Active ERP implementation management: A Real Options perspective

Although enterprise resources planning (ERP) implementation has been one of the most significant challenges of the last decade, it comes with a surprisingly high failure rate due to its high risk nature. The risks of ERP implementation, which involve both technical and social uncertainties, must to be effectively managed. Traditional ERP practices address the implementation of ERP as a static process. Such practices focus on structure, not on ERP as something that will meet the needs of a changing organization. As a result, many relevant uncertainties that cannot be predefined are not accommodated, and cause the implementation fail in the form of project delay and cost overruns. The objective of this paper is to propose an active ERP implementation management perspective to manage ERP risks based on the Real Options (RO) theory, which addresses uncertainties over time, resolves uncertainties in changing environments that cannot be predefined. By actively managing ERP implementation, managers can improve their flexibility, take appropriate action to respond to the often-changing ERP environment, and achieve a more successful ERP implementation.     

Exploring managerial factors affecting ERP implementation: an investigation of the Klein‐Sorra model using regression splines

Abstract. Predicting successful implementation of enterprise resource planning (ERP) systems is still an elusive problem. The cost of ERP implementation failures is exceedingly high in terms of quantifiable financial resources and organizational disruption. The lack of good explanatory and predictive models makes it difficult for managers to develop and plan ERP implementation projects with any assurance of success. In this paper we investigate the Klein & Sorra theoretical model of implementation effectiveness. To test this model we develop and validate a data collection instrument to capture the appropriate data, and then use multivariate adaptive regression splines to examine the assertions of the model and suggest additional significant relationships among the factors of their model. Our research offers new dimensions for studying managerial interventions in IT implementation and insights into factors that can be managed to improve the effectiveness of ERP implementation projects.     

A socio-technical systems approach to studying interruptions: Understanding the interrupter's perspective

The purpose of this study was to understand the cognitive processes underlying nurses' decision to interrupt other nurses. The Institute of Medicine (2000) reported that interruptions are likely contributors to medical errors. Unfortunately, the research to date has been quite homogenous, focusing only on the healthcare provider being interrupted, ignoring the true complexities of interruptions. This study took a socio-technical approach being the first to examine interruptions from the viewpoint of the interrupting nurse. Over 15 h of observations and 10 open-ended interviews with expert nurses in a Neuroscience Surgical Intensive Care Unit were conducted. It was found that nurses conduct a quick cost-benefit assessment to determine the interruptibility of other nurses and whether an interruption is value-added vs. non-value added. To complete the assessment, nurses consider several conditional factors related to the interruptee, the interrupter, and the nature of the interruption content, and different potential consequences of the interruption.     

Drivers and effects of post-implementation learning on ERP usage

Many organizations adopting enterprise resource planning (ERP) systems are failing to achieve their anticipated business goals, the major reason being system under-utilization. It is imperative to understand the way users learn to use ERP systems effectively. This is especially important given the integrated and complex nature of the ERP system, which forces users to continually learn new skills after implementation. This study aims to explore the role played by post-implementation learning in ERP usage. Moreover, we identify social capital and post-training self-efficacy as antecedents to post-implementation learning. A survey method was employed to collect data from 659 ERP users. This study finds that post-implementation learning contributes to ERP usage, and that social capital and post-training self-efficacy are important antecedents to post-implementation learning. Our findings provide academics and practitioners with an understanding of how post-implementation learning can be manipulated to improve ERP usage.     

Using a case study to test the role of three key social enablers in ERP implementation

The literature indicates that three key social enablers—strong and committed leadership, open and honest communication, and a balanced and empowered implementation team are necessary conditions/precursors for successful enterprise resource planning (ERP) implementation. In a longitudinal positivist case study, we find that, while all three enablers may contribute to ERP implementation success, only strong and committed leadership can be empirically established as a necessary condition. This presents a challenge to future ERP researchers for resolving apparent contradictions between the existing literature and the results of our analysis. One possible direction for future research would be to undertake an interpretive re-examination of the rationalisitic assumptions that underlie much of the existing literature on ERP systems implementation.     

