wide implementation of Enterprise Resource Systems (Em) the
paper covers how EM software project leaders may manage themselves their teams
business vision and corporate culture and team members to create a survival machine
which can thrive in the current economic and technological climate [67]
Piet MA Ribbers amp Schoo (2000) in his paper ldquoDesigning Complex Software
Implementation Programsrdquo raises a central question that how one can design of Program
Management contributes to the success of complex software implementations
Incomplete goal specifications lack of communication and underestimation of project
complexity are signs of insufficient program and project management To avoid these
pitfalls he proposes ways that have worked well in recent complex multi-project ERP
implementations (programs) Answering the above question raises the problem of
adequately defining and measuring the level of complexity of an implementation
program A conceptual model was developed which identifies program management
factors that are proposed to have an impact on implementation success Fifteen cases
were studied to find support for the proposed framework [88]
ldquoDetecting Gaps between ERP Software and Organizational Needs A Semantic
Similarity Based Approachrdquo is very relevant and contemporary paper presented by Gao
Juntao and Zhang Li (2008) It depicts that Gap analysis is one of the most important
phases in implementation of enterprise resource planning (ERP) system In this paper an
approach is proposed to automatically detect gaps between software capacities and
organizational needs based on semantic similarity computation The approach takes two
business process models as input and one specifies software capacities and the other
42
describes organizational needs The output of it is a report of gaps As a matter of fact
the differences between application domain and software discipline make semantic
heterogeneity a key problem in gap detection therefore the technologies of semantic
similarity computing are employed to resolve ambiguity issues caused by the use of
synonyms or homonyms In particular the idea of similarity propagation is introduced to
pick out a mapping between corresponding activities and data and Hungarian algorithm
is employed to reduce its time complexity Then the similarity of whole models is
measured according to the minimal total cost of change operations Finally an
experiment is given to evaluate the method [36]
In the research publication ldquoERP System Adoption - Does the Size Matterrdquo Sanna
Laukkanen Sami Sarpola and Petri Hallikainen (2005) investigate the relationship of
enterprise size to the constraints and objectives of ERP systems adoption The survey
data based on the responses of 44 companies indicates that significant differences exist
between small medium-sized and large enterprises in ERP system adoption Specifically
the findings suggest that small companies experience more knowledge constraints than
their larger counterparts in ERP adoption Further while being the most prevalent
objective for ERP adoption in all the company groups business development through
ERP adoption is considered especially important by the medium-sized and large
enterprises Finally the findings of the study suggest that instead of considering small
and medium-sized enterprises as one homogenous group the differences between these
two groups of companies should be acknowledged in the future research [65]
In their paper ldquoModel Based on CSCWrdquo Wedian Liang XuFen Zhenkun Li Rong Xiao
JunFeng Hu (2005) summarise their finding They feel that Software testing is an
important component of the software engineering and an important link that the software
development quality is guaranteed Using the reasonable model for software testing can
reduce the expenses of testing in the developing activity in the course of testing thus cut
down the cost of software development In this paper we put forward a model for
software testing bused on CSCW technology that run through each stages of software
development cycle If can find the mistake in the software as soon as possible has
shorten the time taken for testing in the course of the development of software testing
43
effectively Finally we applied the model to the testing project which develops ERP
system and then receive the ideal result [118]
In their paper ldquoThe Research and Development of IMIS for Small and Medium-sized
Printing Enterpriserdquo Taolin Ma Xiaoming Chen Yansong Sun Xiurong Li (2009)
analyzed the fact that the basic management thought of inventory management
information system (IMIS) was established by analyzing the inventory management
theory of modern enterprise In this system which using the architecture of CS the stores
were classified by ABC management method the inventory control was completed by
setting up the safety stock and the largest stock the analysis and design of IMIS were
finished This IMIS was developed to meet the practical requirements of small and
medium-sized printing enterprise in our country It can not only be used as the important
measure of the informationized construction for small and medium sized printing
enterprise but also used as a subsystem of enterprise ERP system IMIS could improve
enterprise management level realize rapid transformation of enterprise and finally
enhance the competitiveness of enterprise in market economy [106]
Jiangao Deng and Yijie Bian (2008) in the research paper ldquoConstructing a Risk
Management Mechanism Model of ERP Projectrdquo mention that in the process of
information project implementation of manufacturing enterprises there are many risks to
set up a set of risk management mechanism is guaranteed for them to succeed in ERP
implementation Firstly based on the analysis of ERP project implementation of China
the paper introduced the risk management methodology systems and the relative model
which includes three main steps identifying risk evaluating risk and controlling risk
After that on the aspects of decision implementation and application stages of
manufacturing ERP project life cycle the paper discussed risks of each stage and put
forward a two-dimension matrix risk management strategy Then a mechanism model of
ERP project risk management is constructed which shows that information risk control
strategies of the last two stages not only depend on resources of these stages but also
have a diverse relationship with the last stage Finally according to the successful
implementation of an enterprisersquos ERP project the paper carried out an effective case
application analysis of risk management mechanism model The lack of improvement in
usersrsquo ERP skill levels and the shortage in documenting the rationale for business rules
44
and configuration decisions were among the critical issues of the post-implementation
stage Indeed all of their respondents stressed the importance of refreshing the usersrsquo
knowledge about the system [28]
Saumyendu Ghosh (2003) in ldquoGlobal Implementation of ERP Software ndash Critical Success
Factors on Upgrading Technical Infrastructurerdquo discusses that implementing an
Enterprise Resource planning (ERP) software in a global environment executive
sponsors face two key challenges While business processes are to be re-engineered to
align with the ERP software best practices technical architecture and infrastructure needs
to be in place globally as per specifications of the packaged software In the legacy
environment different countries or different business units use different systems based
on local standards supported by local resources In the new ERP world globally all the
countries must conform to same technical infrastructure Technical managers face
multiple critical issues implementing a global solution Most of the ERP software is
developed in technically advanced countries standards are often too high for under
developed or developing countries In an effort to bring the global organization to a
common platform different countries need different levels of upgrades In this paper the
authors review key technical issues faced is a global upgrade process to support a global
ERP implementation and how to resolve those We conclude although technical
infrastructure and business process reengineering both are equally important and each
implementation is unique but following some simple steps it is easy to prioritize each
ones during different phases of the project Also time lines of two sub-projects must
converge after initial phase and must follow a common plan for the project to be
successful Multiple scenarios are described to facilitate the process He concludes
although technical infrastructure and business process reengineering both are equally
important and each implementation is unique but following some simple steps it is easy
to prioritize each ones during different phases of the project Also time lines of two
subprojects must converge after initial phase and must follow a common plan for the
project to be successful Multiple scenarios are described to facilitate the process [38]
Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008) ldquoDevelopment and
Implementation of ERPCRM System Based on Open Source Software to Small and
Medium-sized Enterprise in Chinardquo analysed the fact that E-commerce and the
45
development of modern enterprise management raise a number of challenges in the
process of informatization of small and medium-sized enterprises (SME) in china To
address this they present an approach in which the informatization is enhanced by using
Open Source Software with customized policies We analyses the main
informationization obstacles of SME in china bring forward that the lack of bankroll
talents cost and management etc are the key problems to informationization of SME
Furthermore they have developed a textile foreign trade ERP CRM system based on
Open Source Software for the local textile distributor of china integrating financial
distribution sales and service processes given the implement method of overall planning
step-by-step implementation key breakthrough and efficiency guiding In the end we
compare the typical Open Source Software and traditional commercial software point
out the advantages of informatization based Open Source Software to SME in china and
the development trend of Open Source Software for enterprise application [132]
ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information Systems ndash a
Multi-disciplinary Method for ERP System Requirements Engineeringrdquo by Inka Vilpola
Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that ERP systems are in
most cases off-the-shelf software packages and large by their size and complex by their
structure Small and medium-sized enterprises (SMEs) require flexibility of the ERP
system because of their individual operational processes Therefore it is crucial to select
and implement an ERP system that fits the requirements of the intended target processes
To support the requirements engineering of ERP systems we have developed Customer-
Centered ERP Implementation (C-CEI) method The method introduces a multi-
disciplinary approach to the ERP project and provides in-depth understanding of the
companylsquos processes and context of use Using C-CEI method decreases the risk of
SMEs to select an inappropriate system and improves the system acceptance by the
customer companyrsquos employees In this paper we present the method and illustrate it by
three SME case studies [114]
Saumyendu Ghosh (2000) in ldquoChallenges on a global implementation of ERP softwarerdquo
discusses that some of the unique challenges in ERP implementation are satisfying
multiple countries statutory requirements and reporting to the corporate head quarters
from one installation of the software conflicting interests between different business
46
entities lack of experienced implementators in all the countries and eminent users of
multinational advantages He discusses different aspects of these challenges in detail and
point out that ERP software can provide only one solution for a particular business
process unless workarounds are available from experienced implementation Different
counties adopt different reporting and accounting practices and therefore an ERP
implementation cannot solve all problems that global corporation may have multiple
countries in the scope of the project due to absence of standard global processes across
the organization He concludes that the most important critical success factor of these
international implementations are how quickly these corporations can reengineer existing
business process to adopt best practices of using an ERP system [38]
Dong Cheng Feiyan Deng Hongtao Li (2006) ldquoCritical Factors for Successful
Implementation of ERP in Chinardquo in their study propound a theoretical model for
successful implementation of Enterprise Resource Planning (ERP) under Chinarsquos
environment and the authors analyze the model empirically through structural equation
modeling The authors find that strategically IT planning abilities leadershiprsquos support
and the skills of IT section business processing abilities learning abilities and change
management abilities has a significant positive impact on successful ERP implementation
[22]
Parijat Upadhyay (2008) in his research studies ldquoAn explorative study to identify the
Critical Success Factors for ERP Implementation in Indian small and medium scale
enterprisesrdquo explores the existing literature on ERP implementation issues in context to
small and medium scale enterprises and attempts a compilation of the factors that assume
great significance while implementing ERP in SMErsquos Given the nature and magnitude of
the problems in encountered in implementing an ERP project this study would attempt to
identify the critical success factors(CSFrsquos) for a successful implementation of an ERP
project since it calls for substantial effort on the part of all the stake holders involved to
make the implementation a success [111]
ldquoThe ERP Implementation of SME in Chinardquo Yuanqiang Xia Peter Lok and Song Yang
(2009) presented the fact that ERP implementing for small and middle size enterprise
(SME) is different from the large one Based on the analysis on the character of ERP
marketing and SMEs of China 6 critical success factors are recommended The research
47
suggests that the top management support is most important to ERP implement in SME
of China in which paternalism prevails Database of management and capital are main
obstacles ERP 1 or ERP 2 fits to demand of SME high power project team has
tremendous significance in the situation of absence of IT engineer for SME education
and training is helpful to successfully ERP implementing The results service as better
understanding the ERP implementation of SME in China and gaining the good
performance of ERP implementation [126]
Yan Xu and Chung-Hsing Yeh (2009) in the article ldquoStrategic Management of
Performance Measures for an ERP Implementation Project Teamrdquo present a new
evaluation model for managing performance measures of an enterprise resource planning
(ERP) implementation project team in an organization With the performance measures
classified into four strategic perspectives of the balanced scorecard the evaluation model
enables the goal alignment between the project team and the organization A new
algorithm using the concept of multi-attribute decision making is developed to obtain the
relative importance value for each performance measure for its contribution to the
strategic goals of the organization The higher the importance values of a performance
measure the more important the role it plays in determining the responsibilities of the
corresponding project team player Understanding the importance of the key performance
measures will help an organization well-prepare to launch a project and have the project
being organized in advance A case of an ERP implementation project in an integrated
manufacturing corporation is presented to demonstrate the applicability of the evaluation
model and its effective management of the performance measures [124]
Zhang Yanhong (2009) in his research paper ldquoERP Implementation Process Analysis
Based on the Key Success Factorsrdquo describes that Enterprise Resource Planning (ERP) is
an amalgamation of a companys information systems designed to bind more closely a
variety of company functions including human resources inventories and financials
while simultaneously linking the company to customers and vendors This thesis is based
on the theory of product life cycle and the process of ERP is divided into four phase
planning implementation stabilization and improvement Critical success factors in each
phase are identified by paper research case study and investigation An ERP
implementation process model based on the critical Success factors (CSFs) is proposed in
48
the paper The thesis analyzes the global planning stages and business process rebuilding
in the process of QIHE pharmaceuticals ERP Improvement on management and
financing before and after ERP implementation are contrasted and we come to the
following conclusions (1) The CSFs in the planning phase is comprehensive
investigation and evaluation (2) The CSFs in the implementation phase is effective
project management team (3) The CSFs in the stabilization phase is appropriate
information management system (4) The CSFs in the improvement phase is change on
demand and continue to innovate (5) The CSFs throughout the product life cycle is
business process rebuilding [131]
Van Stijn E and Wensley A (2001) ldquoOrganizational memory and the completeness of
process modeling in ERP systems some concerns methods and directions for future
researchrdquo mentioned that Enterprise resource planning (ERP) systems not only have a
broad functional scope promising to support many different business processes they also
embed many different aspects of the companyrsquos organizational memory Disparities can
exist between those memory contents in the ERP system and related contents in other
memory media such as individualsrsquo memories and the organizational structure and
culture It is our contention that in general these disparities or memory mismatches as
we will refer to them lead to under-performance of ERP systems In this paper they focus
on potential memory mismatches that may arise with respect to the embedding of process
knowledge within ERP packages Packages such as SAP provide a varied and rich
environment for process modeling However they suspect that there are still many
instances where process knowledge is either lost or represented in different ways in
different parts of the organization The overall thrust of the paper is to identify a variety
of concerns intriguing questions and avenues for future research [112]
Eric Kimberling (2008) in his article ldquo The Role of Lean Six Sigma in ERPrdquo insisted
that there are a number of things to consider when considering a new ERP system like six
sigma lean manufacturing or other business transformation projects that has the capacity
to measure reducing waste managing change well continuous improvement etc [133]
William H Gaw (2010) ldquoEight Basics of Lean Six Sigma for Manufacturing Firmsrdquo In
the efforts to draw closer to customers many manufacturers have lost focus on what
should be a companyrsquos primary success factor ndash profitable growth In todayrsquos competitive
49
manufacturing environment it takes more than quick fixes outsourcing and downsizing
for companies to consistently achieve their growth and profit objectives While these
options may yield temporary financial relief they will not lead the way to long-term
growth and profitability For companies to grow and consistently exceed bottom line
expectations they need to get lean And to get lean they should master eight basics of
Lean Six Sigma in the form of information integrity performance measurement
sequential production point-of-use logistic cycle time management production linearity
and resource planning and customer satisfaction [134]
Brehm L and Markus M L (2000) in The Divided Software Life Cycle of ERP
Packages mentioned that traditional information system life cycle (SLC) focuses on the
activities performed by company developing implementing and maintaining software for
its own internal use Enterprise resource planning (ERP) software packages change the
SLC in several important ways This paper presents an extension of the SLC model for
ERP packages The lsquodivided software life cyclersquo (DSLC) model features an equal
emphasis on the activities performed by the ERP adopting company and the ERP vendor
[15]
Alavi M and Carlson P (1992) A Review of MIS research and disciplinary
development The perceived status of journals in which MIS research is published is an
important issue to academics The number of IS-related journals has increased through
the years yet it is not obvious which are the ldquoleadingrdquo journals or what criteria should be
used to determine this This article addresses these issues by (1) evaluating and
analyzing previous studies in which MIS related journals have been ranked (2)
determining top-ranked journals and placing them into two levels or tiers based on
previous studies and (3) establishing a profile through a systematic analysis of the nine
journals in the first tier This study identified 17 highly ranked journals for publication
Nine were placed in the first tier and eight in the second tier In addition to IS-specific
journals publications included management science computer science and business-
oriented journals The individual strategies for improving software productivity are
identified Issues related to software costs and controlling them are examined and
discussed It is pointed out that a good framework of techniques exists for controlling
software budgets schedules and work completed but that a great deal of further progress
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 18
29
address the cultural differences affecting ERP implementations Strategies need to
overcome problems relating to language reporting formats and content cost control
capabilities frequent business process redesigns effective customer support and capable
consulting partners [69]
In the research findings ldquoAn Agency Theory Model of ERP Implementationrdquo Vedabrata
Basu Albert L Lederer (2004) develop a model of testable propositions for applying
agency theory to study the relationship between implementation consultants and client
organizations deploying the ERP systems and to consequently evaluate how the
relationship affects the implementation success Therefore management needs to know
the factors that drive successful ERP implementation a product of the continuous
interaction between the implementation consultants and client firms Agency theory has
been successfully used by different researchers to explain relationships between two
parties seeking a common outcome This paper develops a conceptual model with the
variables and relationships that may play a critical role in explaining the sources of that
frustration It offers a foundation for research that can extend the applicability of agency
theory can help clients and consultants manage their relationships during the
implementation process and thus help them enhance the probability of ERP systems
implementation success It may also be useful for managing other outsourced IS projects
that have implementation settings similar to ERP [10]
Christian Vogt (2002) ldquoIntractable ERP A Comprehensive Analysis of Failed Enterprise-
Resource ndash Planning Projectsrdquo makes an analysis of possible causes that led to the
disasters for ERP implementation failures and suggests software engineering processes
that help avoiding such outcomes The Model Based Architecting and Software
Engineering (MBASE) guidelines developed by Prof Barry Boehm and Daniel Port at
the Center for Software Engineering (CSE) at USC provide a base for these elaborations
for a long time SW Engineering experts have praised commercial-off-the-shelf (COTS)
packages as the panacea to complex software development Far from it the elaboration
in this survey shows that the deployment of COTS packages may be extremely intrinsic
one does not know whether some COTS software adheres to its interface specifications or
how deficient it is or how well its performance scales up as workload demand grows
The upshot is that COTS software will always be an alien element in the software to be
30
developed and it should be considered that way Dye-in-thendashwool COTS package ERP
systems exhibit plenty of dangers Only if appropriate risk management and enough time
for stepwise employment is provided for ERP system can be tamed [115]
In the research findings ldquoImplementing Best Practices in ERP for Small amp Medium
Enterprisesrdquo Rashmi Jha A K Saini and M N Hoda (2008) provides an interesting
insight into taking ERP implementation as a project and develops problem driven
approach to examine its complex phenomena The implementation process will be
divided into several components which will reflect the nature of ERP projects and makes
them distinctive from other systems design methods This paper also addresses critical
issues relating to developing entrepreneurship for sustainable development of small and
medium size enterprises(SMEs) for its future extensions and added benefits It may also
be useful for managing other outsourced Information System (IS) projects that have
implementation settings similar to ERP [53]
Saumyendu and Maya Daneva (2003) in ldquoLessons Learnt from Five Years of Experience
in ERP Requirements Engineeringrdquo summarizes one companyrsquos five years of experience
in making a generic ERP RE model a live process It rests on previously published ERP
RE process assessment results and reports on what we learnt with particular focus on
typical issues organizations face when adopting a standard model and solutions that can
be used to avoid those issues in the future Each of our lessons is described together with
a RE practice technical foundation for the practice and engineering techniques for the RE
practitioner The lessons were used to refine our Corporate Documentation Model a
process-focused and template-based ERP-architecture framework [40]
In ldquoResearch on Agent-Based Architecture of ERP For Small amp Medium-Size
Enterpriserdquo Rui-Xue Fu Zhan-Hong Xin and Can Chen (2007) suggests that with the
rapid development of information technology and the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward To address these problems a MAERP system architecture has been developed
in which the agents are classified into four types F-Agent for realizing an operation
application C-Agent for coordinating with other agents I-Agent for a communication
31
tool between the user and the MAERP system and T-Agent for performing specific tasks
and data collecting [35]
Xavier Franch and Juan Pablo Carvallo (2003) in the research paper Using Quality
Models in Software Package Selection found that the absence of structured descriptions
of quality features and user quality requirements makes selecting the right software
package difficult The authors propose a methodology for describing the quality features
of domain-specific software packages uniformly and comprehensively using ISOIEC
9126-1 quality standards as a framework [34]
In the paper study ldquoRevisiting ERP Systems Benefit Realizationrdquo Paul Hawking and
Andrew Stein (2004) maintains that many companies initially implemented their ERP
systems to solve Y2K and disparate systems issues These same companies are now
looking at a how to strategically leverages their investment in these systems through the
implementation ldquosecond waverdquo functionality This paper identifies the expected and
actual benefits of ldquosecond waverdquo implementations In addition it identifies barriers which
limit the benefit realization The findings reinforce that ERP implementations are people
focused projects which rely heavily on change management for success [45]
Hamid Nach and Albert Lejeune (2008) ldquoImplementing ERP in SMEs Towards an
Ontology Supporting Managerial Decisionsrdquo state that the purpose of this research
project is to consolidate and formalize as ontology on the basis of an extensive literature
review the key processes and skills required for successful implementation of ERP in an
SME Using the Proteacutegeacute software program the research identified and formalized 395
terms each of which has its own definition Exploitation of this ontology could take
multiple and varied forms including creation of a learning system an on-line cooperation
platform or a project management process mapping tool contributing to successful use of
ERP in SMEs [81]
While Gul Tekin Temur and Sitki Gozlu (2008) ldquoDetermination of Performance Criteria
for ERP Software Technologyrdquo mention that the main goal is to determine the
performance criteria for ERP software technology with respect to their sources Today
the companies are in interaction with many internal and external partners and have to face
many situations in various environments Especially many small and medium sized firms
utilize ERP software technology to plan their business interactions in the chain In this
32
study firstly a literature search is accomplished Then in order to reveal the performance
criteria a large-scale automotive company has been selected to conduct interviews with
managers Also the meeting reports of a few small and medium-sized companies have
been analyzed As a result of the analysis on findings the common views of the firms
about performance criteria are classified into four groups according to their sources such
as people technical managerial and economical The sub factors of these main criteria
are also taken into account in order to point out the origins of the criteria The results of
the study will provide insight to researchers and as well as to professionals in the practice
[108]
Maya Daneva (2004) in ERP Requirements Engineering Practice Lessons Learned
mentioned the fact that organizations implementing Enterprise Resource Planning (ERP)
systems have been increasingly adopting generic off-the-shelf requirements engineering
(RE) process models Yet little information exists about the challenges of making a
generic RE model a life process This article discusses why bringing an off-the-shelf
process in is not a sufficient foundation The author shares experiences acquired over the
past five years of eliciting modeling and validating requirements in ERP projects and
highlights typical issues and their solutions Among the keys to success are planning RE
model use in the clients context and installing processes to support key RE activities [25]
While the article ldquoRescuing Troubled Software Projects by Team Transformation A
Case Study with an ERP Projectrdquo by Kim Man Lui and Keith C C Chan (2008)
differentiates various reasons of ERP project failures It further states that many software
projects fail whether failure is measured in terms of budget schedule or some other
requirement The causes of such failures are many but are not always easily recognized
This is not the least due to the human dimension of corporate activities as spurious or
misdiagnosed issues in Enterprise Resource Planning (ERP) projects can take on a life of
their own and become a magnet for company politics This paper reports an industrial
case in which the senior management attempted to deal with a troubled ERP
implementation (SAP R3) in an international fast moving consumer goods (FMCG)
company during 2001 and 2002 This paper reflects this dimension as it uses original
emails and PowerPoint slides to recount a number of representative episodes in a troubled
but ultimately successful project At the heart of this success is the realization that
33
whereas it can be difficult and time-consuming to do root-cause analyses it is relatively
simple to identify problem owners In this case the senior management without IT
backgrounds turned around a failing project by reorganizing the team structure according
to process areas so that issues in each process area had one problem owner We
summarize the managementrsquos actions into a troubleshooting framework and in addition
suggest three actions for rescuing troubled projects keep the project manager but narrow
down the managerrsquos scope of responsibility to one or two process areas assign the right
people to be responsible for other process areas and have the General Manager chair the
ERP meetings [60]
In the PICMET 2006 Proceedings on ldquoOptimizing the Change Management of Enterprise
Resource Planning Systems Implementationsrdquo Onur Kerimoglu and Nuri BaUogluI
(2006) maintain that although Enterprise Resource Planning (ERP) systems are being
used widely all around the world they also carry out many problems as well as their
benefits These systems are well known for enhancing cross functional efficiency and
effectiveness through the integration of all information flowing throughout an
organization However during different project life cycle stages of ERP systems this
integration may not be provided because of the formulation of incompatibilities which
are greater than the optimum level among different parties like ERP system processes of
the organization and system users Within this study existing incompatibilities between
these parties are modeled respectively In common the model propose that the ERP
product mostly matching with the processes of the organization should be selected
processes of the organization should be changed for being compatible with the ERP
system and system users should be educated new qualified people should be hired etc
for making the system and processes more familiar to people Here the point is that all of
these are done for keeping incompatibilities between the ERP system processes and
people at minimum level because this minimalism will avoid optimization and utilization
problems This study not only handles problems of ERP from a newer perspective but
also provides insight to managers about managing the change and utilizing their resources
efficiently for adopting the ERP software across the organization [59]
Capaldo Guido and Rippa Pierluigi (2008) in ldquoA methodological proposal to assess the
feasibility of ERP Systems Implementation Strategiesrdquo stated that Continuous failures in
34
ERP systems implementation project are today the main challenge in the feasibility of
integrated information systems Failure can be determined by different factors both from
technological side and organizational side if not well managed In this paper we propose
a methodological approach based on technochange management in order to assess the
feasibility of ERP implementation strategy and reduce the risk of failure in terms of
project metrics and early operational metrics A case study in a big Italian
Telecommunication Firm will be presented [19]
ldquoCase Study of PLIVA Pharmaceuticals Inc - Aligning ERP System Implementation
with Business Process Changerdquo is very relevant and contemporary paper presented by
Vesna Bosilj Vuksic and Mario Spremic (2004) The main objective of this paper is to
present the impacts of information technology (IT) and enterprise resource planning
(ERP) systems in business process renovation projects A case study of business process
reengineering project and the implementation of the SAP software solution in PLIVA
(PLIVA pharmaceuticals Inc) are presented [116]
In ldquoKey Factors Driving the Success of Technology Adoption Case Examples of ERP
Adoptionrdquo Chonyacha Suebsin and Nathasit Gerdsri (2009) address the issues that
impact technology adoption within an organization Several factors influencing
technology adoption process are identified from the literature review Case examples of
the adoption of a new management technology Enterprise Resource Planning (ERP) are
presented to illustrate the situations of technology adoption in organizations From the
case examples the factors influencing technology adoption in organizations are
consistent with the factors identified from the literatures The further discussion also
reveals the additional determinants including the clarification of project scope individual
commitment and communication which should be taken into consideration when an
organization adopts a new technology [105]
Maya Daneva (2002) in her paper ldquoUsing Maturity Assessments to Understand the ERP
Requirements Engineering Processrdquo mentions that applying standard requirements
engineering (RE) processes is a major trend in todayrsquos Enterprise Resource Planning
(ERP) software engineering It emerged five years ago with the promise to provide a
mechanism helping ERP project organizations deliver their business requirements timely
and within budget This paper looks in depth at a standard ERP RE process and seeks
35
answers to four questions how well it is defined what are the risks associated with its
application in matureimmature organizations what are the essential practices that
contribute to its success and what are the costs of the process and the quality of the
delivered results The main motivation of this paper is to provide some practical advice
for using assessments to increase project teamsrsquo understanding of the ERP RE process
[26]
Fan JC and Kwoting Fang (2006) ldquoERP Implementation and Information Systems
Success A Test of DeLone and McLeans Modelrdquo present their research that develops
and tests a theoretical extension of DeLone and McLeans model of information system
(IS) success which explains personnel belief that contributes to users utilization of ERP
(enterprise resource planning) systems The extended model is tested using the structural
equation model (SEM) a survey of 202 end-users from ten Taiwanese enterprises that
has implemented Data Systems workflow ERP systems is conducted The theoretical
model proposed in this study provides insight into how the concept of useful perception is
incorporated into DeLone and McLean model and plays a critical mediated role to
influence system usage and its associated satisfaction The implications of these findings
for researchers and practitioners are discussed [32]
In the research findings ldquoManaging ERP Implementation Failure A Project Management
Perspectiverdquo Charlie C Chen Chuck C H Law and Samuel C Yang (2008) stated that
Information Technology (IT) projects are susceptible to changes in the business
environment and the increasing velocity of change in global business is challenging the
management of enterprise systems such as enterprise resource planning (ERP) At the
same time system success depends on the rigor of the project management processes
Scope creep poor risk management inadequate allocation of human resources over time
and vendor management are some common problems associated with the implementation
of an enterprise system These issues pose threats to the success of a large-scale software
project such as ERP This research adopts a case study approach to examine how poor
project management can imperil the implementation of an ERP system Having learned
the lessons from the failure of its first ERP implementation the company in this case
reengineered its project management practices to successfully carry out its second ERP
implementation Many critical project management factors contributed to the failure and
36
success of this companyrsquos ERP system This study explores and identifies critical
elements of project management that contributed to the success of the second ERP
implementation For those organizations adopting ERP the findings provide a roadmap
to follow in order to avoid making critical but often underestimated project management
mistakes [21]
Rafa Kouki Robert Pellerin and Diane Poulin (2008) in An Exploratory Study of ERP
Assimilation in Developing Countries The Case of Three Tunisian Companies assessed
that ERP systems could be considered as the most difficult systems to be assimilated
Very little research however has been realised to investigate the determinants of success
of the ERP assimilation process There has been also a dearth in research about ERP
projects in general and ERP post-implementation and assimilation in particular in
developing countries Using a case study methodology grounded in the diffusion of
innovation theory this study tries to understand the factors that could improve or
challenge the ERP systems assimilation process in three Tunisian companies Our
findings highlighted the importance of several factors such as top management support
strategic alignment IT expertise training communication organizational culture and
coercive pressures [62]
Ian Sommerville (2008) Construction by Configuration Challenges for Software
Engineering Research and Practice observed that past ten years have seen a radical shift
in business application software development Rather than developing software from
scratch using a conventional programming language the majority of commercial
software is now developed through reuse ndash the adaptation and configuration of existing
software systems to meet specific organizational requirements The most widespread
form of reuse is through the use of generic systems such as ERP and COTS systems that
are configured to meet specific organizational requirements In this paper he discussed
the implications of software construction by configuration (CbC) for software
engineering Based on his experience with systems for medical records and university
administration he highlighted some of the issues and problems that can arise in
construction by configuration he discussed problems that arise in CbC projects and
identify a number of challenges for research and practice to improve this approach to
software engineering [104]
37
SV Deshmukh and RR Lakhe (2008) in the research paper ldquoSix Sigma ndash An Innovative
Approach for Waste Reduction A Case Study of an Indian SMErdquo present a case study
aimed at reducing waste at an SME engaged in manufacturing of corrugated boxes The
Define Measure Analyze Improve Control strategy of Six Sigma methodology was
followed to identify probable causes for wastages After studying the system and
implementation of six sigma tools an overall 227 waste reduction was achieved
Individually out of a total seven processes 5 showed waste reduction in excess of 40
This reduction was statistically significant at Plt005 The study confirmed successful
implementation of six sigma to minimize waste generation and in terms saving in
manufacturing costs or increasing the bottom line [29]
While in ldquoERP Implementation Critical Success Factors - The Role and Impact of
Business Process Managementrdquo Yasar F Jarrar Abdullah Al-Mudimigh and Mohamed
Zairi (2000) investigate the role and impact of business process management in
successful ERP implementation The paper starts by defining business process
management ERP and the ERP critical success factors The impact of business process
management on successful ERP implementation is then assessed through looking at the
experiences of several organizations The paper concludes by highlighting best practices
for capitalizing on business process management for successful ERP implementation
[52]
M S Camara L Kermad and A El Mhamedi (2006) in the paper ldquoRisk Prediction in
ERP Projects Classification of Reengineered Business Processesrdquo maintain that
Companies have been implementing ERPs for almost ten years now and more the same
implementation problems continue to occur More and more ERP projectrsquos technological
challenges are accompanied by critical dimensions related to the management of the
transformational effects of these projects on the organization Indeed risk management in
this kind of project is not very structured and misses specific methods In this article they
propose a structured methodology for risk management particularly in the BPR (Business
Process Reengineering) sub-project of ERP implementation The final aim of our work is
to decease appreciably resistance to organizational change which poses the greatest
obstacle to business process reengineering efforts They propose to adapt OSR (Optimal
Set Reduction) a risk management method used in software development for the risk
38
management in ERP implementation They address specially the risk related to the
changes in enterprise processes in the ERP project To achieve this objective they
propose to define business process change metrics starting from business process
complexity metrics that exist in the literature [18]
ldquoExploration and Verification of Factors in the Front-end Stage of the ERP
Implementation Process Evidence from Case Study and Survey Researchrdquo Kun Shi and
Qiang Lu (2009) depict that ERP (Enterprise Resources Planning) is widely used to
improve business performance This paper explores how the factors associated with the
Front-end ERP Implementation Process (FEIP) affect the implementation outcome First
based on literature review a preliminary framework with 12 hypotheses is developed
Then Grounded Theory is applied for a case study to further extract and verify the factors
and sub-factors These factors are finally identified as strategic planning corporate
culture user characteristics organization-process-system maturity external expertise
engagementsupport and project preparation Furthermore the significance and
correlation of all the factors are detected by conducting survey research with SPSS as a
tool for analysis The study shows that the framework is valid and that among six three
factors have strong impact on the ERP implementation result whereas others are less
influential Implication is given and limitation is indicated at the end [63]
Huo Lingyu Liu Bingwu and Li Juntao (2009) in the paper ldquoAn ERP System Selection
Model Based on Fuzzy Grey TOPSIS for SMEsrdquo present a new fuzzy multi-criteria
decision making (FMCDM) approach which integrates the technique for order preference
by the similarity to ideal solution (TOPSIS) grey relation and fuzzy set theory for
enterprise resource planning (ERP) system evaluation and selection in the Small and
Medium-Sized Enterprises (SMEs) In this study the characteristic of the alternative with
respect to the criteria are represented in terms of a linguistic term set and the weight of
the criteria is described by triangular fuzzy numbers respectively According to the grey
theory and fuzzy set theory a closeness coefficient is defined to determine the ranking
order of all alternatives by calculating the grade of grey relation to the fuzzy positive-
ideal solution (FPIS) and fuzzy negative-ideal solution (FNIS) simultaneously Finally
an example is shown to highlight the procedure of the proposed method [48]
39
Gao Juntao Zhang Li Wang Zhiyao (2008) summarized their findings in ldquoDecision
Support for Handling Gaps between ERP functionalities and Organizational Needs A
Goal Reasoning based approachrdquo They found that in the process of selecting
commercial off-the-shelf (COTS) ERP systems it is inevitable to encounter gaps between
ERP software and organizational needs Gaps occur when COTS attributes do not exactly
match organizational needs and they make organizational users and software vendors in
the dilemma whether to adapt as-is business processes or to customize software
packages A decision support method for handling gaps is proposed in this paper Firstly
organizational goal-process models are built as the base for decision making Secondly
the idea of evidence theory is introduced into goal reasoning and a quantified algorithm is
proposed to evaluate the impacts of different business processes on high level goals
which are critical to make decision At last the risk is discussed to rank intervals which
specify the expected utilization of business processes [56]
Yvonne Dittrich and Sebastien Vaucouleur (2009) conducted a research on the topicrdquo
ERP Customization as Software Engineering Knowledge Sharing and Cooperationrdquo and
argue that Enterprise resource planning (ERP) systems must be configured and
customized to fit a specific company The authors discuss cooperation with regard to ERP
systems customization Enterprise resource planning (ERP) vendors provide multiple
configuration possibilities ranging from module selection to master data provision to
steer access rights for different users These configuration possibilities cover anticipated
variability If the customer requires adaptation beyond whatrsquos anticipated the source
code of the product must be adapted Customizations in this articlersquos context are source-
code-based adaptations of software products The size and complexity of customizations
range from simple report generation to developing independent add-ons that support
specific businessesmdashfor example solutions for flight carriers The size and lead time of
such projects can compare to a full-size software development project They present
empirical research on customization practices of ERP systems as an example of software
development based on customization of standard software They compared customization
with other development practices that are based on integrating existing code and results
underlined the need to rethink software engineering and programming methods and tools
[129]
40
In the paper study ldquoSignificance of Software Metrics in ERP Projectsrdquo S Parthasarathy
and N Anbazhagan (2006) narrate that ERP projects are a subclass of software projects
often accompanied by large-scale organizational changes One of the major reasons found
in the literature for the failure of ERP projects is the poor management of software
processes In this paper we propose a Software Metrics Plan (SNP) containing different
software metrics to manage software processes during ERP implementation Two
hypotheses have been formulated and tested using statistical techniques to validate the
SNP The statistical analysis of the collected data from an ERP project supports the two
hypotheses leading to the conclusion that the software metrics are momentous in ERP
projects [84]
Antony Marsh (2000) in the article ldquoThe implementation of Enterprise Resource Planning
systems in small and medium Manufacturing enterprises in south-east Queensland a case
study approachrdquo examines the implementation of ERP systems in smallmedium-sized
enterprises in South East Queensland Australia Nine case studies were conducted to
determine factors for success or failure in the implementations Key success factors
identified included cross-functional team approaches organizational experience of
similar scale IT or organizational change projects and lsquodeeprsquo understanding of the key
issues relating to ERP implementations Failure factors identified included top-down or
consultant driven implementations IT department driven implementations or
implementations where the EFV is seen as a quick technological fix to problems within
the operation of the firm rather than as a strategic investment [78]
Christian Doumlrner Sebastian Draxler Volkmar Pipek and Volker Wulf (2009) through
their study ldquoEnd Users at the Bazaar Designing Next-Generation Enterprise Resource
Planning Systemsrdquo propose that the bazaar metaphor has developed a lasting
popularity in software engineering especially as software architectures have evolved
from monoliths to service orientation Nevertheless the metaphor is limited because it
doesnt consider end users those who develop software for themselves Introducing such
an end user the prosumer to the bazaar not only suggests a changing division of work
in software development but also calls for different functionality and architectural
choices The authors evaluated changing software architectures from an end-user
development (EUD) perspective taking the case of enterprise resource planning (ERP)
41
systems as traditionally monolithically designed systems moving toward service
orientation On the basis of the studys findings which indicated problems with the
systems technical flexibility the authors developed a tool set for fostering EUD
activities Their new architecture for ERP systems enables end users to create their own
solutions [31]
Kenny KF Lee (2000) in ldquoThe Five Disciplines of ERP Software Implementationrdquo has
identified the critical factors in businesses which learn grow and succeed This paper
applies the central concepts of the book its five disciplines to the software business
specifically the management of software implementation Using the learning challenge
posed by the organization-wide implementation of Enterprise Resource Systems (Em) the
paper covers how EM software project leaders may manage themselves their teams
business vision and corporate culture and team members to create a survival machine
which can thrive in the current economic and technological climate [67]
Piet MA Ribbers amp Schoo (2000) in his paper ldquoDesigning Complex Software
Implementation Programsrdquo raises a central question that how one can design of Program
Management contributes to the success of complex software implementations
Incomplete goal specifications lack of communication and underestimation of project
complexity are signs of insufficient program and project management To avoid these
pitfalls he proposes ways that have worked well in recent complex multi-project ERP
implementations (programs) Answering the above question raises the problem of
adequately defining and measuring the level of complexity of an implementation
program A conceptual model was developed which identifies program management
factors that are proposed to have an impact on implementation success Fifteen cases
were studied to find support for the proposed framework [88]
ldquoDetecting Gaps between ERP Software and Organizational Needs A Semantic
Similarity Based Approachrdquo is very relevant and contemporary paper presented by Gao
Juntao and Zhang Li (2008) It depicts that Gap analysis is one of the most important
phases in implementation of enterprise resource planning (ERP) system In this paper an
approach is proposed to automatically detect gaps between software capacities and
organizational needs based on semantic similarity computation The approach takes two
business process models as input and one specifies software capacities and the other
42
describes organizational needs The output of it is a report of gaps As a matter of fact
the differences between application domain and software discipline make semantic
heterogeneity a key problem in gap detection therefore the technologies of semantic
similarity computing are employed to resolve ambiguity issues caused by the use of
synonyms or homonyms In particular the idea of similarity propagation is introduced to
pick out a mapping between corresponding activities and data and Hungarian algorithm
is employed to reduce its time complexity Then the similarity of whole models is
measured according to the minimal total cost of change operations Finally an
experiment is given to evaluate the method [36]
In the research publication ldquoERP System Adoption - Does the Size Matterrdquo Sanna
Laukkanen Sami Sarpola and Petri Hallikainen (2005) investigate the relationship of
enterprise size to the constraints and objectives of ERP systems adoption The survey
data based on the responses of 44 companies indicates that significant differences exist
between small medium-sized and large enterprises in ERP system adoption Specifically
the findings suggest that small companies experience more knowledge constraints than
their larger counterparts in ERP adoption Further while being the most prevalent
objective for ERP adoption in all the company groups business development through
ERP adoption is considered especially important by the medium-sized and large
enterprises Finally the findings of the study suggest that instead of considering small
and medium-sized enterprises as one homogenous group the differences between these
two groups of companies should be acknowledged in the future research [65]
In their paper ldquoModel Based on CSCWrdquo Wedian Liang XuFen Zhenkun Li Rong Xiao
JunFeng Hu (2005) summarise their finding They feel that Software testing is an
important component of the software engineering and an important link that the software
development quality is guaranteed Using the reasonable model for software testing can
reduce the expenses of testing in the developing activity in the course of testing thus cut
down the cost of software development In this paper we put forward a model for
software testing bused on CSCW technology that run through each stages of software
development cycle If can find the mistake in the software as soon as possible has
shorten the time taken for testing in the course of the development of software testing
43
effectively Finally we applied the model to the testing project which develops ERP
system and then receive the ideal result [118]
In their paper ldquoThe Research and Development of IMIS for Small and Medium-sized
Printing Enterpriserdquo Taolin Ma Xiaoming Chen Yansong Sun Xiurong Li (2009)
analyzed the fact that the basic management thought of inventory management
information system (IMIS) was established by analyzing the inventory management
theory of modern enterprise In this system which using the architecture of CS the stores
were classified by ABC management method the inventory control was completed by
setting up the safety stock and the largest stock the analysis and design of IMIS were
finished This IMIS was developed to meet the practical requirements of small and
medium-sized printing enterprise in our country It can not only be used as the important
measure of the informationized construction for small and medium sized printing
enterprise but also used as a subsystem of enterprise ERP system IMIS could improve
enterprise management level realize rapid transformation of enterprise and finally
enhance the competitiveness of enterprise in market economy [106]
Jiangao Deng and Yijie Bian (2008) in the research paper ldquoConstructing a Risk
Management Mechanism Model of ERP Projectrdquo mention that in the process of
information project implementation of manufacturing enterprises there are many risks to
set up a set of risk management mechanism is guaranteed for them to succeed in ERP
implementation Firstly based on the analysis of ERP project implementation of China
the paper introduced the risk management methodology systems and the relative model
which includes three main steps identifying risk evaluating risk and controlling risk
After that on the aspects of decision implementation and application stages of
manufacturing ERP project life cycle the paper discussed risks of each stage and put
forward a two-dimension matrix risk management strategy Then a mechanism model of
ERP project risk management is constructed which shows that information risk control
strategies of the last two stages not only depend on resources of these stages but also
have a diverse relationship with the last stage Finally according to the successful
implementation of an enterprisersquos ERP project the paper carried out an effective case
application analysis of risk management mechanism model The lack of improvement in
usersrsquo ERP skill levels and the shortage in documenting the rationale for business rules
44
and configuration decisions were among the critical issues of the post-implementation
stage Indeed all of their respondents stressed the importance of refreshing the usersrsquo
knowledge about the system [28]
Saumyendu Ghosh (2003) in ldquoGlobal Implementation of ERP Software ndash Critical Success
Factors on Upgrading Technical Infrastructurerdquo discusses that implementing an
Enterprise Resource planning (ERP) software in a global environment executive
sponsors face two key challenges While business processes are to be re-engineered to
align with the ERP software best practices technical architecture and infrastructure needs
to be in place globally as per specifications of the packaged software In the legacy
environment different countries or different business units use different systems based
on local standards supported by local resources In the new ERP world globally all the
countries must conform to same technical infrastructure Technical managers face
multiple critical issues implementing a global solution Most of the ERP software is
developed in technically advanced countries standards are often too high for under
developed or developing countries In an effort to bring the global organization to a
common platform different countries need different levels of upgrades In this paper the
authors review key technical issues faced is a global upgrade process to support a global
ERP implementation and how to resolve those We conclude although technical
infrastructure and business process reengineering both are equally important and each
implementation is unique but following some simple steps it is easy to prioritize each
ones during different phases of the project Also time lines of two sub-projects must
converge after initial phase and must follow a common plan for the project to be
successful Multiple scenarios are described to facilitate the process He concludes
although technical infrastructure and business process reengineering both are equally
important and each implementation is unique but following some simple steps it is easy
to prioritize each ones during different phases of the project Also time lines of two
subprojects must converge after initial phase and must follow a common plan for the
project to be successful Multiple scenarios are described to facilitate the process [38]
Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008) ldquoDevelopment and
Implementation of ERPCRM System Based on Open Source Software to Small and
Medium-sized Enterprise in Chinardquo analysed the fact that E-commerce and the
45
development of modern enterprise management raise a number of challenges in the
process of informatization of small and medium-sized enterprises (SME) in china To
address this they present an approach in which the informatization is enhanced by using
Open Source Software with customized policies We analyses the main
informationization obstacles of SME in china bring forward that the lack of bankroll
talents cost and management etc are the key problems to informationization of SME
Furthermore they have developed a textile foreign trade ERP CRM system based on
Open Source Software for the local textile distributor of china integrating financial
distribution sales and service processes given the implement method of overall planning
step-by-step implementation key breakthrough and efficiency guiding In the end we
compare the typical Open Source Software and traditional commercial software point
out the advantages of informatization based Open Source Software to SME in china and
the development trend of Open Source Software for enterprise application [132]
ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information Systems ndash a
Multi-disciplinary Method for ERP System Requirements Engineeringrdquo by Inka Vilpola
Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that ERP systems are in
most cases off-the-shelf software packages and large by their size and complex by their
structure Small and medium-sized enterprises (SMEs) require flexibility of the ERP
system because of their individual operational processes Therefore it is crucial to select
and implement an ERP system that fits the requirements of the intended target processes
To support the requirements engineering of ERP systems we have developed Customer-
Centered ERP Implementation (C-CEI) method The method introduces a multi-
disciplinary approach to the ERP project and provides in-depth understanding of the
companylsquos processes and context of use Using C-CEI method decreases the risk of
SMEs to select an inappropriate system and improves the system acceptance by the
customer companyrsquos employees In this paper we present the method and illustrate it by
three SME case studies [114]
Saumyendu Ghosh (2000) in ldquoChallenges on a global implementation of ERP softwarerdquo
discusses that some of the unique challenges in ERP implementation are satisfying
multiple countries statutory requirements and reporting to the corporate head quarters
from one installation of the software conflicting interests between different business
46
entities lack of experienced implementators in all the countries and eminent users of
multinational advantages He discusses different aspects of these challenges in detail and
point out that ERP software can provide only one solution for a particular business
process unless workarounds are available from experienced implementation Different
counties adopt different reporting and accounting practices and therefore an ERP
implementation cannot solve all problems that global corporation may have multiple
countries in the scope of the project due to absence of standard global processes across
the organization He concludes that the most important critical success factor of these
international implementations are how quickly these corporations can reengineer existing
business process to adopt best practices of using an ERP system [38]
Dong Cheng Feiyan Deng Hongtao Li (2006) ldquoCritical Factors for Successful
Implementation of ERP in Chinardquo in their study propound a theoretical model for
successful implementation of Enterprise Resource Planning (ERP) under Chinarsquos
environment and the authors analyze the model empirically through structural equation
modeling The authors find that strategically IT planning abilities leadershiprsquos support
and the skills of IT section business processing abilities learning abilities and change
management abilities has a significant positive impact on successful ERP implementation
[22]
Parijat Upadhyay (2008) in his research studies ldquoAn explorative study to identify the
Critical Success Factors for ERP Implementation in Indian small and medium scale
enterprisesrdquo explores the existing literature on ERP implementation issues in context to
small and medium scale enterprises and attempts a compilation of the factors that assume
great significance while implementing ERP in SMErsquos Given the nature and magnitude of
the problems in encountered in implementing an ERP project this study would attempt to
identify the critical success factors(CSFrsquos) for a successful implementation of an ERP
project since it calls for substantial effort on the part of all the stake holders involved to
make the implementation a success [111]
ldquoThe ERP Implementation of SME in Chinardquo Yuanqiang Xia Peter Lok and Song Yang
(2009) presented the fact that ERP implementing for small and middle size enterprise
(SME) is different from the large one Based on the analysis on the character of ERP
marketing and SMEs of China 6 critical success factors are recommended The research
47
suggests that the top management support is most important to ERP implement in SME
of China in which paternalism prevails Database of management and capital are main
obstacles ERP 1 or ERP 2 fits to demand of SME high power project team has
tremendous significance in the situation of absence of IT engineer for SME education
and training is helpful to successfully ERP implementing The results service as better
understanding the ERP implementation of SME in China and gaining the good
performance of ERP implementation [126]
Yan Xu and Chung-Hsing Yeh (2009) in the article ldquoStrategic Management of
Performance Measures for an ERP Implementation Project Teamrdquo present a new
evaluation model for managing performance measures of an enterprise resource planning
(ERP) implementation project team in an organization With the performance measures
classified into four strategic perspectives of the balanced scorecard the evaluation model
enables the goal alignment between the project team and the organization A new
algorithm using the concept of multi-attribute decision making is developed to obtain the
relative importance value for each performance measure for its contribution to the
strategic goals of the organization The higher the importance values of a performance
measure the more important the role it plays in determining the responsibilities of the
corresponding project team player Understanding the importance of the key performance
measures will help an organization well-prepare to launch a project and have the project
being organized in advance A case of an ERP implementation project in an integrated
manufacturing corporation is presented to demonstrate the applicability of the evaluation
model and its effective management of the performance measures [124]
Zhang Yanhong (2009) in his research paper ldquoERP Implementation Process Analysis
Based on the Key Success Factorsrdquo describes that Enterprise Resource Planning (ERP) is
an amalgamation of a companys information systems designed to bind more closely a
variety of company functions including human resources inventories and financials
while simultaneously linking the company to customers and vendors This thesis is based
on the theory of product life cycle and the process of ERP is divided into four phase
planning implementation stabilization and improvement Critical success factors in each
phase are identified by paper research case study and investigation An ERP
implementation process model based on the critical Success factors (CSFs) is proposed in
48
the paper The thesis analyzes the global planning stages and business process rebuilding
in the process of QIHE pharmaceuticals ERP Improvement on management and
financing before and after ERP implementation are contrasted and we come to the
following conclusions (1) The CSFs in the planning phase is comprehensive
investigation and evaluation (2) The CSFs in the implementation phase is effective
project management team (3) The CSFs in the stabilization phase is appropriate
information management system (4) The CSFs in the improvement phase is change on
demand and continue to innovate (5) The CSFs throughout the product life cycle is
business process rebuilding [131]
Van Stijn E and Wensley A (2001) ldquoOrganizational memory and the completeness of
process modeling in ERP systems some concerns methods and directions for future
researchrdquo mentioned that Enterprise resource planning (ERP) systems not only have a
broad functional scope promising to support many different business processes they also
embed many different aspects of the companyrsquos organizational memory Disparities can
exist between those memory contents in the ERP system and related contents in other
memory media such as individualsrsquo memories and the organizational structure and
culture It is our contention that in general these disparities or memory mismatches as
we will refer to them lead to under-performance of ERP systems In this paper they focus
on potential memory mismatches that may arise with respect to the embedding of process
knowledge within ERP packages Packages such as SAP provide a varied and rich
environment for process modeling However they suspect that there are still many
instances where process knowledge is either lost or represented in different ways in
different parts of the organization The overall thrust of the paper is to identify a variety
of concerns intriguing questions and avenues for future research [112]
Eric Kimberling (2008) in his article ldquo The Role of Lean Six Sigma in ERPrdquo insisted
that there are a number of things to consider when considering a new ERP system like six
sigma lean manufacturing or other business transformation projects that has the capacity
to measure reducing waste managing change well continuous improvement etc [133]
William H Gaw (2010) ldquoEight Basics of Lean Six Sigma for Manufacturing Firmsrdquo In
the efforts to draw closer to customers many manufacturers have lost focus on what
should be a companyrsquos primary success factor ndash profitable growth In todayrsquos competitive
49
manufacturing environment it takes more than quick fixes outsourcing and downsizing
for companies to consistently achieve their growth and profit objectives While these
options may yield temporary financial relief they will not lead the way to long-term
growth and profitability For companies to grow and consistently exceed bottom line
expectations they need to get lean And to get lean they should master eight basics of
Lean Six Sigma in the form of information integrity performance measurement
sequential production point-of-use logistic cycle time management production linearity
and resource planning and customer satisfaction [134]
Brehm L and Markus M L (2000) in The Divided Software Life Cycle of ERP
Packages mentioned that traditional information system life cycle (SLC) focuses on the
activities performed by company developing implementing and maintaining software for
its own internal use Enterprise resource planning (ERP) software packages change the
SLC in several important ways This paper presents an extension of the SLC model for
ERP packages The lsquodivided software life cyclersquo (DSLC) model features an equal
emphasis on the activities performed by the ERP adopting company and the ERP vendor
[15]
Alavi M and Carlson P (1992) A Review of MIS research and disciplinary
development The perceived status of journals in which MIS research is published is an
important issue to academics The number of IS-related journals has increased through
the years yet it is not obvious which are the ldquoleadingrdquo journals or what criteria should be
used to determine this This article addresses these issues by (1) evaluating and
analyzing previous studies in which MIS related journals have been ranked (2)
determining top-ranked journals and placing them into two levels or tiers based on
previous studies and (3) establishing a profile through a systematic analysis of the nine
journals in the first tier This study identified 17 highly ranked journals for publication
Nine were placed in the first tier and eight in the second tier In addition to IS-specific
journals publications included management science computer science and business-
oriented journals The individual strategies for improving software productivity are
identified Issues related to software costs and controlling them are examined and
discussed It is pointed out that a good framework of techniques exists for controlling
software budgets schedules and work completed but that a great deal of further progress
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 19
30
developed and it should be considered that way Dye-in-thendashwool COTS package ERP
systems exhibit plenty of dangers Only if appropriate risk management and enough time
for stepwise employment is provided for ERP system can be tamed [115]
In the research findings ldquoImplementing Best Practices in ERP for Small amp Medium
Enterprisesrdquo Rashmi Jha A K Saini and M N Hoda (2008) provides an interesting
insight into taking ERP implementation as a project and develops problem driven
approach to examine its complex phenomena The implementation process will be
divided into several components which will reflect the nature of ERP projects and makes
them distinctive from other systems design methods This paper also addresses critical
issues relating to developing entrepreneurship for sustainable development of small and
medium size enterprises(SMEs) for its future extensions and added benefits It may also
be useful for managing other outsourced Information System (IS) projects that have
implementation settings similar to ERP [53]
Saumyendu and Maya Daneva (2003) in ldquoLessons Learnt from Five Years of Experience
in ERP Requirements Engineeringrdquo summarizes one companyrsquos five years of experience
in making a generic ERP RE model a live process It rests on previously published ERP
RE process assessment results and reports on what we learnt with particular focus on
typical issues organizations face when adopting a standard model and solutions that can
be used to avoid those issues in the future Each of our lessons is described together with
a RE practice technical foundation for the practice and engineering techniques for the RE
practitioner The lessons were used to refine our Corporate Documentation Model a
process-focused and template-based ERP-architecture framework [40]
In ldquoResearch on Agent-Based Architecture of ERP For Small amp Medium-Size
Enterpriserdquo Rui-Xue Fu Zhan-Hong Xin and Can Chen (2007) suggests that with the
rapid development of information technology and the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward To address these problems a MAERP system architecture has been developed
in which the agents are classified into four types F-Agent for realizing an operation
application C-Agent for coordinating with other agents I-Agent for a communication
31
tool between the user and the MAERP system and T-Agent for performing specific tasks
and data collecting [35]
Xavier Franch and Juan Pablo Carvallo (2003) in the research paper Using Quality
Models in Software Package Selection found that the absence of structured descriptions
of quality features and user quality requirements makes selecting the right software
package difficult The authors propose a methodology for describing the quality features
of domain-specific software packages uniformly and comprehensively using ISOIEC
9126-1 quality standards as a framework [34]
In the paper study ldquoRevisiting ERP Systems Benefit Realizationrdquo Paul Hawking and
Andrew Stein (2004) maintains that many companies initially implemented their ERP
systems to solve Y2K and disparate systems issues These same companies are now
looking at a how to strategically leverages their investment in these systems through the
implementation ldquosecond waverdquo functionality This paper identifies the expected and
actual benefits of ldquosecond waverdquo implementations In addition it identifies barriers which
limit the benefit realization The findings reinforce that ERP implementations are people
focused projects which rely heavily on change management for success [45]
Hamid Nach and Albert Lejeune (2008) ldquoImplementing ERP in SMEs Towards an
Ontology Supporting Managerial Decisionsrdquo state that the purpose of this research
project is to consolidate and formalize as ontology on the basis of an extensive literature
review the key processes and skills required for successful implementation of ERP in an
SME Using the Proteacutegeacute software program the research identified and formalized 395
terms each of which has its own definition Exploitation of this ontology could take
multiple and varied forms including creation of a learning system an on-line cooperation
platform or a project management process mapping tool contributing to successful use of
ERP in SMEs [81]
While Gul Tekin Temur and Sitki Gozlu (2008) ldquoDetermination of Performance Criteria
for ERP Software Technologyrdquo mention that the main goal is to determine the
performance criteria for ERP software technology with respect to their sources Today
the companies are in interaction with many internal and external partners and have to face
many situations in various environments Especially many small and medium sized firms
utilize ERP software technology to plan their business interactions in the chain In this
32
study firstly a literature search is accomplished Then in order to reveal the performance
criteria a large-scale automotive company has been selected to conduct interviews with
managers Also the meeting reports of a few small and medium-sized companies have
been analyzed As a result of the analysis on findings the common views of the firms
about performance criteria are classified into four groups according to their sources such
as people technical managerial and economical The sub factors of these main criteria
are also taken into account in order to point out the origins of the criteria The results of
the study will provide insight to researchers and as well as to professionals in the practice
[108]
Maya Daneva (2004) in ERP Requirements Engineering Practice Lessons Learned
mentioned the fact that organizations implementing Enterprise Resource Planning (ERP)
systems have been increasingly adopting generic off-the-shelf requirements engineering
(RE) process models Yet little information exists about the challenges of making a
generic RE model a life process This article discusses why bringing an off-the-shelf
process in is not a sufficient foundation The author shares experiences acquired over the
past five years of eliciting modeling and validating requirements in ERP projects and
highlights typical issues and their solutions Among the keys to success are planning RE
model use in the clients context and installing processes to support key RE activities [25]
While the article ldquoRescuing Troubled Software Projects by Team Transformation A
Case Study with an ERP Projectrdquo by Kim Man Lui and Keith C C Chan (2008)
differentiates various reasons of ERP project failures It further states that many software
projects fail whether failure is measured in terms of budget schedule or some other
requirement The causes of such failures are many but are not always easily recognized
This is not the least due to the human dimension of corporate activities as spurious or
misdiagnosed issues in Enterprise Resource Planning (ERP) projects can take on a life of
their own and become a magnet for company politics This paper reports an industrial
case in which the senior management attempted to deal with a troubled ERP
implementation (SAP R3) in an international fast moving consumer goods (FMCG)
