Issues in multinational ERP implementation

Olson, David L.; Chae, Bongsug; Sheu, Chwen

doi:10.1504/ijsom.2005.006314

Cited by 42 publications

(27 citation statements)

References 16 publications

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“…Dell computers spent millions of dollars on an ES package before scrapping it because the system was too rigid for their expanding global operations. Other cases that experienced ES failures include; Applied Materials (Chen, ), Boeing (Barker & Mark, 2003), Dow Chemical (Olson, Chae, & Sheu, ), Hershey (Calogero, ), Kellogg’s (Dey, Benjamin, & David, ), and Mobil Europe (Yu, ). Research on information systems outcomes mirrors the case examples.…”

Section: Exploring Es Successmentioning

confidence: 99%

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Critical success factors for the implementation of enterprise systems: A literature review

et al. 2018

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Since their inception into work organizations, enterprise systems (ES) have proved challenging for many organizations to implement successfully. This study seeks to advance our understanding of the ES success literature by focusing on Harzing Journal ranked articles only that focus on the issue of “critical success factors” for ES implementation. The authors identify 34 key critical success factors that can provide both scholars and practitioners with a more holistic view of ES success.

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Section: Exploring Es Successmentioning

confidence: 99%

“…Other cases that experienced ES failures include; Applied Materials (Chen, 2001), Boeing (Barker & Mark, 2003), Dow Chemical (Olson, Chae, & Sheu, 2005), Hershey (Calogero, 2000), Kellogg's (Dey, Benjamin, & David, 2010), and Mobil Europe (Yu, 2005). Research on information systems outcomes mirrors the case examples.…”

Section: Exploring Es Successmentioning

confidence: 99%

Critical success factors for the implementation of enterprise systems: A literature review

et al. 2018

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“…However, ERP costs are skyrocketing (Olson, Chae, & Sheu, 2005), mainly due to system customization (Kvavik & Katz, 2002), with the cost demands extending well into the post-implementation phase (Brehm et al, 2001;Spicer et al, 2004). Upon vendor bundle delivery or version upgrade, affected customizations must be redone (Santos, Serrano, & Sarriegi, 2005;Shi & Qian, 2001;Yakovlev, 2002).…”

Section: Literature Review Erp Systemsmentioning

confidence: 99%

Investigating the Effect of Customization on Rework in a Higher Education Enterprise Resource Planning (ERP) Post-Implementation Environment: A System Dynamics Approach

Fryling

2015

Journal of Information Technology Case and Application Research

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Management of enterprise resource planning (ERP) projects is exceedingly challenging due to their large scope and complexity. Schedule and cost overruns have been widely reported in ERP implementation for years. Not only are resources critical to successful ERP implementation, but the post-implementation requires substantial resources as well. However, the resources required to maintain and extend ERP systems after implementation are not well understood, especially in the presence of software customizations which increase the total cost of ownership. This research applies system dynamics simulation modeling, focusing on the rework cycle, to data of a case study toward three primary goals. First, it contributes to both the system dynamics literature and the pre-packaged software literature by exploring the post-adoption ERP environment and extending the task rework cycle. Secondly, it develops a simulation model, grounded in ERP literature and in well-established system dynamics project models, helping practitioners and organizations in making more informed customization decisions by giving them a tool to better assess the long-term resource implications of ERP customization. Lastly, it addresses research gaps recently identified regarding issues such as customization, project evaluation, effort estimation, impact of adoption, system maintenance, performing updates with enterprise apps, and potential reasons for system abandonment.Organizations typically purchase enterprise resource planning (ERP) software in an effort to improve operational efficiency and effectiveness (Sammon & Adam, 2005). Management of ERP projects is exceedingly challenging as these systems are known for being large in scope and com-

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“…Spicer et al (2004) reported that higher education institutions are spending a considerable amount of monetary and workforce resources on their ERP systems. Organisations as a whole are facing a similar destiny, with 70% reporting they plan to increase ERP spending (Olson et al 2005). As the economic situation has continued to decline since 2004, the IT funding challenges are amplified.…”

Section: Enterprise Information Systems 393mentioning

confidence: 99%

Estimating the impact of enterprise resource planning project management decisions on post-implementation maintenance costs: a case study using simulation modelling

Fryling

2010

Enterprise Information Systems

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Organisations often make implementation decisions with little consideration for the maintenance phase of an enterprise resource planning (ERP) system, resulting in significant recurring maintenance costs. Poor cost estimations are likely related to the lack of an appropriate framework for enterprise-wide pre-packaged software maintenance, which requires an ongoing relationship with the software vendor (Markus, M.L., Tanis, C., and Fenema, P.C., 2000. Multisite ERP implementation. CACM, 43 (4), 42-46). The end result is that critical project decisions are made with little empirical data, resulting in substantial long-term cost impacts. The product of this research is a formal dynamic simulation model that enables theory testing, scenario exploration and policy analysis. The simulation model ERPMAINT1 was developed by combining and extending existing frameworks in several research domains, and by incorporating quantitative and qualitative case study data. The ERPMAINT1 model evaluates tradeoffs between different ERP project management decisions and their impact on post-implementation total cost of ownership (TCO). Through model simulations a variety of dynamic insights were revealed that could assist ERP project managers. Major findings from the simulation show that upfront investments in mentoring and system exposure translate to long-term cost savings. The findings also indicate that in addition to customisations, add-ons have a significant impact on TCO.

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Issues in multinational ERP implementation

Cited by 42 publications

References 16 publications

Critical success factors for the implementation of enterprise systems: A literature review

Critical success factors for the implementation of enterprise systems: A literature review

Investigating the Effect of Customization on Rework in a Higher Education Enterprise Resource Planning (ERP) Post-Implementation Environment: A System Dynamics Approach

Estimating the impact of enterprise resource planning project management decisions on post-implementation maintenance costs: a case study using simulation modelling

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