The consistency among facilitating factors and ERP implementation success: A holistic view of fit

Traditionally, various ERP implementation factors have been deemed critical to success within diverse business environments. The interaction relationships among these ERP implementation success factors, however, have been overlooked. The objective of this study is to explore the interaction patterns among the ERP implementation success factors from a covariation (co-alignment) perspective. We conceptualize the “consistency” among the factors that facilitate ERP implementation and evaluate them in terms of their positive impact on successful ERP implementation. The results from a field survey of 90 Taiwanese manufacturing firms show that the “consistency” among these facilitating factors of ERP implementation had a significant positive impact on ERP implementation success. The factors examined in this study include vendor support, consultant competence, ERP project team member competence, ERP project manager leadership, top management support, and user support. Implications for managers and researchers conclude this study.     

Modes of reasoning in theories of the social impact of advanced technology: A critique of ERP systems in healthcare

Human-centred systems has a long theoretical tradition within the automation and control community stretching back at least into the 1970s and particularly in manufacturing systems. As automation and control systems are increasingly important outside the factory many researchers are revisiting core concepts within this tradition in order to address concerns in these other contexts. One particularly important sector is health care which, in recent years, has implemented a range of AMAT-type solutions not least of which are enterprise systems. This paper reviews the application of enterprise integration systems to health-care and, in doing so, unpacks several theoretical tensions. The paper proposes a re-assessment of human-centred systems (HCS) thinking as a way to address these tensions in automatic healthcare systems.     

Behavioral aspects of enterprise systems adoption: An empirical study on cultural factors

Recently, behavioral aspects of enterprise systems have been called to investigate further in the information systems (IS) community. The purpose of this paper is to apply individual-level measurement of cultural orientation, such as power distance and uncertainty avoidance, to the recent findings of computer self-efficacy and ERP adoption belief, such as perceived ease of use, based on the survey of 101 ERP system experts. An online survey methodology is used to gather data from the various industrial fields. The research model is constructed based on the findings of the previous studies in IS, management, and cultural psychology. The results indicate that low power distance and high uncertainty avoidance cultural orientation influence general CSE. In addition, uncertainty avoidance positively influences ease of use of ERP systems. As expected, general CSE positively influences ease of use of ERP systems. Training and managerial interventions through communication to improve these cultural orientations would be effective for the successful ERP systems project. The findings of this research would be helpful to the project managers, IS researchers, and ERP practitioners who want to understand the behavioral aspects of ERP systems adoption in the organization.     

Information systems use as strategy practice: A multi-dimensional view of strategic information system implementation and use

Information systems (IS) are strategic in so far as they are used to realize strategic intent. Yet, while much has been said about aligning IS functionality with the strategic intent and how to organizationally implement strategically aligned systems, less is known of how to successfully implement strategic change associated with system use – a truly critical challenge within strategic IS implementation. Drawing on a strategy-as-practice perspective we address this gap by developing a multi-dimensional view of IS strategy, conceptualizing three key challenges in the IS strategy process, to explain how and why a paper mill, despite successfully implementing a strategic production management system, failed to produce intended strategic change. We call this outcome strategy blindness: organizational incapability to realize the strategic intent of implemented, available system capabilities. Using a longitudinal case study we investigate how cognitive rigidity of key actors and fixed, interrelated practices shaped the implementation of the new production system. We also identify core components and dynamics that constitute a richer multi-dimensional view of the IS strategy implementation (alignment) process. In particular, we identify three salient factors that contribute to strategy blindness – mistranslation of intent, flexibility of the IT artifact and cognitive entrenchment – and discuss how they affect strategic implementation processes. We conclude by discussing implications of our findings for IS strategy theory and practice, especially the contribution of strategy-as-practice to this stream of research.     

Assessing and managing the benefits of enterprise systems: the business manager's perspective

This paper focuses on the benefits that organizations may achieve from their investment in enterprise systems (ES). It proposes an ES benefit framework for summarizing benefits in the years after ES implementation. Based on an analysis of the features of enterprise systems, on the literature on information technology (IT) value, on data from 233 enterprise systems vendor‐reported stories published on the Web and on interviews with managers of 34 organizations using ES, the framework provides a detailed list of benefits that have reportedly been acquired through ES implementation. This list of benefits is consolidated into five benefits dimensions: operational, managerial, strategic, IT infrastructure and organizational, and illustrated using perceived net benefit flow (PNBF) graphs. In a detailed example, the paper shows how the framework has been applied to the identification of benefits in a longitudinal case study of four organizations.     

