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Literature review on ERP implementation challenges

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388 Int. J. Business Information Systems, Vol. 21, No. 3, 2016

Literature review on ERP implementation challenges

Shree Ranjan*
Enterprise Solutions,
Tata Technologies Ltd,
Jamshedpur, Jharkhand, India
Email: shree_ranjan@yahoo.co.in
*Corresponding author

Vijay Kumar Jha

Department of Computer Science and Engineering,
B.I.T. Mesra, Ranchi, India
Email: vkjha@bitmesra.ac.in

Pralay Pal
Engineering Automation,
Tata Technologies Ltd,
Jamshedpur, India
Email: pralay.pal@tatatechnologies.com

Abstract: The paper presents a review of the current literature published in

journals in the field of information system application ‘enterprise resource
planning’ (ERP) to identify challenges faced in ERP implementation projects.
ERP implementation is a challenging and expensive task that not only requires
rigorous efforts but also demands to have a detailed analysis of such factors
that are critical to the adoption or implementation. Though ERP
implementation and its critical issues, success factors and implementation
problems have been investigated in the past but they are not filtered
comprehensively in terms of the different perspectives. The result of literature
review presented of our work focuses on the ERP implementation challenges
from four different perspectives such as: technology selection; change
management, knowledge management, emerging technologies. Considering
these perspectives in ERP implementation projects organisations can realise
several benefits such as reducing costs and saving time or extra effort.

Keywords: enterprise resource planning; ERP; change management;

knowledge management; technology selection; emerging technologies.

Reference to this paper should be made as follows: Ranjan, S., Jha, V.K. and
Pal, P. (2016) ‘Literature review on ERP implementation challenges’, Int. J.
Business Information Systems, Vol. 21, No. 3, pp.388–402.

Biographical notes: Shree Ranjan did his Masters from I.I.T. Kharagpur, India
in Industrial Engineering and Operations Research. He has 34 years
experiences of implementation of information systems for manufacturing
organisations mainly in automotive vertical. Currently, he is a Program
Manager heading Service Delivery team and accountable for managing service
delivery of IT and ERP to India’s largest automotive company, promoting

Copyright © 2016 Inderscience Enterprises Ltd.

 Literature review on ERP implementation challenges 389

continuous improvement of productivity, service quality and customer

satisfaction through management of ERP projects. He is currently working in
Tata Technologies and is also pursuing PhD degree programme in the
Department of Computer Science and Engineering at B.I.T. Mesra, Ranchi.

Vijay Kumar Jha did his Masters in Electronics from MIT Mujaffarpur, India
and PhD in Engineering (Information Technology) from MIT Mujaffarpur. He
has extensive teaching experience of 15 years and also three years of industry
experience. He is currently working in Birla Institute of Technology Mesra,
Ranchi as an Associate Professor. He is involved in teaching undergraduate and
post-graduate students. He is also guiding PhD scholars and MTech students.
Currently, he is guiding five PhD scholars and four MTech students. He has
published many research papers in international journals like IJISA, IJCSI,
IJTR, IJITCS, IJERTE, IJCSE, IJCEA, IJERT, IJCSIT, IJARCSSE, IJIEEB, etc.

Pralay Pal did his Masters from Indian Institute of Technology, Madras and
PhD from NIT Jamshedpur, India. He has extensively worked in aerospace
(HAL) and automotive (TML/TTL) OEMs for over 20 years and was involved
in many software development projects. He has published many research
papers in international journals like ASME JMSE, Springer AMT, Elsevier
CAD, MTM, Taylor & Francis IJPR and Emerald RPJ. His areas of interests
are CAD, CAM, CAGD, supply chain management, ERP and software
engineering. He has worked as full time faculty in academics and has guided
PhDs and Master thesis. Currently, he is working as a DGM, Engineering
Automation in Tata Technologies.