company during 2001 and 2002 This paper reflects this dimension as it uses original
emails and PowerPoint slides to recount a number of representative episodes in a troubled
but ultimately successful project At the heart of this success is the realization that
33
whereas it can be difficult and time-consuming to do root-cause analyses it is relatively
simple to identify problem owners In this case the senior management without IT
backgrounds turned around a failing project by reorganizing the team structure according
to process areas so that issues in each process area had one problem owner We
summarize the managementrsquos actions into a troubleshooting framework and in addition
suggest three actions for rescuing troubled projects keep the project manager but narrow
down the managerrsquos scope of responsibility to one or two process areas assign the right
people to be responsible for other process areas and have the General Manager chair the
ERP meetings [60]
In the PICMET 2006 Proceedings on ldquoOptimizing the Change Management of Enterprise
Resource Planning Systems Implementationsrdquo Onur Kerimoglu and Nuri BaUogluI
(2006) maintain that although Enterprise Resource Planning (ERP) systems are being
used widely all around the world they also carry out many problems as well as their
benefits These systems are well known for enhancing cross functional efficiency and
effectiveness through the integration of all information flowing throughout an
organization However during different project life cycle stages of ERP systems this
integration may not be provided because of the formulation of incompatibilities which
are greater than the optimum level among different parties like ERP system processes of
the organization and system users Within this study existing incompatibilities between
these parties are modeled respectively In common the model propose that the ERP
product mostly matching with the processes of the organization should be selected
processes of the organization should be changed for being compatible with the ERP
system and system users should be educated new qualified people should be hired etc
for making the system and processes more familiar to people Here the point is that all of
these are done for keeping incompatibilities between the ERP system processes and
people at minimum level because this minimalism will avoid optimization and utilization
problems This study not only handles problems of ERP from a newer perspective but
also provides insight to managers about managing the change and utilizing their resources
efficiently for adopting the ERP software across the organization [59]
Capaldo Guido and Rippa Pierluigi (2008) in ldquoA methodological proposal to assess the
feasibility of ERP Systems Implementation Strategiesrdquo stated that Continuous failures in
34
ERP systems implementation project are today the main challenge in the feasibility of
integrated information systems Failure can be determined by different factors both from
technological side and organizational side if not well managed In this paper we propose
a methodological approach based on technochange management in order to assess the
feasibility of ERP implementation strategy and reduce the risk of failure in terms of
project metrics and early operational metrics A case study in a big Italian
Telecommunication Firm will be presented [19]
ldquoCase Study of PLIVA Pharmaceuticals Inc - Aligning ERP System Implementation
with Business Process Changerdquo is very relevant and contemporary paper presented by
Vesna Bosilj Vuksic and Mario Spremic (2004) The main objective of this paper is to
present the impacts of information technology (IT) and enterprise resource planning
(ERP) systems in business process renovation projects A case study of business process
reengineering project and the implementation of the SAP software solution in PLIVA
(PLIVA pharmaceuticals Inc) are presented [116]
In ldquoKey Factors Driving the Success of Technology Adoption Case Examples of ERP
Adoptionrdquo Chonyacha Suebsin and Nathasit Gerdsri (2009) address the issues that
impact technology adoption within an organization Several factors influencing
technology adoption process are identified from the literature review Case examples of
the adoption of a new management technology Enterprise Resource Planning (ERP) are
presented to illustrate the situations of technology adoption in organizations From the
case examples the factors influencing technology adoption in organizations are
consistent with the factors identified from the literatures The further discussion also
reveals the additional determinants including the clarification of project scope individual
commitment and communication which should be taken into consideration when an
organization adopts a new technology [105]
Maya Daneva (2002) in her paper ldquoUsing Maturity Assessments to Understand the ERP
Requirements Engineering Processrdquo mentions that applying standard requirements
engineering (RE) processes is a major trend in todayrsquos Enterprise Resource Planning
(ERP) software engineering It emerged five years ago with the promise to provide a
mechanism helping ERP project organizations deliver their business requirements timely
and within budget This paper looks in depth at a standard ERP RE process and seeks
35
answers to four questions how well it is defined what are the risks associated with its
application in matureimmature organizations what are the essential practices that
contribute to its success and what are the costs of the process and the quality of the
delivered results The main motivation of this paper is to provide some practical advice
for using assessments to increase project teamsrsquo understanding of the ERP RE process
[26]
Fan JC and Kwoting Fang (2006) ldquoERP Implementation and Information Systems
Success A Test of DeLone and McLeans Modelrdquo present their research that develops
and tests a theoretical extension of DeLone and McLeans model of information system
(IS) success which explains personnel belief that contributes to users utilization of ERP
(enterprise resource planning) systems The extended model is tested using the structural
equation model (SEM) a survey of 202 end-users from ten Taiwanese enterprises that
has implemented Data Systems workflow ERP systems is conducted The theoretical
model proposed in this study provides insight into how the concept of useful perception is
incorporated into DeLone and McLean model and plays a critical mediated role to
influence system usage and its associated satisfaction The implications of these findings
for researchers and practitioners are discussed [32]
In the research findings ldquoManaging ERP Implementation Failure A Project Management
Perspectiverdquo Charlie C Chen Chuck C H Law and Samuel C Yang (2008) stated that
Information Technology (IT) projects are susceptible to changes in the business
environment and the increasing velocity of change in global business is challenging the
management of enterprise systems such as enterprise resource planning (ERP) At the
same time system success depends on the rigor of the project management processes
Scope creep poor risk management inadequate allocation of human resources over time
and vendor management are some common problems associated with the implementation
of an enterprise system These issues pose threats to the success of a large-scale software
project such as ERP This research adopts a case study approach to examine how poor
project management can imperil the implementation of an ERP system Having learned
the lessons from the failure of its first ERP implementation the company in this case
reengineered its project management practices to successfully carry out its second ERP
implementation Many critical project management factors contributed to the failure and
36
success of this companyrsquos ERP system This study explores and identifies critical
elements of project management that contributed to the success of the second ERP
implementation For those organizations adopting ERP the findings provide a roadmap
to follow in order to avoid making critical but often underestimated project management
mistakes [21]
Rafa Kouki Robert Pellerin and Diane Poulin (2008) in An Exploratory Study of ERP
Assimilation in Developing Countries The Case of Three Tunisian Companies assessed
that ERP systems could be considered as the most difficult systems to be assimilated
Very little research however has been realised to investigate the determinants of success
of the ERP assimilation process There has been also a dearth in research about ERP
projects in general and ERP post-implementation and assimilation in particular in
developing countries Using a case study methodology grounded in the diffusion of
innovation theory this study tries to understand the factors that could improve or
challenge the ERP systems assimilation process in three Tunisian companies Our
findings highlighted the importance of several factors such as top management support
strategic alignment IT expertise training communication organizational culture and
coercive pressures [62]
Ian Sommerville (2008) Construction by Configuration Challenges for Software
Engineering Research and Practice observed that past ten years have seen a radical shift
in business application software development Rather than developing software from
scratch using a conventional programming language the majority of commercial
software is now developed through reuse ndash the adaptation and configuration of existing
software systems to meet specific organizational requirements The most widespread
form of reuse is through the use of generic systems such as ERP and COTS systems that
are configured to meet specific organizational requirements In this paper he discussed
the implications of software construction by configuration (CbC) for software
engineering Based on his experience with systems for medical records and university
administration he highlighted some of the issues and problems that can arise in
construction by configuration he discussed problems that arise in CbC projects and
identify a number of challenges for research and practice to improve this approach to
software engineering [104]
37
SV Deshmukh and RR Lakhe (2008) in the research paper ldquoSix Sigma ndash An Innovative
Approach for Waste Reduction A Case Study of an Indian SMErdquo present a case study
aimed at reducing waste at an SME engaged in manufacturing of corrugated boxes The
Define Measure Analyze Improve Control strategy of Six Sigma methodology was
followed to identify probable causes for wastages After studying the system and
implementation of six sigma tools an overall 227 waste reduction was achieved
Individually out of a total seven processes 5 showed waste reduction in excess of 40
This reduction was statistically significant at Plt005 The study confirmed successful
implementation of six sigma to minimize waste generation and in terms saving in
manufacturing costs or increasing the bottom line [29]
While in ldquoERP Implementation Critical Success Factors - The Role and Impact of
Business Process Managementrdquo Yasar F Jarrar Abdullah Al-Mudimigh and Mohamed
Zairi (2000) investigate the role and impact of business process management in
successful ERP implementation The paper starts by defining business process
management ERP and the ERP critical success factors The impact of business process
management on successful ERP implementation is then assessed through looking at the
experiences of several organizations The paper concludes by highlighting best practices
for capitalizing on business process management for successful ERP implementation
[52]
M S Camara L Kermad and A El Mhamedi (2006) in the paper ldquoRisk Prediction in
ERP Projects Classification of Reengineered Business Processesrdquo maintain that
Companies have been implementing ERPs for almost ten years now and more the same
implementation problems continue to occur More and more ERP projectrsquos technological
challenges are accompanied by critical dimensions related to the management of the
transformational effects of these projects on the organization Indeed risk management in
this kind of project is not very structured and misses specific methods In this article they
propose a structured methodology for risk management particularly in the BPR (Business
Process Reengineering) sub-project of ERP implementation The final aim of our work is
to decease appreciably resistance to organizational change which poses the greatest
obstacle to business process reengineering efforts They propose to adapt OSR (Optimal
Set Reduction) a risk management method used in software development for the risk
38
management in ERP implementation They address specially the risk related to the
changes in enterprise processes in the ERP project To achieve this objective they
propose to define business process change metrics starting from business process
complexity metrics that exist in the literature [18]
ldquoExploration and Verification of Factors in the Front-end Stage of the ERP
Implementation Process Evidence from Case Study and Survey Researchrdquo Kun Shi and
Qiang Lu (2009) depict that ERP (Enterprise Resources Planning) is widely used to
improve business performance This paper explores how the factors associated with the
Front-end ERP Implementation Process (FEIP) affect the implementation outcome First
based on literature review a preliminary framework with 12 hypotheses is developed
Then Grounded Theory is applied for a case study to further extract and verify the factors
and sub-factors These factors are finally identified as strategic planning corporate
culture user characteristics organization-process-system maturity external expertise
engagementsupport and project preparation Furthermore the significance and
correlation of all the factors are detected by conducting survey research with SPSS as a
tool for analysis The study shows that the framework is valid and that among six three
factors have strong impact on the ERP implementation result whereas others are less
influential Implication is given and limitation is indicated at the end [63]
Huo Lingyu Liu Bingwu and Li Juntao (2009) in the paper ldquoAn ERP System Selection
Model Based on Fuzzy Grey TOPSIS for SMEsrdquo present a new fuzzy multi-criteria
decision making (FMCDM) approach which integrates the technique for order preference
by the similarity to ideal solution (TOPSIS) grey relation and fuzzy set theory for
enterprise resource planning (ERP) system evaluation and selection in the Small and
Medium-Sized Enterprises (SMEs) In this study the characteristic of the alternative with
respect to the criteria are represented in terms of a linguistic term set and the weight of
the criteria is described by triangular fuzzy numbers respectively According to the grey
theory and fuzzy set theory a closeness coefficient is defined to determine the ranking
order of all alternatives by calculating the grade of grey relation to the fuzzy positive-
ideal solution (FPIS) and fuzzy negative-ideal solution (FNIS) simultaneously Finally
an example is shown to highlight the procedure of the proposed method [48]
39
Gao Juntao Zhang Li Wang Zhiyao (2008) summarized their findings in ldquoDecision
Support for Handling Gaps between ERP functionalities and Organizational Needs A
Goal Reasoning based approachrdquo They found that in the process of selecting
commercial off-the-shelf (COTS) ERP systems it is inevitable to encounter gaps between
ERP software and organizational needs Gaps occur when COTS attributes do not exactly
match organizational needs and they make organizational users and software vendors in
the dilemma whether to adapt as-is business processes or to customize software
packages A decision support method for handling gaps is proposed in this paper Firstly
organizational goal-process models are built as the base for decision making Secondly
the idea of evidence theory is introduced into goal reasoning and a quantified algorithm is
proposed to evaluate the impacts of different business processes on high level goals
which are critical to make decision At last the risk is discussed to rank intervals which
specify the expected utilization of business processes [56]
Yvonne Dittrich and Sebastien Vaucouleur (2009) conducted a research on the topicrdquo
ERP Customization as Software Engineering Knowledge Sharing and Cooperationrdquo and
argue that Enterprise resource planning (ERP) systems must be configured and
customized to fit a specific company The authors discuss cooperation with regard to ERP
systems customization Enterprise resource planning (ERP) vendors provide multiple
configuration possibilities ranging from module selection to master data provision to
steer access rights for different users These configuration possibilities cover anticipated
variability If the customer requires adaptation beyond whatrsquos anticipated the source
code of the product must be adapted Customizations in this articlersquos context are source-
code-based adaptations of software products The size and complexity of customizations
range from simple report generation to developing independent add-ons that support
specific businessesmdashfor example solutions for flight carriers The size and lead time of
such projects can compare to a full-size software development project They present
empirical research on customization practices of ERP systems as an example of software
development based on customization of standard software They compared customization
with other development practices that are based on integrating existing code and results
underlined the need to rethink software engineering and programming methods and tools
[129]
40
In the paper study ldquoSignificance of Software Metrics in ERP Projectsrdquo S Parthasarathy
and N Anbazhagan (2006) narrate that ERP projects are a subclass of software projects
often accompanied by large-scale organizational changes One of the major reasons found
in the literature for the failure of ERP projects is the poor management of software
processes In this paper we propose a Software Metrics Plan (SNP) containing different
software metrics to manage software processes during ERP implementation Two
hypotheses have been formulated and tested using statistical techniques to validate the
SNP The statistical analysis of the collected data from an ERP project supports the two
hypotheses leading to the conclusion that the software metrics are momentous in ERP
projects [84]
Antony Marsh (2000) in the article ldquoThe implementation of Enterprise Resource Planning
systems in small and medium Manufacturing enterprises in south-east Queensland a case
study approachrdquo examines the implementation of ERP systems in smallmedium-sized
enterprises in South East Queensland Australia Nine case studies were conducted to
determine factors for success or failure in the implementations Key success factors
identified included cross-functional team approaches organizational experience of
similar scale IT or organizational change projects and lsquodeeprsquo understanding of the key
issues relating to ERP implementations Failure factors identified included top-down or
consultant driven implementations IT department driven implementations or
implementations where the EFV is seen as a quick technological fix to problems within
the operation of the firm rather than as a strategic investment [78]
Christian Doumlrner Sebastian Draxler Volkmar Pipek and Volker Wulf (2009) through
their study ldquoEnd Users at the Bazaar Designing Next-Generation Enterprise Resource
Planning Systemsrdquo propose that the bazaar metaphor has developed a lasting
popularity in software engineering especially as software architectures have evolved
from monoliths to service orientation Nevertheless the metaphor is limited because it
doesnt consider end users those who develop software for themselves Introducing such
an end user the prosumer to the bazaar not only suggests a changing division of work
in software development but also calls for different functionality and architectural
choices The authors evaluated changing software architectures from an end-user
development (EUD) perspective taking the case of enterprise resource planning (ERP)
41
systems as traditionally monolithically designed systems moving toward service
orientation On the basis of the studys findings which indicated problems with the
systems technical flexibility the authors developed a tool set for fostering EUD
activities Their new architecture for ERP systems enables end users to create their own
solutions [31]
Kenny KF Lee (2000) in ldquoThe Five Disciplines of ERP Software Implementationrdquo has
identified the critical factors in businesses which learn grow and succeed This paper
applies the central concepts of the book its five disciplines to the software business
specifically the management of software implementation Using the learning challenge
posed by the organization-wide implementation of Enterprise Resource Systems (Em) the
paper covers how EM software project leaders may manage themselves their teams
business vision and corporate culture and team members to create a survival machine
which can thrive in the current economic and technological climate [67]
Piet MA Ribbers amp Schoo (2000) in his paper ldquoDesigning Complex Software
Implementation Programsrdquo raises a central question that how one can design of Program
Management contributes to the success of complex software implementations
Incomplete goal specifications lack of communication and underestimation of project
complexity are signs of insufficient program and project management To avoid these
pitfalls he proposes ways that have worked well in recent complex multi-project ERP
implementations (programs) Answering the above question raises the problem of
adequately defining and measuring the level of complexity of an implementation
program A conceptual model was developed which identifies program management
factors that are proposed to have an impact on implementation success Fifteen cases
were studied to find support for the proposed framework [88]
ldquoDetecting Gaps between ERP Software and Organizational Needs A Semantic
Similarity Based Approachrdquo is very relevant and contemporary paper presented by Gao
Juntao and Zhang Li (2008) It depicts that Gap analysis is one of the most important
phases in implementation of enterprise resource planning (ERP) system In this paper an
approach is proposed to automatically detect gaps between software capacities and
organizational needs based on semantic similarity computation The approach takes two
business process models as input and one specifies software capacities and the other
42
describes organizational needs The output of it is a report of gaps As a matter of fact
the differences between application domain and software discipline make semantic
heterogeneity a key problem in gap detection therefore the technologies of semantic
similarity computing are employed to resolve ambiguity issues caused by the use of
synonyms or homonyms In particular the idea of similarity propagation is introduced to
pick out a mapping between corresponding activities and data and Hungarian algorithm
is employed to reduce its time complexity Then the similarity of whole models is
measured according to the minimal total cost of change operations Finally an
experiment is given to evaluate the method [36]
In the research publication ldquoERP System Adoption - Does the Size Matterrdquo Sanna
Laukkanen Sami Sarpola and Petri Hallikainen (2005) investigate the relationship of
enterprise size to the constraints and objectives of ERP systems adoption The survey
data based on the responses of 44 companies indicates that significant differences exist
between small medium-sized and large enterprises in ERP system adoption Specifically
the findings suggest that small companies experience more knowledge constraints than
their larger counterparts in ERP adoption Further while being the most prevalent
objective for ERP adoption in all the company groups business development through
ERP adoption is considered especially important by the medium-sized and large
enterprises Finally the findings of the study suggest that instead of considering small
and medium-sized enterprises as one homogenous group the differences between these
two groups of companies should be acknowledged in the future research [65]
In their paper ldquoModel Based on CSCWrdquo Wedian Liang XuFen Zhenkun Li Rong Xiao
JunFeng Hu (2005) summarise their finding They feel that Software testing is an
important component of the software engineering and an important link that the software
development quality is guaranteed Using the reasonable model for software testing can
reduce the expenses of testing in the developing activity in the course of testing thus cut
down the cost of software development In this paper we put forward a model for
software testing bused on CSCW technology that run through each stages of software
development cycle If can find the mistake in the software as soon as possible has
shorten the time taken for testing in the course of the development of software testing
43
effectively Finally we applied the model to the testing project which develops ERP
system and then receive the ideal result [118]
In their paper ldquoThe Research and Development of IMIS for Small and Medium-sized
Printing Enterpriserdquo Taolin Ma Xiaoming Chen Yansong Sun Xiurong Li (2009)
analyzed the fact that the basic management thought of inventory management
information system (IMIS) was established by analyzing the inventory management
theory of modern enterprise In this system which using the architecture of CS the stores
were classified by ABC management method the inventory control was completed by
setting up the safety stock and the largest stock the analysis and design of IMIS were
finished This IMIS was developed to meet the practical requirements of small and
medium-sized printing enterprise in our country It can not only be used as the important
measure of the informationized construction for small and medium sized printing
enterprise but also used as a subsystem of enterprise ERP system IMIS could improve
enterprise management level realize rapid transformation of enterprise and finally
enhance the competitiveness of enterprise in market economy [106]
Jiangao Deng and Yijie Bian (2008) in the research paper ldquoConstructing a Risk
Management Mechanism Model of ERP Projectrdquo mention that in the process of
information project implementation of manufacturing enterprises there are many risks to
set up a set of risk management mechanism is guaranteed for them to succeed in ERP
implementation Firstly based on the analysis of ERP project implementation of China
the paper introduced the risk management methodology systems and the relative model
which includes three main steps identifying risk evaluating risk and controlling risk
After that on the aspects of decision implementation and application stages of
manufacturing ERP project life cycle the paper discussed risks of each stage and put
forward a two-dimension matrix risk management strategy Then a mechanism model of
ERP project risk management is constructed which shows that information risk control
strategies of the last two stages not only depend on resources of these stages but also
have a diverse relationship with the last stage Finally according to the successful
implementation of an enterprisersquos ERP project the paper carried out an effective case
application analysis of risk management mechanism model The lack of improvement in
usersrsquo ERP skill levels and the shortage in documenting the rationale for business rules
44
and configuration decisions were among the critical issues of the post-implementation
stage Indeed all of their respondents stressed the importance of refreshing the usersrsquo
knowledge about the system [28]
Saumyendu Ghosh (2003) in ldquoGlobal Implementation of ERP Software ndash Critical Success
Factors on Upgrading Technical Infrastructurerdquo discusses that implementing an
Enterprise Resource planning (ERP) software in a global environment executive
sponsors face two key challenges While business processes are to be re-engineered to
align with the ERP software best practices technical architecture and infrastructure needs
to be in place globally as per specifications of the packaged software In the legacy
environment different countries or different business units use different systems based
on local standards supported by local resources In the new ERP world globally all the
countries must conform to same technical infrastructure Technical managers face
multiple critical issues implementing a global solution Most of the ERP software is
developed in technically advanced countries standards are often too high for under
developed or developing countries In an effort to bring the global organization to a
common platform different countries need different levels of upgrades In this paper the
authors review key technical issues faced is a global upgrade process to support a global
ERP implementation and how to resolve those We conclude although technical
infrastructure and business process reengineering both are equally important and each
implementation is unique but following some simple steps it is easy to prioritize each
ones during different phases of the project Also time lines of two sub-projects must
converge after initial phase and must follow a common plan for the project to be
successful Multiple scenarios are described to facilitate the process He concludes
although technical infrastructure and business process reengineering both are equally
important and each implementation is unique but following some simple steps it is easy
to prioritize each ones during different phases of the project Also time lines of two
subprojects must converge after initial phase and must follow a common plan for the
project to be successful Multiple scenarios are described to facilitate the process [38]
Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008) ldquoDevelopment and
Implementation of ERPCRM System Based on Open Source Software to Small and
Medium-sized Enterprise in Chinardquo analysed the fact that E-commerce and the
45
development of modern enterprise management raise a number of challenges in the
process of informatization of small and medium-sized enterprises (SME) in china To
address this they present an approach in which the informatization is enhanced by using
Open Source Software with customized policies We analyses the main
informationization obstacles of SME in china bring forward that the lack of bankroll
talents cost and management etc are the key problems to informationization of SME
Furthermore they have developed a textile foreign trade ERP CRM system based on
Open Source Software for the local textile distributor of china integrating financial
distribution sales and service processes given the implement method of overall planning
step-by-step implementation key breakthrough and efficiency guiding In the end we
compare the typical Open Source Software and traditional commercial software point
out the advantages of informatization based Open Source Software to SME in china and
the development trend of Open Source Software for enterprise application [132]
ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information Systems ndash a
Multi-disciplinary Method for ERP System Requirements Engineeringrdquo by Inka Vilpola
Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that ERP systems are in
most cases off-the-shelf software packages and large by their size and complex by their
structure Small and medium-sized enterprises (SMEs) require flexibility of the ERP
system because of their individual operational processes Therefore it is crucial to select
and implement an ERP system that fits the requirements of the intended target processes
To support the requirements engineering of ERP systems we have developed Customer-
Centered ERP Implementation (C-CEI) method The method introduces a multi-
disciplinary approach to the ERP project and provides in-depth understanding of the
companylsquos processes and context of use Using C-CEI method decreases the risk of
SMEs to select an inappropriate system and improves the system acceptance by the
customer companyrsquos employees In this paper we present the method and illustrate it by
three SME case studies [114]
Saumyendu Ghosh (2000) in ldquoChallenges on a global implementation of ERP softwarerdquo
discusses that some of the unique challenges in ERP implementation are satisfying
multiple countries statutory requirements and reporting to the corporate head quarters
from one installation of the software conflicting interests between different business
46
entities lack of experienced implementators in all the countries and eminent users of
multinational advantages He discusses different aspects of these challenges in detail and
point out that ERP software can provide only one solution for a particular business
process unless workarounds are available from experienced implementation Different
counties adopt different reporting and accounting practices and therefore an ERP
implementation cannot solve all problems that global corporation may have multiple
countries in the scope of the project due to absence of standard global processes across
the organization He concludes that the most important critical success factor of these
international implementations are how quickly these corporations can reengineer existing
business process to adopt best practices of using an ERP system [38]
Dong Cheng Feiyan Deng Hongtao Li (2006) ldquoCritical Factors for Successful
Implementation of ERP in Chinardquo in their study propound a theoretical model for
successful implementation of Enterprise Resource Planning (ERP) under Chinarsquos
environment and the authors analyze the model empirically through structural equation
modeling The authors find that strategically IT planning abilities leadershiprsquos support
and the skills of IT section business processing abilities learning abilities and change
management abilities has a significant positive impact on successful ERP implementation
[22]
Parijat Upadhyay (2008) in his research studies ldquoAn explorative study to identify the
Critical Success Factors for ERP Implementation in Indian small and medium scale
enterprisesrdquo explores the existing literature on ERP implementation issues in context to
small and medium scale enterprises and attempts a compilation of the factors that assume
great significance while implementing ERP in SMErsquos Given the nature and magnitude of
the problems in encountered in implementing an ERP project this study would attempt to
identify the critical success factors(CSFrsquos) for a successful implementation of an ERP
project since it calls for substantial effort on the part of all the stake holders involved to
make the implementation a success [111]
ldquoThe ERP Implementation of SME in Chinardquo Yuanqiang Xia Peter Lok and Song Yang
(2009) presented the fact that ERP implementing for small and middle size enterprise
(SME) is different from the large one Based on the analysis on the character of ERP
marketing and SMEs of China 6 critical success factors are recommended The research
47
suggests that the top management support is most important to ERP implement in SME
of China in which paternalism prevails Database of management and capital are main
obstacles ERP 1 or ERP 2 fits to demand of SME high power project team has
tremendous significance in the situation of absence of IT engineer for SME education
and training is helpful to successfully ERP implementing The results service as better
understanding the ERP implementation of SME in China and gaining the good
performance of ERP implementation [126]
Yan Xu and Chung-Hsing Yeh (2009) in the article ldquoStrategic Management of
Performance Measures for an ERP Implementation Project Teamrdquo present a new
evaluation model for managing performance measures of an enterprise resource planning
(ERP) implementation project team in an organization With the performance measures
classified into four strategic perspectives of the balanced scorecard the evaluation model
enables the goal alignment between the project team and the organization A new
algorithm using the concept of multi-attribute decision making is developed to obtain the
relative importance value for each performance measure for its contribution to the
strategic goals of the organization The higher the importance values of a performance
measure the more important the role it plays in determining the responsibilities of the
corresponding project team player Understanding the importance of the key performance
measures will help an organization well-prepare to launch a project and have the project
being organized in advance A case of an ERP implementation project in an integrated
manufacturing corporation is presented to demonstrate the applicability of the evaluation
model and its effective management of the performance measures [124]
Zhang Yanhong (2009) in his research paper ldquoERP Implementation Process Analysis
Based on the Key Success Factorsrdquo describes that Enterprise Resource Planning (ERP) is
an amalgamation of a companys information systems designed to bind more closely a
variety of company functions including human resources inventories and financials
while simultaneously linking the company to customers and vendors This thesis is based
on the theory of product life cycle and the process of ERP is divided into four phase
planning implementation stabilization and improvement Critical success factors in each
phase are identified by paper research case study and investigation An ERP
implementation process model based on the critical Success factors (CSFs) is proposed in
48
the paper The thesis analyzes the global planning stages and business process rebuilding
in the process of QIHE pharmaceuticals ERP Improvement on management and
financing before and after ERP implementation are contrasted and we come to the
following conclusions (1) The CSFs in the planning phase is comprehensive
investigation and evaluation (2) The CSFs in the implementation phase is effective
project management team (3) The CSFs in the stabilization phase is appropriate
information management system (4) The CSFs in the improvement phase is change on
demand and continue to innovate (5) The CSFs throughout the product life cycle is
business process rebuilding [131]
Van Stijn E and Wensley A (2001) ldquoOrganizational memory and the completeness of
process modeling in ERP systems some concerns methods and directions for future
researchrdquo mentioned that Enterprise resource planning (ERP) systems not only have a
broad functional scope promising to support many different business processes they also
embed many different aspects of the companyrsquos organizational memory Disparities can
exist between those memory contents in the ERP system and related contents in other
memory media such as individualsrsquo memories and the organizational structure and
culture It is our contention that in general these disparities or memory mismatches as
we will refer to them lead to under-performance of ERP systems In this paper they focus
on potential memory mismatches that may arise with respect to the embedding of process
knowledge within ERP packages Packages such as SAP provide a varied and rich
environment for process modeling However they suspect that there are still many
instances where process knowledge is either lost or represented in different ways in
different parts of the organization The overall thrust of the paper is to identify a variety
of concerns intriguing questions and avenues for future research [112]
Eric Kimberling (2008) in his article ldquo The Role of Lean Six Sigma in ERPrdquo insisted
that there are a number of things to consider when considering a new ERP system like six
sigma lean manufacturing or other business transformation projects that has the capacity
to measure reducing waste managing change well continuous improvement etc [133]
William H Gaw (2010) ldquoEight Basics of Lean Six Sigma for Manufacturing Firmsrdquo In
the efforts to draw closer to customers many manufacturers have lost focus on what
should be a companyrsquos primary success factor ndash profitable growth In todayrsquos competitive
49
manufacturing environment it takes more than quick fixes outsourcing and downsizing
for companies to consistently achieve their growth and profit objectives While these
options may yield temporary financial relief they will not lead the way to long-term
growth and profitability For companies to grow and consistently exceed bottom line
expectations they need to get lean And to get lean they should master eight basics of
Lean Six Sigma in the form of information integrity performance measurement
sequential production point-of-use logistic cycle time management production linearity
and resource planning and customer satisfaction [134]
Brehm L and Markus M L (2000) in The Divided Software Life Cycle of ERP
Packages mentioned that traditional information system life cycle (SLC) focuses on the
activities performed by company developing implementing and maintaining software for
its own internal use Enterprise resource planning (ERP) software packages change the
SLC in several important ways This paper presents an extension of the SLC model for
ERP packages The lsquodivided software life cyclersquo (DSLC) model features an equal
emphasis on the activities performed by the ERP adopting company and the ERP vendor
[15]
Alavi M and Carlson P (1992) A Review of MIS research and disciplinary
development The perceived status of journals in which MIS research is published is an
important issue to academics The number of IS-related journals has increased through
the years yet it is not obvious which are the ldquoleadingrdquo journals or what criteria should be
used to determine this This article addresses these issues by (1) evaluating and
analyzing previous studies in which MIS related journals have been ranked (2)
determining top-ranked journals and placing them into two levels or tiers based on
previous studies and (3) establishing a profile through a systematic analysis of the nine
journals in the first tier This study identified 17 highly ranked journals for publication
Nine were placed in the first tier and eight in the second tier In addition to IS-specific
journals publications included management science computer science and business-
oriented journals The individual strategies for improving software productivity are
identified Issues related to software costs and controlling them are examined and
discussed It is pointed out that a good framework of techniques exists for controlling
software budgets schedules and work completed but that a great deal of further progress
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 20
31
tool between the user and the MAERP system and T-Agent for performing specific tasks
and data collecting [35]
Xavier Franch and Juan Pablo Carvallo (2003) in the research paper Using Quality
Models in Software Package Selection found that the absence of structured descriptions
of quality features and user quality requirements makes selecting the right software
package difficult The authors propose a methodology for describing the quality features
of domain-specific software packages uniformly and comprehensively using ISOIEC
9126-1 quality standards as a framework [34]
In the paper study ldquoRevisiting ERP Systems Benefit Realizationrdquo Paul Hawking and
Andrew Stein (2004) maintains that many companies initially implemented their ERP
systems to solve Y2K and disparate systems issues These same companies are now
looking at a how to strategically leverages their investment in these systems through the
implementation ldquosecond waverdquo functionality This paper identifies the expected and
actual benefits of ldquosecond waverdquo implementations In addition it identifies barriers which
limit the benefit realization The findings reinforce that ERP implementations are people
focused projects which rely heavily on change management for success [45]
Hamid Nach and Albert Lejeune (2008) ldquoImplementing ERP in SMEs Towards an
Ontology Supporting Managerial Decisionsrdquo state that the purpose of this research
project is to consolidate and formalize as ontology on the basis of an extensive literature
review the key processes and skills required for successful implementation of ERP in an
SME Using the Proteacutegeacute software program the research identified and formalized 395
terms each of which has its own definition Exploitation of this ontology could take
multiple and varied forms including creation of a learning system an on-line cooperation
platform or a project management process mapping tool contributing to successful use of
ERP in SMEs [81]
While Gul Tekin Temur and Sitki Gozlu (2008) ldquoDetermination of Performance Criteria
for ERP Software Technologyrdquo mention that the main goal is to determine the
performance criteria for ERP software technology with respect to their sources Today
the companies are in interaction with many internal and external partners and have to face
many situations in various environments Especially many small and medium sized firms
utilize ERP software technology to plan their business interactions in the chain In this
32
study firstly a literature search is accomplished Then in order to reveal the performance
criteria a large-scale automotive company has been selected to conduct interviews with
managers Also the meeting reports of a few small and medium-sized companies have
been analyzed As a result of the analysis on findings the common views of the firms
about performance criteria are classified into four groups according to their sources such
as people technical managerial and economical The sub factors of these main criteria
are also taken into account in order to point out the origins of the criteria The results of
the study will provide insight to researchers and as well as to professionals in the practice
[108]
Maya Daneva (2004) in ERP Requirements Engineering Practice Lessons Learned
mentioned the fact that organizations implementing Enterprise Resource Planning (ERP)
systems have been increasingly adopting generic off-the-shelf requirements engineering
(RE) process models Yet little information exists about the challenges of making a
generic RE model a life process This article discusses why bringing an off-the-shelf
process in is not a sufficient foundation The author shares experiences acquired over the
past five years of eliciting modeling and validating requirements in ERP projects and
highlights typical issues and their solutions Among the keys to success are planning RE
model use in the clients context and installing processes to support key RE activities [25]
While the article ldquoRescuing Troubled Software Projects by Team Transformation A
Case Study with an ERP Projectrdquo by Kim Man Lui and Keith C C Chan (2008)
differentiates various reasons of ERP project failures It further states that many software
projects fail whether failure is measured in terms of budget schedule or some other
requirement The causes of such failures are many but are not always easily recognized
This is not the least due to the human dimension of corporate activities as spurious or
misdiagnosed issues in Enterprise Resource Planning (ERP) projects can take on a life of
their own and become a magnet for company politics This paper reports an industrial
case in which the senior management attempted to deal with a troubled ERP
implementation (SAP R3) in an international fast moving consumer goods (FMCG)
company during 2001 and 2002 This paper reflects this dimension as it uses original
emails and PowerPoint slides to recount a number of representative episodes in a troubled
but ultimately successful project At the heart of this success is the realization that
33
whereas it can be difficult and time-consuming to do root-cause analyses it is relatively
simple to identify problem owners In this case the senior management without IT
backgrounds turned around a failing project by reorganizing the team structure according
to process areas so that issues in each process area had one problem owner We
summarize the managementrsquos actions into a troubleshooting framework and in addition
suggest three actions for rescuing troubled projects keep the project manager but narrow
down the managerrsquos scope of responsibility to one or two process areas assign the right
people to be responsible for other process areas and have the General Manager chair the
ERP meetings [60]
In the PICMET 2006 Proceedings on ldquoOptimizing the Change Management of Enterprise
Resource Planning Systems Implementationsrdquo Onur Kerimoglu and Nuri BaUogluI
(2006) maintain that although Enterprise Resource Planning (ERP) systems are being
used widely all around the world they also carry out many problems as well as their
benefits These systems are well known for enhancing cross functional efficiency and
effectiveness through the integration of all information flowing throughout an
organization However during different project life cycle stages of ERP systems this
integration may not be provided because of the formulation of incompatibilities which
are greater than the optimum level among different parties like ERP system processes of
the organization and system users Within this study existing incompatibilities between
these parties are modeled respectively In common the model propose that the ERP
product mostly matching with the processes of the organization should be selected
processes of the organization should be changed for being compatible with the ERP
system and system users should be educated new qualified people should be hired etc
for making the system and processes more familiar to people Here the point is that all of
these are done for keeping incompatibilities between the ERP system processes and
people at minimum level because this minimalism will avoid optimization and utilization
problems This study not only handles problems of ERP from a newer perspective but
also provides insight to managers about managing the change and utilizing their resources
efficiently for adopting the ERP software across the organization [59]
Capaldo Guido and Rippa Pierluigi (2008) in ldquoA methodological proposal to assess the
feasibility of ERP Systems Implementation Strategiesrdquo stated that Continuous failures in
34
ERP systems implementation project are today the main challenge in the feasibility of
integrated information systems Failure can be determined by different factors both from
technological side and organizational side if not well managed In this paper we propose
a methodological approach based on technochange management in order to assess the
feasibility of ERP implementation strategy and reduce the risk of failure in terms of
project metrics and early operational metrics A case study in a big Italian
Telecommunication Firm will be presented [19]
ldquoCase Study of PLIVA Pharmaceuticals Inc - Aligning ERP System Implementation
with Business Process Changerdquo is very relevant and contemporary paper presented by
Vesna Bosilj Vuksic and Mario Spremic (2004) The main objective of this paper is to
present the impacts of information technology (IT) and enterprise resource planning
(ERP) systems in business process renovation projects A case study of business process
reengineering project and the implementation of the SAP software solution in PLIVA
(PLIVA pharmaceuticals Inc) are presented [116]
In ldquoKey Factors Driving the Success of Technology Adoption Case Examples of ERP
Adoptionrdquo Chonyacha Suebsin and Nathasit Gerdsri (2009) address the issues that
impact technology adoption within an organization Several factors influencing
technology adoption process are identified from the literature review Case examples of
the adoption of a new management technology Enterprise Resource Planning (ERP) are
presented to illustrate the situations of technology adoption in organizations From the
case examples the factors influencing technology adoption in organizations are
consistent with the factors identified from the literatures The further discussion also
reveals the additional determinants including the clarification of project scope individual
commitment and communication which should be taken into consideration when an
organization adopts a new technology [105]
Maya Daneva (2002) in her paper ldquoUsing Maturity Assessments to Understand the ERP
Requirements Engineering Processrdquo mentions that applying standard requirements
engineering (RE) processes is a major trend in todayrsquos Enterprise Resource Planning
(ERP) software engineering It emerged five years ago with the promise to provide a
mechanism helping ERP project organizations deliver their business requirements timely
and within budget This paper looks in depth at a standard ERP RE process and seeks
35
answers to four questions how well it is defined what are the risks associated with its
application in matureimmature organizations what are the essential practices that
contribute to its success and what are the costs of the process and the quality of the
delivered results The main motivation of this paper is to provide some practical advice
for using assessments to increase project teamsrsquo understanding of the ERP RE process
[26]
Fan JC and Kwoting Fang (2006) ldquoERP Implementation and Information Systems
Success A Test of DeLone and McLeans Modelrdquo present their research that develops
and tests a theoretical extension of DeLone and McLeans model of information system
(IS) success which explains personnel belief that contributes to users utilization of ERP
(enterprise resource planning) systems The extended model is tested using the structural
equation model (SEM) a survey of 202 end-users from ten Taiwanese enterprises that
has implemented Data Systems workflow ERP systems is conducted The theoretical
model proposed in this study provides insight into how the concept of useful perception is
incorporated into DeLone and McLean model and plays a critical mediated role to
influence system usage and its associated satisfaction The implications of these findings
for researchers and practitioners are discussed [32]
In the research findings ldquoManaging ERP Implementation Failure A Project Management
Perspectiverdquo Charlie C Chen Chuck C H Law and Samuel C Yang (2008) stated that
Information Technology (IT) projects are susceptible to changes in the business
environment and the increasing velocity of change in global business is challenging the
management of enterprise systems such as enterprise resource planning (ERP) At the
same time system success depends on the rigor of the project management processes
Scope creep poor risk management inadequate allocation of human resources over time
and vendor management are some common problems associated with the implementation
of an enterprise system These issues pose threats to the success of a large-scale software
project such as ERP This research adopts a case study approach to examine how poor
project management can imperil the implementation of an ERP system Having learned
the lessons from the failure of its first ERP implementation the company in this case
reengineered its project management practices to successfully carry out its second ERP
implementation Many critical project management factors contributed to the failure and
36
success of this companyrsquos ERP system This study explores and identifies critical
elements of project management that contributed to the success of the second ERP
implementation For those organizations adopting ERP the findings provide a roadmap
to follow in order to avoid making critical but often underestimated project management
mistakes [21]
Rafa Kouki Robert Pellerin and Diane Poulin (2008) in An Exploratory Study of ERP
Assimilation in Developing Countries The Case of Three Tunisian Companies assessed
that ERP systems could be considered as the most difficult systems to be assimilated
Very little research however has been realised to investigate the determinants of success
of the ERP assimilation process There has been also a dearth in research about ERP
projects in general and ERP post-implementation and assimilation in particular in
developing countries Using a case study methodology grounded in the diffusion of
innovation theory this study tries to understand the factors that could improve or
challenge the ERP systems assimilation process in three Tunisian companies Our
findings highlighted the importance of several factors such as top management support
strategic alignment IT expertise training communication organizational culture and
coercive pressures [62]
Ian Sommerville (2008) Construction by Configuration Challenges for Software
Engineering Research and Practice observed that past ten years have seen a radical shift
in business application software development Rather than developing software from
scratch using a conventional programming language the majority of commercial
software is now developed through reuse ndash the adaptation and configuration of existing
software systems to meet specific organizational requirements The most widespread
form of reuse is through the use of generic systems such as ERP and COTS systems that
are configured to meet specific organizational requirements In this paper he discussed
the implications of software construction by configuration (CbC) for software
engineering Based on his experience with systems for medical records and university
administration he highlighted some of the issues and problems that can arise in
construction by configuration he discussed problems that arise in CbC projects and
identify a number of challenges for research and practice to improve this approach to
software engineering [104]
37
SV Deshmukh and RR Lakhe (2008) in the research paper ldquoSix Sigma ndash An Innovative
Approach for Waste Reduction A Case Study of an Indian SMErdquo present a case study
aimed at reducing waste at an SME engaged in manufacturing of corrugated boxes The
Define Measure Analyze Improve Control strategy of Six Sigma methodology was
followed to identify probable causes for wastages After studying the system and
implementation of six sigma tools an overall 227 waste reduction was achieved
Individually out of a total seven processes 5 showed waste reduction in excess of 40
This reduction was statistically significant at Plt005 The study confirmed successful
implementation of six sigma to minimize waste generation and in terms saving in
manufacturing costs or increasing the bottom line [29]
While in ldquoERP Implementation Critical Success Factors - The Role and Impact of
Business Process Managementrdquo Yasar F Jarrar Abdullah Al-Mudimigh and Mohamed
Zairi (2000) investigate the role and impact of business process management in
successful ERP implementation The paper starts by defining business process
management ERP and the ERP critical success factors The impact of business process
management on successful ERP implementation is then assessed through looking at the
experiences of several organizations The paper concludes by highlighting best practices
for capitalizing on business process management for successful ERP implementation
[52]
M S Camara L Kermad and A El Mhamedi (2006) in the paper ldquoRisk Prediction in
ERP Projects Classification of Reengineered Business Processesrdquo maintain that
Companies have been implementing ERPs for almost ten years now and more the same
implementation problems continue to occur More and more ERP projectrsquos technological
challenges are accompanied by critical dimensions related to the management of the
transformational effects of these projects on the organization Indeed risk management in
this kind of project is not very structured and misses specific methods In this article they
propose a structured methodology for risk management particularly in the BPR (Business
Process Reengineering) sub-project of ERP implementation The final aim of our work is
to decease appreciably resistance to organizational change which poses the greatest
obstacle to business process reengineering efforts They propose to adapt OSR (Optimal
Set Reduction) a risk management method used in software development for the risk
38
management in ERP implementation They address specially the risk related to the
changes in enterprise processes in the ERP project To achieve this objective they
propose to define business process change metrics starting from business process
complexity metrics that exist in the literature [18]
ldquoExploration and Verification of Factors in the Front-end Stage of the ERP
Implementation Process Evidence from Case Study and Survey Researchrdquo Kun Shi and
Qiang Lu (2009) depict that ERP (Enterprise Resources Planning) is widely used to
improve business performance This paper explores how the factors associated with the
Front-end ERP Implementation Process (FEIP) affect the implementation outcome First
based on literature review a preliminary framework with 12 hypotheses is developed
Then Grounded Theory is applied for a case study to further extract and verify the factors
and sub-factors These factors are finally identified as strategic planning corporate
culture user characteristics organization-process-system maturity external expertise
engagementsupport and project preparation Furthermore the significance and
correlation of all the factors are detected by conducting survey research with SPSS as a
tool for analysis The study shows that the framework is valid and that among six three
factors have strong impact on the ERP implementation result whereas others are less
influential Implication is given and limitation is indicated at the end [63]
Huo Lingyu Liu Bingwu and Li Juntao (2009) in the paper ldquoAn ERP System Selection
Model Based on Fuzzy Grey TOPSIS for SMEsrdquo present a new fuzzy multi-criteria
decision making (FMCDM) approach which integrates the technique for order preference
by the similarity to ideal solution (TOPSIS) grey relation and fuzzy set theory for
enterprise resource planning (ERP) system evaluation and selection in the Small and
Medium-Sized Enterprises (SMEs) In this study the characteristic of the alternative with
respect to the criteria are represented in terms of a linguistic term set and the weight of
the criteria is described by triangular fuzzy numbers respectively According to the grey
theory and fuzzy set theory a closeness coefficient is defined to determine the ranking
order of all alternatives by calculating the grade of grey relation to the fuzzy positive-
ideal solution (FPIS) and fuzzy negative-ideal solution (FNIS) simultaneously Finally
an example is shown to highlight the procedure of the proposed method [48]
39
Gao Juntao Zhang Li Wang Zhiyao (2008) summarized their findings in ldquoDecision
Support for Handling Gaps between ERP functionalities and Organizational Needs A
Goal Reasoning based approachrdquo They found that in the process of selecting
commercial off-the-shelf (COTS) ERP systems it is inevitable to encounter gaps between
ERP software and organizational needs Gaps occur when COTS attributes do not exactly
match organizational needs and they make organizational users and software vendors in
the dilemma whether to adapt as-is business processes or to customize software
packages A decision support method for handling gaps is proposed in this paper Firstly
organizational goal-process models are built as the base for decision making Secondly
the idea of evidence theory is introduced into goal reasoning and a quantified algorithm is
proposed to evaluate the impacts of different business processes on high level goals
which are critical to make decision At last the risk is discussed to rank intervals which
specify the expected utilization of business processes [56]
Yvonne Dittrich and Sebastien Vaucouleur (2009) conducted a research on the topicrdquo
ERP Customization as Software Engineering Knowledge Sharing and Cooperationrdquo and
argue that Enterprise resource planning (ERP) systems must be configured and
customized to fit a specific company The authors discuss cooperation with regard to ERP
systems customization Enterprise resource planning (ERP) vendors provide multiple
configuration possibilities ranging from module selection to master data provision to
steer access rights for different users These configuration possibilities cover anticipated
variability If the customer requires adaptation beyond whatrsquos anticipated the source
code of the product must be adapted Customizations in this articlersquos context are source-
code-based adaptations of software products The size and complexity of customizations
range from simple report generation to developing independent add-ons that support
specific businessesmdashfor example solutions for flight carriers The size and lead time of
such projects can compare to a full-size software development project They present
empirical research on customization practices of ERP systems as an example of software
development based on customization of standard software They compared customization
with other development practices that are based on integrating existing code and results
underlined the need to rethink software engineering and programming methods and tools
[129]
40
In the paper study ldquoSignificance of Software Metrics in ERP Projectsrdquo S Parthasarathy
and N Anbazhagan (2006) narrate that ERP projects are a subclass of software projects
often accompanied by large-scale organizational changes One of the major reasons found
in the literature for the failure of ERP projects is the poor management of software
processes In this paper we propose a Software Metrics Plan (SNP) containing different
software metrics to manage software processes during ERP implementation Two
hypotheses have been formulated and tested using statistical techniques to validate the
SNP The statistical analysis of the collected data from an ERP project supports the two
hypotheses leading to the conclusion that the software metrics are momentous in ERP
projects [84]
Antony Marsh (2000) in the article ldquoThe implementation of Enterprise Resource Planning
systems in small and medium Manufacturing enterprises in south-east Queensland a case
study approachrdquo examines the implementation of ERP systems in smallmedium-sized
enterprises in South East Queensland Australia Nine case studies were conducted to
determine factors for success or failure in the implementations Key success factors
identified included cross-functional team approaches organizational experience of
similar scale IT or organizational change projects and lsquodeeprsquo understanding of the key
issues relating to ERP implementations Failure factors identified included top-down or
consultant driven implementations IT department driven implementations or
implementations where the EFV is seen as a quick technological fix to problems within
the operation of the firm rather than as a strategic investment [78]
Christian Doumlrner Sebastian Draxler Volkmar Pipek and Volker Wulf (2009) through
their study ldquoEnd Users at the Bazaar Designing Next-Generation Enterprise Resource
Planning Systemsrdquo propose that the bazaar metaphor has developed a lasting
popularity in software engineering especially as software architectures have evolved
from monoliths to service orientation Nevertheless the metaphor is limited because it
doesnt consider end users those who develop software for themselves Introducing such
an end user the prosumer to the bazaar not only suggests a changing division of work
in software development but also calls for different functionality and architectural
choices The authors evaluated changing software architectures from an end-user
development (EUD) perspective taking the case of enterprise resource planning (ERP)
41
systems as traditionally monolithically designed systems moving toward service
orientation On the basis of the studys findings which indicated problems with the
systems technical flexibility the authors developed a tool set for fostering EUD
activities Their new architecture for ERP systems enables end users to create their own
solutions [31]
Kenny KF Lee (2000) in ldquoThe Five Disciplines of ERP Software Implementationrdquo has
identified the critical factors in businesses which learn grow and succeed This paper
applies the central concepts of the book its five disciplines to the software business
specifically the management of software implementation Using the learning challenge
posed by the organization-wide implementation of Enterprise Resource Systems (Em) the
paper covers how EM software project leaders may manage themselves their teams
business vision and corporate culture and team members to create a survival machine
which can thrive in the current economic and technological climate [67]
Piet MA Ribbers amp Schoo (2000) in his paper ldquoDesigning Complex Software
Implementation Programsrdquo raises a central question that how one can design of Program
Management contributes to the success of complex software implementations
Incomplete goal specifications lack of communication and underestimation of project
complexity are signs of insufficient program and project management To avoid these
pitfalls he proposes ways that have worked well in recent complex multi-project ERP
implementations (programs) Answering the above question raises the problem of
adequately defining and measuring the level of complexity of an implementation
program A conceptual model was developed which identifies program management
factors that are proposed to have an impact on implementation success Fifteen cases
were studied to find support for the proposed framework [88]
ldquoDetecting Gaps between ERP Software and Organizational Needs A Semantic
Similarity Based Approachrdquo is very relevant and contemporary paper presented by Gao
Juntao and Zhang Li (2008) It depicts that Gap analysis is one of the most important
phases in implementation of enterprise resource planning (ERP) system In this paper an
approach is proposed to automatically detect gaps between software capacities and
organizational needs based on semantic similarity computation The approach takes two
business process models as input and one specifies software capacities and the other
42
describes organizational needs The output of it is a report of gaps As a matter of fact
the differences between application domain and software discipline make semantic
heterogeneity a key problem in gap detection therefore the technologies of semantic
similarity computing are employed to resolve ambiguity issues caused by the use of
synonyms or homonyms In particular the idea of similarity propagation is introduced to
pick out a mapping between corresponding activities and data and Hungarian algorithm
is employed to reduce its time complexity Then the similarity of whole models is
measured according to the minimal total cost of change operations Finally an
experiment is given to evaluate the method [36]
In the research publication ldquoERP System Adoption - Does the Size Matterrdquo Sanna
Laukkanen Sami Sarpola and Petri Hallikainen (2005) investigate the relationship of
enterprise size to the constraints and objectives of ERP systems adoption The survey
data based on the responses of 44 companies indicates that significant differences exist
between small medium-sized and large enterprises in ERP system adoption Specifically
the findings suggest that small companies experience more knowledge constraints than
their larger counterparts in ERP adoption Further while being the most prevalent
objective for ERP adoption in all the company groups business development through
ERP adoption is considered especially important by the medium-sized and large
enterprises Finally the findings of the study suggest that instead of considering small
and medium-sized enterprises as one homogenous group the differences between these
two groups of companies should be acknowledged in the future research [65]
In their paper ldquoModel Based on CSCWrdquo Wedian Liang XuFen Zhenkun Li Rong Xiao
JunFeng Hu (2005) summarise their finding They feel that Software testing is an
important component of the software engineering and an important link that the software
development quality is guaranteed Using the reasonable model for software testing can
reduce the expenses of testing in the developing activity in the course of testing thus cut
down the cost of software development In this paper we put forward a model for
software testing bused on CSCW technology that run through each stages of software
development cycle If can find the mistake in the software as soon as possible has
shorten the time taken for testing in the course of the development of software testing
43
effectively Finally we applied the model to the testing project which develops ERP
system and then receive the ideal result [118]
In their paper ldquoThe Research and Development of IMIS for Small and Medium-sized
Printing Enterpriserdquo Taolin Ma Xiaoming Chen Yansong Sun Xiurong Li (2009)
analyzed the fact that the basic management thought of inventory management
information system (IMIS) was established by analyzing the inventory management
theory of modern enterprise In this system which using the architecture of CS the stores
were classified by ABC management method the inventory control was completed by
setting up the safety stock and the largest stock the analysis and design of IMIS were
finished This IMIS was developed to meet the practical requirements of small and
medium-sized printing enterprise in our country It can not only be used as the important
measure of the informationized construction for small and medium sized printing
enterprise but also used as a subsystem of enterprise ERP system IMIS could improve
enterprise management level realize rapid transformation of enterprise and finally
enhance the competitiveness of enterprise in market economy [106]
Jiangao Deng and Yijie Bian (2008) in the research paper ldquoConstructing a Risk
Management Mechanism Model of ERP Projectrdquo mention that in the process of
information project implementation of manufacturing enterprises there are many risks to
set up a set of risk management mechanism is guaranteed for them to succeed in ERP
implementation Firstly based on the analysis of ERP project implementation of China
the paper introduced the risk management methodology systems and the relative model
which includes three main steps identifying risk evaluating risk and controlling risk
After that on the aspects of decision implementation and application stages of
manufacturing ERP project life cycle the paper discussed risks of each stage and put
forward a two-dimension matrix risk management strategy Then a mechanism model of
ERP project risk management is constructed which shows that information risk control
strategies of the last two stages not only depend on resources of these stages but also
have a diverse relationship with the last stage Finally according to the successful
implementation of an enterprisersquos ERP project the paper carried out an effective case
application analysis of risk management mechanism model The lack of improvement in
usersrsquo ERP skill levels and the shortage in documenting the rationale for business rules
44
and configuration decisions were among the critical issues of the post-implementation
stage Indeed all of their respondents stressed the importance of refreshing the usersrsquo
knowledge about the system [28]
Saumyendu Ghosh (2003) in ldquoGlobal Implementation of ERP Software ndash Critical Success
Factors on Upgrading Technical Infrastructurerdquo discusses that implementing an
Enterprise Resource planning (ERP) software in a global environment executive
sponsors face two key challenges While business processes are to be re-engineered to
align with the ERP software best practices technical architecture and infrastructure needs
to be in place globally as per specifications of the packaged software In the legacy
environment different countries or different business units use different systems based
on local standards supported by local resources In the new ERP world globally all the
countries must conform to same technical infrastructure Technical managers face
multiple critical issues implementing a global solution Most of the ERP software is
developed in technically advanced countries standards are often too high for under
developed or developing countries In an effort to bring the global organization to a
common platform different countries need different levels of upgrades In this paper the
authors review key technical issues faced is a global upgrade process to support a global
ERP implementation and how to resolve those We conclude although technical
infrastructure and business process reengineering both are equally important and each
implementation is unique but following some simple steps it is easy to prioritize each
ones during different phases of the project Also time lines of two sub-projects must
converge after initial phase and must follow a common plan for the project to be
successful Multiple scenarios are described to facilitate the process He concludes
although technical infrastructure and business process reengineering both are equally
important and each implementation is unique but following some simple steps it is easy
to prioritize each ones during different phases of the project Also time lines of two
subprojects must converge after initial phase and must follow a common plan for the
project to be successful Multiple scenarios are described to facilitate the process [38]
Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008) ldquoDevelopment and
Implementation of ERPCRM System Based on Open Source Software to Small and
Medium-sized Enterprise in Chinardquo analysed the fact that E-commerce and the
45
development of modern enterprise management raise a number of challenges in the
process of informatization of small and medium-sized enterprises (SME) in china To
address this they present an approach in which the informatization is enhanced by using
Open Source Software with customized policies We analyses the main
informationization obstacles of SME in china bring forward that the lack of bankroll
talents cost and management etc are the key problems to informationization of SME
Furthermore they have developed a textile foreign trade ERP CRM system based on
Open Source Software for the local textile distributor of china integrating financial
distribution sales and service processes given the implement method of overall planning
step-by-step implementation key breakthrough and efficiency guiding In the end we
compare the typical Open Source Software and traditional commercial software point
out the advantages of informatization based Open Source Software to SME in china and
the development trend of Open Source Software for enterprise application [132]
ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information Systems ndash a
Multi-disciplinary Method for ERP System Requirements Engineeringrdquo by Inka Vilpola
Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that ERP systems are in
most cases off-the-shelf software packages and large by their size and complex by their
structure Small and medium-sized enterprises (SMEs) require flexibility of the ERP
system because of their individual operational processes Therefore it is crucial to select
and implement an ERP system that fits the requirements of the intended target processes
To support the requirements engineering of ERP systems we have developed Customer-
Centered ERP Implementation (C-CEI) method The method introduces a multi-
disciplinary approach to the ERP project and provides in-depth understanding of the
companylsquos processes and context of use Using C-CEI method decreases the risk of
SMEs to select an inappropriate system and improves the system acceptance by the
customer companyrsquos employees In this paper we present the method and illustrate it by
three SME case studies [114]
Saumyendu Ghosh (2000) in ldquoChallenges on a global implementation of ERP softwarerdquo
discusses that some of the unique challenges in ERP implementation are satisfying
multiple countries statutory requirements and reporting to the corporate head quarters
from one installation of the software conflicting interests between different business
46
entities lack of experienced implementators in all the countries and eminent users of
multinational advantages He discusses different aspects of these challenges in detail and
point out that ERP software can provide only one solution for a particular business
process unless workarounds are available from experienced implementation Different
counties adopt different reporting and accounting practices and therefore an ERP
implementation cannot solve all problems that global corporation may have multiple
countries in the scope of the project due to absence of standard global processes across
the organization He concludes that the most important critical success factor of these
international implementations are how quickly these corporations can reengineer existing
business process to adopt best practices of using an ERP system [38]
Dong Cheng Feiyan Deng Hongtao Li (2006) ldquoCritical Factors for Successful
Implementation of ERP in Chinardquo in their study propound a theoretical model for
successful implementation of Enterprise Resource Planning (ERP) under Chinarsquos