Gender differences in adoption of information systems: New findings from China

The paper explores regional gender differences in information systems adoption based on a sample of 496 Chinese individuals from four universities and one firm, by a lens of theory of planned behavior. It enriches the literature by explaining and examining the moderating effects of gender on the relationships between antecedents and behavioral intention of using information systems for Chinese users. Contrary to prior findings in the US-based research, Chinese women were found to be more strongly influenced by their computer attitudes whereas Chinese men were found to be more strongly affected by their subject norms. Perceived behavior control was important for both sexes without significant difference. The results were robust across prior experience, ages, educational levels, as well as academic disciplines and job occupations. Meanwhile, the paper uncovers under what conditions perceived behavior control and subject norms will be salient determinants of Chinese user acceptance of information systems. Practical implications about gender sensitivity in information systems adoption are discussed.     

基于异构系统迁移的SAP ERP软硬件同步升级技术

针对大型企业资源计划( ERP)系统升级技术复杂、停机时间长、风险巨大的问题,从技术角度分析了ERP升级的风险、技术难点和关键要素,并在此基础上提出了一种快速的ERP系统软硬件同步升级方法。该方法基于数据导出再导入的异构迁移方式,使用新旧双路系统升级架构,同步升级ERP系统的软件和硬件,既能缩短系统升级期间的停机时间,又能降低升级的风险。使用该方法成功实现了某大型企业ERP系统的升级,将传统升级方法近80小时的停机时间压缩到50小时以内,并且一次升级成功。研究表明,基于异构系统迁移的ERP升级技术解决了大型ERP系统升级效率低、风险高、评估困难的问题,并且实施容易,具有较好的推广性。     

A new collaborative system framework based on a multiple perspective approach: InteliTeam

This study develops a Web-based collaborative system framework based on a multiple perspective approach. This framework is a recent decision support system (DSS) paradigm proposed by Courtney [Decis. Support Syst. 31 (2001) 17] for knowledge management of and decision making about a special organizational problem. It consists of four main components. The first component is a group decision-making (GDM) approach in which many participants' points of views are considered in the modeling of a specific problem. In the second component, many multiple criteria decision-making (MCDM) techniques are employed. The third component is an intelligent system. The fourth component is related to advanced communications that are supported by new technologies such as mobile tools, mobile e-service, and the wireless application protocol (WAP). A new software system called InteliTeam is developed based on the framework. InteliTeam can be accessed from application service providers (ASP), so installation of the software is not required. The software provides online mapping, online queries, and online analysis functions for users anywhere at any time. An example of the software as tested on many organizational problems is presented to illustrate its effectiveness.     

Fundamental issues of decision support systems: A consequentialist perspective

While considerable enthusiasm for DSS exists in many quarters, there are still a number of fundamental issues which have not been seriously addressed. Of particular concern, is how DSS is likely to affect organizations. This philosophically motivated paper analyzes the underlying assumptions of DSS and develops an approach for consequence determination. Moreover, the paper uses this approach to assess how DSS might affect various organizational elements.     

User experience and personal innovativeness: An empirical study on the Enterprise Resource Planning systems

Although user experience and personal innovativeness are two important factors in new technology adoption, there has been no prior study to test these factors with the Enterprise Resource Planning (ERP) adoption. This paper investigates moderating roles of user experience on the relationship between the personal innovativeness and the ERP adoption motivations. This issue is important because if the user has more experience with the systems then the power of influence of personal innovativeness on ERP adoption motivation would be different. Thus, this paper tests these important insights of ERP systems adoption with the two different field samples with high (more than three years) and low (less than three years) user experience, based on the innovation diffusion theory, self determination theory, and different types of motivations such as intrinsic and extrinsic motivations. The findings, based on the PLS analysis of the model using 107 ERP end users, show that there are clear moderating effects of user experience—such as impacts of personal innovativeness on ERP systems adoption motivations are higher in case of low user experience samples, as expected. Academic and practical implications are discussed in the paper based on these empirical findings.     

Assessing roles of people,technology and structure in emergency management systems: a public sector perspective

Emergency management systems are a critical factor in successful mitigation of natural and man-made disasters, facilitating responder decision making in complex situations. Based on socio-technical systems, have which four components (people, technology, structure and task), this study develops a research framework of factors affecting effective emergency management. People factors include psychological factors such as responders' self-efficacy, support from family, peers and community, and training. Technology factors are task technology and information sharing. The structure factors are leadership, labour and logistics. Finally, the task factor refers to effective emergency management. This study empirically tests this framework by collecting surveys from emergency responders who participated in the 2006 Buffalo October Storm. The research results demonstrate that training and support positively affect emergency management self-efficacy which, in turn, has a positive significant relationship with effective emergency management. Task technology and information sharing also have a positive impact on effective emergency management. However, findings suggest that the structure factors do not show a significant relationship with effective emergency management. This research presents that human factors in emergency management are essential to conduct effective operations. More importantly, investing in technology to assist responders in performing their jobs during the emergency is crucial during the emergency operations.     

