Enterprise Resource Planning

Enterprise
Resource PlanningGlobal Challenges
Opportunities &
Enterprise Resource Opportunities & Challenges by
Planning: Global
Liaquat Hossain, Jon David Patrick and M.A. Rashid ISBN

!"#$%$&#'( Id)a *rou+ Pub,ishin- . /$$/ 0/"1 +a-)s2
3his
t)(t o44)rs a +r)s)nt5day ana,ysis o4 6RP syst)7s,
cu,tura, 4actors, and +ros+)ctiv) 7)thod variations 4or or-ani8ations o4 a,, si8)s.
Table of Contents
6nt)r+ris) R)sourc) P,annin-9*,oba, :++ortuniti)s ; <ha,,)n-)s Pr)4ac) <ha+t)r I <ha+t)r II
1-
<ha+t)r III <ha+t)r I= <ha+t)r = <ha+t)r =I <ha+t)r =II I7+,)7)nt
3h) 6vo, utio n o4 6RP Syst )7s A Hist orica , P)rs +)cti v)
o4 Int)-ration A <as) Study o4 an 6RP I7+,)7)ntation
36RP Syst)7s in >niv)rsiti)s Rationa,)

4or 3h)ir Ado+tion
Advanc)d
4Ass)ssin6nt)r+ris) R)sourc) P,annin- 06RP2 Ado+tion in

th) Phi,i++in)s
5-
3h) I7+act o4
2 -3 h
6nt)r+ris) R)sourc) P,anninSyst)7s on :r-ani8ationa, 644)ctiv)n)ss An Arti4act 6va,uation 6nt)r+ris) R)sourc) P,annin- and ?no@,)d-) Mana-)7)nt 6Syst)7s An 67+irica, Account o4 :r-ani8ationa, 644ici)ncy and A,)(ibi,ity
) M y t h
7-
?no@,)d-)Insi-hts Mana-)7)nt 4or 6nt)r+ris) Syst)7sBAirst 67+irica,
ation
Mana-)7)nt o4
ID to M)diu7 and Lar-) A <ha+t)r <ha+t)r DII 5 :r-ani8ations Ara7)@o rk 4or D <ha+t)r DIII 5 A Study o4 th) th) S),)ction 6RP S),)ction Proc)ss in N)@ 6RP <ha+t)r M)thodo,o-yo4 E)a,and <ha+t)r 5 An :bC)ct5:ri)nt)d A@ar)n)ss5Bas)d Packa-)s 4or 6RP 4or S7a,, DI tiv) >s) o4 6(t)rna, <h D= 1>sin- <ost B)n)4it 6(+)rtis) in <ha+t)r DI= Ana,ysis 4or 6nt)r+ris)26nt)r+ris) a+t R)sourc) P,annin- ProC)ct644 Syst)7s A N)@ ) 6va,uation A <as) 4or c E)a,and <as) )r Ind)( an 65<o77)rc)56nab,)d <ha+t)r =III 5 6nt)r+ris) In4or7ation Syst)7 <as) Study at 3)(as Instru7)nts
Inc,udin- Intan-ib,)s 6(+)ri)nc)
List o4 Ai-ur)s List o4 3ab,)s
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TEAM FLY
Enterprise Resource PlanningGlobal Opportunities & Challenges
3)di Fin-ard
Enterpris 3)chno,o-y e P u Resource b Planning ,i Global s h Opportu ) d nities & i Challeng n es t