environment and the authors analyze the model empirically through structural equation
modeling The authors find that strategically IT planning abilities leadershiprsquos support
and the skills of IT section business processing abilities learning abilities and change
management abilities has a significant positive impact on successful ERP implementation
[22]
Parijat Upadhyay (2008) in his research studies ldquoAn explorative study to identify the
Critical Success Factors for ERP Implementation in Indian small and medium scale
enterprisesrdquo explores the existing literature on ERP implementation issues in context to
small and medium scale enterprises and attempts a compilation of the factors that assume
great significance while implementing ERP in SMErsquos Given the nature and magnitude of
the problems in encountered in implementing an ERP project this study would attempt to
identify the critical success factors(CSFrsquos) for a successful implementation of an ERP
project since it calls for substantial effort on the part of all the stake holders involved to
make the implementation a success [111]
ldquoThe ERP Implementation of SME in Chinardquo Yuanqiang Xia Peter Lok and Song Yang
(2009) presented the fact that ERP implementing for small and middle size enterprise
(SME) is different from the large one Based on the analysis on the character of ERP
marketing and SMEs of China 6 critical success factors are recommended The research
47
suggests that the top management support is most important to ERP implement in SME
of China in which paternalism prevails Database of management and capital are main
obstacles ERP 1 or ERP 2 fits to demand of SME high power project team has
tremendous significance in the situation of absence of IT engineer for SME education
and training is helpful to successfully ERP implementing The results service as better
understanding the ERP implementation of SME in China and gaining the good
performance of ERP implementation [126]
Yan Xu and Chung-Hsing Yeh (2009) in the article ldquoStrategic Management of
Performance Measures for an ERP Implementation Project Teamrdquo present a new
evaluation model for managing performance measures of an enterprise resource planning
(ERP) implementation project team in an organization With the performance measures
classified into four strategic perspectives of the balanced scorecard the evaluation model
enables the goal alignment between the project team and the organization A new
algorithm using the concept of multi-attribute decision making is developed to obtain the
relative importance value for each performance measure for its contribution to the
strategic goals of the organization The higher the importance values of a performance
measure the more important the role it plays in determining the responsibilities of the
corresponding project team player Understanding the importance of the key performance
measures will help an organization well-prepare to launch a project and have the project
being organized in advance A case of an ERP implementation project in an integrated
manufacturing corporation is presented to demonstrate the applicability of the evaluation
model and its effective management of the performance measures [124]
Zhang Yanhong (2009) in his research paper ldquoERP Implementation Process Analysis
Based on the Key Success Factorsrdquo describes that Enterprise Resource Planning (ERP) is
an amalgamation of a companys information systems designed to bind more closely a
variety of company functions including human resources inventories and financials
while simultaneously linking the company to customers and vendors This thesis is based
on the theory of product life cycle and the process of ERP is divided into four phase
planning implementation stabilization and improvement Critical success factors in each
phase are identified by paper research case study and investigation An ERP
implementation process model based on the critical Success factors (CSFs) is proposed in
48
the paper The thesis analyzes the global planning stages and business process rebuilding
in the process of QIHE pharmaceuticals ERP Improvement on management and
financing before and after ERP implementation are contrasted and we come to the
following conclusions (1) The CSFs in the planning phase is comprehensive
investigation and evaluation (2) The CSFs in the implementation phase is effective
project management team (3) The CSFs in the stabilization phase is appropriate
information management system (4) The CSFs in the improvement phase is change on
demand and continue to innovate (5) The CSFs throughout the product life cycle is
business process rebuilding [131]
Van Stijn E and Wensley A (2001) ldquoOrganizational memory and the completeness of
process modeling in ERP systems some concerns methods and directions for future
researchrdquo mentioned that Enterprise resource planning (ERP) systems not only have a
broad functional scope promising to support many different business processes they also
embed many different aspects of the companyrsquos organizational memory Disparities can
exist between those memory contents in the ERP system and related contents in other
memory media such as individualsrsquo memories and the organizational structure and
culture It is our contention that in general these disparities or memory mismatches as
we will refer to them lead to under-performance of ERP systems In this paper they focus
on potential memory mismatches that may arise with respect to the embedding of process
knowledge within ERP packages Packages such as SAP provide a varied and rich
environment for process modeling However they suspect that there are still many
instances where process knowledge is either lost or represented in different ways in
different parts of the organization The overall thrust of the paper is to identify a variety
of concerns intriguing questions and avenues for future research [112]
Eric Kimberling (2008) in his article ldquo The Role of Lean Six Sigma in ERPrdquo insisted
that there are a number of things to consider when considering a new ERP system like six
sigma lean manufacturing or other business transformation projects that has the capacity
to measure reducing waste managing change well continuous improvement etc [133]
William H Gaw (2010) ldquoEight Basics of Lean Six Sigma for Manufacturing Firmsrdquo In
the efforts to draw closer to customers many manufacturers have lost focus on what
should be a companyrsquos primary success factor ndash profitable growth In todayrsquos competitive
49
manufacturing environment it takes more than quick fixes outsourcing and downsizing
for companies to consistently achieve their growth and profit objectives While these
options may yield temporary financial relief they will not lead the way to long-term
growth and profitability For companies to grow and consistently exceed bottom line
expectations they need to get lean And to get lean they should master eight basics of
Lean Six Sigma in the form of information integrity performance measurement
sequential production point-of-use logistic cycle time management production linearity
and resource planning and customer satisfaction [134]
Brehm L and Markus M L (2000) in The Divided Software Life Cycle of ERP
Packages mentioned that traditional information system life cycle (SLC) focuses on the
activities performed by company developing implementing and maintaining software for
its own internal use Enterprise resource planning (ERP) software packages change the
SLC in several important ways This paper presents an extension of the SLC model for
ERP packages The lsquodivided software life cyclersquo (DSLC) model features an equal
emphasis on the activities performed by the ERP adopting company and the ERP vendor
[15]
Alavi M and Carlson P (1992) A Review of MIS research and disciplinary
development The perceived status of journals in which MIS research is published is an
important issue to academics The number of IS-related journals has increased through
the years yet it is not obvious which are the ldquoleadingrdquo journals or what criteria should be
used to determine this This article addresses these issues by (1) evaluating and
analyzing previous studies in which MIS related journals have been ranked (2)
determining top-ranked journals and placing them into two levels or tiers based on
previous studies and (3) establishing a profile through a systematic analysis of the nine
journals in the first tier This study identified 17 highly ranked journals for publication
Nine were placed in the first tier and eight in the second tier In addition to IS-specific
journals publications included management science computer science and business-
oriented journals The individual strategies for improving software productivity are
identified Issues related to software costs and controlling them are examined and
discussed It is pointed out that a good framework of techniques exists for controlling
software budgets schedules and work completed but that a great deal of further progress
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 21
32
study firstly a literature search is accomplished Then in order to reveal the performance
criteria a large-scale automotive company has been selected to conduct interviews with
managers Also the meeting reports of a few small and medium-sized companies have
been analyzed As a result of the analysis on findings the common views of the firms
about performance criteria are classified into four groups according to their sources such
as people technical managerial and economical The sub factors of these main criteria
are also taken into account in order to point out the origins of the criteria The results of
the study will provide insight to researchers and as well as to professionals in the practice
[108]
Maya Daneva (2004) in ERP Requirements Engineering Practice Lessons Learned
mentioned the fact that organizations implementing Enterprise Resource Planning (ERP)
systems have been increasingly adopting generic off-the-shelf requirements engineering
(RE) process models Yet little information exists about the challenges of making a
generic RE model a life process This article discusses why bringing an off-the-shelf
process in is not a sufficient foundation The author shares experiences acquired over the
past five years of eliciting modeling and validating requirements in ERP projects and
highlights typical issues and their solutions Among the keys to success are planning RE
model use in the clients context and installing processes to support key RE activities [25]
While the article ldquoRescuing Troubled Software Projects by Team Transformation A
Case Study with an ERP Projectrdquo by Kim Man Lui and Keith C C Chan (2008)
differentiates various reasons of ERP project failures It further states that many software
projects fail whether failure is measured in terms of budget schedule or some other
requirement The causes of such failures are many but are not always easily recognized
This is not the least due to the human dimension of corporate activities as spurious or
misdiagnosed issues in Enterprise Resource Planning (ERP) projects can take on a life of
their own and become a magnet for company politics This paper reports an industrial
case in which the senior management attempted to deal with a troubled ERP
implementation (SAP R3) in an international fast moving consumer goods (FMCG)
company during 2001 and 2002 This paper reflects this dimension as it uses original
emails and PowerPoint slides to recount a number of representative episodes in a troubled
but ultimately successful project At the heart of this success is the realization that
33
whereas it can be difficult and time-consuming to do root-cause analyses it is relatively
simple to identify problem owners In this case the senior management without IT
backgrounds turned around a failing project by reorganizing the team structure according
to process areas so that issues in each process area had one problem owner We
summarize the managementrsquos actions into a troubleshooting framework and in addition
suggest three actions for rescuing troubled projects keep the project manager but narrow
down the managerrsquos scope of responsibility to one or two process areas assign the right
people to be responsible for other process areas and have the General Manager chair the
ERP meetings [60]
In the PICMET 2006 Proceedings on ldquoOptimizing the Change Management of Enterprise
Resource Planning Systems Implementationsrdquo Onur Kerimoglu and Nuri BaUogluI
(2006) maintain that although Enterprise Resource Planning (ERP) systems are being
used widely all around the world they also carry out many problems as well as their
benefits These systems are well known for enhancing cross functional efficiency and
effectiveness through the integration of all information flowing throughout an
organization However during different project life cycle stages of ERP systems this
integration may not be provided because of the formulation of incompatibilities which
are greater than the optimum level among different parties like ERP system processes of
the organization and system users Within this study existing incompatibilities between
these parties are modeled respectively In common the model propose that the ERP
product mostly matching with the processes of the organization should be selected
processes of the organization should be changed for being compatible with the ERP
system and system users should be educated new qualified people should be hired etc
for making the system and processes more familiar to people Here the point is that all of
these are done for keeping incompatibilities between the ERP system processes and
people at minimum level because this minimalism will avoid optimization and utilization
problems This study not only handles problems of ERP from a newer perspective but
also provides insight to managers about managing the change and utilizing their resources
efficiently for adopting the ERP software across the organization [59]
Capaldo Guido and Rippa Pierluigi (2008) in ldquoA methodological proposal to assess the
feasibility of ERP Systems Implementation Strategiesrdquo stated that Continuous failures in
34
ERP systems implementation project are today the main challenge in the feasibility of
integrated information systems Failure can be determined by different factors both from
technological side and organizational side if not well managed In this paper we propose
a methodological approach based on technochange management in order to assess the
feasibility of ERP implementation strategy and reduce the risk of failure in terms of
project metrics and early operational metrics A case study in a big Italian
Telecommunication Firm will be presented [19]
ldquoCase Study of PLIVA Pharmaceuticals Inc - Aligning ERP System Implementation
with Business Process Changerdquo is very relevant and contemporary paper presented by
Vesna Bosilj Vuksic and Mario Spremic (2004) The main objective of this paper is to
present the impacts of information technology (IT) and enterprise resource planning
(ERP) systems in business process renovation projects A case study of business process
reengineering project and the implementation of the SAP software solution in PLIVA
(PLIVA pharmaceuticals Inc) are presented [116]
In ldquoKey Factors Driving the Success of Technology Adoption Case Examples of ERP
Adoptionrdquo Chonyacha Suebsin and Nathasit Gerdsri (2009) address the issues that
impact technology adoption within an organization Several factors influencing
technology adoption process are identified from the literature review Case examples of
the adoption of a new management technology Enterprise Resource Planning (ERP) are
presented to illustrate the situations of technology adoption in organizations From the
case examples the factors influencing technology adoption in organizations are
consistent with the factors identified from the literatures The further discussion also
reveals the additional determinants including the clarification of project scope individual
commitment and communication which should be taken into consideration when an
organization adopts a new technology [105]
Maya Daneva (2002) in her paper ldquoUsing Maturity Assessments to Understand the ERP
Requirements Engineering Processrdquo mentions that applying standard requirements
engineering (RE) processes is a major trend in todayrsquos Enterprise Resource Planning
(ERP) software engineering It emerged five years ago with the promise to provide a
mechanism helping ERP project organizations deliver their business requirements timely
and within budget This paper looks in depth at a standard ERP RE process and seeks
35
answers to four questions how well it is defined what are the risks associated with its
application in matureimmature organizations what are the essential practices that
contribute to its success and what are the costs of the process and the quality of the
delivered results The main motivation of this paper is to provide some practical advice
for using assessments to increase project teamsrsquo understanding of the ERP RE process
[26]
Fan JC and Kwoting Fang (2006) ldquoERP Implementation and Information Systems
Success A Test of DeLone and McLeans Modelrdquo present their research that develops
and tests a theoretical extension of DeLone and McLeans model of information system
(IS) success which explains personnel belief that contributes to users utilization of ERP
(enterprise resource planning) systems The extended model is tested using the structural
equation model (SEM) a survey of 202 end-users from ten Taiwanese enterprises that
has implemented Data Systems workflow ERP systems is conducted The theoretical
model proposed in this study provides insight into how the concept of useful perception is
incorporated into DeLone and McLean model and plays a critical mediated role to
influence system usage and its associated satisfaction The implications of these findings
for researchers and practitioners are discussed [32]
In the research findings ldquoManaging ERP Implementation Failure A Project Management
Perspectiverdquo Charlie C Chen Chuck C H Law and Samuel C Yang (2008) stated that
Information Technology (IT) projects are susceptible to changes in the business
environment and the increasing velocity of change in global business is challenging the
management of enterprise systems such as enterprise resource planning (ERP) At the
same time system success depends on the rigor of the project management processes
Scope creep poor risk management inadequate allocation of human resources over time
and vendor management are some common problems associated with the implementation
of an enterprise system These issues pose threats to the success of a large-scale software
project such as ERP This research adopts a case study approach to examine how poor
project management can imperil the implementation of an ERP system Having learned
the lessons from the failure of its first ERP implementation the company in this case
reengineered its project management practices to successfully carry out its second ERP
implementation Many critical project management factors contributed to the failure and
36
success of this companyrsquos ERP system This study explores and identifies critical
elements of project management that contributed to the success of the second ERP
implementation For those organizations adopting ERP the findings provide a roadmap
to follow in order to avoid making critical but often underestimated project management
mistakes [21]
Rafa Kouki Robert Pellerin and Diane Poulin (2008) in An Exploratory Study of ERP
Assimilation in Developing Countries The Case of Three Tunisian Companies assessed
that ERP systems could be considered as the most difficult systems to be assimilated
Very little research however has been realised to investigate the determinants of success
of the ERP assimilation process There has been also a dearth in research about ERP
projects in general and ERP post-implementation and assimilation in particular in
developing countries Using a case study methodology grounded in the diffusion of
innovation theory this study tries to understand the factors that could improve or
challenge the ERP systems assimilation process in three Tunisian companies Our
findings highlighted the importance of several factors such as top management support
strategic alignment IT expertise training communication organizational culture and
coercive pressures [62]
Ian Sommerville (2008) Construction by Configuration Challenges for Software
Engineering Research and Practice observed that past ten years have seen a radical shift
in business application software development Rather than developing software from
scratch using a conventional programming language the majority of commercial
software is now developed through reuse ndash the adaptation and configuration of existing
software systems to meet specific organizational requirements The most widespread
form of reuse is through the use of generic systems such as ERP and COTS systems that
are configured to meet specific organizational requirements In this paper he discussed
the implications of software construction by configuration (CbC) for software
engineering Based on his experience with systems for medical records and university
administration he highlighted some of the issues and problems that can arise in
construction by configuration he discussed problems that arise in CbC projects and
identify a number of challenges for research and practice to improve this approach to
software engineering [104]
37
SV Deshmukh and RR Lakhe (2008) in the research paper ldquoSix Sigma ndash An Innovative
Approach for Waste Reduction A Case Study of an Indian SMErdquo present a case study
aimed at reducing waste at an SME engaged in manufacturing of corrugated boxes The
Define Measure Analyze Improve Control strategy of Six Sigma methodology was
followed to identify probable causes for wastages After studying the system and
implementation of six sigma tools an overall 227 waste reduction was achieved
Individually out of a total seven processes 5 showed waste reduction in excess of 40
This reduction was statistically significant at Plt005 The study confirmed successful
implementation of six sigma to minimize waste generation and in terms saving in
manufacturing costs or increasing the bottom line [29]
While in ldquoERP Implementation Critical Success Factors - The Role and Impact of
Business Process Managementrdquo Yasar F Jarrar Abdullah Al-Mudimigh and Mohamed
Zairi (2000) investigate the role and impact of business process management in
successful ERP implementation The paper starts by defining business process
management ERP and the ERP critical success factors The impact of business process
management on successful ERP implementation is then assessed through looking at the
experiences of several organizations The paper concludes by highlighting best practices
for capitalizing on business process management for successful ERP implementation
[52]
M S Camara L Kermad and A El Mhamedi (2006) in the paper ldquoRisk Prediction in
ERP Projects Classification of Reengineered Business Processesrdquo maintain that
Companies have been implementing ERPs for almost ten years now and more the same
implementation problems continue to occur More and more ERP projectrsquos technological
challenges are accompanied by critical dimensions related to the management of the
transformational effects of these projects on the organization Indeed risk management in
this kind of project is not very structured and misses specific methods In this article they
propose a structured methodology for risk management particularly in the BPR (Business
Process Reengineering) sub-project of ERP implementation The final aim of our work is
to decease appreciably resistance to organizational change which poses the greatest
obstacle to business process reengineering efforts They propose to adapt OSR (Optimal
Set Reduction) a risk management method used in software development for the risk
38
management in ERP implementation They address specially the risk related to the
changes in enterprise processes in the ERP project To achieve this objective they
propose to define business process change metrics starting from business process
complexity metrics that exist in the literature [18]
ldquoExploration and Verification of Factors in the Front-end Stage of the ERP
Implementation Process Evidence from Case Study and Survey Researchrdquo Kun Shi and
Qiang Lu (2009) depict that ERP (Enterprise Resources Planning) is widely used to
improve business performance This paper explores how the factors associated with the
Front-end ERP Implementation Process (FEIP) affect the implementation outcome First
based on literature review a preliminary framework with 12 hypotheses is developed
Then Grounded Theory is applied for a case study to further extract and verify the factors
and sub-factors These factors are finally identified as strategic planning corporate
culture user characteristics organization-process-system maturity external expertise
engagementsupport and project preparation Furthermore the significance and
correlation of all the factors are detected by conducting survey research with SPSS as a
tool for analysis The study shows that the framework is valid and that among six three
factors have strong impact on the ERP implementation result whereas others are less
influential Implication is given and limitation is indicated at the end [63]
Huo Lingyu Liu Bingwu and Li Juntao (2009) in the paper ldquoAn ERP System Selection
Model Based on Fuzzy Grey TOPSIS for SMEsrdquo present a new fuzzy multi-criteria
decision making (FMCDM) approach which integrates the technique for order preference
by the similarity to ideal solution (TOPSIS) grey relation and fuzzy set theory for
enterprise resource planning (ERP) system evaluation and selection in the Small and
Medium-Sized Enterprises (SMEs) In this study the characteristic of the alternative with
respect to the criteria are represented in terms of a linguistic term set and the weight of
the criteria is described by triangular fuzzy numbers respectively According to the grey
theory and fuzzy set theory a closeness coefficient is defined to determine the ranking
order of all alternatives by calculating the grade of grey relation to the fuzzy positive-
ideal solution (FPIS) and fuzzy negative-ideal solution (FNIS) simultaneously Finally
an example is shown to highlight the procedure of the proposed method [48]
39
Gao Juntao Zhang Li Wang Zhiyao (2008) summarized their findings in ldquoDecision
Support for Handling Gaps between ERP functionalities and Organizational Needs A
Goal Reasoning based approachrdquo They found that in the process of selecting
commercial off-the-shelf (COTS) ERP systems it is inevitable to encounter gaps between
ERP software and organizational needs Gaps occur when COTS attributes do not exactly
match organizational needs and they make organizational users and software vendors in
the dilemma whether to adapt as-is business processes or to customize software
packages A decision support method for handling gaps is proposed in this paper Firstly
organizational goal-process models are built as the base for decision making Secondly
the idea of evidence theory is introduced into goal reasoning and a quantified algorithm is
proposed to evaluate the impacts of different business processes on high level goals
which are critical to make decision At last the risk is discussed to rank intervals which
specify the expected utilization of business processes [56]
Yvonne Dittrich and Sebastien Vaucouleur (2009) conducted a research on the topicrdquo
ERP Customization as Software Engineering Knowledge Sharing and Cooperationrdquo and
argue that Enterprise resource planning (ERP) systems must be configured and
customized to fit a specific company The authors discuss cooperation with regard to ERP
systems customization Enterprise resource planning (ERP) vendors provide multiple
configuration possibilities ranging from module selection to master data provision to
steer access rights for different users These configuration possibilities cover anticipated
variability If the customer requires adaptation beyond whatrsquos anticipated the source
code of the product must be adapted Customizations in this articlersquos context are source-
code-based adaptations of software products The size and complexity of customizations
range from simple report generation to developing independent add-ons that support
specific businessesmdashfor example solutions for flight carriers The size and lead time of
such projects can compare to a full-size software development project They present
empirical research on customization practices of ERP systems as an example of software
development based on customization of standard software They compared customization
with other development practices that are based on integrating existing code and results
underlined the need to rethink software engineering and programming methods and tools
[129]
40
In the paper study ldquoSignificance of Software Metrics in ERP Projectsrdquo S Parthasarathy
and N Anbazhagan (2006) narrate that ERP projects are a subclass of software projects
often accompanied by large-scale organizational changes One of the major reasons found
in the literature for the failure of ERP projects is the poor management of software
processes In this paper we propose a Software Metrics Plan (SNP) containing different
software metrics to manage software processes during ERP implementation Two
hypotheses have been formulated and tested using statistical techniques to validate the
SNP The statistical analysis of the collected data from an ERP project supports the two
hypotheses leading to the conclusion that the software metrics are momentous in ERP
projects [84]
Antony Marsh (2000) in the article ldquoThe implementation of Enterprise Resource Planning
systems in small and medium Manufacturing enterprises in south-east Queensland a case
study approachrdquo examines the implementation of ERP systems in smallmedium-sized
enterprises in South East Queensland Australia Nine case studies were conducted to
determine factors for success or failure in the implementations Key success factors
identified included cross-functional team approaches organizational experience of
similar scale IT or organizational change projects and lsquodeeprsquo understanding of the key
issues relating to ERP implementations Failure factors identified included top-down or
consultant driven implementations IT department driven implementations or
implementations where the EFV is seen as a quick technological fix to problems within
the operation of the firm rather than as a strategic investment [78]
Christian Doumlrner Sebastian Draxler Volkmar Pipek and Volker Wulf (2009) through
their study ldquoEnd Users at the Bazaar Designing Next-Generation Enterprise Resource
Planning Systemsrdquo propose that the bazaar metaphor has developed a lasting
popularity in software engineering especially as software architectures have evolved
from monoliths to service orientation Nevertheless the metaphor is limited because it
doesnt consider end users those who develop software for themselves Introducing such
an end user the prosumer to the bazaar not only suggests a changing division of work
in software development but also calls for different functionality and architectural
choices The authors evaluated changing software architectures from an end-user
development (EUD) perspective taking the case of enterprise resource planning (ERP)
41
systems as traditionally monolithically designed systems moving toward service
orientation On the basis of the studys findings which indicated problems with the
systems technical flexibility the authors developed a tool set for fostering EUD
activities Their new architecture for ERP systems enables end users to create their own
solutions [31]
Kenny KF Lee (2000) in ldquoThe Five Disciplines of ERP Software Implementationrdquo has
identified the critical factors in businesses which learn grow and succeed This paper
applies the central concepts of the book its five disciplines to the software business
specifically the management of software implementation Using the learning challenge
posed by the organization-wide implementation of Enterprise Resource Systems (Em) the
paper covers how EM software project leaders may manage themselves their teams
business vision and corporate culture and team members to create a survival machine
which can thrive in the current economic and technological climate [67]
Piet MA Ribbers amp Schoo (2000) in his paper ldquoDesigning Complex Software
Implementation Programsrdquo raises a central question that how one can design of Program
Management contributes to the success of complex software implementations
Incomplete goal specifications lack of communication and underestimation of project
complexity are signs of insufficient program and project management To avoid these
pitfalls he proposes ways that have worked well in recent complex multi-project ERP
implementations (programs) Answering the above question raises the problem of
adequately defining and measuring the level of complexity of an implementation
program A conceptual model was developed which identifies program management
factors that are proposed to have an impact on implementation success Fifteen cases
were studied to find support for the proposed framework [88]
ldquoDetecting Gaps between ERP Software and Organizational Needs A Semantic
Similarity Based Approachrdquo is very relevant and contemporary paper presented by Gao
Juntao and Zhang Li (2008) It depicts that Gap analysis is one of the most important
phases in implementation of enterprise resource planning (ERP) system In this paper an
approach is proposed to automatically detect gaps between software capacities and
organizational needs based on semantic similarity computation The approach takes two
business process models as input and one specifies software capacities and the other
42
describes organizational needs The output of it is a report of gaps As a matter of fact
the differences between application domain and software discipline make semantic
heterogeneity a key problem in gap detection therefore the technologies of semantic
similarity computing are employed to resolve ambiguity issues caused by the use of
synonyms or homonyms In particular the idea of similarity propagation is introduced to
pick out a mapping between corresponding activities and data and Hungarian algorithm
is employed to reduce its time complexity Then the similarity of whole models is
measured according to the minimal total cost of change operations Finally an
experiment is given to evaluate the method [36]
In the research publication ldquoERP System Adoption - Does the Size Matterrdquo Sanna
Laukkanen Sami Sarpola and Petri Hallikainen (2005) investigate the relationship of
enterprise size to the constraints and objectives of ERP systems adoption The survey
data based on the responses of 44 companies indicates that significant differences exist
between small medium-sized and large enterprises in ERP system adoption Specifically
the findings suggest that small companies experience more knowledge constraints than
their larger counterparts in ERP adoption Further while being the most prevalent
objective for ERP adoption in all the company groups business development through
ERP adoption is considered especially important by the medium-sized and large
enterprises Finally the findings of the study suggest that instead of considering small
and medium-sized enterprises as one homogenous group the differences between these
two groups of companies should be acknowledged in the future research [65]
In their paper ldquoModel Based on CSCWrdquo Wedian Liang XuFen Zhenkun Li Rong Xiao
JunFeng Hu (2005) summarise their finding They feel that Software testing is an
important component of the software engineering and an important link that the software
development quality is guaranteed Using the reasonable model for software testing can
reduce the expenses of testing in the developing activity in the course of testing thus cut
down the cost of software development In this paper we put forward a model for
software testing bused on CSCW technology that run through each stages of software
development cycle If can find the mistake in the software as soon as possible has
shorten the time taken for testing in the course of the development of software testing
43
effectively Finally we applied the model to the testing project which develops ERP
system and then receive the ideal result [118]
In their paper ldquoThe Research and Development of IMIS for Small and Medium-sized
Printing Enterpriserdquo Taolin Ma Xiaoming Chen Yansong Sun Xiurong Li (2009)
analyzed the fact that the basic management thought of inventory management
information system (IMIS) was established by analyzing the inventory management
theory of modern enterprise In this system which using the architecture of CS the stores
were classified by ABC management method the inventory control was completed by
setting up the safety stock and the largest stock the analysis and design of IMIS were
finished This IMIS was developed to meet the practical requirements of small and
medium-sized printing enterprise in our country It can not only be used as the important
measure of the informationized construction for small and medium sized printing
enterprise but also used as a subsystem of enterprise ERP system IMIS could improve
enterprise management level realize rapid transformation of enterprise and finally
enhance the competitiveness of enterprise in market economy [106]
Jiangao Deng and Yijie Bian (2008) in the research paper ldquoConstructing a Risk
Management Mechanism Model of ERP Projectrdquo mention that in the process of
information project implementation of manufacturing enterprises there are many risks to
set up a set of risk management mechanism is guaranteed for them to succeed in ERP
implementation Firstly based on the analysis of ERP project implementation of China
the paper introduced the risk management methodology systems and the relative model
which includes three main steps identifying risk evaluating risk and controlling risk
After that on the aspects of decision implementation and application stages of
manufacturing ERP project life cycle the paper discussed risks of each stage and put
forward a two-dimension matrix risk management strategy Then a mechanism model of
ERP project risk management is constructed which shows that information risk control
strategies of the last two stages not only depend on resources of these stages but also
have a diverse relationship with the last stage Finally according to the successful
implementation of an enterprisersquos ERP project the paper carried out an effective case
application analysis of risk management mechanism model The lack of improvement in
usersrsquo ERP skill levels and the shortage in documenting the rationale for business rules
44
and configuration decisions were among the critical issues of the post-implementation
stage Indeed all of their respondents stressed the importance of refreshing the usersrsquo
knowledge about the system [28]
Saumyendu Ghosh (2003) in ldquoGlobal Implementation of ERP Software ndash Critical Success
Factors on Upgrading Technical Infrastructurerdquo discusses that implementing an
Enterprise Resource planning (ERP) software in a global environment executive
sponsors face two key challenges While business processes are to be re-engineered to
align with the ERP software best practices technical architecture and infrastructure needs
to be in place globally as per specifications of the packaged software In the legacy
environment different countries or different business units use different systems based
on local standards supported by local resources In the new ERP world globally all the
countries must conform to same technical infrastructure Technical managers face
multiple critical issues implementing a global solution Most of the ERP software is
developed in technically advanced countries standards are often too high for under
developed or developing countries In an effort to bring the global organization to a
common platform different countries need different levels of upgrades In this paper the
authors review key technical issues faced is a global upgrade process to support a global
ERP implementation and how to resolve those We conclude although technical
infrastructure and business process reengineering both are equally important and each
implementation is unique but following some simple steps it is easy to prioritize each
ones during different phases of the project Also time lines of two sub-projects must
converge after initial phase and must follow a common plan for the project to be
successful Multiple scenarios are described to facilitate the process He concludes
although technical infrastructure and business process reengineering both are equally
important and each implementation is unique but following some simple steps it is easy
to prioritize each ones during different phases of the project Also time lines of two
subprojects must converge after initial phase and must follow a common plan for the
project to be successful Multiple scenarios are described to facilitate the process [38]
Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008) ldquoDevelopment and
Implementation of ERPCRM System Based on Open Source Software to Small and
Medium-sized Enterprise in Chinardquo analysed the fact that E-commerce and the
45
development of modern enterprise management raise a number of challenges in the
process of informatization of small and medium-sized enterprises (SME) in china To
address this they present an approach in which the informatization is enhanced by using
Open Source Software with customized policies We analyses the main
informationization obstacles of SME in china bring forward that the lack of bankroll
talents cost and management etc are the key problems to informationization of SME
Furthermore they have developed a textile foreign trade ERP CRM system based on
Open Source Software for the local textile distributor of china integrating financial
distribution sales and service processes given the implement method of overall planning
step-by-step implementation key breakthrough and efficiency guiding In the end we
compare the typical Open Source Software and traditional commercial software point
out the advantages of informatization based Open Source Software to SME in china and
the development trend of Open Source Software for enterprise application [132]
ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information Systems ndash a
Multi-disciplinary Method for ERP System Requirements Engineeringrdquo by Inka Vilpola
Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that ERP systems are in
most cases off-the-shelf software packages and large by their size and complex by their
structure Small and medium-sized enterprises (SMEs) require flexibility of the ERP
system because of their individual operational processes Therefore it is crucial to select
and implement an ERP system that fits the requirements of the intended target processes
To support the requirements engineering of ERP systems we have developed Customer-
Centered ERP Implementation (C-CEI) method The method introduces a multi-
disciplinary approach to the ERP project and provides in-depth understanding of the
companylsquos processes and context of use Using C-CEI method decreases the risk of
SMEs to select an inappropriate system and improves the system acceptance by the
customer companyrsquos employees In this paper we present the method and illustrate it by
three SME case studies [114]
Saumyendu Ghosh (2000) in ldquoChallenges on a global implementation of ERP softwarerdquo
discusses that some of the unique challenges in ERP implementation are satisfying
multiple countries statutory requirements and reporting to the corporate head quarters
from one installation of the software conflicting interests between different business
46
entities lack of experienced implementators in all the countries and eminent users of
multinational advantages He discusses different aspects of these challenges in detail and
point out that ERP software can provide only one solution for a particular business
process unless workarounds are available from experienced implementation Different
counties adopt different reporting and accounting practices and therefore an ERP
implementation cannot solve all problems that global corporation may have multiple
countries in the scope of the project due to absence of standard global processes across
the organization He concludes that the most important critical success factor of these
international implementations are how quickly these corporations can reengineer existing
business process to adopt best practices of using an ERP system [38]
Dong Cheng Feiyan Deng Hongtao Li (2006) ldquoCritical Factors for Successful
Implementation of ERP in Chinardquo in their study propound a theoretical model for
successful implementation of Enterprise Resource Planning (ERP) under Chinarsquos
environment and the authors analyze the model empirically through structural equation
modeling The authors find that strategically IT planning abilities leadershiprsquos support
and the skills of IT section business processing abilities learning abilities and change
management abilities has a significant positive impact on successful ERP implementation
[22]
Parijat Upadhyay (2008) in his research studies ldquoAn explorative study to identify the
Critical Success Factors for ERP Implementation in Indian small and medium scale
enterprisesrdquo explores the existing literature on ERP implementation issues in context to
small and medium scale enterprises and attempts a compilation of the factors that assume
great significance while implementing ERP in SMErsquos Given the nature and magnitude of
the problems in encountered in implementing an ERP project this study would attempt to
identify the critical success factors(CSFrsquos) for a successful implementation of an ERP
project since it calls for substantial effort on the part of all the stake holders involved to
make the implementation a success [111]
ldquoThe ERP Implementation of SME in Chinardquo Yuanqiang Xia Peter Lok and Song Yang
(2009) presented the fact that ERP implementing for small and middle size enterprise
(SME) is different from the large one Based on the analysis on the character of ERP
marketing and SMEs of China 6 critical success factors are recommended The research
47
suggests that the top management support is most important to ERP implement in SME
of China in which paternalism prevails Database of management and capital are main
obstacles ERP 1 or ERP 2 fits to demand of SME high power project team has
tremendous significance in the situation of absence of IT engineer for SME education
and training is helpful to successfully ERP implementing The results service as better
understanding the ERP implementation of SME in China and gaining the good
performance of ERP implementation [126]
Yan Xu and Chung-Hsing Yeh (2009) in the article ldquoStrategic Management of
Performance Measures for an ERP Implementation Project Teamrdquo present a new
evaluation model for managing performance measures of an enterprise resource planning
(ERP) implementation project team in an organization With the performance measures
classified into four strategic perspectives of the balanced scorecard the evaluation model
enables the goal alignment between the project team and the organization A new
algorithm using the concept of multi-attribute decision making is developed to obtain the
relative importance value for each performance measure for its contribution to the
strategic goals of the organization The higher the importance values of a performance
measure the more important the role it plays in determining the responsibilities of the
corresponding project team player Understanding the importance of the key performance
measures will help an organization well-prepare to launch a project and have the project
being organized in advance A case of an ERP implementation project in an integrated
manufacturing corporation is presented to demonstrate the applicability of the evaluation
model and its effective management of the performance measures [124]
Zhang Yanhong (2009) in his research paper ldquoERP Implementation Process Analysis
Based on the Key Success Factorsrdquo describes that Enterprise Resource Planning (ERP) is
an amalgamation of a companys information systems designed to bind more closely a
variety of company functions including human resources inventories and financials
while simultaneously linking the company to customers and vendors This thesis is based
on the theory of product life cycle and the process of ERP is divided into four phase
planning implementation stabilization and improvement Critical success factors in each
phase are identified by paper research case study and investigation An ERP
implementation process model based on the critical Success factors (CSFs) is proposed in
48
the paper The thesis analyzes the global planning stages and business process rebuilding
in the process of QIHE pharmaceuticals ERP Improvement on management and
financing before and after ERP implementation are contrasted and we come to the
following conclusions (1) The CSFs in the planning phase is comprehensive
investigation and evaluation (2) The CSFs in the implementation phase is effective
project management team (3) The CSFs in the stabilization phase is appropriate
information management system (4) The CSFs in the improvement phase is change on
demand and continue to innovate (5) The CSFs throughout the product life cycle is
business process rebuilding [131]
Van Stijn E and Wensley A (2001) ldquoOrganizational memory and the completeness of
process modeling in ERP systems some concerns methods and directions for future
researchrdquo mentioned that Enterprise resource planning (ERP) systems not only have a
broad functional scope promising to support many different business processes they also
embed many different aspects of the companyrsquos organizational memory Disparities can
exist between those memory contents in the ERP system and related contents in other
memory media such as individualsrsquo memories and the organizational structure and
culture It is our contention that in general these disparities or memory mismatches as
we will refer to them lead to under-performance of ERP systems In this paper they focus
on potential memory mismatches that may arise with respect to the embedding of process
knowledge within ERP packages Packages such as SAP provide a varied and rich
environment for process modeling However they suspect that there are still many
instances where process knowledge is either lost or represented in different ways in
different parts of the organization The overall thrust of the paper is to identify a variety
of concerns intriguing questions and avenues for future research [112]
Eric Kimberling (2008) in his article ldquo The Role of Lean Six Sigma in ERPrdquo insisted
that there are a number of things to consider when considering a new ERP system like six
sigma lean manufacturing or other business transformation projects that has the capacity
to measure reducing waste managing change well continuous improvement etc [133]
William H Gaw (2010) ldquoEight Basics of Lean Six Sigma for Manufacturing Firmsrdquo In
the efforts to draw closer to customers many manufacturers have lost focus on what
should be a companyrsquos primary success factor ndash profitable growth In todayrsquos competitive
49
manufacturing environment it takes more than quick fixes outsourcing and downsizing
for companies to consistently achieve their growth and profit objectives While these
options may yield temporary financial relief they will not lead the way to long-term
growth and profitability For companies to grow and consistently exceed bottom line
expectations they need to get lean And to get lean they should master eight basics of
Lean Six Sigma in the form of information integrity performance measurement
sequential production point-of-use logistic cycle time management production linearity
and resource planning and customer satisfaction [134]
Brehm L and Markus M L (2000) in The Divided Software Life Cycle of ERP
Packages mentioned that traditional information system life cycle (SLC) focuses on the
activities performed by company developing implementing and maintaining software for
its own internal use Enterprise resource planning (ERP) software packages change the
SLC in several important ways This paper presents an extension of the SLC model for
ERP packages The lsquodivided software life cyclersquo (DSLC) model features an equal
emphasis on the activities performed by the ERP adopting company and the ERP vendor
[15]
Alavi M and Carlson P (1992) A Review of MIS research and disciplinary
development The perceived status of journals in which MIS research is published is an
important issue to academics The number of IS-related journals has increased through
the years yet it is not obvious which are the ldquoleadingrdquo journals or what criteria should be
used to determine this This article addresses these issues by (1) evaluating and
analyzing previous studies in which MIS related journals have been ranked (2)
determining top-ranked journals and placing them into two levels or tiers based on
previous studies and (3) establishing a profile through a systematic analysis of the nine
journals in the first tier This study identified 17 highly ranked journals for publication
Nine were placed in the first tier and eight in the second tier In addition to IS-specific
journals publications included management science computer science and business-
oriented journals The individual strategies for improving software productivity are
identified Issues related to software costs and controlling them are examined and
discussed It is pointed out that a good framework of techniques exists for controlling
software budgets schedules and work completed but that a great deal of further progress
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 22
33
whereas it can be difficult and time-consuming to do root-cause analyses it is relatively
simple to identify problem owners In this case the senior management without IT
backgrounds turned around a failing project by reorganizing the team structure according
to process areas so that issues in each process area had one problem owner We
summarize the managementrsquos actions into a troubleshooting framework and in addition
suggest three actions for rescuing troubled projects keep the project manager but narrow
down the managerrsquos scope of responsibility to one or two process areas assign the right
people to be responsible for other process areas and have the General Manager chair the
ERP meetings [60]
In the PICMET 2006 Proceedings on ldquoOptimizing the Change Management of Enterprise
Resource Planning Systems Implementationsrdquo Onur Kerimoglu and Nuri BaUogluI
(2006) maintain that although Enterprise Resource Planning (ERP) systems are being
used widely all around the world they also carry out many problems as well as their
benefits These systems are well known for enhancing cross functional efficiency and
effectiveness through the integration of all information flowing throughout an
organization However during different project life cycle stages of ERP systems this
integration may not be provided because of the formulation of incompatibilities which
are greater than the optimum level among different parties like ERP system processes of
the organization and system users Within this study existing incompatibilities between
these parties are modeled respectively In common the model propose that the ERP
product mostly matching with the processes of the organization should be selected
processes of the organization should be changed for being compatible with the ERP
system and system users should be educated new qualified people should be hired etc
for making the system and processes more familiar to people Here the point is that all of
these are done for keeping incompatibilities between the ERP system processes and
people at minimum level because this minimalism will avoid optimization and utilization
problems This study not only handles problems of ERP from a newer perspective but
also provides insight to managers about managing the change and utilizing their resources
efficiently for adopting the ERP software across the organization [59]
Capaldo Guido and Rippa Pierluigi (2008) in ldquoA methodological proposal to assess the
feasibility of ERP Systems Implementation Strategiesrdquo stated that Continuous failures in
34
ERP systems implementation project are today the main challenge in the feasibility of
integrated information systems Failure can be determined by different factors both from
technological side and organizational side if not well managed In this paper we propose
a methodological approach based on technochange management in order to assess the
feasibility of ERP implementation strategy and reduce the risk of failure in terms of
project metrics and early operational metrics A case study in a big Italian
Telecommunication Firm will be presented [19]
ldquoCase Study of PLIVA Pharmaceuticals Inc - Aligning ERP System Implementation
with Business Process Changerdquo is very relevant and contemporary paper presented by
Vesna Bosilj Vuksic and Mario Spremic (2004) The main objective of this paper is to
present the impacts of information technology (IT) and enterprise resource planning
(ERP) systems in business process renovation projects A case study of business process
reengineering project and the implementation of the SAP software solution in PLIVA
(PLIVA pharmaceuticals Inc) are presented [116]
In ldquoKey Factors Driving the Success of Technology Adoption Case Examples of ERP
Adoptionrdquo Chonyacha Suebsin and Nathasit Gerdsri (2009) address the issues that
impact technology adoption within an organization Several factors influencing
technology adoption process are identified from the literature review Case examples of
the adoption of a new management technology Enterprise Resource Planning (ERP) are
presented to illustrate the situations of technology adoption in organizations From the
case examples the factors influencing technology adoption in organizations are
consistent with the factors identified from the literatures The further discussion also
reveals the additional determinants including the clarification of project scope individual
commitment and communication which should be taken into consideration when an
organization adopts a new technology [105]
Maya Daneva (2002) in her paper ldquoUsing Maturity Assessments to Understand the ERP
Requirements Engineering Processrdquo mentions that applying standard requirements
engineering (RE) processes is a major trend in todayrsquos Enterprise Resource Planning
(ERP) software engineering It emerged five years ago with the promise to provide a
mechanism helping ERP project organizations deliver their business requirements timely
and within budget This paper looks in depth at a standard ERP RE process and seeks
35
answers to four questions how well it is defined what are the risks associated with its
application in matureimmature organizations what are the essential practices that
contribute to its success and what are the costs of the process and the quality of the
delivered results The main motivation of this paper is to provide some practical advice
for using assessments to increase project teamsrsquo understanding of the ERP RE process
[26]
Fan JC and Kwoting Fang (2006) ldquoERP Implementation and Information Systems
Success A Test of DeLone and McLeans Modelrdquo present their research that develops
and tests a theoretical extension of DeLone and McLeans model of information system
(IS) success which explains personnel belief that contributes to users utilization of ERP
(enterprise resource planning) systems The extended model is tested using the structural
equation model (SEM) a survey of 202 end-users from ten Taiwanese enterprises that
has implemented Data Systems workflow ERP systems is conducted The theoretical
model proposed in this study provides insight into how the concept of useful perception is
incorporated into DeLone and McLean model and plays a critical mediated role to
influence system usage and its associated satisfaction The implications of these findings
for researchers and practitioners are discussed [32]
In the research findings ldquoManaging ERP Implementation Failure A Project Management
Perspectiverdquo Charlie C Chen Chuck C H Law and Samuel C Yang (2008) stated that
Information Technology (IT) projects are susceptible to changes in the business
environment and the increasing velocity of change in global business is challenging the
management of enterprise systems such as enterprise resource planning (ERP) At the
same time system success depends on the rigor of the project management processes
Scope creep poor risk management inadequate allocation of human resources over time
and vendor management are some common problems associated with the implementation
of an enterprise system These issues pose threats to the success of a large-scale software
project such as ERP This research adopts a case study approach to examine how poor
project management can imperil the implementation of an ERP system Having learned
the lessons from the failure of its first ERP implementation the company in this case
reengineered its project management practices to successfully carry out its second ERP
implementation Many critical project management factors contributed to the failure and
36
success of this companyrsquos ERP system This study explores and identifies critical
elements of project management that contributed to the success of the second ERP
implementation For those organizations adopting ERP the findings provide a roadmap
to follow in order to avoid making critical but often underestimated project management
mistakes [21]
Rafa Kouki Robert Pellerin and Diane Poulin (2008) in An Exploratory Study of ERP
Assimilation in Developing Countries The Case of Three Tunisian Companies assessed
that ERP systems could be considered as the most difficult systems to be assimilated
Very little research however has been realised to investigate the determinants of success
of the ERP assimilation process There has been also a dearth in research about ERP
projects in general and ERP post-implementation and assimilation in particular in
developing countries Using a case study methodology grounded in the diffusion of
innovation theory this study tries to understand the factors that could improve or
challenge the ERP systems assimilation process in three Tunisian companies Our
findings highlighted the importance of several factors such as top management support
strategic alignment IT expertise training communication organizational culture and
coercive pressures [62]
Ian Sommerville (2008) Construction by Configuration Challenges for Software
Engineering Research and Practice observed that past ten years have seen a radical shift
in business application software development Rather than developing software from
scratch using a conventional programming language the majority of commercial
software is now developed through reuse ndash the adaptation and configuration of existing
software systems to meet specific organizational requirements The most widespread
form of reuse is through the use of generic systems such as ERP and COTS systems that
are configured to meet specific organizational requirements In this paper he discussed
the implications of software construction by configuration (CbC) for software
engineering Based on his experience with systems for medical records and university
administration he highlighted some of the issues and problems that can arise in
construction by configuration he discussed problems that arise in CbC projects and
identify a number of challenges for research and practice to improve this approach to
software engineering [104]
37
SV Deshmukh and RR Lakhe (2008) in the research paper ldquoSix Sigma ndash An Innovative
Approach for Waste Reduction A Case Study of an Indian SMErdquo present a case study
aimed at reducing waste at an SME engaged in manufacturing of corrugated boxes The
Define Measure Analyze Improve Control strategy of Six Sigma methodology was
followed to identify probable causes for wastages After studying the system and
implementation of six sigma tools an overall 227 waste reduction was achieved
Individually out of a total seven processes 5 showed waste reduction in excess of 40
This reduction was statistically significant at Plt005 The study confirmed successful
implementation of six sigma to minimize waste generation and in terms saving in
manufacturing costs or increasing the bottom line [29]
While in ldquoERP Implementation Critical Success Factors - The Role and Impact of
Business Process Managementrdquo Yasar F Jarrar Abdullah Al-Mudimigh and Mohamed
Zairi (2000) investigate the role and impact of business process management in
successful ERP implementation The paper starts by defining business process
management ERP and the ERP critical success factors The impact of business process
management on successful ERP implementation is then assessed through looking at the
experiences of several organizations The paper concludes by highlighting best practices
for capitalizing on business process management for successful ERP implementation
[52]
M S Camara L Kermad and A El Mhamedi (2006) in the paper ldquoRisk Prediction in
ERP Projects Classification of Reengineered Business Processesrdquo maintain that
Companies have been implementing ERPs for almost ten years now and more the same
implementation problems continue to occur More and more ERP projectrsquos technological
challenges are accompanied by critical dimensions related to the management of the
transformational effects of these projects on the organization Indeed risk management in
this kind of project is not very structured and misses specific methods In this article they
propose a structured methodology for risk management particularly in the BPR (Business
Process Reengineering) sub-project of ERP implementation The final aim of our work is
to decease appreciably resistance to organizational change which poses the greatest
obstacle to business process reengineering efforts They propose to adapt OSR (Optimal
Set Reduction) a risk management method used in software development for the risk
38
management in ERP implementation They address specially the risk related to the
changes in enterprise processes in the ERP project To achieve this objective they
propose to define business process change metrics starting from business process
complexity metrics that exist in the literature [18]
ldquoExploration and Verification of Factors in the Front-end Stage of the ERP
Implementation Process Evidence from Case Study and Survey Researchrdquo Kun Shi and
Qiang Lu (2009) depict that ERP (Enterprise Resources Planning) is widely used to
improve business performance This paper explores how the factors associated with the
Front-end ERP Implementation Process (FEIP) affect the implementation outcome First
based on literature review a preliminary framework with 12 hypotheses is developed
Then Grounded Theory is applied for a case study to further extract and verify the factors
and sub-factors These factors are finally identified as strategic planning corporate
culture user characteristics organization-process-system maturity external expertise
engagementsupport and project preparation Furthermore the significance and
correlation of all the factors are detected by conducting survey research with SPSS as a
tool for analysis The study shows that the framework is valid and that among six three
factors have strong impact on the ERP implementation result whereas others are less
influential Implication is given and limitation is indicated at the end [63]
Huo Lingyu Liu Bingwu and Li Juntao (2009) in the paper ldquoAn ERP System Selection
Model Based on Fuzzy Grey TOPSIS for SMEsrdquo present a new fuzzy multi-criteria
decision making (FMCDM) approach which integrates the technique for order preference
by the similarity to ideal solution (TOPSIS) grey relation and fuzzy set theory for
enterprise resource planning (ERP) system evaluation and selection in the Small and
Medium-Sized Enterprises (SMEs) In this study the characteristic of the alternative with
respect to the criteria are represented in terms of a linguistic term set and the weight of
the criteria is described by triangular fuzzy numbers respectively According to the grey
theory and fuzzy set theory a closeness coefficient is defined to determine the ranking
order of all alternatives by calculating the grade of grey relation to the fuzzy positive-
ideal solution (FPIS) and fuzzy negative-ideal solution (FNIS) simultaneously Finally
an example is shown to highlight the procedure of the proposed method [48]
39
Gao Juntao Zhang Li Wang Zhiyao (2008) summarized their findings in ldquoDecision
Support for Handling Gaps between ERP functionalities and Organizational Needs A
Goal Reasoning based approachrdquo They found that in the process of selecting
commercial off-the-shelf (COTS) ERP systems it is inevitable to encounter gaps between
ERP software and organizational needs Gaps occur when COTS attributes do not exactly
match organizational needs and they make organizational users and software vendors in
the dilemma whether to adapt as-is business processes or to customize software
packages A decision support method for handling gaps is proposed in this paper Firstly
organizational goal-process models are built as the base for decision making Secondly
the idea of evidence theory is introduced into goal reasoning and a quantified algorithm is
proposed to evaluate the impacts of different business processes on high level goals
which are critical to make decision At last the risk is discussed to rank intervals which
specify the expected utilization of business processes [56]
Yvonne Dittrich and Sebastien Vaucouleur (2009) conducted a research on the topicrdquo
ERP Customization as Software Engineering Knowledge Sharing and Cooperationrdquo and
argue that Enterprise resource planning (ERP) systems must be configured and
customized to fit a specific company The authors discuss cooperation with regard to ERP
systems customization Enterprise resource planning (ERP) vendors provide multiple
configuration possibilities ranging from module selection to master data provision to
steer access rights for different users These configuration possibilities cover anticipated
variability If the customer requires adaptation beyond whatrsquos anticipated the source
code of the product must be adapted Customizations in this articlersquos context are source-
code-based adaptations of software products The size and complexity of customizations
range from simple report generation to developing independent add-ons that support
specific businessesmdashfor example solutions for flight carriers The size and lead time of
such projects can compare to a full-size software development project They present
empirical research on customization practices of ERP systems as an example of software
development based on customization of standard software They compared customization
with other development practices that are based on integrating existing code and results
underlined the need to rethink software engineering and programming methods and tools
[129]
40
In the paper study ldquoSignificance of Software Metrics in ERP Projectsrdquo S Parthasarathy
and N Anbazhagan (2006) narrate that ERP projects are a subclass of software projects
often accompanied by large-scale organizational changes One of the major reasons found
in the literature for the failure of ERP projects is the poor management of software
processes In this paper we propose a Software Metrics Plan (SNP) containing different
software metrics to manage software processes during ERP implementation Two
hypotheses have been formulated and tested using statistical techniques to validate the
SNP The statistical analysis of the collected data from an ERP project supports the two
hypotheses leading to the conclusion that the software metrics are momentous in ERP
projects [84]
Antony Marsh (2000) in the article ldquoThe implementation of Enterprise Resource Planning
systems in small and medium Manufacturing enterprises in south-east Queensland a case
study approachrdquo examines the implementation of ERP systems in smallmedium-sized
enterprises in South East Queensland Australia Nine case studies were conducted to
determine factors for success or failure in the implementations Key success factors
identified included cross-functional team approaches organizational experience of
similar scale IT or organizational change projects and lsquodeeprsquo understanding of the key
issues relating to ERP implementations Failure factors identified included top-down or
consultant driven implementations IT department driven implementations or
implementations where the EFV is seen as a quick technological fix to problems within
the operation of the firm rather than as a strategic investment [78]
Christian Doumlrner Sebastian Draxler Volkmar Pipek and Volker Wulf (2009) through
their study ldquoEnd Users at the Bazaar Designing Next-Generation Enterprise Resource
Planning Systemsrdquo propose that the bazaar metaphor has developed a lasting
popularity in software engineering especially as software architectures have evolved
from monoliths to service orientation Nevertheless the metaphor is limited because it
doesnt consider end users those who develop software for themselves Introducing such
an end user the prosumer to the bazaar not only suggests a changing division of work
in software development but also calls for different functionality and architectural
choices The authors evaluated changing software architectures from an end-user
development (EUD) perspective taking the case of enterprise resource planning (ERP)
41
systems as traditionally monolithically designed systems moving toward service
orientation On the basis of the studys findings which indicated problems with the
systems technical flexibility the authors developed a tool set for fostering EUD
activities Their new architecture for ERP systems enables end users to create their own
solutions [31]
Kenny KF Lee (2000) in ldquoThe Five Disciplines of ERP Software Implementationrdquo has
identified the critical factors in businesses which learn grow and succeed This paper
applies the central concepts of the book its five disciplines to the software business
specifically the management of software implementation Using the learning challenge
posed by the organization-wide implementation of Enterprise Resource Systems (Em) the
paper covers how EM software project leaders may manage themselves their teams
business vision and corporate culture and team members to create a survival machine
which can thrive in the current economic and technological climate [67]
Piet MA Ribbers amp Schoo (2000) in his paper ldquoDesigning Complex Software
Implementation Programsrdquo raises a central question that how one can design of Program
Management contributes to the success of complex software implementations
Incomplete goal specifications lack of communication and underestimation of project
complexity are signs of insufficient program and project management To avoid these
pitfalls he proposes ways that have worked well in recent complex multi-project ERP
implementations (programs) Answering the above question raises the problem of
adequately defining and measuring the level of complexity of an implementation
program A conceptual model was developed which identifies program management
factors that are proposed to have an impact on implementation success Fifteen cases
were studied to find support for the proposed framework [88]
ldquoDetecting Gaps between ERP Software and Organizational Needs A Semantic
Similarity Based Approachrdquo is very relevant and contemporary paper presented by Gao
Juntao and Zhang Li (2008) It depicts that Gap analysis is one of the most important
phases in implementation of enterprise resource planning (ERP) system In this paper an
approach is proposed to automatically detect gaps between software capacities and
organizational needs based on semantic similarity computation The approach takes two
business process models as input and one specifies software capacities and the other
42
describes organizational needs The output of it is a report of gaps As a matter of fact
the differences between application domain and software discipline make semantic
heterogeneity a key problem in gap detection therefore the technologies of semantic
similarity computing are employed to resolve ambiguity issues caused by the use of
synonyms or homonyms In particular the idea of similarity propagation is introduced to
pick out a mapping between corresponding activities and data and Hungarian algorithm
is employed to reduce its time complexity Then the similarity of whole models is
measured according to the minimal total cost of change operations Finally an
experiment is given to evaluate the method [36]
In the research publication ldquoERP System Adoption - Does the Size Matterrdquo Sanna
Laukkanen Sami Sarpola and Petri Hallikainen (2005) investigate the relationship of
enterprise size to the constraints and objectives of ERP systems adoption The survey
data based on the responses of 44 companies indicates that significant differences exist
between small medium-sized and large enterprises in ERP system adoption Specifically
the findings suggest that small companies experience more knowledge constraints than
their larger counterparts in ERP adoption Further while being the most prevalent
objective for ERP adoption in all the company groups business development through
ERP adoption is considered especially important by the medium-sized and large
enterprises Finally the findings of the study suggest that instead of considering small
and medium-sized enterprises as one homogenous group the differences between these
two groups of companies should be acknowledged in the future research [65]
In their paper ldquoModel Based on CSCWrdquo Wedian Liang XuFen Zhenkun Li Rong Xiao
JunFeng Hu (2005) summarise their finding They feel that Software testing is an
important component of the software engineering and an important link that the software
development quality is guaranteed Using the reasonable model for software testing can
reduce the expenses of testing in the developing activity in the course of testing thus cut
down the cost of software development In this paper we put forward a model for
software testing bused on CSCW technology that run through each stages of software
development cycle If can find the mistake in the software as soon as possible has
shorten the time taken for testing in the course of the development of software testing
43
effectively Finally we applied the model to the testing project which develops ERP
system and then receive the ideal result [118]
In their paper ldquoThe Research and Development of IMIS for Small and Medium-sized
Printing Enterpriserdquo Taolin Ma Xiaoming Chen Yansong Sun Xiurong Li (2009)
analyzed the fact that the basic management thought of inventory management
information system (IMIS) was established by analyzing the inventory management
theory of modern enterprise In this system which using the architecture of CS the stores
were classified by ABC management method the inventory control was completed by
setting up the safety stock and the largest stock the analysis and design of IMIS were
finished This IMIS was developed to meet the practical requirements of small and
medium-sized printing enterprise in our country It can not only be used as the important
measure of the informationized construction for small and medium sized printing
enterprise but also used as a subsystem of enterprise ERP system IMIS could improve
enterprise management level realize rapid transformation of enterprise and finally
enhance the competitiveness of enterprise in market economy [106]
Jiangao Deng and Yijie Bian (2008) in the research paper ldquoConstructing a Risk
Management Mechanism Model of ERP Projectrdquo mention that in the process of
information project implementation of manufacturing enterprises there are many risks to
set up a set of risk management mechanism is guaranteed for them to succeed in ERP
implementation Firstly based on the analysis of ERP project implementation of China
the paper introduced the risk management methodology systems and the relative model
which includes three main steps identifying risk evaluating risk and controlling risk
After that on the aspects of decision implementation and application stages of
manufacturing ERP project life cycle the paper discussed risks of each stage and put
forward a two-dimension matrix risk management strategy Then a mechanism model of
ERP project risk management is constructed which shows that information risk control
strategies of the last two stages not only depend on resources of these stages but also
have a diverse relationship with the last stage Finally according to the successful
implementation of an enterprisersquos ERP project the paper carried out an effective case
application analysis of risk management mechanism model The lack of improvement in
