Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

A Study on the Effect of Enterprise Resource Planning (ERP) on Internal Process of an Organisations


Affiliations
1 Prestige Institute of Management and Research, Indore, India
     

   Subscribe/Renew Journal


ERP (Enterprise Resource Planning) systems are configurable information system packages that integrate several business functions into a single system with a shared database. It contains selectable software modules that address a wide range of operational activities in the firm, such as accounting and finance, human resources, manufacturing, sales, and distribution. Enterprise systems represent an important technology investment option for operations managers, and have been acclaimed in the practitioner and academic literature for their potential to improve business performance. This study is an attempt to understand the effect of ERP on internal processes of an organisation. Paired T-test was used to compare the perception of users of ERP before and after ERP installation.

Keywords

ERP, Organisation, Internal Processes.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Adam, F., & Doyle, E. (2001). Enterprise resource planning at Topps Ireland Ltd. in Johnson, G., & Scholes, K. (Eds), Exploring Corporate Strategy, 6th ed., Prentice-Hall, Englewood Cliffs, NJ.
  • Allen, J.J. (2000). Information systems as technology innovation. Information Technology & People, 13(3), 210-21.
  • Al-Mashari, M., Al-Mudimigh, A., & Zairi, M. (2003). Enterprise resource planning: a taxonomy of critical factors. European journal of operational research, 146, 352-364.
  • Austin, R. D., & Nolan, R. L. (1999). How to Manage ERP Initiatives. Harvard Business School, Working Paper 99– 024, Cambridge, MA.
  • Benchmarking Partners. (1998). ERP’s second wave: Maximizing the value of ERP--enabled processes. Deloitte Consulting Study.
  • Blick, G., Gulledge, T., & Sommer, R. (2000). Defi ning business process requirements for large-scale public sector ERP implementations: A case study. Proceedings of the European Conference on Information Systems, Wirtschafts Universita¨t, 3–5 July 2000, Vienna.
  • Boudreau, M.C. (2003): Learning to use ERP technology: a causal model. 36th Hawaii International Conference on System Sciences, IEEE Computer Society.
  • Brakely, H.H. (1999). What makes ERP effective? Manufacturing Systems, 17(3), 120.
  • Buckhout, S., Frey, E., & Nemec, J. Jr. (1999). Making ERP succeed: Turning fear into promise. IEEE Engineering Management Review, 19, 116–123.
  • Campbell, J., & Sankaran, J. (2005). An inductive framework for enhancing supply chain integration. International Journal of Production Research, 43(16), 3321-51.
  • Cash, IJ., & Konsynski, B. (1985). IS redraws competitive boundaries. Harvard Business Review, 64(2), 134–42. Chaterji, N. (1999), ERP: Imperatives for Success, McGraw- Hill, New York, NY.
  • Cliffe, S. (1999). ERP Implementation. Harvard Business Review. 77(1), 16–17.
  • Cotteleer, M. J.,& Bendoly, E. (2006). Order lead-time improvement following enterprise information technology implementation: An empirical study. Journal: MIS Quarterly, 30(3) 643–660.
  • Danziger, J. N., & Andersen, K. V. (2002). The impacts of information technology on public administration: An analysis of empirical research from the ‘Golden Age’ of transformation. International Journal of Public Administration, 25(5), 591–627.
  • Davenport, T. H. 1998. Putting the enterprise into the enterprise system. Harvard Business Review, 121-131.
  • Davenport, T. H. (2000). Mission critical: Realizing the promise of enterprise systems. Harvard Business School Press.
  • Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of infonnation technology. MIS Quarterly 13(3), 319-340.
  • Davis, F., Bagozzi, R. P., & Warshaw, P.R. (1989). User acceptance of computer technology: A comparison of two theoretical models. Management Science, 35(8), 982-1oo3.