1 Introduction

Enterprise resource planning (ERP) system enables an organisation to integrate all its
primary business processes in order to enhance efficiency and maintain a competitive
position. Successful implementation of ERP system enables an organisation to realise
benefits in terms of improved productivity and competitive advantage. Literature suggest
that though ERP systems have been implemented all over the world by many companies
but understanding and implementing ERP is a challenging task as there is high cost and
risk involved. Since ERP implementation affects entire organisation such as process,
people, and culture, there are a number of challenges that companies may encounter in
implementing ERP systems.
Since implementing ERP system requires a substantial capital investment,
organisations expect successful outcomes so that organisation’s targets are achieved. This
study investigates through literature review the ERP implementation challenges faced by
organisations so that the lessons learned in the past can be helpful to organisations to
proactively plan for mitigating risks and successful implementation on time and not
causing cost and schedule overrun. As a lack of awareness of numerous and varied
challenging issues surrounding the implementation process could be problematic for the
whole process this report will not only be useful to researchers but also to industry
leaders who are interested in understanding the recent trends and the impact of emerging
technologies on ERP implementation approach and methodology.
390 S. Ranjan et al.

2 Literature review

The study focuses on the ERP implementation challenges from four different
perspectives such as: technology selection; change management, knowledge management
and emerging technologies.

2.1 ERP technology selection challenges

ERP technology selection is a crucial and paramount consideration for enterprise level
decision makers in organisations aspiring to sustain staying competitive since, it is a
serious investment decision.
As investment in ERP systems implementations projects in organisations are strategic
and highly risky because of the complexity involved, high implementation cost and
change management issues it is crucial to select an ERP software that fits with
organisational goals and objectives for successful implementation.
Radut and Codreanu (2012) argued that the most important part of adopting an ERP
system is the selection part and the selection process should be specific to organisation as
it takes into account the requirements of the organisation and should be an analytical
method based on criteria. The most important of which are functionality, technology and
expertise, flexibility and application scalability, costs, implementation and ease of use.
Their offering is a simple sequential qualitative model with selection
criteria/characteristics composed of six attributes, namely functionality, reliability,
efficiency, usability, maintainability, and portability.
Johansson et al. (2011) studied relationship between factors influencing selection of
implementation approach and companies’ ability to stay within budget when
implementing ERPs. The main findings are that:
1 the number of implemented modules influences selection of an implementation
approach
2 companies with information strategies are more likely to stay within budget
regarding ERP systems implementation.
More research is required to understand relationship between factors influencing
selection of implementation approach and ability to stay within budget for ERP
implementation.
Garg and Khurana (2013) presented the ERP product selection criteria for Indian
SMEs. The finding of this research will help the marketing and sales team of ERP
product companies to improve upon the key points and also enable end users to make
informed decisions in selecting the ERP package for the organisation.
Ratkevicius et al. (2012) presented analysis of different classifications of the
fundamental criteria for the ERP system selection process, and defines two main
groups – software-related, and implementation-related. The significance of ERP system
functionality as the principal software-related ERP selection criterion is emphasised.
Eleven other criteria were defined as important to consider, such as the total
costs of the ERP implementation project, vendor reputation, ERP reliability, ease of
integration with other systems, technology advance, scalability, upgrading ability,
customisation/parameterisation possibilities; ease of use; flexibility and modularity. The
importance of all-round knowledge for a successful ERP implementation is emphasised,
 Literature review on ERP implementation challenges 391

including ERP software functionality, project and change management, business

processes, organisation of training etc. All these areas are closely connected with
implementation-related ERP selection factors: organisational fit, end-user readiness,
training, system support quality.
The researchers have not proposed any quantitative technique for evaluation. There is
scope for future work to create a decision support system which would automate the ERP
selection process.
Juell-Skielse et al. (2012) presented a novel method for ERP selection which better
utilises the strengths of service oriented ERP named agile method for ERP selection
(AMES) as conventional on premise installations of ERP are now rapidly being replaced
by ERP as service. AMES is designed to shorten lead time for selection, support
identification of essential system requirements, increase learning during the selection
process and increase control over the subsequent ERP. AMES, has three phases: envision
iterate and decide.
Though the researchers have proposed a novel method for ERP selection but it is
being used only a small firm the method needs to be evaluated in more organisations of
different size, organisational settings and industries.
Hurbean (2009) presented an objective oriented approach to ERP vendor selection
process in which they emphasised that the selection process should take into account their
ability to help transform business processes in order to achieve the customer’s objectives.
Saroukhani et al. (2008) presented in the review done of the literature published on
the methods of the ERP selection and also done some comparison between the methods.
The researchers have investigated various model of the ERP acquisition process,
evaluating tools, performance prediction system, neural networks and supply chain
management (SCM), etc.
Table 1 summarises the research work and analysis of theoretical approach with
remarks.
Table 1 Literature review on ERP selection challenges – theoretical approach

