Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
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Critical issue
Critical factor
Technology (A)
Role of the MIS department in organization (B1) IT infrastructure (Leonard-Barton, 1988; Caron et al., 1994; Broadbent et al.,
1999; Holland and Light, 1999)
Enterprise vision and strategic goals (Holland and Light, 1999; Welti, 1999)
Process adaptation (B2)
Information transparency business process redesign (Hammer and Champy,
1993; Bingi et al., 1999; Somers and Nelson, 2001)
Harmonious implementation (B3)
Upper management support for implementation (Bingi et al., 1999; Laughlin,
1999; Somers and Nelson, 2001)
Change management (Appleton, 1997; Laughlin, 1999)
System establishment (B4)
Implementation tools and methodologies (Holland and Light, 1999; Scheer
and Habermann, 2000)
Project management (B5)
Project team ability (Somers and Nelson, 2001)
Project management (Ryan, 1999; Somers and Nelson, 2001)
Employee education and training (B6)
Employee education and training (Leonard-Barton, 1988; Davenport, 1998;
Bingi et al., 1999; Somers and Nelson, 2001)
External partner support (B7)
Software vendor support (Bingi et al., 1999)
The ability of consultancy (Bingi et al., 1999)
The collaboration of external partner (Bingi et al., 1999)
Internal staff involvement (B8)
Participation and coordination of internal staff (Grover et al., 1995; Bingi et
al., 1999; Kumar and Hillegersberg, 2000)
Quality and suitability of internal staff, and human resource management
(Appleton, 1997)
Research method
Research framework
Confronted with complex issues relating to the
implementation of ERP system, Holland and
Light (1999) proposed that the issue should be
discussed from the dimensions of organization
and technology. Accordingly, this study adopts
the Leonard-Barton's model as a research
framework and further addresses the key factors
in this framework that have been displayed in
Table I.
The Leonard-Barton's model hypothesizes
that types of misalignment can be rectified from
the large or small cycles until the final
alignment status is reached. Additionally, any
given dimension of misalignment is featured
with an automatic adaptation mechanism.
However, the ERP system belongs to a type of
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Figure 2
Case (company)
Sino-American Corporation
(SAC)
Taiwan IC Packaging
Corporation (TICP)
Prosperity Dielectrics Co.
Ltd (PDC)
Arima Group Organization
(Arima)
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Position
Time with
company
(years)
CIO
Project manager
CIO
Project manager
CIO
Project manager
CIO
Project manager
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To meet the characteristics of the salary system regulated by SAC, the salary solution and management report were customized
To fit the specific requirement of the manufacturing process, the quality control module was customized
In order to fit customers' demand, SAC designed two bill of material (BOM) sets
A2
A lack of knowledge of the connection between sequential processes and holding on to the previous operational environment delayed integration
among different departments
A3
The existing system contained data format derived from various sources that were mutually inconsistent. Data in the existing system were
manually input into ERP system through a standard procedure that follows the requirement of the new ERP system
B1
The MIS department was responsible for assessing ERP and administration affairs, whereas the fieldwork was directed by the consultants
B2
Through learning from the built-in management mechanism of the ERP system, coordinating tasks like production management, procurement, and
out-bound logistics, previously distributed in different departments, was centralized and executed by dedicated authorities
B3
The CEO supported the ERP investment and key users (KUs) from different departments actively participate in the implementation. Nevertheless,
the program was delayed by internal resistance and took two years to be put online
B4
B5
The MIS department was responsible for organizing an interdepartmental project team to conduct the implementation
The CIO headed the project team, which included the MIS department, and managers and KUs from all related departments
The task of the project team was to coordinate the rationality of the process redesign, allocating departmental resources, identifying departmental
tasks for the new process, and controlling the project schedule
B6
The SSA consultants conducted user training, including explanation of system functions, system operations, and the basic concept of the ERP
process
B7
A group of senior consultants from SSA was invited by SAC to guide the whole project
B8
The staffs of the MIS department and KUs were required to join the project full-time, serving as a bridge between general users and the
consultants
C1
SAC's core competence lay in R&D, and manufacturing capability in power supply devices for the household appliances. Accordingly, the ERP
implementation program helped the company to cope with its business environment, thus improving its core competence
The integrated database helped the ERP system to allow the execution of centralized operations for procurement, warehousing, and delivery,