usersrsquo ERP skill levels and the shortage in documenting the rationale for business rules
44
and configuration decisions were among the critical issues of the post-implementation
stage Indeed all of their respondents stressed the importance of refreshing the usersrsquo
knowledge about the system [28]
Saumyendu Ghosh (2003) in ldquoGlobal Implementation of ERP Software ndash Critical Success
Factors on Upgrading Technical Infrastructurerdquo discusses that implementing an
Enterprise Resource planning (ERP) software in a global environment executive
sponsors face two key challenges While business processes are to be re-engineered to
align with the ERP software best practices technical architecture and infrastructure needs
to be in place globally as per specifications of the packaged software In the legacy
environment different countries or different business units use different systems based
on local standards supported by local resources In the new ERP world globally all the
countries must conform to same technical infrastructure Technical managers face
multiple critical issues implementing a global solution Most of the ERP software is
developed in technically advanced countries standards are often too high for under
developed or developing countries In an effort to bring the global organization to a
common platform different countries need different levels of upgrades In this paper the
authors review key technical issues faced is a global upgrade process to support a global
ERP implementation and how to resolve those We conclude although technical
infrastructure and business process reengineering both are equally important and each
implementation is unique but following some simple steps it is easy to prioritize each
ones during different phases of the project Also time lines of two sub-projects must
converge after initial phase and must follow a common plan for the project to be
successful Multiple scenarios are described to facilitate the process He concludes
although technical infrastructure and business process reengineering both are equally
important and each implementation is unique but following some simple steps it is easy
to prioritize each ones during different phases of the project Also time lines of two
subprojects must converge after initial phase and must follow a common plan for the
project to be successful Multiple scenarios are described to facilitate the process [38]
Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008) ldquoDevelopment and
Implementation of ERPCRM System Based on Open Source Software to Small and
Medium-sized Enterprise in Chinardquo analysed the fact that E-commerce and the
45
development of modern enterprise management raise a number of challenges in the
process of informatization of small and medium-sized enterprises (SME) in china To
address this they present an approach in which the informatization is enhanced by using
Open Source Software with customized policies We analyses the main
informationization obstacles of SME in china bring forward that the lack of bankroll
talents cost and management etc are the key problems to informationization of SME
Furthermore they have developed a textile foreign trade ERP CRM system based on
Open Source Software for the local textile distributor of china integrating financial
distribution sales and service processes given the implement method of overall planning
step-by-step implementation key breakthrough and efficiency guiding In the end we
compare the typical Open Source Software and traditional commercial software point
out the advantages of informatization based Open Source Software to SME in china and
the development trend of Open Source Software for enterprise application [132]
ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information Systems ndash a
Multi-disciplinary Method for ERP System Requirements Engineeringrdquo by Inka Vilpola
Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that ERP systems are in
most cases off-the-shelf software packages and large by their size and complex by their
structure Small and medium-sized enterprises (SMEs) require flexibility of the ERP
system because of their individual operational processes Therefore it is crucial to select
and implement an ERP system that fits the requirements of the intended target processes
To support the requirements engineering of ERP systems we have developed Customer-
Centered ERP Implementation (C-CEI) method The method introduces a multi-
disciplinary approach to the ERP project and provides in-depth understanding of the
companylsquos processes and context of use Using C-CEI method decreases the risk of
SMEs to select an inappropriate system and improves the system acceptance by the
customer companyrsquos employees In this paper we present the method and illustrate it by
three SME case studies [114]
Saumyendu Ghosh (2000) in ldquoChallenges on a global implementation of ERP softwarerdquo
discusses that some of the unique challenges in ERP implementation are satisfying
multiple countries statutory requirements and reporting to the corporate head quarters
from one installation of the software conflicting interests between different business
46
entities lack of experienced implementators in all the countries and eminent users of
multinational advantages He discusses different aspects of these challenges in detail and
point out that ERP software can provide only one solution for a particular business
process unless workarounds are available from experienced implementation Different
counties adopt different reporting and accounting practices and therefore an ERP
implementation cannot solve all problems that global corporation may have multiple
countries in the scope of the project due to absence of standard global processes across
the organization He concludes that the most important critical success factor of these
international implementations are how quickly these corporations can reengineer existing
business process to adopt best practices of using an ERP system [38]
Dong Cheng Feiyan Deng Hongtao Li (2006) ldquoCritical Factors for Successful
Implementation of ERP in Chinardquo in their study propound a theoretical model for
successful implementation of Enterprise Resource Planning (ERP) under Chinarsquos
environment and the authors analyze the model empirically through structural equation
modeling The authors find that strategically IT planning abilities leadershiprsquos support
and the skills of IT section business processing abilities learning abilities and change
management abilities has a significant positive impact on successful ERP implementation
[22]
Parijat Upadhyay (2008) in his research studies ldquoAn explorative study to identify the
Critical Success Factors for ERP Implementation in Indian small and medium scale
enterprisesrdquo explores the existing literature on ERP implementation issues in context to
small and medium scale enterprises and attempts a compilation of the factors that assume
great significance while implementing ERP in SMErsquos Given the nature and magnitude of
the problems in encountered in implementing an ERP project this study would attempt to
identify the critical success factors(CSFrsquos) for a successful implementation of an ERP
project since it calls for substantial effort on the part of all the stake holders involved to
make the implementation a success [111]
ldquoThe ERP Implementation of SME in Chinardquo Yuanqiang Xia Peter Lok and Song Yang
(2009) presented the fact that ERP implementing for small and middle size enterprise
(SME) is different from the large one Based on the analysis on the character of ERP
marketing and SMEs of China 6 critical success factors are recommended The research
47
suggests that the top management support is most important to ERP implement in SME
of China in which paternalism prevails Database of management and capital are main
obstacles ERP 1 or ERP 2 fits to demand of SME high power project team has
tremendous significance in the situation of absence of IT engineer for SME education
and training is helpful to successfully ERP implementing The results service as better
understanding the ERP implementation of SME in China and gaining the good
performance of ERP implementation [126]
Yan Xu and Chung-Hsing Yeh (2009) in the article ldquoStrategic Management of
Performance Measures for an ERP Implementation Project Teamrdquo present a new
evaluation model for managing performance measures of an enterprise resource planning
(ERP) implementation project team in an organization With the performance measures
classified into four strategic perspectives of the balanced scorecard the evaluation model
enables the goal alignment between the project team and the organization A new
algorithm using the concept of multi-attribute decision making is developed to obtain the
relative importance value for each performance measure for its contribution to the
strategic goals of the organization The higher the importance values of a performance
measure the more important the role it plays in determining the responsibilities of the
corresponding project team player Understanding the importance of the key performance
measures will help an organization well-prepare to launch a project and have the project
being organized in advance A case of an ERP implementation project in an integrated
manufacturing corporation is presented to demonstrate the applicability of the evaluation
model and its effective management of the performance measures [124]
Zhang Yanhong (2009) in his research paper ldquoERP Implementation Process Analysis
Based on the Key Success Factorsrdquo describes that Enterprise Resource Planning (ERP) is
an amalgamation of a companys information systems designed to bind more closely a
variety of company functions including human resources inventories and financials
while simultaneously linking the company to customers and vendors This thesis is based
on the theory of product life cycle and the process of ERP is divided into four phase
planning implementation stabilization and improvement Critical success factors in each
phase are identified by paper research case study and investigation An ERP
implementation process model based on the critical Success factors (CSFs) is proposed in
48
the paper The thesis analyzes the global planning stages and business process rebuilding
in the process of QIHE pharmaceuticals ERP Improvement on management and
financing before and after ERP implementation are contrasted and we come to the
following conclusions (1) The CSFs in the planning phase is comprehensive
investigation and evaluation (2) The CSFs in the implementation phase is effective
project management team (3) The CSFs in the stabilization phase is appropriate
information management system (4) The CSFs in the improvement phase is change on
demand and continue to innovate (5) The CSFs throughout the product life cycle is
business process rebuilding [131]
Van Stijn E and Wensley A (2001) ldquoOrganizational memory and the completeness of
process modeling in ERP systems some concerns methods and directions for future
researchrdquo mentioned that Enterprise resource planning (ERP) systems not only have a
broad functional scope promising to support many different business processes they also
embed many different aspects of the companyrsquos organizational memory Disparities can
exist between those memory contents in the ERP system and related contents in other
memory media such as individualsrsquo memories and the organizational structure and
culture It is our contention that in general these disparities or memory mismatches as
we will refer to them lead to under-performance of ERP systems In this paper they focus
on potential memory mismatches that may arise with respect to the embedding of process
knowledge within ERP packages Packages such as SAP provide a varied and rich
environment for process modeling However they suspect that there are still many
instances where process knowledge is either lost or represented in different ways in
different parts of the organization The overall thrust of the paper is to identify a variety
of concerns intriguing questions and avenues for future research [112]
Eric Kimberling (2008) in his article ldquo The Role of Lean Six Sigma in ERPrdquo insisted
that there are a number of things to consider when considering a new ERP system like six
sigma lean manufacturing or other business transformation projects that has the capacity
to measure reducing waste managing change well continuous improvement etc [133]
William H Gaw (2010) ldquoEight Basics of Lean Six Sigma for Manufacturing Firmsrdquo In
the efforts to draw closer to customers many manufacturers have lost focus on what
should be a companyrsquos primary success factor ndash profitable growth In todayrsquos competitive
49
manufacturing environment it takes more than quick fixes outsourcing and downsizing
for companies to consistently achieve their growth and profit objectives While these
options may yield temporary financial relief they will not lead the way to long-term
growth and profitability For companies to grow and consistently exceed bottom line
expectations they need to get lean And to get lean they should master eight basics of
Lean Six Sigma in the form of information integrity performance measurement
sequential production point-of-use logistic cycle time management production linearity
and resource planning and customer satisfaction [134]
Brehm L and Markus M L (2000) in The Divided Software Life Cycle of ERP
Packages mentioned that traditional information system life cycle (SLC) focuses on the
activities performed by company developing implementing and maintaining software for
its own internal use Enterprise resource planning (ERP) software packages change the
SLC in several important ways This paper presents an extension of the SLC model for
ERP packages The lsquodivided software life cyclersquo (DSLC) model features an equal
emphasis on the activities performed by the ERP adopting company and the ERP vendor
[15]
Alavi M and Carlson P (1992) A Review of MIS research and disciplinary
development The perceived status of journals in which MIS research is published is an
important issue to academics The number of IS-related journals has increased through
the years yet it is not obvious which are the ldquoleadingrdquo journals or what criteria should be
used to determine this This article addresses these issues by (1) evaluating and
analyzing previous studies in which MIS related journals have been ranked (2)
determining top-ranked journals and placing them into two levels or tiers based on
previous studies and (3) establishing a profile through a systematic analysis of the nine
journals in the first tier This study identified 17 highly ranked journals for publication
Nine were placed in the first tier and eight in the second tier In addition to IS-specific
journals publications included management science computer science and business-
oriented journals The individual strategies for improving software productivity are
identified Issues related to software costs and controlling them are examined and
discussed It is pointed out that a good framework of techniques exists for controlling
software budgets schedules and work completed but that a great deal of further progress
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 23
34
ERP systems implementation project are today the main challenge in the feasibility of
integrated information systems Failure can be determined by different factors both from
technological side and organizational side if not well managed In this paper we propose
a methodological approach based on technochange management in order to assess the
feasibility of ERP implementation strategy and reduce the risk of failure in terms of
project metrics and early operational metrics A case study in a big Italian
Telecommunication Firm will be presented [19]
ldquoCase Study of PLIVA Pharmaceuticals Inc - Aligning ERP System Implementation
with Business Process Changerdquo is very relevant and contemporary paper presented by
Vesna Bosilj Vuksic and Mario Spremic (2004) The main objective of this paper is to
present the impacts of information technology (IT) and enterprise resource planning
(ERP) systems in business process renovation projects A case study of business process
reengineering project and the implementation of the SAP software solution in PLIVA
(PLIVA pharmaceuticals Inc) are presented [116]
In ldquoKey Factors Driving the Success of Technology Adoption Case Examples of ERP
Adoptionrdquo Chonyacha Suebsin and Nathasit Gerdsri (2009) address the issues that
impact technology adoption within an organization Several factors influencing
technology adoption process are identified from the literature review Case examples of
the adoption of a new management technology Enterprise Resource Planning (ERP) are
presented to illustrate the situations of technology adoption in organizations From the
case examples the factors influencing technology adoption in organizations are
consistent with the factors identified from the literatures The further discussion also
reveals the additional determinants including the clarification of project scope individual
commitment and communication which should be taken into consideration when an
organization adopts a new technology [105]
Maya Daneva (2002) in her paper ldquoUsing Maturity Assessments to Understand the ERP
Requirements Engineering Processrdquo mentions that applying standard requirements
engineering (RE) processes is a major trend in todayrsquos Enterprise Resource Planning
(ERP) software engineering It emerged five years ago with the promise to provide a
mechanism helping ERP project organizations deliver their business requirements timely
and within budget This paper looks in depth at a standard ERP RE process and seeks
35
answers to four questions how well it is defined what are the risks associated with its
application in matureimmature organizations what are the essential practices that
contribute to its success and what are the costs of the process and the quality of the
delivered results The main motivation of this paper is to provide some practical advice
for using assessments to increase project teamsrsquo understanding of the ERP RE process
[26]
Fan JC and Kwoting Fang (2006) ldquoERP Implementation and Information Systems
Success A Test of DeLone and McLeans Modelrdquo present their research that develops
and tests a theoretical extension of DeLone and McLeans model of information system
(IS) success which explains personnel belief that contributes to users utilization of ERP
(enterprise resource planning) systems The extended model is tested using the structural
equation model (SEM) a survey of 202 end-users from ten Taiwanese enterprises that
has implemented Data Systems workflow ERP systems is conducted The theoretical
model proposed in this study provides insight into how the concept of useful perception is
incorporated into DeLone and McLean model and plays a critical mediated role to
influence system usage and its associated satisfaction The implications of these findings
for researchers and practitioners are discussed [32]
In the research findings ldquoManaging ERP Implementation Failure A Project Management
Perspectiverdquo Charlie C Chen Chuck C H Law and Samuel C Yang (2008) stated that
Information Technology (IT) projects are susceptible to changes in the business
environment and the increasing velocity of change in global business is challenging the
management of enterprise systems such as enterprise resource planning (ERP) At the
same time system success depends on the rigor of the project management processes
Scope creep poor risk management inadequate allocation of human resources over time
and vendor management are some common problems associated with the implementation
of an enterprise system These issues pose threats to the success of a large-scale software
project such as ERP This research adopts a case study approach to examine how poor
project management can imperil the implementation of an ERP system Having learned
the lessons from the failure of its first ERP implementation the company in this case
reengineered its project management practices to successfully carry out its second ERP
implementation Many critical project management factors contributed to the failure and
36
success of this companyrsquos ERP system This study explores and identifies critical
elements of project management that contributed to the success of the second ERP
implementation For those organizations adopting ERP the findings provide a roadmap
to follow in order to avoid making critical but often underestimated project management
mistakes [21]
Rafa Kouki Robert Pellerin and Diane Poulin (2008) in An Exploratory Study of ERP
Assimilation in Developing Countries The Case of Three Tunisian Companies assessed
that ERP systems could be considered as the most difficult systems to be assimilated
Very little research however has been realised to investigate the determinants of success
of the ERP assimilation process There has been also a dearth in research about ERP
projects in general and ERP post-implementation and assimilation in particular in
developing countries Using a case study methodology grounded in the diffusion of
innovation theory this study tries to understand the factors that could improve or
challenge the ERP systems assimilation process in three Tunisian companies Our
findings highlighted the importance of several factors such as top management support
strategic alignment IT expertise training communication organizational culture and
coercive pressures [62]
Ian Sommerville (2008) Construction by Configuration Challenges for Software
Engineering Research and Practice observed that past ten years have seen a radical shift
in business application software development Rather than developing software from
scratch using a conventional programming language the majority of commercial
software is now developed through reuse ndash the adaptation and configuration of existing
software systems to meet specific organizational requirements The most widespread
form of reuse is through the use of generic systems such as ERP and COTS systems that
are configured to meet specific organizational requirements In this paper he discussed
the implications of software construction by configuration (CbC) for software
engineering Based on his experience with systems for medical records and university
administration he highlighted some of the issues and problems that can arise in
construction by configuration he discussed problems that arise in CbC projects and
identify a number of challenges for research and practice to improve this approach to
software engineering [104]
37
SV Deshmukh and RR Lakhe (2008) in the research paper ldquoSix Sigma ndash An Innovative
Approach for Waste Reduction A Case Study of an Indian SMErdquo present a case study
aimed at reducing waste at an SME engaged in manufacturing of corrugated boxes The
Define Measure Analyze Improve Control strategy of Six Sigma methodology was
followed to identify probable causes for wastages After studying the system and
implementation of six sigma tools an overall 227 waste reduction was achieved
Individually out of a total seven processes 5 showed waste reduction in excess of 40
This reduction was statistically significant at Plt005 The study confirmed successful
implementation of six sigma to minimize waste generation and in terms saving in
manufacturing costs or increasing the bottom line [29]
While in ldquoERP Implementation Critical Success Factors - The Role and Impact of
Business Process Managementrdquo Yasar F Jarrar Abdullah Al-Mudimigh and Mohamed
Zairi (2000) investigate the role and impact of business process management in
successful ERP implementation The paper starts by defining business process
management ERP and the ERP critical success factors The impact of business process
management on successful ERP implementation is then assessed through looking at the
experiences of several organizations The paper concludes by highlighting best practices
for capitalizing on business process management for successful ERP implementation
[52]
M S Camara L Kermad and A El Mhamedi (2006) in the paper ldquoRisk Prediction in
ERP Projects Classification of Reengineered Business Processesrdquo maintain that
Companies have been implementing ERPs for almost ten years now and more the same
implementation problems continue to occur More and more ERP projectrsquos technological
challenges are accompanied by critical dimensions related to the management of the
transformational effects of these projects on the organization Indeed risk management in
this kind of project is not very structured and misses specific methods In this article they
propose a structured methodology for risk management particularly in the BPR (Business
Process Reengineering) sub-project of ERP implementation The final aim of our work is
to decease appreciably resistance to organizational change which poses the greatest
obstacle to business process reengineering efforts They propose to adapt OSR (Optimal
Set Reduction) a risk management method used in software development for the risk
38
management in ERP implementation They address specially the risk related to the
changes in enterprise processes in the ERP project To achieve this objective they
propose to define business process change metrics starting from business process
complexity metrics that exist in the literature [18]
ldquoExploration and Verification of Factors in the Front-end Stage of the ERP
Implementation Process Evidence from Case Study and Survey Researchrdquo Kun Shi and
Qiang Lu (2009) depict that ERP (Enterprise Resources Planning) is widely used to
improve business performance This paper explores how the factors associated with the
Front-end ERP Implementation Process (FEIP) affect the implementation outcome First
based on literature review a preliminary framework with 12 hypotheses is developed
Then Grounded Theory is applied for a case study to further extract and verify the factors
and sub-factors These factors are finally identified as strategic planning corporate
culture user characteristics organization-process-system maturity external expertise
engagementsupport and project preparation Furthermore the significance and
correlation of all the factors are detected by conducting survey research with SPSS as a
tool for analysis The study shows that the framework is valid and that among six three
factors have strong impact on the ERP implementation result whereas others are less
influential Implication is given and limitation is indicated at the end [63]
Huo Lingyu Liu Bingwu and Li Juntao (2009) in the paper ldquoAn ERP System Selection
Model Based on Fuzzy Grey TOPSIS for SMEsrdquo present a new fuzzy multi-criteria
decision making (FMCDM) approach which integrates the technique for order preference
by the similarity to ideal solution (TOPSIS) grey relation and fuzzy set theory for
enterprise resource planning (ERP) system evaluation and selection in the Small and
Medium-Sized Enterprises (SMEs) In this study the characteristic of the alternative with
respect to the criteria are represented in terms of a linguistic term set and the weight of
the criteria is described by triangular fuzzy numbers respectively According to the grey
theory and fuzzy set theory a closeness coefficient is defined to determine the ranking
order of all alternatives by calculating the grade of grey relation to the fuzzy positive-
ideal solution (FPIS) and fuzzy negative-ideal solution (FNIS) simultaneously Finally
an example is shown to highlight the procedure of the proposed method [48]
39
Gao Juntao Zhang Li Wang Zhiyao (2008) summarized their findings in ldquoDecision
Support for Handling Gaps between ERP functionalities and Organizational Needs A
Goal Reasoning based approachrdquo They found that in the process of selecting
commercial off-the-shelf (COTS) ERP systems it is inevitable to encounter gaps between
ERP software and organizational needs Gaps occur when COTS attributes do not exactly
match organizational needs and they make organizational users and software vendors in
the dilemma whether to adapt as-is business processes or to customize software
packages A decision support method for handling gaps is proposed in this paper Firstly
organizational goal-process models are built as the base for decision making Secondly
the idea of evidence theory is introduced into goal reasoning and a quantified algorithm is
proposed to evaluate the impacts of different business processes on high level goals
which are critical to make decision At last the risk is discussed to rank intervals which
specify the expected utilization of business processes [56]
Yvonne Dittrich and Sebastien Vaucouleur (2009) conducted a research on the topicrdquo
ERP Customization as Software Engineering Knowledge Sharing and Cooperationrdquo and
argue that Enterprise resource planning (ERP) systems must be configured and
customized to fit a specific company The authors discuss cooperation with regard to ERP
systems customization Enterprise resource planning (ERP) vendors provide multiple
configuration possibilities ranging from module selection to master data provision to
steer access rights for different users These configuration possibilities cover anticipated
variability If the customer requires adaptation beyond whatrsquos anticipated the source
code of the product must be adapted Customizations in this articlersquos context are source-
code-based adaptations of software products The size and complexity of customizations
range from simple report generation to developing independent add-ons that support
specific businessesmdashfor example solutions for flight carriers The size and lead time of
such projects can compare to a full-size software development project They present
empirical research on customization practices of ERP systems as an example of software
development based on customization of standard software They compared customization
with other development practices that are based on integrating existing code and results
underlined the need to rethink software engineering and programming methods and tools
[129]
40
In the paper study ldquoSignificance of Software Metrics in ERP Projectsrdquo S Parthasarathy
and N Anbazhagan (2006) narrate that ERP projects are a subclass of software projects
often accompanied by large-scale organizational changes One of the major reasons found
in the literature for the failure of ERP projects is the poor management of software
processes In this paper we propose a Software Metrics Plan (SNP) containing different
software metrics to manage software processes during ERP implementation Two
hypotheses have been formulated and tested using statistical techniques to validate the
SNP The statistical analysis of the collected data from an ERP project supports the two
hypotheses leading to the conclusion that the software metrics are momentous in ERP
projects [84]
Antony Marsh (2000) in the article ldquoThe implementation of Enterprise Resource Planning
systems in small and medium Manufacturing enterprises in south-east Queensland a case
study approachrdquo examines the implementation of ERP systems in smallmedium-sized
enterprises in South East Queensland Australia Nine case studies were conducted to
determine factors for success or failure in the implementations Key success factors
identified included cross-functional team approaches organizational experience of
similar scale IT or organizational change projects and lsquodeeprsquo understanding of the key
issues relating to ERP implementations Failure factors identified included top-down or
consultant driven implementations IT department driven implementations or
implementations where the EFV is seen as a quick technological fix to problems within
the operation of the firm rather than as a strategic investment [78]
Christian Doumlrner Sebastian Draxler Volkmar Pipek and Volker Wulf (2009) through
their study ldquoEnd Users at the Bazaar Designing Next-Generation Enterprise Resource
Planning Systemsrdquo propose that the bazaar metaphor has developed a lasting
popularity in software engineering especially as software architectures have evolved
from monoliths to service orientation Nevertheless the metaphor is limited because it
doesnt consider end users those who develop software for themselves Introducing such
an end user the prosumer to the bazaar not only suggests a changing division of work
in software development but also calls for different functionality and architectural
choices The authors evaluated changing software architectures from an end-user
development (EUD) perspective taking the case of enterprise resource planning (ERP)
41
systems as traditionally monolithically designed systems moving toward service
orientation On the basis of the studys findings which indicated problems with the
systems technical flexibility the authors developed a tool set for fostering EUD
activities Their new architecture for ERP systems enables end users to create their own
solutions [31]
Kenny KF Lee (2000) in ldquoThe Five Disciplines of ERP Software Implementationrdquo has
identified the critical factors in businesses which learn grow and succeed This paper
applies the central concepts of the book its five disciplines to the software business
specifically the management of software implementation Using the learning challenge
posed by the organization-wide implementation of Enterprise Resource Systems (Em) the
paper covers how EM software project leaders may manage themselves their teams
business vision and corporate culture and team members to create a survival machine
which can thrive in the current economic and technological climate [67]
Piet MA Ribbers amp Schoo (2000) in his paper ldquoDesigning Complex Software
Implementation Programsrdquo raises a central question that how one can design of Program
Management contributes to the success of complex software implementations
Incomplete goal specifications lack of communication and underestimation of project
complexity are signs of insufficient program and project management To avoid these
pitfalls he proposes ways that have worked well in recent complex multi-project ERP
implementations (programs) Answering the above question raises the problem of
adequately defining and measuring the level of complexity of an implementation
program A conceptual model was developed which identifies program management
factors that are proposed to have an impact on implementation success Fifteen cases
were studied to find support for the proposed framework [88]
ldquoDetecting Gaps between ERP Software and Organizational Needs A Semantic
Similarity Based Approachrdquo is very relevant and contemporary paper presented by Gao
Juntao and Zhang Li (2008) It depicts that Gap analysis is one of the most important
phases in implementation of enterprise resource planning (ERP) system In this paper an
approach is proposed to automatically detect gaps between software capacities and
organizational needs based on semantic similarity computation The approach takes two
business process models as input and one specifies software capacities and the other
42
describes organizational needs The output of it is a report of gaps As a matter of fact
the differences between application domain and software discipline make semantic
heterogeneity a key problem in gap detection therefore the technologies of semantic
similarity computing are employed to resolve ambiguity issues caused by the use of
synonyms or homonyms In particular the idea of similarity propagation is introduced to
pick out a mapping between corresponding activities and data and Hungarian algorithm
is employed to reduce its time complexity Then the similarity of whole models is
measured according to the minimal total cost of change operations Finally an
experiment is given to evaluate the method [36]
In the research publication ldquoERP System Adoption - Does the Size Matterrdquo Sanna
Laukkanen Sami Sarpola and Petri Hallikainen (2005) investigate the relationship of
enterprise size to the constraints and objectives of ERP systems adoption The survey
data based on the responses of 44 companies indicates that significant differences exist
between small medium-sized and large enterprises in ERP system adoption Specifically
the findings suggest that small companies experience more knowledge constraints than
their larger counterparts in ERP adoption Further while being the most prevalent
objective for ERP adoption in all the company groups business development through
ERP adoption is considered especially important by the medium-sized and large
enterprises Finally the findings of the study suggest that instead of considering small
and medium-sized enterprises as one homogenous group the differences between these
two groups of companies should be acknowledged in the future research [65]
In their paper ldquoModel Based on CSCWrdquo Wedian Liang XuFen Zhenkun Li Rong Xiao
JunFeng Hu (2005) summarise their finding They feel that Software testing is an
important component of the software engineering and an important link that the software
development quality is guaranteed Using the reasonable model for software testing can
reduce the expenses of testing in the developing activity in the course of testing thus cut
down the cost of software development In this paper we put forward a model for
software testing bused on CSCW technology that run through each stages of software
development cycle If can find the mistake in the software as soon as possible has
shorten the time taken for testing in the course of the development of software testing
43
effectively Finally we applied the model to the testing project which develops ERP
system and then receive the ideal result [118]
In their paper ldquoThe Research and Development of IMIS for Small and Medium-sized
Printing Enterpriserdquo Taolin Ma Xiaoming Chen Yansong Sun Xiurong Li (2009)
analyzed the fact that the basic management thought of inventory management
information system (IMIS) was established by analyzing the inventory management
theory of modern enterprise In this system which using the architecture of CS the stores
were classified by ABC management method the inventory control was completed by
setting up the safety stock and the largest stock the analysis and design of IMIS were
finished This IMIS was developed to meet the practical requirements of small and
medium-sized printing enterprise in our country It can not only be used as the important
measure of the informationized construction for small and medium sized printing
enterprise but also used as a subsystem of enterprise ERP system IMIS could improve
enterprise management level realize rapid transformation of enterprise and finally
enhance the competitiveness of enterprise in market economy [106]
Jiangao Deng and Yijie Bian (2008) in the research paper ldquoConstructing a Risk
Management Mechanism Model of ERP Projectrdquo mention that in the process of
information project implementation of manufacturing enterprises there are many risks to
set up a set of risk management mechanism is guaranteed for them to succeed in ERP
implementation Firstly based on the analysis of ERP project implementation of China
the paper introduced the risk management methodology systems and the relative model
which includes three main steps identifying risk evaluating risk and controlling risk
After that on the aspects of decision implementation and application stages of
manufacturing ERP project life cycle the paper discussed risks of each stage and put
forward a two-dimension matrix risk management strategy Then a mechanism model of
ERP project risk management is constructed which shows that information risk control
strategies of the last two stages not only depend on resources of these stages but also
have a diverse relationship with the last stage Finally according to the successful
implementation of an enterprisersquos ERP project the paper carried out an effective case
application analysis of risk management mechanism model The lack of improvement in
usersrsquo ERP skill levels and the shortage in documenting the rationale for business rules
44
and configuration decisions were among the critical issues of the post-implementation
stage Indeed all of their respondents stressed the importance of refreshing the usersrsquo
knowledge about the system [28]
Saumyendu Ghosh (2003) in ldquoGlobal Implementation of ERP Software ndash Critical Success
Factors on Upgrading Technical Infrastructurerdquo discusses that implementing an
Enterprise Resource planning (ERP) software in a global environment executive
sponsors face two key challenges While business processes are to be re-engineered to
align with the ERP software best practices technical architecture and infrastructure needs
to be in place globally as per specifications of the packaged software In the legacy
environment different countries or different business units use different systems based
on local standards supported by local resources In the new ERP world globally all the
countries must conform to same technical infrastructure Technical managers face
multiple critical issues implementing a global solution Most of the ERP software is
developed in technically advanced countries standards are often too high for under
developed or developing countries In an effort to bring the global organization to a
common platform different countries need different levels of upgrades In this paper the
authors review key technical issues faced is a global upgrade process to support a global
ERP implementation and how to resolve those We conclude although technical
infrastructure and business process reengineering both are equally important and each
implementation is unique but following some simple steps it is easy to prioritize each
ones during different phases of the project Also time lines of two sub-projects must
converge after initial phase and must follow a common plan for the project to be
successful Multiple scenarios are described to facilitate the process He concludes
although technical infrastructure and business process reengineering both are equally
important and each implementation is unique but following some simple steps it is easy
to prioritize each ones during different phases of the project Also time lines of two
subprojects must converge after initial phase and must follow a common plan for the
project to be successful Multiple scenarios are described to facilitate the process [38]
Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008) ldquoDevelopment and
Implementation of ERPCRM System Based on Open Source Software to Small and
Medium-sized Enterprise in Chinardquo analysed the fact that E-commerce and the
45
development of modern enterprise management raise a number of challenges in the
process of informatization of small and medium-sized enterprises (SME) in china To
address this they present an approach in which the informatization is enhanced by using
Open Source Software with customized policies We analyses the main
informationization obstacles of SME in china bring forward that the lack of bankroll
talents cost and management etc are the key problems to informationization of SME
Furthermore they have developed a textile foreign trade ERP CRM system based on
Open Source Software for the local textile distributor of china integrating financial
distribution sales and service processes given the implement method of overall planning
step-by-step implementation key breakthrough and efficiency guiding In the end we
compare the typical Open Source Software and traditional commercial software point
out the advantages of informatization based Open Source Software to SME in china and
the development trend of Open Source Software for enterprise application [132]
ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information Systems ndash a
Multi-disciplinary Method for ERP System Requirements Engineeringrdquo by Inka Vilpola
Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that ERP systems are in
most cases off-the-shelf software packages and large by their size and complex by their
structure Small and medium-sized enterprises (SMEs) require flexibility of the ERP
system because of their individual operational processes Therefore it is crucial to select
and implement an ERP system that fits the requirements of the intended target processes
To support the requirements engineering of ERP systems we have developed Customer-
Centered ERP Implementation (C-CEI) method The method introduces a multi-
disciplinary approach to the ERP project and provides in-depth understanding of the
companylsquos processes and context of use Using C-CEI method decreases the risk of
SMEs to select an inappropriate system and improves the system acceptance by the
customer companyrsquos employees In this paper we present the method and illustrate it by
three SME case studies [114]
Saumyendu Ghosh (2000) in ldquoChallenges on a global implementation of ERP softwarerdquo
discusses that some of the unique challenges in ERP implementation are satisfying
multiple countries statutory requirements and reporting to the corporate head quarters
from one installation of the software conflicting interests between different business
46
entities lack of experienced implementators in all the countries and eminent users of
multinational advantages He discusses different aspects of these challenges in detail and
point out that ERP software can provide only one solution for a particular business
process unless workarounds are available from experienced implementation Different
counties adopt different reporting and accounting practices and therefore an ERP
implementation cannot solve all problems that global corporation may have multiple
countries in the scope of the project due to absence of standard global processes across
the organization He concludes that the most important critical success factor of these
international implementations are how quickly these corporations can reengineer existing
business process to adopt best practices of using an ERP system [38]
Dong Cheng Feiyan Deng Hongtao Li (2006) ldquoCritical Factors for Successful
Implementation of ERP in Chinardquo in their study propound a theoretical model for
successful implementation of Enterprise Resource Planning (ERP) under Chinarsquos
environment and the authors analyze the model empirically through structural equation
modeling The authors find that strategically IT planning abilities leadershiprsquos support
and the skills of IT section business processing abilities learning abilities and change
management abilities has a significant positive impact on successful ERP implementation
[22]
Parijat Upadhyay (2008) in his research studies ldquoAn explorative study to identify the
Critical Success Factors for ERP Implementation in Indian small and medium scale
enterprisesrdquo explores the existing literature on ERP implementation issues in context to
small and medium scale enterprises and attempts a compilation of the factors that assume
great significance while implementing ERP in SMErsquos Given the nature and magnitude of
the problems in encountered in implementing an ERP project this study would attempt to
identify the critical success factors(CSFrsquos) for a successful implementation of an ERP
project since it calls for substantial effort on the part of all the stake holders involved to
make the implementation a success [111]
ldquoThe ERP Implementation of SME in Chinardquo Yuanqiang Xia Peter Lok and Song Yang
(2009) presented the fact that ERP implementing for small and middle size enterprise
(SME) is different from the large one Based on the analysis on the character of ERP
marketing and SMEs of China 6 critical success factors are recommended The research
47
suggests that the top management support is most important to ERP implement in SME
of China in which paternalism prevails Database of management and capital are main
obstacles ERP 1 or ERP 2 fits to demand of SME high power project team has
tremendous significance in the situation of absence of IT engineer for SME education
and training is helpful to successfully ERP implementing The results service as better
understanding the ERP implementation of SME in China and gaining the good
performance of ERP implementation [126]
Yan Xu and Chung-Hsing Yeh (2009) in the article ldquoStrategic Management of
Performance Measures for an ERP Implementation Project Teamrdquo present a new
evaluation model for managing performance measures of an enterprise resource planning
(ERP) implementation project team in an organization With the performance measures
classified into four strategic perspectives of the balanced scorecard the evaluation model
enables the goal alignment between the project team and the organization A new
algorithm using the concept of multi-attribute decision making is developed to obtain the
relative importance value for each performance measure for its contribution to the
strategic goals of the organization The higher the importance values of a performance
measure the more important the role it plays in determining the responsibilities of the
corresponding project team player Understanding the importance of the key performance
measures will help an organization well-prepare to launch a project and have the project
being organized in advance A case of an ERP implementation project in an integrated
manufacturing corporation is presented to demonstrate the applicability of the evaluation
model and its effective management of the performance measures [124]
Zhang Yanhong (2009) in his research paper ldquoERP Implementation Process Analysis
Based on the Key Success Factorsrdquo describes that Enterprise Resource Planning (ERP) is
an amalgamation of a companys information systems designed to bind more closely a
variety of company functions including human resources inventories and financials
while simultaneously linking the company to customers and vendors This thesis is based
on the theory of product life cycle and the process of ERP is divided into four phase
planning implementation stabilization and improvement Critical success factors in each
phase are identified by paper research case study and investigation An ERP
implementation process model based on the critical Success factors (CSFs) is proposed in
48
the paper The thesis analyzes the global planning stages and business process rebuilding
in the process of QIHE pharmaceuticals ERP Improvement on management and
financing before and after ERP implementation are contrasted and we come to the
following conclusions (1) The CSFs in the planning phase is comprehensive
investigation and evaluation (2) The CSFs in the implementation phase is effective
project management team (3) The CSFs in the stabilization phase is appropriate
information management system (4) The CSFs in the improvement phase is change on
demand and continue to innovate (5) The CSFs throughout the product life cycle is
business process rebuilding [131]
Van Stijn E and Wensley A (2001) ldquoOrganizational memory and the completeness of
process modeling in ERP systems some concerns methods and directions for future
researchrdquo mentioned that Enterprise resource planning (ERP) systems not only have a
broad functional scope promising to support many different business processes they also
embed many different aspects of the companyrsquos organizational memory Disparities can
exist between those memory contents in the ERP system and related contents in other
memory media such as individualsrsquo memories and the organizational structure and
culture It is our contention that in general these disparities or memory mismatches as
we will refer to them lead to under-performance of ERP systems In this paper they focus
on potential memory mismatches that may arise with respect to the embedding of process
knowledge within ERP packages Packages such as SAP provide a varied and rich
environment for process modeling However they suspect that there are still many
instances where process knowledge is either lost or represented in different ways in
different parts of the organization The overall thrust of the paper is to identify a variety
of concerns intriguing questions and avenues for future research [112]
Eric Kimberling (2008) in his article ldquo The Role of Lean Six Sigma in ERPrdquo insisted
that there are a number of things to consider when considering a new ERP system like six
sigma lean manufacturing or other business transformation projects that has the capacity
to measure reducing waste managing change well continuous improvement etc [133]
William H Gaw (2010) ldquoEight Basics of Lean Six Sigma for Manufacturing Firmsrdquo In
the efforts to draw closer to customers many manufacturers have lost focus on what
should be a companyrsquos primary success factor ndash profitable growth In todayrsquos competitive
49
manufacturing environment it takes more than quick fixes outsourcing and downsizing
for companies to consistently achieve their growth and profit objectives While these
options may yield temporary financial relief they will not lead the way to long-term
growth and profitability For companies to grow and consistently exceed bottom line
expectations they need to get lean And to get lean they should master eight basics of
Lean Six Sigma in the form of information integrity performance measurement
sequential production point-of-use logistic cycle time management production linearity
and resource planning and customer satisfaction [134]
Brehm L and Markus M L (2000) in The Divided Software Life Cycle of ERP
Packages mentioned that traditional information system life cycle (SLC) focuses on the
activities performed by company developing implementing and maintaining software for
its own internal use Enterprise resource planning (ERP) software packages change the
SLC in several important ways This paper presents an extension of the SLC model for
ERP packages The lsquodivided software life cyclersquo (DSLC) model features an equal
emphasis on the activities performed by the ERP adopting company and the ERP vendor
[15]
Alavi M and Carlson P (1992) A Review of MIS research and disciplinary
development The perceived status of journals in which MIS research is published is an
important issue to academics The number of IS-related journals has increased through
the years yet it is not obvious which are the ldquoleadingrdquo journals or what criteria should be
used to determine this This article addresses these issues by (1) evaluating and
analyzing previous studies in which MIS related journals have been ranked (2)
determining top-ranked journals and placing them into two levels or tiers based on
previous studies and (3) establishing a profile through a systematic analysis of the nine
journals in the first tier This study identified 17 highly ranked journals for publication
Nine were placed in the first tier and eight in the second tier In addition to IS-specific
journals publications included management science computer science and business-
oriented journals The individual strategies for improving software productivity are
identified Issues related to software costs and controlling them are examined and
discussed It is pointed out that a good framework of techniques exists for controlling
software budgets schedules and work completed but that a great deal of further progress
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 24
35
answers to four questions how well it is defined what are the risks associated with its
application in matureimmature organizations what are the essential practices that
contribute to its success and what are the costs of the process and the quality of the
delivered results The main motivation of this paper is to provide some practical advice
for using assessments to increase project teamsrsquo understanding of the ERP RE process
[26]
Fan JC and Kwoting Fang (2006) ldquoERP Implementation and Information Systems
Success A Test of DeLone and McLeans Modelrdquo present their research that develops
and tests a theoretical extension of DeLone and McLeans model of information system
(IS) success which explains personnel belief that contributes to users utilization of ERP
(enterprise resource planning) systems The extended model is tested using the structural
equation model (SEM) a survey of 202 end-users from ten Taiwanese enterprises that
has implemented Data Systems workflow ERP systems is conducted The theoretical
model proposed in this study provides insight into how the concept of useful perception is
incorporated into DeLone and McLean model and plays a critical mediated role to
influence system usage and its associated satisfaction The implications of these findings
for researchers and practitioners are discussed [32]
In the research findings ldquoManaging ERP Implementation Failure A Project Management
Perspectiverdquo Charlie C Chen Chuck C H Law and Samuel C Yang (2008) stated that
Information Technology (IT) projects are susceptible to changes in the business
environment and the increasing velocity of change in global business is challenging the
management of enterprise systems such as enterprise resource planning (ERP) At the
same time system success depends on the rigor of the project management processes
Scope creep poor risk management inadequate allocation of human resources over time
and vendor management are some common problems associated with the implementation
of an enterprise system These issues pose threats to the success of a large-scale software
project such as ERP This research adopts a case study approach to examine how poor
project management can imperil the implementation of an ERP system Having learned
the lessons from the failure of its first ERP implementation the company in this case
reengineered its project management practices to successfully carry out its second ERP
implementation Many critical project management factors contributed to the failure and
36
success of this companyrsquos ERP system This study explores and identifies critical
elements of project management that contributed to the success of the second ERP
implementation For those organizations adopting ERP the findings provide a roadmap
to follow in order to avoid making critical but often underestimated project management
mistakes [21]
Rafa Kouki Robert Pellerin and Diane Poulin (2008) in An Exploratory Study of ERP
Assimilation in Developing Countries The Case of Three Tunisian Companies assessed
that ERP systems could be considered as the most difficult systems to be assimilated
Very little research however has been realised to investigate the determinants of success
of the ERP assimilation process There has been also a dearth in research about ERP
projects in general and ERP post-implementation and assimilation in particular in
developing countries Using a case study methodology grounded in the diffusion of
innovation theory this study tries to understand the factors that could improve or
challenge the ERP systems assimilation process in three Tunisian companies Our
findings highlighted the importance of several factors such as top management support
strategic alignment IT expertise training communication organizational culture and
coercive pressures [62]
Ian Sommerville (2008) Construction by Configuration Challenges for Software
Engineering Research and Practice observed that past ten years have seen a radical shift
in business application software development Rather than developing software from
scratch using a conventional programming language the majority of commercial
software is now developed through reuse ndash the adaptation and configuration of existing
software systems to meet specific organizational requirements The most widespread
form of reuse is through the use of generic systems such as ERP and COTS systems that
are configured to meet specific organizational requirements In this paper he discussed
the implications of software construction by configuration (CbC) for software
engineering Based on his experience with systems for medical records and university
administration he highlighted some of the issues and problems that can arise in
construction by configuration he discussed problems that arise in CbC projects and
identify a number of challenges for research and practice to improve this approach to
software engineering [104]
37
SV Deshmukh and RR Lakhe (2008) in the research paper ldquoSix Sigma ndash An Innovative
Approach for Waste Reduction A Case Study of an Indian SMErdquo present a case study
aimed at reducing waste at an SME engaged in manufacturing of corrugated boxes The
Define Measure Analyze Improve Control strategy of Six Sigma methodology was
followed to identify probable causes for wastages After studying the system and
implementation of six sigma tools an overall 227 waste reduction was achieved
Individually out of a total seven processes 5 showed waste reduction in excess of 40
This reduction was statistically significant at Plt005 The study confirmed successful
implementation of six sigma to minimize waste generation and in terms saving in
manufacturing costs or increasing the bottom line [29]
While in ldquoERP Implementation Critical Success Factors - The Role and Impact of
Business Process Managementrdquo Yasar F Jarrar Abdullah Al-Mudimigh and Mohamed
Zairi (2000) investigate the role and impact of business process management in
successful ERP implementation The paper starts by defining business process
management ERP and the ERP critical success factors The impact of business process
management on successful ERP implementation is then assessed through looking at the
experiences of several organizations The paper concludes by highlighting best practices
for capitalizing on business process management for successful ERP implementation
[52]
M S Camara L Kermad and A El Mhamedi (2006) in the paper ldquoRisk Prediction in
ERP Projects Classification of Reengineered Business Processesrdquo maintain that
Companies have been implementing ERPs for almost ten years now and more the same
implementation problems continue to occur More and more ERP projectrsquos technological
challenges are accompanied by critical dimensions related to the management of the
transformational effects of these projects on the organization Indeed risk management in
this kind of project is not very structured and misses specific methods In this article they
propose a structured methodology for risk management particularly in the BPR (Business
Process Reengineering) sub-project of ERP implementation The final aim of our work is
to decease appreciably resistance to organizational change which poses the greatest
obstacle to business process reengineering efforts They propose to adapt OSR (Optimal
Set Reduction) a risk management method used in software development for the risk
38
management in ERP implementation They address specially the risk related to the
changes in enterprise processes in the ERP project To achieve this objective they
propose to define business process change metrics starting from business process
complexity metrics that exist in the literature [18]
ldquoExploration and Verification of Factors in the Front-end Stage of the ERP
Implementation Process Evidence from Case Study and Survey Researchrdquo Kun Shi and
Qiang Lu (2009) depict that ERP (Enterprise Resources Planning) is widely used to
improve business performance This paper explores how the factors associated with the
Front-end ERP Implementation Process (FEIP) affect the implementation outcome First
based on literature review a preliminary framework with 12 hypotheses is developed
Then Grounded Theory is applied for a case study to further extract and verify the factors
and sub-factors These factors are finally identified as strategic planning corporate
culture user characteristics organization-process-system maturity external expertise
engagementsupport and project preparation Furthermore the significance and
correlation of all the factors are detected by conducting survey research with SPSS as a
tool for analysis The study shows that the framework is valid and that among six three
factors have strong impact on the ERP implementation result whereas others are less
influential Implication is given and limitation is indicated at the end [63]
Huo Lingyu Liu Bingwu and Li Juntao (2009) in the paper ldquoAn ERP System Selection
Model Based on Fuzzy Grey TOPSIS for SMEsrdquo present a new fuzzy multi-criteria
decision making (FMCDM) approach which integrates the technique for order preference
by the similarity to ideal solution (TOPSIS) grey relation and fuzzy set theory for
enterprise resource planning (ERP) system evaluation and selection in the Small and
Medium-Sized Enterprises (SMEs) In this study the characteristic of the alternative with
respect to the criteria are represented in terms of a linguistic term set and the weight of
the criteria is described by triangular fuzzy numbers respectively According to the grey
theory and fuzzy set theory a closeness coefficient is defined to determine the ranking
order of all alternatives by calculating the grade of grey relation to the fuzzy positive-
ideal solution (FPIS) and fuzzy negative-ideal solution (FNIS) simultaneously Finally
an example is shown to highlight the procedure of the proposed method [48]
39
Gao Juntao Zhang Li Wang Zhiyao (2008) summarized their findings in ldquoDecision
Support for Handling Gaps between ERP functionalities and Organizational Needs A
Goal Reasoning based approachrdquo They found that in the process of selecting
commercial off-the-shelf (COTS) ERP systems it is inevitable to encounter gaps between
ERP software and organizational needs Gaps occur when COTS attributes do not exactly
match organizational needs and they make organizational users and software vendors in
the dilemma whether to adapt as-is business processes or to customize software
packages A decision support method for handling gaps is proposed in this paper Firstly
organizational goal-process models are built as the base for decision making Secondly
the idea of evidence theory is introduced into goal reasoning and a quantified algorithm is
proposed to evaluate the impacts of different business processes on high level goals
which are critical to make decision At last the risk is discussed to rank intervals which
specify the expected utilization of business processes [56]
Yvonne Dittrich and Sebastien Vaucouleur (2009) conducted a research on the topicrdquo
ERP Customization as Software Engineering Knowledge Sharing and Cooperationrdquo and
argue that Enterprise resource planning (ERP) systems must be configured and
customized to fit a specific company The authors discuss cooperation with regard to ERP
systems customization Enterprise resource planning (ERP) vendors provide multiple
configuration possibilities ranging from module selection to master data provision to
steer access rights for different users These configuration possibilities cover anticipated
variability If the customer requires adaptation beyond whatrsquos anticipated the source
code of the product must be adapted Customizations in this articlersquos context are source-
code-based adaptations of software products The size and complexity of customizations
range from simple report generation to developing independent add-ons that support
specific businessesmdashfor example solutions for flight carriers The size and lead time of
such projects can compare to a full-size software development project They present
empirical research on customization practices of ERP systems as an example of software
development based on customization of standard software They compared customization
with other development practices that are based on integrating existing code and results
underlined the need to rethink software engineering and programming methods and tools
[129]
40
In the paper study ldquoSignificance of Software Metrics in ERP Projectsrdquo S Parthasarathy
and N Anbazhagan (2006) narrate that ERP projects are a subclass of software projects
often accompanied by large-scale organizational changes One of the major reasons found
in the literature for the failure of ERP projects is the poor management of software
processes In this paper we propose a Software Metrics Plan (SNP) containing different
software metrics to manage software processes during ERP implementation Two
hypotheses have been formulated and tested using statistical techniques to validate the
SNP The statistical analysis of the collected data from an ERP project supports the two
hypotheses leading to the conclusion that the software metrics are momentous in ERP
projects [84]
Antony Marsh (2000) in the article ldquoThe implementation of Enterprise Resource Planning
systems in small and medium Manufacturing enterprises in south-east Queensland a case
study approachrdquo examines the implementation of ERP systems in smallmedium-sized
enterprises in South East Queensland Australia Nine case studies were conducted to
determine factors for success or failure in the implementations Key success factors
identified included cross-functional team approaches organizational experience of
similar scale IT or organizational change projects and lsquodeeprsquo understanding of the key
issues relating to ERP implementations Failure factors identified included top-down or
consultant driven implementations IT department driven implementations or
implementations where the EFV is seen as a quick technological fix to problems within
the operation of the firm rather than as a strategic investment [78]
Christian Doumlrner Sebastian Draxler Volkmar Pipek and Volker Wulf (2009) through
their study ldquoEnd Users at the Bazaar Designing Next-Generation Enterprise Resource
Planning Systemsrdquo propose that the bazaar metaphor has developed a lasting
popularity in software engineering especially as software architectures have evolved
from monoliths to service orientation Nevertheless the metaphor is limited because it
doesnt consider end users those who develop software for themselves Introducing such
an end user the prosumer to the bazaar not only suggests a changing division of work
in software development but also calls for different functionality and architectural
choices The authors evaluated changing software architectures from an end-user
development (EUD) perspective taking the case of enterprise resource planning (ERP)
41
systems as traditionally monolithically designed systems moving toward service
orientation On the basis of the studys findings which indicated problems with the
systems technical flexibility the authors developed a tool set for fostering EUD
activities Their new architecture for ERP systems enables end users to create their own
solutions [31]
Kenny KF Lee (2000) in ldquoThe Five Disciplines of ERP Software Implementationrdquo has
identified the critical factors in businesses which learn grow and succeed This paper
applies the central concepts of the book its five disciplines to the software business
specifically the management of software implementation Using the learning challenge
posed by the organization-wide implementation of Enterprise Resource Systems (Em) the
paper covers how EM software project leaders may manage themselves their teams
business vision and corporate culture and team members to create a survival machine
which can thrive in the current economic and technological climate [67]
Piet MA Ribbers amp Schoo (2000) in his paper ldquoDesigning Complex Software
Implementation Programsrdquo raises a central question that how one can design of Program
Management contributes to the success of complex software implementations
Incomplete goal specifications lack of communication and underestimation of project
complexity are signs of insufficient program and project management To avoid these
pitfalls he proposes ways that have worked well in recent complex multi-project ERP
implementations (programs) Answering the above question raises the problem of
adequately defining and measuring the level of complexity of an implementation
program A conceptual model was developed which identifies program management
factors that are proposed to have an impact on implementation success Fifteen cases
were studied to find support for the proposed framework [88]
ldquoDetecting Gaps between ERP Software and Organizational Needs A Semantic
Similarity Based Approachrdquo is very relevant and contemporary paper presented by Gao
Juntao and Zhang Li (2008) It depicts that Gap analysis is one of the most important
phases in implementation of enterprise resource planning (ERP) system In this paper an
approach is proposed to automatically detect gaps between software capacities and
organizational needs based on semantic similarity computation The approach takes two
business process models as input and one specifies software capacities and the other
42
describes organizational needs The output of it is a report of gaps As a matter of fact
the differences between application domain and software discipline make semantic
heterogeneity a key problem in gap detection therefore the technologies of semantic
similarity computing are employed to resolve ambiguity issues caused by the use of
synonyms or homonyms In particular the idea of similarity propagation is introduced to
pick out a mapping between corresponding activities and data and Hungarian algorithm
is employed to reduce its time complexity Then the similarity of whole models is
measured according to the minimal total cost of change operations Finally an
experiment is given to evaluate the method [36]
In the research publication ldquoERP System Adoption - Does the Size Matterrdquo Sanna
Laukkanen Sami Sarpola and Petri Hallikainen (2005) investigate the relationship of
enterprise size to the constraints and objectives of ERP systems adoption The survey
data based on the responses of 44 companies indicates that significant differences exist
between small medium-sized and large enterprises in ERP system adoption Specifically
the findings suggest that small companies experience more knowledge constraints than
their larger counterparts in ERP adoption Further while being the most prevalent
objective for ERP adoption in all the company groups business development through
ERP adoption is considered especially important by the medium-sized and large
enterprises Finally the findings of the study suggest that instead of considering small
and medium-sized enterprises as one homogenous group the differences between these
two groups of companies should be acknowledged in the future research [65]
In their paper ldquoModel Based on CSCWrdquo Wedian Liang XuFen Zhenkun Li Rong Xiao
JunFeng Hu (2005) summarise their finding They feel that Software testing is an
important component of the software engineering and an important link that the software
development quality is guaranteed Using the reasonable model for software testing can
reduce the expenses of testing in the developing activity in the course of testing thus cut
down the cost of software development In this paper we put forward a model for
software testing bused on CSCW technology that run through each stages of software
development cycle If can find the mistake in the software as soon as possible has
shorten the time taken for testing in the course of the development of software testing
43
effectively Finally we applied the model to the testing project which develops ERP
system and then receive the ideal result [118]
In their paper ldquoThe Research and Development of IMIS for Small and Medium-sized
Printing Enterpriserdquo Taolin Ma Xiaoming Chen Yansong Sun Xiurong Li (2009)
analyzed the fact that the basic management thought of inventory management
information system (IMIS) was established by analyzing the inventory management
theory of modern enterprise In this system which using the architecture of CS the stores
were classified by ABC management method the inventory control was completed by
setting up the safety stock and the largest stock the analysis and design of IMIS were
finished This IMIS was developed to meet the practical requirements of small and
medium-sized printing enterprise in our country It can not only be used as the important
measure of the informationized construction for small and medium sized printing
enterprise but also used as a subsystem of enterprise ERP system IMIS could improve
enterprise management level realize rapid transformation of enterprise and finally
enhance the competitiveness of enterprise in market economy [106]
Jiangao Deng and Yijie Bian (2008) in the research paper ldquoConstructing a Risk
Management Mechanism Model of ERP Projectrdquo mention that in the process of
information project implementation of manufacturing enterprises there are many risks to
set up a set of risk management mechanism is guaranteed for them to succeed in ERP
implementation Firstly based on the analysis of ERP project implementation of China
the paper introduced the risk management methodology systems and the relative model
which includes three main steps identifying risk evaluating risk and controlling risk
After that on the aspects of decision implementation and application stages of
manufacturing ERP project life cycle the paper discussed risks of each stage and put
forward a two-dimension matrix risk management strategy Then a mechanism model of
ERP project risk management is constructed which shows that information risk control
strategies of the last two stages not only depend on resources of these stages but also
have a diverse relationship with the last stage Finally according to the successful
implementation of an enterprisersquos ERP project the paper carried out an effective case
application analysis of risk management mechanism model The lack of improvement in
usersrsquo ERP skill levels and the shortage in documenting the rationale for business rules
44
and configuration decisions were among the critical issues of the post-implementation
stage Indeed all of their respondents stressed the importance of refreshing the usersrsquo
knowledge about the system [28]
Saumyendu Ghosh (2003) in ldquoGlobal Implementation of ERP Software ndash Critical Success
Factors on Upgrading Technical Infrastructurerdquo discusses that implementing an
Enterprise Resource planning (ERP) software in a global environment executive
sponsors face two key challenges While business processes are to be re-engineered to
align with the ERP software best practices technical architecture and infrastructure needs
to be in place globally as per specifications of the packaged software In the legacy
environment different countries or different business units use different systems based
on local standards supported by local resources In the new ERP world globally all the
countries must conform to same technical infrastructure Technical managers face
multiple critical issues implementing a global solution Most of the ERP software is
developed in technically advanced countries standards are often too high for under
developed or developing countries In an effort to bring the global organization to a
common platform different countries need different levels of upgrades In this paper the
authors review key technical issues faced is a global upgrade process to support a global
ERP implementation and how to resolve those We conclude although technical
infrastructure and business process reengineering both are equally important and each
implementation is unique but following some simple steps it is easy to prioritize each
ones during different phases of the project Also time lines of two sub-projects must
converge after initial phase and must follow a common plan for the project to be
successful Multiple scenarios are described to facilitate the process He concludes
although technical infrastructure and business process reengineering both are equally
important and each implementation is unique but following some simple steps it is easy
to prioritize each ones during different phases of the project Also time lines of two
subprojects must converge after initial phase and must follow a common plan for the
project to be successful Multiple scenarios are described to facilitate the process [38]
Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008) ldquoDevelopment and
Implementation of ERPCRM System Based on Open Source Software to Small and
Medium-sized Enterprise in Chinardquo analysed the fact that E-commerce and the
45
development of modern enterprise management raise a number of challenges in the
process of informatization of small and medium-sized enterprises (SME) in china To
address this they present an approach in which the informatization is enhanced by using
Open Source Software with customized policies We analyses the main
informationization obstacles of SME in china bring forward that the lack of bankroll
talents cost and management etc are the key problems to informationization of SME
Furthermore they have developed a textile foreign trade ERP CRM system based on
Open Source Software for the local textile distributor of china integrating financial
distribution sales and service processes given the implement method of overall planning
step-by-step implementation key breakthrough and efficiency guiding In the end we
compare the typical Open Source Software and traditional commercial software point
out the advantages of informatization based Open Source Software to SME in china and
the development trend of Open Source Software for enterprise application [132]
ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information Systems ndash a
Multi-disciplinary Method for ERP System Requirements Engineeringrdquo by Inka Vilpola
Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that ERP systems are in
most cases off-the-shelf software packages and large by their size and complex by their
structure Small and medium-sized enterprises (SMEs) require flexibility of the ERP
system because of their individual operational processes Therefore it is crucial to select
and implement an ERP system that fits the requirements of the intended target processes
To support the requirements engineering of ERP systems we have developed Customer-
Centered ERP Implementation (C-CEI) method The method introduces a multi-
disciplinary approach to the ERP project and provides in-depth understanding of the
companylsquos processes and context of use Using C-CEI method decreases the risk of
SMEs to select an inappropriate system and improves the system acceptance by the
customer companyrsquos employees In this paper we present the method and illustrate it by
three SME case studies [114]
Saumyendu Ghosh (2000) in ldquoChallenges on a global implementation of ERP softwarerdquo
discusses that some of the unique challenges in ERP implementation are satisfying
multiple countries statutory requirements and reporting to the corporate head quarters
from one installation of the software conflicting interests between different business
46
entities lack of experienced implementators in all the countries and eminent users of
multinational advantages He discusses different aspects of these challenges in detail and
point out that ERP software can provide only one solution for a particular business
process unless workarounds are available from experienced implementation Different
counties adopt different reporting and accounting practices and therefore an ERP
implementation cannot solve all problems that global corporation may have multiple
countries in the scope of the project due to absence of standard global processes across
the organization He concludes that the most important critical success factor of these
international implementations are how quickly these corporations can reengineer existing
business process to adopt best practices of using an ERP system [38]
Dong Cheng Feiyan Deng Hongtao Li (2006) ldquoCritical Factors for Successful
Implementation of ERP in Chinardquo in their study propound a theoretical model for
successful implementation of Enterprise Resource Planning (ERP) under Chinarsquos
environment and the authors analyze the model empirically through structural equation
modeling The authors find that strategically IT planning abilities leadershiprsquos support
and the skills of IT section business processing abilities learning abilities and change
management abilities has a significant positive impact on successful ERP implementation
[22]
Parijat Upadhyay (2008) in his research studies ldquoAn explorative study to identify the
Critical Success Factors for ERP Implementation in Indian small and medium scale
enterprisesrdquo explores the existing literature on ERP implementation issues in context to
small and medium scale enterprises and attempts a compilation of the factors that assume
great significance while implementing ERP in SMErsquos Given the nature and magnitude of
the problems in encountered in implementing an ERP project this study would attempt to
identify the critical success factors(CSFrsquos) for a successful implementation of an ERP
project since it calls for substantial effort on the part of all the stake holders involved to
make the implementation a success [111]
ldquoThe ERP Implementation of SME in Chinardquo Yuanqiang Xia Peter Lok and Song Yang
(2009) presented the fact that ERP implementing for small and middle size enterprise
(SME) is different from the large one Based on the analysis on the character of ERP
marketing and SMEs of China 6 critical success factors are recommended The research
47
suggests that the top management support is most important to ERP implement in SME
of China in which paternalism prevails Database of management and capital are main
obstacles ERP 1 or ERP 2 fits to demand of SME high power project team has
tremendous significance in the situation of absence of IT engineer for SME education
and training is helpful to successfully ERP implementing The results service as better
understanding the ERP implementation of SME in China and gaining the good
performance of ERP implementation [126]
Yan Xu and Chung-Hsing Yeh (2009) in the article ldquoStrategic Management of
Performance Measures for an ERP Implementation Project Teamrdquo present a new
evaluation model for managing performance measures of an enterprise resource planning
(ERP) implementation project team in an organization With the performance measures
classified into four strategic perspectives of the balanced scorecard the evaluation model
enables the goal alignment between the project team and the organization A new
algorithm using the concept of multi-attribute decision making is developed to obtain the
relative importance value for each performance measure for its contribution to the
strategic goals of the organization The higher the importance values of a performance
measure the more important the role it plays in determining the responsibilities of the
corresponding project team player Understanding the importance of the key performance
measures will help an organization well-prepare to launch a project and have the project
being organized in advance A case of an ERP implementation project in an integrated
manufacturing corporation is presented to demonstrate the applicability of the evaluation
model and its effective management of the performance measures [124]
Zhang Yanhong (2009) in his research paper ldquoERP Implementation Process Analysis
Based on the Key Success Factorsrdquo describes that Enterprise Resource Planning (ERP) is
an amalgamation of a companys information systems designed to bind more closely a
variety of company functions including human resources inventories and financials
while simultaneously linking the company to customers and vendors This thesis is based
on the theory of product life cycle and the process of ERP is divided into four phase
planning implementation stabilization and improvement Critical success factors in each
phase are identified by paper research case study and investigation An ERP
implementation process model based on the critical Success factors (CSFs) is proposed in
48
the paper The thesis analyzes the global planning stages and business process rebuilding
in the process of QIHE pharmaceuticals ERP Improvement on management and
financing before and after ERP implementation are contrasted and we come to the
following conclusions (1) The CSFs in the planning phase is comprehensive
investigation and evaluation (2) The CSFs in the implementation phase is effective
project management team (3) The CSFs in the stabilization phase is appropriate
information management system (4) The CSFs in the improvement phase is change on
demand and continue to innovate (5) The CSFs throughout the product life cycle is
business process rebuilding [131]
Van Stijn E and Wensley A (2001) ldquoOrganizational memory and the completeness of
process modeling in ERP systems some concerns methods and directions for future
researchrdquo mentioned that Enterprise resource planning (ERP) systems not only have a
broad functional scope promising to support many different business processes they also
embed many different aspects of the companyrsquos organizational memory Disparities can
exist between those memory contents in the ERP system and related contents in other
memory media such as individualsrsquo memories and the organizational structure and
culture It is our contention that in general these disparities or memory mismatches as
we will refer to them lead to under-performance of ERP systems In this paper they focus
on potential memory mismatches that may arise with respect to the embedding of process
knowledge within ERP packages Packages such as SAP provide a varied and rich
environment for process modeling However they suspect that there are still many
instances where process knowledge is either lost or represented in different ways in
different parts of the organization The overall thrust of the paper is to identify a variety
of concerns intriguing questions and avenues for future research [112]
Eric Kimberling (2008) in his article ldquo The Role of Lean Six Sigma in ERPrdquo insisted
that there are a number of things to consider when considering a new ERP system like six
sigma lean manufacturing or other business transformation projects that has the capacity
to measure reducing waste managing change well continuous improvement etc [133]
William H Gaw (2010) ldquoEight Basics of Lean Six Sigma for Manufacturing Firmsrdquo In
the efforts to draw closer to customers many manufacturers have lost focus on what
should be a companyrsquos primary success factor ndash profitable growth In todayrsquos competitive
49
manufacturing environment it takes more than quick fixes outsourcing and downsizing
for companies to consistently achieve their growth and profit objectives While these
options may yield temporary financial relief they will not lead the way to long-term
growth and profitability For companies to grow and consistently exceed bottom line
expectations they need to get lean And to get lean they should master eight basics of
Lean Six Sigma in the form of information integrity performance measurement
sequential production point-of-use logistic cycle time management production linearity
and resource planning and customer satisfaction [134]
Brehm L and Markus M L (2000) in The Divided Software Life Cycle of ERP
Packages mentioned that traditional information system life cycle (SLC) focuses on the
activities performed by company developing implementing and maintaining software for
its own internal use Enterprise resource planning (ERP) software packages change the
SLC in several important ways This paper presents an extension of the SLC model for
ERP packages The lsquodivided software life cyclersquo (DSLC) model features an equal
emphasis on the activities performed by the ERP adopting company and the ERP vendor
[15]
Alavi M and Carlson P (1992) A Review of MIS research and disciplinary
development The perceived status of journals in which MIS research is published is an
important issue to academics The number of IS-related journals has increased through
the years yet it is not obvious which are the ldquoleadingrdquo journals or what criteria should be
used to determine this This article addresses these issues by (1) evaluating and
analyzing previous studies in which MIS related journals have been ranked (2)
determining top-ranked journals and placing them into two levels or tiers based on
previous studies and (3) establishing a profile through a systematic analysis of the nine
journals in the first tier This study identified 17 highly ranked journals for publication
Nine were placed in the first tier and eight in the second tier In addition to IS-specific
journals publications included management science computer science and business-
oriented journals The individual strategies for improving software productivity are
identified Issues related to software costs and controlling them are examined and
discussed It is pointed out that a good framework of techniques exists for controlling
software budgets schedules and work completed but that a great deal of further progress
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 25
36
success of this companyrsquos ERP system This study explores and identifies critical
elements of project management that contributed to the success of the second ERP
implementation For those organizations adopting ERP the findings provide a roadmap
to follow in order to avoid making critical but often underestimated project management
mistakes [21]
Rafa Kouki Robert Pellerin and Diane Poulin (2008) in An Exploratory Study of ERP
Assimilation in Developing Countries The Case of Three Tunisian Companies assessed
that ERP systems could be considered as the most difficult systems to be assimilated
Very little research however has been realised to investigate the determinants of success
of the ERP assimilation process There has been also a dearth in research about ERP
projects in general and ERP post-implementation and assimilation in particular in
developing countries Using a case study methodology grounded in the diffusion of
innovation theory this study tries to understand the factors that could improve or
challenge the ERP systems assimilation process in three Tunisian companies Our
findings highlighted the importance of several factors such as top management support
strategic alignment IT expertise training communication organizational culture and
coercive pressures [62]
Ian Sommerville (2008) Construction by Configuration Challenges for Software
Engineering Research and Practice observed that past ten years have seen a radical shift
in business application software development Rather than developing software from
scratch using a conventional programming language the majority of commercial
software is now developed through reuse ndash the adaptation and configuration of existing
software systems to meet specific organizational requirements The most widespread
form of reuse is through the use of generic systems such as ERP and COTS systems that
are configured to meet specific organizational requirements In this paper he discussed
the implications of software construction by configuration (CbC) for software
engineering Based on his experience with systems for medical records and university
administration he highlighted some of the issues and problems that can arise in
construction by configuration he discussed problems that arise in CbC projects and
identify a number of challenges for research and practice to improve this approach to
software engineering [104]
37
SV Deshmukh and RR Lakhe (2008) in the research paper ldquoSix Sigma ndash An Innovative
Approach for Waste Reduction A Case Study of an Indian SMErdquo present a case study
aimed at reducing waste at an SME engaged in manufacturing of corrugated boxes The
Define Measure Analyze Improve Control strategy of Six Sigma methodology was
followed to identify probable causes for wastages After studying the system and
implementation of six sigma tools an overall 227 waste reduction was achieved
Individually out of a total seven processes 5 showed waste reduction in excess of 40
This reduction was statistically significant at Plt005 The study confirmed successful
implementation of six sigma to minimize waste generation and in terms saving in
manufacturing costs or increasing the bottom line [29]
While in ldquoERP Implementation Critical Success Factors - The Role and Impact of
Business Process Managementrdquo Yasar F Jarrar Abdullah Al-Mudimigh and Mohamed
Zairi (2000) investigate the role and impact of business process management in
successful ERP implementation The paper starts by defining business process
management ERP and the ERP critical success factors The impact of business process
management on successful ERP implementation is then assessed through looking at the
experiences of several organizations The paper concludes by highlighting best practices
for capitalizing on business process management for successful ERP implementation
[52]
M S Camara L Kermad and A El Mhamedi (2006) in the paper ldquoRisk Prediction in
ERP Projects Classification of Reengineered Business Processesrdquo maintain that
Companies have been implementing ERPs for almost ten years now and more the same
implementation problems continue to occur More and more ERP projectrsquos technological
challenges are accompanied by critical dimensions related to the management of the
transformational effects of these projects on the organization Indeed risk management in
this kind of project is not very structured and misses specific methods In this article they
propose a structured methodology for risk management particularly in the BPR (Business
Process Reengineering) sub-project of ERP implementation The final aim of our work is
to decease appreciably resistance to organizational change which poses the greatest
obstacle to business process reengineering efforts They propose to adapt OSR (Optimal
Set Reduction) a risk management method used in software development for the risk
38
management in ERP implementation They address specially the risk related to the
changes in enterprise processes in the ERP project To achieve this objective they
propose to define business process change metrics starting from business process
complexity metrics that exist in the literature [18]
ldquoExploration and Verification of Factors in the Front-end Stage of the ERP
Implementation Process Evidence from Case Study and Survey Researchrdquo Kun Shi and
Qiang Lu (2009) depict that ERP (Enterprise Resources Planning) is widely used to
improve business performance This paper explores how the factors associated with the
Front-end ERP Implementation Process (FEIP) affect the implementation outcome First
based on literature review a preliminary framework with 12 hypotheses is developed
Then Grounded Theory is applied for a case study to further extract and verify the factors
and sub-factors These factors are finally identified as strategic planning corporate
culture user characteristics organization-process-system maturity external expertise
engagementsupport and project preparation Furthermore the significance and
correlation of all the factors are detected by conducting survey research with SPSS as a
tool for analysis The study shows that the framework is valid and that among six three
factors have strong impact on the ERP implementation result whereas others are less
influential Implication is given and limitation is indicated at the end [63]
Huo Lingyu Liu Bingwu and Li Juntao (2009) in the paper ldquoAn ERP System Selection
Model Based on Fuzzy Grey TOPSIS for SMEsrdquo present a new fuzzy multi-criteria
decision making (FMCDM) approach which integrates the technique for order preference
by the similarity to ideal solution (TOPSIS) grey relation and fuzzy set theory for
enterprise resource planning (ERP) system evaluation and selection in the Small and
Medium-Sized Enterprises (SMEs) In this study the characteristic of the alternative with
respect to the criteria are represented in terms of a linguistic term set and the weight of
the criteria is described by triangular fuzzy numbers respectively According to the grey
theory and fuzzy set theory a closeness coefficient is defined to determine the ranking
order of all alternatives by calculating the grade of grey relation to the fuzzy positive-
ideal solution (FPIS) and fuzzy negative-ideal solution (FNIS) simultaneously Finally
an example is shown to highlight the procedure of the proposed method [48]
39
Gao Juntao Zhang Li Wang Zhiyao (2008) summarized their findings in ldquoDecision
Support for Handling Gaps between ERP functionalities and Organizational Needs A
Goal Reasoning based approachrdquo They found that in the process of selecting
commercial off-the-shelf (COTS) ERP systems it is inevitable to encounter gaps between
ERP software and organizational needs Gaps occur when COTS attributes do not exactly
match organizational needs and they make organizational users and software vendors in
the dilemma whether to adapt as-is business processes or to customize software
packages A decision support method for handling gaps is proposed in this paper Firstly
organizational goal-process models are built as the base for decision making Secondly
the idea of evidence theory is introduced into goal reasoning and a quantified algorithm is
proposed to evaluate the impacts of different business processes on high level goals
which are critical to make decision At last the risk is discussed to rank intervals which
specify the expected utilization of business processes [56]
Yvonne Dittrich and Sebastien Vaucouleur (2009) conducted a research on the topicrdquo
ERP Customization as Software Engineering Knowledge Sharing and Cooperationrdquo and
argue that Enterprise resource planning (ERP) systems must be configured and
customized to fit a specific company The authors discuss cooperation with regard to ERP
systems customization Enterprise resource planning (ERP) vendors provide multiple
configuration possibilities ranging from module selection to master data provision to
steer access rights for different users These configuration possibilities cover anticipated
variability If the customer requires adaptation beyond whatrsquos anticipated the source
code of the product must be adapted Customizations in this articlersquos context are source-
code-based adaptations of software products The size and complexity of customizations
range from simple report generation to developing independent add-ons that support
specific businessesmdashfor example solutions for flight carriers The size and lead time of
such projects can compare to a full-size software development project They present
empirical research on customization practices of ERP systems as an example of software
development based on customization of standard software They compared customization
with other development practices that are based on integrating existing code and results
underlined the need to rethink software engineering and programming methods and tools
[129]
40
In the paper study ldquoSignificance of Software Metrics in ERP Projectsrdquo S Parthasarathy
and N Anbazhagan (2006) narrate that ERP projects are a subclass of software projects
often accompanied by large-scale organizational changes One of the major reasons found
in the literature for the failure of ERP projects is the poor management of software
processes In this paper we propose a Software Metrics Plan (SNP) containing different
software metrics to manage software processes during ERP implementation Two
hypotheses have been formulated and tested using statistical techniques to validate the
SNP The statistical analysis of the collected data from an ERP project supports the two
hypotheses leading to the conclusion that the software metrics are momentous in ERP
projects [84]
Antony Marsh (2000) in the article ldquoThe implementation of Enterprise Resource Planning
systems in small and medium Manufacturing enterprises in south-east Queensland a case
study approachrdquo examines the implementation of ERP systems in smallmedium-sized
enterprises in South East Queensland Australia Nine case studies were conducted to
determine factors for success or failure in the implementations Key success factors
identified included cross-functional team approaches organizational experience of
similar scale IT or organizational change projects and lsquodeeprsquo understanding of the key
issues relating to ERP implementations Failure factors identified included top-down or
consultant driven implementations IT department driven implementations or
implementations where the EFV is seen as a quick technological fix to problems within
the operation of the firm rather than as a strategic investment [78]
Christian Doumlrner Sebastian Draxler Volkmar Pipek and Volker Wulf (2009) through
their study ldquoEnd Users at the Bazaar Designing Next-Generation Enterprise Resource
Planning Systemsrdquo propose that the bazaar metaphor has developed a lasting
popularity in software engineering especially as software architectures have evolved
from monoliths to service orientation Nevertheless the metaphor is limited because it
doesnt consider end users those who develop software for themselves Introducing such
an end user the prosumer to the bazaar not only suggests a changing division of work
in software development but also calls for different functionality and architectural
choices The authors evaluated changing software architectures from an end-user
development (EUD) perspective taking the case of enterprise resource planning (ERP)
41
systems as traditionally monolithically designed systems moving toward service
orientation On the basis of the studys findings which indicated problems with the
systems technical flexibility the authors developed a tool set for fostering EUD
activities Their new architecture for ERP systems enables end users to create their own
solutions [31]
Kenny KF Lee (2000) in ldquoThe Five Disciplines of ERP Software Implementationrdquo has
identified the critical factors in businesses which learn grow and succeed This paper
applies the central concepts of the book its five disciplines to the software business
specifically the management of software implementation Using the learning challenge
posed by the organization-wide implementation of Enterprise Resource Systems (Em) the
paper covers how EM software project leaders may manage themselves their teams
business vision and corporate culture and team members to create a survival machine
which can thrive in the current economic and technological climate [67]
Piet MA Ribbers amp Schoo (2000) in his paper ldquoDesigning Complex Software
Implementation Programsrdquo raises a central question that how one can design of Program
Management contributes to the success of complex software implementations
Incomplete goal specifications lack of communication and underestimation of project
complexity are signs of insufficient program and project management To avoid these
pitfalls he proposes ways that have worked well in recent complex multi-project ERP
implementations (programs) Answering the above question raises the problem of
adequately defining and measuring the level of complexity of an implementation
program A conceptual model was developed which identifies program management
factors that are proposed to have an impact on implementation success Fifteen cases
were studied to find support for the proposed framework [88]
ldquoDetecting Gaps between ERP Software and Organizational Needs A Semantic
Similarity Based Approachrdquo is very relevant and contemporary paper presented by Gao
Juntao and Zhang Li (2008) It depicts that Gap analysis is one of the most important
phases in implementation of enterprise resource planning (ERP) system In this paper an
approach is proposed to automatically detect gaps between software capacities and
organizational needs based on semantic similarity computation The approach takes two
business process models as input and one specifies software capacities and the other
42
describes organizational needs The output of it is a report of gaps As a matter of fact
the differences between application domain and software discipline make semantic
heterogeneity a key problem in gap detection therefore the technologies of semantic
similarity computing are employed to resolve ambiguity issues caused by the use of
synonyms or homonyms In particular the idea of similarity propagation is introduced to
pick out a mapping between corresponding activities and data and Hungarian algorithm
is employed to reduce its time complexity Then the similarity of whole models is
measured according to the minimal total cost of change operations Finally an
experiment is given to evaluate the method [36]
In the research publication ldquoERP System Adoption - Does the Size Matterrdquo Sanna
Laukkanen Sami Sarpola and Petri Hallikainen (2005) investigate the relationship of
enterprise size to the constraints and objectives of ERP systems adoption The survey
data based on the responses of 44 companies indicates that significant differences exist
between small medium-sized and large enterprises in ERP system adoption Specifically
the findings suggest that small companies experience more knowledge constraints than
their larger counterparts in ERP adoption Further while being the most prevalent
objective for ERP adoption in all the company groups business development through
ERP adoption is considered especially important by the medium-sized and large
enterprises Finally the findings of the study suggest that instead of considering small
and medium-sized enterprises as one homogenous group the differences between these
two groups of companies should be acknowledged in the future research [65]
In their paper ldquoModel Based on CSCWrdquo Wedian Liang XuFen Zhenkun Li Rong Xiao
JunFeng Hu (2005) summarise their finding They feel that Software testing is an
important component of the software engineering and an important link that the software
development quality is guaranteed Using the reasonable model for software testing can
reduce the expenses of testing in the developing activity in the course of testing thus cut
down the cost of software development In this paper we put forward a model for
software testing bused on CSCW technology that run through each stages of software
development cycle If can find the mistake in the software as soon as possible has
shorten the time taken for testing in the course of the development of software testing
43
effectively Finally we applied the model to the testing project which develops ERP
system and then receive the ideal result [118]
In their paper ldquoThe Research and Development of IMIS for Small and Medium-sized
Printing Enterpriserdquo Taolin Ma Xiaoming Chen Yansong Sun Xiurong Li (2009)
analyzed the fact that the basic management thought of inventory management
information system (IMIS) was established by analyzing the inventory management
theory of modern enterprise In this system which using the architecture of CS the stores
were classified by ABC management method the inventory control was completed by
setting up the safety stock and the largest stock the analysis and design of IMIS were
finished This IMIS was developed to meet the practical requirements of small and
medium-sized printing enterprise in our country It can not only be used as the important
measure of the informationized construction for small and medium sized printing
enterprise but also used as a subsystem of enterprise ERP system IMIS could improve
enterprise management level realize rapid transformation of enterprise and finally
enhance the competitiveness of enterprise in market economy [106]
Jiangao Deng and Yijie Bian (2008) in the research paper ldquoConstructing a Risk
Management Mechanism Model of ERP Projectrdquo mention that in the process of
information project implementation of manufacturing enterprises there are many risks to
set up a set of risk management mechanism is guaranteed for them to succeed in ERP
implementation Firstly based on the analysis of ERP project implementation of China
the paper introduced the risk management methodology systems and the relative model
which includes three main steps identifying risk evaluating risk and controlling risk
After that on the aspects of decision implementation and application stages of
manufacturing ERP project life cycle the paper discussed risks of each stage and put
forward a two-dimension matrix risk management strategy Then a mechanism model of
ERP project risk management is constructed which shows that information risk control
strategies of the last two stages not only depend on resources of these stages but also
have a diverse relationship with the last stage Finally according to the successful
implementation of an enterprisersquos ERP project the paper carried out an effective case
application analysis of risk management mechanism model The lack of improvement in
usersrsquo ERP skill levels and the shortage in documenting the rationale for business rules
44
and configuration decisions were among the critical issues of the post-implementation
stage Indeed all of their respondents stressed the importance of refreshing the usersrsquo
knowledge about the system [28]
Saumyendu Ghosh (2003) in ldquoGlobal Implementation of ERP Software ndash Critical Success
Factors on Upgrading Technical Infrastructurerdquo discusses that implementing an
Enterprise Resource planning (ERP) software in a global environment executive
sponsors face two key challenges While business processes are to be re-engineered to
align with the ERP software best practices technical architecture and infrastructure needs
to be in place globally as per specifications of the packaged software In the legacy
environment different countries or different business units use different systems based
on local standards supported by local resources In the new ERP world globally all the
countries must conform to same technical infrastructure Technical managers face
multiple critical issues implementing a global solution Most of the ERP software is
developed in technically advanced countries standards are often too high for under
developed or developing countries In an effort to bring the global organization to a
common platform different countries need different levels of upgrades In this paper the
authors review key technical issues faced is a global upgrade process to support a global
ERP implementation and how to resolve those We conclude although technical
infrastructure and business process reengineering both are equally important and each
implementation is unique but following some simple steps it is easy to prioritize each
ones during different phases of the project Also time lines of two sub-projects must
converge after initial phase and must follow a common plan for the project to be
successful Multiple scenarios are described to facilitate the process He concludes
although technical infrastructure and business process reengineering both are equally
important and each implementation is unique but following some simple steps it is easy
to prioritize each ones during different phases of the project Also time lines of two
subprojects must converge after initial phase and must follow a common plan for the
project to be successful Multiple scenarios are described to facilitate the process [38]
Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008) ldquoDevelopment and
Implementation of ERPCRM System Based on Open Source Software to Small and
Medium-sized Enterprise in Chinardquo analysed the fact that E-commerce and the
45
development of modern enterprise management raise a number of challenges in the
process of informatization of small and medium-sized enterprises (SME) in china To
address this they present an approach in which the informatization is enhanced by using
Open Source Software with customized policies We analyses the main
informationization obstacles of SME in china bring forward that the lack of bankroll
talents cost and management etc are the key problems to informationization of SME
Furthermore they have developed a textile foreign trade ERP CRM system based on
Open Source Software for the local textile distributor of china integrating financial
distribution sales and service processes given the implement method of overall planning
step-by-step implementation key breakthrough and efficiency guiding In the end we
compare the typical Open Source Software and traditional commercial software point
out the advantages of informatization based Open Source Software to SME in china and
the development trend of Open Source Software for enterprise application [132]
ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information Systems ndash a
Multi-disciplinary Method for ERP System Requirements Engineeringrdquo by Inka Vilpola
Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that ERP systems are in
most cases off-the-shelf software packages and large by their size and complex by their
structure Small and medium-sized enterprises (SMEs) require flexibility of the ERP
system because of their individual operational processes Therefore it is crucial to select
and implement an ERP system that fits the requirements of the intended target processes
To support the requirements engineering of ERP systems we have developed Customer-
Centered ERP Implementation (C-CEI) method The method introduces a multi-
disciplinary approach to the ERP project and provides in-depth understanding of the
companylsquos processes and context of use Using C-CEI method decreases the risk of
SMEs to select an inappropriate system and improves the system acceptance by the
customer companyrsquos employees In this paper we present the method and illustrate it by
three SME case studies [114]
Saumyendu Ghosh (2000) in ldquoChallenges on a global implementation of ERP softwarerdquo
discusses that some of the unique challenges in ERP implementation are satisfying
multiple countries statutory requirements and reporting to the corporate head quarters
from one installation of the software conflicting interests between different business
46
entities lack of experienced implementators in all the countries and eminent users of
multinational advantages He discusses different aspects of these challenges in detail and
point out that ERP software can provide only one solution for a particular business
process unless workarounds are available from experienced implementation Different
counties adopt different reporting and accounting practices and therefore an ERP
implementation cannot solve all problems that global corporation may have multiple
countries in the scope of the project due to absence of standard global processes across
the organization He concludes that the most important critical success factor of these
international implementations are how quickly these corporations can reengineer existing
business process to adopt best practices of using an ERP system [38]
Dong Cheng Feiyan Deng Hongtao Li (2006) ldquoCritical Factors for Successful
Implementation of ERP in Chinardquo in their study propound a theoretical model for
successful implementation of Enterprise Resource Planning (ERP) under Chinarsquos
environment and the authors analyze the model empirically through structural equation
modeling The authors find that strategically IT planning abilities leadershiprsquos support
and the skills of IT section business processing abilities learning abilities and change
management abilities has a significant positive impact on successful ERP implementation
[22]
Parijat Upadhyay (2008) in his research studies ldquoAn explorative study to identify the
Critical Success Factors for ERP Implementation in Indian small and medium scale
enterprisesrdquo explores the existing literature on ERP implementation issues in context to
small and medium scale enterprises and attempts a compilation of the factors that assume
great significance while implementing ERP in SMErsquos Given the nature and magnitude of
the problems in encountered in implementing an ERP project this study would attempt to
identify the critical success factors(CSFrsquos) for a successful implementation of an ERP
project since it calls for substantial effort on the part of all the stake holders involved to
make the implementation a success [111]
ldquoThe ERP Implementation of SME in Chinardquo Yuanqiang Xia Peter Lok and Song Yang
(2009) presented the fact that ERP implementing for small and middle size enterprise
(SME) is different from the large one Based on the analysis on the character of ERP
marketing and SMEs of China 6 critical success factors are recommended The research
47
suggests that the top management support is most important to ERP implement in SME
of China in which paternalism prevails Database of management and capital are main
obstacles ERP 1 or ERP 2 fits to demand of SME high power project team has
tremendous significance in the situation of absence of IT engineer for SME education
and training is helpful to successfully ERP implementing The results service as better
understanding the ERP implementation of SME in China and gaining the good
performance of ERP implementation [126]
Yan Xu and Chung-Hsing Yeh (2009) in the article ldquoStrategic Management of
Performance Measures for an ERP Implementation Project Teamrdquo present a new
evaluation model for managing performance measures of an enterprise resource planning
(ERP) implementation project team in an organization With the performance measures
classified into four strategic perspectives of the balanced scorecard the evaluation model
enables the goal alignment between the project team and the organization A new
algorithm using the concept of multi-attribute decision making is developed to obtain the
relative importance value for each performance measure for its contribution to the
strategic goals of the organization The higher the importance values of a performance
measure the more important the role it plays in determining the responsibilities of the
corresponding project team player Understanding the importance of the key performance
measures will help an organization well-prepare to launch a project and have the project
being organized in advance A case of an ERP implementation project in an integrated
manufacturing corporation is presented to demonstrate the applicability of the evaluation
model and its effective management of the performance measures [124]
Zhang Yanhong (2009) in his research paper ldquoERP Implementation Process Analysis
Based on the Key Success Factorsrdquo describes that Enterprise Resource Planning (ERP) is
an amalgamation of a companys information systems designed to bind more closely a
variety of company functions including human resources inventories and financials
while simultaneously linking the company to customers and vendors This thesis is based
on the theory of product life cycle and the process of ERP is divided into four phase
planning implementation stabilization and improvement Critical success factors in each
phase are identified by paper research case study and investigation An ERP
implementation process model based on the critical Success factors (CSFs) is proposed in
48
the paper The thesis analyzes the global planning stages and business process rebuilding
in the process of QIHE pharmaceuticals ERP Improvement on management and
financing before and after ERP implementation are contrasted and we come to the
following conclusions (1) The CSFs in the planning phase is comprehensive
investigation and evaluation (2) The CSFs in the implementation phase is effective
project management team (3) The CSFs in the stabilization phase is appropriate
information management system (4) The CSFs in the improvement phase is change on
demand and continue to innovate (5) The CSFs throughout the product life cycle is
business process rebuilding [131]
Van Stijn E and Wensley A (2001) ldquoOrganizational memory and the completeness of
process modeling in ERP systems some concerns methods and directions for future
researchrdquo mentioned that Enterprise resource planning (ERP) systems not only have a
broad functional scope promising to support many different business processes they also
embed many different aspects of the companyrsquos organizational memory Disparities can
exist between those memory contents in the ERP system and related contents in other
memory media such as individualsrsquo memories and the organizational structure and
culture It is our contention that in general these disparities or memory mismatches as
we will refer to them lead to under-performance of ERP systems In this paper they focus
on potential memory mismatches that may arise with respect to the embedding of process
knowledge within ERP packages Packages such as SAP provide a varied and rich
environment for process modeling However they suspect that there are still many
instances where process knowledge is either lost or represented in different ways in
different parts of the organization The overall thrust of the paper is to identify a variety
of concerns intriguing questions and avenues for future research [112]
Eric Kimberling (2008) in his article ldquo The Role of Lean Six Sigma in ERPrdquo insisted
that there are a number of things to consider when considering a new ERP system like six
sigma lean manufacturing or other business transformation projects that has the capacity
to measure reducing waste managing change well continuous improvement etc [133]
William H Gaw (2010) ldquoEight Basics of Lean Six Sigma for Manufacturing Firmsrdquo In
the efforts to draw closer to customers many manufacturers have lost focus on what
should be a companyrsquos primary success factor ndash profitable growth In todayrsquos competitive
49
manufacturing environment it takes more than quick fixes outsourcing and downsizing
for companies to consistently achieve their growth and profit objectives While these
options may yield temporary financial relief they will not lead the way to long-term
growth and profitability For companies to grow and consistently exceed bottom line
expectations they need to get lean And to get lean they should master eight basics of
Lean Six Sigma in the form of information integrity performance measurement
sequential production point-of-use logistic cycle time management production linearity
and resource planning and customer satisfaction [134]
Brehm L and Markus M L (2000) in The Divided Software Life Cycle of ERP
Packages mentioned that traditional information system life cycle (SLC) focuses on the
activities performed by company developing implementing and maintaining software for
its own internal use Enterprise resource planning (ERP) software packages change the
SLC in several important ways This paper presents an extension of the SLC model for
ERP packages The lsquodivided software life cyclersquo (DSLC) model features an equal
emphasis on the activities performed by the ERP adopting company and the ERP vendor
[15]
Alavi M and Carlson P (1992) A Review of MIS research and disciplinary
development The perceived status of journals in which MIS research is published is an
important issue to academics The number of IS-related journals has increased through
the years yet it is not obvious which are the ldquoleadingrdquo journals or what criteria should be
used to determine this This article addresses these issues by (1) evaluating and
analyzing previous studies in which MIS related journals have been ranked (2)
determining top-ranked journals and placing them into two levels or tiers based on
previous studies and (3) establishing a profile through a systematic analysis of the nine
journals in the first tier This study identified 17 highly ranked journals for publication
Nine were placed in the first tier and eight in the second tier In addition to IS-specific
journals publications included management science computer science and business-
oriented journals The individual strategies for improving software productivity are
identified Issues related to software costs and controlling them are examined and
discussed It is pointed out that a good framework of techniques exists for controlling
software budgets schedules and work completed but that a great deal of further progress
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 26
37
SV Deshmukh and RR Lakhe (2008) in the research paper ldquoSix Sigma ndash An Innovative
Approach for Waste Reduction A Case Study of an Indian SMErdquo present a case study
aimed at reducing waste at an SME engaged in manufacturing of corrugated boxes The
Define Measure Analyze Improve Control strategy of Six Sigma methodology was
followed to identify probable causes for wastages After studying the system and
implementation of six sigma tools an overall 227 waste reduction was achieved
Individually out of a total seven processes 5 showed waste reduction in excess of 40
This reduction was statistically significant at Plt005 The study confirmed successful
implementation of six sigma to minimize waste generation and in terms saving in
manufacturing costs or increasing the bottom line [29]
While in ldquoERP Implementation Critical Success Factors - The Role and Impact of
Business Process Managementrdquo Yasar F Jarrar Abdullah Al-Mudimigh and Mohamed
Zairi (2000) investigate the role and impact of business process management in
successful ERP implementation The paper starts by defining business process
management ERP and the ERP critical success factors The impact of business process
management on successful ERP implementation is then assessed through looking at the
experiences of several organizations The paper concludes by highlighting best practices
for capitalizing on business process management for successful ERP implementation
[52]
M S Camara L Kermad and A El Mhamedi (2006) in the paper ldquoRisk Prediction in
ERP Projects Classification of Reengineered Business Processesrdquo maintain that
Companies have been implementing ERPs for almost ten years now and more the same
implementation problems continue to occur More and more ERP projectrsquos technological
challenges are accompanied by critical dimensions related to the management of the
transformational effects of these projects on the organization Indeed risk management in
this kind of project is not very structured and misses specific methods In this article they
propose a structured methodology for risk management particularly in the BPR (Business
Process Reengineering) sub-project of ERP implementation The final aim of our work is
to decease appreciably resistance to organizational change which poses the greatest
obstacle to business process reengineering efforts They propose to adapt OSR (Optimal
Set Reduction) a risk management method used in software development for the risk
38
management in ERP implementation They address specially the risk related to the
changes in enterprise processes in the ERP project To achieve this objective they
propose to define business process change metrics starting from business process
complexity metrics that exist in the literature [18]
ldquoExploration and Verification of Factors in the Front-end Stage of the ERP
Implementation Process Evidence from Case Study and Survey Researchrdquo Kun Shi and
Qiang Lu (2009) depict that ERP (Enterprise Resources Planning) is widely used to
improve business performance This paper explores how the factors associated with the
Front-end ERP Implementation Process (FEIP) affect the implementation outcome First
based on literature review a preliminary framework with 12 hypotheses is developed
Then Grounded Theory is applied for a case study to further extract and verify the factors
and sub-factors These factors are finally identified as strategic planning corporate
culture user characteristics organization-process-system maturity external expertise
engagementsupport and project preparation Furthermore the significance and
correlation of all the factors are detected by conducting survey research with SPSS as a
tool for analysis The study shows that the framework is valid and that among six three
factors have strong impact on the ERP implementation result whereas others are less
influential Implication is given and limitation is indicated at the end [63]
Huo Lingyu Liu Bingwu and Li Juntao (2009) in the paper ldquoAn ERP System Selection
Model Based on Fuzzy Grey TOPSIS for SMEsrdquo present a new fuzzy multi-criteria
decision making (FMCDM) approach which integrates the technique for order preference
by the similarity to ideal solution (TOPSIS) grey relation and fuzzy set theory for
enterprise resource planning (ERP) system evaluation and selection in the Small and
Medium-Sized Enterprises (SMEs) In this study the characteristic of the alternative with
respect to the criteria are represented in terms of a linguistic term set and the weight of
the criteria is described by triangular fuzzy numbers respectively According to the grey
theory and fuzzy set theory a closeness coefficient is defined to determine the ranking
order of all alternatives by calculating the grade of grey relation to the fuzzy positive-
ideal solution (FPIS) and fuzzy negative-ideal solution (FNIS) simultaneously Finally
an example is shown to highlight the procedure of the proposed method [48]
39
Gao Juntao Zhang Li Wang Zhiyao (2008) summarized their findings in ldquoDecision
Support for Handling Gaps between ERP functionalities and Organizational Needs A
Goal Reasoning based approachrdquo They found that in the process of selecting
commercial off-the-shelf (COTS) ERP systems it is inevitable to encounter gaps between
ERP software and organizational needs Gaps occur when COTS attributes do not exactly
match organizational needs and they make organizational users and software vendors in
the dilemma whether to adapt as-is business processes or to customize software
packages A decision support method for handling gaps is proposed in this paper Firstly
organizational goal-process models are built as the base for decision making Secondly
the idea of evidence theory is introduced into goal reasoning and a quantified algorithm is
proposed to evaluate the impacts of different business processes on high level goals
which are critical to make decision At last the risk is discussed to rank intervals which
specify the expected utilization of business processes [56]
Yvonne Dittrich and Sebastien Vaucouleur (2009) conducted a research on the topicrdquo
ERP Customization as Software Engineering Knowledge Sharing and Cooperationrdquo and
argue that Enterprise resource planning (ERP) systems must be configured and
customized to fit a specific company The authors discuss cooperation with regard to ERP
systems customization Enterprise resource planning (ERP) vendors provide multiple
configuration possibilities ranging from module selection to master data provision to
steer access rights for different users These configuration possibilities cover anticipated
variability If the customer requires adaptation beyond whatrsquos anticipated the source
code of the product must be adapted Customizations in this articlersquos context are source-
code-based adaptations of software products The size and complexity of customizations
range from simple report generation to developing independent add-ons that support
specific businessesmdashfor example solutions for flight carriers The size and lead time of
such projects can compare to a full-size software development project They present
empirical research on customization practices of ERP systems as an example of software
development based on customization of standard software They compared customization
with other development practices that are based on integrating existing code and results
underlined the need to rethink software engineering and programming methods and tools
[129]
40
In the paper study ldquoSignificance of Software Metrics in ERP Projectsrdquo S Parthasarathy
and N Anbazhagan (2006) narrate that ERP projects are a subclass of software projects
often accompanied by large-scale organizational changes One of the major reasons found
in the literature for the failure of ERP projects is the poor management of software
processes In this paper we propose a Software Metrics Plan (SNP) containing different
software metrics to manage software processes during ERP implementation Two
hypotheses have been formulated and tested using statistical techniques to validate the
SNP The statistical analysis of the collected data from an ERP project supports the two
hypotheses leading to the conclusion that the software metrics are momentous in ERP
projects [84]
Antony Marsh (2000) in the article ldquoThe implementation of Enterprise Resource Planning
systems in small and medium Manufacturing enterprises in south-east Queensland a case
study approachrdquo examines the implementation of ERP systems in smallmedium-sized
enterprises in South East Queensland Australia Nine case studies were conducted to
determine factors for success or failure in the implementations Key success factors
identified included cross-functional team approaches organizational experience of
similar scale IT or organizational change projects and lsquodeeprsquo understanding of the key
issues relating to ERP implementations Failure factors identified included top-down or
consultant driven implementations IT department driven implementations or
implementations where the EFV is seen as a quick technological fix to problems within
the operation of the firm rather than as a strategic investment [78]
Christian Doumlrner Sebastian Draxler Volkmar Pipek and Volker Wulf (2009) through
their study ldquoEnd Users at the Bazaar Designing Next-Generation Enterprise Resource
Planning Systemsrdquo propose that the bazaar metaphor has developed a lasting
popularity in software engineering especially as software architectures have evolved
from monoliths to service orientation Nevertheless the metaphor is limited because it
doesnt consider end users those who develop software for themselves Introducing such
an end user the prosumer to the bazaar not only suggests a changing division of work
in software development but also calls for different functionality and architectural
choices The authors evaluated changing software architectures from an end-user
development (EUD) perspective taking the case of enterprise resource planning (ERP)
41
systems as traditionally monolithically designed systems moving toward service
orientation On the basis of the studys findings which indicated problems with the
systems technical flexibility the authors developed a tool set for fostering EUD
activities Their new architecture for ERP systems enables end users to create their own
solutions [31]
Kenny KF Lee (2000) in ldquoThe Five Disciplines of ERP Software Implementationrdquo has
identified the critical factors in businesses which learn grow and succeed This paper
applies the central concepts of the book its five disciplines to the software business
specifically the management of software implementation Using the learning challenge
posed by the organization-wide implementation of Enterprise Resource Systems (Em) the
paper covers how EM software project leaders may manage themselves their teams
business vision and corporate culture and team members to create a survival machine
which can thrive in the current economic and technological climate [67]
Piet MA Ribbers amp Schoo (2000) in his paper ldquoDesigning Complex Software
Implementation Programsrdquo raises a central question that how one can design of Program
Management contributes to the success of complex software implementations
Incomplete goal specifications lack of communication and underestimation of project
complexity are signs of insufficient program and project management To avoid these
pitfalls he proposes ways that have worked well in recent complex multi-project ERP
implementations (programs) Answering the above question raises the problem of
adequately defining and measuring the level of complexity of an implementation
program A conceptual model was developed which identifies program management
factors that are proposed to have an impact on implementation success Fifteen cases
were studied to find support for the proposed framework [88]
ldquoDetecting Gaps between ERP Software and Organizational Needs A Semantic
Similarity Based Approachrdquo is very relevant and contemporary paper presented by Gao
Juntao and Zhang Li (2008) It depicts that Gap analysis is one of the most important
phases in implementation of enterprise resource planning (ERP) system In this paper an
approach is proposed to automatically detect gaps between software capacities and
organizational needs based on semantic similarity computation The approach takes two
business process models as input and one specifies software capacities and the other
42
describes organizational needs The output of it is a report of gaps As a matter of fact
the differences between application domain and software discipline make semantic
heterogeneity a key problem in gap detection therefore the technologies of semantic
similarity computing are employed to resolve ambiguity issues caused by the use of
synonyms or homonyms In particular the idea of similarity propagation is introduced to
pick out a mapping between corresponding activities and data and Hungarian algorithm
is employed to reduce its time complexity Then the similarity of whole models is
measured according to the minimal total cost of change operations Finally an
experiment is given to evaluate the method [36]
In the research publication ldquoERP System Adoption - Does the Size Matterrdquo Sanna
Laukkanen Sami Sarpola and Petri Hallikainen (2005) investigate the relationship of
enterprise size to the constraints and objectives of ERP systems adoption The survey
data based on the responses of 44 companies indicates that significant differences exist
between small medium-sized and large enterprises in ERP system adoption Specifically
the findings suggest that small companies experience more knowledge constraints than
their larger counterparts in ERP adoption Further while being the most prevalent
objective for ERP adoption in all the company groups business development through
ERP adoption is considered especially important by the medium-sized and large
enterprises Finally the findings of the study suggest that instead of considering small
and medium-sized enterprises as one homogenous group the differences between these
two groups of companies should be acknowledged in the future research [65]
In their paper ldquoModel Based on CSCWrdquo Wedian Liang XuFen Zhenkun Li Rong Xiao
JunFeng Hu (2005) summarise their finding They feel that Software testing is an
important component of the software engineering and an important link that the software
development quality is guaranteed Using the reasonable model for software testing can
reduce the expenses of testing in the developing activity in the course of testing thus cut
down the cost of software development In this paper we put forward a model for
software testing bused on CSCW technology that run through each stages of software
development cycle If can find the mistake in the software as soon as possible has
shorten the time taken for testing in the course of the development of software testing
43
effectively Finally we applied the model to the testing project which develops ERP
system and then receive the ideal result [118]
In their paper ldquoThe Research and Development of IMIS for Small and Medium-sized
Printing Enterpriserdquo Taolin Ma Xiaoming Chen Yansong Sun Xiurong Li (2009)
analyzed the fact that the basic management thought of inventory management
information system (IMIS) was established by analyzing the inventory management
theory of modern enterprise In this system which using the architecture of CS the stores
were classified by ABC management method the inventory control was completed by
setting up the safety stock and the largest stock the analysis and design of IMIS were
finished This IMIS was developed to meet the practical requirements of small and
medium-sized printing enterprise in our country It can not only be used as the important
measure of the informationized construction for small and medium sized printing
enterprise but also used as a subsystem of enterprise ERP system IMIS could improve
enterprise management level realize rapid transformation of enterprise and finally
enhance the competitiveness of enterprise in market economy [106]
Jiangao Deng and Yijie Bian (2008) in the research paper ldquoConstructing a Risk
Management Mechanism Model of ERP Projectrdquo mention that in the process of
information project implementation of manufacturing enterprises there are many risks to
set up a set of risk management mechanism is guaranteed for them to succeed in ERP
implementation Firstly based on the analysis of ERP project implementation of China
the paper introduced the risk management methodology systems and the relative model
which includes three main steps identifying risk evaluating risk and controlling risk
After that on the aspects of decision implementation and application stages of
manufacturing ERP project life cycle the paper discussed risks of each stage and put
forward a two-dimension matrix risk management strategy Then a mechanism model of
ERP project risk management is constructed which shows that information risk control
strategies of the last two stages not only depend on resources of these stages but also
have a diverse relationship with the last stage Finally according to the successful
implementation of an enterprisersquos ERP project the paper carried out an effective case
application analysis of risk management mechanism model The lack of improvement in
usersrsquo ERP skill levels and the shortage in documenting the rationale for business rules
44
and configuration decisions were among the critical issues of the post-implementation
stage Indeed all of their respondents stressed the importance of refreshing the usersrsquo
knowledge about the system [28]
Saumyendu Ghosh (2003) in ldquoGlobal Implementation of ERP Software ndash Critical Success
Factors on Upgrading Technical Infrastructurerdquo discusses that implementing an
Enterprise Resource planning (ERP) software in a global environment executive
sponsors face two key challenges While business processes are to be re-engineered to
align with the ERP software best practices technical architecture and infrastructure needs
to be in place globally as per specifications of the packaged software In the legacy
environment different countries or different business units use different systems based
on local standards supported by local resources In the new ERP world globally all the
countries must conform to same technical infrastructure Technical managers face
multiple critical issues implementing a global solution Most of the ERP software is
developed in technically advanced countries standards are often too high for under
developed or developing countries In an effort to bring the global organization to a
common platform different countries need different levels of upgrades In this paper the
authors review key technical issues faced is a global upgrade process to support a global
ERP implementation and how to resolve those We conclude although technical
infrastructure and business process reengineering both are equally important and each
implementation is unique but following some simple steps it is easy to prioritize each
ones during different phases of the project Also time lines of two sub-projects must
converge after initial phase and must follow a common plan for the project to be
successful Multiple scenarios are described to facilitate the process He concludes
although technical infrastructure and business process reengineering both are equally
important and each implementation is unique but following some simple steps it is easy
to prioritize each ones during different phases of the project Also time lines of two
subprojects must converge after initial phase and must follow a common plan for the
project to be successful Multiple scenarios are described to facilitate the process [38]
Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008) ldquoDevelopment and
Implementation of ERPCRM System Based on Open Source Software to Small and
Medium-sized Enterprise in Chinardquo analysed the fact that E-commerce and the
45
development of modern enterprise management raise a number of challenges in the
process of informatization of small and medium-sized enterprises (SME) in china To
address this they present an approach in which the informatization is enhanced by using
Open Source Software with customized policies We analyses the main
informationization obstacles of SME in china bring forward that the lack of bankroll
talents cost and management etc are the key problems to informationization of SME
Furthermore they have developed a textile foreign trade ERP CRM system based on
Open Source Software for the local textile distributor of china integrating financial
distribution sales and service processes given the implement method of overall planning
step-by-step implementation key breakthrough and efficiency guiding In the end we
compare the typical Open Source Software and traditional commercial software point
out the advantages of informatization based Open Source Software to SME in china and
the development trend of Open Source Software for enterprise application [132]
ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information Systems ndash a
Multi-disciplinary Method for ERP System Requirements Engineeringrdquo by Inka Vilpola
Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that ERP systems are in
most cases off-the-shelf software packages and large by their size and complex by their
structure Small and medium-sized enterprises (SMEs) require flexibility of the ERP
system because of their individual operational processes Therefore it is crucial to select
and implement an ERP system that fits the requirements of the intended target processes
To support the requirements engineering of ERP systems we have developed Customer-
Centered ERP Implementation (C-CEI) method The method introduces a multi-
disciplinary approach to the ERP project and provides in-depth understanding of the
companylsquos processes and context of use Using C-CEI method decreases the risk of
SMEs to select an inappropriate system and improves the system acceptance by the
customer companyrsquos employees In this paper we present the method and illustrate it by
three SME case studies [114]
Saumyendu Ghosh (2000) in ldquoChallenges on a global implementation of ERP softwarerdquo
discusses that some of the unique challenges in ERP implementation are satisfying
multiple countries statutory requirements and reporting to the corporate head quarters
from one installation of the software conflicting interests between different business
46
entities lack of experienced implementators in all the countries and eminent users of
multinational advantages He discusses different aspects of these challenges in detail and
point out that ERP software can provide only one solution for a particular business
process unless workarounds are available from experienced implementation Different
counties adopt different reporting and accounting practices and therefore an ERP
implementation cannot solve all problems that global corporation may have multiple
countries in the scope of the project due to absence of standard global processes across
the organization He concludes that the most important critical success factor of these
international implementations are how quickly these corporations can reengineer existing
business process to adopt best practices of using an ERP system [38]
Dong Cheng Feiyan Deng Hongtao Li (2006) ldquoCritical Factors for Successful
Implementation of ERP in Chinardquo in their study propound a theoretical model for
successful implementation of Enterprise Resource Planning (ERP) under Chinarsquos
environment and the authors analyze the model empirically through structural equation
modeling The authors find that strategically IT planning abilities leadershiprsquos support
and the skills of IT section business processing abilities learning abilities and change
management abilities has a significant positive impact on successful ERP implementation
[22]
Parijat Upadhyay (2008) in his research studies ldquoAn explorative study to identify the
Critical Success Factors for ERP Implementation in Indian small and medium scale
enterprisesrdquo explores the existing literature on ERP implementation issues in context to
small and medium scale enterprises and attempts a compilation of the factors that assume
great significance while implementing ERP in SMErsquos Given the nature and magnitude of
the problems in encountered in implementing an ERP project this study would attempt to
identify the critical success factors(CSFrsquos) for a successful implementation of an ERP
project since it calls for substantial effort on the part of all the stake holders involved to
make the implementation a success [111]
ldquoThe ERP Implementation of SME in Chinardquo Yuanqiang Xia Peter Lok and Song Yang
(2009) presented the fact that ERP implementing for small and middle size enterprise
(SME) is different from the large one Based on the analysis on the character of ERP
marketing and SMEs of China 6 critical success factors are recommended The research
47
suggests that the top management support is most important to ERP implement in SME
of China in which paternalism prevails Database of management and capital are main
obstacles ERP 1 or ERP 2 fits to demand of SME high power project team has
tremendous significance in the situation of absence of IT engineer for SME education
and training is helpful to successfully ERP implementing The results service as better
understanding the ERP implementation of SME in China and gaining the good
performance of ERP implementation [126]
Yan Xu and Chung-Hsing Yeh (2009) in the article ldquoStrategic Management of
Performance Measures for an ERP Implementation Project Teamrdquo present a new
evaluation model for managing performance measures of an enterprise resource planning
(ERP) implementation project team in an organization With the performance measures
classified into four strategic perspectives of the balanced scorecard the evaluation model
enables the goal alignment between the project team and the organization A new
algorithm using the concept of multi-attribute decision making is developed to obtain the
relative importance value for each performance measure for its contribution to the
strategic goals of the organization The higher the importance values of a performance
measure the more important the role it plays in determining the responsibilities of the
corresponding project team player Understanding the importance of the key performance
measures will help an organization well-prepare to launch a project and have the project
being organized in advance A case of an ERP implementation project in an integrated
manufacturing corporation is presented to demonstrate the applicability of the evaluation
model and its effective management of the performance measures [124]
Zhang Yanhong (2009) in his research paper ldquoERP Implementation Process Analysis
Based on the Key Success Factorsrdquo describes that Enterprise Resource Planning (ERP) is
an amalgamation of a companys information systems designed to bind more closely a
variety of company functions including human resources inventories and financials
while simultaneously linking the company to customers and vendors This thesis is based
on the theory of product life cycle and the process of ERP is divided into four phase
planning implementation stabilization and improvement Critical success factors in each
phase are identified by paper research case study and investigation An ERP
implementation process model based on the critical Success factors (CSFs) is proposed in
48
the paper The thesis analyzes the global planning stages and business process rebuilding
in the process of QIHE pharmaceuticals ERP Improvement on management and
financing before and after ERP implementation are contrasted and we come to the
following conclusions (1) The CSFs in the planning phase is comprehensive
investigation and evaluation (2) The CSFs in the implementation phase is effective
project management team (3) The CSFs in the stabilization phase is appropriate
information management system (4) The CSFs in the improvement phase is change on
demand and continue to innovate (5) The CSFs throughout the product life cycle is
business process rebuilding [131]
Van Stijn E and Wensley A (2001) ldquoOrganizational memory and the completeness of
process modeling in ERP systems some concerns methods and directions for future
researchrdquo mentioned that Enterprise resource planning (ERP) systems not only have a
broad functional scope promising to support many different business processes they also
embed many different aspects of the companyrsquos organizational memory Disparities can
exist between those memory contents in the ERP system and related contents in other
memory media such as individualsrsquo memories and the organizational structure and
culture It is our contention that in general these disparities or memory mismatches as
we will refer to them lead to under-performance of ERP systems In this paper they focus
on potential memory mismatches that may arise with respect to the embedding of process
knowledge within ERP packages Packages such as SAP provide a varied and rich
environment for process modeling However they suspect that there are still many
instances where process knowledge is either lost or represented in different ways in
different parts of the organization The overall thrust of the paper is to identify a variety
of concerns intriguing questions and avenues for future research [112]
Eric Kimberling (2008) in his article ldquo The Role of Lean Six Sigma in ERPrdquo insisted
that there are a number of things to consider when considering a new ERP system like six
sigma lean manufacturing or other business transformation projects that has the capacity
to measure reducing waste managing change well continuous improvement etc [133]
William H Gaw (2010) ldquoEight Basics of Lean Six Sigma for Manufacturing Firmsrdquo In
the efforts to draw closer to customers many manufacturers have lost focus on what
should be a companyrsquos primary success factor ndash profitable growth In todayrsquos competitive
49
manufacturing environment it takes more than quick fixes outsourcing and downsizing
for companies to consistently achieve their growth and profit objectives While these
options may yield temporary financial relief they will not lead the way to long-term
growth and profitability For companies to grow and consistently exceed bottom line
expectations they need to get lean And to get lean they should master eight basics of
Lean Six Sigma in the form of information integrity performance measurement
sequential production point-of-use logistic cycle time management production linearity
and resource planning and customer satisfaction [134]
Brehm L and Markus M L (2000) in The Divided Software Life Cycle of ERP
Packages mentioned that traditional information system life cycle (SLC) focuses on the
activities performed by company developing implementing and maintaining software for
its own internal use Enterprise resource planning (ERP) software packages change the
SLC in several important ways This paper presents an extension of the SLC model for
ERP packages The lsquodivided software life cyclersquo (DSLC) model features an equal
emphasis on the activities performed by the ERP adopting company and the ERP vendor
[15]
Alavi M and Carlson P (1992) A Review of MIS research and disciplinary
development The perceived status of journals in which MIS research is published is an
important issue to academics The number of IS-related journals has increased through
the years yet it is not obvious which are the ldquoleadingrdquo journals or what criteria should be
used to determine this This article addresses these issues by (1) evaluating and
analyzing previous studies in which MIS related journals have been ranked (2)
determining top-ranked journals and placing them into two levels or tiers based on
previous studies and (3) establishing a profile through a systematic analysis of the nine
journals in the first tier This study identified 17 highly ranked journals for publication
Nine were placed in the first tier and eight in the second tier In addition to IS-specific
journals publications included management science computer science and business-
oriented journals The individual strategies for improving software productivity are
identified Issues related to software costs and controlling them are examined and
discussed It is pointed out that a good framework of techniques exists for controlling
software budgets schedules and work completed but that a great deal of further progress
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 27
38
management in ERP implementation They address specially the risk related to the
changes in enterprise processes in the ERP project To achieve this objective they
propose to define business process change metrics starting from business process
complexity metrics that exist in the literature [18]
ldquoExploration and Verification of Factors in the Front-end Stage of the ERP
Implementation Process Evidence from Case Study and Survey Researchrdquo Kun Shi and
Qiang Lu (2009) depict that ERP (Enterprise Resources Planning) is widely used to
improve business performance This paper explores how the factors associated with the
Front-end ERP Implementation Process (FEIP) affect the implementation outcome First
based on literature review a preliminary framework with 12 hypotheses is developed
Then Grounded Theory is applied for a case study to further extract and verify the factors
and sub-factors These factors are finally identified as strategic planning corporate
culture user characteristics organization-process-system maturity external expertise
engagementsupport and project preparation Furthermore the significance and
correlation of all the factors are detected by conducting survey research with SPSS as a
tool for analysis The study shows that the framework is valid and that among six three
factors have strong impact on the ERP implementation result whereas others are less
influential Implication is given and limitation is indicated at the end [63]
Huo Lingyu Liu Bingwu and Li Juntao (2009) in the paper ldquoAn ERP System Selection
Model Based on Fuzzy Grey TOPSIS for SMEsrdquo present a new fuzzy multi-criteria
decision making (FMCDM) approach which integrates the technique for order preference
by the similarity to ideal solution (TOPSIS) grey relation and fuzzy set theory for
enterprise resource planning (ERP) system evaluation and selection in the Small and
Medium-Sized Enterprises (SMEs) In this study the characteristic of the alternative with
respect to the criteria are represented in terms of a linguistic term set and the weight of
the criteria is described by triangular fuzzy numbers respectively According to the grey
theory and fuzzy set theory a closeness coefficient is defined to determine the ranking
order of all alternatives by calculating the grade of grey relation to the fuzzy positive-