Sr. no. Authors ERP selection process proposed Remarks

1 Radut and
Codreanu (2012)
2 Johansson et al.
(2011)
3 Garg and Khurana
(2013)
4 Ratkevicius et al.
(2012)
Specific to organisation, analytical
method based on criteria.
Relationship between factors
influencing selection of
implementation approach and
companies’ ability to stay within
budget when implementing ERPs
ERP product selection criteria for
Indian SMEs. The finding of this
research will help the marketing and
sales team of ERP product
companies to improve upon the key
points.
Defines two main groups for
selection – software related and
implementation related. ERP
functionality is recognised as the
most important and significant
criterion.
High subjectivity, lack of
measurable approach.
Factors influencing
selection of implementation
approach to be studied in
further research
Help to enable end users to
make informed decisions in
selecting the ERP package
for the organisation
Necessity of a quantitative
evaluation of the identified
ERP selection criteria
392 S. Ranjan et al.

Table 1 Literature review on ERP selection challenges – theoretical approach (continued)

Sr. no. Authors ERP selection process proposed Remarks

5 Juell-Skielse
et al. (2012)
6 Hurbean (2009)
7 Saroukhani et al.
(2008)
A novel method AMES proposed
considering ERP as service and is
designed to shorten lead time for
selection by agile principles.
Objective oriented approach to help
transform business processes in
order to achieve the customer’s
objectives
Review done of the literature
published on the methods of the
ERP selection
The method needs to be
empirically evaluated in
other organisations of
different size.
Selection criteria need to be
quantified
More research is required
to develop a selection
framework

Pacheco-Comer and Gonzalez-Castolo (2012) presented first results from empirical study
where they found that there is a relation between size of the company and the amount of
investment on an ERP implementation project. Their study also proposed a technique to
identify additional modules to be included in the ERP package.
Their study gives more scope for research in application of computational intelligence
techniques to model the ERP selection process using evolutionary computation, multi
agent systems and Petri Nets etc.
Asl et al. (2012) presented after a thorough review on literature and extracting all the
identified criteria through the previous valid studies, using Delphi method, the following
factors: cost, software quality, vendor and software capability were identified as the main
factors which should be considered by the organisations. These criteria were, then,
ranked using Shannon Entropy technique and the vendor was identified as the most
important criterion.
The study gives good insight and also scope for more research in developing a robust
selection framework in which intended needs and criteria of an organisation are specified
and the best choice which meets the needs of organisation is selected.
Rouyendegh and Erkan (2011) presented a comprehensive framework for selecting a
suitable ERP system by using AHP which can systematically construct the objectives of
an ERP selection to support the business goals and strategies of an enterprise. In the case
study they could realise their selection by using parameters of total costs, implementation
time, functionality, user-friendliness and reliability.
The framework addresses only the software-related selection, criteria and not
vendor-related. More research is required to link the business strategy and IT strategy
with the framework proposed. Ozturkoglu and Esendmir (2014) proposed a model for
selecting the ERP software selection in which they combined grey relational analysis
(GRA) with an intuitionistic fuzzy set multi-criteria method (IFS). In the case study, they
first obtained the weights with using IFS method and then rank and select the alternatives
with using GRA.
The model to be applied in different other organisation to study the increase in the
efficiency of decision making procedure for the decision makers.
Onut and Efendigil (2012) presented a hierarchical framework ERP software vendor
selection process and have also presented a real world case study. As a multi criteria
decision making (MCDM) tool, they used AHP and its fuzzy extension to obtain more
decisive judgments by prioritising criteria and assigning weights to the alternatives.
 Literature review on ERP implementation challenges 393