  • Davis, G. B., & Olson, M. H. (1985). Management Information Systems: Conceptual Foundations, Structure, and Development, McGraw-Hill, New York.
  • Dechow, N., & Mouritsen, J. (2005). Enterprise resource planning systems, management control and the quest for integration. Accounting, Organizations and Society, 30(7/8), 691–733.
  • Dolmetsch, R., Huber, T., Fleisch, E., & Osterle, H. (1998). Accelerated SAP: 4 Case Studies. Working Paper, Institute for Information Management.
  • Duff, R.J. and Jain, M. (1998). CFO’s guide to EDI: how can you control the new paperless environment? The Journal of Corporate Accounting and Finance, 10(1), l07-27.
  • Esteves, J., & Pastor, J. (2000). Towards the unifi cation of critical success factors for ERP implementation. Proceedings of 10th Annual BIT Conference, Manchester, UK, 60-69.
  • Ferrando, T. (2001). Training employees to use ERP systems. The American City & County, 116(14), 12.
  • Ferratt, T. W., Ahire, S., & De, P. (2006). Achieving success in large projects: Implications from a study of ERP implementations. Interfaces, 36(5), 458–469.
  • Fichman, R.G. Real options and IT platform adoption (2004): Implications for theory and practice. Information Systems Research, 15(2), 132–154.
  • Fryer, B. (1999). The ROI Challenge. CFO, 85-90.
  • Grabski, S. V., Leech, S. A., & Lu, B. (2001). Risk and control in the implementation of ERP systems. International Journal of Digital Accounting Research, 1(1), 51-78.
  • Granlund, M., & Malmi, T. (2002). Moderate impact of ERPS on management accounting: a lag or permanent outcome?. Management Accounting Research,13 (3), 299-321.
  • Harris, J. (2005) Home improvement: Changing government business processes for good with the help of technology. Government Finance Review, 21(2), 36–40.
  • Harris, S. E., & Katz, J. L. (1991). Firm size and information technology investment intensity of life insurers. MIS Quarterly, 15 (3), 333–352.
  • Hayes, D. C., Hunton, J. E., & Reck, J. L. (2001). Market reactions to ERP implementation announcements. Journal of Information Systems, 15 (1), 3–18.
  • Hayler, A. (2003). ERP II – de´ja` vu? IT Toolbox – ERP Knowledge Base. Retrieved from http://erp.ittoolbox. com/documents/document.asp?i¼2515
  • Helo, P. (2004). Managing agitity and productivity in the electronics industry. Industrial Management & Data Systems, 104(7), 567-77.
  • Holsapple, C. W., & Sena, M. P. (1999). Enterprise systems for organizational decision support: A research agenda. Americas Conference on Information Systems.
  • Holsapple, C. W., & M. P. Sena (2003). The decision-support characteristics of ERP systems. International Journal of Human-Computer Interaction 16(1), 101–123.
  • Hsu, L. (2006) .The Impact of Industrial Characteristics And Organizational Climate On Kms And Bip-Taiwan Bioscience Industry. The Journal of Computer Information Systems, Stillwater. 46(4), 8-18.
  • Inmon, W.H. (1999). Data warehousing and ERP. Retrieved from www.billinmon.com/library
  • Inmon, W.H. (2000). ERP and data warehouse: reading the tea leaves. Retrieved from www. billinmon.com/library/ articles/arterpfu.asp.
  • Johnson, R., & Lawrence, P. R. (1988). Beyond vertical integration — the rise of the value-adding partnership. Harv Bus Rev. 94–101.
  • Kennerley, M., & Neely, A. (2001). Enterprise resource planning: Analysing the impact. Integrated Manufacturing Systems 12(2), 103–113.
  • Knolmayer, G., & Ro¨thlin, M. (2006). Quality of material master data and its effect on the usefulness of distributed ERP systems. Lecture Notes in Computer Science, 4231, 362-71.
  • Koch, C. (2001). Enterprise resource planning information technology as a steamroller for management politics? Journal of Organizational Change Management, 14(1), 64–78.
  • Krantz, N., & Sköld, M. (2005). Critical Success Factors across the ERP life cycle, A study of SMEs in Jönköping County, Master s thesis within business informatics.