ideal solution (FPIS) and fuzzy negative-ideal solution (FNIS) simultaneously Finally
an example is shown to highlight the procedure of the proposed method [48]
39
Gao Juntao Zhang Li Wang Zhiyao (2008) summarized their findings in ldquoDecision
Support for Handling Gaps between ERP functionalities and Organizational Needs A
Goal Reasoning based approachrdquo They found that in the process of selecting
commercial off-the-shelf (COTS) ERP systems it is inevitable to encounter gaps between
ERP software and organizational needs Gaps occur when COTS attributes do not exactly
match organizational needs and they make organizational users and software vendors in
the dilemma whether to adapt as-is business processes or to customize software
packages A decision support method for handling gaps is proposed in this paper Firstly
organizational goal-process models are built as the base for decision making Secondly
the idea of evidence theory is introduced into goal reasoning and a quantified algorithm is
proposed to evaluate the impacts of different business processes on high level goals
which are critical to make decision At last the risk is discussed to rank intervals which
specify the expected utilization of business processes [56]
Yvonne Dittrich and Sebastien Vaucouleur (2009) conducted a research on the topicrdquo
ERP Customization as Software Engineering Knowledge Sharing and Cooperationrdquo and
argue that Enterprise resource planning (ERP) systems must be configured and
customized to fit a specific company The authors discuss cooperation with regard to ERP
systems customization Enterprise resource planning (ERP) vendors provide multiple
configuration possibilities ranging from module selection to master data provision to
steer access rights for different users These configuration possibilities cover anticipated
variability If the customer requires adaptation beyond whatrsquos anticipated the source
code of the product must be adapted Customizations in this articlersquos context are source-
code-based adaptations of software products The size and complexity of customizations
range from simple report generation to developing independent add-ons that support
specific businessesmdashfor example solutions for flight carriers The size and lead time of
such projects can compare to a full-size software development project They present
empirical research on customization practices of ERP systems as an example of software
development based on customization of standard software They compared customization
with other development practices that are based on integrating existing code and results
underlined the need to rethink software engineering and programming methods and tools
[129]
40
In the paper study ldquoSignificance of Software Metrics in ERP Projectsrdquo S Parthasarathy
and N Anbazhagan (2006) narrate that ERP projects are a subclass of software projects
often accompanied by large-scale organizational changes One of the major reasons found
in the literature for the failure of ERP projects is the poor management of software
processes In this paper we propose a Software Metrics Plan (SNP) containing different
software metrics to manage software processes during ERP implementation Two
hypotheses have been formulated and tested using statistical techniques to validate the
SNP The statistical analysis of the collected data from an ERP project supports the two
hypotheses leading to the conclusion that the software metrics are momentous in ERP
projects [84]
Antony Marsh (2000) in the article ldquoThe implementation of Enterprise Resource Planning
systems in small and medium Manufacturing enterprises in south-east Queensland a case
study approachrdquo examines the implementation of ERP systems in smallmedium-sized
enterprises in South East Queensland Australia Nine case studies were conducted to
determine factors for success or failure in the implementations Key success factors
identified included cross-functional team approaches organizational experience of
similar scale IT or organizational change projects and lsquodeeprsquo understanding of the key
issues relating to ERP implementations Failure factors identified included top-down or
consultant driven implementations IT department driven implementations or
implementations where the EFV is seen as a quick technological fix to problems within
the operation of the firm rather than as a strategic investment [78]
Christian Doumlrner Sebastian Draxler Volkmar Pipek and Volker Wulf (2009) through
their study ldquoEnd Users at the Bazaar Designing Next-Generation Enterprise Resource
Planning Systemsrdquo propose that the bazaar metaphor has developed a lasting
popularity in software engineering especially as software architectures have evolved
from monoliths to service orientation Nevertheless the metaphor is limited because it
doesnt consider end users those who develop software for themselves Introducing such
an end user the prosumer to the bazaar not only suggests a changing division of work
in software development but also calls for different functionality and architectural
choices The authors evaluated changing software architectures from an end-user
development (EUD) perspective taking the case of enterprise resource planning (ERP)
41
systems as traditionally monolithically designed systems moving toward service
orientation On the basis of the studys findings which indicated problems with the
systems technical flexibility the authors developed a tool set for fostering EUD
activities Their new architecture for ERP systems enables end users to create their own
solutions [31]
Kenny KF Lee (2000) in ldquoThe Five Disciplines of ERP Software Implementationrdquo has
identified the critical factors in businesses which learn grow and succeed This paper
applies the central concepts of the book its five disciplines to the software business
specifically the management of software implementation Using the learning challenge
posed by the organization-wide implementation of Enterprise Resource Systems (Em) the
paper covers how EM software project leaders may manage themselves their teams
business vision and corporate culture and team members to create a survival machine
which can thrive in the current economic and technological climate [67]
Piet MA Ribbers amp Schoo (2000) in his paper ldquoDesigning Complex Software
Implementation Programsrdquo raises a central question that how one can design of Program
Management contributes to the success of complex software implementations
Incomplete goal specifications lack of communication and underestimation of project
complexity are signs of insufficient program and project management To avoid these
pitfalls he proposes ways that have worked well in recent complex multi-project ERP
implementations (programs) Answering the above question raises the problem of
adequately defining and measuring the level of complexity of an implementation
program A conceptual model was developed which identifies program management
factors that are proposed to have an impact on implementation success Fifteen cases
were studied to find support for the proposed framework [88]
ldquoDetecting Gaps between ERP Software and Organizational Needs A Semantic
Similarity Based Approachrdquo is very relevant and contemporary paper presented by Gao
Juntao and Zhang Li (2008) It depicts that Gap analysis is one of the most important
phases in implementation of enterprise resource planning (ERP) system In this paper an
approach is proposed to automatically detect gaps between software capacities and
organizational needs based on semantic similarity computation The approach takes two
business process models as input and one specifies software capacities and the other
42
describes organizational needs The output of it is a report of gaps As a matter of fact
the differences between application domain and software discipline make semantic
heterogeneity a key problem in gap detection therefore the technologies of semantic
similarity computing are employed to resolve ambiguity issues caused by the use of
synonyms or homonyms In particular the idea of similarity propagation is introduced to
pick out a mapping between corresponding activities and data and Hungarian algorithm
is employed to reduce its time complexity Then the similarity of whole models is
measured according to the minimal total cost of change operations Finally an
experiment is given to evaluate the method [36]
In the research publication ldquoERP System Adoption - Does the Size Matterrdquo Sanna
Laukkanen Sami Sarpola and Petri Hallikainen (2005) investigate the relationship of
enterprise size to the constraints and objectives of ERP systems adoption The survey
data based on the responses of 44 companies indicates that significant differences exist
between small medium-sized and large enterprises in ERP system adoption Specifically
the findings suggest that small companies experience more knowledge constraints than
their larger counterparts in ERP adoption Further while being the most prevalent
objective for ERP adoption in all the company groups business development through
ERP adoption is considered especially important by the medium-sized and large
enterprises Finally the findings of the study suggest that instead of considering small
and medium-sized enterprises as one homogenous group the differences between these
two groups of companies should be acknowledged in the future research [65]
In their paper ldquoModel Based on CSCWrdquo Wedian Liang XuFen Zhenkun Li Rong Xiao
JunFeng Hu (2005) summarise their finding They feel that Software testing is an
important component of the software engineering and an important link that the software
development quality is guaranteed Using the reasonable model for software testing can
reduce the expenses of testing in the developing activity in the course of testing thus cut
down the cost of software development In this paper we put forward a model for
software testing bused on CSCW technology that run through each stages of software
development cycle If can find the mistake in the software as soon as possible has
shorten the time taken for testing in the course of the development of software testing
43
effectively Finally we applied the model to the testing project which develops ERP
system and then receive the ideal result [118]
In their paper ldquoThe Research and Development of IMIS for Small and Medium-sized
Printing Enterpriserdquo Taolin Ma Xiaoming Chen Yansong Sun Xiurong Li (2009)
analyzed the fact that the basic management thought of inventory management
information system (IMIS) was established by analyzing the inventory management
theory of modern enterprise In this system which using the architecture of CS the stores
were classified by ABC management method the inventory control was completed by
setting up the safety stock and the largest stock the analysis and design of IMIS were
finished This IMIS was developed to meet the practical requirements of small and
medium-sized printing enterprise in our country It can not only be used as the important
measure of the informationized construction for small and medium sized printing
enterprise but also used as a subsystem of enterprise ERP system IMIS could improve
enterprise management level realize rapid transformation of enterprise and finally
enhance the competitiveness of enterprise in market economy [106]
Jiangao Deng and Yijie Bian (2008) in the research paper ldquoConstructing a Risk
Management Mechanism Model of ERP Projectrdquo mention that in the process of
information project implementation of manufacturing enterprises there are many risks to
set up a set of risk management mechanism is guaranteed for them to succeed in ERP
implementation Firstly based on the analysis of ERP project implementation of China
the paper introduced the risk management methodology systems and the relative model
which includes three main steps identifying risk evaluating risk and controlling risk
After that on the aspects of decision implementation and application stages of
manufacturing ERP project life cycle the paper discussed risks of each stage and put
forward a two-dimension matrix risk management strategy Then a mechanism model of
ERP project risk management is constructed which shows that information risk control
strategies of the last two stages not only depend on resources of these stages but also
have a diverse relationship with the last stage Finally according to the successful
implementation of an enterprisersquos ERP project the paper carried out an effective case
application analysis of risk management mechanism model The lack of improvement in
usersrsquo ERP skill levels and the shortage in documenting the rationale for business rules
44
and configuration decisions were among the critical issues of the post-implementation
stage Indeed all of their respondents stressed the importance of refreshing the usersrsquo
knowledge about the system [28]
Saumyendu Ghosh (2003) in ldquoGlobal Implementation of ERP Software ndash Critical Success
Factors on Upgrading Technical Infrastructurerdquo discusses that implementing an
Enterprise Resource planning (ERP) software in a global environment executive
sponsors face two key challenges While business processes are to be re-engineered to
align with the ERP software best practices technical architecture and infrastructure needs
to be in place globally as per specifications of the packaged software In the legacy
environment different countries or different business units use different systems based
on local standards supported by local resources In the new ERP world globally all the
countries must conform to same technical infrastructure Technical managers face
multiple critical issues implementing a global solution Most of the ERP software is
developed in technically advanced countries standards are often too high for under
developed or developing countries In an effort to bring the global organization to a
common platform different countries need different levels of upgrades In this paper the
authors review key technical issues faced is a global upgrade process to support a global
ERP implementation and how to resolve those We conclude although technical
infrastructure and business process reengineering both are equally important and each
implementation is unique but following some simple steps it is easy to prioritize each
ones during different phases of the project Also time lines of two sub-projects must
converge after initial phase and must follow a common plan for the project to be
successful Multiple scenarios are described to facilitate the process He concludes
although technical infrastructure and business process reengineering both are equally
important and each implementation is unique but following some simple steps it is easy
to prioritize each ones during different phases of the project Also time lines of two
subprojects must converge after initial phase and must follow a common plan for the
project to be successful Multiple scenarios are described to facilitate the process [38]
Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008) ldquoDevelopment and
Implementation of ERPCRM System Based on Open Source Software to Small and
Medium-sized Enterprise in Chinardquo analysed the fact that E-commerce and the
45
development of modern enterprise management raise a number of challenges in the
process of informatization of small and medium-sized enterprises (SME) in china To
address this they present an approach in which the informatization is enhanced by using
Open Source Software with customized policies We analyses the main
informationization obstacles of SME in china bring forward that the lack of bankroll
talents cost and management etc are the key problems to informationization of SME
Furthermore they have developed a textile foreign trade ERP CRM system based on
Open Source Software for the local textile distributor of china integrating financial
distribution sales and service processes given the implement method of overall planning
step-by-step implementation key breakthrough and efficiency guiding In the end we
compare the typical Open Source Software and traditional commercial software point
out the advantages of informatization based Open Source Software to SME in china and
the development trend of Open Source Software for enterprise application [132]
ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information Systems ndash a
Multi-disciplinary Method for ERP System Requirements Engineeringrdquo by Inka Vilpola
Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that ERP systems are in
most cases off-the-shelf software packages and large by their size and complex by their
structure Small and medium-sized enterprises (SMEs) require flexibility of the ERP
system because of their individual operational processes Therefore it is crucial to select
and implement an ERP system that fits the requirements of the intended target processes
To support the requirements engineering of ERP systems we have developed Customer-
Centered ERP Implementation (C-CEI) method The method introduces a multi-
disciplinary approach to the ERP project and provides in-depth understanding of the
companylsquos processes and context of use Using C-CEI method decreases the risk of
SMEs to select an inappropriate system and improves the system acceptance by the
customer companyrsquos employees In this paper we present the method and illustrate it by
three SME case studies [114]
Saumyendu Ghosh (2000) in ldquoChallenges on a global implementation of ERP softwarerdquo
discusses that some of the unique challenges in ERP implementation are satisfying
multiple countries statutory requirements and reporting to the corporate head quarters
from one installation of the software conflicting interests between different business
46
entities lack of experienced implementators in all the countries and eminent users of
multinational advantages He discusses different aspects of these challenges in detail and
point out that ERP software can provide only one solution for a particular business
process unless workarounds are available from experienced implementation Different
counties adopt different reporting and accounting practices and therefore an ERP
implementation cannot solve all problems that global corporation may have multiple
countries in the scope of the project due to absence of standard global processes across
the organization He concludes that the most important critical success factor of these
international implementations are how quickly these corporations can reengineer existing
business process to adopt best practices of using an ERP system [38]
Dong Cheng Feiyan Deng Hongtao Li (2006) ldquoCritical Factors for Successful
Implementation of ERP in Chinardquo in their study propound a theoretical model for
successful implementation of Enterprise Resource Planning (ERP) under Chinarsquos
environment and the authors analyze the model empirically through structural equation
modeling The authors find that strategically IT planning abilities leadershiprsquos support
and the skills of IT section business processing abilities learning abilities and change
management abilities has a significant positive impact on successful ERP implementation
[22]
Parijat Upadhyay (2008) in his research studies ldquoAn explorative study to identify the
Critical Success Factors for ERP Implementation in Indian small and medium scale
enterprisesrdquo explores the existing literature on ERP implementation issues in context to
small and medium scale enterprises and attempts a compilation of the factors that assume
great significance while implementing ERP in SMErsquos Given the nature and magnitude of
the problems in encountered in implementing an ERP project this study would attempt to
identify the critical success factors(CSFrsquos) for a successful implementation of an ERP
project since it calls for substantial effort on the part of all the stake holders involved to
make the implementation a success [111]
ldquoThe ERP Implementation of SME in Chinardquo Yuanqiang Xia Peter Lok and Song Yang
(2009) presented the fact that ERP implementing for small and middle size enterprise
(SME) is different from the large one Based on the analysis on the character of ERP
marketing and SMEs of China 6 critical success factors are recommended The research
47
suggests that the top management support is most important to ERP implement in SME
of China in which paternalism prevails Database of management and capital are main
obstacles ERP 1 or ERP 2 fits to demand of SME high power project team has
tremendous significance in the situation of absence of IT engineer for SME education
and training is helpful to successfully ERP implementing The results service as better
understanding the ERP implementation of SME in China and gaining the good
performance of ERP implementation [126]
Yan Xu and Chung-Hsing Yeh (2009) in the article ldquoStrategic Management of
Performance Measures for an ERP Implementation Project Teamrdquo present a new
evaluation model for managing performance measures of an enterprise resource planning
(ERP) implementation project team in an organization With the performance measures
classified into four strategic perspectives of the balanced scorecard the evaluation model
enables the goal alignment between the project team and the organization A new
algorithm using the concept of multi-attribute decision making is developed to obtain the
relative importance value for each performance measure for its contribution to the
strategic goals of the organization The higher the importance values of a performance
measure the more important the role it plays in determining the responsibilities of the
corresponding project team player Understanding the importance of the key performance
measures will help an organization well-prepare to launch a project and have the project
being organized in advance A case of an ERP implementation project in an integrated
manufacturing corporation is presented to demonstrate the applicability of the evaluation
model and its effective management of the performance measures [124]
Zhang Yanhong (2009) in his research paper ldquoERP Implementation Process Analysis
Based on the Key Success Factorsrdquo describes that Enterprise Resource Planning (ERP) is
an amalgamation of a companys information systems designed to bind more closely a
variety of company functions including human resources inventories and financials
while simultaneously linking the company to customers and vendors This thesis is based
on the theory of product life cycle and the process of ERP is divided into four phase
planning implementation stabilization and improvement Critical success factors in each
phase are identified by paper research case study and investigation An ERP
implementation process model based on the critical Success factors (CSFs) is proposed in
48
the paper The thesis analyzes the global planning stages and business process rebuilding
in the process of QIHE pharmaceuticals ERP Improvement on management and
financing before and after ERP implementation are contrasted and we come to the
following conclusions (1) The CSFs in the planning phase is comprehensive
investigation and evaluation (2) The CSFs in the implementation phase is effective
project management team (3) The CSFs in the stabilization phase is appropriate
information management system (4) The CSFs in the improvement phase is change on
demand and continue to innovate (5) The CSFs throughout the product life cycle is
business process rebuilding [131]
Van Stijn E and Wensley A (2001) ldquoOrganizational memory and the completeness of
process modeling in ERP systems some concerns methods and directions for future
researchrdquo mentioned that Enterprise resource planning (ERP) systems not only have a
broad functional scope promising to support many different business processes they also
embed many different aspects of the companyrsquos organizational memory Disparities can
exist between those memory contents in the ERP system and related contents in other
memory media such as individualsrsquo memories and the organizational structure and
culture It is our contention that in general these disparities or memory mismatches as
we will refer to them lead to under-performance of ERP systems In this paper they focus
on potential memory mismatches that may arise with respect to the embedding of process
knowledge within ERP packages Packages such as SAP provide a varied and rich
environment for process modeling However they suspect that there are still many
instances where process knowledge is either lost or represented in different ways in
different parts of the organization The overall thrust of the paper is to identify a variety
of concerns intriguing questions and avenues for future research [112]
Eric Kimberling (2008) in his article ldquo The Role of Lean Six Sigma in ERPrdquo insisted
that there are a number of things to consider when considering a new ERP system like six
sigma lean manufacturing or other business transformation projects that has the capacity
to measure reducing waste managing change well continuous improvement etc [133]
William H Gaw (2010) ldquoEight Basics of Lean Six Sigma for Manufacturing Firmsrdquo In
the efforts to draw closer to customers many manufacturers have lost focus on what
should be a companyrsquos primary success factor ndash profitable growth In todayrsquos competitive
49
manufacturing environment it takes more than quick fixes outsourcing and downsizing
for companies to consistently achieve their growth and profit objectives While these
options may yield temporary financial relief they will not lead the way to long-term
growth and profitability For companies to grow and consistently exceed bottom line
expectations they need to get lean And to get lean they should master eight basics of
Lean Six Sigma in the form of information integrity performance measurement
sequential production point-of-use logistic cycle time management production linearity
and resource planning and customer satisfaction [134]
Brehm L and Markus M L (2000) in The Divided Software Life Cycle of ERP
Packages mentioned that traditional information system life cycle (SLC) focuses on the
activities performed by company developing implementing and maintaining software for
its own internal use Enterprise resource planning (ERP) software packages change the
SLC in several important ways This paper presents an extension of the SLC model for
ERP packages The lsquodivided software life cyclersquo (DSLC) model features an equal
emphasis on the activities performed by the ERP adopting company and the ERP vendor
[15]
Alavi M and Carlson P (1992) A Review of MIS research and disciplinary
development The perceived status of journals in which MIS research is published is an
important issue to academics The number of IS-related journals has increased through
the years yet it is not obvious which are the ldquoleadingrdquo journals or what criteria should be
used to determine this This article addresses these issues by (1) evaluating and
analyzing previous studies in which MIS related journals have been ranked (2)
determining top-ranked journals and placing them into two levels or tiers based on
previous studies and (3) establishing a profile through a systematic analysis of the nine
journals in the first tier This study identified 17 highly ranked journals for publication
Nine were placed in the first tier and eight in the second tier In addition to IS-specific
journals publications included management science computer science and business-
oriented journals The individual strategies for improving software productivity are
identified Issues related to software costs and controlling them are examined and
discussed It is pointed out that a good framework of techniques exists for controlling
software budgets schedules and work completed but that a great deal of further progress
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 28
39
Gao Juntao Zhang Li Wang Zhiyao (2008) summarized their findings in ldquoDecision
Support for Handling Gaps between ERP functionalities and Organizational Needs A
Goal Reasoning based approachrdquo They found that in the process of selecting
commercial off-the-shelf (COTS) ERP systems it is inevitable to encounter gaps between
ERP software and organizational needs Gaps occur when COTS attributes do not exactly
match organizational needs and they make organizational users and software vendors in
the dilemma whether to adapt as-is business processes or to customize software
packages A decision support method for handling gaps is proposed in this paper Firstly
organizational goal-process models are built as the base for decision making Secondly
the idea of evidence theory is introduced into goal reasoning and a quantified algorithm is
proposed to evaluate the impacts of different business processes on high level goals
which are critical to make decision At last the risk is discussed to rank intervals which
specify the expected utilization of business processes [56]
Yvonne Dittrich and Sebastien Vaucouleur (2009) conducted a research on the topicrdquo
ERP Customization as Software Engineering Knowledge Sharing and Cooperationrdquo and
argue that Enterprise resource planning (ERP) systems must be configured and
customized to fit a specific company The authors discuss cooperation with regard to ERP
systems customization Enterprise resource planning (ERP) vendors provide multiple
configuration possibilities ranging from module selection to master data provision to
steer access rights for different users These configuration possibilities cover anticipated
variability If the customer requires adaptation beyond whatrsquos anticipated the source
code of the product must be adapted Customizations in this articlersquos context are source-
code-based adaptations of software products The size and complexity of customizations
range from simple report generation to developing independent add-ons that support
specific businessesmdashfor example solutions for flight carriers The size and lead time of
such projects can compare to a full-size software development project They present
empirical research on customization practices of ERP systems as an example of software
development based on customization of standard software They compared customization
with other development practices that are based on integrating existing code and results
underlined the need to rethink software engineering and programming methods and tools
[129]
40
In the paper study ldquoSignificance of Software Metrics in ERP Projectsrdquo S Parthasarathy
and N Anbazhagan (2006) narrate that ERP projects are a subclass of software projects
often accompanied by large-scale organizational changes One of the major reasons found
in the literature for the failure of ERP projects is the poor management of software
processes In this paper we propose a Software Metrics Plan (SNP) containing different
software metrics to manage software processes during ERP implementation Two
hypotheses have been formulated and tested using statistical techniques to validate the
SNP The statistical analysis of the collected data from an ERP project supports the two
hypotheses leading to the conclusion that the software metrics are momentous in ERP
projects [84]
Antony Marsh (2000) in the article ldquoThe implementation of Enterprise Resource Planning
systems in small and medium Manufacturing enterprises in south-east Queensland a case
study approachrdquo examines the implementation of ERP systems in smallmedium-sized
enterprises in South East Queensland Australia Nine case studies were conducted to
determine factors for success or failure in the implementations Key success factors
identified included cross-functional team approaches organizational experience of
similar scale IT or organizational change projects and lsquodeeprsquo understanding of the key
issues relating to ERP implementations Failure factors identified included top-down or
consultant driven implementations IT department driven implementations or
implementations where the EFV is seen as a quick technological fix to problems within
the operation of the firm rather than as a strategic investment [78]
Christian Doumlrner Sebastian Draxler Volkmar Pipek and Volker Wulf (2009) through
their study ldquoEnd Users at the Bazaar Designing Next-Generation Enterprise Resource
Planning Systemsrdquo propose that the bazaar metaphor has developed a lasting
popularity in software engineering especially as software architectures have evolved
from monoliths to service orientation Nevertheless the metaphor is limited because it
doesnt consider end users those who develop software for themselves Introducing such
an end user the prosumer to the bazaar not only suggests a changing division of work
in software development but also calls for different functionality and architectural
choices The authors evaluated changing software architectures from an end-user
development (EUD) perspective taking the case of enterprise resource planning (ERP)
41
systems as traditionally monolithically designed systems moving toward service
orientation On the basis of the studys findings which indicated problems with the
systems technical flexibility the authors developed a tool set for fostering EUD
activities Their new architecture for ERP systems enables end users to create their own
solutions [31]
Kenny KF Lee (2000) in ldquoThe Five Disciplines of ERP Software Implementationrdquo has
identified the critical factors in businesses which learn grow and succeed This paper
applies the central concepts of the book its five disciplines to the software business
specifically the management of software implementation Using the learning challenge
posed by the organization-wide implementation of Enterprise Resource Systems (Em) the
paper covers how EM software project leaders may manage themselves their teams
business vision and corporate culture and team members to create a survival machine
which can thrive in the current economic and technological climate [67]
Piet MA Ribbers amp Schoo (2000) in his paper ldquoDesigning Complex Software
Implementation Programsrdquo raises a central question that how one can design of Program
Management contributes to the success of complex software implementations
Incomplete goal specifications lack of communication and underestimation of project
complexity are signs of insufficient program and project management To avoid these
pitfalls he proposes ways that have worked well in recent complex multi-project ERP
implementations (programs) Answering the above question raises the problem of
adequately defining and measuring the level of complexity of an implementation
program A conceptual model was developed which identifies program management
factors that are proposed to have an impact on implementation success Fifteen cases
were studied to find support for the proposed framework [88]
ldquoDetecting Gaps between ERP Software and Organizational Needs A Semantic
Similarity Based Approachrdquo is very relevant and contemporary paper presented by Gao
Juntao and Zhang Li (2008) It depicts that Gap analysis is one of the most important
phases in implementation of enterprise resource planning (ERP) system In this paper an
approach is proposed to automatically detect gaps between software capacities and
organizational needs based on semantic similarity computation The approach takes two
business process models as input and one specifies software capacities and the other
42
describes organizational needs The output of it is a report of gaps As a matter of fact
the differences between application domain and software discipline make semantic
heterogeneity a key problem in gap detection therefore the technologies of semantic
similarity computing are employed to resolve ambiguity issues caused by the use of
synonyms or homonyms In particular the idea of similarity propagation is introduced to
pick out a mapping between corresponding activities and data and Hungarian algorithm
is employed to reduce its time complexity Then the similarity of whole models is
measured according to the minimal total cost of change operations Finally an
experiment is given to evaluate the method [36]
In the research publication ldquoERP System Adoption - Does the Size Matterrdquo Sanna
Laukkanen Sami Sarpola and Petri Hallikainen (2005) investigate the relationship of
enterprise size to the constraints and objectives of ERP systems adoption The survey
data based on the responses of 44 companies indicates that significant differences exist
between small medium-sized and large enterprises in ERP system adoption Specifically
the findings suggest that small companies experience more knowledge constraints than
their larger counterparts in ERP adoption Further while being the most prevalent
objective for ERP adoption in all the company groups business development through
ERP adoption is considered especially important by the medium-sized and large
enterprises Finally the findings of the study suggest that instead of considering small
and medium-sized enterprises as one homogenous group the differences between these
two groups of companies should be acknowledged in the future research [65]
In their paper ldquoModel Based on CSCWrdquo Wedian Liang XuFen Zhenkun Li Rong Xiao
JunFeng Hu (2005) summarise their finding They feel that Software testing is an
important component of the software engineering and an important link that the software
development quality is guaranteed Using the reasonable model for software testing can
reduce the expenses of testing in the developing activity in the course of testing thus cut
down the cost of software development In this paper we put forward a model for
software testing bused on CSCW technology that run through each stages of software
development cycle If can find the mistake in the software as soon as possible has
shorten the time taken for testing in the course of the development of software testing
43
effectively Finally we applied the model to the testing project which develops ERP
system and then receive the ideal result [118]
In their paper ldquoThe Research and Development of IMIS for Small and Medium-sized
Printing Enterpriserdquo Taolin Ma Xiaoming Chen Yansong Sun Xiurong Li (2009)
analyzed the fact that the basic management thought of inventory management
information system (IMIS) was established by analyzing the inventory management
theory of modern enterprise In this system which using the architecture of CS the stores
were classified by ABC management method the inventory control was completed by
setting up the safety stock and the largest stock the analysis and design of IMIS were
finished This IMIS was developed to meet the practical requirements of small and
medium-sized printing enterprise in our country It can not only be used as the important
measure of the informationized construction for small and medium sized printing
enterprise but also used as a subsystem of enterprise ERP system IMIS could improve
enterprise management level realize rapid transformation of enterprise and finally
enhance the competitiveness of enterprise in market economy [106]
Jiangao Deng and Yijie Bian (2008) in the research paper ldquoConstructing a Risk
Management Mechanism Model of ERP Projectrdquo mention that in the process of
information project implementation of manufacturing enterprises there are many risks to
set up a set of risk management mechanism is guaranteed for them to succeed in ERP
implementation Firstly based on the analysis of ERP project implementation of China
the paper introduced the risk management methodology systems and the relative model
which includes three main steps identifying risk evaluating risk and controlling risk
After that on the aspects of decision implementation and application stages of
manufacturing ERP project life cycle the paper discussed risks of each stage and put
forward a two-dimension matrix risk management strategy Then a mechanism model of
ERP project risk management is constructed which shows that information risk control
strategies of the last two stages not only depend on resources of these stages but also
have a diverse relationship with the last stage Finally according to the successful
implementation of an enterprisersquos ERP project the paper carried out an effective case
application analysis of risk management mechanism model The lack of improvement in
usersrsquo ERP skill levels and the shortage in documenting the rationale for business rules
44
and configuration decisions were among the critical issues of the post-implementation
stage Indeed all of their respondents stressed the importance of refreshing the usersrsquo
knowledge about the system [28]
Saumyendu Ghosh (2003) in ldquoGlobal Implementation of ERP Software ndash Critical Success
Factors on Upgrading Technical Infrastructurerdquo discusses that implementing an
Enterprise Resource planning (ERP) software in a global environment executive
sponsors face two key challenges While business processes are to be re-engineered to
align with the ERP software best practices technical architecture and infrastructure needs
to be in place globally as per specifications of the packaged software In the legacy
environment different countries or different business units use different systems based
on local standards supported by local resources In the new ERP world globally all the
countries must conform to same technical infrastructure Technical managers face
multiple critical issues implementing a global solution Most of the ERP software is
developed in technically advanced countries standards are often too high for under
developed or developing countries In an effort to bring the global organization to a
common platform different countries need different levels of upgrades In this paper the
authors review key technical issues faced is a global upgrade process to support a global
ERP implementation and how to resolve those We conclude although technical
infrastructure and business process reengineering both are equally important and each
implementation is unique but following some simple steps it is easy to prioritize each
ones during different phases of the project Also time lines of two sub-projects must
converge after initial phase and must follow a common plan for the project to be
successful Multiple scenarios are described to facilitate the process He concludes
although technical infrastructure and business process reengineering both are equally
important and each implementation is unique but following some simple steps it is easy
to prioritize each ones during different phases of the project Also time lines of two
subprojects must converge after initial phase and must follow a common plan for the
project to be successful Multiple scenarios are described to facilitate the process [38]
Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008) ldquoDevelopment and
Implementation of ERPCRM System Based on Open Source Software to Small and
Medium-sized Enterprise in Chinardquo analysed the fact that E-commerce and the
45
development of modern enterprise management raise a number of challenges in the
process of informatization of small and medium-sized enterprises (SME) in china To
address this they present an approach in which the informatization is enhanced by using
Open Source Software with customized policies We analyses the main
informationization obstacles of SME in china bring forward that the lack of bankroll
talents cost and management etc are the key problems to informationization of SME
Furthermore they have developed a textile foreign trade ERP CRM system based on
Open Source Software for the local textile distributor of china integrating financial
distribution sales and service processes given the implement method of overall planning
step-by-step implementation key breakthrough and efficiency guiding In the end we
compare the typical Open Source Software and traditional commercial software point
out the advantages of informatization based Open Source Software to SME in china and
the development trend of Open Source Software for enterprise application [132]
ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information Systems ndash a
Multi-disciplinary Method for ERP System Requirements Engineeringrdquo by Inka Vilpola
Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that ERP systems are in
most cases off-the-shelf software packages and large by their size and complex by their
structure Small and medium-sized enterprises (SMEs) require flexibility of the ERP
system because of their individual operational processes Therefore it is crucial to select
and implement an ERP system that fits the requirements of the intended target processes
To support the requirements engineering of ERP systems we have developed Customer-
Centered ERP Implementation (C-CEI) method The method introduces a multi-
disciplinary approach to the ERP project and provides in-depth understanding of the
companylsquos processes and context of use Using C-CEI method decreases the risk of
SMEs to select an inappropriate system and improves the system acceptance by the
customer companyrsquos employees In this paper we present the method and illustrate it by
three SME case studies [114]
Saumyendu Ghosh (2000) in ldquoChallenges on a global implementation of ERP softwarerdquo
discusses that some of the unique challenges in ERP implementation are satisfying
multiple countries statutory requirements and reporting to the corporate head quarters
from one installation of the software conflicting interests between different business
46
entities lack of experienced implementators in all the countries and eminent users of
multinational advantages He discusses different aspects of these challenges in detail and
point out that ERP software can provide only one solution for a particular business
process unless workarounds are available from experienced implementation Different
counties adopt different reporting and accounting practices and therefore an ERP
implementation cannot solve all problems that global corporation may have multiple
countries in the scope of the project due to absence of standard global processes across
the organization He concludes that the most important critical success factor of these
international implementations are how quickly these corporations can reengineer existing
business process to adopt best practices of using an ERP system [38]
Dong Cheng Feiyan Deng Hongtao Li (2006) ldquoCritical Factors for Successful
Implementation of ERP in Chinardquo in their study propound a theoretical model for
successful implementation of Enterprise Resource Planning (ERP) under Chinarsquos
environment and the authors analyze the model empirically through structural equation
modeling The authors find that strategically IT planning abilities leadershiprsquos support
and the skills of IT section business processing abilities learning abilities and change
management abilities has a significant positive impact on successful ERP implementation
[22]
Parijat Upadhyay (2008) in his research studies ldquoAn explorative study to identify the
Critical Success Factors for ERP Implementation in Indian small and medium scale
enterprisesrdquo explores the existing literature on ERP implementation issues in context to
small and medium scale enterprises and attempts a compilation of the factors that assume
great significance while implementing ERP in SMErsquos Given the nature and magnitude of
the problems in encountered in implementing an ERP project this study would attempt to
identify the critical success factors(CSFrsquos) for a successful implementation of an ERP
project since it calls for substantial effort on the part of all the stake holders involved to
make the implementation a success [111]
ldquoThe ERP Implementation of SME in Chinardquo Yuanqiang Xia Peter Lok and Song Yang
(2009) presented the fact that ERP implementing for small and middle size enterprise
(SME) is different from the large one Based on the analysis on the character of ERP
marketing and SMEs of China 6 critical success factors are recommended The research
47
suggests that the top management support is most important to ERP implement in SME
of China in which paternalism prevails Database of management and capital are main
obstacles ERP 1 or ERP 2 fits to demand of SME high power project team has
tremendous significance in the situation of absence of IT engineer for SME education
and training is helpful to successfully ERP implementing The results service as better
understanding the ERP implementation of SME in China and gaining the good
performance of ERP implementation [126]
Yan Xu and Chung-Hsing Yeh (2009) in the article ldquoStrategic Management of
Performance Measures for an ERP Implementation Project Teamrdquo present a new
evaluation model for managing performance measures of an enterprise resource planning
(ERP) implementation project team in an organization With the performance measures
classified into four strategic perspectives of the balanced scorecard the evaluation model
enables the goal alignment between the project team and the organization A new
algorithm using the concept of multi-attribute decision making is developed to obtain the
relative importance value for each performance measure for its contribution to the
strategic goals of the organization The higher the importance values of a performance
measure the more important the role it plays in determining the responsibilities of the
corresponding project team player Understanding the importance of the key performance
measures will help an organization well-prepare to launch a project and have the project
being organized in advance A case of an ERP implementation project in an integrated
manufacturing corporation is presented to demonstrate the applicability of the evaluation
model and its effective management of the performance measures [124]
Zhang Yanhong (2009) in his research paper ldquoERP Implementation Process Analysis
Based on the Key Success Factorsrdquo describes that Enterprise Resource Planning (ERP) is
an amalgamation of a companys information systems designed to bind more closely a
variety of company functions including human resources inventories and financials
while simultaneously linking the company to customers and vendors This thesis is based
on the theory of product life cycle and the process of ERP is divided into four phase
planning implementation stabilization and improvement Critical success factors in each
phase are identified by paper research case study and investigation An ERP
implementation process model based on the critical Success factors (CSFs) is proposed in
48
the paper The thesis analyzes the global planning stages and business process rebuilding
in the process of QIHE pharmaceuticals ERP Improvement on management and
financing before and after ERP implementation are contrasted and we come to the
following conclusions (1) The CSFs in the planning phase is comprehensive
investigation and evaluation (2) The CSFs in the implementation phase is effective
project management team (3) The CSFs in the stabilization phase is appropriate
information management system (4) The CSFs in the improvement phase is change on
demand and continue to innovate (5) The CSFs throughout the product life cycle is
business process rebuilding [131]
Van Stijn E and Wensley A (2001) ldquoOrganizational memory and the completeness of
process modeling in ERP systems some concerns methods and directions for future
researchrdquo mentioned that Enterprise resource planning (ERP) systems not only have a
broad functional scope promising to support many different business processes they also
embed many different aspects of the companyrsquos organizational memory Disparities can
exist between those memory contents in the ERP system and related contents in other
memory media such as individualsrsquo memories and the organizational structure and
culture It is our contention that in general these disparities or memory mismatches as
we will refer to them lead to under-performance of ERP systems In this paper they focus
on potential memory mismatches that may arise with respect to the embedding of process
knowledge within ERP packages Packages such as SAP provide a varied and rich
environment for process modeling However they suspect that there are still many
instances where process knowledge is either lost or represented in different ways in
different parts of the organization The overall thrust of the paper is to identify a variety
of concerns intriguing questions and avenues for future research [112]
Eric Kimberling (2008) in his article ldquo The Role of Lean Six Sigma in ERPrdquo insisted
that there are a number of things to consider when considering a new ERP system like six
sigma lean manufacturing or other business transformation projects that has the capacity
to measure reducing waste managing change well continuous improvement etc [133]
William H Gaw (2010) ldquoEight Basics of Lean Six Sigma for Manufacturing Firmsrdquo In
the efforts to draw closer to customers many manufacturers have lost focus on what
should be a companyrsquos primary success factor ndash profitable growth In todayrsquos competitive
49
manufacturing environment it takes more than quick fixes outsourcing and downsizing
for companies to consistently achieve their growth and profit objectives While these
options may yield temporary financial relief they will not lead the way to long-term
growth and profitability For companies to grow and consistently exceed bottom line
expectations they need to get lean And to get lean they should master eight basics of
Lean Six Sigma in the form of information integrity performance measurement
sequential production point-of-use logistic cycle time management production linearity
and resource planning and customer satisfaction [134]
Brehm L and Markus M L (2000) in The Divided Software Life Cycle of ERP
Packages mentioned that traditional information system life cycle (SLC) focuses on the
activities performed by company developing implementing and maintaining software for
its own internal use Enterprise resource planning (ERP) software packages change the
SLC in several important ways This paper presents an extension of the SLC model for
ERP packages The lsquodivided software life cyclersquo (DSLC) model features an equal
emphasis on the activities performed by the ERP adopting company and the ERP vendor
[15]
Alavi M and Carlson P (1992) A Review of MIS research and disciplinary
development The perceived status of journals in which MIS research is published is an
important issue to academics The number of IS-related journals has increased through
the years yet it is not obvious which are the ldquoleadingrdquo journals or what criteria should be
used to determine this This article addresses these issues by (1) evaluating and
analyzing previous studies in which MIS related journals have been ranked (2)
determining top-ranked journals and placing them into two levels or tiers based on
previous studies and (3) establishing a profile through a systematic analysis of the nine
journals in the first tier This study identified 17 highly ranked journals for publication
Nine were placed in the first tier and eight in the second tier In addition to IS-specific
journals publications included management science computer science and business-
oriented journals The individual strategies for improving software productivity are
identified Issues related to software costs and controlling them are examined and
discussed It is pointed out that a good framework of techniques exists for controlling
software budgets schedules and work completed but that a great deal of further progress
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 29
40
In the paper study ldquoSignificance of Software Metrics in ERP Projectsrdquo S Parthasarathy
and N Anbazhagan (2006) narrate that ERP projects are a subclass of software projects
often accompanied by large-scale organizational changes One of the major reasons found
in the literature for the failure of ERP projects is the poor management of software
processes In this paper we propose a Software Metrics Plan (SNP) containing different
software metrics to manage software processes during ERP implementation Two
hypotheses have been formulated and tested using statistical techniques to validate the
SNP The statistical analysis of the collected data from an ERP project supports the two
hypotheses leading to the conclusion that the software metrics are momentous in ERP
projects [84]
Antony Marsh (2000) in the article ldquoThe implementation of Enterprise Resource Planning
systems in small and medium Manufacturing enterprises in south-east Queensland a case
study approachrdquo examines the implementation of ERP systems in smallmedium-sized
enterprises in South East Queensland Australia Nine case studies were conducted to
determine factors for success or failure in the implementations Key success factors
identified included cross-functional team approaches organizational experience of
similar scale IT or organizational change projects and lsquodeeprsquo understanding of the key
issues relating to ERP implementations Failure factors identified included top-down or
consultant driven implementations IT department driven implementations or
implementations where the EFV is seen as a quick technological fix to problems within
the operation of the firm rather than as a strategic investment [78]
Christian Doumlrner Sebastian Draxler Volkmar Pipek and Volker Wulf (2009) through
their study ldquoEnd Users at the Bazaar Designing Next-Generation Enterprise Resource
Planning Systemsrdquo propose that the bazaar metaphor has developed a lasting
popularity in software engineering especially as software architectures have evolved
from monoliths to service orientation Nevertheless the metaphor is limited because it
doesnt consider end users those who develop software for themselves Introducing such
an end user the prosumer to the bazaar not only suggests a changing division of work
in software development but also calls for different functionality and architectural
choices The authors evaluated changing software architectures from an end-user
development (EUD) perspective taking the case of enterprise resource planning (ERP)
41
systems as traditionally monolithically designed systems moving toward service
orientation On the basis of the studys findings which indicated problems with the
systems technical flexibility the authors developed a tool set for fostering EUD
activities Their new architecture for ERP systems enables end users to create their own
solutions [31]
Kenny KF Lee (2000) in ldquoThe Five Disciplines of ERP Software Implementationrdquo has
identified the critical factors in businesses which learn grow and succeed This paper
applies the central concepts of the book its five disciplines to the software business
specifically the management of software implementation Using the learning challenge
posed by the organization-wide implementation of Enterprise Resource Systems (Em) the
paper covers how EM software project leaders may manage themselves their teams
business vision and corporate culture and team members to create a survival machine
which can thrive in the current economic and technological climate [67]
Piet MA Ribbers amp Schoo (2000) in his paper ldquoDesigning Complex Software
Implementation Programsrdquo raises a central question that how one can design of Program
Management contributes to the success of complex software implementations
Incomplete goal specifications lack of communication and underestimation of project
complexity are signs of insufficient program and project management To avoid these
pitfalls he proposes ways that have worked well in recent complex multi-project ERP
implementations (programs) Answering the above question raises the problem of
adequately defining and measuring the level of complexity of an implementation
program A conceptual model was developed which identifies program management
factors that are proposed to have an impact on implementation success Fifteen cases
were studied to find support for the proposed framework [88]
ldquoDetecting Gaps between ERP Software and Organizational Needs A Semantic
Similarity Based Approachrdquo is very relevant and contemporary paper presented by Gao
Juntao and Zhang Li (2008) It depicts that Gap analysis is one of the most important
phases in implementation of enterprise resource planning (ERP) system In this paper an
approach is proposed to automatically detect gaps between software capacities and
organizational needs based on semantic similarity computation The approach takes two
business process models as input and one specifies software capacities and the other
42
describes organizational needs The output of it is a report of gaps As a matter of fact
the differences between application domain and software discipline make semantic
heterogeneity a key problem in gap detection therefore the technologies of semantic
similarity computing are employed to resolve ambiguity issues caused by the use of
synonyms or homonyms In particular the idea of similarity propagation is introduced to
pick out a mapping between corresponding activities and data and Hungarian algorithm
is employed to reduce its time complexity Then the similarity of whole models is
measured according to the minimal total cost of change operations Finally an
experiment is given to evaluate the method [36]
In the research publication ldquoERP System Adoption - Does the Size Matterrdquo Sanna
Laukkanen Sami Sarpola and Petri Hallikainen (2005) investigate the relationship of
enterprise size to the constraints and objectives of ERP systems adoption The survey
data based on the responses of 44 companies indicates that significant differences exist
between small medium-sized and large enterprises in ERP system adoption Specifically
the findings suggest that small companies experience more knowledge constraints than
their larger counterparts in ERP adoption Further while being the most prevalent
objective for ERP adoption in all the company groups business development through
ERP adoption is considered especially important by the medium-sized and large
enterprises Finally the findings of the study suggest that instead of considering small
and medium-sized enterprises as one homogenous group the differences between these
two groups of companies should be acknowledged in the future research [65]
In their paper ldquoModel Based on CSCWrdquo Wedian Liang XuFen Zhenkun Li Rong Xiao
JunFeng Hu (2005) summarise their finding They feel that Software testing is an
important component of the software engineering and an important link that the software
development quality is guaranteed Using the reasonable model for software testing can
reduce the expenses of testing in the developing activity in the course of testing thus cut
down the cost of software development In this paper we put forward a model for
software testing bused on CSCW technology that run through each stages of software
development cycle If can find the mistake in the software as soon as possible has
shorten the time taken for testing in the course of the development of software testing
43
effectively Finally we applied the model to the testing project which develops ERP
system and then receive the ideal result [118]
In their paper ldquoThe Research and Development of IMIS for Small and Medium-sized
Printing Enterpriserdquo Taolin Ma Xiaoming Chen Yansong Sun Xiurong Li (2009)
analyzed the fact that the basic management thought of inventory management
information system (IMIS) was established by analyzing the inventory management
theory of modern enterprise In this system which using the architecture of CS the stores
were classified by ABC management method the inventory control was completed by
setting up the safety stock and the largest stock the analysis and design of IMIS were
finished This IMIS was developed to meet the practical requirements of small and
medium-sized printing enterprise in our country It can not only be used as the important
measure of the informationized construction for small and medium sized printing
enterprise but also used as a subsystem of enterprise ERP system IMIS could improve
enterprise management level realize rapid transformation of enterprise and finally
enhance the competitiveness of enterprise in market economy [106]
Jiangao Deng and Yijie Bian (2008) in the research paper ldquoConstructing a Risk
Management Mechanism Model of ERP Projectrdquo mention that in the process of
information project implementation of manufacturing enterprises there are many risks to
set up a set of risk management mechanism is guaranteed for them to succeed in ERP
implementation Firstly based on the analysis of ERP project implementation of China
the paper introduced the risk management methodology systems and the relative model
which includes three main steps identifying risk evaluating risk and controlling risk
After that on the aspects of decision implementation and application stages of
manufacturing ERP project life cycle the paper discussed risks of each stage and put
forward a two-dimension matrix risk management strategy Then a mechanism model of
ERP project risk management is constructed which shows that information risk control
strategies of the last two stages not only depend on resources of these stages but also
have a diverse relationship with the last stage Finally according to the successful
implementation of an enterprisersquos ERP project the paper carried out an effective case
application analysis of risk management mechanism model The lack of improvement in
usersrsquo ERP skill levels and the shortage in documenting the rationale for business rules
44
and configuration decisions were among the critical issues of the post-implementation
stage Indeed all of their respondents stressed the importance of refreshing the usersrsquo
knowledge about the system [28]
Saumyendu Ghosh (2003) in ldquoGlobal Implementation of ERP Software ndash Critical Success
Factors on Upgrading Technical Infrastructurerdquo discusses that implementing an
Enterprise Resource planning (ERP) software in a global environment executive
sponsors face two key challenges While business processes are to be re-engineered to
align with the ERP software best practices technical architecture and infrastructure needs
to be in place globally as per specifications of the packaged software In the legacy
environment different countries or different business units use different systems based
on local standards supported by local resources In the new ERP world globally all the
countries must conform to same technical infrastructure Technical managers face
multiple critical issues implementing a global solution Most of the ERP software is
developed in technically advanced countries standards are often too high for under
developed or developing countries In an effort to bring the global organization to a
common platform different countries need different levels of upgrades In this paper the
authors review key technical issues faced is a global upgrade process to support a global
ERP implementation and how to resolve those We conclude although technical
infrastructure and business process reengineering both are equally important and each
implementation is unique but following some simple steps it is easy to prioritize each
ones during different phases of the project Also time lines of two sub-projects must
converge after initial phase and must follow a common plan for the project to be
successful Multiple scenarios are described to facilitate the process He concludes
although technical infrastructure and business process reengineering both are equally
important and each implementation is unique but following some simple steps it is easy
to prioritize each ones during different phases of the project Also time lines of two
subprojects must converge after initial phase and must follow a common plan for the
project to be successful Multiple scenarios are described to facilitate the process [38]
Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008) ldquoDevelopment and
Implementation of ERPCRM System Based on Open Source Software to Small and
Medium-sized Enterprise in Chinardquo analysed the fact that E-commerce and the
45
development of modern enterprise management raise a number of challenges in the
process of informatization of small and medium-sized enterprises (SME) in china To
address this they present an approach in which the informatization is enhanced by using
Open Source Software with customized policies We analyses the main
informationization obstacles of SME in china bring forward that the lack of bankroll
talents cost and management etc are the key problems to informationization of SME
Furthermore they have developed a textile foreign trade ERP CRM system based on
Open Source Software for the local textile distributor of china integrating financial
distribution sales and service processes given the implement method of overall planning
step-by-step implementation key breakthrough and efficiency guiding In the end we
compare the typical Open Source Software and traditional commercial software point
out the advantages of informatization based Open Source Software to SME in china and
the development trend of Open Source Software for enterprise application [132]
ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information Systems ndash a
Multi-disciplinary Method for ERP System Requirements Engineeringrdquo by Inka Vilpola
Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that ERP systems are in
most cases off-the-shelf software packages and large by their size and complex by their
structure Small and medium-sized enterprises (SMEs) require flexibility of the ERP
system because of their individual operational processes Therefore it is crucial to select
and implement an ERP system that fits the requirements of the intended target processes
To support the requirements engineering of ERP systems we have developed Customer-
Centered ERP Implementation (C-CEI) method The method introduces a multi-
disciplinary approach to the ERP project and provides in-depth understanding of the
companylsquos processes and context of use Using C-CEI method decreases the risk of
SMEs to select an inappropriate system and improves the system acceptance by the
customer companyrsquos employees In this paper we present the method and illustrate it by
three SME case studies [114]
Saumyendu Ghosh (2000) in ldquoChallenges on a global implementation of ERP softwarerdquo
discusses that some of the unique challenges in ERP implementation are satisfying
multiple countries statutory requirements and reporting to the corporate head quarters
from one installation of the software conflicting interests between different business
46
entities lack of experienced implementators in all the countries and eminent users of
multinational advantages He discusses different aspects of these challenges in detail and
point out that ERP software can provide only one solution for a particular business
process unless workarounds are available from experienced implementation Different
counties adopt different reporting and accounting practices and therefore an ERP
implementation cannot solve all problems that global corporation may have multiple
countries in the scope of the project due to absence of standard global processes across
the organization He concludes that the most important critical success factor of these
international implementations are how quickly these corporations can reengineer existing
business process to adopt best practices of using an ERP system [38]
Dong Cheng Feiyan Deng Hongtao Li (2006) ldquoCritical Factors for Successful
Implementation of ERP in Chinardquo in their study propound a theoretical model for
successful implementation of Enterprise Resource Planning (ERP) under Chinarsquos
environment and the authors analyze the model empirically through structural equation
modeling The authors find that strategically IT planning abilities leadershiprsquos support
and the skills of IT section business processing abilities learning abilities and change
management abilities has a significant positive impact on successful ERP implementation
[22]
Parijat Upadhyay (2008) in his research studies ldquoAn explorative study to identify the
Critical Success Factors for ERP Implementation in Indian small and medium scale
enterprisesrdquo explores the existing literature on ERP implementation issues in context to
small and medium scale enterprises and attempts a compilation of the factors that assume
great significance while implementing ERP in SMErsquos Given the nature and magnitude of
the problems in encountered in implementing an ERP project this study would attempt to
identify the critical success factors(CSFrsquos) for a successful implementation of an ERP
project since it calls for substantial effort on the part of all the stake holders involved to
make the implementation a success [111]
ldquoThe ERP Implementation of SME in Chinardquo Yuanqiang Xia Peter Lok and Song Yang
(2009) presented the fact that ERP implementing for small and middle size enterprise
(SME) is different from the large one Based on the analysis on the character of ERP
marketing and SMEs of China 6 critical success factors are recommended The research
47
suggests that the top management support is most important to ERP implement in SME
of China in which paternalism prevails Database of management and capital are main
obstacles ERP 1 or ERP 2 fits to demand of SME high power project team has
tremendous significance in the situation of absence of IT engineer for SME education
and training is helpful to successfully ERP implementing The results service as better
understanding the ERP implementation of SME in China and gaining the good
performance of ERP implementation [126]
Yan Xu and Chung-Hsing Yeh (2009) in the article ldquoStrategic Management of
Performance Measures for an ERP Implementation Project Teamrdquo present a new
evaluation model for managing performance measures of an enterprise resource planning
(ERP) implementation project team in an organization With the performance measures
classified into four strategic perspectives of the balanced scorecard the evaluation model
enables the goal alignment between the project team and the organization A new
algorithm using the concept of multi-attribute decision making is developed to obtain the
relative importance value for each performance measure for its contribution to the
strategic goals of the organization The higher the importance values of a performance
measure the more important the role it plays in determining the responsibilities of the
corresponding project team player Understanding the importance of the key performance
measures will help an organization well-prepare to launch a project and have the project
being organized in advance A case of an ERP implementation project in an integrated
manufacturing corporation is presented to demonstrate the applicability of the evaluation
model and its effective management of the performance measures [124]
Zhang Yanhong (2009) in his research paper ldquoERP Implementation Process Analysis
Based on the Key Success Factorsrdquo describes that Enterprise Resource Planning (ERP) is
an amalgamation of a companys information systems designed to bind more closely a
variety of company functions including human resources inventories and financials
while simultaneously linking the company to customers and vendors This thesis is based
on the theory of product life cycle and the process of ERP is divided into four phase
planning implementation stabilization and improvement Critical success factors in each
phase are identified by paper research case study and investigation An ERP
implementation process model based on the critical Success factors (CSFs) is proposed in
48
the paper The thesis analyzes the global planning stages and business process rebuilding
in the process of QIHE pharmaceuticals ERP Improvement on management and
financing before and after ERP implementation are contrasted and we come to the
following conclusions (1) The CSFs in the planning phase is comprehensive
investigation and evaluation (2) The CSFs in the implementation phase is effective
project management team (3) The CSFs in the stabilization phase is appropriate
information management system (4) The CSFs in the improvement phase is change on
demand and continue to innovate (5) The CSFs throughout the product life cycle is
business process rebuilding [131]
Van Stijn E and Wensley A (2001) ldquoOrganizational memory and the completeness of
process modeling in ERP systems some concerns methods and directions for future
researchrdquo mentioned that Enterprise resource planning (ERP) systems not only have a
broad functional scope promising to support many different business processes they also
embed many different aspects of the companyrsquos organizational memory Disparities can
exist between those memory contents in the ERP system and related contents in other
memory media such as individualsrsquo memories and the organizational structure and
culture It is our contention that in general these disparities or memory mismatches as
we will refer to them lead to under-performance of ERP systems In this paper they focus
on potential memory mismatches that may arise with respect to the embedding of process
knowledge within ERP packages Packages such as SAP provide a varied and rich
environment for process modeling However they suspect that there are still many
instances where process knowledge is either lost or represented in different ways in
different parts of the organization The overall thrust of the paper is to identify a variety
of concerns intriguing questions and avenues for future research [112]
Eric Kimberling (2008) in his article ldquo The Role of Lean Six Sigma in ERPrdquo insisted
that there are a number of things to consider when considering a new ERP system like six
sigma lean manufacturing or other business transformation projects that has the capacity
to measure reducing waste managing change well continuous improvement etc [133]
William H Gaw (2010) ldquoEight Basics of Lean Six Sigma for Manufacturing Firmsrdquo In
the efforts to draw closer to customers many manufacturers have lost focus on what
should be a companyrsquos primary success factor ndash profitable growth In todayrsquos competitive
49
manufacturing environment it takes more than quick fixes outsourcing and downsizing
for companies to consistently achieve their growth and profit objectives While these
options may yield temporary financial relief they will not lead the way to long-term
growth and profitability For companies to grow and consistently exceed bottom line
expectations they need to get lean And to get lean they should master eight basics of
Lean Six Sigma in the form of information integrity performance measurement
sequential production point-of-use logistic cycle time management production linearity
and resource planning and customer satisfaction [134]
Brehm L and Markus M L (2000) in The Divided Software Life Cycle of ERP
Packages mentioned that traditional information system life cycle (SLC) focuses on the
activities performed by company developing implementing and maintaining software for
its own internal use Enterprise resource planning (ERP) software packages change the
SLC in several important ways This paper presents an extension of the SLC model for
ERP packages The lsquodivided software life cyclersquo (DSLC) model features an equal
emphasis on the activities performed by the ERP adopting company and the ERP vendor
[15]
Alavi M and Carlson P (1992) A Review of MIS research and disciplinary
development The perceived status of journals in which MIS research is published is an
important issue to academics The number of IS-related journals has increased through
the years yet it is not obvious which are the ldquoleadingrdquo journals or what criteria should be
used to determine this This article addresses these issues by (1) evaluating and
analyzing previous studies in which MIS related journals have been ranked (2)
determining top-ranked journals and placing them into two levels or tiers based on
previous studies and (3) establishing a profile through a systematic analysis of the nine
journals in the first tier This study identified 17 highly ranked journals for publication
Nine were placed in the first tier and eight in the second tier In addition to IS-specific
journals publications included management science computer science and business-
oriented journals The individual strategies for improving software productivity are
identified Issues related to software costs and controlling them are examined and
discussed It is pointed out that a good framework of techniques exists for controlling
software budgets schedules and work completed but that a great deal of further progress
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 30
41
systems as traditionally monolithically designed systems moving toward service
orientation On the basis of the studys findings which indicated problems with the
systems technical flexibility the authors developed a tool set for fostering EUD
activities Their new architecture for ERP systems enables end users to create their own
solutions [31]
Kenny KF Lee (2000) in ldquoThe Five Disciplines of ERP Software Implementationrdquo has
identified the critical factors in businesses which learn grow and succeed This paper
applies the central concepts of the book its five disciplines to the software business
specifically the management of software implementation Using the learning challenge