There is more scope to widen the scope and take into consideration all aspects and
develop a comprehensive frame work.
Kazancoglu and Burmaoglu (2013) presented the TODIM method, which allows the
usage of both qualitative and quantitative data through a case study which involves ERP
software selection process of a steel forming firm.
Further research is required to assess the applicability of this new approach toward
ERP software selection and to deal with the complex calculations in the decision making
process in various industries include manufacturing companies.
Kazemi et al. (2014) presented ERP system criteria based on opinions of the project
expert team and tried to select the best vendor option of ERP system and determine a
suitable ERP package for enterprise using multi-criteria decision making technique and
combining them with goal programming and fuzzy theory.
Cebeci (2009) presented a case study on approach to select a suitable ERP system for
an industry having challenges of variant structure of products, production variety and
unqualified human resources and proposed to match the ERP package objectives with the
business objectives and also provided an analytical tool to select the most suitable ERP
software. In this study, a fuzzy extension of the multi-criteria decision-making technique
analytic hierarchy process (AHP), was used to compare these ERP system solutions.
Table 2 summarises the literature review of ERP selection research work using
quantitative approach with remarks.
Table 2 literature review on ERP selection challenges – quantitative approach

Sr. no. Authors ERP selection process proposed Remarks

1 Pacheco-Comer and Empirical study showed relation
Gonzalez-Castolo between size of the company and
(2012) investment ERP project. A multi
agent system architecture was
modelled for evaluation
2 Asl et al. (2012) Combined approach in identifying
and ranking the effective factors
using Delphi method and Shannon
Entropy technique.
3 Rouyendegh and A comprehensive framework for
Erkan (2011) selecting ERP system based on an
AHP-based decision analysis
process
4 Ozturkoglu and Combined grey relational analysis
Esendmir (2014) (GRA) with an intuitionistic fuzzy
set multi-criteria method (IFS)
5 Onut and Efendigil An hierarchical framework is
(2012) proposed for ERP selection that
meets the customer’s requirements
with respect to cost and quality
constraints, as a MCDM tool AHP
and its fuzzy extension is used
More scope for
research in application of
computational intelligence
techniques.
Generalisation of selection
process needs to be done
considering different type
and size of organisation.
Addresses only the
software related selection
criteria should address
vendor related too.
Future scope to study the
increase in the efficiency of
decision making procedure
for the decision makers.
More scope to researchers
to widen the scope over and
above cost and quality and
take into consideration all
aspects and develop a
comprehensive frame work
for wider applicability.
394 S. Ranjan et al.

Table 2 literature review on ERP selection challenges – quantitative approach (continued)

Sr. no. Authors ERP selection process proposed Remarks

6 Kazancoglu and
Burmaoglu (2013)
7 Kazemi et al.
(2014)
8 Cebeci (2009)
TODIM method, which allows the
usage of both qualitative and
quantitative data
Multi-criteria decision making
technique and combining them with
goal programming and fuzzy theory
Software objectives to match with
the business objectives. FAHP
technique was used to compare the
ERP solutions
Applicability of this
approach to deal with the
complex calculations in the
decision making process in
various industries required
The case study of this
research to be applied to
other organisations in order
to assess the robustness of
the model.
Can be used for
different industry sectors
with some sector specific
characteristics changes.