  • Krumwiede, K.R., Jordan, W.G. (2000). Reaping the promise of enterprise resource systems. Strategic Finance, 82(4), 48-52.
  • Latamore, G. B. (2000). Why choosing the right database strategy is vital to plant and corporate operations. APICS. 35–8.
  • Lindley, J. T., Topping, S., & Lindley, L. T. (2008). The hidden fi nancial costs of ERP software. Managerial Finance, 34(2), 78–90.
  • Lynn, M., & Madison, R. (2000). The role of ERP software revisited. J Accountancy. 190(1), 104–5.
  • Mabert, V. A., Soni, A., & Venkataramanan, M. A. (2003). Enterprise resource Planning: Managing the implementation process. European Journal of Operational Research, 146(2), 302-314.
  • Mabert, V. A., Soni, A., & Venkatarmanan, M. A. (2000). Enterprise resource planning survey of U.S. manufacturing fi rms. Production and Inventory Management Journal, 41(2), 52-58.
  • Macvitte, L. (2001). Buckle up: Implementing an ERP system takes time and patience. Network Computing, 1(6), 97.
  • Mahmood, M. A., Burn, J. M., Gemoets, L. A., & Jacquez, C. (2000). Variables affecting information technology end-user satisfaction: a meta-analysis of the empirical literature. International Journal of Human-Computer Studies, 52(4), 751-71.
  • Malone, T., Yates, J., & Benjamin, R. (1987). Electronic markets and electronic hierarchies. Communications of the ACM, 6, 485-497.
  • McAfee, A. (2002). The impact of enterprise information technology adoption on operational performance: an empirical investigation. Production and Operations Management, 11(1), 33-53.
  • Miranda, R. A., & Kavanagh, S. C. (2005). Achieving government transformation through ERP Systems. Government Finance Review. 21(3), 36–42.
  • Mitra, S., & Chaya, A. K. (1996) Analyzing cost-effectiveness of organizations: the impact of information technology spending. J Manage Inf Syst, 13(2), 29–57.
  • Olhager, J., & Selldin, E. (2003). Enterprise resource planning survey of swedish manufacturing fi rms. European Journal of Operational Research, 146(2), 365-373.
  • Pan, M. J., & Jang, W.Y. (2008). Determinants of the adoption of enterprise resource planning within the technology- organization-environment framework: Taiwan’s communications. Journal of Computer Information Systems, 49(3), 48-53.
  • Park, K., & Kusiak, A. (2005). Enterprise resource planning (ERP) operations support system for maintaining process integration. International Journal of Production Research, 43(19), 3959-82.
  • Radding, A. (2000). Knowledge management appears on ERP radar. Datamation, Retrieved from http://itmanagement. earthweb.com
  • Ragowsky, A., & Gefen, D. (2008). What makes the competitive contribution of ERP strategic. The DATA BASE for Advances in Information Systems, 39(2).
  • Raymond, L. (1987). Validating and applying user satisfaction as a measure of management information systems success in small organizations. Information and Management, 12, 173-179.
  • Rizzi, A., & Zamboni, R. (1999). Effi ciency improvement in manual warehouses through ERP systems implementation and redesign of the logistics processes. Logistics Information Management ,12(5), 367-377. Robbins, P.S. (1998). Organizational Behavior, Prentice- Hall, Englewood Chiffs, NJ.
  • Roth, A. V., & Jackson, W. E. (1995). Strategic determinants of service quality and performance. Management Sci., 41(11), 1720–1733.
  • Sambamurthy, V., Bharadwaj, A., & Grover, V. (2003). Shaping agility through digital options: Reconceptualizing the role of information technology in contemporary fi rms. MIS Quarterly, 27(2), 327-263.
  • Shang, S. (2000). A comprehensive framework for classifying the benefi ts of ERP systems. Decision Science Annual Meeting, Orlando, Fl.
  • Shang, S., & Seddon, B.P. (2002). Assessing and managing the benefi ts of enterprise systems: the business manager’s perspective. Information Systems Journal, 12(4), 271-99.
