Enterprise systems acquisition and implementation

TDEI 13

Özgün Imre

ozgun.imre@liu.se

EIS-IE Linköping University

2015-09-02

2

Agenda

• The ERP presentations

• Some formalities around the course

Rolls-Royce case

Yusuf, Y., Gunasekaran, A. & Abthorpe, M.S., 2004. Enterprise information systems project implementation: A case study of ERP in Rolls-Royce. International Journal of Production Economics, 87(3), pp.251–266

Packaged Software

Light, B., 2005. Potential Pitfalls in Packaged Software Adoption. Communications of the ACM, 48(5), pp.119–121.

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Course Project

• The purpose of the group projects is to give you an opportunity to encounter, second or first hand, views and impressions expressed by people who have been involved in ERP ventures.

• Document studies

• If possible: Interviews

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Course Project

• The final report:

• 10 - 12 pages of text (excluding executive summary and references).

• Executive summary

• A list of contents,

• A clear purpose,

• A review of relevant literature,

• A section describing your second or first hand field study,

• An analysis using the field study and the literature,

• Conclusions relating to the report’s purpose,

• A reference list with complete references to sources used.

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• Begin working as soon as possible

• Don’t forget the milestones

• Your group has to be present for the presentation days – if you can not show up you need to let me know before

• If you have an assignment and you can not show up, you have to an extra assignment

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Other date related issues

Still no date for Qlikview

The test is moved to 23rd

We might have a study visit

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The organisation?

8

A process perspective

9

Information flow and ERP system

Sales AccountingDistibutionManufaturing

Docum

ents

Dokum

entering

Dokum

entering

Docum

ents

Write and control order

Invoice / payment

Deliver order

Carry out order

Customer

Supplier

DistributionSales Manufacturing

Supply

Deliver a product

Place an order

Payment

Place an order

Plan of manufacturing Transport

Deliver of goods

Report a needOrder

Deliver material

Payment

Order control

Without ERP

With ERP

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Work systems

Alter, 2008

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Packaged software

• In good old times

• In house software

• Created for the company

• Unique business processes mapped on

• In-house IT people

Today

?

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Packaged Software

Potential pitfalls

Reasons for purchase Expectation / pitfall

Correction of existing problems Legacy systems and backlog

Availability of a broader skills base

Predictability Cost

Perception of a reliable product

Functionality

Business benefits Freeing up the IS function

Desire for standardization

Implementing change

Social influences Role of selling

Bravado

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Why an ERP?

The story goes:

Today we are in a global economy, so we have increased competition

We compete on more fronts than price and quality

We need to be flexible, adaptable, agile, responsive

We decided to decentralise (some of the operations)

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Why an ERP?

ERP as a part of the supply chain issues

ERP as a tool for success (or at least solving problems)

However, ERP is not just an IT implementation, it is a wide-ranging organisational change project

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• integrate individual functional systems such as manufacturing, finance, procurement and distribution.

• replace their existing information systems

• standardise the flow of management information

• Business process automation.Timely access to management information.Improvement in the supply chain via the use of e-communication and e-commerce.

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However…

• Some of the companies that implement ERP systems do not realise the full benefits that the system offers because most organisations are not organised in the correct fashion to achieve the benefits. (p. 253)

• This means that the organisation has to adapt to the system !

• ERP software is very adaptable but not very malleable and companies that wish to use them correctly have to change their working practices to fit the software. (p. 254)

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Some common issues?

• cultural problems

• business problems

(business process)

• technical problems

(data migration/entering)

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Some social worlds

The implementation model

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Some complications

• Inability to align goals

• The non-delivery of reliable hardware

• Failure of providing inadequate support

• The resistance of change

• The project treated merely as an IT implementation

• Inadequately education of workforce

• Inability to load data from old systems

• Maintenance difficulties

• Changes to kitting demand during go live may stretch the new system

• Sustainability of the IS during the post-implementation period

www.liu.se

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Some implications

Social worlds/arena/negotiated order can provide a situated, dynamic analysis of issues

Can complement the static view adopted in stakeholder analysis

IS can play the role of the boundary object in such situations, and trigger the negotiations and learning

Using such lens can help iron out differences to find a workable situation, and help out wider IS implementation problems

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Venue 1

• Lots of combinations: would social worlds add to the stakeholder theory?

• Would saying it will add dynamism just be a buzz word?

• Are they the same? Or how can we identify the difference from a bunch of interviews?

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Venue 2

• Negotiated order with stakeholder theory

• Focus on temporality of the order, which is what dynamism is

• Adds non-executives to the system

• Would we see any difference between stakeholders and social worlds?

Would we feel different if we talked to editor x, who is also the dean?