2.2 Change management challenges in ERP implementation

Before implementing an ERP system, business enterprises analyse organisational
strategy, structure, culture, and operations. Making an organisation and ERP system
compatible may require the organisation to change some or all of the aforementioned
facets of the business. This drives change to business process, which means people must
also change. If change management is not handled well, ERP projects are apt to fail. In
fact, most ERP failures are blamed on people issues rather than technology issues.
People, process and technology are the three drivers of change management for ERP
projects.
Hurt (2011) relates in the case study several established management and information
systems concepts: the value chain, expectancy theory, change management principles, the
capability maturity model and the systems development life cycle.
They relate eight competencies required for successful change management based
on literature of Crawford and Nahmias (2010) especially to ERP projects. These
competencies are leadership, stakeholder management, planning, team selection/team
development, communication; decision making and problem solving, cultural
management and project management.
Al-Shamlan and Al-Mudimigh (2011) discussed that the top management usually
faces an unexpected attitude from potential users during implementing an ERP system.
As their resistance may cause failure of project top management should deal with this
problem using effective change management strategies and processes. They also provided
a very significant and very explicit contribution towards the change management factors
for ERP implementation.
Though paper discusses the strategies and processes used for the successful enterprise
system through a case study there is scope for improvement for research by evaluating
the impact of change management on employees and various stakeholders.
Madapusi and D’Souza (2012) presented a literature-based and theory-driven model
developed to examine the relationship between ERP system implementation and
operational performance and also influence on operational performance. A better
understanding of the contribution of ERP systems to operational performance can be
 Literature review on ERP implementation challenges 395

obtained if researchers address and assess changes at modular and system level also the
use of longitudinal designs to capture and tease out the time delayed effects between ERP
system fine-tuning (at the module and sub-module levels) as well as changes in
operational performance.
Adams and Martin (2011) in the web paper discusses in detail role of change
management to address the People aspect in an ERP implementation project, realise the
path for delivering the new processes and ERP solution into production operations, and
gain ‘reach’ into the organisation. It also addresses how resistance to change affects ERP
implementation and how to mitigate these challenges. The paper also stresses the
importance of organisation alignment, skill assessment, training requirement during the
project execution.
This good concept needs to be applied in other implementation and analysis to be
done through the results. There is need felt for development of tools and methodologies
for better assessment.
Kwak et al. (2012) conceptualises an alternative view of users’ ERP acceptance
model. This study incorporates the best practices of ERP system implementation projects,
internal support, external (consultant) support, and functionality selection, into the
extended technology acceptance model (TAM) that includes belief constructs and socio
environmental construct (subjective norm).
The concept needs to be applied in the manufacturing and other sectors to offer
valuable managerial insights that enable them to appreciate and improve end-users’ ERP
system acceptance.
Poti et al. (2010) presented the analysis of the relationship between organisational
change processes and its impact on individuals from the perspective of ERP users. The
study is based on the perceptions of ERP users on change processes adapted in their
organisations and its outcome at an individual level. The data collected has been analysed
using statistical techniques such as multiple regressions.
The identified relationships would facilitate decision-making on change processes as
per their impact. The study of this nature is the first of its kind in India.
Reddi and Moon (2011) presented a service-oriented architecture (SOA)-based
framework to carryout engineering change management (ECM) across a supply chain.
Each service in the SOA framework accomplishes an independent task, then performs a
set of tasks constituting a business process. This framework enables the interaction
between the partner’s information systems in a communication backbone to achieve an
effective ECM over a collaborative network of product development.
Hofton et al. (2012) has identified the critical people-related challenges organisations
typically face at each phase of an ERP implementation, as well as specific steps to take to
mitigate them. With so much on the line, consider what your organisation should plan to
minimise risk and make the ERP project implementation journey as smooth as possible. It
presents the top ten change management challenges and also provides guidance for
mitigating the same.
Krigsman (2012) in his paper discusses transforming the business using cloud-based
ERP and explores the important role of professional services when implementing cloud
ERP. The author also offers suggestions to encourage cloud ERP adoption, an important
foundation to create business transformation that endures.
There is scope for research to understand role of ERP-related professional services in
the cloud and also implementation and realisation of benefits needs to be evaluated.
396 S. Ranjan et al.