Liaquat Hossain Jon a!i" > Patric# n $% &% Rashi" i t ID6A *R:>P ) P>BLISHIN* d Liaquat Hossain Syracus) >niv)rsity, >SA S t a t Jon David Patrick ) >niv)rsity o4 s Sydn)y, Austra,ia o Moha77ad A. 4 Rashid Mass)y A >niv)rsityBA,bany, 7 N)@ E)a,and ) r In4or7ation i Sci)nc) Pub,ishinc a &cquisition E"itor: M)hdi ?hosro@+our $anaging E"itor: Jan 3rav)rs e!elop'ent E"itor: Mich),) Rossi Cop( E"itor: B)th Arn)son T(pesetter: L)Ann Fhitco7b Co!er esign: b y I d ) a * r o u + h )
Print)d at Int)-rat)d Book
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# H)nri)tta Str))t % / < G o $ v ) $ n & t 1 ' * a A r a d ( ) n L o n d o n F < / 6 & L > 3 ) , G G / $ G G / $ % # % " # # ! # F)b sit) htt+ II@@@.)uros+an.co.uk <o+yri-ht . /$$/ by Id)a *rou+ Pub,ishin-. A,, ri-hts r)s)rv)d. No +art o4 this book 7ay b) r)+roduc)d in any 4or7 or by any 7)ans, ),)ctronic or 7)chanica,, inc,udin+hotoco+yin-, @ithout @ritt)n +)r7ission 4ro7 th) +ub,ish)r.
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d i n d ) ( Hossain, Liaquat. . 6nt)r+ris) I r)sourc) S +,anninB -,oba, N o++ortuniti)s and ! cha,,)n-)s I 5 Liaquat " Hossain and # Jon David $ Patrick, % Moha77ad $ A. Rashid. & +. c7. 5 I # n ' c 5 , D u d 0 ) c s , o b t i h b 2 , !. Busin)ss +,annin-. /. i Mana-)7)nt in4or7ation o syst)7s. I. Patrick, Jon David. II. Rashid, r Moha77ad A. III. 3it,). a H + D h # i $ c . a / , & r . ) H 4 ' ) % r % ) n / c $ ) $ s / a ' n Library o4 <on-r)ss <ata,o-in-5in5 Pub,ication Data
1 & . G J $ ! / 5 5 d c / !
3hai,and. Mr. Hossain co7+,)t)d his Ph.D. in In4or7ation 3)chno,o-y and <o7+ut)r Sci)nc), s+)cia,i8inin 3),)co77unications Mana-)7)nt 4ro7 th) >niv)rsity o4 Fo,,on-on-, NSF Austra,ia in !""%. H) @as invit)d to conduct +ostdoctora, r)s)arch at th) Int)rn)t 3),)+hony Int)ro+)rabi,ity <onsortiu7 o4 Massachus)tts Institut) o4 3)chno,o-y in !""%. 3h) )(+osur) to a 7u,tidisci+,inary )ducation and / int)rdisci+,inary r)s)arch $ back-round has h),+)d hi7 in $ d)si-nin- ISI I3 cours)s as @),, ! as in th) +ursuanc) o4 both $ a++,i)d and th)or)tica, r)s)arch 1 in ar)as ,ik) " t),)co77unications G 7ana-)7)nt, ),)ctronic / co77)rc), in4or7ation 1 )cono7ics, h)a,th in4or7atics, )ISBN !51"!G$5 and strat)-ic in4or7ation 7ana-)7)nt. His curr)nt $/15/ r)s)arch is on th) 4o,,o@inBritish ar)as und)rstandin<ata,o-uin- in t)chno,o-ica, ,)arnin- ca+abi,ity Pub,ication Data o4 s7a,, and 7)diu7 si8)d SF A <ata,o-uin- in d)v),o+7)nt co7+ani)s in Pub,ication Austra,ia and th) >S, r)cord 4or this und)rstandinth) r),ationshi+ book is avai,ab,) b)t@))n I3 inv)st7)nt and 4ro7 th) British or-ani8ationa, +roductivity and Library. und)rstandin- tacit kno@,)d-) sharin- syst)7s in or-ani8ation. &bout the &uthors Jon a!i" Patric# ho,ds th) inau-ura, Sybas) <hair o4 Liaquat Hossain in4or7ation syst)7s in th) is an assistant Schoo, o4 In4or7ation +ro4)ssor at th) 3)chno,o-i)s at th) >niv)rsity Schoo, o4 o4 Sydn)y, and +r)vious,y h),d In4or7ation th) inau-ura, <hair o4 Studi)s at In4or7ation Syst)7s at Mass)y Syracus) >niv)rsity, N)@ E)a,and. H) >niv)rsity. His has b))n activ) 4or 7any y)ars back-round is in in ,an-ua-) t)chno,o-y @hich Bach),or o4 h) has co7bin)d @ith his busin)ss +ro4)ssiona, activiti)s as a ad7inistration, +sychoth)ra+ist. H) no@ !""# and M.Sc. in a++,i)s thos) )(+)rtis)s to <o7+ut)r and or-ani8ationa, issu)s in chan-) 6n-in))rin7ana-)7)nt and kno@,)d-) Mana-)7)nt, 7ana-)7)nt. H) ho,ds 4iv) !""1 4ro7 th) d)-r))s 4ro7 various Assu7+tion univ)rsiti)s inc,udin- a Ph.D. >niv)rsity o4 4ro7 Monash >niv)risty in
7achin) ,)arnin-. an associat) +ro4)ssor o4 co7+ut)r and in4or7ation $oha''a" &% )n-in))rin- at th) Int)rnationa, Is,a7ic Rashi" is a >niv)rsity Ma,aysia, s)nior s)nior ,)ctur)r ,)ctur)r o4 co7+ut)r sci)nc) o4 in4or7ation at th) >niv)rsity o4 Brun)i )n-in))rin- at Darussa,a7, and associat) Mass)y >niv)rsity, N)@ +ro4)ssor at Dhaka >niv)rsity. E)a,and. Prior to H) r)c)iv)d M.Sc. 6n-. d)-r)) 4ro7 th) 3)chnica, >niv)rsity his curr)nt +osition, h) @as o4 Froc,a@, Po,and in !"%& and Ph.D. in <o77unications
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6n-in))rin4ro7 th) >niv)rsity o4 Strathc,yd), >? in !"&'. His r)s)arch int)r)sts ar) 7u,ti7)dia co77unication ov)r hi-h5 s+))d n)t@orks, 7obi,) @ir),)ss 7u,ti7)dia co77unication s, voic) ov)r LANIFAN, 7u,ti7)dia ov)r IP n)t@orks, so4t@ar) co7+on)nts and )5 co77)rc) t)chno,o-i)s. Ros)o &l!are* is an assistant +ro4)ssor o4 in4or7ation syst)7s at th) >niv)rsity o4 Massachus)tts Boston. Sh) has @ork)d 4or 7any y)ars as a syst)7s )n-in))r, I3 +ro4)ssiona, and <I:. Sh) is curr)nt,y s)rvinas associat) chanc),,or 4or in4or7ation t)chno,o-i)s at th) >niv)rsity o4 Massachus)tts A7h)rst. H)r r)s)arch int)r)sts inc,ud) discours) ana,ysis and sociocu,tura, issu)s o4 t)chno,o-y i7+,)7)ntations. +re"eric# %
&'ores is +r)sid)nt o4 3hird Fav) So4t@ar) Associat)s, a 7ana-)7)nt in4or7ation syst)7s consu,tancy -rou+ in th) Phi,i++in)s. H) @as a 4or7)r 4acu,ty and chair o4 th) co7+ut)r sci)nc) d)+art7)nt o4 <)bu DoctorKs <o,,)-) and a 4or7)r ,)ctur)r in 7ana-)7)nt and co7+ut)r sci)nc) at th) >niv)rsity o4 th) Phi,i++in)s <)bu <o,,)-). An activ) 7)7b)r o4 th) <)bu I3 industry, h) s)rv)s as a r)sourc) +)rson in I35r),at)d @orksho+s. His 4i),ds o4 int)r)st ar) 7ana-)7)nt, in4or7ation t)chno,o-y, and busin)ss r))n-in))rin-. E",ar" -% .% /ernroi"er is an assistant +ro4)ssor at th) =i)nna >niv)rsity o4 6cono7ics and Busin)ss Ad7inistration, Institut) o4 In4or7ation Proc)ssin-, in Austria. H) ho,ds a 7ast)r o4 sci)nc) d)-r)) in a++,i)d in4or7atics 4ro7 th) >niv)rsity o4 Sa,8bur- and a Ph.D. d)-r)) in busin)ss ad7inistration 4ro7 th) =i)nna >niv)rsity o4 6cono7ics and B.A., @h)r) h) t)ach)s in th) und)r-raduat) and M.B.A. +ro-ra7s. His curr)nt r)s)arch and industry +roC)cts 4ocus on th) int)rnationa, so4t@ar) industry, )nt)r+ris) r)sourc) +,anninsyst)7s and th) )va,uation o4 I3I3? syst)7s and archit)ctur)s.
&n"reas /orell is a 7ast)r stud)nt at th) Schoo, o4 6cono7ics, D)+art7)nt o4 In4or7atics, Lund >niv)rsity, S@)d)n and h) is a,so a 4or7)r )7+,oy)) o4 th) dot.co7 @or,d. H) has b))n +ub,ish)d Coint,y @ith Jonas H)d7an in s)v)ra, con4)r)nc)s. O% $a0ie 1$a02 /urns is a +ro4)ssor o4 in4or7ation syst)7s at *)or-ia South)rn >niv)rsityKs co,,)-) o4 busin)ss ad7inistration and a visitin- +ro4)ssor at th) Institut) o4 In4or7ation and
Math)7atica, Production and Inventory Sci)nc)s, Mass)y Management Journal. >niv)rsity, Auck,and, N)@ Ro( Chan is a Ph.D. stud)nt E)a,and. H) at Lu))ns,and >niv)rsity o4 r)c)iv)d his Ph.D. 3)chno,o-y, Austra,ia. H) co7+,)t)d his in4or7ation in 7ana-)7)nt t)chno,o-y d)-r)) @ith 4irst in4or7ation c,ass honors in !""" and @as syst)7s 4ro7 a@ard)d th) L>3 7)da,. His *)or-ia Stat) r)s)arch int)r)sts ar) >niv)rsity. Dr. Burns has tau-ht kno@,)d-) 7ana-)7)nt, +roc)ss )n-in))rin-, and conduct)d onto,o-i)s and )nt)r+ris) r)s)arch in S@)d)n, Austra,ia, syst)7s. H) has )n-a-)d in nu7)rous 6S -rou+ +roC)cts N)@ E)a,and, and is no@ invo,v)d in 6S ?or)a and th) >SA. His +ri7ary cas)s studi)s. r)s)arch 4ocus has b))n in t)chno,o-y +arha" aneshgar is a s)nior ,)ctur)r o4 in4or7ation syst)7s ado+tion and )nt)r+ris) syst)7 at th) >niv)rsity o4 N)@ South Fa,)s, Austra,ia. His 7ain int)-ration. His @ork has a++)ar)d 4i),ds o4 r)s)arch inc,ud) in Courna,s such as syst)7s ana,ysis and d)si-n, eServices Journal, <S<F and kno@,)d-) 7ana-)7)nt. His +ro+os)d Journal of Small th)or)tica, a@ar)n)ss Business 4ra7)@ork and co,,aborativ) Management, +roc)ss 7od), hav) a,r)ady International b))n us)d as ana,ytica, too,s in Journal of 7any ar)as inc,udin- n)t@ork Computer 7ana-)7)nt, cours)@ar) Applications in d)si-n, kno@,)d-) sharin-, and Technology, and
on,in)
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r)s)arch in th) In4or7ation Syst)7s D)+art7)nt at th) t)achin-I,)arnin- London Schoo, o4 6cono7ics . 3h) author is a and Po,itica, Sci)nc), >?. 7)7b)r o4 th) Prior to Coinin- th) LS6 h) @or,d@id) =irtua, @as a +ro4)ssor o4 in4or7ation 7ana-)7)nt 6nt)r+ris) R)s)arch *rou+ 0and d)an 4or th) +)riod as @),, as th) !""G5!""&2 at Far@ick Busin)ss Schoo,. H) is ?no@,)d-) curr)nt,y an honorary Mana-)7)nt R)s)arch *rou+ +ro4)ssor o4 th) 6uro+)an at th) >niv)rsity Institut) 4or Advanc)d o4 N)@ South Mana-)7)nt Studi)s, Fa,)s, Austra,ia. Bruss),s, and is *)7ini <onsu,tin- visitin- +ro4)ssor in kno@,)d-) 7ana-)7)nt at Ricar"o ia*3 /aron ho,ds an th) >niv)rsity o4 St. *a,,)n. H) @as +r)sid)nt o4 th) M.B.A. 4ro7 Association o4 In4or7ation 6scu),a d) Ad7inistraciMn d) Syst)7s 0AIS2 in !""" and is +ro-ra7 cochair o4 I<IS N)-ocios +ara /$$/. H) is )ditor5in5chi)4 o4 *raduados 06SAN2 in Li7a, th) Journal of Strategic P)ru. His ar)as o4 Information Systems. His int)r)st ar) th) books inc,ud) In4or7ation us) o4 in4or7ation Syst)7s R)s)arch 0!""12N In4or7ation 3)chno,o-y and syst)7s 4or :r-ani8ationa, 3rans4or7ation su++ortin0!""%2N Strat)-ic In4or7ation or-ani8ationa, Mana-)7)nt 0!"""2N and +,annin- and R)thinkin- Mana-)7)nt contro,. H) In4or7ation Syst)7s 0!"""2. @ork)d in His r)s)arch is o+)rationa, transdisci+,inary in natur) r)s)arch and contro, o4 +o@)r and curr)nt,y 4ocus)s on innovation and kno@,)d-) syst)7s at th) 7ana-)7)ntN th) >niv)rsidad d) Piura and @as a 7ana-)7)nt o4 chan-)N consu,tant in th) in4or7ation syst)7s strat)-yN ),)ctrica, s)ctor in and intra5 and )(tra5 P)ru. At 6SAN, h) or-ani8ationa, i7+acts o4 th) Int)rn)t. @ork)d as a
r)s)arch assistant in th) in4or7ation Jonas He"'an is a Ph.D. t)chno,o-y ar)a. candidat) at th) Schoo, o4 <urr)nt,y, h) is a 6cono7ics, D)+art7)nt o4 consu,tant o4 th) In4or7atics, Lund >niv)rsity, S@)d)n. H) has b))n :44ic) o4 Pub,ic Inv)st7)nt at th) r)s+onsib,) 4or r),ationshi+s @ith th) SAP >niv)rsity A,,ianc) Ministry o4 Pro-ra7. H) has b))n 6cono7ics and Ainanc) in P)ru. +ub,ish)d in int)rnationa, con4)r)nc)s and b))n an invit)d s+)ak)r at th) SAP Robert % >niv)rsity A,,ianc) <on-r)ss. Galliers is a +ro4)ssor o4 in4or7ation syst)7s and h)ad o4
Ji''( C% Huang is a ,)ctur)r in th) In4or7ation 3)chno,o-y Strat)-y *rou+ at th)
Nottin-ha7 >niv)rsity Busin)ss Schoo,, >?. Prior to CoininNottin-ha7 >niv)rsity h) @as a ,)ctur)r in th) D)+art7)nt o4 Mana-)7)nt Studi)s at th) >niv)rsity o4 Ab)rd))n. H) is a 7)7b)r o4 th) I?:N 0Innovation, ?no@,)d-) and :r-ani8ationa, N)t@orkin-2 r)s)arch -rou+ bas)d at th) >niv)rsity o4 Far@ick. His r)s)arch 4ocus)s on th) +roc)ss o4 cross54unctiona, kno@,)d-) int)-ration und)r,yinor-ani8ation5@id) +roC)ct i7+,)7)ntation. H) has +ub,ish)d so7) artic,)s on
this subC)ct in Courna,s inc,udin-
European Journal of Information Systems, Journal of ecision Systems, and Journal of Information Technology Management. 4tefan 5och is an assistant +ro4)ssor o4 in4or7ation busin)ss at th) =i)nna >niv)rsity o4 6cono7ics and Busin)ss Ad7inistration in Austria. H) r)c)iv)d a M.B.A. in 7ana-)7)nt in4or7ation syst)7s 4ro7 =i)nna >niv)rsity and =i)nna 3)chnica, >niv)rsity and a Ph.D. 4ro7 =i)nna >niv)rsity o4 6cono7ics and Busin)ss Ad7inistration. <urr)nt,y h) is invo,v)d in th) und)r-raduat) and -raduat) t)achin+ro-ra7, )s+)cia,,y in so4t@ar) +roC)ct 7ana-)7)nt and 6RP +acka-)s. His r)s)arch int)r)sts inc,ud) cost )sti7ation 4or so4t@ar) +roC)cts, th) o+)n sourc) d)v),o+7)nt 7od),, so4t@ar) +roc)ss i7+rov)7)nt, th) )va,uation o4 b)n)4its 4ro7 in4or7ation syst)7s and 6RP syst)7s.
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7achin) and +)rsonn), sch)du,in- as @),, as in th) or-ani8ationa, ,)arninE""ie $orris3 ,it)ratur). Mor) r)c)nt,y, his &barca is a s)nior ,)ctur)r o4 4ocus has shi4t)d to th) va,u) o4 i7+,)7)ntin- ,ar-)5sca,) in4or7ation t)chno,o-y at th) +acka-)d so4t@ar) in -,oba, or-ani8ations and th) 6scu),a d) Ad7inistraciMn d) i7+,ications o4 this tr)nd 4or )ducation. Dr. Mur+hy has N)-ocios +ara +ub,ish)d in !perations *raduados 06SAN2 in Li7a, "esearch, #aval "esearch P)ru. H) ho,ds a $ogistics, and
B.S. d)-r)) in Communications of the ACM in4or7ation Courna,s. H) is an activ) syst)7s 4ro7 7)7b)r o4 3h) Institut) 4or >niv)rsidad :+)rations R)s)arch and Naciona, d) Mana-)7)nt Sci)nc) In-)ni)rOa 0P)ru2. 0INA:RMS2 and th) D)cision H) is th) <6: o4 Sci)nc)s Institut) 0DSI2. In4oP,annin-, a ,oca, consu,tant 4ue .e,ell is a +ro4)ssor 4ir7 s+)cia,i8in- o4 innovation and in IS +,annin- andor-ani8ationa, ana,ysis in busin)ss +roc)ss th) Schoo, o4 Mana-)7)nt r))n-in))rin-. H) at Roya, Ho,,o@ay, is curr)nt,y vic) >niv)rsity o4 London, >?. +r)sid)nt o4 th) Pr)vious,y, sh) @as a P)ruvian r)s)arch dir)ctor at Association 4or Nottin-ha7 Busin)ss <o7+utin- and Schoo,. Sh) is a 4oundinIn4or7ation 7)7b)r o4 th) I?:N Syst)7s. r)s)arch -rou+ bas)d at th) >niv)rsity o4 Far@ick, 5enneth E% @h)r) sh) @as 4or7)r,y $urph( ho,ds )7+,oy)d. H)r r)s)arch a Ph.D. 4ro7 4ocus)s on )(+,orininnovation as an int)ractiv) <arn)-i) M),,on d)si-n5d)cision +roc)ss, >niv)rsity in @h)r) n)t@orks ar) crucia, o+)rations 4or th) sharin- and r)s)arch and int)-ratin- o4 kno@,)d-). has b))n Sh) has @ritt)n )(t)nsiv),y )7+,oy)d by on this subC)ct in Courna,s A,orida inc,udinInt)rnationa, !rgani%ation Studies, >niv)rsity sinc) !rgani%ation, &uman !""G. Dr. "elations, Journal of Mur+hyKs Strategic Information r)s)arch Systems and European int)r)sts ar) Journal of Information vari)d, Systems. s+annin- th)
quantitativ) 7)thods and t)chno,o-y ar)nas. S+)ci4ica,,y, h) has @ork)d and +ub,ish)d in th) ar)as o4
a!e Oli!er is a s)nior ,)ctur)r in co7+utin- at <)ntra, Lu))ns,and >niv)rsity, Austra,ia. H) has an honors d)-r)) in )cono7ics 4ro7 Far@ick >niv)rsity, >?, and a 7ast)r o4 t)chno,o-y d)-r)) in
co7+ut)r sci)nc) +ro4)ssor in th) D)+art7)nt o4 4ro7 Brun), In4or7ation Syst)7s o4 th) >niv)rsity, >?. Schoo, o4 <o7+utin- at th) L)ctur)r :,iv)r Nationa, >niv)rsity o4 has +ub,ish)d Sin-a+or), Sin-a+or). Dr. +a+)rs in th) PanKs +ri7ary r)s)arch 4ocus)s SI*<S6 Courna, o4 on th) r)cursiv) int)raction o4 th) A<M and has or-ani8ations and in4or7ation +r)s)nt)d +a+)rs t)chno,o-y 0)nt)r+ris) at a nu7b)r o4 syst)7s2, @ith +articu,ar int)rnationa, )7+hasis on issu)s r),at)d to con4)r)nc)s. H) @ork +ractic)s, cu,tur)s and has b))n th) structur)s 4ro7 a kno@,)d-) cours) +)rs+)ctiv). S+)ci4ica,,y, h) is coordinator 4or a int)r)st)d in und)rstandinth) nu7b)r o4 d)-r)) co7+,)( issu)s r),at)d to th) cours)s in ado+tion, i7+,)7)ntation and co7+utin- at us) o4 )nt)r+ris) syst)7s <)ntra, @ithin or-ani8ations. So7) o4 Lu))ns,and th)s) )nt)r+ris) syst)7s >niv)rsity. Prior inc,ud) kno@,)d-) to his ,)cturin7ana-)7)nt syst)7s 0?MS2, a++oint7)nt at )nt)r+ris) r)sourc) +,annin<)ntra, 06RP2 syst)7s, su++,y chain Lu))ns,and 7ana-)7)nt 0S<M2, and >niv)rsity h) custo7)r r),ationshi+ ,)ctur)d at th) 7ana-)7)nt 0<RM2 syst)7s. Harro@ <o,,)-) o4 Hi-h)r 6ducation $aria i!ina Gracia 6% in th) >? and Rol"an is th) associat) d)an @ork)d as a o4 th) >niv)rsity o4 th) co7+ut)r Phi,i++in)s <)bu <o,,)-), th) +ro-ra77)r in Phi,i++in)s, and a 4acu,ty th) <ity o4 7)7b)r o4 th) co,,)-), London. t)achin- +o,itica, sci)nc) and history cours)s. Sh) has 4han3Ling Pan )arn)d h)r Ph.D. in Phi,i++in) is an assistant studi)s at
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co77unity in4or7atics, ),)ctronic co77)rc), th) >niv)rsity o4 co7+ut)r57)diat)d co77unication, and I3IIS th) Phi,i++in)s )ducation. Dr. Ro77 +ub,ish)d Asian <)nt)r, Di,i7an. A7on- thr)) books Electronic Commerce' A (lo)al h)r ar)as o4 Perspective 0+ub,ish)d throu-h s+)cia,i8ation S+rin-)r, London, in !""&2, ar) *irtual Politic+ing 0+ub,ish)d or-ani8ations, -ov)rn7)nt and throu-h Ha7+ton Pr)ss, >SA, in !"""2 and oing Business on +o,itics, and the Internet,!pportunities and int)rnationa, Pitfalls 0+ub,ish)d in !""" by r),ations. H)r S+rin-)r, London, and to b) r)s)arch int)r)sts inc,ud) +ub,ish)d in <hina by 3ianCin P)o+,)Ks Pub,ishin- Hous) in in4or7ation /$$!2. In addition, Dr. Ro77 t)chno,o-y, -ov)rnanc), and +ub,ish)d ov)r "$ +a+)rs in r)4)r))d Courna,s and cha+t)rs 4or)i-n a44airs. in co,,)ctiv) vo,u7)s, as @),, as H)r 7u,tidisci+,inary +r)s)nt)d h)r @ork in ov)r '$ ,oca, and int)rnationa, trainin- has con4)r)nc)s. Dr. Ro77Ks +rov)n to b) r)s)arch @as +ub,ish)d in such us)4u, in h)r +r)vious @ork in Courna,s as &uman "elations, both +rivat) and !rgani%ation Studies, Comparative Economic +ub,ic think5 Studies, Studies in Popular tanks. Culture, Information ; Celia T% Ro'' is Management, The Computer Journal, ata)ase, The Journal a 4oundation of Information Systems +ro4)ssor o4 Management, The Information in4or7ation Society, The Australian Journal t)chno,o-y at of Information Systems, The <)ntra, Asia Pacific Journal of &uman Lu))ns,and "esources, &igher Education, >niv)rsity, Austra,ia, and an The European Journal of Education, Interchange, honorary Journal of Professional +ro4)ssor at AuCian Radio and Services Mar+eting, Advances 3= >niv)rsity, th) in Consumer Behavior, #eP)o+,)Ks R)+ub,ic Technology, .or+, and Employment, The Journal of o4 <hina. Sh) Informatics Education and r)c)iv)d h)r "esearch, The Journal of Ph.D. 4ro7 th) Management evelopment, >niv)rsity o4 3oronto, <anada Information Technology and 0!"%"2. Sh) has People, International Journal b))n a ,)ctur)r, of Information Systems, consu,tant, and Communications of the ACM, visitin- scho,ar in Transactions on Information Systems, and The &arvard Isra),, Ja+an, Business "evie-. *)r7any, <anada, th) >SA, and Austra,ia. Dr. $ichael Rose'ann r)c)iv)d Ro77Ks curr)nt his M.B.A. 0!""/2 and his Ph.D. r)s)arch int)r)sts 0!""12 4ro7 th) >niv)rsity o4 Mu)nst)r, *)r7any. Sinc) !""" inc,ud)
h) has @ork)d at 7ana-)7)nt and distanc) th) Schoo, o4 )ducation. In4or7ation Syst)7s at th) J% $artin 4antana is an Lu))ns,and associat) +ro4)ssor o4 >niv)rsity o4 in4or7ation t)chno,o-y at th) 3)chno,o-y, 6scu),a d) Ad7inistraciMn d) Brisban), N)-ocios +ara *raduados 06SAN2 Austra,ia. As an in Li7a, P)ru. H) ho,ds a Ph.D. associat) dir)ctor in busin)ss ad7inistration 4ro7 o4 L>3Ks A,orida Int)rnationa, >niv)rsity In4or7ation and a M.S. in in4or7ation Syst)7s syst)7s 4ro7 th) Pco,) d)s Mana-)7)nt Haut)s Ptud)s <o77)rcia,)s in R)s)arch <)ntr) Montr)a,. His r)s)arch int)r)sts h) is a cor) inc,ud) ),)ctronic busin)ss, 7)7b)r o4 th) syst)7s d)v),o+7)nt t)a7 that a++roach)s, and con4,ict 7ana-)s th) 7ana-)7)nt in th) d)v),o+7)nt 7ySAP >niv)rsity +roc)ss. H) has +ub,ish)d in th) A++,ication ar)as o4 th) us) o4 -,oba, Hostin- <)ntr). a++,ications o4 in4or7ation H) is author o4 t)chno,o-y, th) 7ana-)7)nt o4 t@o books, and th) syst)7s d)v),o+7)nt )ditor o4 t@o +roc)ss, and th) cons)qu)nc)s books, author o4 o4 in4or7ation t)chno,o-y in 7or) than /1 or-ani8ations. book cha+t)rs and 7or) than 1$ Jai'e 4eri"a3 r)4)r))d Courna, .ishi'ura is an and con4)r)nc) associat) +ro4)ssor o4 +a+)rs. His 7ain in4or7ation syst)7s at ar)as o4 r)s)arch th) 6scu),a d) ar) )nt)r+ris) Ad7inistraciMn d) syst)7s, N)-ocios +ara *raduados kno@,)d-) 06SAN2 in Li7a, P)ru. H) 7ana-)7)nt, r)c)iv)d his Ph.D. in conc)+tua, 7ana-)7)nt in4or7ation 7od),in-, syst)7s 4ro7 th) o+)rations >niv)rsity o4
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Minn)sota. His r)s)arch int)r)sts inc,ud) ),)ctronic busin)ss, strat)-ic i7+act o4 in4or7ation t)chno,o-y, -rou+ su++ort syst)7s, and th) ado+tion and di44usion o4 in4or7ation t)chno,o-y in or-ani8atio ns.
Joseph 4ar#is is curr)nt,y an associat) +ro4)ssor at th) *raduat) Schoo, o4 Mana-)7)nt at <,ark >niv)rsity. H) )arn)d his Ph.D. 4ro7 th) Stat) >niv)rsity o4 N)@ Qork at Bu44a,o, >SA. His r)s)arch int)r)sts inc,ud) 7anu4acturinstrat)-y and 7ana-)7)nt, @ith a s+)ci4ic )7+hasis on +)r4or7anc) 7ana-)7)nt, Custi4ication issu)s, )nt)r+ris) 7od),in- and )nviron7)nta,,y conscious o+)rations and ,o-isitics. H) has +ub,ish)d ov)r !/$ artic,)s in a nu7b)r o4 +))r r)vi)@)d acad)7ic Courna,s and con4)r)nc)s.
H) is a 7)7b)r o4 th) A7)rican Production and Inv)ntory <ontro, Soci)ty 0API<S2, Institut) 4or :+)rations R)s)arch and Mana-)7)nt Sci)nc)s 0INA:RMS2, th) D)cision Sci)nc)s Institut) 0DSI2, and th) Production and :+)rations Mana-)7)nt Soci)ty 0P:MS2. H) is a,so a c)rti4i)d +roduction and inv)ntory 7ana-)r 0<PIM2.
$aha 4ha#ir is a Ph.D. candidat) at th) Institut) o4 In4or7ation ; Math)7atica, Sci)nc) at Mass)y >niv)rsity in Auck,and, N)@ E)a,and. H)r back-round is in archit)ctura, )n-in))rin- @h)r) sh) +ractic)d th) d)si-n, coordination and i7+,)7)ntations o4 7any construction +roC)cts 4or a,7ost t)n y)ars. <o7+,)tina Mast)rs d)-r)) in )n-in))rin- 7ana-)7)nt 4ro7 th) >niv)rsity o4 Auck,and has 7otivat)d h)r to d)v),o+ n)@ ski,,s in th) 4i),d o4 7ana-)7)nt in4or7ation syst)7s. A4t)r -ainin- a -raduat) di+,o7a in in4or7ation sci)nc), sh) start)d a Ph.D. r)s)arch +roC)ct that )(+,or)s th) strat)-ic d)cision 7akin+roc)ss o4 )nt)r+ris) syst)7s i7+,)7)ntation. H)r +artici+ation in s)v)ra, int)rnationa, con4)r)nc)s inc,ud)d th) +ub,ication o4 a r)s)arch +a+)r in AM<ISK/$$$, +,us oth)r doctora, consortiu7 and sy7+osiu7 +r)s)ntations. Sh) and Dr. Hossain hav) a 4orthco7in- +a+)r in a s+)cia, issu) on 6RP in th) Journal of ecision Systems. :n) o4 h)r r)c)nt achi)v)7)nts is h)r acc)+tanc) as a 4),,o@ o4 th) doctora, consortiu7 to th) int)rnationa, con4)r)nc) o4 in4or7ation syst)7s 0I<IS2, /$$!. 4te!en John 4i'on is a +ro4)ssor in th) Busin)ss Schoo, o4 A,orida Int)rnationa, >niv)rsity. H) r)c)iv)d his