unlike decentralized operations managed by the departments involved
The key to high overall performance lay in integrating production information dispersed among different departments, leading to improved quality
of decision making
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The salary module was customized to meet the characteristics of the salary system required by TICP
The modules of cost, order/delivery, manufacturing process control, quality control, and equipment management were customized to fit the specific
requirement of the manufacturing process
In order to make the user interface friendly, the system interface was customized to suit the requirements of the individual unit
A2
The learning curve of the new system was improved because of TICP's tracking of user's performance in system usage
A3
The fact that the MIS department of TICP was able to develop new modules independently reduced the risk of deficient system integration and
data inconsistency
B1
The CIO planned the blueprint of IT infrastructure. Meanwhile, the MIS department was responsible for requirement definition and implementation
planning for each department
B2
Learning built-in management mechanism provided the basis for process reengineering. However, TICP had already proposed its own reengineering
plan
B3
The CIO of TICP provided support for Oracle consultants regarding the domain knowledge of business processes
B4
The implementation of the system module depended on the progress of factory construction. A gradual implementation approach was adopted
B5
The CIO headed the project team, the members of which included the MIS department, managers and KUs from all related departments
For each department, the task of the project team included defining business process requirements, allocating resources, identifying departmental
tasks under the new process, explaining the rationality of process redesign, and controlling the project schedule
B6
The Oracle consultants provided the training and TICP evaluated the training performance
B7
B8
The MIS department took over the change management and won the support of each department
C1
TICP's core competency lay in product quality, order delivery, and operation cost. The ERP implementation programme helped the company to gain
benefits in providing real-time information in decision making, improving the rate of order delivery, and promoting interdepartmental integration
The integrated database helped each department to continuously control the schedule and the utilization of resources
Overall performance improvements came from reducing time spent in meetings by managers, omitting the need for manual audits, and sharing
information among departments, producing improvements in order delivery
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eBPCS solution could support category management of a few material items with numerous end products, which is important for PDC to manage
its specifics and satisfy customer demands
To meet the characteristics of human resources policy of PDC, the salary system was customized
The management report and system interface were customized
A2
Because the implemented ERP system was an updated vision of eBPCS, with which the company was already familiar, the employees easily
adapted to the new technology
A3
The legacy system data were transferred directly into the database of the ERP system using a program developed by PDC itself, causing data
inconsistency and difficulty in subsequent maintenance
B1
The MIS department was responsible for assessing information infrastructure needs and coordinating with the implementation methodology
provided by technology consultants
B2
Through learning from the built-in management mechanism, PDC conducted transformation from manual operations to an integrated ERP system for
scheduling coordination, material purchases, task auditing, and process management and control
B3
The CEO clearly stated the implementation goals for ERP and requested that all employees participate, and the employees responded accordingly
B4
Based on the process improvement and reduced employee resistance, PDC adopted the overall ERP implementation
B5
The project team was handled by the MIS department, and was divided into three groups: information resource, process improvement, and auditing
For each department, the tasks of the project team included defining business process requirement, allocating resources, identifying departmental
tasks under the new process, coordinating the conflict of process redesign based on different views, controlling project schedule, and negotiating
with consultants
B6
The SSA consultants trained the KU in each department, including explaining the system function, system operations, and the basic concepts of the
ERP process
B7
The SSA consultants provided consultancy, technology transfer, project audit, and implementation guidance for the MIS department
B8
The KU of each department oversaw training and knowledge distribution among their colleagues
C1
The core competence of PDC lay in R&D on new materials for passive electronic components, maintaining a complete product line, and rapid order