Table 3 Literature review on change management challenges in ERP implementation

Sr. no. Authors ERP selection process proposed Remarks

1 Hurt (2011)
2 Al-Shamlan and
Al-Mudimigh
(2011)
3 Madapusi and
D’Souza (2012)
4 Adams and Martin
(2011)
5 Kwak et al. (2012)
6 Poti et al. (2010)
7 Reddi and Moon
(2011)
8 Hofton et al. (2012) Identified ten change management
challenges and also provides
guidance for mitigating the same.
Relates to several established
management and information
systems concepts. also addresses
how resistance to change affects
ERP Implementation and how to
mitigate these challenges
Change management strategies
should be applied in all three phases
for achieving better ERP results.
Case study presented in which
change management factors and
strategies used in implementation,
and its impact on employees are
described.
A literature-based and theory-driven
model developed to examine the
relationship between ERP system
implementation status and
operational performance at
various level
OCM strategy for effective
implementation of the new ERP
system. It should involve,
communications,
collaboration/participation, business
process reengineering, training
Conceptualizes an ERP acceptance
model which incorporates the best
practices of ERP system
implementation projects into the
extended technology acceptance
model (TAM)
Analysis of the relationship between
organisational change processes and
its impact on individuals from the
perspective of enterprise resource
planning (ERP) users
Service-oriented architecture (SOA)
based framework to carryout
engineering change management
(ECM) across a supply chain.
The concepts and change
management skills
identified need to be
applied to other
organizations
More research required for
evaluating the impact of
change management on
various stakeholders. And
quantitative analysis of
benefit realisation.
Future research is required
considering the use of
longitudinal designs to
capture and tease out the
time delayed effects
between ERP system
fine-tuning.
The concept needs
to be applied in other
implementations. Tools and
methodologies required for
assessing the readiness for
change and also post
implementation realisation.
Further research required
in the manufacturing
sectors to offer valuable
managerial insights that
enable them to appreciate
and improve end-users’
ERP system acceptance
The identified
relationships would
facilitate decision-making
on change processes as per
their impact.
This framework enables
the interaction between
the partner’s information
systems and effective ECM
is achieved.
These concepts should
be studied in detail and
formalised through
a case study
 Literature review on ERP implementation challenges 397

Table 3 summarises the literature review for change management challenges in ERP
implementation.

2.3 Knowledge management challenges in ERP implementation

The simultaneous implementation of ERP and knowledge management systems in
organisations implies some sort of challenges. While ERP systems are meant to increase
the organisational efficiency by enhancing the information processing capability of the
enterprise knowledge management initiatives aim at mobilising the knowledge through
organised knowledge repositories of explicit knowledge and communities of practice as a
means of sharing and creating tacit knowledge, having their overall focus on improving
innovation capabilities by increasing flexibility.
Zakari and Ahmad (2012) in the paper identify two major areas of concern regarding
the management of knowledge in their study: managing tacit knowledge, and issues
regarding the process-based nature of organisational knowledge viewed through the lens
of organisational memory. The competitive advantage of organisation arises from its
capabilities in internalising and integrating the adopted processes with the existing
knowledge paradigms and harmonising the new system and the organisational culture
towards getting the most out of the implementation effort.
Sedera and Gable (2010) presented the research model, illustrating the hypothesised
relationship between knowledge management (KM)-competence and enterprise system
(ES-success) and argued that the higher the organisation’s level of ES-related
KM-competence, the higher will be the level of success of the enterprise system.
Consistent with the literature reviewed they argue that the four knowledge management
phases (i.e. creation, transfer, retention, and application) are distinct yet interrelated, with
competence in each phase contributing to overall KM-competence in the organisation.
Oztemel et al. (2011) proposed effective automated knowledge management systems
including agent-based approaches, such as strategic enterprise resource management
(SERM) together with active knowledge management models such as enterprise
knowledge management model (EKMM) as well respective supporting systems in order
to be intelligent enough in own operations.
SERM is capable of handling corporate level strategic planning, traditional ERP
systems, technology management, customer relationship management (CRM) as well as
performance monitoring. EKMM on the other hand is designed to handle the corporate
knowledge in a systematic ways in order to assure that the right knowledge becomes
available to the right person at the right time.
Neto and Morais (2013) propose a new approach to support the transference of the
knowledge related to the software process to workers that need it. The proposed approach
will support the software requirements engineering through the creation of an
agent-based model to assist the development of intelligent agents that can realise the
knowledge needs, interact with the information systems and support executing the
software developer tasks.
Table 4 summarises the literature review on knowledge management challenges in
ERP implementation with remarks.
398 S. Ranjan et al.