Ph.D. 4ro7 th) +roC)cts. Dr. Si7on is a,so an >niv)rsity o4 o44ic)r in th) >nit)d Stat)s South <aro,ina, Nava, R)s)rv) assi-n)d to th) s+)cia,i8in- in dir)ctorat) o4 ,o-istics 4or MIS and >nit)s Stat)s At,antic int)rnationa, <o77and. His +ast Navy busin)ss. B)4or) assi-n7)nts inc,ud)d s)rvin)nt)rinth) as In4or7ation R)sourc) doctora, +ro-ra7 Mana-)7)nt :44ic)r to th) h) s+)nt !& y)ars <o77and)r o4 th) S)cond in th) +rivat) Nava, <onstruction Bri-ad). H) s)ctor in has consu,t)d and ,)ctur)d 7ana-)7)ntIco7 )(t)nsiv),y in ?or)a, Hon+ut)r o+)rations ?on-, Ma,aysia, Sin-a+or), and and @as th) P)o+,)Ks R)+ub,ic o4 <hina. o@n)rIo+)rator o4 H) has +r)vious,y +ub,ish)d in s)v)n McDona,dKs Information Systems 4ranchis)s. His "esearch, Journal of Applied curr)nt r)s)arch Psychology, Communication int)r)sts inc,ud) of the ACM, ata)ase, The in4or7ation Journal of (lo)al d)t)r7inants o4 Information Technology int)rnationa, Management, The Journal of busin)ss (lo)al Information structur)s, Management, and The )nt)r+ris) Information "esources in4or7ation Management Journal. syst)7s, IS trainin- and R% P% 4un"arra7 is an ,)arnin- issu)s, associat) +ro4)ssor o4 ),)ctronic in4or7ation syst)7s at <,ark co77)rc) in th) >niv)rsity in Forc)st)r, MA. int)rnationa, H) obtain)d his Bach),orKs in )nviron7)nt and ),)ctrica, )n-in))rin- 4ro7 th) or-ani8ation >niv)rsity o4 Madras, India, chan-) and and his M.S. and Ph.D. in ,)arnin-. H) has 7ana-)7)nt sci)nc) 4ro7 th) )(t)nsiv) 6RP >niv)rsity o4 3)nn)ss)), )(+)ri)nc) havin- ?no(vi,,). Pro4)ssor @ork)d @ith SundarraCJs r)s)arch co7+ani)s such )nco7+ass)s th) d)v),o+7)nt as IBM on SAP o4 i7+,)7)ntation
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Mathematical Programming. In addition, h) has consu,t)d @ith 7)thodo,o-i)s 4or Aortun) !$$ co7+ani)s on th) d)v),o+7)nt o4 d)cision th) )44ici)nt su++ort and oth)r so4t@ar) d)si-n and 7ana-)7)nt o4 syst)7s 4or 7at)ria,s and 7ark)tin- 7ana-)7)nt. )7)r-inin4or7ation syst)7s, as @),, &ntonio R% 6a'ora is a 4acu,ty 7)7b)r t)achinas th) us) o4 7assiv),y +ara,,), 4inanc) cours)s at th) <o,,)-) o4 Busin)ss and 6cono7ics, D) co7+utin- 4or La Sa,,) >niv)rsity, Mani,a, th) so,vin- ,ar-)5 sca,) +rob,)7s. Phi,i++in)s. A c)rti4i)d +ub,ic His r)s)arch has accountant @ith M.B.A. units at b))n acc)+t)d in th) D) La Sa,,) >niv)rsity Courna,s such as *raduat) Schoo, o4 Busin)ss, h) has ov)r /$ y)ars o4 Information )(+)ri)nc) in th) cor+orat) Systems @or,d. H) ,ast s)rv)d as vic) Management, +r)sid)nt 4or 4inanc) o4 IEEE A,ha7bra Industri)s, Mani,a. Transactions, H) has a,so att)nd)d traininACM Transactions, and at th) Asian Institut) o4 3)chno,o-y, 3hai,and.
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In +articu,ar, this book +rovid)s 0i2 -,oba, cov)ra-) hi-h,i-htin- cas) studi)s and )7+irica, studi)s o4 th) 6RP +ractic)s cov)rin- both th) 3his book +rovid)s a socio5 d)v),o+)d and d)v),o+int)chnica, vi)@ o4 )cono7i)sN 0ii2 int)rdisci+,inary 4ocus to i7+rov) und)rstandin)nt)r+ris) r)sourc) +,annin- o4 th) busin)ss b)n)4its and 7yths o4 th) )44)ctiv)n)ss o4 06RP2 s),)ction 6RP syst)7sN 0iii2 cov)ra-) o4 and i7+,)7)ntation di44)r)nt inv)sti-ativ) +ractic)s 4ro7 a a++roach)s such as cas) studi)s, )7+irica, studi)s, -,oba, +)rs+)ctiv). 3h) int)r+r)tativ) studi)s, action )7+hasis o4 this r)s)arch and )thno-ra+hic book is not on th) studi)s as a +aradi-7 o4 t)chno,o-y +)r s) r)s)arch to@ards und)rstandin- 6RP syst)7sK but on th) 4unctiona,ity, s),)ction, s),)ction, i7+,)7)ntation i7+,)7)ntation and +ost5 strat)-i)s, as @),, i7+,)7)ntation issu)sN 0iv2 as i7+,ications o4 socio5t)chnica, vi)@ o4 th) uti,i8ation o4 6RP syst)7s in 6RP syst)7s both ,ar-) and s7a,,5to5 to@ards 7)diu75si8)d or-ani8ationsN or-ani8ationa, )44)ctiv)n)ss. It and 0v2 7at)ria,s that can b) us)d 4or busin)ss cas) studi)s cov)rs critica, and t)achin-. )(a7ination o4 th) us)4u,n)ss o4 <ha+t)r ! +rovid)s a historica, 6RP syst)7sK +)rs+)ctiv) o4 th) )vo,ution o4 4unctiona,ity 6RP syst)7s and its ov)ra,, ass)ss7)nt 4or s7a,,5to57)diu75 tr)nd in th) industry. 3h) si8)d )nt)r+ris)s cha+t)r hi-h,i-hts us)4u, 6RP 0SM6s2, )44)ctiv) conc)+ts such as charact)ristics and so4t@ar) us) o4 6RP 4or archit)ctur) o4 6RP syst)7s, achi)vin7aCor 6RP v)ndor o+tions 4or or-ani8ationa, )44)ctiv)n)ss, and )(t)nd)d and Int)rn)t5 )nab,)d 6RP syst)7s, and 6RP 4or -,oba, 6RP tr)nds, su++ortin- th) o++ortuniti)s and cha,,)n-)s. kno@,)d-) It a,so hi-h,i-hts critica, issu)s 7ana-)7)nt r),at)d to th) 7ana-)7)nt o4 4unctions in th) 6RP ,i4) cyc,). or-ani8ations. <as) studi)s <ha+t)r / discuss)s th) 7yth to-)th)r @ith o4 6RP syst)7s int)-ration. so7) )7+irica, 3his r)s)arch )(a7in)s th) inv)sti-ation o4 i7+,)7)ntation +roc)ss o4 an 6RP syst)7s 6nt)r+ris) R)sourc) P,anninuti,i8ation in 06RP2 syst)7 and sho@s that or-ani8ations cov)rin- countri)si7+,)7)ntation cannot b) such as th) >S, vi)@)d so,),y in instru7)nta, t)r7sBthat is, or-ani8ations do >?, S@)d)n, Austria, Austra,ia, not si7+,y s),)ct syst)7s N)@ E)a,and and bas)d on in4or7ation r)quir)7)nts so that +ro+)r Phi,i++in)s ar) R4itS can b) achi)v)d. Inst)ad, +rovid)d.
Preface
this r)s)arch or-ani8ationa, va,u)s. 3h) 7yth su--)sts that th) 4unction)d as a v)hic,) o4 activiti)s o4 cons)nsua, or-ani8ationa, s),)ctin- and r)a,ity, s)rvin- to a,i-n th) i7+,)7)ntin- a acquisition o4 an 6RP syst)7 n)@ 6RP b)co7) @ith th) or-ani8ationa, va,u)s, th) 7)diu7 4or th)r)by -arn)rin- @id)s+r)ad 0r)52 constructin- su++ort 4or a co7+,)(, or 0r)52 )(+)nsiv) and r),ativ),y constitutin- th) unkno@n t)chno,o-y. or-ani8ationKs va,u)s. 3h)orists <ha+t)r # addr)ss)s th) rationa,) 4or ado+tion o4 6RP hav) d)scrib)d such activiti)s as syst)7s in univ)rsiti)s. 3his a R7yth7akin-S cha+t)r out,in)s th) si-ni4icanc) +roc)ss. A cas) o4 6nt)r+ris) R)sourc) P,anninstudy o4 an 06RP2 syst)7s and ana,ys)s th) i7+,)7)ntation at rationa,) us)d 4or th)ir ado+tion. a ,ar-) non+ro4it 3his study is structur)d around or-ani8ation is th) th)ory o4 7otivations 4or +r)s)nt)d to inv)st7)nt in in4or7ation d)7onstrat) ho@ t)chno,o-y 0I32 to su++ort cor) 7yth7akinbusin)ss o+)rations. 3h) data s)rv)d to us)d 4or th) study ar) construct an 6RP docu7)nts +ub,ish)d syst)7 as an ),)ctronica,,y on th) Int)rn)t by Rint)-rat)dS univ)rsiti)s. A cont)nt ana,ysis syst)7 and at th) @as a++,i)d to this data. 3h) sa7) ti7) s)rv)d cha+t)r )7+,oys 4r)qu)nt us) o4 to ),aborat) quot)s 4ro7 th) sourc)s s),)ct)d )(istinto assist th) r)ad)r to
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und)rstand th) cont)(t and to v)ri4y th) ana,ysis. 3h) 4indin-s ar) that th) 7ain r)asons 4or ado+tin- 6RP ar) th) 7od)rni8ation o4 syst)7s, -r)at)r usabi,ity and 4,)(ibi,ity, int)-ration o4 data and syst)7s, busin)ss +roc)ss r))n-in))rin-, an incr)as) in th) d)-r)) o4 ),)ctronic data int)rchan-) inc,udin- th) +rovision o4 F)b5bas)d int)r4ac)s to a++,ication syst)7s, r)duc)d 7aint)nanc) and risk avoidanc). <ha+t)r G +rovid)s an ass)ss7)nt o4 6RP syst)7s ado+tion in th) Phi,i++in)s. =i)@)d as a va,uab,) r)sourc) that can +rovid) various ca+abi,iti)s to co7+ani)s that us) it, 6RP can b) a sourc) o4 co7+)titiv) advanta-) 4or a 4ir7. Ho@)v)r, th) succ)ss4u, ado+tion o4 6RP @i,, r)quir) cu,tur) 7odi4ication @ithin a 4ir7 as it invo,v)s r)vo,utionary chan-)s in th) @ay +)o+,) @i,, b) doin- thin-s, )s+)cia,,y in d)v),o+incountri)s ,ik) th) Phi,i++in)s. 3his 7odi4ication rais)s so7) issu)s that +oint to th) viabi,ity o4 6RPKs us) in th) Phi,i++in) cont)(t. 3his cha+t)r +r)s)nts an ov)rvi)@ o4 6RP ado+tion in th) Phi,i++in)s by )(a7inin- 4our Phi,i++in) busin)ss )nt)r+ris)s as cas) studi)s. 3h)s) 4ir7s ar) +art o4 -,oba, )nt)r+ris)s @ith +ar)nt co7+ani)s abroad. 3h) cha+t)r inv)sti-at)s th) or-ani8ationa, cont)(t @ithin @hich 6RP is a++,i)d in th) Phi,i++in) s)ttin-. It a,so ,ooks at th) +rob,)7s and issu)s rais)d by th) said 4ir7s in th)ir us) o4 6RP as a too, to achi)v) )44ici)ncy in th) or-ani8ation.
<ha+t)r 1 discuss)s th) i7+act o4 6RP syst)7s on or-ani8ationa, )44)ctiv)n)ss in S@)d)n. 6nt)r+ris) R)sourc) P,annin- 06RP2 syst)7s hav) an or-ani8ationa, i7+act and ar) in 7ost cas)s i7+,)7)nt)d to i7+rov) or-ani8ationa, )44)ctiv)n)ss. Shortco7in-s in curr)nt r)s)arch 7ak) it di44icu,t to conc,ud) ho@ an or-ani8ation 7ay b) a44)ct)d. 3his +a+)r +r)s)nts an arti4act )va,uation o4 th) 4unctiona,ity and +)rc)iv)d b)n)4its o4 6RP syst)7s. 3h) )va,uation is bas)d on th) co7+)tinva,u)s 7od),. 3h) )va,uation sho@s that 6RP syst)7s su++ort )44)ctiv)n)ss crit)ria 0such as contro, and +roductivity2 r),at)d to int)rna, +roc)ss and rationa, -oa, 7od),s. 3h) )va,uation a,so +oints out @)akn)ss)s in 6RP syst)7s and )s+)cia,,y in ar)as r),at)d to hu7an r),ations and o+)n syst)7s 7od),s. 3h) r)su,t o4 th) )va,uation is us)d to discuss th) i7+act o4 6RP syst)7s on or-ani8ations and is +r)s)nt)d as a s)ri)s o4 hy+oth)s)s.
<ha+t)r ' +rovid)s an )7+irica, inv)sti-ation o4 th) us)4u,n)ss o4 6RP and kno@,)d-) 7ana-)7)nt 0?M2 syst)7s 4or )nhancin- or-ani8ationa, )44ici)ncy and 4,)(ibi,ity. 3h) cha+t)r co7+ar)s th) charact)ristic di44)r)nc)s and si7i,ariti)s b)t@))n th) t@o initiativ)s and )(a7in)s ho@ th)y in4,u)nc) or-ani8ationa, )44ici)ncy and 4,)(ibi,ity @h)n i7+,)7)nt)d @ithin a -,oba, )n-in))rin- 4ir7. It is su--)st)d that th) t@o initiativ)s ar) conc)+tua,,y co7+,)7)ntary and can on,y cr)at) a syn)r-y @h)n th) d)si-n o4 or-ani8ationa, routin)s and +ractic)s 4its into th) 7)ta5routin)s i7+os)d by 6RP and ?M, and th) socia, +roc)ss)s ar) nurtur)d @ithin 4unctions and cross54unctiona,,y.
<ha+t)r % discuss)s th) kno@,)d-) 7ana-)7)nt +roc)ss 4or )nt)r+ris) syst)7s. 6nt)r+ris) Syst)7s ar) co7+r)h)nsiv) and co7+,)( a++,ications that 4or7 th) cor) busin)ss o+)ratinsyst)7 4or 7any co7+ani)s @or,d@id) and throu-hout 7ost industri)s. 3h) s),)ction, i7+,)7)ntation, us) and continuous chan-) and )vo,ution o4 )nt)r+ris) syst)7s 06S2 r)quir) a -r)at a7ount o4 kno@,)d-) and )(+)ri)nc). 67+irica, studi)s sho@ that th) 7ana-)7)nt o4 kno@,)d-) is on) o4 th) 7ain cost driv)rs o4 6S +roC)cts. <ons)qu)nt,y, or-ani8ations hav) r)a,i8)d th) n))d to b)tt)r ,)v)ra-) th)ir ?no@,)d-) Mana-)7)nt 4or 6nt)r+ris) Syst)7s. 3his cha+t)r +ro+os)s a 4ra7)@ork 4or structurinkno@,)d-) 4or 6nt)r+ris) Syst)7s. A thr))5di7)nsiona, 4ra7)@ork is d)riv)d 4ro7 7)ta5cas) studi)s and co7+r)h)nsiv) ,it)ratur) ana,ysis. It consists o4 di7)nsions 4or th) 6S ,i4) cyc,), th) ?no@,)d-) Mana-)7)nt ,i4) cyc,) and th) ty+)s o4 kno@,)d-). Pr),i7inary )7+irica, insi-hts sho@ that )s+)cia,,y th) ,ack o4 +roduct5
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6RP +roc)ss that )(+,icit,y addr)ss)s th) Ra@ar)n)ssS and Rkno@,)d-)5sharin-S issu)s s+)ci4ic @ithin th) 6RP +roc)ss. 3his kno@,)d-) is a conc)+tua, 7od), critica, succ)ss 4actor that ,)ads d)7onstrat)s th) co,,aboration r)quir)7)nts o4 th) actors to si-ni4icant consu,tin- costs b)hind individua, busin)ss +roc)ss)s as @),, as th) in 6S +roC)cts. r),ationshi+s a7on- th)s) busin)ss +roc)ss)s. 3his <ha+t)r & +r)s)nts a cas) cha+t)r is int)nd)d to introduc) to th) 6RP study o4 an ov)rvi)@ o4 th) co77unity a r),)vant +i)c) o4 )44orts o4 3)(as @ork in conc)+tua, 7od),,in4ro7 th) +)rs+)ctiv) o4 Instru7)ntKs 03IKs2 int)rna, and co7+ut)r su++ort)d co,,aborativ) @ork 0<S<F2 )(t)rna, 6RP i7+,)7)ntation, @ith th) ai7 o4 attractinr)s)arch co,,aborators 4or @ith a 4ocus on 4urth)r inv)sti-ation in th)s) ,inkin- its 6RP syst)7 in a -,oba, 4i),ds. Lik) 7any )(istin- 6RP 4ra7)@orksI7od),s, th) )5co77)rc) +ro+os)d 4ra7)@ork is a,so s)ttin-. It is bas)d on a @id),y acc)+t)d ar-u)d in this cha+t)r that this assu7+tion that a cor+orat)5 @id) in4or7ation syst)7 ,inka-) is consists o4 a s)t o4 +ot)ntia,,y )s+)cia,,y i7+ortant sinc) it r),at)d subsyst)7s. As a had b))n stat)d r)su,t, in4or7ation 4,o@s in 3IKs strat)-ic a7on- th)s) subsyst)7s 7ust b) id)nti4i)d and r)quir)d +,an as an obC)ctiv) o4 this r)sourc)s b) +,ann)d usin- an +roC)ct to +rovid) a++ro+riat) 6RP 7)thodo,o-y. visibi,ity o4 th) <ha+t)r !$ introduc)s a 6RP syst)7 to 4ra7)@ork 4or ass)ssin- 6RP )(t)rna, )nviron7)nt via syst)7sK 4unctiona,ity 4or th) SM6s in Austra,ia. Antici+atinF)b ,inka-)s th) us) o4 th) 6RP syst)7s a,on- @ith th) a7on- th) SM6s to b) th) obC)ctiv) o4 4utur) ar)a o4 -ro@th, 6RP standardi8inint)rna, +roc)ss)s v)ndors such as SAP, :rac,), and i7+ortant I3 P)o+,)So4t, J. D. 6d@ards and to su++ort 7ark)t Baan ar) introducin- 6RP so4t@ar) that a++)a,s to th) n))ds. 7ark)t s)-7)nt o4 th) SM6s. Introduction o4 th) 6RP <ha+t)r " syst)7s 4or SM6s inc,ud)s introduc)s an co7+act +acka-)s, 4,)(ib,) obC)ct5ori)nt)d a@ar)n)ss5bas)d +ricin- +o,ici)s, n)@ 7)thodo,o-y 4or i7+,)7)ntation 7)thodo,o-i)s, 6RP. 3his cha+t)r and 7or) s+)cia,is)d 4unctiona,iti)s. 3h) str)n-ths5 introduc)s a @)akn)ss5o++ortunity5thr)ats conc)+tua, 0SF:32 4ra7)@ork o4 th) 6RP 7od), 4or 6RP so4t@ar) o44)r)d by th) that has an )7+hasis on th) a4or)7)ntion)d v)ndors 4or th) SM6s r)quir)s in5d)+th ana,ysis co,,aborativ) bas)d on r)a, 4i),d data. 3his natur) o4 th) study att)7+ts to id)nti4y th)
+roc)ss o4 an 6RP syst)7 at str)n-ths, A,i7)ntos P)ru. It discuss)s th) @)akn)ss)s, o++ortuniti)s, and or-ani8ationKs 7aCor conc)rns thr)ats o4 6RP durinth) 7id5!""$s, inc,udinsyst)7s o44)r)d incr)asin- co7+)tition, by th) 4iv) in)44ici)ncy o4 busin)ss ,)adin- v)ndors +roc)ss)s, and ,ack o4 ti7),y 4or th) SM6s in and accurat) in4or7ation. 3h) Austra,ia. Mu,ti+,) study )(+,ains th) crit)ria us)d cas) study d)si-n to )va,uat) and s),)ct th) a++roach is us)d syst)7, as @),, as th) 7ain h)r) 4or co,,)ctin- issu)s and +rob,)7s that aros) th) +ri7ary data durinth) i7+,)7)ntation 4ro7 th) 6RP +roc)ss. In +articu,ar, this cas) v)ndors. A SF:3 4ocus)s u+on a s)t o4 4ra7)@ork is i7+,)7)ntation 4actors, such as d)v),o+)d to to+ 7ana-)7)nt su++ort, us)r study th) +artici+ation, and +roC)ct 4unctiona,ity o4 7ana-)7)nt. th) 6RP syst)7s o44)r)d by th)s) <ha+t)r !/ +rovid)s a v)ndors. 3his 4ra7)@ork 4or th) s),)ction o4 4ra7)@ork 7ay 6RP +acka-)s 4or s7a,,5 to5 -uid) th) 7)diu7 and ,ar-) 7ana-)rs o4 or-ani8ations. 3h) 4ocus h)r) SM6s in s),)ctin- is on th) )ar,y sta-) o4 and i7+,)7)ntin- )va,uatin- and s),)ctinan 6RP syst)7s 4or 6RP syst)7 +rior to th)ir i7+,)7)ntation. :n,y a +art o4 or-ani8ations. th) d)cision 7akin- 4or 6RP syst)7s can b) hand,)d by a <ha+t)r !! d)4init) or acc)+t)d +roc)dur) d)scrib)s th) such as standard i7+,)7)ntation
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inv)st7)nt ca,cu,ations. 3h)r) ar) 7any oth)r intan-ib,) d)cision57akincrit)ria n))d)d to b) Cud-)d and )va,uat)d by th) d)cision 7ak)rs. 3h)r) is no a-r))d5u+on and 4or7a, +roc)dur) 4or this i7+ortant task. 3h)r)4or) it s))7s n)c)ssary <ha+t)r !# +rovid)s an )(+,oratory inv)sti-ation o4 to inv)sti-at) d)cision57akin- th) 6nt)r+ris) R)sourc) P,annin- 06RP2 so4t@ar) +ractic)s to s),)ction +roc)ss in N)@ incr)as) th) und)rstandin- o4 E)a,and. A bri)4 back-round this co7+,)( and to-)th)r @ith th) 7ain i7+ortant task. 4)atur)s o4 6RP is +rovid)d. It 3h) cha+t)r a,so is con4)rr)d in this study that th) s),)ction and 4ocus)s on th) d)cision57akin- i7+,)7)ntation o4 6RP situation 4ac)d by d)s)rv) )qua, i7+ortanc). Aindin-s o4 )(+,oratory cas) s7a,, and studi)s on th) 6RP s),)ction 7)diu75si8)d +roc)ss in N)@ E)a,and 0NE2 )nt)r+ris)s 0SM6s2. 3his is o4 su--)st that th) s),)ction o4 6RP -uid)s th) +articu,ar i7+,)7)ntation +roc)ss. It is i7+ortanc) b)caus) SM6s ar) a,so )vid)nt 4ro7 4indin-s o4 7or) and 7or) th) study that 7ost N)@ )(+)ri)ncin- th) E)a,and or-ani8ations s),)ct th)ir consu,tants and ,)t th)7 n))d 4or -uid) th) 6RP s),)ction, int)-ration, i7+,)7)ntation, as @),, as )s+)cia,,y 4or int)ror-ani8ationa +ost5i7+,)7)ntation +roc)ss. , int)-ration, and <ha+t)r !G sho@s ho@ cost )(+)ctin- 6RP so4t@ar) to 4u,4i,, b)n)4it ana,ysis can b) a++,i)d th)s) n))ds. 3h) to ,ar-)5sca,) 6RP +roC)cts, and that th)s) 7)thods can avai,abi,ity o4 incor+orat) th) intan-ib,) r),ativ),y b)n)4its, ).-., us)r satis4action. in)(+)nsiv) D)tai,)d in4or7ation on th) hard@ar) is busin)ss cas) uti,i8)d by a ,ar-) 4ost)rin- this co7+ut)r 7anu4actur)r in th)ir situation. In -)n)ra,, d)cision d)cision to i7+,)7)nt th) SAP 7akin- in SM6s syst)7 RI# is a,so +r)s)nt)d h)r). 4)atur)s 7uch -r)at)r constraints on th) <ha+t)r !1 addr)ss)s th) abi,ity to -ath)r issu)s associat)d @ith th) us) o4 )(t)rna, )(+)rtis) in in4or7ation in ord)r to r)duc) )nt)r+ris) syst)7s. It ,ooks at unc)rtainty about th) 6S i7+,)7)ntation ,i4) cyc,)
th)ir inv)st7)nt. <onsid)rin6RP so4t@ar) d)cisions @ith its co7+,)( and 4ar5r)achini7+,ications, +oor d)cision 7akin- by SM6s can r)su,t in disastrous situations. 3h) 4ra7)@ork out,in)d in this cha+t)r and th) inv)sti-at)d r)s)arch hy+oth)s)s r)+r)s)nt a 4urth)r st)+ to@ards und)rstandinth) d)cision5 7akin- +roc)ss 4or 6RP inv)st7)nts and di44)r)nc)s 7ad) by SM6s and ,ar-) or-ani8ations.
and id)nti4i)s @h)r) in th) i7+,)7)ntation +roc)ss )(t)rna, )(+)rts ar) uti,i8)d and @hat ro,)s th)y 4u,4i,, in th) i7+,)7)ntation +roC)ct. 3h) +a+)r conc,ud)s @ith a N)@ E)a,and cas) )(+)ri)nc) i,,ustratin- th) us) o4 )(t)rna, )(+)rts in a 7aCor )nt)r+ris) syst)7s i7+,)7)ntation.
@ithout @hos) su++ort th) +roC)ct cou,d not hav) b))n satis4actori,y co7+,)t)d. A 4urth)r s+)cia, not) o4 thanks -o)s a,so to a,, th) sta44 at Id)a *rou+ Pub,ishin-, @hos) contributions throu-hout th) @ho,) +roc)ss 4ro7 inc)+tion o4 th) initia, id)a to 4ina, +ub,ication hav) b))n inva,uab,).
Most o4 th) authors o4 cha+t)rs inc,ud)d in this a,so book s)rv)d as r)4)r))s 4or artic,)s @ritt)n by oth)r authors. 3hanks -o to a,, thos) @ho +rovid)d constructiv) and co7+r)h)nsiv) r)vi)@s. Su++ort o4 th) Bass)r D)+art7)nt o4 <o7+ut)r Sci)nc) o4 th) >niv)rsity o4 &c#no,le"g'e Sydn)y and th) Institut) o4 nts In4or7ation and Math)7atica, Sci)nc)s o4 Mass)y >niv)rsity 3h) )ditors o4 N)@ E)a,and o+)rations is @ou,d ,ik) to ackno@,)d-)d. ackno@,)d-) th) h),+ o4 a,, S+)cia, thanks a,so -o to th) invo,v)d in +ub,ishin- t)a7 at Id)a *rou+ th) co,,ation Pub,ishin-. In +articu,ar to Jan and r)vi)@ 3rav)rs, @ho continuous,y +roc)ss o4 +rodd)d via )57ai, 4or k))+inth) book, th) +roC)ct on sch)du,)
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and to M)hdi ?hosro@+our , @hos) )nthusias7 7otivat)d 7) to initia,,y acc)+t his invitation 4or takin- on this +roC)ct.
authors 4or th)ir insi-hts and )(c),,)nt contributions to this book. I a,so @ant to thank a,, o4 th) +)o+,) @ho assist)d 7) in th) r)vi)@in- +roc)ss. In addition, this book @ou,d not hav) b))n +ossib,) @ithout th) on-oin- +ro4)ssiona, su++ort 4ro7 M)hdi ?hosro@+our and Jan 3rav)rs at Id)a *rou+ Pub,ishin-.
Liaquat Hossain8 Ph In c,osin-, I @ish $oha''a" &% Rashi"8 Ph to thank a,, o4 th) Jon a!i" Patric#8 Ph .o!e'ber 9::;
1 4 -
Chapter <: The E!olutio n of ERP 4(ste's :& Historica l Perspect i!e
OVERVIEW
)vo,ution o4 6RP syst)7s and th)ir curr)nt archit)ctur)s. 3h) advanta-)s and disadvanta-)s o4 th) 6RP syst)7s @i,, i7+act th)ir +)n)tration in this n)@ 7ark)t. 3h) 7ark)t +osition and -)n)ra, strat)-y o4 th) 7aCor syst)7s +rovid)rs in +r)+aration 4or this +ush ar) d)scrib)d. 3h) cha+t)r conc,ud)s that th) -ro@th and succ)ss o4 6RP ado+tion and d)v),o+7)nt in th) n)@ 7i,,)nniu7 @i,, d)+)nd on th) ,)-acy 6RP syst)7Ks ca+abi,ity o4 )(t)ndin- to <usto7)r R),ationshi+ Mana-)7)nt 0<RM2, Su++,y <hain Mana-)7)nt 0S<M2 and oth)r )(t)nd)d 7odu,)s, and int)-ration @ith th) Int)rn)t5 )nab,)d a++,ications.
$oha''a" &% Rashi" 3h) un+r)c)d)nt)d -ro@th o4 Mass)y in4or7ation and >niv)rsityB co77unication t)chno,o-i)s A,bany, N)@ 0I<32 driv)n by E)a,and 7icro),)ctronics, co7+ut)r Liaquat Hossain hard@ar) and so4t@ar) Syracus) syst)7s has in4,u)nc)d a,, >niv)rsity, >SA 4ac)ts o4 co7+utinJon a!i" a++,ications across Patric# or-ani8ations. Si7u,tan)ous,y >niv)rsity o4 th) busin)ss )nviron7)nt is Sydn)y, Austra,ia b)co7in- incr)asin-,y co7+,)( @ith 4unctiona, units r)quirin<o+yri-ht . 7or) and 7or) int)r54unctiona, /$$/, Id)a *rou+ data 4,o@ 4or d)cision 7akin-, Pub,ishin-. ti7),y and )44ici)nt +rocur)7)nt o4 +roduct +arts, 6RP syst)7s ar) 7ana-)7)nt o4 inv)ntory, no@ ubiquitous in accountin-, hu7an r)sourc)s ,ar-) busin)ss)s and distribution o4 -oods and and th) curr)nt s)rvic)s. In this cont)(t, 7ov) by v)ndors 7ana-)7)nt o4 or-ani8ations is to r)+acka-) n))ds )44ici)nt in4or7ation th)7 4or s7a,, to syst)7s to i7+rov) 7)diu7 co7+)titiv)n)ss by cost )nt)r+ris)s r)duction and b)tt)r ,o-istics. 0SM6s2. 3his It is univ)rsa,,y r)co-ni8)d by 7i-ration has ,ar-) and s7a,,5to5 7)diu75 7any si8) )nt)r+ris)s 0SM62 that th) cons)qu)nc)s ca+abi,ity o4 +rovidin- th) ri-ht that hav) to b) in4or7ation at th) ri-ht ti7) addr)ss)d brin-s tr)7)ndous r)@ards to throu-h or-ani8ations in a -,oba, und)rstandinth) co7+)titiv) @or,d o4 co7+,)( history and busin)ss +ractic)s.
INTRODUCTION
Startin- in th) ,at) !"&$s and th) b)-innin- o4 th) !""$s n)@ so4t@ar) syst)7s kno@n in th) industry as )nt)r+ris) r)sourc) +,annin- 06RP2 syst)7s hav) sur4ac)d in th) 7ark)t tar-)tin7ain,y ,ar-) co7+,)( busin)ss or-ani8ations. 3h)s) co7+,)(, )(+)nsiv), +o@)r4u,,
+ro+ri)tary syst)7s ar) o44 th)5sh),4 so,utions r)quirinconsu,tants to tai,or and i7+,)7)nt th)7 bas)d on th) co7+anyKs r)quir)7)nts. In 7any cas)s th)y 4orc) co7+ani)s to r))n-in))r th)ir busin)ss +roc)ss)s to acco77odat) th) ,o-ic o4 th) so4t@ar) 7odu,)s 4or str)a7,inindata 4,o@ throu-hout th) or-ani8ation. 3h)s) so4t@ar) so,utions, un,ik) th) o,d, traditiona, in5 hous)5d)si-n)d co7+any5 s+)ci4ic syst)7s, ar) int)-rat)d 7u,ti57odu,) co77)rcia, +acka-)s suitab,) 4or tai,orin- and addin- Radd5 onsS as and @h)n r)quir)d.
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3h) +h)no7)na, -ro@th o4 co7+utin- +o@)r and th) Int)rn)t is brin-in- )v)r 7or) cha,,)n-)s 4or th) 6RP v)ndors and th) custo7)rs to r)d)si-n 6RP +roducts, br)akinth) barri)r o4 +ro+ri)torshi+ and custo7i8ation, and )7bracinth) co,,aborativ) busin)ss ov)r th) intran)t, )(tran)t and th) Int)rn)t in a s)a7,)ss 7ann)r. 3h) v)ndors a,r)ady +ro7is) 7any Radd5onS 7odu,)s, so7) o4 @hich ar) a,r)ady in th) 7ark)t as a si-n o4 acc)+tanc) o4 th)s) cha,,)n-)s by th) 6RP v)ndors. It is a n)v)r5)ndin+roc)ss o4 r))n-in))rinand d)v),o+7)nt brin-in- n)@ +roducts and so,utions to th) 6RP 7ark)t. 6RP v)ndors and custo7)rs hav) r)co-ni8)d th) n))d 4or +acka-)s that 4o,,o@ o+)n archit)ctur), +rovid) int)rchan-)ab,) 7odu,)s and a,,o@ )asy custo7i8ation and us)r int)r4acin-.
ERP SYSTEMS DEFINED