posed by the organization-wide implementation of Enterprise Resource Systems (Em) the
paper covers how EM software project leaders may manage themselves their teams
business vision and corporate culture and team members to create a survival machine
which can thrive in the current economic and technological climate [67]
Piet MA Ribbers amp Schoo (2000) in his paper ldquoDesigning Complex Software
Implementation Programsrdquo raises a central question that how one can design of Program
Management contributes to the success of complex software implementations
Incomplete goal specifications lack of communication and underestimation of project
complexity are signs of insufficient program and project management To avoid these
pitfalls he proposes ways that have worked well in recent complex multi-project ERP
implementations (programs) Answering the above question raises the problem of
adequately defining and measuring the level of complexity of an implementation
program A conceptual model was developed which identifies program management
factors that are proposed to have an impact on implementation success Fifteen cases
were studied to find support for the proposed framework [88]
ldquoDetecting Gaps between ERP Software and Organizational Needs A Semantic
Similarity Based Approachrdquo is very relevant and contemporary paper presented by Gao
Juntao and Zhang Li (2008) It depicts that Gap analysis is one of the most important
phases in implementation of enterprise resource planning (ERP) system In this paper an
approach is proposed to automatically detect gaps between software capacities and
organizational needs based on semantic similarity computation The approach takes two
business process models as input and one specifies software capacities and the other
42
describes organizational needs The output of it is a report of gaps As a matter of fact
the differences between application domain and software discipline make semantic
heterogeneity a key problem in gap detection therefore the technologies of semantic
similarity computing are employed to resolve ambiguity issues caused by the use of
synonyms or homonyms In particular the idea of similarity propagation is introduced to
pick out a mapping between corresponding activities and data and Hungarian algorithm
is employed to reduce its time complexity Then the similarity of whole models is
measured according to the minimal total cost of change operations Finally an
experiment is given to evaluate the method [36]
In the research publication ldquoERP System Adoption - Does the Size Matterrdquo Sanna
Laukkanen Sami Sarpola and Petri Hallikainen (2005) investigate the relationship of
enterprise size to the constraints and objectives of ERP systems adoption The survey
data based on the responses of 44 companies indicates that significant differences exist
between small medium-sized and large enterprises in ERP system adoption Specifically
the findings suggest that small companies experience more knowledge constraints than
their larger counterparts in ERP adoption Further while being the most prevalent
objective for ERP adoption in all the company groups business development through
ERP adoption is considered especially important by the medium-sized and large
enterprises Finally the findings of the study suggest that instead of considering small
and medium-sized enterprises as one homogenous group the differences between these
two groups of companies should be acknowledged in the future research [65]
In their paper ldquoModel Based on CSCWrdquo Wedian Liang XuFen Zhenkun Li Rong Xiao
JunFeng Hu (2005) summarise their finding They feel that Software testing is an
important component of the software engineering and an important link that the software
development quality is guaranteed Using the reasonable model for software testing can
reduce the expenses of testing in the developing activity in the course of testing thus cut
down the cost of software development In this paper we put forward a model for
software testing bused on CSCW technology that run through each stages of software
development cycle If can find the mistake in the software as soon as possible has
shorten the time taken for testing in the course of the development of software testing
43
effectively Finally we applied the model to the testing project which develops ERP
system and then receive the ideal result [118]
In their paper ldquoThe Research and Development of IMIS for Small and Medium-sized
Printing Enterpriserdquo Taolin Ma Xiaoming Chen Yansong Sun Xiurong Li (2009)
analyzed the fact that the basic management thought of inventory management
information system (IMIS) was established by analyzing the inventory management
theory of modern enterprise In this system which using the architecture of CS the stores
were classified by ABC management method the inventory control was completed by
setting up the safety stock and the largest stock the analysis and design of IMIS were
finished This IMIS was developed to meet the practical requirements of small and
medium-sized printing enterprise in our country It can not only be used as the important
measure of the informationized construction for small and medium sized printing
enterprise but also used as a subsystem of enterprise ERP system IMIS could improve
enterprise management level realize rapid transformation of enterprise and finally
enhance the competitiveness of enterprise in market economy [106]
Jiangao Deng and Yijie Bian (2008) in the research paper ldquoConstructing a Risk
Management Mechanism Model of ERP Projectrdquo mention that in the process of
information project implementation of manufacturing enterprises there are many risks to
set up a set of risk management mechanism is guaranteed for them to succeed in ERP
implementation Firstly based on the analysis of ERP project implementation of China
the paper introduced the risk management methodology systems and the relative model
which includes three main steps identifying risk evaluating risk and controlling risk
After that on the aspects of decision implementation and application stages of
manufacturing ERP project life cycle the paper discussed risks of each stage and put
forward a two-dimension matrix risk management strategy Then a mechanism model of
ERP project risk management is constructed which shows that information risk control
strategies of the last two stages not only depend on resources of these stages but also
have a diverse relationship with the last stage Finally according to the successful
implementation of an enterprisersquos ERP project the paper carried out an effective case
application analysis of risk management mechanism model The lack of improvement in
usersrsquo ERP skill levels and the shortage in documenting the rationale for business rules
44
and configuration decisions were among the critical issues of the post-implementation
stage Indeed all of their respondents stressed the importance of refreshing the usersrsquo
knowledge about the system [28]
Saumyendu Ghosh (2003) in ldquoGlobal Implementation of ERP Software ndash Critical Success
Factors on Upgrading Technical Infrastructurerdquo discusses that implementing an
Enterprise Resource planning (ERP) software in a global environment executive
sponsors face two key challenges While business processes are to be re-engineered to
align with the ERP software best practices technical architecture and infrastructure needs
to be in place globally as per specifications of the packaged software In the legacy
environment different countries or different business units use different systems based
on local standards supported by local resources In the new ERP world globally all the
countries must conform to same technical infrastructure Technical managers face
multiple critical issues implementing a global solution Most of the ERP software is
developed in technically advanced countries standards are often too high for under
developed or developing countries In an effort to bring the global organization to a
common platform different countries need different levels of upgrades In this paper the
authors review key technical issues faced is a global upgrade process to support a global
ERP implementation and how to resolve those We conclude although technical
infrastructure and business process reengineering both are equally important and each
implementation is unique but following some simple steps it is easy to prioritize each
ones during different phases of the project Also time lines of two sub-projects must
converge after initial phase and must follow a common plan for the project to be
successful Multiple scenarios are described to facilitate the process He concludes
although technical infrastructure and business process reengineering both are equally
important and each implementation is unique but following some simple steps it is easy
to prioritize each ones during different phases of the project Also time lines of two
subprojects must converge after initial phase and must follow a common plan for the
project to be successful Multiple scenarios are described to facilitate the process [38]
Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008) ldquoDevelopment and
Implementation of ERPCRM System Based on Open Source Software to Small and
Medium-sized Enterprise in Chinardquo analysed the fact that E-commerce and the
45
development of modern enterprise management raise a number of challenges in the
process of informatization of small and medium-sized enterprises (SME) in china To
address this they present an approach in which the informatization is enhanced by using
Open Source Software with customized policies We analyses the main
informationization obstacles of SME in china bring forward that the lack of bankroll
talents cost and management etc are the key problems to informationization of SME
Furthermore they have developed a textile foreign trade ERP CRM system based on
Open Source Software for the local textile distributor of china integrating financial
distribution sales and service processes given the implement method of overall planning
step-by-step implementation key breakthrough and efficiency guiding In the end we
compare the typical Open Source Software and traditional commercial software point
out the advantages of informatization based Open Source Software to SME in china and
the development trend of Open Source Software for enterprise application [132]
ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information Systems ndash a
Multi-disciplinary Method for ERP System Requirements Engineeringrdquo by Inka Vilpola
Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that ERP systems are in
most cases off-the-shelf software packages and large by their size and complex by their
structure Small and medium-sized enterprises (SMEs) require flexibility of the ERP
system because of their individual operational processes Therefore it is crucial to select
and implement an ERP system that fits the requirements of the intended target processes
To support the requirements engineering of ERP systems we have developed Customer-
Centered ERP Implementation (C-CEI) method The method introduces a multi-
disciplinary approach to the ERP project and provides in-depth understanding of the
companylsquos processes and context of use Using C-CEI method decreases the risk of
SMEs to select an inappropriate system and improves the system acceptance by the
customer companyrsquos employees In this paper we present the method and illustrate it by
three SME case studies [114]
Saumyendu Ghosh (2000) in ldquoChallenges on a global implementation of ERP softwarerdquo
discusses that some of the unique challenges in ERP implementation are satisfying
multiple countries statutory requirements and reporting to the corporate head quarters
from one installation of the software conflicting interests between different business
46
entities lack of experienced implementators in all the countries and eminent users of
multinational advantages He discusses different aspects of these challenges in detail and
point out that ERP software can provide only one solution for a particular business
process unless workarounds are available from experienced implementation Different
counties adopt different reporting and accounting practices and therefore an ERP
implementation cannot solve all problems that global corporation may have multiple
countries in the scope of the project due to absence of standard global processes across
the organization He concludes that the most important critical success factor of these
international implementations are how quickly these corporations can reengineer existing
business process to adopt best practices of using an ERP system [38]
Dong Cheng Feiyan Deng Hongtao Li (2006) ldquoCritical Factors for Successful
Implementation of ERP in Chinardquo in their study propound a theoretical model for
successful implementation of Enterprise Resource Planning (ERP) under Chinarsquos
environment and the authors analyze the model empirically through structural equation
modeling The authors find that strategically IT planning abilities leadershiprsquos support
and the skills of IT section business processing abilities learning abilities and change
management abilities has a significant positive impact on successful ERP implementation
[22]
Parijat Upadhyay (2008) in his research studies ldquoAn explorative study to identify the
Critical Success Factors for ERP Implementation in Indian small and medium scale
enterprisesrdquo explores the existing literature on ERP implementation issues in context to
small and medium scale enterprises and attempts a compilation of the factors that assume
great significance while implementing ERP in SMErsquos Given the nature and magnitude of
the problems in encountered in implementing an ERP project this study would attempt to
identify the critical success factors(CSFrsquos) for a successful implementation of an ERP
project since it calls for substantial effort on the part of all the stake holders involved to
make the implementation a success [111]
ldquoThe ERP Implementation of SME in Chinardquo Yuanqiang Xia Peter Lok and Song Yang
(2009) presented the fact that ERP implementing for small and middle size enterprise
(SME) is different from the large one Based on the analysis on the character of ERP
marketing and SMEs of China 6 critical success factors are recommended The research
47
suggests that the top management support is most important to ERP implement in SME
of China in which paternalism prevails Database of management and capital are main
obstacles ERP 1 or ERP 2 fits to demand of SME high power project team has
tremendous significance in the situation of absence of IT engineer for SME education
and training is helpful to successfully ERP implementing The results service as better
understanding the ERP implementation of SME in China and gaining the good
performance of ERP implementation [126]
Yan Xu and Chung-Hsing Yeh (2009) in the article ldquoStrategic Management of
Performance Measures for an ERP Implementation Project Teamrdquo present a new
evaluation model for managing performance measures of an enterprise resource planning
(ERP) implementation project team in an organization With the performance measures
classified into four strategic perspectives of the balanced scorecard the evaluation model
enables the goal alignment between the project team and the organization A new
algorithm using the concept of multi-attribute decision making is developed to obtain the
relative importance value for each performance measure for its contribution to the
strategic goals of the organization The higher the importance values of a performance
measure the more important the role it plays in determining the responsibilities of the
corresponding project team player Understanding the importance of the key performance
measures will help an organization well-prepare to launch a project and have the project
being organized in advance A case of an ERP implementation project in an integrated
manufacturing corporation is presented to demonstrate the applicability of the evaluation
model and its effective management of the performance measures [124]
Zhang Yanhong (2009) in his research paper ldquoERP Implementation Process Analysis
Based on the Key Success Factorsrdquo describes that Enterprise Resource Planning (ERP) is
an amalgamation of a companys information systems designed to bind more closely a
variety of company functions including human resources inventories and financials
while simultaneously linking the company to customers and vendors This thesis is based
on the theory of product life cycle and the process of ERP is divided into four phase
planning implementation stabilization and improvement Critical success factors in each
phase are identified by paper research case study and investigation An ERP
implementation process model based on the critical Success factors (CSFs) is proposed in
48
the paper The thesis analyzes the global planning stages and business process rebuilding
in the process of QIHE pharmaceuticals ERP Improvement on management and
financing before and after ERP implementation are contrasted and we come to the
following conclusions (1) The CSFs in the planning phase is comprehensive
investigation and evaluation (2) The CSFs in the implementation phase is effective
project management team (3) The CSFs in the stabilization phase is appropriate
information management system (4) The CSFs in the improvement phase is change on
demand and continue to innovate (5) The CSFs throughout the product life cycle is
business process rebuilding [131]
Van Stijn E and Wensley A (2001) ldquoOrganizational memory and the completeness of
process modeling in ERP systems some concerns methods and directions for future
researchrdquo mentioned that Enterprise resource planning (ERP) systems not only have a
broad functional scope promising to support many different business processes they also
embed many different aspects of the companyrsquos organizational memory Disparities can
exist between those memory contents in the ERP system and related contents in other
memory media such as individualsrsquo memories and the organizational structure and
culture It is our contention that in general these disparities or memory mismatches as
we will refer to them lead to under-performance of ERP systems In this paper they focus
on potential memory mismatches that may arise with respect to the embedding of process
knowledge within ERP packages Packages such as SAP provide a varied and rich
environment for process modeling However they suspect that there are still many
instances where process knowledge is either lost or represented in different ways in
different parts of the organization The overall thrust of the paper is to identify a variety
of concerns intriguing questions and avenues for future research [112]
Eric Kimberling (2008) in his article ldquo The Role of Lean Six Sigma in ERPrdquo insisted
that there are a number of things to consider when considering a new ERP system like six
sigma lean manufacturing or other business transformation projects that has the capacity
to measure reducing waste managing change well continuous improvement etc [133]
William H Gaw (2010) ldquoEight Basics of Lean Six Sigma for Manufacturing Firmsrdquo In
the efforts to draw closer to customers many manufacturers have lost focus on what
should be a companyrsquos primary success factor ndash profitable growth In todayrsquos competitive
49
manufacturing environment it takes more than quick fixes outsourcing and downsizing
for companies to consistently achieve their growth and profit objectives While these
options may yield temporary financial relief they will not lead the way to long-term
growth and profitability For companies to grow and consistently exceed bottom line
expectations they need to get lean And to get lean they should master eight basics of
Lean Six Sigma in the form of information integrity performance measurement
sequential production point-of-use logistic cycle time management production linearity
and resource planning and customer satisfaction [134]
Brehm L and Markus M L (2000) in The Divided Software Life Cycle of ERP
Packages mentioned that traditional information system life cycle (SLC) focuses on the
activities performed by company developing implementing and maintaining software for
its own internal use Enterprise resource planning (ERP) software packages change the
SLC in several important ways This paper presents an extension of the SLC model for
ERP packages The lsquodivided software life cyclersquo (DSLC) model features an equal
emphasis on the activities performed by the ERP adopting company and the ERP vendor
[15]
Alavi M and Carlson P (1992) A Review of MIS research and disciplinary
development The perceived status of journals in which MIS research is published is an
important issue to academics The number of IS-related journals has increased through
the years yet it is not obvious which are the ldquoleadingrdquo journals or what criteria should be
used to determine this This article addresses these issues by (1) evaluating and
analyzing previous studies in which MIS related journals have been ranked (2)
determining top-ranked journals and placing them into two levels or tiers based on
previous studies and (3) establishing a profile through a systematic analysis of the nine
journals in the first tier This study identified 17 highly ranked journals for publication
Nine were placed in the first tier and eight in the second tier In addition to IS-specific
journals publications included management science computer science and business-
oriented journals The individual strategies for improving software productivity are
identified Issues related to software costs and controlling them are examined and
discussed It is pointed out that a good framework of techniques exists for controlling
software budgets schedules and work completed but that a great deal of further progress
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 31
42
describes organizational needs The output of it is a report of gaps As a matter of fact
the differences between application domain and software discipline make semantic
heterogeneity a key problem in gap detection therefore the technologies of semantic
similarity computing are employed to resolve ambiguity issues caused by the use of
synonyms or homonyms In particular the idea of similarity propagation is introduced to
pick out a mapping between corresponding activities and data and Hungarian algorithm
is employed to reduce its time complexity Then the similarity of whole models is
measured according to the minimal total cost of change operations Finally an
experiment is given to evaluate the method [36]
In the research publication ldquoERP System Adoption - Does the Size Matterrdquo Sanna
Laukkanen Sami Sarpola and Petri Hallikainen (2005) investigate the relationship of
enterprise size to the constraints and objectives of ERP systems adoption The survey
data based on the responses of 44 companies indicates that significant differences exist
between small medium-sized and large enterprises in ERP system adoption Specifically
the findings suggest that small companies experience more knowledge constraints than
their larger counterparts in ERP adoption Further while being the most prevalent
objective for ERP adoption in all the company groups business development through
ERP adoption is considered especially important by the medium-sized and large
enterprises Finally the findings of the study suggest that instead of considering small
and medium-sized enterprises as one homogenous group the differences between these
two groups of companies should be acknowledged in the future research [65]
In their paper ldquoModel Based on CSCWrdquo Wedian Liang XuFen Zhenkun Li Rong Xiao
JunFeng Hu (2005) summarise their finding They feel that Software testing is an
important component of the software engineering and an important link that the software
development quality is guaranteed Using the reasonable model for software testing can
reduce the expenses of testing in the developing activity in the course of testing thus cut
down the cost of software development In this paper we put forward a model for
software testing bused on CSCW technology that run through each stages of software
development cycle If can find the mistake in the software as soon as possible has
shorten the time taken for testing in the course of the development of software testing
43
effectively Finally we applied the model to the testing project which develops ERP
system and then receive the ideal result [118]
In their paper ldquoThe Research and Development of IMIS for Small and Medium-sized
Printing Enterpriserdquo Taolin Ma Xiaoming Chen Yansong Sun Xiurong Li (2009)
analyzed the fact that the basic management thought of inventory management
information system (IMIS) was established by analyzing the inventory management
theory of modern enterprise In this system which using the architecture of CS the stores
were classified by ABC management method the inventory control was completed by
setting up the safety stock and the largest stock the analysis and design of IMIS were
finished This IMIS was developed to meet the practical requirements of small and
medium-sized printing enterprise in our country It can not only be used as the important
measure of the informationized construction for small and medium sized printing
enterprise but also used as a subsystem of enterprise ERP system IMIS could improve
enterprise management level realize rapid transformation of enterprise and finally
enhance the competitiveness of enterprise in market economy [106]
Jiangao Deng and Yijie Bian (2008) in the research paper ldquoConstructing a Risk
Management Mechanism Model of ERP Projectrdquo mention that in the process of
information project implementation of manufacturing enterprises there are many risks to
set up a set of risk management mechanism is guaranteed for them to succeed in ERP
implementation Firstly based on the analysis of ERP project implementation of China
the paper introduced the risk management methodology systems and the relative model
which includes three main steps identifying risk evaluating risk and controlling risk
After that on the aspects of decision implementation and application stages of
manufacturing ERP project life cycle the paper discussed risks of each stage and put
forward a two-dimension matrix risk management strategy Then a mechanism model of
ERP project risk management is constructed which shows that information risk control
strategies of the last two stages not only depend on resources of these stages but also
have a diverse relationship with the last stage Finally according to the successful
implementation of an enterprisersquos ERP project the paper carried out an effective case
application analysis of risk management mechanism model The lack of improvement in
usersrsquo ERP skill levels and the shortage in documenting the rationale for business rules
44
and configuration decisions were among the critical issues of the post-implementation
stage Indeed all of their respondents stressed the importance of refreshing the usersrsquo
knowledge about the system [28]
Saumyendu Ghosh (2003) in ldquoGlobal Implementation of ERP Software ndash Critical Success
Factors on Upgrading Technical Infrastructurerdquo discusses that implementing an
Enterprise Resource planning (ERP) software in a global environment executive
sponsors face two key challenges While business processes are to be re-engineered to
align with the ERP software best practices technical architecture and infrastructure needs
to be in place globally as per specifications of the packaged software In the legacy
environment different countries or different business units use different systems based
on local standards supported by local resources In the new ERP world globally all the
countries must conform to same technical infrastructure Technical managers face
multiple critical issues implementing a global solution Most of the ERP software is
developed in technically advanced countries standards are often too high for under
developed or developing countries In an effort to bring the global organization to a
common platform different countries need different levels of upgrades In this paper the
authors review key technical issues faced is a global upgrade process to support a global
ERP implementation and how to resolve those We conclude although technical
infrastructure and business process reengineering both are equally important and each
implementation is unique but following some simple steps it is easy to prioritize each
ones during different phases of the project Also time lines of two sub-projects must
converge after initial phase and must follow a common plan for the project to be
successful Multiple scenarios are described to facilitate the process He concludes
although technical infrastructure and business process reengineering both are equally
important and each implementation is unique but following some simple steps it is easy
to prioritize each ones during different phases of the project Also time lines of two
subprojects must converge after initial phase and must follow a common plan for the
project to be successful Multiple scenarios are described to facilitate the process [38]
Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008) ldquoDevelopment and
Implementation of ERPCRM System Based on Open Source Software to Small and
Medium-sized Enterprise in Chinardquo analysed the fact that E-commerce and the
45
development of modern enterprise management raise a number of challenges in the
process of informatization of small and medium-sized enterprises (SME) in china To
address this they present an approach in which the informatization is enhanced by using
Open Source Software with customized policies We analyses the main
informationization obstacles of SME in china bring forward that the lack of bankroll
talents cost and management etc are the key problems to informationization of SME
Furthermore they have developed a textile foreign trade ERP CRM system based on
Open Source Software for the local textile distributor of china integrating financial
distribution sales and service processes given the implement method of overall planning
step-by-step implementation key breakthrough and efficiency guiding In the end we
compare the typical Open Source Software and traditional commercial software point
out the advantages of informatization based Open Source Software to SME in china and
the development trend of Open Source Software for enterprise application [132]
ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information Systems ndash a
Multi-disciplinary Method for ERP System Requirements Engineeringrdquo by Inka Vilpola
Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that ERP systems are in
most cases off-the-shelf software packages and large by their size and complex by their
structure Small and medium-sized enterprises (SMEs) require flexibility of the ERP
system because of their individual operational processes Therefore it is crucial to select
and implement an ERP system that fits the requirements of the intended target processes
To support the requirements engineering of ERP systems we have developed Customer-
Centered ERP Implementation (C-CEI) method The method introduces a multi-
disciplinary approach to the ERP project and provides in-depth understanding of the
companylsquos processes and context of use Using C-CEI method decreases the risk of
SMEs to select an inappropriate system and improves the system acceptance by the
customer companyrsquos employees In this paper we present the method and illustrate it by
three SME case studies [114]
Saumyendu Ghosh (2000) in ldquoChallenges on a global implementation of ERP softwarerdquo
discusses that some of the unique challenges in ERP implementation are satisfying
multiple countries statutory requirements and reporting to the corporate head quarters
from one installation of the software conflicting interests between different business
46
entities lack of experienced implementators in all the countries and eminent users of
multinational advantages He discusses different aspects of these challenges in detail and
point out that ERP software can provide only one solution for a particular business
process unless workarounds are available from experienced implementation Different
counties adopt different reporting and accounting practices and therefore an ERP
implementation cannot solve all problems that global corporation may have multiple
countries in the scope of the project due to absence of standard global processes across
the organization He concludes that the most important critical success factor of these
international implementations are how quickly these corporations can reengineer existing
business process to adopt best practices of using an ERP system [38]
Dong Cheng Feiyan Deng Hongtao Li (2006) ldquoCritical Factors for Successful
Implementation of ERP in Chinardquo in their study propound a theoretical model for
successful implementation of Enterprise Resource Planning (ERP) under Chinarsquos
environment and the authors analyze the model empirically through structural equation
modeling The authors find that strategically IT planning abilities leadershiprsquos support
and the skills of IT section business processing abilities learning abilities and change
management abilities has a significant positive impact on successful ERP implementation
[22]
Parijat Upadhyay (2008) in his research studies ldquoAn explorative study to identify the
Critical Success Factors for ERP Implementation in Indian small and medium scale
enterprisesrdquo explores the existing literature on ERP implementation issues in context to
small and medium scale enterprises and attempts a compilation of the factors that assume
great significance while implementing ERP in SMErsquos Given the nature and magnitude of
the problems in encountered in implementing an ERP project this study would attempt to
identify the critical success factors(CSFrsquos) for a successful implementation of an ERP
project since it calls for substantial effort on the part of all the stake holders involved to
make the implementation a success [111]
ldquoThe ERP Implementation of SME in Chinardquo Yuanqiang Xia Peter Lok and Song Yang
(2009) presented the fact that ERP implementing for small and middle size enterprise
(SME) is different from the large one Based on the analysis on the character of ERP
marketing and SMEs of China 6 critical success factors are recommended The research
47
suggests that the top management support is most important to ERP implement in SME
of China in which paternalism prevails Database of management and capital are main
obstacles ERP 1 or ERP 2 fits to demand of SME high power project team has
tremendous significance in the situation of absence of IT engineer for SME education
and training is helpful to successfully ERP implementing The results service as better
understanding the ERP implementation of SME in China and gaining the good
performance of ERP implementation [126]
Yan Xu and Chung-Hsing Yeh (2009) in the article ldquoStrategic Management of
Performance Measures for an ERP Implementation Project Teamrdquo present a new
evaluation model for managing performance measures of an enterprise resource planning
(ERP) implementation project team in an organization With the performance measures
classified into four strategic perspectives of the balanced scorecard the evaluation model
enables the goal alignment between the project team and the organization A new
algorithm using the concept of multi-attribute decision making is developed to obtain the
relative importance value for each performance measure for its contribution to the
strategic goals of the organization The higher the importance values of a performance
measure the more important the role it plays in determining the responsibilities of the
corresponding project team player Understanding the importance of the key performance
measures will help an organization well-prepare to launch a project and have the project
being organized in advance A case of an ERP implementation project in an integrated
manufacturing corporation is presented to demonstrate the applicability of the evaluation
model and its effective management of the performance measures [124]
Zhang Yanhong (2009) in his research paper ldquoERP Implementation Process Analysis
Based on the Key Success Factorsrdquo describes that Enterprise Resource Planning (ERP) is
an amalgamation of a companys information systems designed to bind more closely a
variety of company functions including human resources inventories and financials
while simultaneously linking the company to customers and vendors This thesis is based
on the theory of product life cycle and the process of ERP is divided into four phase
planning implementation stabilization and improvement Critical success factors in each
phase are identified by paper research case study and investigation An ERP
implementation process model based on the critical Success factors (CSFs) is proposed in
48
the paper The thesis analyzes the global planning stages and business process rebuilding
in the process of QIHE pharmaceuticals ERP Improvement on management and
financing before and after ERP implementation are contrasted and we come to the
following conclusions (1) The CSFs in the planning phase is comprehensive
investigation and evaluation (2) The CSFs in the implementation phase is effective
project management team (3) The CSFs in the stabilization phase is appropriate
information management system (4) The CSFs in the improvement phase is change on
demand and continue to innovate (5) The CSFs throughout the product life cycle is
business process rebuilding [131]
Van Stijn E and Wensley A (2001) ldquoOrganizational memory and the completeness of
process modeling in ERP systems some concerns methods and directions for future
researchrdquo mentioned that Enterprise resource planning (ERP) systems not only have a
broad functional scope promising to support many different business processes they also
embed many different aspects of the companyrsquos organizational memory Disparities can
exist between those memory contents in the ERP system and related contents in other
memory media such as individualsrsquo memories and the organizational structure and
culture It is our contention that in general these disparities or memory mismatches as
we will refer to them lead to under-performance of ERP systems In this paper they focus
on potential memory mismatches that may arise with respect to the embedding of process
knowledge within ERP packages Packages such as SAP provide a varied and rich
environment for process modeling However they suspect that there are still many
instances where process knowledge is either lost or represented in different ways in
different parts of the organization The overall thrust of the paper is to identify a variety
of concerns intriguing questions and avenues for future research [112]
Eric Kimberling (2008) in his article ldquo The Role of Lean Six Sigma in ERPrdquo insisted
that there are a number of things to consider when considering a new ERP system like six
sigma lean manufacturing or other business transformation projects that has the capacity
to measure reducing waste managing change well continuous improvement etc [133]
William H Gaw (2010) ldquoEight Basics of Lean Six Sigma for Manufacturing Firmsrdquo In
the efforts to draw closer to customers many manufacturers have lost focus on what
should be a companyrsquos primary success factor ndash profitable growth In todayrsquos competitive
49
manufacturing environment it takes more than quick fixes outsourcing and downsizing
for companies to consistently achieve their growth and profit objectives While these
options may yield temporary financial relief they will not lead the way to long-term
growth and profitability For companies to grow and consistently exceed bottom line
expectations they need to get lean And to get lean they should master eight basics of
Lean Six Sigma in the form of information integrity performance measurement
sequential production point-of-use logistic cycle time management production linearity
and resource planning and customer satisfaction [134]
Brehm L and Markus M L (2000) in The Divided Software Life Cycle of ERP
Packages mentioned that traditional information system life cycle (SLC) focuses on the
activities performed by company developing implementing and maintaining software for
its own internal use Enterprise resource planning (ERP) software packages change the
SLC in several important ways This paper presents an extension of the SLC model for
ERP packages The lsquodivided software life cyclersquo (DSLC) model features an equal
emphasis on the activities performed by the ERP adopting company and the ERP vendor
[15]
Alavi M and Carlson P (1992) A Review of MIS research and disciplinary
development The perceived status of journals in which MIS research is published is an
important issue to academics The number of IS-related journals has increased through
the years yet it is not obvious which are the ldquoleadingrdquo journals or what criteria should be
used to determine this This article addresses these issues by (1) evaluating and
analyzing previous studies in which MIS related journals have been ranked (2)
determining top-ranked journals and placing them into two levels or tiers based on
previous studies and (3) establishing a profile through a systematic analysis of the nine
journals in the first tier This study identified 17 highly ranked journals for publication
Nine were placed in the first tier and eight in the second tier In addition to IS-specific
journals publications included management science computer science and business-
oriented journals The individual strategies for improving software productivity are
identified Issues related to software costs and controlling them are examined and
discussed It is pointed out that a good framework of techniques exists for controlling
software budgets schedules and work completed but that a great deal of further progress
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 32
43
effectively Finally we applied the model to the testing project which develops ERP
system and then receive the ideal result [118]
In their paper ldquoThe Research and Development of IMIS for Small and Medium-sized
Printing Enterpriserdquo Taolin Ma Xiaoming Chen Yansong Sun Xiurong Li (2009)
analyzed the fact that the basic management thought of inventory management
information system (IMIS) was established by analyzing the inventory management
theory of modern enterprise In this system which using the architecture of CS the stores
were classified by ABC management method the inventory control was completed by
setting up the safety stock and the largest stock the analysis and design of IMIS were
finished This IMIS was developed to meet the practical requirements of small and
medium-sized printing enterprise in our country It can not only be used as the important
measure of the informationized construction for small and medium sized printing
enterprise but also used as a subsystem of enterprise ERP system IMIS could improve
enterprise management level realize rapid transformation of enterprise and finally
enhance the competitiveness of enterprise in market economy [106]
Jiangao Deng and Yijie Bian (2008) in the research paper ldquoConstructing a Risk
Management Mechanism Model of ERP Projectrdquo mention that in the process of
information project implementation of manufacturing enterprises there are many risks to
set up a set of risk management mechanism is guaranteed for them to succeed in ERP
implementation Firstly based on the analysis of ERP project implementation of China
the paper introduced the risk management methodology systems and the relative model
which includes three main steps identifying risk evaluating risk and controlling risk
After that on the aspects of decision implementation and application stages of
manufacturing ERP project life cycle the paper discussed risks of each stage and put
forward a two-dimension matrix risk management strategy Then a mechanism model of
ERP project risk management is constructed which shows that information risk control
strategies of the last two stages not only depend on resources of these stages but also
have a diverse relationship with the last stage Finally according to the successful
implementation of an enterprisersquos ERP project the paper carried out an effective case
application analysis of risk management mechanism model The lack of improvement in
usersrsquo ERP skill levels and the shortage in documenting the rationale for business rules
44
and configuration decisions were among the critical issues of the post-implementation
stage Indeed all of their respondents stressed the importance of refreshing the usersrsquo
knowledge about the system [28]
Saumyendu Ghosh (2003) in ldquoGlobal Implementation of ERP Software ndash Critical Success
Factors on Upgrading Technical Infrastructurerdquo discusses that implementing an
Enterprise Resource planning (ERP) software in a global environment executive
sponsors face two key challenges While business processes are to be re-engineered to
align with the ERP software best practices technical architecture and infrastructure needs
to be in place globally as per specifications of the packaged software In the legacy
environment different countries or different business units use different systems based
on local standards supported by local resources In the new ERP world globally all the
countries must conform to same technical infrastructure Technical managers face
multiple critical issues implementing a global solution Most of the ERP software is
developed in technically advanced countries standards are often too high for under
developed or developing countries In an effort to bring the global organization to a
common platform different countries need different levels of upgrades In this paper the
authors review key technical issues faced is a global upgrade process to support a global
ERP implementation and how to resolve those We conclude although technical
infrastructure and business process reengineering both are equally important and each
implementation is unique but following some simple steps it is easy to prioritize each
ones during different phases of the project Also time lines of two sub-projects must
converge after initial phase and must follow a common plan for the project to be
successful Multiple scenarios are described to facilitate the process He concludes
although technical infrastructure and business process reengineering both are equally
important and each implementation is unique but following some simple steps it is easy
to prioritize each ones during different phases of the project Also time lines of two
subprojects must converge after initial phase and must follow a common plan for the
project to be successful Multiple scenarios are described to facilitate the process [38]
Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008) ldquoDevelopment and
Implementation of ERPCRM System Based on Open Source Software to Small and
Medium-sized Enterprise in Chinardquo analysed the fact that E-commerce and the
45
development of modern enterprise management raise a number of challenges in the
process of informatization of small and medium-sized enterprises (SME) in china To
address this they present an approach in which the informatization is enhanced by using
Open Source Software with customized policies We analyses the main
informationization obstacles of SME in china bring forward that the lack of bankroll
talents cost and management etc are the key problems to informationization of SME
Furthermore they have developed a textile foreign trade ERP CRM system based on
Open Source Software for the local textile distributor of china integrating financial
distribution sales and service processes given the implement method of overall planning
step-by-step implementation key breakthrough and efficiency guiding In the end we
compare the typical Open Source Software and traditional commercial software point
out the advantages of informatization based Open Source Software to SME in china and
the development trend of Open Source Software for enterprise application [132]
ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information Systems ndash a
Multi-disciplinary Method for ERP System Requirements Engineeringrdquo by Inka Vilpola
Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that ERP systems are in
most cases off-the-shelf software packages and large by their size and complex by their
structure Small and medium-sized enterprises (SMEs) require flexibility of the ERP
system because of their individual operational processes Therefore it is crucial to select
and implement an ERP system that fits the requirements of the intended target processes
To support the requirements engineering of ERP systems we have developed Customer-
Centered ERP Implementation (C-CEI) method The method introduces a multi-
disciplinary approach to the ERP project and provides in-depth understanding of the
companylsquos processes and context of use Using C-CEI method decreases the risk of
SMEs to select an inappropriate system and improves the system acceptance by the
customer companyrsquos employees In this paper we present the method and illustrate it by
three SME case studies [114]
Saumyendu Ghosh (2000) in ldquoChallenges on a global implementation of ERP softwarerdquo
discusses that some of the unique challenges in ERP implementation are satisfying
multiple countries statutory requirements and reporting to the corporate head quarters
from one installation of the software conflicting interests between different business
46
entities lack of experienced implementators in all the countries and eminent users of
multinational advantages He discusses different aspects of these challenges in detail and
point out that ERP software can provide only one solution for a particular business
process unless workarounds are available from experienced implementation Different
counties adopt different reporting and accounting practices and therefore an ERP
implementation cannot solve all problems that global corporation may have multiple
countries in the scope of the project due to absence of standard global processes across
the organization He concludes that the most important critical success factor of these
international implementations are how quickly these corporations can reengineer existing
business process to adopt best practices of using an ERP system [38]
Dong Cheng Feiyan Deng Hongtao Li (2006) ldquoCritical Factors for Successful
Implementation of ERP in Chinardquo in their study propound a theoretical model for
successful implementation of Enterprise Resource Planning (ERP) under Chinarsquos
environment and the authors analyze the model empirically through structural equation
modeling The authors find that strategically IT planning abilities leadershiprsquos support
and the skills of IT section business processing abilities learning abilities and change
management abilities has a significant positive impact on successful ERP implementation
[22]
Parijat Upadhyay (2008) in his research studies ldquoAn explorative study to identify the
Critical Success Factors for ERP Implementation in Indian small and medium scale
enterprisesrdquo explores the existing literature on ERP implementation issues in context to
small and medium scale enterprises and attempts a compilation of the factors that assume
great significance while implementing ERP in SMErsquos Given the nature and magnitude of
the problems in encountered in implementing an ERP project this study would attempt to
identify the critical success factors(CSFrsquos) for a successful implementation of an ERP
project since it calls for substantial effort on the part of all the stake holders involved to
make the implementation a success [111]
ldquoThe ERP Implementation of SME in Chinardquo Yuanqiang Xia Peter Lok and Song Yang
(2009) presented the fact that ERP implementing for small and middle size enterprise
(SME) is different from the large one Based on the analysis on the character of ERP
marketing and SMEs of China 6 critical success factors are recommended The research
47
suggests that the top management support is most important to ERP implement in SME
of China in which paternalism prevails Database of management and capital are main
obstacles ERP 1 or ERP 2 fits to demand of SME high power project team has
tremendous significance in the situation of absence of IT engineer for SME education
and training is helpful to successfully ERP implementing The results service as better
understanding the ERP implementation of SME in China and gaining the good
performance of ERP implementation [126]
Yan Xu and Chung-Hsing Yeh (2009) in the article ldquoStrategic Management of
Performance Measures for an ERP Implementation Project Teamrdquo present a new
evaluation model for managing performance measures of an enterprise resource planning
(ERP) implementation project team in an organization With the performance measures
classified into four strategic perspectives of the balanced scorecard the evaluation model
enables the goal alignment between the project team and the organization A new
algorithm using the concept of multi-attribute decision making is developed to obtain the
relative importance value for each performance measure for its contribution to the
strategic goals of the organization The higher the importance values of a performance
measure the more important the role it plays in determining the responsibilities of the
corresponding project team player Understanding the importance of the key performance
measures will help an organization well-prepare to launch a project and have the project
being organized in advance A case of an ERP implementation project in an integrated
manufacturing corporation is presented to demonstrate the applicability of the evaluation
model and its effective management of the performance measures [124]
Zhang Yanhong (2009) in his research paper ldquoERP Implementation Process Analysis
Based on the Key Success Factorsrdquo describes that Enterprise Resource Planning (ERP) is
an amalgamation of a companys information systems designed to bind more closely a
variety of company functions including human resources inventories and financials
while simultaneously linking the company to customers and vendors This thesis is based
on the theory of product life cycle and the process of ERP is divided into four phase
planning implementation stabilization and improvement Critical success factors in each
phase are identified by paper research case study and investigation An ERP
implementation process model based on the critical Success factors (CSFs) is proposed in
48
the paper The thesis analyzes the global planning stages and business process rebuilding
in the process of QIHE pharmaceuticals ERP Improvement on management and
financing before and after ERP implementation are contrasted and we come to the
following conclusions (1) The CSFs in the planning phase is comprehensive
investigation and evaluation (2) The CSFs in the implementation phase is effective
project management team (3) The CSFs in the stabilization phase is appropriate
information management system (4) The CSFs in the improvement phase is change on
demand and continue to innovate (5) The CSFs throughout the product life cycle is
business process rebuilding [131]
Van Stijn E and Wensley A (2001) ldquoOrganizational memory and the completeness of
process modeling in ERP systems some concerns methods and directions for future
researchrdquo mentioned that Enterprise resource planning (ERP) systems not only have a
broad functional scope promising to support many different business processes they also
embed many different aspects of the companyrsquos organizational memory Disparities can
exist between those memory contents in the ERP system and related contents in other
memory media such as individualsrsquo memories and the organizational structure and
culture It is our contention that in general these disparities or memory mismatches as
we will refer to them lead to under-performance of ERP systems In this paper they focus
on potential memory mismatches that may arise with respect to the embedding of process
knowledge within ERP packages Packages such as SAP provide a varied and rich
environment for process modeling However they suspect that there are still many
instances where process knowledge is either lost or represented in different ways in
different parts of the organization The overall thrust of the paper is to identify a variety
of concerns intriguing questions and avenues for future research [112]
Eric Kimberling (2008) in his article ldquo The Role of Lean Six Sigma in ERPrdquo insisted
that there are a number of things to consider when considering a new ERP system like six
sigma lean manufacturing or other business transformation projects that has the capacity
to measure reducing waste managing change well continuous improvement etc [133]
William H Gaw (2010) ldquoEight Basics of Lean Six Sigma for Manufacturing Firmsrdquo In
the efforts to draw closer to customers many manufacturers have lost focus on what
should be a companyrsquos primary success factor ndash profitable growth In todayrsquos competitive
49
manufacturing environment it takes more than quick fixes outsourcing and downsizing
for companies to consistently achieve their growth and profit objectives While these
options may yield temporary financial relief they will not lead the way to long-term
growth and profitability For companies to grow and consistently exceed bottom line
expectations they need to get lean And to get lean they should master eight basics of
Lean Six Sigma in the form of information integrity performance measurement
sequential production point-of-use logistic cycle time management production linearity
and resource planning and customer satisfaction [134]
Brehm L and Markus M L (2000) in The Divided Software Life Cycle of ERP
Packages mentioned that traditional information system life cycle (SLC) focuses on the
activities performed by company developing implementing and maintaining software for
its own internal use Enterprise resource planning (ERP) software packages change the
SLC in several important ways This paper presents an extension of the SLC model for
ERP packages The lsquodivided software life cyclersquo (DSLC) model features an equal
emphasis on the activities performed by the ERP adopting company and the ERP vendor
[15]
Alavi M and Carlson P (1992) A Review of MIS research and disciplinary
development The perceived status of journals in which MIS research is published is an
important issue to academics The number of IS-related journals has increased through
the years yet it is not obvious which are the ldquoleadingrdquo journals or what criteria should be
used to determine this This article addresses these issues by (1) evaluating and
analyzing previous studies in which MIS related journals have been ranked (2)
determining top-ranked journals and placing them into two levels or tiers based on
previous studies and (3) establishing a profile through a systematic analysis of the nine
journals in the first tier This study identified 17 highly ranked journals for publication
Nine were placed in the first tier and eight in the second tier In addition to IS-specific
journals publications included management science computer science and business-
oriented journals The individual strategies for improving software productivity are
identified Issues related to software costs and controlling them are examined and
discussed It is pointed out that a good framework of techniques exists for controlling
software budgets schedules and work completed but that a great deal of further progress
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 33
44
and configuration decisions were among the critical issues of the post-implementation
stage Indeed all of their respondents stressed the importance of refreshing the usersrsquo
knowledge about the system [28]
Saumyendu Ghosh (2003) in ldquoGlobal Implementation of ERP Software ndash Critical Success
Factors on Upgrading Technical Infrastructurerdquo discusses that implementing an
Enterprise Resource planning (ERP) software in a global environment executive
sponsors face two key challenges While business processes are to be re-engineered to
align with the ERP software best practices technical architecture and infrastructure needs
to be in place globally as per specifications of the packaged software In the legacy
environment different countries or different business units use different systems based
on local standards supported by local resources In the new ERP world globally all the
countries must conform to same technical infrastructure Technical managers face
multiple critical issues implementing a global solution Most of the ERP software is
developed in technically advanced countries standards are often too high for under
developed or developing countries In an effort to bring the global organization to a
common platform different countries need different levels of upgrades In this paper the
authors review key technical issues faced is a global upgrade process to support a global
ERP implementation and how to resolve those We conclude although technical
infrastructure and business process reengineering both are equally important and each
implementation is unique but following some simple steps it is easy to prioritize each
ones during different phases of the project Also time lines of two sub-projects must
converge after initial phase and must follow a common plan for the project to be
successful Multiple scenarios are described to facilitate the process He concludes
although technical infrastructure and business process reengineering both are equally
important and each implementation is unique but following some simple steps it is easy
to prioritize each ones during different phases of the project Also time lines of two
subprojects must converge after initial phase and must follow a common plan for the
project to be successful Multiple scenarios are described to facilitate the process [38]
Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008) ldquoDevelopment and
Implementation of ERPCRM System Based on Open Source Software to Small and
Medium-sized Enterprise in Chinardquo analysed the fact that E-commerce and the
45
development of modern enterprise management raise a number of challenges in the
process of informatization of small and medium-sized enterprises (SME) in china To
address this they present an approach in which the informatization is enhanced by using
Open Source Software with customized policies We analyses the main
informationization obstacles of SME in china bring forward that the lack of bankroll
talents cost and management etc are the key problems to informationization of SME
Furthermore they have developed a textile foreign trade ERP CRM system based on
Open Source Software for the local textile distributor of china integrating financial
distribution sales and service processes given the implement method of overall planning
step-by-step implementation key breakthrough and efficiency guiding In the end we
compare the typical Open Source Software and traditional commercial software point
out the advantages of informatization based Open Source Software to SME in china and
the development trend of Open Source Software for enterprise application [132]
ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information Systems ndash a
Multi-disciplinary Method for ERP System Requirements Engineeringrdquo by Inka Vilpola
Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that ERP systems are in
most cases off-the-shelf software packages and large by their size and complex by their
structure Small and medium-sized enterprises (SMEs) require flexibility of the ERP
system because of their individual operational processes Therefore it is crucial to select
and implement an ERP system that fits the requirements of the intended target processes
To support the requirements engineering of ERP systems we have developed Customer-
Centered ERP Implementation (C-CEI) method The method introduces a multi-
disciplinary approach to the ERP project and provides in-depth understanding of the
companylsquos processes and context of use Using C-CEI method decreases the risk of
SMEs to select an inappropriate system and improves the system acceptance by the
customer companyrsquos employees In this paper we present the method and illustrate it by
three SME case studies [114]
Saumyendu Ghosh (2000) in ldquoChallenges on a global implementation of ERP softwarerdquo
discusses that some of the unique challenges in ERP implementation are satisfying
multiple countries statutory requirements and reporting to the corporate head quarters
from one installation of the software conflicting interests between different business
46
entities lack of experienced implementators in all the countries and eminent users of
multinational advantages He discusses different aspects of these challenges in detail and
point out that ERP software can provide only one solution for a particular business
process unless workarounds are available from experienced implementation Different
counties adopt different reporting and accounting practices and therefore an ERP
implementation cannot solve all problems that global corporation may have multiple
countries in the scope of the project due to absence of standard global processes across
the organization He concludes that the most important critical success factor of these
international implementations are how quickly these corporations can reengineer existing
business process to adopt best practices of using an ERP system [38]
Dong Cheng Feiyan Deng Hongtao Li (2006) ldquoCritical Factors for Successful
Implementation of ERP in Chinardquo in their study propound a theoretical model for
successful implementation of Enterprise Resource Planning (ERP) under Chinarsquos
environment and the authors analyze the model empirically through structural equation
modeling The authors find that strategically IT planning abilities leadershiprsquos support
and the skills of IT section business processing abilities learning abilities and change
management abilities has a significant positive impact on successful ERP implementation
[22]
Parijat Upadhyay (2008) in his research studies ldquoAn explorative study to identify the
Critical Success Factors for ERP Implementation in Indian small and medium scale
enterprisesrdquo explores the existing literature on ERP implementation issues in context to
small and medium scale enterprises and attempts a compilation of the factors that assume
great significance while implementing ERP in SMErsquos Given the nature and magnitude of
the problems in encountered in implementing an ERP project this study would attempt to
identify the critical success factors(CSFrsquos) for a successful implementation of an ERP
project since it calls for substantial effort on the part of all the stake holders involved to
make the implementation a success [111]
ldquoThe ERP Implementation of SME in Chinardquo Yuanqiang Xia Peter Lok and Song Yang
(2009) presented the fact that ERP implementing for small and middle size enterprise
(SME) is different from the large one Based on the analysis on the character of ERP
marketing and SMEs of China 6 critical success factors are recommended The research
47
suggests that the top management support is most important to ERP implement in SME
of China in which paternalism prevails Database of management and capital are main
obstacles ERP 1 or ERP 2 fits to demand of SME high power project team has
tremendous significance in the situation of absence of IT engineer for SME education
and training is helpful to successfully ERP implementing The results service as better
understanding the ERP implementation of SME in China and gaining the good
performance of ERP implementation [126]
Yan Xu and Chung-Hsing Yeh (2009) in the article ldquoStrategic Management of
Performance Measures for an ERP Implementation Project Teamrdquo present a new
evaluation model for managing performance measures of an enterprise resource planning
(ERP) implementation project team in an organization With the performance measures
classified into four strategic perspectives of the balanced scorecard the evaluation model
enables the goal alignment between the project team and the organization A new
algorithm using the concept of multi-attribute decision making is developed to obtain the
relative importance value for each performance measure for its contribution to the
strategic goals of the organization The higher the importance values of a performance
measure the more important the role it plays in determining the responsibilities of the
corresponding project team player Understanding the importance of the key performance
measures will help an organization well-prepare to launch a project and have the project
being organized in advance A case of an ERP implementation project in an integrated
manufacturing corporation is presented to demonstrate the applicability of the evaluation
model and its effective management of the performance measures [124]
Zhang Yanhong (2009) in his research paper ldquoERP Implementation Process Analysis
Based on the Key Success Factorsrdquo describes that Enterprise Resource Planning (ERP) is
an amalgamation of a companys information systems designed to bind more closely a
variety of company functions including human resources inventories and financials
while simultaneously linking the company to customers and vendors This thesis is based
on the theory of product life cycle and the process of ERP is divided into four phase
planning implementation stabilization and improvement Critical success factors in each
phase are identified by paper research case study and investigation An ERP
implementation process model based on the critical Success factors (CSFs) is proposed in
48
the paper The thesis analyzes the global planning stages and business process rebuilding
in the process of QIHE pharmaceuticals ERP Improvement on management and
financing before and after ERP implementation are contrasted and we come to the
following conclusions (1) The CSFs in the planning phase is comprehensive
investigation and evaluation (2) The CSFs in the implementation phase is effective
project management team (3) The CSFs in the stabilization phase is appropriate
information management system (4) The CSFs in the improvement phase is change on
demand and continue to innovate (5) The CSFs throughout the product life cycle is
business process rebuilding [131]
Van Stijn E and Wensley A (2001) ldquoOrganizational memory and the completeness of
process modeling in ERP systems some concerns methods and directions for future
researchrdquo mentioned that Enterprise resource planning (ERP) systems not only have a
broad functional scope promising to support many different business processes they also
embed many different aspects of the companyrsquos organizational memory Disparities can
exist between those memory contents in the ERP system and related contents in other
memory media such as individualsrsquo memories and the organizational structure and
culture It is our contention that in general these disparities or memory mismatches as
we will refer to them lead to under-performance of ERP systems In this paper they focus
on potential memory mismatches that may arise with respect to the embedding of process
knowledge within ERP packages Packages such as SAP provide a varied and rich
environment for process modeling However they suspect that there are still many
instances where process knowledge is either lost or represented in different ways in
different parts of the organization The overall thrust of the paper is to identify a variety
of concerns intriguing questions and avenues for future research [112]
Eric Kimberling (2008) in his article ldquo The Role of Lean Six Sigma in ERPrdquo insisted
that there are a number of things to consider when considering a new ERP system like six
sigma lean manufacturing or other business transformation projects that has the capacity
to measure reducing waste managing change well continuous improvement etc [133]
William H Gaw (2010) ldquoEight Basics of Lean Six Sigma for Manufacturing Firmsrdquo In
the efforts to draw closer to customers many manufacturers have lost focus on what
should be a companyrsquos primary success factor ndash profitable growth In todayrsquos competitive
49
manufacturing environment it takes more than quick fixes outsourcing and downsizing
for companies to consistently achieve their growth and profit objectives While these
options may yield temporary financial relief they will not lead the way to long-term
growth and profitability For companies to grow and consistently exceed bottom line
expectations they need to get lean And to get lean they should master eight basics of
Lean Six Sigma in the form of information integrity performance measurement
sequential production point-of-use logistic cycle time management production linearity
and resource planning and customer satisfaction [134]
Brehm L and Markus M L (2000) in The Divided Software Life Cycle of ERP
Packages mentioned that traditional information system life cycle (SLC) focuses on the
activities performed by company developing implementing and maintaining software for
its own internal use Enterprise resource planning (ERP) software packages change the
SLC in several important ways This paper presents an extension of the SLC model for
ERP packages The lsquodivided software life cyclersquo (DSLC) model features an equal
emphasis on the activities performed by the ERP adopting company and the ERP vendor
[15]
Alavi M and Carlson P (1992) A Review of MIS research and disciplinary
development The perceived status of journals in which MIS research is published is an
important issue to academics The number of IS-related journals has increased through
the years yet it is not obvious which are the ldquoleadingrdquo journals or what criteria should be
used to determine this This article addresses these issues by (1) evaluating and
analyzing previous studies in which MIS related journals have been ranked (2)
determining top-ranked journals and placing them into two levels or tiers based on
previous studies and (3) establishing a profile through a systematic analysis of the nine
journals in the first tier This study identified 17 highly ranked journals for publication
Nine were placed in the first tier and eight in the second tier In addition to IS-specific
journals publications included management science computer science and business-
oriented journals The individual strategies for improving software productivity are
identified Issues related to software costs and controlling them are examined and
discussed It is pointed out that a good framework of techniques exists for controlling
software budgets schedules and work completed but that a great deal of further progress
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 34
45
development of modern enterprise management raise a number of challenges in the
process of informatization of small and medium-sized enterprises (SME) in china To
address this they present an approach in which the informatization is enhanced by using
Open Source Software with customized policies We analyses the main
informationization obstacles of SME in china bring forward that the lack of bankroll
talents cost and management etc are the key problems to informationization of SME
Furthermore they have developed a textile foreign trade ERP CRM system based on
Open Source Software for the local textile distributor of china integrating financial
distribution sales and service processes given the implement method of overall planning
step-by-step implementation key breakthrough and efficiency guiding In the end we
compare the typical Open Source Software and traditional commercial software point
out the advantages of informatization based Open Source Software to SME in china and
the development trend of Open Source Software for enterprise application [132]
ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information Systems ndash a
Multi-disciplinary Method for ERP System Requirements Engineeringrdquo by Inka Vilpola
Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that ERP systems are in
most cases off-the-shelf software packages and large by their size and complex by their
structure Small and medium-sized enterprises (SMEs) require flexibility of the ERP
system because of their individual operational processes Therefore it is crucial to select
and implement an ERP system that fits the requirements of the intended target processes
To support the requirements engineering of ERP systems we have developed Customer-
Centered ERP Implementation (C-CEI) method The method introduces a multi-
disciplinary approach to the ERP project and provides in-depth understanding of the
companylsquos processes and context of use Using C-CEI method decreases the risk of
SMEs to select an inappropriate system and improves the system acceptance by the
customer companyrsquos employees In this paper we present the method and illustrate it by
three SME case studies [114]
Saumyendu Ghosh (2000) in ldquoChallenges on a global implementation of ERP softwarerdquo
discusses that some of the unique challenges in ERP implementation are satisfying
multiple countries statutory requirements and reporting to the corporate head quarters
from one installation of the software conflicting interests between different business
46
entities lack of experienced implementators in all the countries and eminent users of
multinational advantages He discusses different aspects of these challenges in detail and
point out that ERP software can provide only one solution for a particular business
process unless workarounds are available from experienced implementation Different
counties adopt different reporting and accounting practices and therefore an ERP
implementation cannot solve all problems that global corporation may have multiple
countries in the scope of the project due to absence of standard global processes across
the organization He concludes that the most important critical success factor of these
international implementations are how quickly these corporations can reengineer existing
business process to adopt best practices of using an ERP system [38]
Dong Cheng Feiyan Deng Hongtao Li (2006) ldquoCritical Factors for Successful
Implementation of ERP in Chinardquo in their study propound a theoretical model for
successful implementation of Enterprise Resource Planning (ERP) under Chinarsquos
environment and the authors analyze the model empirically through structural equation
modeling The authors find that strategically IT planning abilities leadershiprsquos support
and the skills of IT section business processing abilities learning abilities and change
management abilities has a significant positive impact on successful ERP implementation
[22]
Parijat Upadhyay (2008) in his research studies ldquoAn explorative study to identify the
Critical Success Factors for ERP Implementation in Indian small and medium scale
enterprisesrdquo explores the existing literature on ERP implementation issues in context to
small and medium scale enterprises and attempts a compilation of the factors that assume
great significance while implementing ERP in SMErsquos Given the nature and magnitude of
the problems in encountered in implementing an ERP project this study would attempt to
identify the critical success factors(CSFrsquos) for a successful implementation of an ERP
project since it calls for substantial effort on the part of all the stake holders involved to
make the implementation a success [111]
ldquoThe ERP Implementation of SME in Chinardquo Yuanqiang Xia Peter Lok and Song Yang
(2009) presented the fact that ERP implementing for small and middle size enterprise
(SME) is different from the large one Based on the analysis on the character of ERP
marketing and SMEs of China 6 critical success factors are recommended The research
47
suggests that the top management support is most important to ERP implement in SME
of China in which paternalism prevails Database of management and capital are main
obstacles ERP 1 or ERP 2 fits to demand of SME high power project team has
tremendous significance in the situation of absence of IT engineer for SME education
and training is helpful to successfully ERP implementing The results service as better
understanding the ERP implementation of SME in China and gaining the good
performance of ERP implementation [126]
Yan Xu and Chung-Hsing Yeh (2009) in the article ldquoStrategic Management of
Performance Measures for an ERP Implementation Project Teamrdquo present a new
evaluation model for managing performance measures of an enterprise resource planning
(ERP) implementation project team in an organization With the performance measures
classified into four strategic perspectives of the balanced scorecard the evaluation model
enables the goal alignment between the project team and the organization A new
algorithm using the concept of multi-attribute decision making is developed to obtain the
relative importance value for each performance measure for its contribution to the
strategic goals of the organization The higher the importance values of a performance
