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Приложение А (Обязательное) Раздел 4 Сompilation and analysis of ERP implementation critical success factors Студент: Группа ФИО Подпись Дата 3БМ41 Зайковская Анастасия Станиславовна Консультант кафедры (аббревиатура кафедры) : Должность ФИО Ученая степень, звание Подпись Дата Доцент Соболева Е.Н. к.э.н., доцент Консультант - лингви ст кафедры (аббревиа тура кафедры) : Должность ФИО Ученая степень, звание Подпись Дата Старший преподаватель Богоряд Н.В. 136 Literature review The enterprise resource planning (ERP) system is an integrated set of programs that provides support for core organizational activities such as manufacturing and logistics, finance and accounting, sales and marketing, and human resources. An ERP system helps the different parts of the organization share data and knowledge, reduce costs, and improve management of business processes. Literature survey, such as literature review, in any academic field is considered to be useful to give a good look at the whole research field, to highlight the important studies, and to pinpoint the potential opportunity for future research. Hence, we intend to study and analyze relevant previous literature reviews in ERP field in order to form a roadmap of ERP field. In order to form a roadmap of ERP field and to address some issues in literature reviews of ERP field, we conduct a comprehensive literature survey of literature reviews in ERP research field. In ERP field, the latter overall literature reviews deal with much more articles than before. Besides the explosion of ERP research, one reason may be the development of internet which provides powerful search engines and a bunch of open access publishers. All the research was conducted in developed country zones, and all of them fit the inductive type of literature reviews. Another trend is that the proceedings seem to not be included in the research object. Combined with the time frame (Figure 1), the distribution of literature reviews in ERP field can be seen more clearly. The overall review has been conducted almost every year or even twice a year. The category of operating themes is almost evenly distributed as well as the assorted category. One peak appeared between 2010 and 2012. The rising of research on CSFs (critical success factor) and SMEs (small and medium- sized enterprises) is the major driver. The type of ERP and the field approach categories are also emerging lately. [46] 137 Figure 1 − Number of publications of literature reviews categorized by years [46] Some gaps and future trends can be deduced. First, the research on SMEs will continuously increase. Many new ERP vendors especially in developing countries are providing more and more economic product that can be easily implemented and maintained by SMEs. The potential shorter life cycle in SMEs makes better samples to address more operating issues. Second, research focused on certain industry is insufficient. Management in different industries varies a lot, so do the ERP systems adopted by organizations in different industries. Third, research on adopting different types of ERP can be paid more attention to. New types of ERP with distinctive features are certainly emerging every year. On the contrary, research on this topic is hard to find. A few issues on literature reviews and ERP research field can be addressed throughout our analysis. Overall literature review as one of the most valuable research types needs more continuity, objectivity, and integrality. In other categories of 138 literature reviews, the specific depiction of methodology is essential as well as a distinctive perspective or an extraordinary result. The sufficiency of systematic and theoretical reviews refers to the important to increase methodologically sound and theoretically grounded research. In ERP research field, the topics in the post-implementation phase are heating up recently but still in its initial stage. Although more and more research mentions the post issues, few of them will take post issues as their major research object. Research on SMEs will continuously increase. The development of ERP in specific area or industry is considered to be critical due to the potential diversity of ERP industry in the future. Looking for the distribution of research across geographical areas is a potential perspective of researching as well. The future direction of CSFs research may be in the post-implementation stage and the implementation of a new type of ERP on which little empirical research has been conducted yet. More longitudinal case study should be launched for overall awareness in ERP usage as well as empirical research on new generation of ERP. [46] In the following research, we will mainly focus on the issues of ERP in organizations in the post-implementation phase. More structural framework is needed to organize the research issues, gaps, and future trends. Figure 2 − ERP packages implemented [56] 139 Enterprise resource planning (ERP) systems are commercial software packages that enable the integration of transaction-oriented data and business processes throughout an organization (Markus and Tanis, 2000). As increasing numbers of organizations across the globe have chosen to build their IT infrastructure around this class of off-the-shelf applications, there has been a greater appreciation for the challenges involved in implementing these complex technologies. Figure 2 shows the commercial ERP packages selected by the companies that implemented these solutions. SAP was the most popular choice of package (34 percent). Typically, a number of modules related to finance, human resources, payroll, procurement, contracts, shipping, billing, plant maintenance, production planning and manufacturing execution were implemented. Table 10 Strategic and tactical CSFs for ERP Implementation [58] Strategic critical success factors Tactical critical success factors • Top management commitment and support Visioning and planning • Build a business case • Project champion • Implementation strategy and timeframe Vanilla ERP • Project management • Change management • Managing cultural change • Balanced team • Project team: the best and brightest Communication plan • Empowered decision makers • Team morale and motivation • Project cost planning and management BPR and software configuration Legacy system consideration • IT infrastructure • Client consultation • Selection of ERP • Consultant selection and relationship Training and job redesign • System testing • Post-implementation evaluation The success of the ERP implementation was assessed by eliciting the overall satisfaction of