6nt)r+ris) r)sourc) +,anninsyst)7s or )nt)r+ris) syst)7s ar) so4t@ar) syst)7s 4or busin)ss 7ana-)7)nt, )nco7+assin- 7odu,)s su++ortin- 4unctiona, ar)as such as +,annin-, 7anu4acturin-, sa,)s, 7ark)tin-, distribution, accountin-, 4inancia,, hu7an r)sourc) 7ana-)7)nt, +roC)ct 7ana-)7)nt, inv)ntory 7ana-)7)nt, s)rvic) and 7aint)nanc), trans+ortation and )5busin)ss. 3h) archit)ctur) o4 th) so4t@ar) 4aci,itat)s trans+ar)nt int)-ration o4 7odu,)s, +rovidin- 4,o@ o4 in4or7ation b)t@))n a,, 4unctions @ithin th) )nt)r+ris) in a consist)nt,y visib,) 7ann)r. <or+orat) co7+utin- @ith 6RPs a,,o@s co7+ani)s to i7+,)7)nt a sin-,) int)-rat)d syst)7 by r)+,acin- or r)5)n-in))rinth)ir 7ost,y inco7+atib,) ,)-acy in4or7ation syst)7s. A7)rican Production and Inv)ntory <ontro, Soci)ty 0/$$!2 has d)4in)d 6RP syst)7s as Ra 7)thod 4or th) )44)ctiv) +,annin- and contro,,in- o4 a,, th) r)sourc)s n))d)d to tak), 7ak), shi+ and account 4or custo7)r ord)rs in a 7anu4acturin-, distribution or s)rvic) co7+any.S F) quot) s)v)ra, d)4initions 4ro7 th) +ub,ish)d ,it)ratur) to 4urth)r )(+,ain th) conc)+t R6RP 0)nt)r+ris) r)sourc) +,anninsyst)7s2 co7+ris)s o4 a co77)rcia, so4t@ar) +acka-) that +ro7is)s th) s)a7,)ss int)-ration o4 a,, th) in4or7ation 4,o@in- throu-h th) co7+anyB4inancia,, accountin-, hu7an r)sourc)s, su++,y chain and custo7)r in4or7ationS 0Dav)n+ort, !""&2. R6RP syst)7s ar) con4i-urab,) in4or7ation syst)7s +acka-)s that int)-rat) in4or7ation and in4or7ation5bas)d +roc)ss)s @ithin and across 4unctiona, ar)as in an or-ani8ationS
0?u7ar ; =an Hi,,s-)rsb)r-, /$$$2. R:n) databas), on) a++,ication and a uni4i)d int)r4ac) across th) )ntir) )nt)r+ris)S 03adC)r, !""&2. R6RP syst)7s ar)
co7+ut)r5bas)d syst)7s d)si-n)d to +roc)ss an or-ani8ationKs transactions and 4aci,itat) int)-rat)d and r)a,5 ti7) +,annin-, +roduction, and custo7)r r)s+ons)S 0:KL)ary, /$$!2. 3h) conc)+t o4 th) 6RP syst)7 can b) i,,ustrat)d, 4o,,o@in- Dav)n+ort 0!""&2, @ith th) dia-ra7 in Ai-ur) !.
1 6 -
+igure ;: 6RP syst)7s conc)+t
EVOLUTION OF ERP SYSTEMS

3h) )vo,ution o4 6RP syst)7s c,os),y 4o,,o@)d th) s+)ctacu,ar d)v),o+7)nts in th) 4i),d o4 co7+ut)r hard@ar) and so4t@ar) syst)7s. Durin- th) !"'$s 7ost or-ani8ations d)si-n)d, d)v),o+)d and i7+,)7)nt)d c)ntra,i8)d co7+utinsyst)7s, 7ost,y auto7atin- th)ir inv)ntory contro, syst)7s usin- inv)ntory contro, +acka-)s 0I<2. 3h)s) @)r) ,)-acy syst)7s bas)d on +ro-ra77in- ,an-ua-)s such as <:B:L, AL*:L and A:R3RAN. Mat)ria, r)quir)7)nts +,annin- 0MRP2 syst)7s @)r) d)v),o+)d in th) !"%$s @hich invo,v)d 7ain,y +,annin- th) +roduct or +arts r)quir)7)nts accordin- to th) 7ast)r +roduction sch)du,). Ao,,o@inthis rout) n)@ so4t@ar) syst)7s ca,,)d 7anu4acturin- r)sourc)s +,annin- 0MRP II2 @)r) introduc)d in th) !"&$s @ith an )7+hasis on o+ti7i8in- 7anu4acturin- +roc)ss)s by synchroni8in- th) 7at)ria,s @ith
+roduction r)quir)7)nts. MRP II inc,ud)d ar)as such as sho+ 4,oor and distribution 7ana-)7)nt, +roC)ct 7ana-)7)nt, 4inanc), hu7an r)sourc) and )n-in))rin-. 6RP syst)7s 4irst a++)ar)d in th) ,at) !"&$s and th) b)-innin- o4 th) !""$s @ith th) +o@)r o4 )nt)r+ris)5@id) int)r54unctiona, coordination and int)-ration. Bas)d on th) t)chno,o-ica, 4oundations o4 MRP and MRP II, 6RP syst)7s int)-rat) busin)ss +roc)ss)s inc,udin- 7anu4acturin-, distribution, accountin-, 4inancia,, hu7an r)sourc) 7ana-)7)nt, +roC)ct 7ana-)7)nt, inv)ntory 7ana-)7)nt, s)rvic) and 7aint)nanc), and trans+ortation, +rovidin- acc)ssibi,ity, visibi,ity and consist)ncy across th) )nt)r+ris). Durin- th) !""$s 6RP v)ndors add)d 7or) 7odu,)s and 4unctions as Radd5onsS to th) cor) 7odu,)s -ivin- birth to th) R)(t)nd)d 6RPs.S 3h)s) 6RP )(t)nsions inc,ud) advanc)d +,annin- and sch)du,in- 0APS2, )5busin)ss so,utions such as custo7)r r),ationshi+ 7ana-)7)nt 0<RM2 and su++,y chain 7ana-)7)nt 0S<M2. Ai-ur) / su77ari8)s th) historica, )v)nts r),at)d @ith 6RP.
-17-
+igure 9: 6RP )vo,ution
ERP SYSTEMS AND ORGANIZATIONS

It is -)n)ra,,y a 7is,)adin- +)rc)+tion that i7+,)7)ntin- an 6RP syst)7 @i,, i7+rov) or-ani8ationsK 4unctiona,iti)s ov)rni-ht. 3h) hi-h )(+)ctation o4 achi)vin- a,,5round cost savin-s and s)rvic) i7+rov)7)nts is v)ry 7uch d)+)nd)nt on ho@ -ood th) chos)n 6RP syst)7 4its to th) or-ani8ationa, 4unctiona,iti)s and ho@ @),, th) tai,orin- and con4i-uration +roc)ss o4 th) syst)7 7atch)d @ith th) busin)ss cu,tur), strat)-y and structur) o4 th) or-ani8ation. :v)ra,, an 6RP syst)7 is )(+)ct)d to i7+rov) both backbon) and 4ront5)nd 4unctions si7u,tan)ous,y. :r-ani8ations choos) and d)+,oy 6RP syst)7s 4or 7any tan-ib,) and intan-ib,) b)n)4its and strat)-ic r)asons. In 7any cas)s th) ca,cu,ation o4 r)turn on inv)st7)nt 0R:I2 is @)i-ht)d a-ainst th) 7any intan-ib,) and strat)-ic b)n)4its. 3h) b)n)4its that an industry standard 6RP syst)7 7ay brin- to or-ani8ations ar) sho@n in 3ab,) !. 3o r)a+ th) b)n)4its o4 6RP syst)7s, ho@)v)r, or-ani8ations n))d to ov)r5 co7) c)rtain +rob,)7s and disadvanta-)s, @hich ar) ,ist)d in 3ab,) /.
Table ;: &"!antages of ERP s(ste's -hat benefit R),iab,) in4or7ation acc)ss Avoid data and o+)rations r)dundancy D),iv)ry and cyc,) ti7) r)duction <ost r)duction 6asy ada+tabi,ity Ho, <o77on DBMS, consist)nt and accurat) data, i7+rov)d r)+orts. Modu,)s acc)ss sa7) data 4ro7 th) c)ntra, databas), avoids 7u,ti+,) data in+ut and u+dat) o+)rations. Mini7i8)s r)tri)vin- and r)+ortin- d),ays. 3i7) savin-s, i7+rov)d contro, by )nt)r+ris)5 @id) ana,ysis o4 or-ani8ationa, d)cisions. <han-)s in busin)ss +roc)ss)s )asy to ada+t
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o+tions 4or Rb)st o4 br))ds,S ,on-5t)r7 co77itt)d su++ort. 6RP syst)7 7ay hav) too 7any 4)atur)s and 7odu,)s so th) us)r n))ds to consid)r car)4u,,y and i7+,)7)nt th) n))d4u, on,y. Look 4or v)ndor inv)st7)nt in R;D, ,on-t)r7 co77it7)nt to +roduct and s)rvic)s, consid)r Int)rn)t5)nab,)d syst)7s. <onsid)r 7idd,)5@ar) and )(t)nd)d 7odu,)s S<M.
Table ;: &"!antages of ERP s(ste's -hat benefit
A)atur)s and co7+,)(ity
Sca,abi,ity and -,oba, outr)ach
I7+rov)d sca,abi,ity 6(t)nd)d 6RP ca+abi,ity I7+rov)d 7aint)nanc) It @as )sti7at)d that th) s+)ndin- on 6RP syst)7s in !""& @as about >ST!% bi,,ion *,oba, outr)ach 4o,,o@in- annua, -ro@th rat)s ran-in- 4ro7 #$U to 1$U. 65<o77)rc), )5busin)ss <o7+ani)s a,so s+)nd a 7u,ti+,) o4 ,ic)nsin- costs on s)rvic)s r),at)d to Table 9: isa"!antages of ERP and s(ste's i7+,)7)ntation 7aint)nanc) o4 th) so4t@ar). 3h) @or,d@id) ,ic)ns) and isa"!antage 7aint)nanc) r)v)nu) 4or 6RP syst)7s @as >ST/!.1 bi,,ion 3i7)5consu7inin /$$$, @hich r)+r)s)nt)d a -ro@th o4 !#.!U 4ro7 th) !""" 7ark)t va,u) o4 T>S!" bi,,ion 0Broatch, /$$!2. 3h) 6(+)nsiv) continu)d -ro@th o4 th) 6RP syst)7s 7ark)t is attribut)d to th) 4act that th) v)ndors ar) addin- a++,ications such <on4or7ity o4 th) as su++,y chain 7ana-)7)nt, custo7)r r),ationshi+ 7odu,)s 7ana-)7)nt and th) int)-ration o4 Int)rn)t5 )nab,)d a++,ications 4or )5 busin)ss. =)ndor d)+)nd)nc)
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s)rvic)s 4i),ds, r)a,i8)d th) ,i7itations o4 th) o,d ,)-acy Mor) than '$U o4 in4or7ation syst)7s us)d in th) Aortun) !$$$ ,ar-) )nt)r+ris)s o4 th) co7+ani)s hav) !"%$s and !"&$s. So7) o4 insta,,)d or ar) in th)s) o,d syst)7s @)r) d)v),o+)d in5hous) @hi,) th) +roc)ss o4 oth)rs @)r) d)v),o+)d by i7+,)7)ntindi44)r)nt v)ndors usin+acka-)d 6RP s)v)ra, di44)r)nt databas) syst)7s to 7ana-)7)nt syst)7s, su++ort th)ir ,an-ua-)s and +acka-)s, back5)nd busin)ss activiti)s cr)atin- is,ands o4 nonco7+atib,) so,utions un4it 0?ra4t, /$$!2. 3h)s) +acka-)s 4or s)a7,)ss data 4,o@ i7+,)7)nt)d by b)t@))n th)7. It @as th) Aortun) !$$$ di44icu,t to incr)as) th) ca+acity o4 such syst)7s or co7+ani)s run @),, ov)r th) I3 th) us)rs @)r) unab,) to bud-)ts 4or 7ost u+-rad) th)7 @ith th) or-ani8ationKs busin)ss SM6s. 6RP chan-)s, strat)-ic -oa,s and v)ndors ar) n)@ in4or7ation tar-)tin- this t)chno,o-i)s. unta++)d SM6 7ark)t @ith An 6RP syst)7 is r)quir)d to su++os)d,y hav) th) 4o,,o@insca,)d5back syst)7s suitab,) charact)ristics 4or s7a,,)r 4ir7s by o44)rinsi7+,), ch)a+)r 1 Modu,ar d)si-n and +r)5 co7+risin7any con4i-ur)d )asy5 distinct busin)ss to5insta,, 7odu,)s such as so,utions @ithin 4inancia,, bud-)t and ti7) 7anu4acturin-, constraints. Aor accountin-, so7) v)ndors distribution, )tc. this 7ay ,)ad to o44)rin- c)ntra,,y 2 >s) c)ntra,i8)d co77on databas) 7ana-)7)nt 7ana-)d Int)rn)t5)nab,)d syst)7 0DBMS2 6RP5syst)75 bas)d s)rvic)s 4or 3 3h) 7odu,)s ar) int)-rat)d and SM6s to acc)ss +rovid) and us) anyti7) s)a7,)ss data 4ro7 any@h)r). 4,o@ a7on- th) 7odu,)s, ERP incr)asino+)rationa, SYSTEMS trans+ar)ncy ARCHITECT throu-h URE standard int)r4ac)s 6RP v)ndors, 4 3h)y ar) -)n)ra,,y 7ost,y co7+,)( syst)7s invo,vin)(+)ri)nc)d hi-h cost 4ro7 th) MRP and 4inancia, 5 3h)y ar) 4,)(ib,) and o44)r so4t@ar)
b)st busin)ss +ractic)s
batch ca+abi,iti)s
+roc)ssin-
6 3h)y
8 3h)y ar) or soon th)y @i,,

b) Int)rn)t5)nab,)d Di44)r)nt 6RP v)ndors +rovid) 6RP syst)7s @ith so7) d)-r)) o4 s+)cia,ty but th) cor) 7odu,)s ar) a,7ost th) sa7) 4or a,, o4 th)7. So7) o4 th) cor) 6RP 7odu,)s 4ound in th) succ)ss4u, 6RP syst)7s ar) th) 4o,,o@in-
r)quir) ti7)5 consu 7intai,orin - and con4i-u ration s)tu+s 4or int)-ra tin@ith th) co7+a nyKs busin) ss 4unctio ns
1 Accountin- 7ana-)7)nt 2 Ainancia, 7ana-)7)nt 3 Manu4acturin7ana-)7)nt
4 Production 7ana-)7)nt
7ana-)7)nt ; 7ana-)7)nt
7 3h) 7odu,)s 5 3rans+ortation

@ork in r)a, ti7) @ith on,in) and
6 Sa,)s
distribution
-20-
1 Hu7an r)sourc)s 7ana-)7)nt 2 Su++,y chain 7ana-)7)nt 3 <usto7)r r),ationshi+ 7ana-)7)nt 4 65Busin)ss
3h) 7odu,)s o4 an 6RP syst)7 can )ith)r @ork as stand5a,on) units or s)v)ra, 7odu,)s can b) co7bin)d to-)th)r to 4or7 an int)-rat)d syst)7. 3h) syst)7s ar) usua,,y d)si-n)d to o+)rat) und)r s)v)ra, o+)ratin- +,at4or7s such as >NID, MS Findo@s N3, Findo@s /$$$, IBM AID, and HP5>D syst)7s. SAP A*, th) ,ar-)st 6RP v)ndor, +rovid)s a nu7b)r o4 7odu,)s @ith its 4a7ous RI# 6RP syst)7, @hich ar) sho@n in 3ab,) #. N)@ 7odu,)s ar) introduc)d by SAP and oth)r v)ndors in r)s+ons) to th) 7ark)t and t)chno,o-ica, d)7and such as th) Int)rn)t t)chno,o-y. Table =: 4o'e of the 'o"ules of 4&P>s R?= +inancial &ccounting +< Controlling CO &sset $anage'ent &$
ProC)ct Syst)7
PS
Fork4,o@
FA
Industry So,utions
IS
Hu7an R)sourc)s
HR
P,ant Maint)nanc)
PM
Lua,ity Mana-)7)nt
LM
Production P,annin-
PP
Mat)ria,s Mana-)7)nt
MM
Sa,)s ; Distribution
SD
Inv)st7)nt Mana-)7)nt
IM
6nt)r+ris) <ontro,,in-
6<
3r)asury
3R
Modu,)s o4 Int)rn)t v)rsion '(4 P%CO$ 7ySAP Su++,y <hain M-7t. 7ySAP <usto7)r R),ationshi+ M-7t. 7ySAP Ainancia,s 7ySAP Product Li4)cyc,) M-7t. 7ySAP Busin)ss Int),,i-)nc) 7ySAP Mobi,) Busin)ss 7ySAP Hu7an R)sourc)s 7ySAP Mark)t+,ac) by SAPMark)ts 7ySAP Host)d So,utions 7ySAP 3)chno,o-y
6nt)r+ris) syst)7s )7+,oy thin c,i)ntIs)rv)r 0<IS2 t)chno,o-y or c,i)ntI 4at s)rv)r 0<IAS2 archit)ctur), cr)atin- a d)c)ntra,i8)d co7+utin- )nviron7)nt. In a <IS syst)7 a nu7b)r o4 c,i)nt d)vic)s o+)rat)d by )nd us)rs such as d)skto+ P<s r)qu)st s)rvic)s
4ro7 a++,ication s)rv)rs, @hich in turn -)t th) r)qu)st)d s)rvic)5r),at)d in4or7ation 4ro7 th) databas) s)rv)rs. 3h) r)qu)sts 7ay b) si7+,) data 4i,)s, data va,u)s, co77unication s)rvic)s, transaction +roc)ssin- or 7ast)r 4i,) u+dat)s. 3h) -)n)ra, +ractic) is to hav) thr))5ti)r archit)ctur) such as in Ai-ur) #. In this thr))5ti)r syst)7 th) us)r int)r4ac) runs on th) c,i)nt. 3o run 6RP syst)7s r),ativ),y +o@)r4u, P<s 0c,i)nts2 and +o@)r4u, s)rv)rs ar) r)quir)d @h)r) 7ost o4 th) hundr)ds o4 thousands o4 o+)rations ar) +)r4or7)d. 3h) c,i)ntIs)rv)r syst)7 4unctions ar) +)r4or7)d 4o,,o@inthr)) ,ay)rs o4 ,o-ic
-21TEAM FLY
1 Presentation La(er: *ra+hica, us)r int)r4ac) 0*>I2 or bro@s)r 4or data

)ntry or acc)ssinsyst)7 4unctions
2 &pplication La(er: Busin)ss ru,)s, 4unctions, ,o-ic, and +ro-ra7s actin- on

data r)c)iv)dItrans4)rr)d 4ro7Ito th) databas) s)rv)rs
atabase La(er: Mana-)7)nt o4 th) or-ani8ationKs o+)rationa, or transactiona, data inc,udin- 7)tadataN 7ost,y )7+,oys industry standard RDBMS @ith structur)d qu)ry ,an-ua-) 0SLL2 +rovisions
+igure =: 3hr))5ti)r 6RP syst)7s archit)ctur) 3his ,o-ica, arran-)7)nt h),+s th) 6RP us)r int)r4ac) to run on th) c,i)nts, th) +roc)ssin- 7odu,)s to run on th) 7idd,)5ti)r a++,ication s)rv)rs, and th) databas) syst)7 to run on th) databas) s)rv)rs.
COMMERCIAL ERP SYSTEMS