Antecedents of computer self-efficacy: A study of the role of personality traits and gender

Empirical evidence suggests that computer self-efficacy plays an important role in one’s acceptance and use of new information technology. Little is however known about the antecedents of computer self-efficacy. This paper reports on a study of 143 non-users of a self-checkout library system available at a large Canadian university which was conducted to investigate the relationships between stable personality traits and gender with computer self-efficacy. Results indicate that four of the five stable personality traits, as measured by the Big-5 factors of personality, contribute to explain computer self-efficacy. Taking gender into account, results show that the traits of neuroticism, extraversion, and agreeableness are significantly related to computer self-efficacy for women but not for men. Implications for research and practice are discussed.     

Analyzing the impact of a firm's capability on outsourcing success: A process perspective

We investigated the effect of a firm's resource capabilities and interaction processes on the success of IT outsourcing. Grounded in available literature on outsourcing relationship and process theory as well as a resource-based view of the IT resource capability, a conceptual model was composed to examine the causal structure of capability, process, and relationship in IT outsourcing. We identified the firm's resource capability factors and, based on the premise that relationship intensity should be affected by the IT outsourcing process, we developed a first-order factor analysis of resource capabilities in the interactions between the outsourcer and provider. Results of empirical testing using responses from 267 IT outsourcing project teams in Korea supported most of our hypotheses. The integration of corporate IT resource and capability theories with social exchange theory distinguishes our research from that of others, who have generally treated these theories separately.     

Soft systems and systems engineering: on the use of conceptual models in information system development

Abstract. Many recent studies have shown that computer-based systems continue to ‘fail’ at a number of different levels (Romtec, 1988; KPMG, 1990) and it is increasingly apparent (Maclaren et al., 1991) that the most serious failures of information technology (IT) lie in the continuing inability to address those concerns which are central to the successful achievement of individual, organizational and social goals. It is the contention of this paper that this failing is precisely because these are the areas which are ignored or inadequately treated by conventional system development methods. There is, of course, a vast body of literature concerned with the understanding of complex human activity systems. This literature often reflects a mass of contradictions at the epistemological and the ontological level about the behaviour of such systems and has also spawned numerous methods (and methodologies) which seek to guide the individual in making successful interventions into organizational situations (Rosenhead, 1989). Despite this multiplicity of viewpoints many writers have posited a dichotomy between so-called 'soft and ‘hard’ approaches to problem situations and use this dichotomy to inform the choice of an appropriate problem-solving methodology (Checkland, 1985). In this paper we characterize these two approaches as being concerned with either the purpose(s) of the human activity system (i.e. ‘doing the right thing’) or with the design of the efficient means of achieving such purpose(s) (i.e. ‘doing the thing right’). It is our belief that much of the literature and work in either area has not concerned itself with the issues of the other. Writers on ‘hard’ engineering methods often assume the question of purpose to be either straightforward (e.g. given in the project brief) or, paradoxically, too difficult (e.g. it is not our concern as mere systems analysts). Writers on ‘soft’ methods on the other hand rarely have anything to say about the design and implementation of well-engineered computer-based systems, giving the impression that this is a somewhat mundane activity better left to technical experts. This paper, therefore, attempts to set out a rationale for the bringing together of principles from both ‘hard’ engineering and ‘soft’ inquiry methods without doing epistemological damage to either. To illustrate our argument we concentrate on JSD (Jackson system development) as an example of system engineering (Cameron, 1983) and SSM (soft systems methodology) as an example of system inquiry (Checkland, 1981; Checkland & Scholes, 1990). Our general thesis, however, does not depend upon either of these two approaches per se but applies to the overall issue of bringing together insights from two apparently opposed epistemological positions in an effort better to harness the power of IT in pursuit of purposeful human activity.     

A survey of tools for the validation and verification of knowledge-based systems: 1985-1995

This paper presents the findings of a survey of software tools built to assist in the verification and validation of knowledge-based systems. The tools were identified from literature sources from the period 1985-1995. The tool builders were contacted and asked to complete and return a survey that identified which testing and analysis techniques were utilised and covered by their tool. From these survey results it is possible to identify trends in tool development, technique coverage and areas for future research.