key stakeholders and by evaluating the extent to which the 140 implementation met the goals of the organization. The result indicated that most of companies reported a medium satisfaction level; the average of satisfaction level and goal-met satisfaction was 4.76 (SD 1⁄4 1:13) and 5.05 (SD 1⁄4 0:89), respectively based on 1 (not satisfied at all) to 7 (very satisfied) scale. Later these two measures are added to measure success as Cronbach’s alpha reaches 0.832. [56] A total of 70 articles were reviewed and 45 were considered to contain “success factors” applicable to the research at hand. The first stage of the analysis involved categorizing or grouping like concepts into like categories. Success factors that, at least initially, appeared to refer to the same phenomenon were grouped together. At this point, the proposed relationship was still considered provisional. After completion of this stage, 55 possible success factor categories were identified. A successive round of analysis of the concepts resulted in the collapsing of several categories, producing 26 CSF categories in total. [58] Table 10 shows the final 26 categories of critical success factors of ERP implementations. Considering the research of Holland and Light (1999), it was decided to group the factors into strategic and tactical categories. Strategic factors are those that address the larger picture, and involve the breakdown of goals into do-able elements. Tactical factors, on the other hand, involve skillful methods and details. Specifically, they address accomplishing the various strategic elements that lead to achieving the goal (Pearce, 2004). [58] Assessment of impediments faced in ERP projects The mean scores of a total of 47 impediments that the organizations faced in their ERP implementations are reported in the Appendix. Among different areas, we find cross-functional coordination and project management particularly higher in their criticality than other areas such as ERP software configuration and features, change management, and human resources and capabilities. To investigate the specific impediment items further, we choose five items that are high in both criticality and the extent to which the impediments describe the target organization based on the criteria of one standard deviation (see Table 11). [56] 141 The results again suggest that most critical problems are from project management related to business process change, and functional coordination problems related to inadequate support from functional units and coordination among functional units. Less likely are issues about the software itself. Categorization of impediments and link to successful outcome In order to arrive at a parsimonious model linking the impediments to successful ERP implementation outcomes, we first divided the responding organizations into two groups based on their success measure (median based), and investigated whether there are differences in the impediments the organizations faced between less successful and more successful organizations. Table 12 shows the top five critical impediments for more successful and less successful companies faced in their ERP implementations, respectively. [56] Table 12 Critical impediments for more successful and less successful companies [56] Table 11 Critical impediments [56] 142 We found that there is one common issue faced by all organizations, which is that ERP software lacks some functionality to support existing business processes. Less successful organizations faced more problems with system expertise (perceived complexity of ERP software and only a few people in the organization with adequate understanding) and organizational support (lack of organizational change management expertise and managers not using system-oriented information to improve organizational performance). Relatively more successful organizations face issues of frequent ERP upgrade and a lack of human resources in terms of project implementation. Discriminant analysis was conducted to investigate more systematically the differences between more successful and less successful companies in the perception of the criticality of those factors. For the meaning analysis, we first conducted confirmatory factor analysis of those 47 items on major factors: human resources and capabilities management (HR), cross-functional coordination (FC), ERP software configuration and features (SW), systems development and project management (PM), change management (CM), and organizational leadership (OL). Among the factors initially identified in the previous studies, organizational leadership items are mostly collapsed with change management items, and this we name “post implementation” (PI). Then, we run binary logistic regression of those five major factors (HR, FC, SW, PM, PI) on our success measure. Table 13 shows the result of the analysis. [56] 143 The overall model was moderately significant. Among five major factors, functional coordination (p, 0:05) and ERP software configuration and features (p, 0:1) are significant. The differences in factor scores show that more successful firms scored higher on functional coordination and less on software configuration, than less successful companies. The results clearly indicated that firms that implemented ERP systems more successfully concentrated more on functional coordination. Since the implementation of ERP systems requires changes from different functional areas, breaking functional boundaries, the very process by which these systems are put in place requires coordination across the enterprise. This coordination often comes in the form of joint resource commitments, sharing information and working together for enterprise goals. Therefore, the process of coordination among functional units often requires significant effort that outweighs the resources needed for up-front software purchase (Scheer and Habermann, 2000). More successful companies seem to clearly understand the issues and put functional coordination at the top of their list. Less successful companies, on the other hand, concentrated more on ERP software features and functionality. It seems that they were either overwhelmed by the extensive size and scope of the system, or did not take a new view on ERP systems, but followed the traditional system development approach, and put the system in their priority list. Sources of user resistance Table 13 Discriminant analysis [56] 144 In spite of their benefits, many ERP systems fail (Stratman and Roth, 1999). Many ERP systems face implementation difficulties because of workers' resistance. Al- Mashari and Zairi (2000) assert that effective implementation