  • Sheikh, K. (2003). Manufacturing Resource Planning (MRP II): With an Introduction to ERP, SCM and CRM, McGraw-Hill, New York, NY.
  • Simon, H. A. (1955). A behavioral model of rational choice. Q J Econ, 69(99), 118.
  • Singla, A. R. (2008). Impact of ERP systems on small and mid sized public sector enterprises. Journal of Theoretical and Applied Information Technology, 4(2), 119–31.
  • Spathis, C., & Constantinides, S. (2003). The usefulness of ERP systems for effective management. Industrial Management and Data system, 103(9), 677-685.
  • Stefanou, J.C. (2002). Accounting information systems (AIS) development/acquisition approaches by Greek Koch, C. (2001). Enterprise resource planning information technology as a steamroller for management politics? Journal of Organizational Change Management, 14(1), 64–78.
  • Krantz, N., & Sköld, M. (2005). Critical Success Factors across the ERP life cycle, A study of SMEs in Jönköping County, Master s thesis within business informatics.
  • Krumwiede, K.R., Jordan, W.G. (2000). Reaping the promise of enterprise resource systems. Strategic Finance, 82(4), 48-52.
  • Latamore, G. B. (2000). Why choosing the right database strategy is vital to plant and corporate operations. APICS. 35–8.
  • Lindley, J. T., Topping, S., & Lindley, L. T. (2008). The hidden fi nancial costs of ERP software. Managerial Finance, 34(2), 78–90.
  • Lynn, M., & Madison, R. (2000). The role of ERP software revisited. J Accountancy. 190(1), 104–5.
  • Mabert, V. A., Soni, A., & Venkataramanan, M. A. (2003). Enterprise resource Planning: Managing the implementation process. European Journal of Operational Research, 146(2), 302-314.
  • Mabert, V. A., Soni, A., & Venkatarmanan, M. A. (2000). Enterprise resource planning survey of U.S. manufacturing fi rms. Production and Inventory Management Journal, 41(2), 52-58.
  • Macvitte, L. (2001). Buckle up: Implementing an ERP system takes time and patience. Network Computing, 1(6), 97.
  • Mahmood, M. A., Burn, J. M., Gemoets, L. A., & Jacquez, C. (2000). Variables affecting information technology end-user satisfaction: a meta-analysis of the empirical literature. International Journal of Human-Computer Studies, 52(4), 751-71.
  • Malone, T., Yates, J., & Benjamin, R. (1987). Electronic markets and electronic hierarchies. Communications of the ACM, 6, 485-497.
  • McAfee, A. (2002). The impact of enterprise information technology adoption on operational performance: an empirical investigation. Production and Operations Management, 11(1), 33-53.
  • Miranda, R. A., & Kavanagh, S. C. (2005). Achieving government transformation through ERP Systems. Government Finance Review. 21(3), 36–42.
  • Mitra, S., & Chaya, A. K. (1996) Analyzing cost-effectiveness of organizations: the impact of information technology spending. J Manage Inf Syst, 13(2), 29–57.
  • Olhager, J., & Selldin, E. (2003). Enterprise resource planning survey of swedish manufacturing fi rms. European Journal of Operational Research, 146(2), 365-373.
  • Pan, M. J., & Jang, W.Y. (2008). Determinants of the adoption of enterprise resource planning within the technology- organization-environment framework: Taiwan’s communications. Journal of Computer Information Systems, 49(3), 48-53.
  • Park, K., & Kusiak, A. (2005). Enterprise resource planning (ERP) operations support system for maintaining process integration. International Journal of Production Research, 43(19), 3959-82.
  • Radding, A. (2000). Knowledge management appears on ERP radar. Datamation, Retrieved from http://itmanagement. earthweb.com
  • Ragowsky, A., & Gefen, D. (2008). What makes the competitive contribution of ERP strategic. The DATA BASE for Advances in Information Systems, 39(2).
  • Raymond, L. (1987). Validating and applying user satisfaction as a measure of management information systems success in small organizations. Information and Management, 12, 173-179.
