Summary: Advanced Resource Planning

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  • What is ERP?

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  • What is an ERP system?

    A suite of integrated software applications used to manage transactions through company-wide business processes, by using a common database, standard procedures, and data sharing between and within functional areas (Alone et al, 2009)

    An integrated, automated and mission critical system that can be used for the core functions necessary to support enterprise systems. 
  • Four dimensions of interoperability

    Organizational 
    Legal
    Semantic 
    Technical 
  • MRP ( = Materials Resource Planning)

    A production planning and inventory control system used to manage manufacturing processes
  • Reasons for ERP implementations to fail

    • It takes longer than expected
    • Total implementation costs have exceeded the budget
    • Fail to realise> 50% of the expected benefits 
    • Operational disruptions when going live
    • Executives are unsatisfied
    • Employees are unsatisfied 
  • Why is implementing an ERP system so hard?

    • Installing an enterprise system is not merely a computer project, but an expensive risky investment. In other words: it involves organisational change 
    • Areas where critical impediments to success are likely to occur 
  • Customization

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  • What are the benefits of modifying?

    Addressing organisational change along with modifying the system to meet the needs of the business, will help minimise the risks
  • What ar the drawbacks of modifying?

    • In case of an upgrade, each modification will need to be analysed to see if it needs to be incorporated or not
    • An upgrade can turn into a re-implementation, which requires more resources and time 
  • What is institutional theory?

    When developing packages, vendors draw upon the institutional structures of referent organisations. Misalignments arise when institutional structures in packages differ from those of the implementing organisations.
  • What is the Bunge-Wand-Weber ontology?

    Used here to provide a perspective to investigate misalignments: how is the 'meaning' of reality represented in the package software?
  • What are the different structures that determine the implementing organisations leeway in responding to misalignment?

    • Imposed structures - are the result of external demand made on the organisations by authoritative sources such as the government
    • Voluntary structures - are developed as a result of an organisations history and experience, strategy, and management preferences

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