delivery. The ERP implementation programme helped the company to audit the workflow of order processing, thus improving core competence
The integrated project- and order-processing management from ERP helped the delivery department and manufacturing units operate under uniform
standards
Overall performance improvements came from time spent on meeting managers and replacing manual control with automatic system management,
thus leading to improved order delivery
Conclusion
The symptoms of misalignments observed in
the case analysis can be attributed to
insufficient understanding of the embedded
knowledge in ERP systems partly because of the
unparalleled system complexity for which the
company has not experienced yet, and the lack
of BPR capability. Moreover, these two factors
are often intertwined together. The BPR
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To meet the human resource management policy regulation of Arima, the system modules of human resource management were customized
To fit financial process demands, the bill system, invoice system, tax system, and relevant financial reports were customized
A2
Because of the simplicity and convenience of the new system, acceptance of the new system was prevalent; for example, the accounting staff
understood why there was no need to repeat data entry
A3
The data format of the existing system was incompatible with the ERP system. Data thus were manually input into the ERP system using the
standard procedure
B1
The lack of experience in implementing a large system project meant that the MIS department merely played a supporting role
B2
The manual operation of the MRP process, including calculation of material delivery date and quantity, submission of and permission for material
request sheets, and submission of material purchase sheets, was transformed into the automatic process based on information from the built-in
management mechanism of the ERP system
B3
The implementation tended to be directed by the Oracle consultants, with the MIS department playing a supporting role
B4
Arima conducted the ERP project by following the implementation methodology of consultancy
B5
Oracle consultants directed the project team, whose members included staff from the MIS department and KUs from all involved departments
The task of the MIS department included assessing software, supporting the external consultants, getting the system online, and providing progress
reports to the CEO
B6
B7
B8
C1
Arima's core competence lay in product quality control. The ERP implementation programme helped the company to change its employees from
traditional operators into process supervisors, thus increasing employee added value
Information exchange among the manufacturing, purchase, and financial departments was conducted online, thus increasing the speed and quality
of decision making
The transformation of traditional documentary operations and saving time spent on audits increased manufacturing speed, material preparation and
delivery
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References
Al-Mashari, M. (2002). ``Emterprise resource planning
systems: a research agenda'', Industrial Management
& Data Systems, Vol. 102 No. 3, pp. 165-70.
Al-Mashari, M. (2003), ``Enterprise resource planning (ERP)
systems: a research agenda'', Industrial Management
& Data Systems, Vol. 103 No. 1, pp. 22-7.
Al-Mashari, M. and Zairi, M. (2000), ``Supply-chain
re-engineering using enterprise resource planning
(ERP) systems: an analysis of an SAP R/3
implementation case'', International Journal of
Physical Distribution & Logistics Management, Vol. 30
No. 3, pp. 266-313.
AMR Research (1999), Enterprise Resource Planning
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Appleton, L. (1997), ``How to survive ERP'', Datamation,
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Bingi, P., Sharma, M. and Jayanth, K. (1999), ``Critical issues
affecting an ERP implementation'', Information System
Management, Vol. 16 No. 5, pp. 7-14.
Broadbent, M., Weill, P. and Clair, D. (1999), ``The
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for business process redesign'', MIS Quarterly, Vol. 23
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Caron, R., Jarvenpaa, L. and Stoddard, D. (1994), ``Business
reengineering at CIGNA Corporation: experiences and
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Vol. 18 No. 3, pp. 233-50.
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Further reading
Eisenhardt, K.M. (1989), ``Building theories from case study
research'', Academy of Management Review, Vol. 14
No. 4, pp. 532-50.
Kirkpatrick, D. (1998), ``The e-ware war: competition comes
to enterprise software'', Fortune, Vol. 138 No. 11,
pp. 103-12.
Rajagopal, P. (2002), ``An innovation-diffusion view of
implementation of enterprise resource planning (ERP)
systems and development of a research model'',
Information & Management, Vol. 40, pp. 87-114.
Ross, W. (1998), The ERP Revolution: Surviving versus
Thriving, White Paper, MIT, Cambridge, MA,
November.
Weill, B. and Clair, S. (1999), ``The implications of
information technology infrastructure for business
process redesign'', MIS Quarterly, Vol. 23 No. 2,
pp. 159-82.
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