measure the more important the role it plays in determining the responsibilities of the
corresponding project team player Understanding the importance of the key performance
measures will help an organization well-prepare to launch a project and have the project
being organized in advance A case of an ERP implementation project in an integrated
manufacturing corporation is presented to demonstrate the applicability of the evaluation
model and its effective management of the performance measures [124]
Zhang Yanhong (2009) in his research paper ldquoERP Implementation Process Analysis
Based on the Key Success Factorsrdquo describes that Enterprise Resource Planning (ERP) is
an amalgamation of a companys information systems designed to bind more closely a
variety of company functions including human resources inventories and financials
while simultaneously linking the company to customers and vendors This thesis is based
on the theory of product life cycle and the process of ERP is divided into four phase
planning implementation stabilization and improvement Critical success factors in each
phase are identified by paper research case study and investigation An ERP
implementation process model based on the critical Success factors (CSFs) is proposed in
48
the paper The thesis analyzes the global planning stages and business process rebuilding
in the process of QIHE pharmaceuticals ERP Improvement on management and
financing before and after ERP implementation are contrasted and we come to the
following conclusions (1) The CSFs in the planning phase is comprehensive
investigation and evaluation (2) The CSFs in the implementation phase is effective
project management team (3) The CSFs in the stabilization phase is appropriate
information management system (4) The CSFs in the improvement phase is change on
demand and continue to innovate (5) The CSFs throughout the product life cycle is
business process rebuilding [131]
Van Stijn E and Wensley A (2001) ldquoOrganizational memory and the completeness of
process modeling in ERP systems some concerns methods and directions for future
researchrdquo mentioned that Enterprise resource planning (ERP) systems not only have a
broad functional scope promising to support many different business processes they also
embed many different aspects of the companyrsquos organizational memory Disparities can
exist between those memory contents in the ERP system and related contents in other
memory media such as individualsrsquo memories and the organizational structure and
culture It is our contention that in general these disparities or memory mismatches as
we will refer to them lead to under-performance of ERP systems In this paper they focus
on potential memory mismatches that may arise with respect to the embedding of process
knowledge within ERP packages Packages such as SAP provide a varied and rich
environment for process modeling However they suspect that there are still many
instances where process knowledge is either lost or represented in different ways in
different parts of the organization The overall thrust of the paper is to identify a variety
of concerns intriguing questions and avenues for future research [112]
Eric Kimberling (2008) in his article ldquo The Role of Lean Six Sigma in ERPrdquo insisted
that there are a number of things to consider when considering a new ERP system like six
sigma lean manufacturing or other business transformation projects that has the capacity
to measure reducing waste managing change well continuous improvement etc [133]
William H Gaw (2010) ldquoEight Basics of Lean Six Sigma for Manufacturing Firmsrdquo In
the efforts to draw closer to customers many manufacturers have lost focus on what
should be a companyrsquos primary success factor ndash profitable growth In todayrsquos competitive
49
manufacturing environment it takes more than quick fixes outsourcing and downsizing
for companies to consistently achieve their growth and profit objectives While these
options may yield temporary financial relief they will not lead the way to long-term
growth and profitability For companies to grow and consistently exceed bottom line
expectations they need to get lean And to get lean they should master eight basics of
Lean Six Sigma in the form of information integrity performance measurement
sequential production point-of-use logistic cycle time management production linearity
and resource planning and customer satisfaction [134]
Brehm L and Markus M L (2000) in The Divided Software Life Cycle of ERP
Packages mentioned that traditional information system life cycle (SLC) focuses on the
activities performed by company developing implementing and maintaining software for
its own internal use Enterprise resource planning (ERP) software packages change the
SLC in several important ways This paper presents an extension of the SLC model for
ERP packages The lsquodivided software life cyclersquo (DSLC) model features an equal
emphasis on the activities performed by the ERP adopting company and the ERP vendor
[15]
Alavi M and Carlson P (1992) A Review of MIS research and disciplinary
development The perceived status of journals in which MIS research is published is an
important issue to academics The number of IS-related journals has increased through
the years yet it is not obvious which are the ldquoleadingrdquo journals or what criteria should be
used to determine this This article addresses these issues by (1) evaluating and
analyzing previous studies in which MIS related journals have been ranked (2)
determining top-ranked journals and placing them into two levels or tiers based on
previous studies and (3) establishing a profile through a systematic analysis of the nine
journals in the first tier This study identified 17 highly ranked journals for publication
Nine were placed in the first tier and eight in the second tier In addition to IS-specific
journals publications included management science computer science and business-
oriented journals The individual strategies for improving software productivity are
identified Issues related to software costs and controlling them are examined and
discussed It is pointed out that a good framework of techniques exists for controlling
software budgets schedules and work completed but that a great deal of further progress
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 35
46
entities lack of experienced implementators in all the countries and eminent users of
multinational advantages He discusses different aspects of these challenges in detail and
point out that ERP software can provide only one solution for a particular business
process unless workarounds are available from experienced implementation Different
counties adopt different reporting and accounting practices and therefore an ERP
implementation cannot solve all problems that global corporation may have multiple
countries in the scope of the project due to absence of standard global processes across
the organization He concludes that the most important critical success factor of these
international implementations are how quickly these corporations can reengineer existing
business process to adopt best practices of using an ERP system [38]
Dong Cheng Feiyan Deng Hongtao Li (2006) ldquoCritical Factors for Successful
Implementation of ERP in Chinardquo in their study propound a theoretical model for
successful implementation of Enterprise Resource Planning (ERP) under Chinarsquos
environment and the authors analyze the model empirically through structural equation
modeling The authors find that strategically IT planning abilities leadershiprsquos support
and the skills of IT section business processing abilities learning abilities and change
management abilities has a significant positive impact on successful ERP implementation
[22]
Parijat Upadhyay (2008) in his research studies ldquoAn explorative study to identify the
Critical Success Factors for ERP Implementation in Indian small and medium scale
enterprisesrdquo explores the existing literature on ERP implementation issues in context to
small and medium scale enterprises and attempts a compilation of the factors that assume
great significance while implementing ERP in SMErsquos Given the nature and magnitude of
the problems in encountered in implementing an ERP project this study would attempt to
identify the critical success factors(CSFrsquos) for a successful implementation of an ERP
project since it calls for substantial effort on the part of all the stake holders involved to
make the implementation a success [111]
ldquoThe ERP Implementation of SME in Chinardquo Yuanqiang Xia Peter Lok and Song Yang
(2009) presented the fact that ERP implementing for small and middle size enterprise
(SME) is different from the large one Based on the analysis on the character of ERP
marketing and SMEs of China 6 critical success factors are recommended The research
47
suggests that the top management support is most important to ERP implement in SME
of China in which paternalism prevails Database of management and capital are main
obstacles ERP 1 or ERP 2 fits to demand of SME high power project team has
tremendous significance in the situation of absence of IT engineer for SME education
and training is helpful to successfully ERP implementing The results service as better
understanding the ERP implementation of SME in China and gaining the good
performance of ERP implementation [126]
Yan Xu and Chung-Hsing Yeh (2009) in the article ldquoStrategic Management of
Performance Measures for an ERP Implementation Project Teamrdquo present a new
evaluation model for managing performance measures of an enterprise resource planning
(ERP) implementation project team in an organization With the performance measures
classified into four strategic perspectives of the balanced scorecard the evaluation model
enables the goal alignment between the project team and the organization A new
algorithm using the concept of multi-attribute decision making is developed to obtain the
relative importance value for each performance measure for its contribution to the
strategic goals of the organization The higher the importance values of a performance
measure the more important the role it plays in determining the responsibilities of the
corresponding project team player Understanding the importance of the key performance
measures will help an organization well-prepare to launch a project and have the project
being organized in advance A case of an ERP implementation project in an integrated
manufacturing corporation is presented to demonstrate the applicability of the evaluation
model and its effective management of the performance measures [124]
Zhang Yanhong (2009) in his research paper ldquoERP Implementation Process Analysis
Based on the Key Success Factorsrdquo describes that Enterprise Resource Planning (ERP) is
an amalgamation of a companys information systems designed to bind more closely a
variety of company functions including human resources inventories and financials
while simultaneously linking the company to customers and vendors This thesis is based
on the theory of product life cycle and the process of ERP is divided into four phase
planning implementation stabilization and improvement Critical success factors in each
phase are identified by paper research case study and investigation An ERP
implementation process model based on the critical Success factors (CSFs) is proposed in
48
the paper The thesis analyzes the global planning stages and business process rebuilding
in the process of QIHE pharmaceuticals ERP Improvement on management and
financing before and after ERP implementation are contrasted and we come to the
following conclusions (1) The CSFs in the planning phase is comprehensive
investigation and evaluation (2) The CSFs in the implementation phase is effective
project management team (3) The CSFs in the stabilization phase is appropriate
information management system (4) The CSFs in the improvement phase is change on
demand and continue to innovate (5) The CSFs throughout the product life cycle is
business process rebuilding [131]
Van Stijn E and Wensley A (2001) ldquoOrganizational memory and the completeness of
process modeling in ERP systems some concerns methods and directions for future
researchrdquo mentioned that Enterprise resource planning (ERP) systems not only have a
broad functional scope promising to support many different business processes they also
embed many different aspects of the companyrsquos organizational memory Disparities can
exist between those memory contents in the ERP system and related contents in other
memory media such as individualsrsquo memories and the organizational structure and
culture It is our contention that in general these disparities or memory mismatches as
we will refer to them lead to under-performance of ERP systems In this paper they focus
on potential memory mismatches that may arise with respect to the embedding of process
knowledge within ERP packages Packages such as SAP provide a varied and rich
environment for process modeling However they suspect that there are still many
instances where process knowledge is either lost or represented in different ways in
different parts of the organization The overall thrust of the paper is to identify a variety
of concerns intriguing questions and avenues for future research [112]
Eric Kimberling (2008) in his article ldquo The Role of Lean Six Sigma in ERPrdquo insisted
that there are a number of things to consider when considering a new ERP system like six
sigma lean manufacturing or other business transformation projects that has the capacity
to measure reducing waste managing change well continuous improvement etc [133]
William H Gaw (2010) ldquoEight Basics of Lean Six Sigma for Manufacturing Firmsrdquo In
the efforts to draw closer to customers many manufacturers have lost focus on what
should be a companyrsquos primary success factor ndash profitable growth In todayrsquos competitive
49
manufacturing environment it takes more than quick fixes outsourcing and downsizing
for companies to consistently achieve their growth and profit objectives While these
options may yield temporary financial relief they will not lead the way to long-term
growth and profitability For companies to grow and consistently exceed bottom line
expectations they need to get lean And to get lean they should master eight basics of
Lean Six Sigma in the form of information integrity performance measurement
sequential production point-of-use logistic cycle time management production linearity
and resource planning and customer satisfaction [134]
Brehm L and Markus M L (2000) in The Divided Software Life Cycle of ERP
Packages mentioned that traditional information system life cycle (SLC) focuses on the
activities performed by company developing implementing and maintaining software for
its own internal use Enterprise resource planning (ERP) software packages change the
SLC in several important ways This paper presents an extension of the SLC model for
ERP packages The lsquodivided software life cyclersquo (DSLC) model features an equal
emphasis on the activities performed by the ERP adopting company and the ERP vendor
[15]
Alavi M and Carlson P (1992) A Review of MIS research and disciplinary
development The perceived status of journals in which MIS research is published is an
important issue to academics The number of IS-related journals has increased through
the years yet it is not obvious which are the ldquoleadingrdquo journals or what criteria should be
used to determine this This article addresses these issues by (1) evaluating and
analyzing previous studies in which MIS related journals have been ranked (2)
determining top-ranked journals and placing them into two levels or tiers based on
previous studies and (3) establishing a profile through a systematic analysis of the nine
journals in the first tier This study identified 17 highly ranked journals for publication
Nine were placed in the first tier and eight in the second tier In addition to IS-specific
journals publications included management science computer science and business-
oriented journals The individual strategies for improving software productivity are
identified Issues related to software costs and controlling them are examined and
discussed It is pointed out that a good framework of techniques exists for controlling
software budgets schedules and work completed but that a great deal of further progress
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 36
47
suggests that the top management support is most important to ERP implement in SME
of China in which paternalism prevails Database of management and capital are main
obstacles ERP 1 or ERP 2 fits to demand of SME high power project team has
tremendous significance in the situation of absence of IT engineer for SME education
and training is helpful to successfully ERP implementing The results service as better
understanding the ERP implementation of SME in China and gaining the good
performance of ERP implementation [126]
Yan Xu and Chung-Hsing Yeh (2009) in the article ldquoStrategic Management of
Performance Measures for an ERP Implementation Project Teamrdquo present a new
evaluation model for managing performance measures of an enterprise resource planning
(ERP) implementation project team in an organization With the performance measures
classified into four strategic perspectives of the balanced scorecard the evaluation model
enables the goal alignment between the project team and the organization A new
algorithm using the concept of multi-attribute decision making is developed to obtain the
relative importance value for each performance measure for its contribution to the
strategic goals of the organization The higher the importance values of a performance
measure the more important the role it plays in determining the responsibilities of the
corresponding project team player Understanding the importance of the key performance
measures will help an organization well-prepare to launch a project and have the project
being organized in advance A case of an ERP implementation project in an integrated
manufacturing corporation is presented to demonstrate the applicability of the evaluation
model and its effective management of the performance measures [124]
Zhang Yanhong (2009) in his research paper ldquoERP Implementation Process Analysis
Based on the Key Success Factorsrdquo describes that Enterprise Resource Planning (ERP) is
an amalgamation of a companys information systems designed to bind more closely a
variety of company functions including human resources inventories and financials
while simultaneously linking the company to customers and vendors This thesis is based
on the theory of product life cycle and the process of ERP is divided into four phase
planning implementation stabilization and improvement Critical success factors in each
phase are identified by paper research case study and investigation An ERP
implementation process model based on the critical Success factors (CSFs) is proposed in
48
the paper The thesis analyzes the global planning stages and business process rebuilding
in the process of QIHE pharmaceuticals ERP Improvement on management and
financing before and after ERP implementation are contrasted and we come to the
following conclusions (1) The CSFs in the planning phase is comprehensive
investigation and evaluation (2) The CSFs in the implementation phase is effective
project management team (3) The CSFs in the stabilization phase is appropriate
information management system (4) The CSFs in the improvement phase is change on
demand and continue to innovate (5) The CSFs throughout the product life cycle is
business process rebuilding [131]
Van Stijn E and Wensley A (2001) ldquoOrganizational memory and the completeness of
process modeling in ERP systems some concerns methods and directions for future
researchrdquo mentioned that Enterprise resource planning (ERP) systems not only have a
broad functional scope promising to support many different business processes they also
embed many different aspects of the companyrsquos organizational memory Disparities can
exist between those memory contents in the ERP system and related contents in other
memory media such as individualsrsquo memories and the organizational structure and
culture It is our contention that in general these disparities or memory mismatches as
we will refer to them lead to under-performance of ERP systems In this paper they focus
on potential memory mismatches that may arise with respect to the embedding of process
knowledge within ERP packages Packages such as SAP provide a varied and rich
environment for process modeling However they suspect that there are still many
instances where process knowledge is either lost or represented in different ways in
different parts of the organization The overall thrust of the paper is to identify a variety
of concerns intriguing questions and avenues for future research [112]
Eric Kimberling (2008) in his article ldquo The Role of Lean Six Sigma in ERPrdquo insisted
that there are a number of things to consider when considering a new ERP system like six
sigma lean manufacturing or other business transformation projects that has the capacity
to measure reducing waste managing change well continuous improvement etc [133]
William H Gaw (2010) ldquoEight Basics of Lean Six Sigma for Manufacturing Firmsrdquo In
the efforts to draw closer to customers many manufacturers have lost focus on what
should be a companyrsquos primary success factor ndash profitable growth In todayrsquos competitive
49
manufacturing environment it takes more than quick fixes outsourcing and downsizing
for companies to consistently achieve their growth and profit objectives While these
options may yield temporary financial relief they will not lead the way to long-term
growth and profitability For companies to grow and consistently exceed bottom line
expectations they need to get lean And to get lean they should master eight basics of
Lean Six Sigma in the form of information integrity performance measurement
sequential production point-of-use logistic cycle time management production linearity
and resource planning and customer satisfaction [134]
Brehm L and Markus M L (2000) in The Divided Software Life Cycle of ERP
Packages mentioned that traditional information system life cycle (SLC) focuses on the
activities performed by company developing implementing and maintaining software for
its own internal use Enterprise resource planning (ERP) software packages change the
SLC in several important ways This paper presents an extension of the SLC model for
ERP packages The lsquodivided software life cyclersquo (DSLC) model features an equal
emphasis on the activities performed by the ERP adopting company and the ERP vendor
[15]
Alavi M and Carlson P (1992) A Review of MIS research and disciplinary
development The perceived status of journals in which MIS research is published is an
important issue to academics The number of IS-related journals has increased through
the years yet it is not obvious which are the ldquoleadingrdquo journals or what criteria should be
used to determine this This article addresses these issues by (1) evaluating and
analyzing previous studies in which MIS related journals have been ranked (2)
determining top-ranked journals and placing them into two levels or tiers based on
previous studies and (3) establishing a profile through a systematic analysis of the nine
journals in the first tier This study identified 17 highly ranked journals for publication
Nine were placed in the first tier and eight in the second tier In addition to IS-specific
journals publications included management science computer science and business-
oriented journals The individual strategies for improving software productivity are
identified Issues related to software costs and controlling them are examined and
discussed It is pointed out that a good framework of techniques exists for controlling
software budgets schedules and work completed but that a great deal of further progress
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 37
48
the paper The thesis analyzes the global planning stages and business process rebuilding
in the process of QIHE pharmaceuticals ERP Improvement on management and
financing before and after ERP implementation are contrasted and we come to the
following conclusions (1) The CSFs in the planning phase is comprehensive
investigation and evaluation (2) The CSFs in the implementation phase is effective
project management team (3) The CSFs in the stabilization phase is appropriate
information management system (4) The CSFs in the improvement phase is change on
demand and continue to innovate (5) The CSFs throughout the product life cycle is
business process rebuilding [131]
Van Stijn E and Wensley A (2001) ldquoOrganizational memory and the completeness of
process modeling in ERP systems some concerns methods and directions for future
researchrdquo mentioned that Enterprise resource planning (ERP) systems not only have a
broad functional scope promising to support many different business processes they also
embed many different aspects of the companyrsquos organizational memory Disparities can
exist between those memory contents in the ERP system and related contents in other
memory media such as individualsrsquo memories and the organizational structure and
culture It is our contention that in general these disparities or memory mismatches as
we will refer to them lead to under-performance of ERP systems In this paper they focus
on potential memory mismatches that may arise with respect to the embedding of process
knowledge within ERP packages Packages such as SAP provide a varied and rich
environment for process modeling However they suspect that there are still many
instances where process knowledge is either lost or represented in different ways in
different parts of the organization The overall thrust of the paper is to identify a variety
of concerns intriguing questions and avenues for future research [112]
Eric Kimberling (2008) in his article ldquo The Role of Lean Six Sigma in ERPrdquo insisted
that there are a number of things to consider when considering a new ERP system like six
sigma lean manufacturing or other business transformation projects that has the capacity
to measure reducing waste managing change well continuous improvement etc [133]
William H Gaw (2010) ldquoEight Basics of Lean Six Sigma for Manufacturing Firmsrdquo In
the efforts to draw closer to customers many manufacturers have lost focus on what
should be a companyrsquos primary success factor ndash profitable growth In todayrsquos competitive
49
manufacturing environment it takes more than quick fixes outsourcing and downsizing
for companies to consistently achieve their growth and profit objectives While these
options may yield temporary financial relief they will not lead the way to long-term
growth and profitability For companies to grow and consistently exceed bottom line
expectations they need to get lean And to get lean they should master eight basics of
Lean Six Sigma in the form of information integrity performance measurement
sequential production point-of-use logistic cycle time management production linearity
and resource planning and customer satisfaction [134]
Brehm L and Markus M L (2000) in The Divided Software Life Cycle of ERP
Packages mentioned that traditional information system life cycle (SLC) focuses on the
activities performed by company developing implementing and maintaining software for
its own internal use Enterprise resource planning (ERP) software packages change the
SLC in several important ways This paper presents an extension of the SLC model for
ERP packages The lsquodivided software life cyclersquo (DSLC) model features an equal
emphasis on the activities performed by the ERP adopting company and the ERP vendor
[15]
Alavi M and Carlson P (1992) A Review of MIS research and disciplinary
development The perceived status of journals in which MIS research is published is an
important issue to academics The number of IS-related journals has increased through
the years yet it is not obvious which are the ldquoleadingrdquo journals or what criteria should be
used to determine this This article addresses these issues by (1) evaluating and
analyzing previous studies in which MIS related journals have been ranked (2)
determining top-ranked journals and placing them into two levels or tiers based on
previous studies and (3) establishing a profile through a systematic analysis of the nine
journals in the first tier This study identified 17 highly ranked journals for publication
Nine were placed in the first tier and eight in the second tier In addition to IS-specific
journals publications included management science computer science and business-
oriented journals The individual strategies for improving software productivity are
identified Issues related to software costs and controlling them are examined and
discussed It is pointed out that a good framework of techniques exists for controlling
software budgets schedules and work completed but that a great deal of further progress
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 38
49
manufacturing environment it takes more than quick fixes outsourcing and downsizing
for companies to consistently achieve their growth and profit objectives While these
options may yield temporary financial relief they will not lead the way to long-term
growth and profitability For companies to grow and consistently exceed bottom line
expectations they need to get lean And to get lean they should master eight basics of
Lean Six Sigma in the form of information integrity performance measurement
sequential production point-of-use logistic cycle time management production linearity
and resource planning and customer satisfaction [134]
Brehm L and Markus M L (2000) in The Divided Software Life Cycle of ERP
Packages mentioned that traditional information system life cycle (SLC) focuses on the
activities performed by company developing implementing and maintaining software for
its own internal use Enterprise resource planning (ERP) software packages change the
SLC in several important ways This paper presents an extension of the SLC model for
ERP packages The lsquodivided software life cyclersquo (DSLC) model features an equal
emphasis on the activities performed by the ERP adopting company and the ERP vendor
[15]
Alavi M and Carlson P (1992) A Review of MIS research and disciplinary
development The perceived status of journals in which MIS research is published is an
important issue to academics The number of IS-related journals has increased through
the years yet it is not obvious which are the ldquoleadingrdquo journals or what criteria should be
used to determine this This article addresses these issues by (1) evaluating and
analyzing previous studies in which MIS related journals have been ranked (2)
determining top-ranked journals and placing them into two levels or tiers based on
previous studies and (3) establishing a profile through a systematic analysis of the nine
journals in the first tier This study identified 17 highly ranked journals for publication
Nine were placed in the first tier and eight in the second tier In addition to IS-specific
journals publications included management science computer science and business-
oriented journals The individual strategies for improving software productivity are
identified Issues related to software costs and controlling them are examined and
discussed It is pointed out that a good framework of techniques exists for controlling
software budgets schedules and work completed but that a great deal of further progress
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 39
50
is needed to provide an overall set of planning and control techniques covering software
product qualities and end-user system objectives [4]
Boehm BW (1988) A Spiral Model of Software Development and Enhancement
provides a short description is given of software process models and the issues they
address An outline is given of the process steps involved in the spiral model an evolving
risk-driven approach that provides a framework for guiding the software process and its
application to a software project is shown A summary is given of the primary advantages
and implications involved in using the spiral model and the primary difficulties in using it
at its current incomplete level of elaboration [13]
Kendall KE and Kendall JE (1999) ldquoSystems analysis and designrdquo discussed that the
persistence of the software crisis ndash budget overruns exceeded time frames not meeting
userrsquos requirements and total failure of information systems development projects ndash
provides a host of motivations for the reconsideration of the state-of-the-art in
information systems development[86] In order to overcome these highly undesirable
results it is widely believed that the development of more rigorous theoretical foundations
for information systems development is the key to success [58]
Kirchmer M (1998) ldquoBusiness process oriented implementation of standard software
how to achieve competitive advantage quickly and efficientlyrdquo shows readers how a
company can achieve its strategic goals through a business process oriented
implementation of standard software The necessary methods and tools are presented
helping managers implement standard software which will help their organizations
achieve maximum operational effectiveness [61]
Launi JD (1991) in A Structured Methodology for Off-the-Shelf Software
Implementation proposes an implementation process model for integrating eXtensible
Markup Language (XML) into enterprise applications which also meets the inter-
organization data exchange standard of RosettaNet [88] This model is motivated by the
Manufacturing Execution System (MES) group of Taiwans Mechanical Industry
Research Laboratories (MIRL) in meeting their needs on enterprise applications
integration for producing the data exchange specifications There are seven stages in this
process model but only the analysis-and-design stage is specific to XML characteristics
for defining Data Type Definition (DTD) to be used with XML in the inter-organizational
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 40
51
data exchange This paper illustrates the core sub-process of defining DTD and producing
XML documents We start with a MIRL example regarding information exchange of a
work order between the MIRL-MES and an ERP system connected by IBM MQSeries
Then the RosettaNet components are used to demonstrate how additional elements can be
incorporated in the analysis-and-design stage by comparisons [66]
The software life cycle (SLC) has been a center of attention in IS research for decades
The SLC is the process by which an information system is developed used and
maintained until it is retired Morrison J and George JF (1995) in Exploring the
software engineering component in MIS research proposed five major activities in IT
system development Constructing a Conceptual Framework Developing a System
Architecture Analyzing amp Designing the System Building the Prototype System and
Observing amp Evaluating the System (Nunamaker Chen amp Purdin 1990-91) In addition
Morrison and George drew the whole picture of IT system development based on the
process of Nunamaker Their process is added the stages of research problemsquestions
identification and conceptualpractical contributions [80]
Pressman RS (1997) ldquoSoftware Engineering a practitioners approachrdquo McGraw-Hill
New York is an award-winning book that uses a unique QampA format to present
management guidelines for instituting and understanding software engineering
technology Making Software Engineering Happen This is the first book to address the
critical management problems associated with software process improvement and
Software Shock a treatment that focuses on software and its impact on business and
society [85]
The book ldquoClass A ERP Implementation Integrating Lean and Six Sigmardquo by Donald H
Sheldon (2005) facilitates detailed understanding of Class A ERP in a how to
approachable format which describes how ERP Lean and Six Sigma can be combined to
create the perfect environment for continuous improvement Today every organization
strives to optimize its operations further based on the type of problems combining Lean
andor Six Sigma tools with traditional project management techniques for ERP
Implementation can be a powerful combination for ERP Sustainability for all types of
Enterprises With the increasing demand for process integration both within and across
organizational and industry boundaries this quest has gained further momentum with the
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 41
52
concept of Class A ERP Implementation It presents comprehensive coverage on all
aspects of ERP including top management planning cost planning Sales and Operations
Planning (SampOP) master scheduling execution planning procurement process planning
supply chain management shop floor control and customer service It exemplifies audit
criteria for confirmation of Class A performance and offers valued insights into
management systems and accountability infrastructures allowing more employee
involvement and successful sharing of business goals through the use of ERP disciplines
[96]
Abdinnour-Helm S Lengnick-Hall ML and Lengnick-Hall CA (2003) ldquoPre-
implementation attitudes and organizational readiness for implementing an enterprise
resource planning systemrdquo mentioned that past efforts to relate the management of
human resources to a firms business strategy have taken three approaches matching
managerial style or personnel activities with strategies forecasting manpower
requirements given certain strategic objectives or environmental conditions and
presenting means for integrating human resource management into the overall effort to
match strategy and structure In this article the literature on each of these approaches is
reviewed and a typology is presented that posits a reciprocal interdependence between a
firms business strategy and its human resources strategy Implications for research and
practice are discussed [1]
Aladwani AM (2001) ldquoChange management strategies for successful ERP
implementationrdquo the purpose of this research is to develop and provide a preliminary
validation of a model for how change management during an ERP implementation affects
the effectiveness of that ERP implementation This paper proposes a revised Klein et al
innovation implementation model that explicitly considers change management The
applicability of the revised model to describe the effect of change management on the
implementation climate and implementation effectiveness of an ERP implementation is
assessed using a case study at a large Australian multinational organization Specific
change management activities are identified and described Qualitative verification of a
proposed ERP innovation implementation model that incorporates the effect of change
management is provided [3]
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 42
53
Al-Mudimigh A Zairi M and Al-Mashari M (2001) ldquoERP software implementation
an integrative frameworkrdquo finds the ways to explore the current literature base of critical
success factors (CSFs) of ERP implementations prepare a compilation and identify any
gaps that might exist The most significant finding is the lack of research that has focused
on the identification of CSFs from the perspectives of key stakeholders Additionally
there appears to be much variance with respect to what exactly is encompassed by change
management one of the most widely cited CSFs and little detail of specific
implementation tactics This research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [5]
Bajwa DS Garcia JE and Mooney T (2004) ldquoAn integrative framework for the
assimilation of enterprise resource planning systems phases antecedents and outcomesrdquo
Change management is the other most widely cited critical success factor This concept
refers to the need for the implementation team to formally prepare a change management
program and be conscious of the need to consider the implications of such a project This
might be accomplished through education about the benefits and need for an ERP system
[8]
Chung WWC (2001) ldquoReference site methodology for exploitation research in small
medium enterprisesrdquo this research provides a comprehensive compilation of all
previously identified ERP implementation success factors through a clearly structured
methodological approach [23]
Dong L (2001) ldquoModeling top management influence on ES implementationrdquo focused
on the influence of top management support to minimize risks involved in enterprise
systems (ES) implementation while maximizing benefits has become a challenge for top
management This article proposes a conceptual model exploring impacts of top
management on ES implementation effectiveness Taking a perspective of innovation
implementation this paper addresses two research questions what influences does top
management exercise on the ES implementation Second what does top management
contribute to a successful ES implementation under different implementation modes
Based on Klein and Sorras model this paper develops a research model and identifies
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 43
54
three top management influences The paper concludes with potential contributions to IS
researchers and business practitioners [30]
Grant GG (2003) ldquoStrategic alignment and enterprise systems implementation the case
of Metalcordquo expressed the need to create alignment between business and IT Translated
into the domain of business process management (BPM) this will put demand on
achieving alignment between used models in process modeling An action research
approach has been adopted to explore a multi-layered thinking in process modeling
which has been validated through the development and application of a multi-layered
framework with a consultancy firm Applying the multi-layered framework has addressed
three areas of concern related to managing alignment 1) focal areas 2) abstraction levels
and 3) degree of formalism In this setting a multi-layered thinking during process
modeling and design has facilitated managing alignment of business and ISIT Further
research however concerns the application of the framework in other settings [42]
Gulledge TR and Sommer RA (2002) ldquoBusiness process management public sector
implicationsrdquo the objective of this work is to present the adoption of process
management and expose the usefulness of information technology to support operations
and measure performance indicators in a centenary Public Institution of Undergraduate
Education (PIUE) during a project of administrative process improvement The
methodology used was the case study with qualitative and quantitative approach The
results obtained measured by performance indicators were very satisfactory since the
studied process has reached significant improvement with respect to throughput time and
quality of output Moreover given the major need for improvement of the processes of
the public sector the case description and the analysis of the results present evident
practical application providing a base for future work [44]
Kalling T (2003) ldquoERP systems and the strategic management processes that lead to
competitive advantagerdquo this exploratory study examines the coexistence of enterprise
resource planning (ERP) applications and quality management initiatives as they relate
to competitive advantage and supplier influence Using a qualitative methodology the
results support the following (a) a resource-based view that ERP implementation
influences competitive position and performance only indirectly through interactions with
other resources (b) that ERP applications do not adequately address the procedural and
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 44
55
system complexities of the existing quality programs used by aerospace manufacture and
(c) that ERP implementation increases the influence of the focal firm over the suppliers
quality improvement system[57]
Mabert VA Soni A and Venkataramanan MA (2003) ldquoEnterprise resource
planning managing the implementation processrdquo this paper empirically investigates and
identifies key differences in the approaches used by companies that managed their
implementations on- time andor onunder-budget versus the ones that did not using data
collected through a survey of US manufacturing companies that have implemented ERP
systems Logistic regressions are used to classify on-time and onunder-budget firm
groups based on the survey responses and to identify the significant variables that
contribute to on-time and on under-budget implementation performance The results
indicate that many different factors ranging from pre-implementation planning to system
configuration influence performance which managers should be sensitive about when
implementing major systems like ERP [72]
Mandal P and Gunasekaran A (2003) ldquoIssues in implementing ERP a case studyrdquo
they identified factors that appeared to explain variation between successful and
unsuccessful implementations for ERP through a case study besides factors that
appeared to be innovative or counter-intuitive in light of the established literature[75]
Nah FF-H Lau JL-S and Kuang J (2001) ldquoCritical factors for successful
implementation of enterprise systemsrdquo through a comprehensive review of the literature
11 factors were found to be critical to ERP implementation success - ERP teamwork and
composition change management program and culture top management support
business plan and vision business process reengineering with minimum customization
project management monitoring and evaluation of performance effective
communication software development testing and troubleshooting project champion
appropriate business and IT legacy systems The classification of these factors into the
respective phases (chartering project shakedown onward and upward) in Markus and
Tanis ERP life cycle model is presented and the importance of each factor is discussed
[82]
Ribbers PMA and Schoo K C (2002) ldquoProgram management and complexity of ERP
implementationsrdquo in their reference to the change management activities required for
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 45
56
success In some cases they have referenced the need to build acceptance and
commitment to the change [89]
Robey D Ross JW and Boudreau M C (2002) ldquoLearning to implement enterprise
systems an exploratory study of the dialectics of changerdquo this paper reports on a
comparative case study of 13 industrial firms that had implemented an enterprise resource
planning (ERP) system Firms were compared based on their dialectical learning process
All firms had to overcome knowledge barriers of two types those associated with the
configuration of the ERP package and those associated with the assimilation of new
work processes They examined the mechanisms through which firms attempted to
overcome each type of knowledge barrier They also observed different ERP
implementation approaches piecemeal and concerted In the former approach firms
concentrated on the technology first and on process changes second In the latter
approach both the technology and the process changes were tackled together The
learning challenges associated with each of these approaches were found to be different
[90]
Ross JW and Vitale MR (2000) ldquoThe ERP revolution surviving vs thrivingrdquo This
paper presents preliminary findings from a research project that examined how firms are
generating business value from their investments in enterprise resource planning (ERP)
systems The research which was done jointly with Benchmarking Partners describes the
stages of ERP implementation the obstacles that firms encountered in generating benefits
from the systems and some critical success factors for getting business value from the
implementation of an ERP system in business [92]
SR Siriginidi (2000) ldquoEnterprise resource planning in reengineering businessrdquo
emphasized on Implementation strategy and timeframe under a phased approach Finally
this concept also considers implications of multi-site issues [99]
Tarafdar M and Roy RK (2003) ldquoAnalyzing the adoption of enterprise resource
planning systems in Indian organizations a process frameworkrdquo this chapter describes a
three-stage model for analyzing the deployment of ERP in developing countries based on
an empirical study of ERP implementation exercises in Indian organizations Each stage
describes a specific aspect of the implementation process The specific characteristics of
each stage and their implications for managers have also been discussed [107]
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 46
57
Trimmer KJ Pumphrey LD and Wiggins C (2002) ldquoERP implementation in rural
healthcarerdquo Enterprise resource planning (ERP) systems provide organizations with the
opportunity to integrate individual functionally-oriented information systems Although
much of the focus in the popular press has been placed on ERP systems in large for-profit
organizations small hospitals and clinics are candidates for ERP systems Focusing
information systems on critical success factors (CSFs) allows the organization to address
a limited number of areas associated with performance This limited number of factors
can provide management with an insight into dimensions of information that must be
addressed by a system The results indicate support for the continuing use of CSFs to help
focus on the benefits of ERPs Focusing on groups of tangible and intangible benefits can
also assist the rural health-care organization in the use of ERPs [109]
Umble EJ Haft RR and Umble MM (2003) ldquoEnterprise resource planning
implementation procedures and critical success factorsrdquo said that Enterprise resource
planning (ERP) systems are highly complex information systems The implementation of
these systems is a difficult and high cost proposition that places tremendous demands on
corporate time and resources Many ERP implementations have been classified as failures
because they did not achieve predetermined corporate goals This article identifies
success factors software selection steps and implementation procedures critical to a
successful implementation A case study of a largely successful ERP implementation is
presented and discussed in terms of these key factors [110]
Willcocks LP and Stykes R (2000) ldquoThe role of the CIO and IT function in ERPrdquo
focused on the need for a Balanced Implementation team that spans the organization as
well as one that possesses a balance of business and IT skills [119]
Williams JJ and Ramaprasad A (1996) taxonomy of critical success factorsrdquo
proposes a taxonomy of critical success factors in an attempt to formalise the concept
The proposed taxonomy is based on four levels of criticality and three sets of
dichotomous attributes The four levels of criticality in descending order of strength are
factors linked to success by a known causal mechanism factors necessary and sufficient
for success factors necessary for success and factors associated with success The three
sets of dichotomous attributes are standinginstigating directindirect and
enhancinginhibiting The taxonomy provides a framework for systematically classifying
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 47
58
CSFs extant in literature and practice Such classification will reveal the nature extent
and sources of biases in the CSFs literature if any and help in correcting the biases if
necessary and possible The taxonomy can also be used to structure methodologies for
eliciting CSFs and thus ensure that the factors elicited are unbiased and complete [120]
In Willis TH and Willis-Brown AH (2002) ldquoExtending the value of ERPrdquo two
distinct phases of ERP have been identified The first phase refers to the changes that an
organization undergoes in transforming from the old system and going live with the
ERP system The second phase also called the second wave of ERP refers to the actions
subsequent to ERP implementation that enable the organization to achieve the full
capabilities and benefits of ERP The paper examines the problems organizations
frequently experience with ERP implementations and suggests strategies for extending
the value of ERP systems [121]
Wood T and Caldas MP (2001) ldquoReductionism and complex thinking during ERP
implementationsrdquo this paper contrasts complex thinking and reductionism during broad
organizational transformation processes focusing on Enterprise Resource Planning
(ERP) rage ERP implementations have resulted in huge investments for companies
around the globe over the last few years and have been promoted as a management
panacea Not surprisingly many implementations have failed to live up to expectations
For those dealing with organizational change the ERP phenomenon may sound
uncomfortably familiar This study introduces the phenomenon presents a summary of
an exploratory field survey of 28 implementation experiences and discusses reductionism
in the realm of ERP implementations It is argued that by applying complex thinking
rather than techno reductionism and systemic-reductionism they may open new avenues
towards explaining the phenomenon [122]
Xu H Nord JH Brown N and Nord GD (2002) ldquoData quality issues in
implementing an ERPrdquo Data quality is a critical issue during the implementation of an
enterprise resource planning (ERP) system Data quality problems can have a significant
impact on an organizationrsquos information system Therefore it is essential to understand
data quality issues to ensure success in implementing ERP systems This paper uses SAP
as an example of an ERP system and describes a study which explores data quality
problems with existing systems and identifies critical success factors that impact data
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 48
59
quality The study resulted in the development of a framework for understanding data
quality issues in implementing an ERP and application of this framework in a case study
in two large Australian organisations The findings of the study suggest that the
importance of data quality needs to be widely understood in implementing an ERP as
well as providing recommendations that may be useful to practitioners [123]
Yusuf Y Gunasekaran A and Abthorpe MS (2004) ldquoEnterprise information systems
project implementation a case study of ERP in Rolls-Roycerdquo Economic globalisation
and internationalisation of operations are essential factors in integration of suppliers
partners and customers within and across national borders the objective being to achieve
integrated supply chains In this effort implementation of information technologies and
systems such as enterprise resource planning (ERP) facilitate the desired level of
integration There are cases of successful and unsuccessful implementations The
principal reason for failure is often associated with poor management of the
implementation process This paper examines key dimensions of implementation of ERP
system within a large manufacturing organisation and identifies core issues to confront in
successful implementation of enterprise information system A brief overview of the
application of ERP system is also presented and in particular ERP software package
known as SAP R3 which was the ERP software package selected by Rolls-Royce plc
The paper takes an in-depth look at the issues behind the process of ERP implementation
via a case study methodology It focuses on business and technical as well as cultural
issues at the heart of the Rolls-Royce implementation The case study also looks at the
implementation time scales and assesses the benefits from the project both tangible and
intangible [128]
Boparai R (2008) ldquoAll about Enterprise Resource Planningrdquo In this study he
addressed the above research gap by presenting a rigorous empirical assessment of ERP
implementations in Indian production firms The implementation status of different ERP
modules performance benefits and the influence of critical success factors (CSFs) are
key issues examined in this study [14]
DrsquoAquila M Shepherd J and Friscia T (2009) ldquoThe Global Enterprise Applications
Software Market Forecast Update 2009-2010rdquo Recent developments and breakthroughs
in Internet and information technology have radically changed the business world
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 49
60
Competition has become just a few clicks away with 24-7 accessibility enabled by
Internet technology [118] In many industries it has become virtually impossible to have
a sustainable business without a proper management of the Internet and information
processes and service outcomes associated with product design sourcing production
order fulfillment logistics and delivery In this context the relationships with suppliers
and customers coupled with supply chain managementmdashthe planning operation and
control of material information and financial flows across individual firms in the
extended enterprisemdash have become crucial for companiesrsquo success [6]
Gartner (2003) ldquoEnterprise application software winning in the Indian marketplacerdquo
More than 21 percent of Indian organizations will deploy at least one type of enterprise
application software in the next 12 months Manufacturing is expected to be the leading
driver of demand Their aim is to deliver the technology-related insight to make the right
decisions every day Through IT research and advice they analyze and interpret the
information technology industry to grow your business and improve competitive position
[37]
Guido C Lelio R and Pierluigi R (2007) in the paper ldquoA methodological approach to
assess the feasibility of ERP implementation strategiesrdquo draw conclusions about good
practice in ERP implementation relating to both risk identification and risk mitigation
which must be based on closing design-reality gaps [38] It offers examples of both
specific and generic actions that help to achieve this But it also notes limitations existing
in some developing country contexts that may continue to constrain the effective use of
enterprise resource planning systems [43]
Jacobs FR and Weston Jr FC (2007) ldquoEnterprise Resource Planning (ERP) ndash A brief
historyrdquo His point is that current ERP technology provides an information rich
environment that is ripe for very intelligent planning and execution logic yet little has
changed since the late 1970s in the logic associated with such applications as forecasting
reorder point logic MRP production scheduling etc The current systems are now just
executing the old logic much faster and in real-time The area is ripe for innovative new
approaches to these old problems This may include partnering with our business
counterparts who live in this dynamic environment on a day-to-day basis [50]
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 50
61
Jacobson S Shepherd J DrsquoAquila M and Carter K (2007) in the study ldquoThe ERP
Market Sizing Report 2006-2011rdquo suggest the main motivators for the implementation of
ERP system the search for systems integration the increasing demand for real-time
information the demand for integration of information systems the need to generate
information for decision- making and the increase of competitiveness in markets [51]
Mabert VA Soni A and Venkataramanan MA (2001) ldquoEnterprise Resource
Planning Measuring Valuerdquo The goals of the study were to describe the firms
implementation experiences measure the business returns as accurately as possible and
determine what factors influenced these experiences and returns In the following section
they outline the specific research issues investigated and the research methodology used
Basic company demographic information follows The next two sections contain an
analysis of businesss ERP returns and implementation success The final section contains
a summary and our conclusions [71]
Mabert VA Soni A and Venkatramanan MA (2003) wrote the paper ldquoThe Impact
of Organization size in Enterprise Resource Planning (ERP) Implementations in the US
Manufacturing Sectorrdquo The goals of the study were to describe the firms implementation
experiences measure the business returns as accurately as possible and determine what
factors influenced these experiences and returns They outline the specific research issues
investigated and the research methodology used Basic company demographic
information follows The next two sections contain an analysis of businesss ERP returns
and implementation success The final section contains a summary and our conclusions
[73]
Shields MG (2001) ldquoE-business and ERP Rapid Implementation and Project
Planningrdquo the author Murrell G Shields outlines a new comprehensive approach to
implementing ERP and e-business applications In it Shields provides an innovative
toolset to understand and achieve a rapid implementation the preferred method in any
organization He also provides guidance on the factors that must be present before an
organization is ready to initiate a successful rapid implementation project This book is
appropriate in that it builds a compelling case for the viability and necessity of a fully
operational rapid implementation scenario From covering the trends and changes in
business and the software industry to explaining how to select application systems and
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 51
62
design the business processes needed in todayrsquos fast-moving e-business environment E-
Business and ERP is the first of its kind to comprehensively explain the requirements of
effective package-enabled process redesign and provide proven strategies to accelerate
package implementation [97]
Wang C Xu L Liu X and Qin X (2005) ldquoERP research development and
implementation in China An overviewrdquo An Enterprise Resource Planning (ERP)
system is a highly integrated enterprise information system that manages all aspects of
the business operations of an enterprise including production planning purchasing
engineering design manufacturing marketing distribution accounting and customer
service In the last two decades Manufacturing Resource Planning (MRP) and ERP have
been successfully introduced into Chinese industry Supported by sponsored research
programmes the research outcomes on ERP systems by Chinese academic researchers
have been directly supporting the Chinese ERP software industry An overview of ERP
research and its development and implementation in China will be given here The
research trend of ERP systems will also be discussed [117]
He X J Wu W (2006) ldquoFactors Affecting Adoption of ERP in Chinardquo this paper
studies the early trends of enterprise resource planning (ERP) in China via an executive
survey and subsequent statistical analysis While ERP has been contributed to increased
efficiency increased revenue and reduced costs companies with horror stories about
their ERP implementation are not uncommon ERP implementation in China is so new
that except for a few large enterprises the vast majority of Chinese enterprises are still
on the sidelines weighing pros and cons Whereas it is complex at any company ERP
implementation will be especially challenging for Chinese enterprises due to small
company sizes transitional enterprise ownership from planned to market economy and
cultural and language barriers Thus this research scrutinizes such ERP pre-
implementation concerns as key factors affecting ERP decisions potential benefits major
obstacles to implementation and unsettled issues with managerial implications to
Chinese enterprises and ERP vendors [46]
Markus M L Axline S Petrie D amp Tanis C (2000) ldquoLearning from Adoptersrsquo
Experiences with ERP Problems Encountered and Success Achievedrdquo This paper
presents the results of a study of the problems and outcomes in ERP projects which were
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 52
63
conducted under the sponsorship of an ERP systems vendor Two basic research
questions were addressed First how successful are companies at different points in time
in their ERP experiences and how are different measures of success related (That is can
early success be followed by failure and vice versa) Second what problems do ERP
adopters encounter as they implement and deploy ERP and how are these problems
related to outcomes The result and findings showed that the success of ERP systems
depends on when it is measured and that success at one point in time may only be loosely
related to success at another point in time Companies experience problems at all phases
of the ERP system life cycle and many of the problems experienced in later phases
originated earlier but remained unnoticed or uncorrected These findings suggest that
researchers and companies will do well to adopt broad definitions and multiple measures
of success and pay particular attention to the early identification and correction of
problems [77]
Ronald D Snee (2010) through his paper Lean Six Sigma ndash getting better all the time
in Emerald International Journal of LSS discussed the origins of the method the what
why and benefits of the method how the approach is different the integration of Lean
and Six Sigma implementation mistakes made lessons learned and developments needed
in the future It is found that deployment and sustaining improvements are major issues
that can be overcome by building a sustaining infrastructure and making improvement a
business process These findings suggest that improvement is most effective when
approached in a holistic manner addressing improvement in all parts of the organization
using a holistic improvement methodology such as Lean Six Sigma The roadmaps
guiding principles and deployment pitfalls identified will be of value to those initiating
and operating improvement processes in their organizations enabling them to rapidly
create useful and sustainable improvements [101]
Zhang Qun Irfan Khattak Zhu X and Hassan (2012) in their contemporary paper ldquoLean
Six Sigma A Literature Reviewrdquo analyzed the published literature related to lean six
sigma from start to date The methodology involves is the review study of 116 papers
related to Lean six sigma from well known database searches including Science Direct
EBSCO host Emerald and Google Scholars The paper includes the results from different
perspectives such as implementation of Lean six sigma Focus Area Focus Industry
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 53
64
Focus Country Year Wise Publications and Year Wise Focus Area and Focus Industry
The review of literature found that Lean Six Sigma is mostly implemented in the Health
industry The research for lean six sigma is on initial stage Lean Six Sigma has been
equally beneficial both for manufacturing or service concerns and Large or small scale
organizations It is quite beneficial for different industries with little modifications as per
industry requirement It is suggested to research on SME sector for implementation of
Lean Six Sigma where the financial capability is a hurdle [130]
25 RESEARCH GAP IN LITERATURE REVIEW
In previous compilation of literature review a number of ERP researchers embarked
upon a taxonomyclassifications of CSFs (Majed Al-Mashari et al 2003 Kalling 2003
Siriginidi 2000 Umble et al 2003 Chen et al 2001) others segregated them on the
basis of specific areas or different phases of implementation and other investigators on
the basis of selection and planning frameworks (Nah et al 2001 Toni M Somers amp
Klara Nelson 2001)[21][57] [74][82][99][103][110] Bingi et al (1999) in the research
paper ldquoCritical issues affecting an ERP implementationrdquo underlines numerous CSFs
without mentioning the methodology behind [12] Bajwa et al (2004) explained a variety
of CSFs at the assimilation stages [8] Al-Mudimigh et al (2001) classified success
factors in terms of strategic tactical and operational groups [5] While Gibson et al
(1999) developed a framework of CSFs for tactical and strategic classes only [41]
Before an adopting company can use an ERP package the package must be configured to
fit organizational structures and processes The process of configuration differs
fundamentally from programming lsquordquoProgramming involves creating new software
functionality Configuration involves adapting the generic functionality of a package to
the needs of a particular organizationrdquo (Markus and Tanis 2000) [77] In the proceeding
of 34th
Hawaii International conference on System sciences IEEE 2001 ldquoTailoring ERP
systems A spectrum of choices and their implicationsrdquo Lars Brehm Armin Heinzl amp
Markus exemplified that the IS literature distinguishes between custom-built and off-the-
shelf software [16] ERP packages are often viewed as off-the-shelf software because
adopters implement them by setting parameters (called configuration) rather than by
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 54
65
traditional programming Making changes to ERP software code (called modification) is
usually strongly discouraged by vendors and implementation consultants Nevertheless
field research has shown that many companies have had to modify ERP software in
various ways to meet essential business needs In this paper they describe a portfolio of
tailoring options between configuration and modification with important implications for
implementation risk and the difficulty of ERP system upgrades but with companyrsquos
advantages [16]
Since ERP reconfiguration involves the concept of software engineering in the research
paper ldquoApplying Contextual Design to ERP System Implementationrdquo Inka Vilpola
Kaisa Vaumlaumlnaumlnen-Vainio-Mattila (2006) applied the concept of software engineering for
smooth and strategic implementation of ERP [113] ERP systems are commercial-off-the-
shelf products (COTS) that seldom totally fit into the companyrsquos existing business
processes Contextual Design (CD) can be used to model the context of use for an ERP
system In this research introduction of three case companies demonstrate that the
application of CD supports the selection of a suitable system and helps the organization
and people adjust their tasks to the new ERP systemrsquos processes Introducing user-
centeredness in ERP implementation improves the implementation process and leads to
the success of the contextual change A companyrsquos efficiency and productivity depend on
how fast and completely the organization adopts the new ERP system [113] Further in
next paper ldquoRescuing Small and Medium-sized Enterprises from Inefficient Information
Systems ndash a Multi-disciplinary Method for ERP System Requirements Engineeringrdquo Inka
Vilpola Ilkka Kouri and KaisaVaananen-Vainio-Mattila (2007) argue that Small and
medium-sized enterprises (SMEs) require flexibility of the ERP system because of their
individual operational processes[114]To support the requirements engineering of ERP
systems they have developed Customer-Centered ERP Implementation (C-CEI) method
The method introduces a multi-disciplinary approach to the ERP project and provides in-
depth understanding of the companylsquos processes and context of use [114]
Most research on ERP systems deals with the question of how to implement them
successfully in an adopting organization Life cycle models of ERP implementation are
relatively common they typically focus on activities performed by adopting companies
or their agents (consultants or system integrators) but they generally ignore the activities
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 55
66
of vendors In a study of some two dozen companies Markus and Tanis (2000) identified
the following phases in a life cycle that extended beyond initial package implementation
ldquocharteringrdquo ldquoprojectrdquo (with configuration and roll-out) ldquoshakedownrdquo and ldquoonward and
upwardrdquo [77] Ross also investigated the life cycle of ERP packages through 40 telephone
interviews at 15 different companies She divided it into the stages of design
implementation stabilization continuous improvement and transformation [92] Neither
of these studies identified the life cycle activities performed by software vendors
ldquoCritical Factors for Enterprise Resources Planning System Selection and
Implementation Projects within Small to Medium Enterprisesrdquo is very relevant and
contemporary paper presented by D Reuther amp G Chattopadhyay [87] The paper
presents research on ERP system as a business tool for growth of SME with limited
resources (money people and time) and ongoing costs for overall success Rui-Xue Fu
Zhan-Hong Xin and Can Chen suggests that with the gradual extension of information
technology to enterprise ERP systems become more and more complex and some new
requirements that focus on both manufacturing activities and the supply chain are brought
forward to SMEs [35] The purpose of the new research project by Nach amp Albert
Lejeune (2008) helped to consolidate and formalize as ontology the key processes and
skills required for successful implementation of ERP in an SME [81] Parijat Upadhyay
explores the existing literature on ERP implementation issues in context to SMEs and
attempts a compilation of the factors that assume great significance implementing ERP in
SMErsquos [111] While Zheng Leina Pan Tiejun Ren Guoyan and Fang Chengb (2008)
analyzed the fact that E-commerce and the development of modern enterprise
management raise a number of challenges in the process of informatization of SME in
China [132] The latest trend can be set in ERP by SV Deshmukh and RR Lakhe
(2008) in their IEEE research paper ldquoSix Sigma ndash An Innovative Approach for Waste
Reduction A Case Study of an Indian SMErdquo They presented a case study aimed at
reducing waste at an SME engaged in manufacturing of corrugated boxes The study
confirmed successful implementation of six sigma to minimize waste generation and in
terms saving in manufacturing costs or increasing the bottom line but they have not used
the concept of Lean with Six Sigma [29]
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 56
67
Many researchers have been specific in their reference to the change management
activities required for success In some cases they have referenced the need to build
acceptance and commitment to the change (Holland and Light 1999 Shanks and Parr
2000 Abdinnour-Helm et al 2003 Bajwa et al 2004) and address resistance (Ross and
Vitale 2000 Hong and Kim 2002 Skok and Legge 2002) the need to communicate
(Ribbers and Schoo 2002) the need to understand benefits and drawbacks (Bingi et al
1999 Aladwani 2001) the need to educate (Siriginidi 2000a b) and the need to
consider and address organizational culture issues (Davison 2002 Al-Mashari et al
2003 Aladwani 2001 Nah et al 2001 Scott and Vessey 2000 Tarafdar and Roy
2003 Skok and Legge 2002) [1] [3] [8] [12] [27] [47] [60] [74][82] [83] [89] [92]
[95][99] [100][107] Tarafdar and Roy (2003) note the importance of the need to manage
organizational change throughout the implementation stage They acknowledged that
some employees find it difficult to accept new reporting structures and new job processes
[107] Similarly Umble et al (2003) also recognize the impact that such a project has on
corporate culture and suggest that people need to be prepared for the change They
further state ldquoIf proper change management techniques are utilized the company should
be prepared to embrace the opportunities provided by the new ERP systemrdquo (p 245)
[110] As evidenced by the above references the views on change management and
exactly what change management involves vary greatly This needs to be further
explored so that these ideas can be better presented in a manner that makes it possible for
the ldquochange managerrdquo to effectively implement and control this success factor
Many strategies have been uncovered however strategies alone are not sufficient for
SMEs ERP implementation success factors Guido C Lelio R and Pierluigi R (2007)
mentioned that project implementation phase is the most vulnerable to failure [43] Some
companies are implementing Lean tools manually Some are modifying ERP software or
incorporating third party Lean add-on softwaresystems to enhance functionality An
isolated few are still trying to do homegrown applications DrsquoAquila M Shepherd J
and Friscia T (2009) in AMR Research emphasized that cultural change education and
leadership are also needed to help alter how organizations are run[6]
As a new trend Lean tools are gradually being incorporated into standard ERP offerings
but are lagging behind the pace of the overall Lean movement Some ERP vendors are
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 57
68
now addressing it more through white papers than product development As mentioned
previously third party vendors are helping to fill the gap Some of these may be
ultimately acquired by the enterprise software vendors Donald H Sheldon (2007)
facilitates detailed understanding of Class A ERP in a how to approachable format
which describes how ERP Lean and Six Sigma can be combined to create the perfect
environment for continuous improvement [96] Ronald D Snee (2010) in his paper
Lean Six Sigma ndash getting better all the time discussed the origins of the method the
what why and benefits of the method how the approach is different the integration of
Lean and Six Sigma implementation mistakes made lessons learned and developments
needed in the future[101] While Zhang Qun et al (2012) in ldquoLean Six Sigma A
Literature Reviewrdquo analyzed the published literature related to lean six sigma from start
to date Their literature analysis found lean six sigma equally beneficial for
manufacturing or service concerns as well as large or small scale organizations It is also
helpful for different industries with little modifications as per industry requirement
Finally they suggested to research on SME sector for implementation of LSS where the
financial capability is a hurdle Further 2013 ERP report by Panorama Consulting
Solutions revealed that despite stiff competition faced by Tier I solutions SAP Oracle amp
Microsoft Dynamics with substantial resources Tier II Vendors Epicor and Infor are
making their base in the ERP market for small and medium business organizations Cloud
and SaaS market share continues to increase but on-premise ERP systems still dominate
[139]
In summary review of extant literature reveals that there is a pressing need to bridge the
research gap related to SMErsquos successful ERP implementation by optimizing lean six
sigma project methodology Although the market for cloud usage is growing its adoption
rate continues to suffer from the perception that it is a risky endeavor Marketing
Development CRM and Human Resources are equally crucial areas needed for success
and to define and prioritize MCSFs [18] [23]
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 58
69
26 EXPECTED CONTRIBUTION OF LITERATURE REVIEW
The literature analysis and review from much acclaimed researchers of international
repute is intended for mid- to senior-level IT and business leaders of developing and
developed countries who need to get better information to make more informed
decisions about ERP selection and implementation for their small and medium
enterprises For this purpose
1 We would like to use software engineering techniques as CDs CIs modeling and
interpretation of data consolidating the model affinity wall work redesign (ERP
Langoitus) etc and better project management techniques suitable for SMES
2 We would like to optimize parameters defined for various ERP typologies
tailoring options as mentioned in table 1 towards successful ERP
implementation and up gradation This research can lead to the road to prosperity
if one can choose steps carefully after analyzing the strengths amp acquiring skills
needed to make the organization proficient profitable and robust with time
proven technology
3 We would like to identify Critical Success Factors (CSFs) which are most critical
in ERP implementations It will also determine which factors are Temporal ie
significant in the implementation process for a particular period in time This
information can be used to identify anticipate and allocate time and resources
across those factors that need attending to effective project monitoring [2] [74]
Simultaneously it will also provide an understanding of the other factors and their
importance throughout the various phases of ERP implementation which in turn
can serve as a useful guide for the firms
4 Taking into consideration the SMErsquos higher potential for growth in terms of
opportunity output employment and export we would like to explore and
employ low cost new methods for ERP to allow its general purpose wide
application in developing countries like India Thus we will try to find out simple
and suitable factors that will be safe to use easy to handle with excellent stability
and rapid switching time
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
Page 59
70
5 We would like to propound a theoretical model that requires the innovative
combination Software Engineering Project Management and Lean Six Sigma
techniques for successful implementation of ERP This research work is also
intended to examine complex phenomena of simulating ERP implementation
project similar and dissimilar of any IT project