Table 4 Literature review on knowledge management challenges in ERP implementation

Sr. no. Authors ERP selection process proposed Remarks

1 Zakari and Ahmad
(2012)
2 Sedera and Gable
(2010)
3 Oztemel et al.
(2011)
4 Neto and Morais
(2013)
Identified two major areas of
concern regarding the management
of knowledge in this specific type of
project: managing tacit knowledge,
and issues regarding the process-
based nature of organisational
knowledge viewed through the lens
of organisational memory.
Conceptualises, operationalises and
validates the concept of knowledge
management competence as a
four-phase multidimensional
formative index. The study results
demonstrate a large, significant,
positive relationship between
knowledge management
competence and enterprise
systems success.
Automated knowledge management
systems proposed including agent
based approaches such as SERM
together with active knowledge
management models such as
EKMM as well respective
supporting systems in order
to be intelligent enough in
own operations.
A new approach to support the
transference of the knowledge
related to the software process to
workers that need it.
The three dimensions of
knowledge to be considered
are project management,
business and technical
knowledge. Future work
through case study to
establish the concept.
Further research is
warranted, focusing on
identification of potential
theory to explain the
strong positive relationship
observed. Further testing in
multiple industry sectors
having ERP System
suggested
More research requires to
be done to develop a set of
criteria for the assessment
revising the existing
sub-criteria.
The research work can be
adapted for any other phase
of the software process and
also during ERP realisation
phase pertaining to
developments.

2.4 Emerging technologies and future proof challenges in ERP implementation

Organisations are under constant pressure from customers, shareholders, and suppliers to
continuously improve and make better products quickly and efficiently. Competing in a
dynamic environment and meeting global challenges requires agility. Successful
companies must be able to respond quickly and cost-effectively to change. Organisations
need to convert their industries into responsive, demand-driven, profit-making enterprises
by optimising their operations. Their competitive advantage and ultimate survival depend
on the use of extended information system applications and/or technology. This has led to
an increasing interest among vendors to improve future ERP-systems to support the
end-customer organisation even better using emerging technologies.
The emerging technologies will introduce new levels of process flexibility, improve
the transparency of ownership costs, and accelerate the speed of process execution.
Below is a brief introduction of each of the above listed extended information system
applications and/or technology.
 Literature review on ERP implementation challenges 399

Through exhaustive literature survey the following emerging technologies are

identified in report by Hammerman (2011):
• Software as service (SaaS) – and, more broadly, cloud computing – represents an
alternative deployment model that is much more predictable. SaaS or cloud
deployment models will change application economics.
• Mobile technology including devices, software, networks and product distribution
channels is evolving at breakneck pace. The potential of mobile applications to
transform business processes hinges not only on the speed and convenience of
mobility itself, but also on the unique capabilities of the devices to sense, respond to,
deliver and capture information in real time.
• Package configuration tooling that is flexible, graphical and model-based – no
coding required – is evolving and will become a way to differentiate between
packaged application suppliers. Building out these capabilities may prove
challenging, given the high degree of flexibility, variability and adaptability
built into business process modelling (BPM) services.
• Platform-as-a-service (PaaS), a set of rapid application development tools for
extending apps to the cloud, disrupts the notion of ‘build versus buy’ in applications.
Instead of build versus buy, the application platform will enable ‘buy plus build’.
Standard functionality plus PaaS extensibility means that ERP and other complex
applications can be more effectively aligned with business requirements.
• Elastic application platform (EAP) are emerging as an application platform that
automates the elasticity of transactions, services and data, delivering high availability
and performance using elastic resources. EAPs will deliver faster performance and
be more cost-effective to use. Organisations will efficiently manage high volumes of
transaction and internal data and will also draw insight from the vast data resources
that exist in public and industry domains.
• Social communication networks in the consumer world are forcing application
suppliers to harness this technology within, or alongside, business applications. In
the near term – the next one or two years – social collaboration will sit alongside
enterprise applications, as only a few enterprise application suppliers will harness it
successfully in the context of enabling business processes. Effective use of social
collaboration in enterprise applications and business processes will take several years
to mature, eventually becoming a relatively ubiquitous and standardised feature.
• Mobile technology is being leveraged to enhance timely transaction handling and
data collection, as well as access robust tools for management decision making in
supporting SCM, ERP and complimentary systems. Not only must internal
application requirements address the mobility needs of its users, but
interaction with external entities (e.g. suppliers) must be considered, as well.
Hammerman (2011) reports trends for next five years to shape the future of enterprise
applications and ERP that will introduce new levels of process flexibility, improve the
transparency of ownership costs, and accelerate the speed of process execution. As
outlined in recent research from Forrester, seven technologies will drive this
transformation: SaaS, mobile, BPM, usability by making these apps user-friendly and
adding advanced analytics capabilities, PaaS, social networks, and elastic computing.
400 S. Ranjan et al.

