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Unit 11: ERP-II

Davenport’s sequel on enterprise systems is an indicator of the changing business perspective on notes
ERP and the ERP hype. In the late 1990s the ERP hype was primarily motivated by companies
rushing to prepare for Y2K .sums up this first wave of experience from implementing ERP
systems in a much cited paper on “putting the enterprise system into the enterprise”, and points
to the new potential business impact of ERP systems. The discussion evolved over the first
enthusiastic expectation on integration, via the growing number of horror stories about failed or
out-of-control projects, towards the renewed hype of expectations on e-business and SCM.
Summarize the early key drivers for adopting ERP systems as:
1. Legacy systems and Y2K system concerns;
2. Globalization of business;
3. Increasing national and international regulatory environment, e.g. the European Monetary
Union;
4. BPR and the current focus on process standardization, e.g. ISO 9000;
5. Scaleable and flexible emerging client/server infrastructures; and
6. Trend towards collaboration among software vendors.

The research on ERP in the last millennium is well analyzed for instance through the works of.
They review the ERP literature through an ERP lifecycle model reflecting the adoption process
reviews several lifecycle models and concludes that the common denominator is the distinction
between pre-implementation and post-implementation stages and the lack of an explicit usage
stage. He observes that up to 30 per cent of the research deals with implementation issues.

Further summarize the differentiating factor for the complexity of ERP projects:
1. The number and variety of stakeholders in any implementation project;
2. The high cost of implementation and consultancy;
3. The integration of business functions;
4. The subsequent configuration of software representing core processes;

5. The management of change and political issues associated with BPR projects
6. The enhanced training and familiarization requirement.
This complexity has triggered two large strands of ERP implementation research and ERP
success/failure research. The concepts of implementation, success and failure are even more
complex, introduced an “ERP journey” and the idea of understanding ERP implementation as a
business transformation enabled by ERP.
Another strand of ERP research that deals with the business transformation is the
process-oriented research This strand emphasizes the ERP technology as an enabler of business
process reengineering (BPR); it deals with issues of process orientation and the organizational
change – both internally and as a second phase in the supply chain .elaborate on these strands and
combine them into a multi-dimensional model of the transformation essentially encompassing
people, business, technology, and process issues. The combination of implementation and usage
is discussed in and the next section discusses the required business transformation.

11.1.2 new Business requirements

SCM has become one of the most important new business concepts. Global competition and
outsourcing have caused the fragmentation of the supply chain, and supply chain excellence is
now a prerequisite for competitive advantage. Theoretically SCM emphasizes the management
of the entire supply chain as one entity, and the practice of SCM is to extend the internal business
processes into the supply chain thus developing an integrated supply chain.

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