3h) 4iv) do7inatin- 6RP so4t@ar) su++,i)rs ar) SAP, :rac,), P)o+,)So4t, Baan and J.D. 6d@ards. 3o-)th)r th)y contro, 7or) than '$U o4 th) 7u,ti5 bi,,ion do,,ar -,oba, 7ark)t.
6ach v)ndor, du) to historic r)asons, has a s+)cia,ty in on) +articu,ar 7odu,) ar)a such as Baan in 7anu4acturin-, P)o+,)So4t in hu7an r)sourc)s 7ana-)7)nt, SAP in ,o-istics and :rac,) in 4inancia,s. 3h)r) ar) a,so about 1$ )stab,ish)d and a 4)@ 7or) n)@,y )7)r-ins7a,,)r and 7idsi8) 6RP v)ndors inc,udin- third5+arty d)v),o+)rs co7+)tin- 4or th) 6RP 7ark)t. 3h) r)su,t is sti44 co7+)tition and 4)atur)5ov)r,a++in- +roducts di44icu,t to di44)r)ntiat). Du) to k))n co7+)tition 4or contro, o4 th) ,ucrativ) 6RP 7ark)t shar), th) v)ndors ar) continuous,y u+datin- th)ir +roducts and addin- n)@
-22-
t)chno,o-y5 bas)d 4)atur)s. Lon-5t)r7 vision, co77it7)nt to s)rvic) and su++ort, 7odu,) 4)atur)s, s+)cia,ty, )(+)ri)nc) and 4inancia, str)n-th 4or R;D ar) consid)r)d th) 7aCor v)ndor qua,iti)s 4or +roduct s),)ction and turnk)y i7+,)7)ntatio n. In th) 4o,,o@ins)ctions @) +rovid) bri)4 +ro4i,)s o4 th)s) 4iv) 6RP -iants. 4&P &G@ +lagship Pro"ucts R/3, mySAP.COM
!"%" usin- a 7ain4ra7)5bas)d c)ntra,i8)d databas) that @as th)n r)d)si-n)d as c,i)ntIs)rv)r so4t@ar) RI# in !""/. Syst)7 RI# @as a br)akthrou-h and by !""" SAP A* b)ca7) th) third ,ar-)st so4t@ar) v)ndor in th) @or,d and th) ,ar-)st in th) 6RP s)ctor @ith a 7ark)t shar) o4 about #'U s)rvin- ov)r !%,$$$ custo7)rs in ov)r !$$ countri)s. In !""" SAP A* )(t)nd)d th) 6RP 4unctions by addin- <RM, S<M, sa,)s54orc) auto7ation and data @ar)housin-. SAP has a,so inv)st)d si-ni4icant,y in its R;D s)ctor @ith th) r)su,t o4 n)@)r v)rsions o4 RI# #.!, G.$, G.' inc,udin- Int)rn)t 4unctiona,iti)s and oth)r )nhanc)7)nts. SAPKs Int)rn)t5 )nab,)d 6RP so,utions ar) +rovid)d by th) r)c)nt,y ,aunch)d 6RP +roduct ca,,)d 7ySAP.<:M. SAP has th) broad)st 6RP 4unctiona,ity, ca+acity to s+)nd si-ni4icant,y on R;D, stron- industry5 4ocus)d so,utions and ,on-5 t)r7 vision. Oracle Corporation@+lagship Pro"uct Orac ! A"" #ca$#%&'
:rac,) 0:rac,), /$$!2, 4ound)d in !"%% in th) >SA, is b)st5 SAP A* kno@n 4or its databas) so4t@ar) 0RSyst)7), and r),at)d a++,ications and is An@)ndun-)n, und Produkt) in th) s)cond ,ar-)st so4t@ar) Dat)nv)rarb)itun co7+any in th) @or,d a4t)r -S2, or Syst)7s, Microso4t. :rac,)Ks )nt)r+ris) A++,ications and so4t@ar) a++,ications start)d to Products in Data @ork @ith its databas) in !"&%. Proc)ssin-, @as It accounts 4or T/.1 bi,,ion out o4 th) co7+anyKs T".# bi,,ion in start)d by 4iv) !""", @hich +,ac)s :rac,) 4or7)r IBM s)cond to SAP in th) )nt)r+ris) )n-in))rs in *)r7any in !"%/ syst)7s cat)-ory @ith ov)r 1,$$$ custo7)rs in !G$ 4or +roducincountri)s. :rac,)s 6RP syst)7 int)-rat)d is kno@n as :rac,) A++,ications, busin)ss havin- 7or) than 1$ di44)r)nt a++,ication so4t@ar) 4or th) 7odu,)s in si( 7aCor cat)-ori)s 4inanc), accounts 7anu4acturin)nt)r+ris) 0SAP, +ayab,), hu7an r)sourc)s, 7anu4acturin-, su++,y chain, /$$!2. Its 4irst 6RP +roduct, RI/, +roC)cts and 4ront o44ic). :rac,) @as ,aunch)d in has oth)r stron- +roducts in th) so4t@ar) 4i),d inc,udin-
DBMS, data co77)rc) and Int)rn)t5bas)d @ar)housin-, co77)rc) ar)as. :rac,)Ks @ork 4,o@, Int)rn)t in4rastructur) is syst)7s cr)at)d around t@o +o@)r4u, ad7inistration, +roducts :rac,)"i Databas) a++,ication and :rac,)"i A++,ication d)v),o+7)nt S)rv)r. Anoth)r si-ni4icant too,s 0APIs2, and 4)atur) o4 :rac,) is its :SBS, consu,tinor :rac,) S7a,, Busin)ss Suit) s)rvic)s. A @hich +rovid)s consist)nt notab,) 4)atur) o4 4inancia,s, +ayro,,, inv)ntory :rac,) is that it is contro,, ord)r )ntry, +urchas) both a co7+)titor ord)rs, and <RM 4unctiona,ityB and a +artn)r to a,, d),iv)r)d as a F)b s)rvic). so7) o4 th) :rac,) a,so o44)rs an )asy5to5 industry ,)ad)rs activat) F)b +r)s)nc) that in th) 6RP 7ark)t h),+s co7+ani)s to s),, th)ir such as SAP, Baan -oods via th) Int)rn)t. and P)o+,)So4t b)caus) o4 th) People4oft <nc%@+lagship us) o4 :rac,)Ks Pro"uct P!%" !S%($) DBMS in th)ir 6RP P)o+,)So4t is on) o4 th) syst)7s. n)@)st 6RP so4t@ar) 4ir7s :rac,) has start)d in !"&% in P,)asanton, int)-rat)d its <a,i4ornia, @ith s+)cia,i8ation 6RP so,utions in hu7an r)sourc) @ith th) Int)rn)t 7ana-)7)nt and 4inancia, and has s)rvic)s 7odu,)s. P)o+,)So4t introduc)d quick,y 7ana-)d to o44)r s)v)ra, oth)r cor+orat) 4unctions and a++,ications in attain)d a th) ),)ctronic
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+,at4or7 to o44)r sca,abi,ity and )as) o4 us) 4or a,, us)rs. P)o+,)So4t & r)quir)s no c,i)nt r)v)nu) o4 T#/ 7i,,ion in !""/. so4t@ar) oth)r than a standard F)b bro@s)r, -ivin- you th) 6nt)r+ris) abi,ity to s)cur),y run your so,utions 4ro7 P)o+,)So4t inc,ud)busin)ss anyti7), any@h)r)S 0P)o+,)So4t, /$$!2. R:ur 7odu,)s 4or )Busin)ss a++,ications and 7anu4acturin-, consu,tin- s)rvic)s )nab,) tru) 7at)ria,s -,oba, o+)rationsB7ana-in7ana-)7)nt, 7u,ti+,) curr)nci)s, ,an-ua-)s, distribution, 4inanc), hu7an and busin)ss +roc)ss)s 4or 7or) than G,G$$ or-ani8ations r)sourc)s and in !$" countri)sS 0P)o+,)So4t, su++,y chain +,annin-. SAP A* /$$!2. P)o+,)So4t @ith about and :rac,)B@ith !$U 7ark)t shar), is th) third ,ar-)st 6RP v)ndor a4t)r SAP ,on-)r A* and :rac,). )(+)ri)nc),
stron-)r 4inancia, The /aan Co'pan(@+lagship bas) and Pro"uct *aa&ERP @or,d@id) +r)s)nc)Bar) th) 7ain co7+)titors Aound)d in !"%& in 3h) N)th)r,ands, Baan 0Baan, to P)o+,)So4t. Many custo7)rs /$$!2 start)d @ith )(+)rtis) in so4t@ar) 4or th) 7anu4acturinco77)nt that P)o+,)So4t has a industry and by !""% c,ai7)d an 6RP 7ark)t shar) o4 cu,tur) o4 co,,aboration @ith rou-h,y 1U. BannKs r)v)nu) in custo7)rs, @hich !""& @as rou-h,y T%1$ 7i,,ion and @hi,) 4acin- a s,i-ht 7ak)s it 7or) s,o@do@n in !""" start)d 4,)(ib,) than its co7+)titors. :n) -ro@in- a-ain in /$$! @ith o4 th) str)n-ths sa,)s u+ !/U at V%,/#!7i,,ion o4 P)o+,)So4t is and o+)ratin- +ro4it o4 V"/' th) r)co-nition by 7i,,ion. Baan has 7or) than its custo7)rs that !1,$$$ custo7)r sit)s a,, ov)r it is 4,)(ib,) and th) @or,d and 7or) than #,$$$ co,,aborativ). 3h) )7+,oy))s. Baan b),i)v)s that Rth) Int)rn)t is th) u,ti7at) 4,a-shi+ )nab,)rS and RInt)rn)t a++,ication P)o+,)So4t& @ith t)chno,o-i)s h),+ co7+ani)s b)co7) ord)r5driv)n and scor)s o4 a++,ications @as custo7)r4ocus)d by )nab,inco,,aboration across th) Wva,u) d)v),o+)d by P)o+,)So4t @ith chain.K Su++,i)rs, distributors, an )(+)nditur) o4 7anu4actur)rs and custo7)rs T1$$ 7i,,ion and can @ork to-)th)r to d),iv)r /,$$$ d)v),o+)rs th) ri-ht +roduct at th) ri-ht ov)r / y)ars as a +ric).S 6RP so,ution ar)as that Baan cov)rs inc,ud) 4inanc), +ur) Int)rn)t5 +rocur)7)nt, 7anu4acturin-, bas)d distribution, int)-ration and co,,aborativ) i7+,)7)ntation, +,annin-, )nt)r+ris) sa,)s, s)rvic) and syst)7. R:ur 7aint)nanc), busin)ss +orta,s, r)vo,utionary co,,aborativ) co77)rc) and )Busin)ss busin)ss int),,i-)nc). BannKs +,at4or7 is th) 4,a-shi+ +roduct is Baan6RP 4irst o+)n DML 04or7)r,y ca,,)d 3riton, th)n
Baan I=2, Mc=an)y2 @ith ,on- )(+)ri)nc) ,aunch)d in o4 su++,yin- so4t@ar) 4or th) !""&. :n) ASIG$$ 7ark)t. J.D. 6d@ardsK innovativ) 4,a-shi+ 6RP +roduct ca,,)d +roduct 4ro7 :n)For,d is Rca+ab,) o4 Baan is th) runninon 7u,ti+,) +,at4or7s :r-@ar) too, that and @ith 7u,ti+,) databas)s, ... can cut XandY r)vo,utioni8)s )nt)r+ris) i7+,)7)ntation so4t@ar) by ,ib)ratin- us)rs cost si-ni4icant,y 4ro7 in4,)(ib,), static by auto7atica,,y t)chno,o-i)sS 0JD 6d@ards, con4i-urinth) /$$!2. 3h) +roduct inc,ud)s )nt)r+ris) 7odu,)s 4or 4inanc), so4t@ar). BaanKs 7anu4acturin-, 6RP so4t@ar) is distributionI,o-istics and b)st kno@n in th) hu7an r)sourc)s, qua,ity a)ros+ac), 7ana-)7)nt, 7aint)nanc) auto7otiv), 7ana-)7)nt, data d)4)nc), and @ar)housin-, custo7)r su++ort ),)ctronics and a4t)r5sa,)s s)rvic). J.D. industri)s. 6d@ardsK r)v)nu) Cu7+)d to T"GG 7i,,ion in !""" 4ro7 T!/$ J% % E",ar"s & 7i,,ion in!""/, havin- 7or) than 1,$$$ custo7)rs in ov)r Co%@+lagship !$$ countri)s. 3h) :n)For,d Pro"uct syst)7 is consid)r)d to b) O&!W%r + 7or) 4,)(ib,) than si7i,ar J.D. 6d@ards @as co7+)tin- +roducts and @ithin 4ound)d in !"%% th) r)ach o4 s7a,,)r )nt)r+ris)s. J.D. 6d@ardsK in D)nv)r Int)rn)t5)(t)nd)d v)rsion o4 0co4ound)d by Jack 3ho7+son, :n)For,d @as ,aunch)d an *r)-ory and r)c)nt,y as :n)For,d D) 0RD)S stands 4or R)(t)nd)d <. E",ar" )nt)r+ris)S2.
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E,TENDED ERP
3h) +ro,i4)ration o4 th) Int)rn)t has sho@n tr)7)ndous i7+act on )v)ry as+)ct o4 th) I3 s)ctor inc,udin- 6RP syst)7s b)co7in- 7or) and 7or) RInt)rn)t5 )nab,)dS 0La@ton, /$$$2. 3his )nviron7)nt o4 acc)ssinsyst)7s r)sourc)s 4ro7 any@h)r) anyti7) has h),+)d 6RP v)ndors )(t)nd th)ir ,)-acy 6RP syst)7s to int)-rat) @ith n)@)r )(t)rna, busin)ss 7odu,)s such as su++,y chain 7ana-)7)nt, custo7)r r),ationshi+ 7ana-)7)nt, sa,)s 4orc) auto7ation 0SAA2, advanc)d +,annin- and sch)du,in0APS2, busin)ss int),,i-)nc) 0BI2, and )5 busin)ss ca+abi,iti)s. In 4act 6RP is b)co7in- th) )5busin)ss backbon) 4or or-ani8ations doin- on,in) busin)ss
transactions ov)r th) Int)rn)t. Int)rn)t5bas)d so,utions ar) d)stin)d to i7+rov) custo7)r satis4action, incr)as) 7ark)tin- and sa,)s o++ortuniti)s, )(+and distribution chann),s, and +rovid) 7or) cost5)44)ctiv) bi,,in- and +ay7)nt 7)thods. 3h) )(t)nsion to S<M and <RM )nab,)s )44)ctiv) tri5 +arty busin)ss r),ationshi+s b)t@))n th) or-ani8ation, su++,i)rs and th) custo7)rs. A su++,y chain 7ana-)7)nt has sub57odu,)s 4or +rocur)7)nt o4 7at)ria,s, trans4or7ation o4 th) 7at)ria,s into +roducts and distribution o4 +roducts to custo7)rs. RSucc)ss4u, su++,y chain 7ana-)7)nt a,,o@s an )nt)r+ris) to antici+at) d)7and and d),iv)r th) ri-ht +roduct to th) ri-ht +,ac) at th) ri-ht ti7) at th) ,o@)st +ossib,) cost to satis4y its custo7)rs. Dra7atic savin-s can b) achi)v)d in inv)ntory r)duction, trans+ortation costs and r)duc)d s+oi,a-) by 7atchin- su++,y @ith actua, d)7andS 0IBM, /$$!2. Fith th) d)+,oy7)nt o4 a <RM, or-ani8ations ar) ab,) to -ath)r kno@,)d-) about th)ir custo7)rs, o+)nino++ortuniti)s to ass)ss custo7)r n))ds, va,u)s and costs throu-hout th) busin)ss ,i4) cyc,) 4or b)tt)r und)rstandin- and inv)st7)nt d)cisions. 3h) sub57odu,)s 4ound in ty+ica, <RM +acka-)s ar) 7ark)tin-, sa,)s, custo7)r s)rvic) and su++ort syst)7s usinInt)rn)t and oth)r acc)ss 4aci,iti)s @ith th) int)ntion o4 incr)asin- custo7)r ,oya,ty throu-h i7+rov)d custo7)r satis4action. 65co77)rc) is th) conduct o4 busin)ss transactions a7onor-ani8ations @ith th) su++ort o4 n)t@ork)d in4or7ation and co77unication t)chno,o-i)s, )s+)cia,,y uti,i8in- Int)rn)t
a++,ications such transactions such as ord)r as th) F)b and +,ac)7)nt, +urchasin-, )5 7ai,, inv)ntory u+dat)s, )7+,oy)) )44)ctiv),y b)n)4its, )tc. to tak) +,ac) r)achin- -,oba, b)t@))n th) custo7)rs, custo7)rs. su++,i)rs and th) )nt)r+ris) Ado+tion o4 )5 bas)d on r),iab,), r),)vant data co77)rc) and )5 and a++,ications instant,y in a busin)ss bord)r5,)ss do7ain. so,utions, )s+)cia,,y busin)ss5to5 3h) ,)-acy 6RP syst)7s busin)ss 0B/B2 d)si-n)d to int)-rat) so,utions, ar) )nt)r+ris) 4unctions @ithin th) s))n by 7any as 4our @a,,s o4 th) )nt)r+ris) th) @av) o4 hav) introduc)d so4t@ar) curr)nt and so,utions @ith a F)b5int)r4ac) 4utur) )(t)nsions )ss)ntia,,y )(t)ndin- to o4 traditiona, 6RP Int)rn)t5)nab,)d <RM, S<M syst)7s o4 7ost and oth)r Int)rn)t5busin)ss s7a,,, 7)diu7 7od),s. 6(a7+,)s o4 such and ,ar-) )(t)nd)d 6RPs ar) avai,ab,) v)ndors. 3h) 4ro7 7ost o4 th) 6RP v)ndors. 4ront5)nd F)b5 3hus SAPKs Int)rn)t5)nab,)d bas)d Int)rn)t5 int)-rat)d 6RP syst)7 ca,,)d busin)ss 7ySAP.<:M 0SAP, /$$!2 is a a++,ications ar) suit) o4 6RP, <RM and oth)r int)-rat)d @ith +roducts that can b) ,ink)d th) back5o44ic) to-)th)r usin- Int)rn)t 6RP5bas)d +orta,s. 3h) conc)+t o4 th) a++,ications, Int)rn)t5)nab,)d )(t)nd)d 6RP )nab,inbusin)ss syst)7 is sho@n in Ai-ur) G.
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+igure A: F)b5)nab,)d )(t)nd)d 6RP syst)7 An )(a7+,) o4 an )(t)nd)d 6RP syst)7 7ay b) :rac,)Ks )5busin)ss suit) o4 6RP syst)7s that conn)cts to <RM and S<M. :rac,)Ks AastAor@ard F)b Stor) 0:rac,), /$$!2 +rovid)s a++,ications 4or )stab,ishin- on,in) stor)s 4or hand,in- transactions and s)rvic)s @ith th) +ossibi,ity o4 ,inkin- into :rac,)Ks 6RP a++,ications. 6RP and )5 co77)rc) a++,ications o4 an )nt)r+ris) can shar) a co77on databas) @ith th) d)+,oy7)nt o4 :rac,) A++,ications !!i 0:rac,), /$$!2 int)-ratin- F)b sit)s @ith 6RP back5o44ic) a++,ications. Baan has int)-rat)d its 6RP, <RM and S<M @ith 7anu4acturin7ana-)7)nt so4t@ar). J.D. 6d@ardsK :n)@or,d 6RP +acka-) is r))n-in))r)d to :n)For,d D) 0RD)S stands 4or R)(t)nd)d )nt)r+ris)S2, @hich )nab,)s th) or-ani8ation to )(t)nd th) )nt)r+ris) b)yond +hysica, @a,,s to co,,aborat) @ith custo7)rs, +artn)rs, and su++,i)rs @ith additiona, too,s 4or busin)ss5to5busin)ss 0B/B2 succ)ss. 3h) S@)dish 6RP v)ndor Int)ntia Int)rnationa, AB 0Int)ntia, /$$!2 has a +roduct suit) ca,,)d Mov)(
that int)-rat)s 6RP, <RM and oth)r 7ana-)7)nt so4t@ar).
SUMMARY AND THE FUTURE

3h) 7aCor industria, in4or7ation syst)7s 7anu4actur)rs that )7)r-)d 4ro7 th) !"&$s and )ar,y !""$s d)4in)d th) history o4 th) d)v),o+7)nt o4 6RP syst)7s. H)nc) th) 7aCor +rovid)rs ar) r)+r)s)ntativ)s o4 c)rtain industri)s as 7uch as co7+)titors in a co77on 7ark)t+,ac). 3o this )(t)nt th)r) ar) sti,, o++ortuniti)s 4or n)@ 6RP v)ndors to )7)r-) 4ro7 industri)s that so 4ar hav) not contribut)d to th) 6RP +h)no7)non. So7) obvious )(a7+,)s ar) th) a)ros+ac) industry, th) 4inanc) industry and th) ,o-istics industry. Ana,ysis o4 th) 7ark)t +)n)tration o4 6RP syst)7s sho@s c,)ar,y that th) curr)nt +,ay)rs hav) to do@nsi8) th)ir +roducts and o44)rin-s to b) attractiv) to SM6s. 3h)r) a++)ars to b) no +ub,ic discussion as to ho@ this @i,, b) achi)v)d and @h)th)r it r)quir)s a si-ni4icant chan-) in so4t@ar) archit)ctur). 3his situation a-ain is an o++ortunity 4or s7a,,)r +,ay)rs to s)i8) th) day and o44)r s7a,,)r syst)7s runninon s7a,,)r hard@ar) +,at4or7s 7or) )44ici)nt,y. 3h)s) innovators @i,, u,ti7at),y tak) th) ,)ad in th) 6RP so4t@ar) 7ark)t as ,ar-) syst)7s @i,, not +roduc) th) continua, inco7) str)a7 that s7a,,, robust, )asy5to5us) syst)7s can achi)v). I7+ortant,y th)s) attribut)s contribut) to a syst)7 b)co7in- ubiquitous in th) sa7) @ay that Microso4t has achi)v)d ubiquity 4or its o+)ratinsyst)7. Autur) succ)ss4u, v)ndors @i,, ca+tur)
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rC)), A. 0!"""2. SAP ,ar-) 7ark)ts o4 I7+,)7)nta tion at s7a,,)r busin)ss)s, @ho *)n)va <h)7ica,, @i,, +rovid) a 7or) consist)nt htt+ II@@@. cob.asu.)du and )ndurininco7) str)a7. I4acIABhattI cas)sI*)n)v a.+d4. P., Shar7a, M. ?. REFERENCE Bin-i, and *od,a, J. ?. 0!"""2. S <ritica, issu)s a44)ctinan 6RP i7+,)7)ntation. Ar7stron-, A. andInformation Systems Management, !'0#2, %5 Ha-),, J., III. 0!""'2. 3h) r)a, !G. Broatch, M. 0/$$!2. Makin- th) va,u) o4 on,in) 6RP conn)ction. co77uniti)s. &arvard Business Computer-orld #e- /ealand, Ju,y. But,)r, M. 0!"""2. <RM "evie@, %G0#2, isnKt 7a-ic bu,,)t 4or custo7)r !#G5!G!. ,oya,ty. Computer-orld, API<S ##0#G2, #G. 0/$$! Dav)n+ort, 3. H. 0!""&2. 2. Puttin- th) )nt)r+ris) into A7)ri th) )nt)r+ris) syst)7. can &arvard Business "evie-, Produ %'0 G2, !/!5!#!. ction Dav)n+ort, 3. H. 0/$$$2. and Mission Critical' "eali%ing the Inv)nt Promise of Enterprise Systems. ory Boston, MA Harvard Busin)ss <ontro Schoo, Pr)ss. , Ho,,and, <. and Soci)t Li-ht, B. 0!"""2. y A critica, succ)ss 0API< 4actors 7od), 4or S2, 6RP htt+ I i7+,)7)ntation. I@@@. IEEE Soft-are, a+ics. MayIJun), #$5 or-. Bakos, Q. 0!""&2. #'. 3h) )7)r-in- ro,) ?a,akota, R. and Robinson, M. 0!"""2. e0Business "oadmap o4 ),)ctronic 7ark)t+,ac)s on for Success. Boston, MA Addison5F)s,)y. th) Int)rn)t. Communications ?ra4t, <. L. 0/$$!2. 6()cutiv) 6RP. of the ACM, htt+ II@@@.orac,).co G!0&2, #15G/ 7Iora7a-I+ro4itI""5 B MayIind)(.ht7,Z h +/"ind.ht7,. a ?u7ar, ?. and =an t Hi,,s-)rsb)r-, J. 0/$$$2. 6RP t )(+)ri)nc)s and )vo,ution. a Communications of the ACM, c G#0G2, /#5/'. h ) La@ton, *. 0/$$$2.
Int)-ratin- 6RP and <RM via th) F)b. S. E1pert. Li, <. 0!"""2. 6RP +acka-)s FhatKs n)(tZ Information Systems Management, !'0#2, #!5#1. Norris, *., Dun,)avy, J.,
Hur,)y, J. R., Ba,,is, D. and Hart,)y, ?. M. 0/$$$2. E0 Business and E"P' Transforming the Enterprise. N)@ Qork John Fi,)y ; Sons. :KL)ary, D. 6. 0/$$$2. Enterprise "esource Planning Systems ' Systems, $ife <yc,), 6,)ctronic <o77)rc), and Risk. >? <a7brid-) >niv)rsity Pr)ss.
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Chapter <<: The $(th of <ntegra tion: & Case 4tu"( of an ERP <'ple' entatio n
OVERVIEW
Ros)o &l!are* >niv)rsity o4 Massachus)tts, >SA
s),)ctin- and i7+,)7)ntin- a n)@ 6RP b)co7) th) 7)diu7 4or 0r)52constructin- or 0r)52constitutin- th) or-ani8ationKs va,u)s. 3h)orists hav) d)scrib)d such activiti)s as a R7yth7akin-S +roc)ss. A cas) study o4 an i7+,)7)ntation at a ,ar-) non+ro4it or-ani8ation is +r)s)nt)d to d)7onstrat) ho@ 7yth57akin- s)rv)d to construct an 6RP syst)7 as an Rint)-rat)dS syst)7 and at th) sa7) ti7) s)rv)d to ),aborat) )(istin- or-ani8ationa, va,u)s. 3h) 7yth 4unction)d as a v)hic,) o4 cons)nsua, or-ani8ationa, r)a,ity, s)rvinto a,i-n th) acquisition o4 an 6RP syst)7 @ith th) or-ani8ationa, va,u)s, th)r)by -arn)rin- @id)s+r)ad su++ort 4or a co7+,)(, )(+)nsiv) and r),ativ),y unkno@n t)chno,o-y.
INTRODUCTION
3h) +urchas) and strat)-ic us) o4 )nt)r+ris) r)sourc) 06RP2 syst)7s by or-ani8ations has <o+yri-ht . /$$/, Id)a *rou+ b))n o44)r)d as th) so,ution to survivin- in th) )7)r-in- R)5 Pub,ishin-. bas)dS )cono7y by both +ractition)rs and r)s)arch)rs 3his r)s)arch a,ik). 6RP syst)7s hav) b))n )(a7in)s th) i7+,)7)ntation h)ra,d)d as th) int)-ratin7)chanis7 4or or-ani8ations, +roc)ss o4 an +ro7isin- )nhanc)d )44ici)ncy )nt)r+ris) and )44)ctiv)n)ss. Q)t, as th) r)sourc) 7)dia has r)c)nt,y r)+ort)d, +,annin- 06RP2 7any co7+ani)s hav) not syst)7 and r)a,i8)d th) +ro7is) o4 this n)@ sho@s that i7+,)7)ntation t)chno,o-y. 3h)r) is no d)arth o4 trad) and +o+u,ar accounts cannot b) vi)@)d so,),y in d)+ictin- troub,)d and o4t)nti7)s 4ai,)d 6RP instru7)nta, i7+,)7)ntations 0D)utsch, t)r7sBthat is, or-ani8ations do !""&N ?norr, !"""N St)d7an, not si7+,y s),)ct /$$$2. In4or7ation syst)7s 0IS2 i7+,)7)ntations in -)n)ra, syst)7s bas)d ar) notorious,y di44icu,tN on in4or7ation r)quir)7)nts so ho@)v)r, 6RP i7+,)7)ntations that +ro+)r R4itS +os) 7or) di44icu,t can b) achi)v)d. t)chno,o-ica, and or-ani8ationa, cha,,)n-)s than traditiona, Inst)ad, this i7+,)7)ntations. Aor instanc), r)s)arch a ty+ica, 6RP contains &,$$$ to su--)sts that th) activiti)s o4 !$,$$$ con4i-uration tab,)s and
&$$ to !,$$$ +roC)ct)d b)t@))n T!1.1 bi,,ion busin)ss 0<o7+ut)r@or,d Bri)4s, !""%2 +roc)ss)s. 6RP to T/G bi,,ion, @ith su--)stions syst)7s r)quir) that this nu7b)r cou,d )asi,y b) 7uch tai,orin- or in4,at)d by a 4actor o4 4iv) custo7i8ation in 0S7ith, !"""2. <,)ar,y, ord)r to con4i-ur) und)rstandin- ho@ an 6RP th) syst)7 to 4it syst)7 is +)rc)iv)d as b)in- a th) or-ani8ationsK 4it and th)r)by acc)+t)d by r)quir)7)nts or-ani8ationa, 7)7b)rs 0Scott ; ?aind,, r)7ains a critica, cha,,)n-) 4or /$$$2. Q)t, both +ractition)rs and d)s+it) th) r)s)arch)rs a,ik). 7ountin*iv)n th) r),ativ) n)@n)ss o4 cha,,)n-)s o4 a 6RP syst)7s, th)r) is a succ)ss4u, 6RP i7+,)7)ntation, d)arth o4 ,it)ratur) co7+ani)s co7+r)h)nsiv),y )(a7inincontinu) to ho@ th)s) syst)7s 4it th) +urchas) and or-ani8ation in @hich th)y insta,, 6RP ar) i7+,)7)nt)d. Ho@)v)r, syst)7s to 4it @) hav) r)c)nt,y b)-un to th)ir s)) th) )7)r-)nc) o4 studi)s or-ani8ations. By )(a7inin- th) cons)rvativ) i7+,)7)ntation o4 6RP )sti7at)s, sa,)s syst)7s. Aor instanc), Scott 4or /$$$ ar) and ?aind, 0/$$$2
-28-
a++roach)s, th) s),)ction o4 hard@ar) and th) us) o4 )(a7in) variab,)s consu,tants. Fhi,) th)s) 4actor studi)s )(a7inin- 6RP that ,)ad to an i7+,)7)ntations hav) yi),d)d i7+rov)d int)r)stin- r)su,ts, 4unctiona,ity i7+,)7)ntation +rob,)7s and )nhanc)7)nt 4ai,ur)s continu) to b) a +roc)ss. 3h)y 4ound that Rs@i4t -ro@in- conc)rn. R3h)r) no@ s))7s to b) an )7)r-intrustS 4ro7 th) cons)nsus that co7+ani)s hav) occu+ationa, 4ai,)d to r)a+ th) si-ni4icant co77unity, b)n)4its that this 7assiv) con4,ict inv)st7)nt in 6RP @arrant)d. r)so,ution, r)ci+rocity, and F) 7ust th)r)4or) ask so7) in4or7a, n)t@orks s)rious qu)stionsS 0S7ith, !""", +. #G2. 3h) r)s)arch h)r) i7+act asks so7) o4 th)s) qu)stions 4unctiona,ity )nhanc)7)nt o4 by )(a7inin- ho@ R4itS b)t@))n an 6RP syst)7. th) 6RP syst)7 and th) In anoth)r study, or-ani8ation is achi)v)d such Ho,,and and Li-ht that succ)ss4u, i7+,)7)ntation can b) achi)v)d. 0!"""2 us) critica, succ)ss 3h) r)s)arch +r)s)nt)d in this 4actors such as cha+t)r inv)sti-at)s th) so4t@ar) con4i-uration and i7+,)7)ntation o4 an 6RP syst)7 as a socia, +roc)ss o4 +roC)ct 7ana-)7)nt to 7yth7akin-. Myths ar) d)4in)d h)r) as dra7atic )(a7in) th)ir narrativ)s o4 )v)nts us)d to in4,u)nc) on )(+,ain th) ori-ins, 4or7u,atini7+,)7)ntation trans4or7ations and u,ti7at) )nds o4 so7)thin-. 3h)y s)rv) strat)-i)s. And 4ina,,y, Hirt and to R)(+,ainS th) @ay in @hich S@anson 0!"""2 activiti)s, @hos) ori-ins ar) sy7bo,ic or +)rha+s conduct an )(+,oratory cas) nonrationa,, ar) ,ink)d to study to )(a7in) s))7in-,y obC)ctiv) and th) 4actors @hich rationa, -oa,s 03o,b)rt, !"&&2. 3his cha+t)r ar-u)s that 7ay in4,u)nc) actua, d)cisions 7yth7akin- +ractic)s contribut) to Ra,i-nin-S th) and outco7)s 6RP so4t@ar) @ith )s+ous)d durin- an 6RP i7+,)7)ntation. or-ani8ationa, va,u)s and obC)ctiv)s, th)r)by achi)vinAactors o4 a 4it @ith th) or-ani8ation. 3h) i7+ortanc) cha+t)r ado+ts an int)r+r)tiv) inc,ud) th) cas)5study as a 7)ans o4 r),ationshi+ studyin- ho@ i7+,)7)ntin- a b)t@))n r)structurin- and n)@ 6RP at th) sa7) ti7) so4t@ar) ado+tion s)rv)d as a v)hic,) 4or ),aboratin- th) or-ani8ationKs and i7+,)7)ntation, va,u)s, th)r)by contributin- to its acc)+tanc) by th) choic) o4 or-ani8ationa, 7)7b)rs. so4t@ar) +acka-), th) +ros 3h) cha+t)r b)-ins @ith a and cons o4 r)vi)@ o4 ,it)ratur) conc)rn)d a,t)rnativ) i7+,)7)ntation @ith t)chno,o-y and
or-ani8ationa, 4it. S)v)ra,
obs)rvations ar) not)d that und)r+in 7any studi)s in th) ar)a o4 i7+,)7)ntation ,it)ratur). 3h) subs)qu)nt s)ction d)v),o+s th) id)a o4 7yth and 7yth7akinas a h)uristic 4or )(a7inin- 6RP i7+,)7)ntations as a socia, +roc)ss. 3his is 4o,,o@)d by a discussion o4 th) r)s)arch 4ra7ino4 th) +roC)ct and a cas) d)scri+tion. 3h) 4indin-s in th) 4o,,o@in- s)ction trac) out ho@ th) 7yth o4 int)-ration @as cr)at)d and sustain)d by 7)7b)rs o4 th) or-ani8ation. 3hrou-h th) cr)ation o4 this 7yth, th) or-ani8ation is ab,) to obtain @id)s+r)ad su++ort 4or th) 6RP and 4it @ith
th) or-ani8ationa, cont)(t. 3h) cha+t)r conc,ud)s @ith a discussion and 4utur) i7+,ications.
INFORMATION SYSTEMS FIT AND RATIONAL CHOICE