This research work is very useful in our work as we have incorporated future technology
trends also in our ERP selection frame work.
Martens (2013) analysed that many ERP vendors debuted product or fleshed out their
strategies for SaaS ERP in 2012 and further developments are set for future with focus
SaaS ERP, SaaS offering in hybrid harmony with on-premises ERP, PaaS and
infrastructure-as-a-service (IaaS) strategies. Given the success of SaaS CRM and HCM,
SaaS financials seems the next area likely to resonant with a larger set of enterprise
customers.
Addo-Tenkorang and Helo (2014) proposed ERP-SaaS model and attempts to
propose industrial systems solution value-adding benefits including: low preliminary-
and-anticipated ongoing costs, faster implementations and value-adding, affordable
ownership cost, greater reliability, improved support, reduced IT complexity and
improved business motivation.
Further research and case study will establish the proposed solution and will be very
relevant to industries keen on achieving competitive advantage of their supply chain
network as well as R&D both in the industry and academia.

3 Conclusions and future work

Technology is advancing at a very fast pace giving rise to growing commitment of OEMs
round the globe for manufacturing excellence in pursuit of staying competitive. To
achieve these business aspirations and goals, business processes are getting more
interrelated and more complex, invariably causing new ERP implementations tougher
and more challenging ever. This poses manifold threats and challenges to OEM
management intended to pursue ERP implementation in terms of selection of appropriate
ERP tools and vendors to match available infrastructure and skill and expertise level of
the organisation and also selection of appropriate implementation methodologies and
models, to culminate in higher operational efficiencies and effectiveness of the
organisation to help stay competitive. Our work is a unique compendium in the sense, a
thorough review and analysis of the literature has built up a comprehensive knowledge
and expertise base and a deeper understanding of corporate ERP strategies to pave a sure
way to effective and efficient new ERP implementation in corporates and OEMs. The
work is limited to study and review of literature and their analyses which invariably
mandate development of an advanced ERP selection framework as a part of future
research direction.
More literature review articles are expected in coming days as the field is becoming
more mature in the integration of emerging technologies such as social media, mobility,
analytics and cloud, together called SMAC. Even though we have presented through this
work challenges faced with respect to perspectives of technology selection, change
management, knowledge management, and emerging technologies, more review of
articles on ERP implementation challenges can be explored for wider perspectives. The
ERP research area is diverse and very broad. The field of ERP will certainly continue to
mature and even more in the emerging technologies. Many whitepapers on emerging
technologies and ERP implementation have been identified which seems to be interesting
to both the researchers, businesses and industrial organisations as they are potential areas
for future research. Development of a ERP technology selection framework will also be
attempted to balance the modern age corporate aspects like risk mitigation, integrating
 Literature review on ERP implementation challenges 401

emerging technologies, aligning selection method with corporate’s mission, vision,

values through corporate strategies and finally, attempting a higher return on investment
through ERP implementation.

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