  • Rizzi, A., & Zamboni, R. (1999). Effi ciency improvement in manual warehouses through ERP systems implementation and redesign of the logistics processes. Logistics Information Management ,12(5), 367-377.
  • Robbins, P.S. (1998). Organizational Behavior, Prentice- Hall, Englewood Chiffs, NJ.
  • Roth, A. V., & Jackson, W. E. (1995). Strategic determinants of service quality and performance. Management Sci., 41(11), 1720–1733.
  • Sambamurthy, V., Bharadwaj, A., & Grover, V. (2003). Shaping agility through digital options: Reconceptualizing the role of information technology in contemporary fi rms. MIS Quarterly, 27(2), 327-263.
  • Shang, S. (2000). A comprehensive framework for classifying the benefi ts of ERP systems. Decision Science Annual Meeting, Orlando, Fl.
  • Shang, S., & Seddon, B.P. (2002). Assessing and managing the benefi ts of enterprise systems: the business manager’s perspective. Information Systems Journal, 12(4), 271-99.
  • Sheikh, K. (2003). Manufacturing Resource Planning (MRP II): With an Introduction to ERP, SCM and CRM, McGraw-Hill, New York, NY.
  • Simon, H. A. (1955). A behavioral model of rational choice. Q J Econ, 69(99), 118. Singla, A. R. (2008). Impact of ERP systems on small and mid sized public sector enterprises. Journal of Theoretical and Applied Information Technology, 4(2), 119–31.
  • Spathis, C., & Constantinides, S. (2003). The usefulness of ERP systems for effective management. Industrial Management and Data system, 103(9), 677-685.
  • Stefanou, J.C. (2002). Accounting information systems (AIS) development/acquisition approaches by Greek SME. Paper Presented at the European Conference on Accounting Information System (ECAIS).
  • Velcu, O. (2007). Exploring the effects of ERP systems on organizational performance: evidence from fi nnish companies. Industrial Management & Data Systems, 107(9), 1316-34. Venkatesh, V., & Davis, F. (2000). A theoretical extension of the technology acceptance model: Four longitudinal fi eld studies. Management Science, 46(2), 186-204. Wah, L (2000). Give ERP a chance. Management Review, 89(3), 20–24.
  • Walters, L. M. (2007). A draft of an information systems security and control course. Journal of Information Systems, 21 (1), 123–148.
  • Wand, Y., & Wang, R. (1996). Anchoring data quality dimensions in ontological foundations. Communications of the ACM, 39(11), 86-95.
  • Williams, B. C. (1992). Auditing and recent developments in IT. Managerial Auditing Journal, 7(5), 18. Workday. 2010.
  • Yeh, J.Y. (2006). Evaluating ERP performance from user perspective. IEEE Asia-Pacifi c Conference on Services Computing (APSCC’06), IEEE Computer Society.
  • Zmud, R. W., & Apple, L. E. (1992). Measuring technology incorporation/infusion. The Journal of Product Innovation Management, 9(2), 148-156.

Abstract Views: 700

PDF Views: 3




  • A Study on the Effect of Enterprise Resource Planning (ERP) on Internal Process of an Organisations

Abstract Views: 700  |  PDF Views: 3

Authors

Bharti Motwani
Prestige Institute of Management and Research, Indore, India
Raj Kishore Sharma
Prestige Institute of Management and Research, Indore, India

Abstract


ERP (Enterprise Resource Planning) systems are configurable information system packages that integrate several business functions into a single system with a shared database. It contains selectable software modules that address a wide range of operational activities in the firm, such as accounting and finance, human resources, manufacturing, sales, and distribution. Enterprise systems represent an important technology investment option for operations managers, and have been acclaimed in the practitioner and academic literature for their potential to improve business performance. This study is an attempt to understand the effect of ERP on internal processes of an organisation. Paired T-test was used to compare the perception of users of ERP before and after ERP installation.

Keywords


ERP, Organisation, Internal Processes.

References