3h) id)a o4 or-ani8ationa, 4it o4 in4or7ation syst)7s is a co77on r)s)arch conc)rn 0Iivari, !""/2 @hich has its roots in contin-)ncy th)ory. 3h) conc)+t o4 4it in this r)s)arch +oints to th) id)a that th) obC)ct o4 int)r)stBth) in4or7ation syst)7B7ust 7atch its cont)(t in ord)r to b) )44)ctiv). A conc)rn @ith 4it +oints us to in4or7ation syst)7s i7+,)7)ntation ,it)ratur) @hich 4ocus)s on id)nti4yin- 4actorsB or-ani8ationa, and t)chno,o-ica,B@hich contribut) to )44)ctiv) us) or satis4action @ith th) IS. A r)vi)@ o4 this -ro@in- and vari)d ar)a o4 ,it)ratur) is b)yond th) sco+) o4 this cha+t)r 0c.4. <oo+)r ; E7ud, !""$N Iivari, Hirschh)i7, ; ?,)in, /$$$N ?@on ; E7ud, !"&%2. In -)n)ra,, so7) o4 th) 7or) consist)nt 4actors that hav) b))n 4ound to in4,u)nc)
-29-
+roduc) a r)+r)s)ntation o4 an in4or7ation syst)7 that is tidy, c,)ar5cut and ,o-ica, and t)chno,o-y )(c,ud) oth)r ar)as o4 acc)+tanc) or-ani8ationa, activity. Fh)n inc,ud) to+ consid)r)d, socia, issu)s ar) 7ana-)7)nt s))n as distraction or su++ort, us)rsK co7+,ication in @hat @ou,d attitud)s and r)sistanc) to@ard oth)r@is) hav) b))n strai-ht4or@ard t)chnica, chan-), and +rob,)7s. Put anoth)r @ay, r),ativ) advanta-) o4 IS socia, issu)s o4t)n b)co7) as +)rc)iv)d by r),)-at)d to th) status o4 )(+,anatory 4i()s, as s)condary us)r. R),ativ) advanta-) is th) R+atch)sS on,y a4t)r t)chnica, d)-r)) to @hich a )(+,anations hav) so7)ho@ 4ai,)d. P)o+,) do not 4i-ur) in t)chno,o-y is as socia, a-)nts activ),y +)rc)iv)d as invo,v)d in constructin- th)ir havin- -r)at)r @ork )nviron7)nts 0My)rs, b)n)4its than !""12. oth)r a,t)rnativ)s. In oth)r @ords, th) F) can i,, a44ord to i-nor) th) t)chno,o-y ranks ,)ss tidy or-ani8ationa, issu)s. hi-h)r in +ositiv) 3h) n)-,)ct o4 or-ani8ationa, issu)s has ,on- b))n s))n as a charact)ristics contributor to syst)7 4ai,ur)s than do oth)r +ractic)s, too,s or and succ)ss)s. B)-innin- @ith LucasK 0!"%12 id)nti4ication o4 t)chniqu)s. Ror-ani8ationa, b)havior +rob,)7sS and runninthrou-hout r)s)arch o4 th) *)n)ra,,y +ast d)cad) 0Ahn ; Skud,ark, s+)akin-, th) !""%N Doh)rty ; ?in-, !""&N )(istini7+,)7)ntation 6@usi5M)nsah ; Pr8asnyski, !""!N Hornby )t a,., !""/2, ,it)ratur) has r)s)arch)rs hav) 4ound that h),+)d us d)v),o+ a b)tt)r Rnont)chnica,S issu)s ar) und)rstandin- o4 7aCor contributors to syst)7s 4ai,ur)s. Anoth)r r),at)d IS i7+,)7)ntation str)a7 o4 r)s)arch has r)co-ni8)d th) i7+ortanc) o4 but has 4a,,)n short in +rovidin- an or-ani8ationKs socia, cont)(t a rich +ictur) o4 durin- in4or7ation syst)7s d)v),o+7)nt 0Hirschh)i7 ; th) i7+,)7)ntation N)@7an, !""!N Rob)y ; ,andsca+). RMost Markus, !"&GN Rob)y ; studi)s 4ocus on N)@7an, !""'N Sabh)r@a, ; Rob)y, !""12. And 4ina,,y, s7a,, +i)c)s o4 r)s)arch)rs @orkin- @ithin a th) MIS i7+,)7)ntation 7or) h)r7)n)utic tradition hav) ar-u)d that th) +u88,), @ithout introduction and us) o4 consid)rinin4or7ation syst)7s is a hi-h,y ,ar-)r issu)s,S na7),y, th) ,)ss +o,itica, +roc)ss 0B,oo74i),d ; <oo7bs, !""/N Bro@n, !""&N tan-ib,) socia, <oo7bs, ?ni-hts, ; Fi,,7ott, issu)s 0?@on ; E7ud, !"&%, +. !""/N ?ni-hts ; Murray, !""GN My)rs, !""1N Fa,sha7 ; Han, /#!2. 3h)s) !""#2. r)s)arch too,s
3his cha+t)r as a socia, +roc)ss su--)sts a contribut)s to a 7or) co7+,)t) +ictur) o4 th) -ro@inIS i7+,)7)ntation +roc)ss by 7ov)7)nt o4 )(a7inin- th) +roc)ss by +roc)ss r)s)arch @hich con-ru)nc) @ith on in4or7ation t)chno,o-ica, and t)chno,o-y, @hich or-ani8ationa, 4actors is dra@s 4ro7 a achi)v)d. In th) cas) o4 a 7u,titud) o4 r),ativ),y n)@ 6RP syst)7 a socia,, socia, +roc)ss a++roach a,,o@s +hi,oso+hica,, us to d))+,y )(a7in) th) and +o,itica, +roc)ss by @hich an unkno@n th)ori)s to t)chno,o-y achi)v)s a r),ativ) )(a7in) ho@ advanta-) ov)r an )(istincont)(tua, in4or7ation syst)7, ho@ us)rsK ),)7)nts attitud)s ar) sha+)d and in4,u)nc) and 4or7)d to@ard that t)chno,o-y int)ract @ith and ho@ to+ 7ana-)7)nt in4or7ation 7obi,i8)s su++ort 4or this t)chno,o-i)s in syst)7. In s+)ci4ic, this its cu,tura, and cha+t)r )(a7in)s th) in4,u)nc) institutiona, o4 th) @id)r institutiona, and )nviron7)nt. 3o cu,tura, )nviron7)nt 0Bar,)y, so7) d)-r)), !"&'N :r,iko@ski, !""/2 durinthis a++roach is an 6RP i7+,)7)ntation. 3his not inconsist)nt cha+t)r shi4ts th) conv)ntiona, @ith th) 4indin-s rationa, 4ocus o4 or-ani8ation5 o4 th) 7or) t)chno,o-y r)s)arch to a rationa, 4actors d))+)r socia, cont)(t by bas)d )(a7inin- th) ro,) o4 7yths as a++roach)s. In a h)uristic 4or und)rstandin4act, )(a7inin- th) +roc)ss o4 t)chno,o-ica, an bas)d chan-). i7+,)7)ntation
-30-
MYTHS AND STORIES