of ERP requires establishing five core competencies, among which is the use of change management strategies to promote the infusion of ERP in the workplace. Although some studies tried to address this problem by identifying change management strategies that facilitate the success of ERP implementation, many ERP systems still face resistance, and ultimately, failure. The sources and types of user resistance to a new technology, such as ERP, are many. An interesting framework that classifies the types of user resistance to innovations like ERP implementation by source of resistance is that of Sheth (1981). The framework shows that there are two fundamental sources of resistance to innovations like an ERP: perceived risk and habit. Perceived risk refers to one's perception of the risk associated with the decision to adopt the innovation, for example, the decision to accept an ERP system. Habit refers to current practices that one is routinely doing. In order to reduce employees' resistance to ERP implementation, top management of the organization must analyze these sources of resistance and employ the appropriate set of strategies to counter them. Change management strategies for ERP implementation Improvement strategies, such as ERP implementation, commonly involve change. Hence, responsiveness to internal customers is critical for an organization to avoid the difficulties associated with this change (Al-Mashari and Zairi, 2000; Aladwani, 1999; Aladwani, 1998). To assist top management with the complex organizational problem of workers' resistance to ERP implementation, I suggest an integrated, process-oriented conceptual framework consisting of three phases (Figure 3) knowledge formulation, strategy implementation, and status evaluation. [64] The first step in effectively managing change introduced by IT is to identify and evaluate the attitudes of individual users and influential groups (Aladwani, 1998). This analysis should address such questions as: 145 • Who are the resisting individuals and/or groups? • What are their needs? • What beliefs and values do they have? • What are their interests? The answers to these fundamental questions may offer a good starting point in determining the sources of employees' resistance to the ERP system. According to Hultman (1979), employee-raised facts, beliefs, and values are good indicators of what may cause their resistance to change. This could well be applied to the context of implementing an ERP system. For example, some users may raise issues about their computer illiteracy, or may say that they have spent many years doing an excellent job without help from an ERP system. Figure 3 − A suggested framework for managing change associated with ERP [62] Other users may develop beliefs that their jobs will be threatened by the new system, or that they will not know how to do the job within the scope of such a system. Yet another group of users may stress values such as the importance of 146 existing power and authority structures, which may be jeopardized by the new ERP system. To overcome users' resistance to change, top management has to: • study the structure and needs of the users and the causes of potential resistance among them; • deal with the situation by using the appropriate strategies and techniques in order to introduce ERP successfully; • evaluate the status of change management efforts. Figure 4 − A model of successful ERP adoption [62] In this paper, I argue that successful ERP implementation requires matching appropriate strategies with the appropriate stage to overcome resistance sources (habits and perceived risks) effectively. The suggested approach demonstrated how this goal may be accomplished. 147 For the future, proposed a model for formal testing (Figure 4).The model has its roots in the literatures on ERP implementation and marketing. It summarizes the ideas in the present paper, which provides theoretical specification for generating a cumulative body of knowledge in the ERP implementation area. [62] Conclusion This study provides insights for enterprises about the impediments they can expect to encounter in their enterprise system implementation projects. Our results suggest that, as is supported by anecdotal evidence, enterprises have not achieved significant success in implementing ERP systems. CIOs attribute problems with ERP projects to functional units frequently changing their requirements, not committing their human resources to the project teams, and not communicating enough with the project teams. All these impediments are related to not receiving sufficient support from users and eventually lead to general project schedule changes, which CIOs perceive to be the most critical issue in ERP projects. When asked what problems they have actually faced, CIOs cited impediments related to human expertise in understanding ERP software and in managing large, enterprise-wide projects. They also suggested the lack of organizational commitment to change management and functionally coordinating requirements among different functional units to be among the most serious problems they faced. Our analysis of the association of these impediments to the success of ERP projects suggests that less successful companies have problems that stem from issues in the early stages of project initiation from organizational support and technical knowledge insufficiency. They fail to build organizational consensus and commitment to change. They also concentrate more on the technical side of ERP knowledge, and consider having insufficient human resources to understand the overall design of ERP systems to be one of their critical problems. Relatively more successful companies encounter most of their problems in managing the project and in having lack of human resources who can implement large-scale systems. The discriminant analysis showed that relatively more successful companies, as compared to less successful companies, 148 make functional coordination a very critical issue, while less successful companies make software issues more critical. Overall, our survey results suggest that rather than understanding the technical capabilities of the ERP system (what functionality it provides, how easy it is to configure, etc.), understanding new features of ERP systems (e.g. they require new types of functional coordination) is more important. This result is consistent with other studies suggesting that ERP implementation means not only accepting systems into the organization but also involves a process of accepting new rules and process knowledge into the organization, therefore requiring different implementation strategies. |