:n) th)or)tica, tradition und)r+innin- 7yths in or-ani8ationa, r)s)arch is d)riv)d 4ro7 th) @ork o4 M)y)r and Ro@an 0!"%%2, @ho su--)st that in ord)r to und)rstand and )(+,ain or-ani8ationa, structur)s and +ractic)s, @) 7ust und)rstand rationali%ed myths. 3h) 7yths ar) rationa, in that th)y R)(+,ainS th) @ay in @hich activiti)s, @hos) ori-ins 7ay b) sy7bo,ic or socia,, ar) ,ink)d to a++ro+riat) t)chnica, obC)ctiv)s 03o,b)rt, !"&&, +. !$#2. Si7i,ar,y, 3ric) and B)y)r 0!"&G2 d)4in) a 7yth as Ra dra7atic narrativ) o4 i7a-in)d )v)nts, usua,,y us)d to )(+,ain ori-ins or trans4or7ations o4 so7)thin- [ an unqu)stion)d b),i)4 about th) +ractica, b)n)4its o4 c)rtain t)chniqu)s and b)haviors that is not su++ort)d by d)7onstrat)d 4actsS 0+. '112. 3h) +osition tak)n h)r) r)nd)rs no Cud-7)nt as to th) va,idity o4 7yths. Inst)ad th) 4ocus is on ho@ 7yths and sy7bo,s dir)ct,y sha+) hu7an und)rstandin- and action in an or-ani8ation. Both +)rs+)ctiv)s @ou,d su--)st that 7yths ar) i7+ortant b)caus) th)ir cr)ation and r)+roduction 7ak) th) subC)ctiv) s))7 obC)ctiv) and th) nonrationa, a++)ar rationa,. Myths t)nd to b) co77unicat)d via th) 7)diu7 o4 stori)s or narrativ)s. 3h)s) stori)s ar) both a 4or7 o4 r)+r)s)ntin- )(+)ri)nc) as @),, as a too, o4 +)rsuasion. <o77)ntinon th)ir +)rsuasiv) natur), Mu7by 0!"&%2 d)scrib)s narrativ)s as a R+o,itica,,y 7otivat)d +roduction o4 a c)rtain @ay o4 +)rc)ivin- th) @or,d @hich +rivi,)-)s c)rtain int)r)sts ov)r oth)rsS 0+. !!G2. 3h)y ar) us)d to cr)at) b),i)vab,) )(+,anations 4or th) t),,)rKs actions. In -)n)ra,, 7yths, stori)s or narrativ)s, ar) 7od)s o4 r)+r)s)ntation that ar) s),)ct)d and invok)d by t),,)rs 4or di44)r)nt r)asons and vary in th)ir +o@)r to +)rsuad)N Rth)y 7ak) us car) about a situation to varyin- d)-r))s as th)y +u,, us into th) t),,)rKs +oint o4 vi)@S 0R)iss7an, !""#, +. !&2. 3h)orists a,so ar-u) that stori)s s)rv) to 7ak) s)ns) o4 )quivoca, situations. Fh)n con4ront)d by unc,)ar situations, +)o+,) @i,, a,@ays t),, a story to c,ari4y and )(+,ain. Narrativ)s a,,o@ +artici+ants to brin- ord)r to @hat @ou,d oth)r@is) b) v)ry R7)ssyS situations 0Brun)r, !""$2. BoC) 0!""!2 has 4urth)r ar-u)d that stori)s ar) r)count)d socia,,y to 4or7u,at) r)co-ni8ab,), d)4)nsib,), and s))7in-,y rationa,) co,,)ctiv) accounts that s)rv) as +r)c)d)nt 4or 4utur) action and d)cisions. 3h)orists conc)rn)d @ith or-ani8ations hav) b)-un to us) th) id)a o4 7yths and stori)s to )(+,ain or-ani8ationa, +h)no7)non 0BoC), A)dor, ; Ro@,and, !"&/N Bo,and ; 3)nkasi, !""1N Ai,by ; Fi,,7ott, !"&&N *abri),, !""!N Martin ; M)y)rson, !"&&N F)ick, !""12. As an )(a7+,) o4 this rich and vari)d @ork, Luaid 0!""#2 ar-u)s that a Cob )va,uation syst)7 is a 7yth in that it is bas)d on @id),y h),d b),i)4s that cannot b) obC)ctiv),y t)st)d. Aurth)r, RCob )va,uation is rationa,i8)d b)caus) it tak)s th) 4or7 o4 ru,)s, s+)ci4yin- th) +roc)dur) n)c)ssary to acco7+,ish th) )nd -oa, o4 d)t)r7inin- an int)rna,,y )quitab,) and )(t)rna,,y co7+)titiv) +ay structur) [ Cob )va,uation is )(+r)ss)d in a b),i)4 0id)o,o-y2, an activity 0nor7s and ritua,s2, ,an-ua-) and oth)r sy7bo,ic 4or7s throu-h @hich th) 7)7b)rs o4 an or-ani8ation both cr)at) and sustain vi)@s and i7a-)s about th) va,u) o4 on) Cob ov)r anoth)rS 0+. /#"2.
3his cha+t)r ar-u)s that durin- an 6RP i7+,)7)ntation, 7yths @i,, b) cr)at)d @hich ,ink th) acquisition o4 a n)@ and v)ry unkno@n t)chno,o-y dir)ct,y to rationa, obC)ctiv)s o4 th) or-ani8ation. 3h) +roc)ss o4 7yth5 7akin- its),4 invo,v)s cr)atinth) a++)aranc) o4 an in4or7ation syst)7 as an )44ici)nt too,, y)t this b),i)4 cannot b) obC)ctiv),y t)st)d. In oth)r @ords, th)r) is no )vid)nc) that in 4act th) n)@ 6RP @i,, assist th) or-ani8ation in acco7+,ishin- its )nd r)su,t o4 )44ici)ncy. Strat)-i)s us)d in 7yth7akin- inc,ud) ,an-ua-), ritua,s, and sy7bo,s, a,, o4 @hich contribut) to +roducin- a conc)+tion o4 in4or7ation syst)7s as a rationa, obC)ctiv). Aor instanc), individua,s @i,,
-31TEAM FLY
)n-a-) in c)rtain R+)r4or7anc)sS at 7))tin-s that 7ay s))7 unn)c)ssary or in)44ici)nt. Ho@)v)r, such +)r4or7anc)s +rovid) th) discursiv) s+ac) in @hich +ub,ic su++ort 4or th) t)chno,o-y is d)7onstrat)d and so,icit)d. It is in this discursiv) s+ac) that actors ar) a44ord)d th) o++ortunity to socia,,y construct th) n)@ syst)7 as a t)chnica, n)c)ssity. Such +ractic)s r)nd)r th) d)cision 7or) R,)-iti7at)S and in -)n)ra, contribut) to constructin- a b),i)vab,) 7yth about th) 6RP syst)7. 6RP i7+,)7)ntation as 7yth is d)+ict)d in Ai-ur) !.
+igure ;: 6RP syst)7 i7+,)7)ntation as 7yth As th) 4i-ur) i,,ustrat)s, 7yths ar) th) ,inks b)t@))n sy7bo,ic +ur+os)s and t)chnica, obC)ctiv)s. Aor )(a7+,), th) in4or7ation syst)7 7ay s)rv) th) sy7bo,ic 4unction o4 ,)-iti7atin- or )nhancin- th) r)+utation o4 th) or-ani8ation as a 7od)rn, cuttin- )d-) )nt)r+ris). :r sti,,, it 7i-ht si7+,y 4u,4i,, consu7)rist d)sir)s o4 individua,s to +urchas) th) ,at)st and b)st 4or th) sak) o4 acquirin- it. Q)t, th) +urchas), as an activity, 7ust b) rationa,i8)d such that it is ,ink)d to acco7+,ishin- th) rationa, )nd -oa,s such as 7or) )44ici)nt,y +roc)ssin- in4or7ation. In th) ar)a o4 in4or7ation syst)7s, r)s)arch on 7yths and narrativ)s has r)c)nt,y b)-un to )7)r-). Aor )(a7+,), Bro@n 0!""&2 )(a7in)s th) us) o4 stori)s or narrativ)s that or-ani8ationa, 7)7b)rs +roduc)d to cr)at) 7)anin- and -ain +o,itica, advanta-) durin- an IS i7+,)7)ntation. In anoth)r, Bro@n and Jon)s 0!""&2 )(a7in) a 4ai,)d IS +roC)ct and ty+)s o4 individua, stori)s that )7)r-). Davidson 0!""%2 us)s narrativ) ana,ysis to )(a7in) s)ns)5 7akin- and int)r+r)tation durin- an IS d)v),o+7)nt +roC)ct. Dub) and Rob)y 0!"""2 )(a7in) stori)s as a sy7bo, o4 or-ani8ationa, cu,tur) to -)n)rat) insi-hts into th) co,,)ctiv) int)r+r)tation o4 7ana-)7)nt +ractic)s by co7+)tin- -rou+s durin- a so4t@ar) d)v),o+7)nt +roC)ct. And 4ina,,y Hirschh)i7 and N)@7an 0!""!2 cont)st in4or7ation syst)7s d)v),o+7)nt as a rationa, +roc)ss by usinth) conc)+t o4 7yth to int)r+r)t socia, actions durin- in4or7ation syst)7s d)v),o+7)nt. 3h) r)s)arch h)r) bui,ds on this @ork by s+)ci4ica,,y )(a7inin- an 6RP i7+,)7)ntation as 7yth7akin-.
RESEARCH METHOD
3his r)s)arch @as conduct)d @ithin th) int)r+r)tiv) +)rs+)ctiv). R)c)nt r)s)arch on
in4or7ation syst)7s i7+,)7)ntation has indicat)d an int)r+r)tivist a++roach is 7ost a++ro+riat) 4or th) study o4 this or-ani8ationa, +h)no7)non 0My)rs, !""12. Aro7 an int)r+r)tivist a++roach, th) @or,d is s))n as b)in- 7ad) u+ o4 @ords, ,ab),s and conc)+ts @hich hu7ans us) to construct socia, r)a,ity. 3h)r)4or), int)r+r)tiv) r)s)arch r)quir)s that th) r)s)arch)r b) i77)rs)d in a str)a7 o4 or-ani8ationa, )v)nts 06v)r)d ; Louis, !"&!2 in an inductiv) att)7+t to cr)at) cat)-ori)s, or in this cas) 7yths, that ar) r)vis)d throu-h th) int)-ration o4 data 4ro7 obs)rv)d )(+)ri)nc)s and th) ,an-ua-) us) o4 or-ani8ationa, +artici+ants 0Putna7, !"&#2. 3his i77)rsion -)n)rat)s
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continu)d h)r obs)rvations unti, th) )nd o4 !""&. Rthick d)scri+tionS 0*))rt8, !"%#2 o4 an )7+irica, account @hich @as 4ir7,y -round)d in th)ory 0*,as)r ; Strauss, !"'%N 3urn)r, !"&!2. 3h) data 4or this study @)r) co,,)ct)d by th) r)s)arch)r +ri7ari,y throu-h unstructur)d int)rvi)@s @ith !& 7ana-)rs, a 4)@ s)7i5structur)d int)rvi)@s, +artici+ant obs)rvations at #/ i7+,)7)ntation 7))tin-s ,astin- b)t@))n !5# hours )ach, do8)ns o4 in4or7a, conv)rsations, and a surv)y ad7inist)r)d to /!# +artici+ants. Most o4 th) 7))tin-s @)r) ta+)d. 3h) sa7+,in- 7)thod )7+,oy)d 4or th) int)rvi)@s is d)scrib)d by Marsha,, and Ross7an 0!""12 as ),it) int)rvi)@in-, Ra s+)cia,i8)d cas) o4 int)rvi)@inthat 4ocus)s on a +articu,ar ty+) o4 int)rvi)@))S 0+. "G2. 3h)s) Rindividua,s ar) consid)r)d to b) th) in4,u)ntia,, th) +ro7in)nt, and th) @),,5 in4or7)d +)o+,) in an or-ani8ationS 0+. &#2. 3h) surv)y ad7inist)r)d inc,ud)d d)7o-ra+hic in4or7ation and o+)n5)nd)d qu)stions askin+artici+ants 4ro7 a,, ,)v),s o4 th) or-ani8ation to d)scrib) th) n)@ in4or7ation syst)7 and th) )(istin- ,)-acy syst)7 @hich @as b)in- r)+,ac)d.
3h) data co,,)ction 4or this cas) study b)-an in January !""' and ,ast)d throu-h D)c)7b)r !""&. Durin- th) data co,,)ction +)riod th) r)s)arch)r @as invo,v)d in th) i7+,)7)ntation as assistant to th) <I:. H)r ro,) @as ov)rt in that )v)ryon) kn)@ sh) @as conductinr)s)arch on th) i7+,)7)ntation and @ou,d +roduc) a cas) study 4or th) or-ani8ation. :n s)v)ra, occasions A4t)r transcribin- ta+)s 4ro7 sh) @as ask)d 4or th) int)rvi)@s, qua,itativ) ana,ysis +roc))d)d it)rativ),y. advic) and 3h) r)s)arch)r @as invo,v)d in su--)stions at )v)ry it)ration, a,,o@in- h)r to 7))tin-s sh) b)co7) Rinti7at),y 4a7i,iarS obs)rv)d and 06is)nhardt, !"&"2 @ith th) +rovid)d 4))dback to th) data. 3h) ana,ysis +roc))d)d 4ro7 o+)n codin- to a(ia, <I: on th) i7+,)7)ntation codin- 0Strauss ; <orbin, !""$2. S),)ctiv) codin-, @hich +roC)ct. Durinusua,,y 4o,,o@s a(ia, codin-, did th) su77)r o4 not tak) +,ac) b)caus) a4t)r !""& th) a(ia, codin- th)or)tica, r)s)arch)r +rovid)d a cas)5 saturation @as obtain)d. study @rit)5u+ o4 Accordin- to A,v)sson and th) 6RP s),)ction Sko,db)r- 0/$$$2, @h)n usin-round)d th)ory th) to th) <I: and +roC)ct s+onsor. 7)thodo,o-y can b) 7odi4i)dN 3h) <I: acc)+t)d it is 7or) a qu)stion o4 continua,,y co7+arin- n)@,y th) cas) study. cod)d data in a cat)-ory @ith 3h) r)s)arch)r data +r)vious,y cod)d in th)
sa7) cat)-ory b)t@))n cat)-ori)s to unti, th)or)tica, construct a co7+r)h)nsiv) saturation occurs. story. At this +oint, an ov)rarchin- myth of integration )7)r-)d that :+)n codin- is conn)ct)d th) cat)-ori)s. th) +roc)ss o4 Aurth)r ana,ysis o4 th) data no br)akin- do@n, ,on-)r contribut)d to )(a7inin-, discov)rin- anythin- n)@ co7+arin-, about th) cat)-ory, at @hich conc)+tua,i8in-, +oint th)or)tica, saturation and cat)-ori8in- @as obtain)d. Pr)cautions data. :nc) a,, @)r) tak)n to corroborat) th) th) data @)r) int)r+r)tation 0Mi,)s ; )(a7in)d, th) Hub)r7an, !""G2 throu-h th) conc)+ts @)r) data obtain)d in th) surv)y or-ani8)d by and conv)rsations @ith r)currin- th)7). +artici+ants. 3h) surv)y a,so 3h)s) th)7)s +rovid)d a @indo@ into th) @)r) candidat)s ,an-ua-) us) o4 +artici+ants as 4or a s)t o4 @),, as v)ri4ication o4 oth)r cat)-ori)s, conc)+ts that )7)r-)d in th) @hich ,at)r o+)n codin- o4 data. And ,ink)d a nu7b)r 4ina,,y, docu7)nt ana,ys)s o4 associat)d +rovid)d insi-ht into th) conc)+ts. 3his is 4or7a, r)+r)s)ntation o4 th) kno@n as a(ia, or-ani8ation. 3hat is, th) codin-, @hich 4or7a, docu7)nts +rovid)d r)quir)d that th) add)d in4or7ation on th) r)s)arch)r 7ak) or-ani8ationKs 4or7a, vision conn)ctions and va,u)s.
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CASE DESCRIPTION
3h) or-ani8ation chos)n 4or th) study is a ,ar-) +ub,ic r)s)arch univ)rsity ,ocat)d in th) north)ast)rn >nit)d Stat)s. Its annua, bud-)t )(c))ds T.1 bi,,ion, has )nro,,7)nts o4 /G, $$$, 4acu,ty o4 !,!&G and sta44 o4 a++ro(i7at),y #,'$$. 3h) univ)rsity is +art o4 a 4iv)5 ca7+us syst)7. 6ach ca7+us has a chanc),,or as chi)4 ad7inistrativ) o44ic)r, but a,, r)+ort dir)ct,y to th) univ)rsity syst)7 +r)sid)nt. 3h) +has)s o4 th) i7+,)7)ntation cov)r)d by this study inc,ud) initiation, in4or7ation r)quir)7)nts ana,ysis, r)qu)st 4or +ro+osa,, +ro+osa, )va,uation, and th) s),)ction o4 a n)@ 6RP syst)7. At th) ti7) o4 th) data co,,)ction th) n)@ 6RP @as not in +roduction or in 4u,, t)st 7od). 3h)r)4or), th)r) is ,itt,) in4or7ation on th) actua, 6RP syst)7 sinc) it @as not y)t avai,ab,) 4or th) r)s)arch)r nor th) +artici+ants to )(a7in). 3h) i7+,)7)ntation +roC)ct, @hich @i,, b) ca,,)d th) <IS 0ca7+us in4or7ation syst)72 +roC)ct, @as dir)ct,y und)r th) contro, o4 th) vic) chanc),,or 0and <I:2 o4 th) univ)rsity. In th) 4a,, o4 !""1, b)4or) th) <IS +roC)ct b)-an, univ)rsity ad7inistrators +ub,ic,y id)nti4i)d and tar-)t)d a++ro(i7at),y T1 7i,,ion to 4und th) +urchas) o4 a n)@ in4or7ation syst)7 and r)quir)d hard@ar) @hich @ou,d b) o@n)d and 7aintain)d by th) ca7+us. Aour y)ars ,at)r this a7ount had -ro@n to T// 7i,,ion. 3h) 6RP syst)7 @as to hand,) stud)nt ad7inistration, hu7an r)sourc)s and 4inancia,s. 3h) n)@ syst)7 @as to r)+,ac) th) )(istin- ,)-acy syst)7s @hich had b))n in +,ac) 4or ov)r !1 y)ars. 3h)s) ,)-acy syst)7s consist)d o4 a co7bination o4 custo75bui,t and v)ndor a++,ications @hich had b))n )(t)nsiv),y 7odi4i)d 4or s+)ci4ic univ)rsity 4unctions. 3h) stud)nt r)-istration syst)7 @as bui,t in5hous) usin- a Syst)7 /$$$ hi)rarchica, databas) @ith so7) =SAM 4i,)s. In4or7ation Associat)s, a v)ndor o4 hi-h)r )ducation so4t@ar), +rovid)d a++,ications that hand,)d stud)nt 4inancia, aid, bursar and 4inancia, 4unctions. A,, thr)) a++,ications had b))n discontinu)d and @)r) no@ u+dat)d and 7aintain)d in5 hous). In4or7ation Syst)7s Incor+orat)d +rovid)d th) hu7an r)sourc) a++,ication, @hich @as a,so a discontinu)d a++,ication no@ u+dat)d by in5 hous) sta44. 3h) o+)ratinsyst)7 consist)d o4 M=S 6SA vG.#, <I<S v /.!./, and :SI=S <obo, /.G. A,, a++,ications @)r) ,ocat)d on an IBM #$"$. A voic) r)s+ons) syst)7 +rovid)d by 6P:S @as in us) 4or stud)nt acc)ss to in4or7ation and r)-istration. R)+ortin- too,s inc,ud)d Data Ana,y8)r and SAS. A c)ntra, in4or7ation s)rvic)s unit that r)+ort)d to th) +r)sid)ntKs o44ic) 7aintain)d a,, a++,ications. 3his c)ntra, in4or7ation s)rvic)s unit, kno@n as SAIS 0Stat) Ad7inistrativ) In4or7ation S)rvic)s2, a,so +rovid)d su++ort to a,, oth)r ca7+us)s in th) univ)rsity syst)7. 3h) <IS +roC)ct @as ,)n-thy and co7+,)(, invo,vin- individua,s 4ro7 o44ic)s throu-hout various ,)v),s and d)+art7)nts in th) or-ani8ation. Ai-ur) / i,,ustrat)s ho@ -rou+s, co7+os)d o4 individua,s 4ro7 various o44ic)s, @)r) structur)d to articu,at) th)ir in4or7ation r)quir)7)nts, issu) an RAP and s),)ct a n)@ 6RP. +igure 9: Structur) o4 <IS +roC)ct 3h) <IS +roC)ct @as brok)n into 4our 7aCor +has)s, consistin- o4 in4or7ation -ath)rin-, so4t@ar) )va,uation, s),)ction, and insta,,ation. 3h) in4or7ation -ath)rin- sta-) consist)d o4 a '57onth5,on- r)quir)7)nts ana,ysis +roc)ss. Durin- this +roc)ss, +roC)ct t)a7 7)7b)rs 7a++)d out d)tai,)d in4or7ation +roc)ssin- d)7ands, or busin)ss ru,)s, 4or 7ana-in- stud)nt, 4acu,ty and sta44 in4or7ation. :nc) co7+,)t)d, th) busin)ss r)quir)7)nts docu7)nt @as us)d in th) so4t@ar) )va,uation sta-). A ca,, to so4t@ar)
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syst)7 th) ca7+us )n-a-)d in cr)atin- a 7yth o4 an int)-rat)d syst)7. Aor th) v)ndors @as 7ost +art, int)-ration is us)d issu)d askinin or-ani8ationa, th)ory to th)7 to sub7it +ro+osa,s to 4u,4i,, d)4in) th) ,)v), o4 th) r)quir)7)nts co,,aboration b)t@))n as articu,at)d in s+)cia,i8)d units or individua,s. Air7s d)v),o+ th) busin)ss 4unctiona, s+)cia,ists that t)nd r)quir)7)nts to hav) +att)rns o4 b)havior docu7)nt. Pot)ntia, v)ndors and thou-ht that ar) in tun) @)r) )(+)ct)d to @ith th) s+)ci4ics o4 th)ir Cob r)s+ond @ith bids and trainin-. 3h) di44)r)nt s+)cia,ists 7ay hav) d)tai,in- ho@ con4,ictin- thou-hts and th)ir so4t@ar) @ou,d 7))t th) +att)rns about -)ttin- th) Cob don). Int)-ration, th)n, in4or7ation r)quir)7)nts o4 invo,v)s achi)vin- th) coordination and co,,aboration th) univ)rsity o4 th)s) s+)cia,ists throu-h and a,so d)tai, 7)chanis7s such as @hat hard@ar) co77unication and con4,ict @ou,d b) r)quir)d to hous) r)so,ution 0La@r)nc) ; Lorsch, !"'"N Fa,k)r ; th) n)@ Lorsch, !""'2. As th) data @i,, a++,ication. 3h)s) +ro+osa,s sho@, this d)4inition @as not un,ik) that us)d by th) +rovid)d various or-ani8ationa, univ)rsity sta44 7)7b)rs o4 th) univ)rsity. @ith n))d)d in4or7ation to Int)-ration, it @as b),i)v)d, ass)ss i4 viab,) so4t@ar) )(ist)d. @ou,d b) on) o4 th) 7ost d)sirab,) b)n)4its obtain)d 3h) viab,) candidat)s @)r) 4ro7 +urchasin- and insta,,inth) n)@ 6RP. 3h) 7yth57akinth)n invit)d to th) univ)rsity to +roc)ss s)rv)d to r)nd)r th) n)@, untri)d, uns))n, and -iv) d)7onstrations. )(+)nsiv) syst)7 as a too, by @hich int)-ration @ou,d b) A4t)r th) visits, achi)v)d. But in cr)atin- this and 4urth)r 7yth, th) i7+,)7)ntation 4o,,o@5u+, activiti)s o4 )va,uatin- and univ)rsity sta44 s),)ctin- a n)@ 6RP s)rv)d at id)nti4i)d on) v)ndor @hich @as th) sa7) ti7) to ),aborat) and th)n a@ard)d th) r)construct )(istinor-ani8ationa, va,u)s. contract to S+)ci4ica,,y, th) 7yth o4 +rovid) an 6RP int)-ration @as cr)at)d throu-h syst)7 4or th) d),)-iti7atin- th) )(istinuniv)rsity. in4or7ation syst)7 and its su++ort structur). 3his @as THE MYTH acco7+,ish)d throu-h cr)atina story o4 a R+)r4or7anc) OF crisisS o4 th) )(istinsyst)7. INTEGRATI And 4ina,,y, th) 7yth o4 ON int)-ration is 4urth)r sustain)d by constructin- a narrativ) o4 Durin- th) th) 6RP as int)-rat)d, th)r)by i7+,)7)ntation c,os),y cou+,init to th) o4 th) 6RP or-ani8ationa, va,u) o4
int)-ration. In th) on-oin- con4or7ity to 4o,,o@in- s)ction, institutiona,i8)d +ractic)s data obtain)d 0M)y)r ; Ro@an, !"%%N Scott, 4ro7 r)+orts o4 !"&%2. A +)r4or7anc) crisis t)chnica, and t)nds to )rod) institutiona,i8)d )()cutiv) +ractic)s and cr)at) int)rna, co77itt))s @ho +o,itica, diss)nsus 0:,iv)r, 7)t throu-hout !""/2. 3his is in +art du) to th) ,at) K&$s and th) 4act that +)r4or7anc) )ar,y K"$s, 4ro7 cris)s t)nd to incr)as) th) int)rvi)@s, and +ot)ntia, 4or 4ra-7)ntin4ro7 a surv)y socia,,y shar)d t)7+,at)s 4or ad7inist)r)d to a++ro+riat) or-ani8ationa, a,, us)rs invo,v)d activiti)s and to incr)as) in th) <IS +roC)ct int)rna, con4,ict. In -)n)ra,, ar) )(a7in)d to +)r4or7anc) cris)s t)nd to sho@ ho@ th) contribut) to th) d)t)rioration 7yth o4 o4 cons)nsus a7onint)-ration @as or-ani8ationa, 7)7b)rs. At cr)at)d and th) univ)rsity th) +)r4or7anc) sustain)d. crisis @as occasion)d by a +)rc)iv)d ha+ha8ard )(+ansion o4 th) ca7+us The ,)-acy syst)7 voic)d by th) Perfor'ance n)@ t)chnica, +)rsonn),. Crisis <ons)nsus around th) 7)anin- and @orth o4 or-ani8ationa, +ractic)s is )ss)ntia, 4or 7aintainin3h) or-ani8ationa, arran-)7)nt b)t@))n SAIS and th) univ)rsity @as on) that had b))n )stab,ish)d in th) )ar,y K&$s and @as not s)rious,y cont)st)d unti, th) )ar,y K"$s.
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SAIS, @hich r)+ort)d to th) Pr)sid)ntKs :44ic) and not th) univ)rsity, o@n)d and o+)rat)d th) hard@ar) and +)r4or7)d a,, so4t@ar) 7aint)nanc) and d)v),o+7)nt o4 th) ca7+us in4or7ation syst)7s. 3h) d)+art7)nts o4 th) univ)rsity that r)quir)d co7+utinsu++ort +aid into a co77on +oo, and SAIS @ou,d +rovid) t)chnica, s)rvic)s to thos) o44ic)s. 3h)s) o44ic)s qu)u)d u+ th)ir r)qu)sts 4or n)@ d)v),o+7)nt and th)n SAIS 7ana-)7)nt @ou,d +rioriti8) In -)n)ra,, by th) )ar,y K"$s and assi-n th)7 th) in4or7ation syst)7s to +ro-ra77in- )(+ansion had )vo,v)d into 4our s)+arat) but int)ractinsta44. By th) syst)7s that had b))n )ar,y K"$s th) d)v),o+)d or +urchas)d 4or univ)rsity r)quir)7)nts 4or ad7issions, 4inancia, 7ana-)7)nt, hu7an su++ort had r)sourc)s and stud)nt -ro@n consid)rab,y. Aor )nro,,7)nt and r)-istration. )(a7+,), in !""' 3his co7+,)( suit) o4 int)ractin- syst)7s @as not th) stud)nt synchroni8)d in that so7) had syst)7, on) o4 b))n )nhanc)d ov)r ti7) 4our syst)7s, r)quir)d &.1 A36s @hi,) oth)rs had b))n 4ro8)n 4or +ro-ra77in-, 0i.)., no ,on-)r u+dat)d2 y)ars o+)rations, data +rior. In addition to th) )(+ansion o4 th) ,)-acy ad7inistration and oth)r su++ort syst)7, th) univ)rsity a,so )(+)ri)nc)d a drastic -ro@th s)rvic)s. in 7icroco7+ut)r5bas)d t)chno,o-y and a++,ications. Ho@)v)r, this structura, In th) )ar,y K"$s, th)r) @as a arran-)7)nt b)-an to ru+tur) +ro,i4)ration o4 ,oca, ar)a n)t@orks and +)rsona, in th) 7id5 co7+utinthrou-hout this and !""$s. Fh)n I oth)r univ)rsiti)s 0Ma,an)y ;
int)rvi)@)d thr)) o4 th) 7ana-)rs o4 th) stud)nt ar)a th)y charact)ri8)d th) )(+ansion o4 th) stud)nt syst)7 as b)in- Rad hoc,S Run+,ann)d,S and Runcoordinat)d.S Most o4 th) discussions @ith 7ana-)rs indicat)d that th) in4or7ation syst)7 )(+ansion @as driv)n by +roc)ss chan-)s in th) dis+arat) o44ic)s but th)r) did not s))7 to b) a coordinat)d ov)ra,, strat)-y. In oth)r @ords, it @as a +roc)ss5driv)n a++roach that invo,v)d +i)c)7)a, d)v),o+7)nt o4 n)@ a++,ications and t)chno,o-y to di44)r)nt ad7inistrativ) +roc)ss)s. As on) 7ana-)r stat)d, RF)Kr) -)ttin- tir)d o4 Band5Aid so,utions[no on) kno@s @hat th) +rioriti)s or dir)ction ar)S 0Int)rvi)@, SSRR<, Nov)7b)r, !""12. :th)r us)rs I s+ok) @ith r)+ort)d )ncount)rinconsid)rab,) du+,ication o4 data and 4ound in4or7ation to b) 4ra-7)nt)d across a nu7b)r o4 ad7inistrativ) syst)7s.
A,var)8, !""'2. Fith this +ro,i4)ration ca7) th) +r)s)nc) o4 a n)@ cadr) o4 t)chno,o-ica, +)rsonn),. As 7icroco7+ut)r us) and n)t@orks s+r)ad throu-hout th) ca7+us, d)+art7)nts b)-an to hir) t)chnica, su++ort sta44. A host o4 n)@ +ositions @)r) cr)at)d and 4i,,)d that did not b),on- to th) c)ntra, SAIS or-ani8ation. 3h) n)@ t)chnica, +)rsonn), or-ani8)d co77itt))s to addr)ss th)ir dissatis4action @ith th) 7ain4ra7) ,)-acy syst)7, on @hich a,, th) 7aCor d)+art7)nts r),i)d. 3h)s) co77itt))s issu)d scathinr)+orts that dir)ct,y critici8)d
th) ,)-acy syst)7 and 7ad) stron- +,)as 4or a n)@ in4or7ation syst)7 and su++ort or-ani8ation that @ou,d b) o@n)d and contro,,)d by th) ca7+us. In th) s+rino4 !""', i77)diat),y b)4or) th) <IS +roC)ct @as +ub,ic,y announc)d, a co77itt)) issu)d an I3 strat)-ic +,an. 3h) co77itt)) @as co7+os)d o4 #$ IS s+)cia,ists r)+r)s)ntin- a broad cross5 s)ction o4 th) ca7+us. Ho@)v)r, no 7)7b)r o4 th) SAIS sta44 @as ask)d to +artici+at). 3h) strat)-ic +,an stat)d Ad7inistrativ) syst)7s [ ar) charact)ri8)d today by out5 o45dat), unint)-rat)d, ,abor int)nsiv) a++,ications. Syst)7s hav) b))n cr)at)d in a ha+ha8ard 7ann)r and ar) )ith)r inacc)ssib,) or di44icu,t to us). As a r)su,t, 7any o44ic)s hav) d)v),o+)d shado@ syst)7s that run ind)+)nd)nt,y o4 c)ntra, syst)7s 0I3SP,!""', +. 12.
3his r)+ort +oint)d to th) dissatis4action @ith th) curr)nt in4or7ation syst)7 +roduct and its 7ana-)7)nt. Lack o4 acc)ss and int)-ration @)r) id)nti4i)d as +rob,)7s @ith
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)(istinsyst)7 as 4o,,o@s th) )(istinin4or7ation syst)7. 3h)s) r)+orts and int)rvi)@s su--)st)d that th) con4i-uration o4 th) )(istinad7inistrativ) in4or7ation syst)7 @as a cons)qu)nc) o4 ha+ha8ard syst)7 d)v),o+7)nt that had occurr)d ov)r th) y)ars @ithout syst)7atic +,annin-. 3hat is, th) in4or7ation syst)7 )nviron7)nt consist)d o4 r)dundant ad7inistrativ) a++,ications that r)quir)d )(t)nsiv) t)chnica, su++ort. Anoth)r r)+ort charact )ri8)d th) ca7+us K dissatis 4action @ith th) structur a, arran-) 7)nt 4or +rovidin t)chnic a, su++ort 4or th) Fhi,) this ad7inistrativ) structur) 7ay hav) c)rtain advanta-)s in a,,o@in- 4or th) sharin- o4 c)rtain co7+ut)r syst)7s, it a,so ,)ads to both cu7b)rso7) and ,)n-thy +roc)dur)s b)4or) any d)cision or action 7ay b) tak)n, sinc) any -iv)n actions 7ay hav) di44)r)nt i7+act on di44)r)nt ca7+us)s. 3his a++,i)s to both 7aint)nanc) and d)v),o+7)nt @ork, but th) +rob,)7 is 7ost s)v)r) @h)n d)a,in- @ith n)@ syst)7s +urchas) or d)v),o+7)nt. 0<A<<<, !""!, +.'2. <,)ar,y, th)r) @as a -ro@ins)ns) o4 dissatis4action @ith th) in4or7ation syst)7 +roduct and s)rvic)s +rovid)d by SAIS. *r))n@ood and Hinin-s 0!""'2 hav) ar-u)d that a hi-h 7)asur) o4 dissatis4action b)co7)s a +r)ssur) 4or chan-). Aro7 this +oint o4 vi)@, th) dissatis4action @ith th) )(istin- in4or7ation syst)7 +roduct and 7ana-)7)nt can b) int)r+r)t)d as 4unctioninas a +r)ssur) to d),)-iti7at) th) SAIS arran-)7)nt. 3hat is, -rou+s b)-an to r)co-ni8) that th) )(istinsyst)7 and su++ort structur) @as not to th)ir advanta-). As on) 7ana-)r to,d 7), th) critica, disadvanta-) @as that @ith SAIS as th) s)rvic) +rovid)r, Rth) ca7+us did not hav) th) abi,ity to s)t +rioriti)s 4or syst)7 d)v),o+7)ntS 0Int)rvi)@, D)c)7b)r !1, !""', 6PE2. Discussion o4 abandon7)nt o4 th) )(istin+ractic)s @as not y)t a++ar)nt but so7) @)r) stron-,y su--)stin- a r)vision or r)+,ac)7)nt o4 th) institutiona,i8)d +ractic). Rath)r than th) R,u7+ su7S
ass)ss7)nt [ )ach ad7inistrativ) ar)a @ou,d individua,,y contract [ 4or co7+ut)r s)rvic)s. 6ach ar)a @ou,d th)n b) 4r)) to s+)ci4y its o@n n))ds and +o,ici)s 0@ithin th) ,i7itations o4 th) curr)nt a++,ications and )qui+7)nt2 and a,so )(+,or) oth)r @ays o4 7))tin- its co7+utinn))ds, inc,udins),45 7ana-)7)nt or +artici+ation in a ca7+us5bas)d ad7inistrativ) co7+utinor-ani8ation @hich 7i-ht )v)ntua,,y )7)r-). 0A3A, !""/, +.%2
@ith it. In oth)r @ords, th)s) -rou+s had r)co-ni8)d that th)ir dissatis4action @as ,ink)d dir)ct,y to th) )(istinor-ani8ationa, arran-)7)nt, or template as *r))n@ood and Hinin-s 0!""'2 su--)st. As th)y stat), Rdissatis4i)d -rou+s 7ust r)co-ni8) th) conn)ction b)t@))n th) +r)vai,int)7+,at) 0@hich sha+)s th) distribution o4 +rivi,)-) and disadvanta-)2 and th)ir +osition o4 disadvanta-)S 0+. !$#12 b)4or) chan-) can occur. In this instanc), th) 7)7b)rs o4 th) Ad7inistrativ) 3ask Aorc), @hich consist)d o4 !1 7idd,) 7ana-)rs, had r)co-ni8)d that th)ir int)r)sts @)r) not b)in- acco77odat)d by th) SAIS institutiona, arran-)7)nt and @)r) +ushin4or r)visin- th) +ractic).
A,thou-h dissatis4action @ith th) in4or7ation syst)7 and its 7ana-)7)nt @as -ro@in-, it @as not )nou-h 4or chan-) to tak) +,ac). As *r))n@ood and Hinin-s 0!""'2 hav) ar-u)d, dissatis4action @ith an )(istin+ractic) is not su44ici)nt 4or chan-) to tak) +,ac), Aro7 th) abov), constitu)nts 7ust r)co-ni8) th) @) can s)) that +ossibi,ity o4 an a,t)rnat) various actors at t)7+,at). 3hat r)co-nition o4 th) univ)rsity th) a,t)rnat) t)7+,at) @as @)r) att)7+tin- b)in- 4or7)d throu-h th) to r)vis) th) r)+orts si7i,ar to th) on) abov) institutiona,i8)d and oth)rs o4 co77itt))s that +ractic) to @)r) )(a7inin- th) curr)nt r)so,v) th)ir stat) o4 in4or7ation syst)7 dissatis4action
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4unction)d to d),)-iti7at) th) )(istin- in4or7ation syst)7 7ana-)7)nt on and its su++ort structur). th) ca7+us. Aor <o77itt))s r)+ort)d on th)ir dissatis4action @ith th) instanc), th) )(istin- or-ani8ationa, Ad7inistrativ) in4or7ation syst)7 3ask Aorc) arran-)7)nts on th) on) d)scrib)d th) hand, and on th) oth)r th)y +ossibi,ity o4 ca,,)d 4or an in4or7ation cr)atin- a syst)7 that @ou,d a,,o@ 4or ca7+us5bas)d int)-rat)d +roc)ssin-. 3his data 7ana-)r and ar-u)d that th)7) o4 int)-ration dir)ct,y cha,,)n-)d th) )44icacy o4 th) Rsuch a )(istin- in4or7ation +roduct +osition, sinc) th) curr)nt +roduct @as +ro+)r,y construct)d as 4ra-7)nt)d d)v),o+)d, and c)ntra,i8)d. @ou,d r)su,t in an i7+ortant st)+ to@ard th) The <ntegrate" Ca'pus8 The <ntegrate" 4(ste' -oa, o4 achi)vin- a 4u,,y Myth7akin- activiti)s int)-rat)d throu-hout th) i7+,)7)ntation ca7+us +roc)ss c)nt)r)d on th) th)7) co7+utino4 int)-ration. 3h)s) activiti)s )nviron7)ntS dir)ct,y in4,u)nc)d th) 0A3A, !""/, ov)r@h),7in- su++ort 4or th) +.12. 3h)s) r)+orts +oint)d n)@ so4t@ar). Mor) to th) b)-innin- i7+ortant,y, th) i7+,)7)ntation +roc)ss, @hi,) s)rvin- to -arn)r o4 an a,t)rnat) su++ort, a,so s)rv)d to a,i-n in4or7ation th) n)@ 6RP @ith th) syst)7. or-ani8ationa, va,u)s o4 int)-ration. 3h)r)4or), activiti)s In -)n)ra,, th) that invo,v)d constructin- th) +)r4or7anc) n)@ 6RP as an int)-rat)d too, crisis that a,so s)rv)d to r)constitut) and 7)7b)rs o4 r)a44ir7 th) or-ani8ationa, th)s) ca7+us va,u) o4 int)-ration. In this co77itt))s @)r) d)scribin- s)ns), 7yth7akin- activiti)s at th) b)-innin- h),+)d to )nsur) that con-ru)nc) b)t@))n th) 6RP o4 th) !""$s syst)7 and its )nviron7)nt rais)d s)rious @as obtain)d. In this s)ction doubts about th) +a+)r )(a7in)s ho@ this th) ,)-iti7acy R4itS )vo,v)d by ,ookin- at o4 th) )(istinactiviti)s that cr)at)d and in4or7ation r)in4orc)d th) story o4 an syst)7 s)rvic) int)-rat)d and th)r)4or) and su++ort. Rb)tt)rS syst)7. S+)ci4ica,,y, 3h) s))7in-,y data obtain)d in int)rvi)@s, ha+ha8ard 7))tin-s and a surv)y ar) )(+ansion o4 )(a7in)d. It is i7+ortant to th) 7ain4ra7) not) that this data @as ad7inistrativ) syst)7 and th) co,,)ct)d b)4or) th) 6RP @as insta,,)d in )ith)r 4u,, sca,) t)st +ro,i4)ration o4 or +roduction. 3h)r)4or), th)r) n)t@ork and is no concr)t) syst)7 that t)chnica, @ou,d a,,o@ th) r)s)arch)r to +)rsonn), v)ri4y i4 in 4act th) +)rc)+tion o4
int)-ration @as )(a7+,), )ar,y on in th) consist)nt @ith +roC)ct ,i4) cyc,), in so7) +r)su7ab,y +r)+aration 4or th) kicko44 RobC)ctiv)S 7))tin- 4or th) <IS +roC)ct, standard o4 on) 7)7b)r o4 th) +roC)ct int)-ration. t)a7 d)scrib)d th) obC)ctiv)s Additiona,,y, sinc) o4 th) n)@ syst)7 as, a7onth) conc)rn is oth)r thin-s, Rint)-ration ... @ith )(a7inin4,)(ib,) tunab,) syst)7 [ 7yths, @h)th)r a,,o@ 4or d)+art7)nt contro,.S or not int)-ration As th) +roC)ct t)a7 car)4u,,y is Rr)a,S or not is cra4t)d a scri+t 4or th) kicko44 o4 ,itt,) r),)vanc) 7))tin-, th)y sat 4or s)v)ra, to th) study. hours )nsurin- that )v)ryon) Fhat is at issu) isa-r))d on th) 7)ssa-) that @hat th) @as to b) conv)y)d to +artici+ants att)nd))s. 3h) ov)ra,, socia,,y a++roach s))7)d to b) to construct)d as continu) to discr)dit th) r)a,. 3his r)a,ity )(istinsyst)7 and su++ort is v)ri4i)d and construct an i7a-) o4 an throu-h th) us) int)-rat)d ca7+us in n))d o4 o4 th)ir ,an-ua-) an int)-rat)d syst)7. Aor and th)ir instanc), at th) 4irst kicko44 r)s+ons)s to th) 7))tinth) dir)ctor o4 surv)y. in4or7ation syst)7s b)-an by attackin- th) )(istin- IS 3h) th)7) o4 ,)-acy syst)7 and th) su++ort int)-ration @as structur). RF) outsourc) a v)ry do7inant co7+utin- s)rvic)s Xto th) IS on) that @as c)ntra, o44ic)Y but hav) no constant,y contro, ov)r ho@ th)y do it. r)in4orc)d by Mon)y is si7+,y tak)n o44 th) th) +roC)ct to+ 4or s)rvic)s.S 3h) <I: th)n t)a7, th) d)scrib)d th) id)a, syst)7, consu,tants RIn th) +ast +)o+,) had to hir)d by th) @ork in si,os [ @) @)r) 4orc)d univ)rsity, th) to think v)rtica,,y. No@ @) ar) <I: and askin- +)o+,) to think and chanc),,or. Aor @ork
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had b))n cr)at)d by th) +roC)ct t)a7 4or th) <IS hori8onta,,y[ in +roC)ctN it @as a th)7) that th) chanc),,or us)d in 7any o4 int)ractiv) and his +ub,ic a++)aranc)s and int)rd)+)nd)nt @ays.S 3h) i7a-) 4or7a, docu7)nts +rior to th) o4 an int)-rat)d initiation o4 th) <IS +roC)ct. Aor instanc), th) ca7+usK strat)-ic ca7+us @as +,an, @hich @as about / y)ars construct)d in th) 7akin- and invo,v)d throu-h h)r a++ro(i7at),y !$ co77itt))s @ords and th) @hos) 7)7b)rs r)+r)s)nt)d n)@ syst)7 @ou,d a,,o@ th)7 o44ic)s 4ro7 throu-hout th) ca7+us, @as r)+,)t) @ith to @ork in that r)4)r)nc)s to an int)-rat)d int)-rat)d )nviron7)nt. Sh) ca7+us. In this +,an, +ub,ish)d about !.1 y)ars b)4or) th) <IS +ro7is)d +roC)ct, th) ca7+usK -oa,s ar) r)sourc)s to a 4o,,o@s transition into this n)@ @ay o4 Striv) to achi)v) th) -r)at)st @orkin-. 3h) story o4 an id)a, hu7an +ot)ntia, a7on- its stud)nts, 4acu,ty, sta44 and syst)7 @as sustain)d throu-h a,u7ni, and throu-h th)7 and its int)-rativ) +ro-ra7s th) continu)d r)in4orc)7)nt o4 [ 3h) >niv)rsity @i,, continu) int)-ration. 3h) its historic co77it7)nt to )(istinsyst)7 r)7ovin- barri)rs [ 3h) >niv)rsity @i,, b) int)-rativ) @as contrast)d @ith th) n)@ in in a,, that it striv)s to do. that th) o,d @as 3h) docu7)nt su--)sts cast as Rdisint)-ratin-,S int)-ration 4or a vari)ty o4 @h)r)as th) n)@ acad)7ic +ro-ra7s and @as int)-rat)d. +roC)cts on th) ca7+us. Int)-ration, as )(+r)ss)d by Mor) i7+ortant,y, th) chanc),,or in his +,an, )vok)d i7a-)s o4 uni4ication, by cr)atinth) story o4 th) 6RP coh)sion, and co,,aboration. 3h) obC)ctiv) o4 int)-ration did syst)7 as not )nd in th) strat)-ic +,an. int)-rat)d, th) su++ort)rs @)r) 3hrou-hout +ub,ic ab,) to )stab,ish +)r4or7anc)s, such as 4acu,ty s)nat) or board o4 trust))s a c,os) 7atch 7))tin-s, th) chanc),,or @ith th) continua,,y r)in4orc)d th) va,u) or-ani8ationa, )nviron7)nt. Aor o4 int)-ration. His )()cutiv) th) univ)rsity th) co77itt)), co7+os)d o4 a,, th) to+ )()cutiv)s o4 th) ca7+us, th)7) o4 int)-ration @as a a,so su++ort)d this th)7) in th)ir +r)s)ntations and @ritt)n 4or7a, docu7)nts. or-ani8ationa, va,u) that @as stron-,y +ro7ot)d by th) u++)r5,)v), )()cutiv)s o4 th) or-ani8ation. Int)-ration @as not a th)7) that Fhat @) can s)) h)r) is that in 4act int)-ration @as +)rha+s as 7uch a sy7bo, o4 th) id)a, stat) 4or th) ca7+us co77unity as it @as a d)scri+tion o4 th) id)a, syst)7. <r)atinth) 7yth o4 an int)-rat)d syst)7 and
int)-rat)d ca7+us @ork)d to +roduc) a c,os) a,i-n7)nt b)t@))n th) t)chno,o-y and th) or-ani8ation, th)r)by )stab,ishin- a -ood 4it b)t@))n th) t@o. 3his c,os) cou+,in@as ov)rt,y stat)d in th) r)qu)st 4or bids issu)d 4or th) +urchas) o4 th) 6RP. Accordin- to this docu7)nt, th) s),)ct)d syst)7 R7ust b) int)-rat)d @ith its )nviron7)nt as @),,N it can not b) an iso,at)d syst)7, but on) @hich 7uch )(ist in th) broad)r ad7inistrativ), acad)7ic, and cu,tura, s)ttin- o4
both th) ca7+us and th) univ)rsity syst)7.S 3h) su++ort)rs o4 th) 6RP syst)7 @)r) car)4u, to a,i-n th) 6RP syst)7 to th) or-ani8ationa, -oa,s o4 th) univ)rsity. 3his is stat)d in th) r)quir)7)nts ana,ysis docu7)nt issu)d durinth) i7+,)7)ntation. As you 7ov) a,onth) continuu7 4ro7 ,)ast int)-rat)d to 7ost int)-rat)d, th) a7ount and co7+,)(ity o4 syst)7 su++ort activiti)s +)r4or7)d by th) institutionKs t)chnica, su++ort or-ani8ation ar) ,)ss)n)d and th) va,u) o4 v)ndor so4t@ar) 7aint)nanc) s)rvic)s is incr)as)d. Mor) int)-rat)d syst)7s ar) nor7a,,y ,)ss )(+)nsiv) to i7+,)7)nt and 7aintain. Considering the university2s vision and these technical support implications, the Pro3ect Team and irectors2 (roup has determined the desired level of integration is most integrated. X)7+hasis add)dY
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7aint)nanc) is )vid)nc)d in 7any 4or7s, such as ritua,s, 3h) 7yth7akin- +ractic)s and ,an-ua-) us). In this vi)@, ,an-ua-) is k)y activiti)s surroundin- th) in th) cr)ation and 7aint)nanc) o4 a 7yth. 3his 6RP i7+,)7)ntation study )(a7in)d th) ,)v), o4 a,,o@)d 7)7b)rs su++ort and ,an-ua-) us) o4 to ),aborat) th) +artici+ants invo,v)d in th) <IS +roC)ct. A surv)y @as or-ani8ationa, ad7inist)r)d to /!# va,u) o4 int)-ration. 3h) +artici+ants at a,, ,)v),s o4 th) or-ani8ation. At th) ti7) th) rh)toric o4 surv)y @as ad7inist)r)d, th) or-ani8ationa, chan-) @as on) 6RP @as not y)t in us) by any o4 trans4or7in- 7)7b)rs o4 th) or-ani8ation th) or-ani8ation )(c)+t a s7a,, -rou+ invo,v)d 4ro7 4ra-7)nt)d in t)stin-. 3h) r)s+ons) rat) @as G/.GU 0n\&'2. to int)-rat)d, @h)r)as th) <IS 3h) surv)y contain)d a +roC)ct @as to nu7b)r o4 d)7o-ra+hic trans4or7 th) qu)stions 0a-), -)nd)r, y)ars in4or7ation o4 @ork, )tc.2 and oth)r )nviron7)nt qu)stions that ar) not r),)vant 4ro7 a 4ra-7)nt)d to an 4or this cha+t)r. 3h) qu)stions r),)vant to this study ar) int)-rat)d on). discuss)d b),o@ as @),, as Ho@)v)r, th) i7+,)7)ntation th)ir r)su,ts. o4 th) 6RP @ou,d a,,o@ both th) O!erall8 "o (ou agree ,ith t)chno,o-y and the "ecision to purchase a or-ani8ation to b) in con-ru)nc) ne, 4tu"ent <nfor'ation @ith )ach oth)r, 4(ste' 14<42 for the in a ti-ht 4it. 3h) uni!ersit(B 7yth 4unction)d as a v)hic,) o4 Stron-,y cons)nsua, A-r)) Stron-,y Disa-r)) or-ani8ationa, n thou-ht, s)rvinI to a,i-n th) ! / # G 1 ' % a i7+,)7)ntation t)a7Ks various In r)s+ondin- to th) qu)stion activiti)s @ith th) o4 ,)v), o4 su++ort 4or th) or-ani8ationKs d)cision to +urchas) and insta,, va,u)s, but at th) an 6RP 0%5+oint Lik)rt sca,)2, sa7) ti7) to 4indin-s sho@ that th)r) @as r)constitut) ov)r@h),7in- su++ortB "%.%U th)7. )ith)r so7)@hat a-r))d, a-r))d or stron-,y a-r))d. An In ord)r 4or o+)n5)nd)d qu)stion ask)d 7yth to b) r)s+ond)nts to d)scrib) th) b),i)v)d, to b)n)4its o4 th) n)@ 6RP hav) th) +o@)r syst)7. o4 +)rsuasion, it 7ust b) shar)d and sustain)d -hat "o (ou see as the by individua,s. 'ain "ifferences bet,een 3his the ol" stu"ent s(ste'
an" the ne, s(ste'B 1Please be as "etaile" as possible%2 A4t)r r)adin- and codin- a,, ans@)rs to th) d)scri+tion o4 th) n)@ syst)7, th) 4o,,o@incat)-ori)s and 4r)qu)nci)s ,ist)d in 3ab,) ! @)r) obtain)d. Table ;: 4ur!e( responses to open3en"e" question
The ne, C<4 is?allo,s for: Int)-rationIint)rconn)ction Distribut)dIshar)d acc)ss to in4or7ation F)b bas)dIn)@ t)chno,o-y A,)(ibi,ity
Percent ans,ering G'.1U /G.GU !&.'U ".#U
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Table ;: 4ur!e( responses to open3en"e" question The ne, C<4 is?allo,s for: >s)r 4ri)nd,y 644ici)ntIb)tt)r s)rvic) to stud)nts R)a,5ti7) acc)ss andIor u+dat)s B)tt)r r)+ortin>s)r con4i-urab,) and u+dat)ab,) <a7+us5o@n)d and o+)rat)d Percent ans,ering &.!U %.$U 1.&U #.1U #.1U /.#U
3h) r)s+ons)s ar) r)v)a,in- o4 Cust ho@ succ)ss4u, th) +roC)ct t)a7, consu,tants, and <I: had b))n in cr)atinth) 7yth o4 an id)a, syst)7 that @ou,d b) int)-rat)d and a,so acc)ssib,). In o+)n5)nd)d qu)stions r)s+ond)nts us)d ,an-ua-) that indicat)d that G'.1U b),i)v)d th) n)@ syst)7 @as )ith)r an int)-rat)d syst)7 or @ou,d a,,o@ 4or int)-ration or int)rconn)ction. Q)t, on,y !#.GU o4 thos) r)s+ondin- had actua,,y us)d th) n)@ syst)7. 3hat is, on,y a s),)ct -rou+ o4 individua,s @)r) no@ in th) t)stin+has) and actua,,y had any in4or7ation by @hich to in any @ay Cud-) @h)th)r th) n)@ 6RP syst)7 @as )ith)r int)-rat)d or not. Ho@)v)r, th) +)r4or7anc)s by <IS su++ort)rs r)nd)r)d th) 6RP as an obC)ctiv) too, @ith int)-ration abi,ity, th)r)by distancin- it 4ro7 th) socia, +ractic)s that +roduc)d it as such. Anoth)r qu)stion ask)d about ,)v), o4 )(+osur) to +ub,ic +r)s)ntations about th) <IS +roC)ct. Please ans,er the follo,ing questions about (our le!el of e0posure to the ne, s(ste'% !. I hav) obtain)d 7ost o4 7y in4or7ation about th) n)@ syst)7 by ta,kin- @ith co@ork)rs Q)s No
2. I att)nd)d a d)7o 4or th) n)@ so4t@ar) durinth) )va,uation +)riod
0Su77)r"%2 Q)s No
3. I att)nd)d a d)7o 4or th) n)@ so4t@ar) a4t)r th) d)cision to

+urchas) @as 7ad) 0Aa,,"%2 Q)s No
4. I att)nd)d o445ca7+us trainin- s)ssions 4or th) n)@ so4t@ar)

Q)s No
5. I att)nd)d a con4)r)nc) roo7 +i,ot @h)r) I sa@ th) n)@ syst)7

and @ork)d @ith th) consu,tants Q)s No
-41TEAM FLY
6. I
3his cha+t)r has ar-u)d that 7uch o4 th) or-ani8ationa, ,it)ratur) on t)chno,o-y tak)s a v)ry rationa,istic and static a++roach to )(a7inin- th) chan-)s that 7ust tak) +,ac) 4or t)chno,o-y to b)co7) Ra,i-n)dS @ith th) or-ani8ation. 3h) r)s)arch +r)s)nt)d h)r) +rovid)d a 4ra7)@ork that +unctuat)d Q)s No th) i7+ortanc) o4 socia, cont)(t as a k)y in4,u)nc) in Non) o4 th) an 6RP i7+,)7)ntation r)s+ond)nts +roc)ss. S+)ci4ica,,y, this @)r) usinth) cha+t)r has sho@n that 6RP syst)7 to in4or7ation t)chno,o-y R4itS +)r4or7 th)ir 7ust b) und)rstood as @ork so this d)+)nd)nt on a vari)ty o4 qu)stion @as co7+,)( socia, +roc)ss)s and discard)d. 3h) cu,tura, conv)ntions, a,, o4 additiona, @hich r)nd)r it an acc)+tab,) qu)stions @)r) )ntity. 3hrou-h th) study o4 an su77)d 4or )ach r)s+ond)d. i7+,)7)ntation, this +a+)r hi-h,i-ht)d th) crucia, Ai4ty54our and i7+ortanc) o4 7yth7akin- as s)v)n t)nths th) v)hic,) by @hich an +)rc)nt o4 th) )(istinsyst)7 is r)s+ond)nts stat)d that th)y d),)-iti7at)d, a n)@ 6RP syst)7 is construct)d as had r)c)iv)d Rint)-rat)dS and th) story5 7ost o4 th)ir 7akin- +roc)ss s)rv)d to a,i-n in4or7ation th) t)chno,o-y @ith id)a, about th) 6RP or-ani8ation va,u)s. syst)7 4ro7 co@ork)rs and 3hus 4ar, 7yth7akin- and no@h)r) ),s). storyt),,in- cou,d b) suit)d 4or 3h)s) r)s+ond)nts had )(a7inin- 7ost so4t@ar) bui,d or buy i7+,)7)ntations. not att)nd)d Ho@)v)r, 7yths and th)ir +ub,ic +)r4or7anc)s by ana,ysis ar) +articu,ar,y r),)vant to 6RP +roC)cts +roC)ct t)a7
a7 cur r)n t,y usi nth) n) @ so4 t@ ar) in 7y o44i c) to do so 7) +ar t o4 7y @o rk
7)7b)rs or th) <I:, y)t th)ir ,an-ua-) us) s))7)d to r)4,)ct a b),i)4 in th) n)@ syst)7 as an int)-rat)d too,. 3his su--)sts that th) 7yth @as no@ b)in- r)+roduc)d and sustain)d by oth)rs b)yond th) initia, cr)ators and su++ort)rs o4 th) 7yth o4 int)-ration. 3h) 7yth o4 an int)-rat)d syst)7 s))7)d to hav) tak)n ho,d as it @as sustain)d and r)cr)at)d by or-ani8ationa, 7)7b)rs at a,, ,)v),s o4 th) or-ani8ation.
CONCLUSION
b)caus), un,ik) ho7o-)nous +o+u,ation, 6RP oth)r syst)7 i7+,)7)ntation brin-s to-)th)r d)v),o+7)nt a h)t)ro-)n)ous -rou+ o4 +roC)cts, 6RP individua,s, @ith di44)r)nt i7+,)7)ntations vocabu,ari)s and co7+)tin+,ac) v)ry uniqu) +rioriti)s. 3h)s) c,i)nts ar) d)7ands on )(+)ct)d to d)4in) a co77on c,i)nts. 6RP s)t o4 busin)ss ru,)s, data syst)7s ar) standards, +roc)ss)s and d)scrib)d by +roc)dur)s 4or th) su++ort)rs as or-ani8ation. Mor)ov)r, int)-rat)d or-ani8ationa, +ractic)s 7ust syst)7s. 3h)s) b) 4itt)d to th) Rb)st +ractic)sS syst)7s hav) i7b)dd)d in th) 6RP or b))n tout)d in abandon)d in ord)r to a-r)) th) +o+u,ar +r)ss u+on a n)@ or-ani8ationa, as th) +anac)a vi)@. 4or int)-ratin- th) Rdisint)-ratin-S 3h)r)4or), 7or) than in c,assic syst)7 bui,d or buy +roC)cts, or-ani8ation. So7) hav) )v)n 7yth7akin- +ractic)s 4unction t)r7)d 6RP to r)so,v) con4,ict that aris)s, so4t@ar) r)duc) con4usion, and +)rsuad) Rbusin)ss ,ist)n)rs about th) +ractica, int)-ration in a b)n)4its and va,u) o4 an 6RP. As bo(S or @) sa@ in th) cha+t)r, th) R7)-a+acka-)sS b)n)4it o4 int)-ration @as not 0*,ass, !""&2. su++ort)d by any concr)t) 3his int)-ration t)stab,) 4acts. Q)t, th)y a,, +roc)ss s+ans th) d)scrib)d it as an int)-rat)d )ntir) syst)7 that @ou,d brin- a or-ani8ation nu7b)r o4 b)n)4its to th) across ca7+us. 3h) 7yth7akind)+art7)nts. activiti)s durinth) 6RP Fh)r)as c,assic i7+,)7)ntation s)rv)d to syst)7s +roC)cts +roduc) an in4or7ation syst)7 ty+ica,,y 4ocus)d as an obC)ctiv) too, @hos) on a sin-,) unit acquisition @ou,d su++ort th) and th)r)4or) a or-ani8ationa, va,u) o4
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int)-ration. In a s)ns), 7yth7akinactiviti)s ,ink th) acquisition o4 n)@, untri)d and )(+)nsiv) too,s @ith s))7in-,y RobC)ctiv)S or-ani8ationa, va,u)s. 3h)y brin- ord)r in th) 7idst o4 a 4air,y unkno@n )nviron7)nt. 3hus, 7yth7akinactiviti)s 4unction as Ra,i-n7)ntS 7)chanis7s that a,,o@ th) t)chno,o-y to 4it to th) or-ani8ationa, cont)(t.
thinkin- o4 th) ana,yst, no ,on-)r as )n-in))r or sci)ntist, but rath)r Rana,yst as anthro+o,o-istS 0A,var)8 ; >r,a, in +r)ss2 @ho 4aith4u,,y r)cords and +ays att)ntion to 7yths conv)y)d by or-ani8ationa, 7)7b)rs.
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in4or7ation syst)7s d)v),o+7)nt. Behaviour ; Information Technology, !!0#2, !'$5%G. Iivari, J. 0!""/2. 3h) or-ani8ationa, 4it o4 in4or7ation syst)7s. Journal of Information Systems, /, #5/" Iivari J., Hirschh)i7, R. and ?,)in, H. ?. 0/$$$2. A dyna7ic 4ra7)@ork 4or c,assi4yin- in4or7ation syst)7s d)v),o+7)nt 7)thodo,o-i)s and a++roach)s. Journal of Management Information Systems, !%0#2, !%". ?ni-hts, D. and Murray, A. 0!""G2. Managers ivided' !rgani%ational Po,itics and Information Technology Management. N)@ Qork John Fi,)y ; Sons. ?norr, 6. 0!"""2. 6RPKs rou-h @at)rs. ;pside Today, Nov)7b)r !&. ?@on, 3. H. and E7ud, R. F. 0!"&%2. >ni4yin- th) 4ra-7)nt)d 7od),s o4 in4or7ation syst)7s i7+,)7)ntation. In Bo,and, R. J. and Hirschh)i7, R. 06ds.2, Critical Issues in Information Systems "esearch, //%5/'/. N)@ Qork John Fi,)y ; Sons. La@r)nc), P. R. and Lorsch, J. F. 0!"'%2. !rgani%ation and Environment. <a7brid-), MA Harvard >niv)rsity Pr)ss. Lucas, H. <. 0!"%12. .hy Information Systems 4ail. N)@ Qork <o,u7bia >niv)rsity Pr)ss.
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M)y)rs, M. D. 0!""12. Dia,)ctica, Ma,an)y, *. and h)r7)n)utics A th)or)tica, 4ra7)@ork A,var)8, R. 4or th) i7+,)7)ntation 0!""'2. o4 in4or7ation syst)7s. D)si-nin- and Information Systems 7ana-in- a Journal, 1, 1!5%$. Mi,)s, division5 @id) M. B. and Hub)r7an, A. n)t@ork M. 0!""G2. 5ualitative 3)chnica, and ata Analysis' An or-ani8ationa, E1panded Source)oo+ issu)s. In L,oyd, 0s)cond )dition2 L. 06d.2, 3housand :aks, <A Administrative Sa-). Computing in Mu7by, D. ?. 0!"&%2. 3h) &igher +o,itica, 4unctions o4 narrativ) in Education, %#5 or-ani8ations. &#. M)d4ord, NJ In4or7ation Communication Monographs, 1G, !!#5!/%. 3oday. Marsha,, <. and :,iv)r, <. 0!""/2. 3h) Ross7an, *. B. ant)c)d)nts o4 d)institutiona,i8ation. 0!""12. !rgani%ation Studies, !#0G2, esigning 1'#51&&. 5ualitative "esearch 0s)cond :r,iko@ski, F. J. 0!""/2. 3h) dua,ity )dition2. 3housand :aks, o4 t)chno,o-y R)thinkin- th) <A Sa-). conc)+t o4 Martin, J. and t)chno,o-y in M)y)rson, D. or-ani8ations. 0!"&&2. !rgani%ation :r-ani8ationa, cu,tur)s and th) Science, #0#2, #"&5 d)nia,, chann),in- G/&. Putna7, L. L. 0!"&#2. 3h) and ackno@,)d-)7)nt int)r+r)tiv) +)rs+)ctiv), an o4 a7bi-uity. In a,t)rnativ) to 4unctiona,is7. Pondy, L., Bo,and, In Putna7, L. L. and Pacano@sky, M. 6. 06ds.2, R., Jr. and Communication In 3ho7as, H. 06ds.2, Managing !rgani%ations, An Interpretive Approach, #!5 Am)iguity and Change, "#5!/1. 1G. B)v)r,y Hi,,s, <A Sa-). N)@ Qork John Luaid, M. 0!""#2. Job )va,uation as 7yth. Journal of Fi,)y ; Sons. Management Studies, #$0/2, M)y)r, J. F. /#"5/'$. and Ro@an, R)iss7an, <. ?. 0!""#2. B. 0!"%%2. #arrative Analysis. N)@bury Institutiona,i8 Park Sa-). Rob)y, D. and )d Markus, M. L. 0!"&G2. Ritua,s in or-ani8ations in4or7ation syst)7s d)si-n. Aor7a, MIS Luart)r,y, &, 15!1. structur) and Rob)y, D. and 7yth and N)@7an, M. 0!""'2. c)r)7ony. S)qu)ntia, +att)rns o4 American in4or7ation syst)7s Journal of d)v),o+7)nt An Sociology, a++,ication o4 a socia, &#, #G$5#'#.
+roc)ss 7od),. ACM Transac tions on Informa tion System s, !G0!2, #$5'#. Sabh)r@a,, R. and Rob)y, D. 0!""12. R)conci,invarianc) and +roc)ss strat)-i)s 4or studyinin4or7ation syst)7 d)v),o+7)nt. Information Systems "esearch, '0G2, #$#5#/%. Scott, J. 6. and ?aind,, L. 0/$$$2. 6nhancin4unctiona,it y in an )nt)r+ris) so4t@ar) +acka-). Information ; Manageme nt, #%0#2, !!!5!//. Scott, F. R. 0!"&%2. 3h) ado,)sc)nc)
o4 institutiona, th)ory. Administrative Sci)nc) Luart)r,y, #/, G"#51!!. S7ith, M. 0!"""2. R)a,i8in- th) b)n)4its 4ro7 inv)st7)nt in 6RP. Management0 Accounting, %%0!$2, #G. St)d7an, <. 0/$$$2. 6RP +rob,)7s +ut brak)s on =o,ks@a-)n +arts shi+7)nts. Computer-orld, January. Strauss, A. and <orbin, J. 0!""$2. Basics of 5ualitative "esearch' (rounded Theory Procedures and Techni6ues. N)@bury Park, <A Sa-). 3o,b)rt, P.S. 0!"&&2. Institutiona, )44)ct on or-ani8ationa, structur). In Euck)r, L. *. 06d.2, Institutional Patterns and !rgani%ations' Culture and Environment. <a7brid-), MA Ba,,in-)r Pub,ishin- <o. 3ric), H. M. and B)y)r, J. M. 0!"&G2. Studyinor-ani8ationa, cu,tur)s throu-h rit)s and c)r)7onia,s. Academy of Management "evie-, "0G2, '1#5'%!. 3urn)r, B. 0!"&!2. So7) +ractica, as+)cts o4 qua,itativ) data ana,ysis :n) @ay o4 or-ani8in- th) co-nitiv) +roc)ss)s @ith th) -)n)ration o4 -round)d th)ory. 5uality and 5uantity, !1, //15/G%.
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0!""#2. In4or7ation syst)7s strat)-y 4or7ation and Fa,k)r, A. H. and i7+,)7)ntation 3h) cas) o4 a c)ntra, -ov)rn7)nt a-)ncy. Lorsch, J. F. Accounting, Management 0!""'2. and Information Technology, :r-ani8ationa, #0#2, !"!5/$$. choic) Product v)rsus 4unction. F)ick, ?. 6. 0!""12. In Sha4rit8, J. M. Sensema+ing in !rgani%ations. 3housand and :tt, J. S. 06ds.2, Classics of :aks, <A Sa-). E7ud, R. F., Anthony, F. P. and Stair, !rgani%ational Theory, //$5/#!. R. M. 0!""#2. 3h) us) o4 7)nta, i7a-)ry to 4aci,itat) Fads@orth in4or7ation id)nti4ication in Pub,ishinr)quir)7)nts ana,ysis. <o7+any. Journal of Management Fa,sha7. *. Information Systems, "0G2, and Han, <. ?. !%15!"'.
4 6 -
Chapt er <<<: ERP 4(ste 's in Cni!e rsities : Ratio nale &"!an ce" for Their &"opt ion
t)chno,o-y 0I32 to su++ort cor) busin)ss o+)rations. 3h) data us)d 4or th) study ar) docu7)nts +ub,ish)d ),)ctronica,,y on th) Int)rn)t by univ)rsiti)s. A cont)nt ana,ysis @as a++,i)d to this data. 3h) cha+t)r )7+,oys 4r)qu)nt us) o4 quot)s 4ro7 th) sourc)s s),)ct)d to assist th) r)ad)r to und)rstand th) cont)(t and to v)ri4y th) ana,ysis. 3h) 4indin-s ar) that th) 7ain r)asons 4or ado+tin6RP ar) th) 7od)rni8ation o4 syst)7s, -r)at)r usabi,ity and 4,)(ibi,ity, int)-ration o4 data and syst)7s, busin)ss +roc)ss r))n-in))rin-, an incr)as) in th) d)-r)) o4 ),)ctronic data int)rchan-) inc,udin- th) +rovision o4 F)b5bas)d int)r4ac)s to a++,ication syst)7s, r)duc)d 7aint)nanc) and risk avoidanc).
INTRODUCTION
6nt)r+ris) R)sourc) P,annin06RP2 syst)7s hav) achi)v)d consid)rab,) i7+ortanc) in th) cont)7+orary in4or7ation OVERVIEW syst)7s ar)na. 6RP syst)7s ar) ,ar-) and co7+,)( int)-rat)d so4t@ar) +acka-)s a!e Oli!er an" that su++ort standard busin)ss Celia T% Ro'' activiti)s. 3h) sco+) o4 6RP Central syst)7s, a,i-n)d @ith th)ir Dueenslan" nu7)rous con4i-uration Cni!ersit(8 a,t)rnativ)s and br)adth o4 &ustralia or-ani8ationa, i7+act, 7ak) th) task o4 i7+,)7)ntinth)7 <o+yri-ht . /$$/, Id)a *rou+ consid)rab,), )(t)ndin- in 7any cas)s ov)r s)v)ra, y)ars. Pub,ishin-. 3h) )(t)nt to @hich 6RP syst)7s ar) sha+inth) I3 3his cha+t)r industry is ca+tur)d in th) out,in)s th) 4o,,o@in- co7+arison R3@),v) si-ni4icanc) o4 y)ars a-o, I3 +)o+,) id)nti4i)d )nt)r+ris) r)sourc) +,annin- th)ir or-ani8ations as IBM or Di-ita, sho+s, says Bruc) 06RP2 syst)7s and ana,ys)s th) Richardson, =P o4 R)s)arch at rationa,) us)d 4or AMR R)s)arch Inc. 3h)yKr) no@ 7or) ,ik),y to b) SAP or th)ir ado+tion. P)o+,)So4tS 0S@)at, !""&2. 3h) 3his study is structur)d around 4inancia, i7+act is corr)s+ondin-,y si-ni4icant RBy a th)ory o4 th) )ar,y /$$$ th) 6RP r)vo,ution 7otivations 4or -)n)rat)d ov)r T/$ bi,,ion in inv)st7)nt in r)v)nu)s annua,,y 4or su++,i)rs in4or7ation
and an additiona, /$$$2. 3h) +h)no7)non o4 th) T/$ bi,,ion 4or @id)s+r)ad ado+tion o4 6RP consu,tin- 4ir7sS syst)7s, d)scrib)d as th) R6RP 0Fi,,cocks ; r)vo,utionS 0Ross, !"""2, ,)ads Syk)s, /$$$2. us to qu)stion th) r)asons 4or 6RP syst)7s hav) its occurr)nc) and th) 4ocus o4 no@ b))n this cha+t)r is th) rationa,) ado+t)d by th) univ)rsiti)s hav) us)d @h)n 7aCority o4 th) ado+tinth)s) syst)7s. Aortun) to+ 1$$ 4ir7s and as th) THEORETICAL hi-h )nd o4 th) 7ark)t b)co7)s FRAMEWORsaturat)d, 6RP 3h) -)n)ra, qu)stion o4 ho@ syst)7s ar) 4i,t)rin- do@n to or-ani8ations shi4t 4ro7 on) 7)diu75 si8)d t)chno,o-y to anoth)r is or-ani8ations addr)ss)d by both )cono7ic such as th)ory and th) th)ory o4 univ)rsiti)s and innovation. 6cono7ic th)ory to r)-ions b)yond +ostu,at)s that in 4r)) thos) initia,,y )cono7i)s th) +ric) syst)7 is +)n)trat)d in th) invisib,) hand that 6uro+) and North d)t)r7in)s ho@ r)sourc)s ar) A7)rica 0?u7ar d)+,oy)d and or-ani8ations ; =an b)hav). By ado+tin- a n)@ Hi,,)-)rsb)r-, t)chno,o-y
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conc)+tua,i8)s th) sta-)s @hich occur durinth) +roc)ss o4 innovation as R0!2 kno@,)d-) that ,o@)rs th) 0b) )(+os)d to2, 0/2 +)rsuasion costs o4 04or7 a 4avorab,) attitud) to2, +roduction, a 0#2 d)cision 0d)cid) to ado+t2, +roduc)r or-ani8ation 7ay 0G2 i7+,)7)ntation, and 012 b) ab,) to s)cur) con4ir7ation.S 3h) 4irst thr)) a +ric) advanta-) sta-)s ar) o4 r),)vanc) to this study. Fith r)s+)ct to Sta-) ! and th)r)by achi)v) a -r)at)r @) 7ay not) that in th) 7ark)t shar) or 7od)rn @or,d th)r) is a vast r)a+ ,ar-)r than r)s)rvoir o4 kno@,)d-), usua, +ro4its unti, cr)atin- a +ot)ntia, in4or7ation co7+)titors co+y ov)r,oad, so th)r) 7ust b) und)r,yin- r)asons @hy th) innovation. 6v)n i4 )cono7ic or-ani8ations ar) r)c)+tiv) to so7) ty+)s o4 in4or7ation r)asons do not 7or) than oth)rs. Fhy do)s account 4or th) ado+tion o4 n)@ th) or-ani8ationa, in4or7ation 4i,t)r )nab,) )(+osur) to 6RP t)chno,o-y in a kno@,)d-), so that th) 7ani4)st,y innovation +roc)ss 7ay 4inancia,, co77)nc)Z It a++)ars quantitativ) s)ns), )cono7ic disco74ort ,)v),s 4),t @ith th)ory -iv)s th) )(istin- t)chno,o-i)s condition this r)c)+tivity to n)@ 4urth)r kno@,)d-). :nc) disco74ort und)r,yin)(+,anation that ,)v),s @ith )(istin- in4or7ation syst)7s b)co7) su44ici)nt,y hu7an b)in-s stron-, an or-ani8ation 7ay b) and th)r)4or) +ro7+t)d to cont)7+,at) or-ani8ations a,so, sinc) th)y a,t)rnativ) syst)7s and ar) contro,,)d by th)r)4or) b) r)c)+tiv) to th) +)o+,), ar) uti,ity ty+) o4 innovation kno@n as an 7a(i7i8)rs and 6RP syst)7. act rationa,,y Fard 0!""'2 su--)sts that 0Si7on, !"%&2. <ons)qu)nt,y @) inv)st7)nt in I3 syst)7s to 7ay assu7) that su++ort cor) busin)ss activiti)s is 7ad) 4or th) 4o,,o@inby ado+tin- an r)asons innovation or-ani8ations b),i)v) th)y @i,, I7+rovin- th) d)riv) b)n)4it +)r4or7anc) o4 )(istin4ro7 so doin-. 6cono7ic th)ory th)r)4or) -iv)s insi-ht into th) r)asons @hy innovations ar) 7isin4or7ation ado+t)d. 3h) Avoidin- busin)ss th)ory o4 innovations disadvanta-) or a,,o@in- a )(+,ains th) busin)ss risk to b)co7) +roc)ss o4 ho@ critica, th)y b)co7) acc)+t)d. Ro-)rs In our +r)s)nt cont)(t @) 7ay 0!"&#2 antici+at) that i4 an
activiti)s 0s+))d, accuracy, )cono7ics2 Int)-ration o4 data and syst)7s to avoid du+,ication, inconsist)ncy and
or-ani8ation is )(+)ri)ncindissatis4action @ith th) +)r4or7anc) o4 )(istinsyst)7s, di44icu,ti)s du) to a 4ra-7)nt)d data and syst)7s )nviron7)nt, busin)ss disadvanta-) 4ro7 not havinan 6RP syst)7 or s)v)r) o+)rationa, +rob,)7s du) to th) inad)quacy o4 )(istinsyst)7s, it @i,, b) s)nsiti8)d to an a@ar)n)ss o4 a,t)rnativ) syst)7s. >sinth)s) -)n)ra, +ro+ositions r),atin- to inv)st7)nt in I3 4or cor) busin)ss activiti)s as a -)n)ra, 4ra7)@ork, @) 7ay ass)ss th) attitud)s o4 6RP
ado+t)rs to@ards )(istinsyst)7s to d)t)r7in) i4 th)y ar) con-ru)nt @ith th)s) cat)-ori)s.
METHODOLOGY
3his study )(a7in)s th) rationa,) )7+,oy)d by univ)rsiti)s as 6RP ado+t)rs. >niv)rsiti)s ar) a s+)ci4ic v)rtica, 7ark)t tar-)t)d by 6RP v)ndors, @hich )nab,)s 7ark)t )44)cts that 7i-ht b) un)v)n across industry s)ctors to b) ),i7inat)d, as su--)st)d in an )ar,i)r study o4 so4t@ar) 7ak) or buy d)cisions 0Rands, !""/2. A vari)ty o4 docu7)nts r),atin- to th)ir 6RP +roC)cts hav) b))n +ub,ish)d by univ)rsiti)s on ),)ctronic 7)dia to in4or7 th)ir stak)ho,d)rs and to d)v),o+ cons)nsua, attitud)s and b)haviors to@ards th) i7+,)7)ntation sta-) o4 th)ir 6RP +roC)ct. 6ducationa, institutions, )s+)cia,,y univ)rsiti)s, va,u) r)ason)d ar-u7)nt and rationa,ityBit is th)ir raison dK]tr)N cons)qu)nt,y, th)ir stak)ho,d)rs @i,, )(+)ct th) d)cision to ado+t an 6RP
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stak)ho,d)rs o4 n)@ +o,icy dir)ctions and activiti)s. <ons)qu)nt,y it @as 4),t that i4 syst)7 to b) bas)d on r)ason a univ)rsity d)sir)d to +ub,ici8) its 6RP acquisition it @ou,d 0P4)44)r, !"&!2. t)nd to us) this 7)diu7. An Aro7 th) int)r+r)tiv) a++roach @as +o+u,ation o4 univ)rsiti)s that chos)n to ana,y8) this data. hav) ado+t)d 6RP 3h) 4ra7)@ork +rovid)d by Fard 0!""'2 @as us)d as a syst)7s, a startin- +oint 4or +)r4or7in- a sa7+,) o4 4our univ)rsiti)s @)r) cont)nt ana,ysis 0?ri++)ndor4, !"&$2 o4 th) data. Pub,ish)d s),)ct)d t@o data is id)a,,y suit)d to cont)nt hi-h5+ro4i,) univ)rsiti)s @ho ana,ysis, @hich has th) advanta-) o4 b)inan +r)s)nt)d 7od)rat) to ,ar-) unobtrusiv) r)s)arch t)chniqu) quantiti)s o4 data, 0F)bb, <a7+b),,, Sch@art8, ; th) >niv)rsity o4 S)chr)st, !"''2. 6ss)ntia,,y th) Michi-an and th) a++roach tak)n is si7i,ar to that o4 th) historian @ho >niv)rsity o4 <o,orado, and t@o r)vi)@s docu7)nts and cr)at)s institutions @hos) a th)ory 4ro7 th)7 to )(+,ain socia, and )cono7ic )v)nts 7at)ria, @as 7or) ,i7it)d, th) that occurr)d in th) +ast. >niv)rsity o4 N)@ ?ri++)ndor4 quot)s Dibb,) 0!"'#2 in co7+arin- th) :r,)ans and activity o4 a cont)nt ana,yst to <)ntra, a historian RFh)n historians Lu))ns,and 7ak) an )44ort to in4)r )v)nts >niv)rsity, Austra,ia. Fhi,st 4ro7 docu7)nts th)y ar), by d)4inition, invo,v)d in cont)nt this study is ana,ysis.S Fhi,st such an ,i7it)d in that a++roach is unco77on in univ)rsiti)s studi)s o4 in4or7ation syst)7s, r)+r)s)nt on) s+)ci4ic s)-7)nt a cas) 4or historica, studi)s in th) disci+,in) has b))n 7ad) o4 th) 6RP 7ark)t, it is ,ik),y 0Mason, Mc?)nn)y, ; that 7any o4 th) <o+),and, !""%2. 3h) int)-rity attitud)s to@ards o4 a cont)nt ana,ysis r)sts on th) sa7) standards o4 6RP ado+tion r)+roducibi,ity 4ound in th) 7ani4)st)d by sci)nc)s, na7),y, that -iv)n univ)rsiti)s th) sa7) obs)rvations, r)sonat) @ith 7)thodo,o-ica, a++roach and thos) o4 oth)r 4ra7)@ork, anoth)r sci)ntist ty+)s o4 @ou,d dra@ th) sa7) )nt)r+ris)s. conc,usions. In th) 4o,,o@inana,ysis th) data is +r)s)nt)d Justi4ications +ub,ish)d on th) in its 7ost int)r)stin- and )(+r)ssiv) 4or7, na7),y, th) Int)rn)t ,an-ua-) us)d in th) ori-ina, constitut) a docu7)nts. 3his a++roach has +ri7ary and )(c,usiv) sourc) th) add)d advanta-) o4 count)rinth) a7bi-uity o4 data 4or this study. Intran)ts inh)r)nt in t)(tua, data, sinc) and th) Int)rn)t th) r)ad)r is )(+os)d to th) ori-ina, ,an-ua-) and can ar) co77on,y v)ri4y th) 7)anin- 4or us)d today to hi7Ih)rs),4 0Lan-,)y, !"&"2. in4or7
or-ani8ations hav) d)v),o+)d a r)+utation as an inhibitor to ERP chan-) b)caus) o4 th) .USTIFICAT in4,)(ibi,ity inh)r)nt in third -)n)ration so4t@ar) t)chno,o-y. ION 3h)s) syst)7s ar) both di44icu,t <'pro!ing the and cost,y to ada+t, Perfor'ance of charact)ristics that ar) @),,5 kno@n and hav) r)c)iv)d @id) E0isting r)co-nition. R6v)ntua,,y an &cti!ities or-ani8ation @i,, r)ach th) sta-) @h)r) it b)co7)s a,7ost Fith a-), I3 syst)7s d)v),o+ i7+ossib,) to )nhanc) th) sy7+to7s @hich )(istinsyst)7s 4urth)r b)caus) th)y ar) too s,o@ and di7inish th)ir )44)ctiv)n)ss as a un)cono7icS 0?),,y, *ibson, Ho,,and, ; Li-ht, !"""2. Many v)hic,) 4or univ)rsiti)s did not 4)), th)y +rovidincou,d 4u,,y addr)ss th) or-ani8ationa, su++ort. A-)in- in4or7ation5syst)75r),at)d +rob,)7s th)y @)r) t)chno,o-y is )(+)ri)ncin- throu-h in5hous) 4rustratin- to us)rs and di44icu,t syst)7s r)d)v),o+7)nt. 3h) 7ark)t 4or so4t@ar) syst)7s to ada+t to has 7atur)d sinc) univ)rsiti)s chan-ininsta,,)d 7ost ,)-acy syst)7s, r)quir)7)nts. 6v)n thou-h th)y r)4,)ctinth) curr)nt do not R@)ar outS +r)4)r)nc) 4or co77)rcia, o445 th)5sh),4 syst)7s. RSinc) ,ik) +hysica, syst)7s, so4t@ar) d)si-nin- and i7+,)7)ntinsyst)7s b)co7) int)-rat)d so4t@ar) +acka-)s is not th) busin)ss o4 7ost r),ativ),y 7or) co7+ani)s, or a 4ocus o4 th)ir uns)rvic)ab,) @ith a-). L)-acy )()cutiv)s, th) syst)7s th)ir syst)7s in 7ost int)rna, +)rsonn), co7) u+ @ith @i,,
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+ayro,, syst)7, ar) /$^ y)ars o,d and ar) s)rious,y n)v)r )qua, th) outdat)d. 0>niv)rsity o4 N)@ qua,ity, sco+), or :r,)ans, !"""2 t)chno,o-y o4 thos) cr)at)d by D)v),o+7)nts in th) so+histication o4 +)rsona, so4t@ar) 4ir7s @hos) busin)ss co7+ut)rs 0P<s2 sinc) th) 7ain4ra7) )ra hav) add)d n)@ this isS di7)nsions to th) hu7an5 0Lo8insky, co7+ut)r int)r4ac). 3his n)@ !""&2. Bui,din- a cost5 )44)ctiv) so4t@ar) a++,ication that riva,s th) 4unctiona,ity avai,ab,) in th) 7ark)t+,ac) @ou,d b) n)ar,y i7+ossib,). 0>niv)rsity o4 <o,orado, /$$$2
t)chno,o-y has had th) )44)ct o4 7akin- ,)-acy syst)7 t)r7ina, int)r4ac)s a++)ar dat)d. 3)chno,o-ica, in4,u)nc)s @)r) disc)rnib,) in a nu7b)r o4 instanc)s, 4or )(a7+,), curr)nt syst)7s @)r) co7+ar)d un4avorab,y to 7or) 7od)rn syst)7s b)caus) th)y ar)
A,, sourc)s )(a7in)d )(+r)ss)d dissatis4action @ith th)ir ,)-acy 3his su--)sts that an syst)7s, 4or a@ar)n)ss o4 n)@ )(a7+,) o+)ratin- sty,)s 7ay incr)as) int)r)st in 3h) 7aCority o4 r)+,ac)7)nt syst)7s c)ntra, @hich hav) 7or) ad7inistrativ) 7od)rn int)r4ac)s. In syst)7s ar) !$5 addition, n)@ /1 y)ars o,d. In t)chno,o-i)s o+)n u+ th) 7ost cas)s, th) +ros+)ct o4 n)@ @ays o4 syst)7s ar) o+)ratin- and int)ractin+rovidin- th) @ith custo7)rs and 4oundation 4or su++,i)rs, 4or )(a7+,) institutiona, data. Fhi,) 3h) >niv)rsity n))ds to 7any o4 th)s) incr)as) th) us) o4 ),)ctronic syst)7s hav) docu7)nts int)rna,,y and th) had 7aCor )(chan-) o4 in4or7ation 7odi4ications to ),)ctronica,,y @ith )(t)rna, ada+t to or-ani8ations throu-h th) us) chan-ino4 industry standards such as r)quir)7)nts, 6,)ctronic Data Int)rchan-) th) ori-ina, and 6,)ctronic Aunds 3rans4)r. d)si-n and 3h)s) st)+s @i,, si7+,i4y int)nt o4 th) busin)ss +roc)ssin-, r)duc) syst)7s r)7ain costs, and ,)v)ra-) t)chno,o-y a barri)r 4or to +rovid) qua,ity s)rvic)s by us)rs. th) 7ost )44)ctiv) 7)ans 0>niv)rsity o4 +ossib,). 0>niv)rsity o4 Michi-an, !""12 Michi-an, !""12 Syst)7s, inc,udin- th) >s)rs b)ca7) conscious o4
7ain4ra7)5bas)d, non) o4 th) syst)7s tak) advanta-) o4 R+ointand5c,ick,S Rdro+5and5 dra-,S stat)5o45th)5art t)chno,o-y. 0>niv)rsity o4 N)@ :r,)ans, !"""2
th) 4act that th) ca+abi,iti)s o4 ,)-acy syst)7s @)r) 4unctiona,,y in4)rior to 7or) 7od)rn P<5 bas)d syst)7s. Data h),d on 7ain4ra7) co7+ut)rs @as not a,@ays acc)ssib,) as d)sir)d and n)ith)r did us)rs hav) th) 7)ans to 7ani+u,at) it to th) r)quir)d 4or7at. :ri-ina,,y 7ost o4 th)s) syst)7s @)r) n)v)r )nvisa-)d
as 4,)(ib,) qu)ry and r)+ortin- too,s. A,)(ibi,ity is an )(+)ctation that has aris)n sinc) th)s) syst)7s @)r) 4irst d)v),o+)d and its abs)nc) has d)v),o+)d into a +)rc)iv)d inad)quacy )(+r)ss)d in th) 4o,,o@in:ur data )nviron7)nt is charact)ri8)d by r)dundant data )ntry, c/m0!r'%m! $%% ' (%r +a$a acc!'', qu)stionab,) data int)-rity, and /&&!c!''ary r!'$r#c$#%&' %& acc!'' $% #&(%rma$#%& X)7+hasis add)dY. 0>niv)rsity o4 <o,orado, /$$$2 >s)r ad5hoc r)+ortin- ca+abi,ity is ,i7it)d. 0>niv)rsity o4 N)@ :r,)ans, !"""2
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In univ)rsiti)s @or,d@id), an )ra o4 ti-ht 4undin- has 4ocus)d att)ntion onto 7or) str)a7,in)d ad7inistrativ) syst)7s, to r)duc) costs @ith th) int)ntion o4 r),)asinr)sourc)s 4or cor) activiti)s. N)@ t)chno,o-i)s o+)n +ossibi,iti)s o4 4r)sh a++roach)s to busin)ss +roc)ss)s that a++)ar to o44)r -r)at)r )44ici)nci)s @h)n co7+ar)d to )(istinbusin)ss +ractic)s. 3o d)a, @ith th) +roC)ct)d d)c,in) in stat) 4undin- su++ort and to r)duc) th) +r)ssur) to incr)as) tuition, costs n))d to b) contain)d or r)duc)d. :4 +articu,ar i7+ortanc) is th) n))d to 4ocus on +)rsonn), costs, @hich ar) th) ,ar-)st co7+on)nt o4 th) )(+)nditur) bas), and th) n))d to str)a7,in) +roc)ss)s and +roc)dur)s @hich add to ad7inistrativ) costs. 0>niv)rsity o4 Michi-an, !""12 Ad7inistrativ) Str)a7,inin- ProC)ct 0A.S.P.2 4,o@chart)d 0or R7a++)dS2 th) HR and Ainancia, +roc)ss)s o4 ov)r #'$ >niv)rsity units. Fh)n ana,y8in- thos) 4,o@charts, it @as d)t)r7in)d that o!er E:F of the steps that are co'plete" for a transaction cou,d )ith)r b) hand,)d )44ici)nt,y throu-h auto7ation, si7+,i4i)d, or ),i7inat)d. [ 3his a++roach attacks th) in)44ici)nci)s in ad7inistration and +rovid)s an o++ortunity to sav) ad7inistrativ) costs ,ithout re"ucing ser!ice% 0>niv)rsity o4 <o,orado, /$$$ 2 In su77ary thos) conditions @hich )ncoura-) an or-ani8ation to consid)r a,t)rnativ) syst)7s, @hich aris) 4ro7 a d)sir) to i7+rov) +)r4or7anc) ar) a d)c,inin- ,)v), o4 satis4action @ith ,)-acy syst)7s, outdat)d int)r4ac)s, in4,)(ib,) 7)chanis7s 4or data r)tri)va, and r)+ortin- and a d)sir) to 7od)rni8) busin)ss +roc)ss)s usin- t)chno,o-i)s that 4aci,itat) ),)ctronic data trans4)r b)t@))n th) custo7)rs and su++,i)rs o4 th) or-ani8ation. Attribut)s o4 6RP syst)7s that ar) +)rc)iv)d to r)4,)ct th)s) d)4ici)nci)s and as+irations +rovid) 4urth)r su++ortin- rationa,) 4or th)ir acquisition. F) 7ay r)-ard 4,)(ibi,ity, usabi,ity, acc)ssibi,ity, F)b5bas)d int)r4ac)s and +ot)ntia, 4or busin)ss +roc)ss r))n-in))rin- as 4)atur)s o4 6RP syst)7s @hich, -iv)n th) +r)vious,y )(+r)ss)d n))ds, @ou,d t)nd to 4or7 a 4avourab,) attitud) to@ards th)7.
+le0ibilit(% 6RP syst)7s +oss)ss su+)rior data r)tri)va, ca+abi,iti)s +art,y b)caus) th)y ar) int)-rat)d and a,so b)caus) th)y ar) bas)d on a co77on r),ationa, data 7od),. 3his +rovid)s 7or) 4,)(ibi,ity to us)rs, @hich )(+,ains @hy th)y ar) vi)@)d 4avorab,y. Stron- qu)ry and r)+ortin-
abi,iti)s. >n,ik) our curr)nt syst)7s, th) abi,ity to acc)ss and qu)ry th) data ),)7)nts is -r)at,y )(+and)d. 0>niv)rsity o4 <o,orado, /$$$ 2 6asi)r, quick)r acc)ss to data 4or r)+ortin- and d)cision57akin-. 0>niv)rsity o4 N)@ :r,)ans, !"""2 1 Csabilit(% 6RP syst)7s ar) +ri7ari,y bas)d on th) c,i)ntIs)rv)r archit)ctur) @hich +rovid)s a 7od)rn d)skto+ us)r int)r4ac). 3h) 7od)rn us)r int)r4ac) i7+,)7)nt)d in 6RP syst)7s is ,ik),y to 7))t usabi,ity )(+)ctations and @i,, h),+ to 4or7 4avourab,) attitud)s to@ards 6RP syst)7s in th) 7inds o4 +ot)ntia, ado+t)rs. >ti,i8)s a c,i)ntIs)rv)r archit)ctur). 0<)ntra, Lu))ns,and >niv)rsity, !""&2
/usiness Process Reengineering% 6RP syst)7s incor+orat) an incr)as)d ca+acity 4or ),)ctronic +roc)ssin- o4 data in co7+arison @ith that avai,ab,) in ,)-acy syst)7s. 3his o+)ns u+ th) +ros+)ct o4 th) or-ani8ation a++,yinr))n-in))r)d busin)ss +roc)ss)s that 7ay b) 4ast)r and 7or) cost )44)ctiv). So7) +ros+)ctiv) +urchas)rs o4 6RP syst)7s hav) id)nti4i)d +roc)ss)s that th)y @ish to r))n-in))r and @i,, t)nd to 4or7 a 4avourab,) attitud) to@ards 6RP syst)7s b)caus) th)y d),iv)r this
-51TEAM FLY
4u nc tio na ,it y. A, t) rn ati v) ,y, ot h) rs r) co -n i8 ) th at th ) ad o+ tio n o4 an 6R P sy st ) 7 @i ,, +r ov id ) an o+ +o rt un ity to int ro du c) n) @ +r oc )d
ur)s that @i,, )radicat) )(istinin)44ici)nci)s. Attitud)s 4avourab,) to th) ado+tion o4 6RP syst)7s @i,, b) )nhanc)d to th) )(t)nt that 6RP syst)7s ar) +)rc)iv)d as a-)nts o4 chan-)d +roc)ss)s.
>s)rs @i,, b) ab,) to tak) advanta-) o4 ),)ctronic 4or7s )ntry and authori8ation throu-h th) us) o4 @ork,ists in th) initia, +roduct. N)@ r),)as)s o4 th) +roduct @i,, +rovid) broad)r @ork4,o@ ca+abi,iti)s. 0>niv)rsity o4 <o,orado, /$$$2
I7+,)7)ntinth) so4t@ar) inc,ud)s Rstr)a7,inin-S 0or r))n-in))rin-2 th) @ay @) do busin)ss. 0>niv)rsity o4 N)@ :r,)ans, !"""2
1 <nternet
&ccessibilit(% In co77on @ith 7any oth)r busin)ss)s 0).-., bankininstitutions2 univ)rsiti)s ar) s))kino++ortuniti)s to )nab,) custo7)rs 0stud)nts2 to +)r4or7 qu)ry and u+dat) 4unctions via th) Int)rn)t 0).-., chan-in- and con4ir7in)nro,7)nt in cours)s2. 3his +rovid)s a 7or)
4,) (ib ,) 4or 7 o4 s)r vic ) to stu d) nts an d a,s o r) du c)s th) r) qui r) 7) nt to +r ovi d) sta 44 to +) r4o r7 th) s) s)r vic )s. Abi ,ity to 7a k) us ) o4 cur r) nt t)c hn o,o -i) s, 4or )( a7 +,)
, F)b5)nab,)d a++,ications. 0>niv)rsity o4 N)@ :r,)ans, !"""2 4i'plifie" $aintenance% :n) o4 th) 7ain issu)s a44)ctinuniv)rsity ad7inistrators @as th) di44icu,ty o4 7aintainin)(istinsyst)7s so that th)y cou,d k))+ +ac) @ith chan-inr)quir)7)nts. 3h)r) is an a++ar)nt )(+)ctation that 6RP +roducts @i,, 7aintain curr)ncy in th) 4utur) and th)r)4or) r)7ov) th) or-ani8ation 4ro7 )(+osur) to risks incurr)d 4ro7 outdat)d syst)7s. 3his +)rc)+tion o4 6RP syst)7s )nab,)s th)7 to b) vi)@)d 4avorab,y.
3h) >niv)rsity is ab,) to acquir) v)ndor5+rovid)d 7aint)nanc) @hich @i,, )nsur) th) >niv)rsityKs ad7inistrativ) in4or7ation syst)7s @i,, b) @),, t)st)d, +rov)n, and continua,,y u+dat)d. 0>niv)rsity o4 <o,orado, /$$$2 Luick)r d)v),o+7)nt ti7) 4or syst)7 )nhanc)7)nts. 0>niv)rsity o4 N)@ :r,)ans, !"""2 Si7+,i4i)d 7aint)nanc) is
a,so a di7)nsion o4 th) d)sir) 4or int)-ration o4 data and syst)7s discuss)d in th) 4o,,o@ins)ction. A)@)r syst)7s t)nd to ,o@)r 7aint)nanc) activity and cost. <ntegration of ata an" 4(ste's 3h) historica, d)v),o+7)nt o4 in4or7ation syst)7s, 4irst,y 4ro7 discr)t)
7ain4ra7)5bas)d a++,ication syst)7s to distribut)d so,utions, has in 7any or-ani8ations r)su,t)d in a +,)thora o4 syst)7s. 3his has r)su,t)d in in)44ici)nci)s on t@o 7ain di7)nsions. Mu,ti+,) discr)t) 7ain4ra7) a++,ications @ith th)ir di44)r)nt d)si-n strat)-i)s 4r)qu)nt,y hav) di44)r)nt o+)ratin- co77ands, us)rsK int)r4ac)s, databas)s and 7aint)nanc) r)quir)7)nts. 3his cr)at)s a nu7b)r o4 +rob,)7s additiona, traininov)rh)ads b)caus) o4 th) di44)r)nt o+)ratin- sty,)s, +ot)ntia, inconsist)nci)s in data sinc) )ach a++,ication has its o@n databas), and co7+,)( 7aint)nanc) strat)-i)s. Prob,)7s caus)d by 7u,ti+,) databas)s ar) )vid)nt 4ro7 th) 4o,,o@in-.
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:ur data )nviron7)nt is charact)ri8)d by r!+/&+a&$ +a$a !&$ry, cu7b)rso7) too,s 4or data acc)ss, 1/!'$#%&a0 ! +a$a #&$!2r#$y, X)7+hasis add)dY and unn)c)ssary r)strictions on acc)ss to in4or7ation. 0>niv)rsity o4 <o,orado, /$$$ 2
du+,icat) data )ntry, inconsist)nt r)+ortin- r)su,ts or out+ut, and @ast)d ti7).S In 4act, durinth) A.S.P. D)tai,)d Ass)ss7)nt, A.S.P. 4ound that a,7ost e!er( d)+art7)nt that @as r)vi)@)d had a shado@ syst)7 to track )ith)r hu7an r)sourc) or 4inanc) data. 0>niv)rsity o4 <o,orado, /$$$ 2
:r-ani8ations 7otivat)d to r)duc) this co7+,)(ity in th)ir in4or7ation syst)7sK in4rastructur) ar) ,ik),y to b) r)c)+tiv) to th) id)a o4 int)-rat)d syst)7s. 3h) abi,ity to int)-rat) di44)r)nt a++,ications into a sin-,) so4t@ar) +roduct si7+,i4i)s th) 7ana-)7)nt o4 I3 and incr)as)s usabi,ity throu-h a co77on ,ook and 4)),. 3h) sharin- o4 data b)t@))n 3h) oth)r di7)nsion is th) a++,ications r)duc)s th) n))d 4or k)yin- and ),i7inat)s situation @h)r) di44)r)nt inconsist)nt data. As 6RP s)ctions o4 th) syst)7s +rovid) an int)-rat)d sa7) databas) and suit) o4 or-ani8ation a++,ications @ith a co77on ,ook hav) di44)r)nt and 4)), th)y a++)ar to +rovid) a a++,ications @ith so,ution to th)s) d)4ici)nci)s.
broad,y si7i,ar 4unctiona,ity. Autono7ous so4t@ar) acquisition by s)ctions @ithin th) or-ani8ation, driv)n by an att)7+t to ov)rco7) inad)quaci)s in c)ntra,i8)d ,)-acy syst)7s, r)su,ts in shado@ syst)7s that hav) so7) d)-r)) o4 du+,icat) 4unctiona,ity. 4ha"o, s(ste's hav) d)v),o+)d r)su,tinin Rincr)as)d in4or7ation syst)7s inv)st7)nt,
B)tt)r, int)-rat)d d)skto+ too,s. 0>niv)rsity o4 N)@ :r,)ans, !"""2 An intuitiv), )asy, co77on ,ook and 4)), across th) )ntir) +roduct ,in). >s)rs @onKt hav) to ,)arn ho@ to us) di44)r)nt syst)7s to acco7+,ish dai,y ad7inistrativ) tasks. 0>niv)rsity o4 <o,orado, /$$$2 3h) +roducts ar) structur)d to shar) data ),)7)nts and a,,o@ us)rs to ,ink 4inanc) and hu7an r)sourc) in4or7ation. 0>niv)rsity o4 <o,orado, /$$$2 &!oi"ing /usiness isa"!antage or &llo,ing a /usiness Ris# To /eco'e Critical 6RP syst)7s co7+arativ),y ar) a r)c)nt
t)chno,o-y, and no )vid)nc) to su++ort th) +ro+osition that not havinan 6RP syst)7 constitut)d a busin)ss disadvanta-) @as disc)rn)d. 6stab,ishin@h)th)r 6RP syst)7s ar) a busin)ss n)c)ssity is a r)s)arch qu)stion 4or th) 4utur). L)-acy syst)7s can b)co7)
unsound and )rratic du) to continu)d 7odi4ication ov)r an )(t)nd)d +)riod and th)ir continu)d us) 7ay +os) a busin)ss risk that cou,d b)co7) critica, i4 th)y cannot +ro+)r,y su++ort cor) busin)ss activiti)s or i4 th)y b)co7) unstab,). 3h) curr)nt Stud)nt Syst)7 is unab,) to su++ort cor) >niv)rsity 4unctions 0such as th) 7ana-)7)nt o4 stud)nt in4or7ation2 and 7ust b) r)+,ac)d as a +riority. 0<)ntra, Lu))ns,and >niv)rsity, !"""2
Modi4ications ar) di44icu,t to i7+,)7)nt and can +roduc) un+r)dictab,), unint)nd)d and und)sirab,) cons)qu)nc)s, @hich 7ay i7+act adv)rs),y on or-ani8ationa, +)r4or7anc)
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to th) )(t)nt that a busin)ss risk )v)ntuat)s. :n) univ)rsity )(+r)ss)s this issu) as 4o,,o@s Modi4ications ar) cost,y and b)co7) a hi-h risk )nd)avour. 0>niv)rsity o4 Michi-an, !""12
ad7inistrativ) a++,ications 0Hu7an R)sourc)s, Stud)nt Ad7inistration and Ainancia, syst)7s2 ar) ,)-acy syst)7s runninon an IBM 7ain4ra7) +,at4or7. So7) o4 th) syst)7s, +articu,ar,y Stud)nt Ainancia, Aid, @i,, )ncount)r si-ni4icant y)ar /$$$ di44icu,ti)s. 0>niv)rsity o4 N)@ :r,)ans, !"""2
Aor so7) or-ani8ations, Q/? had th) )44)ct o4 sti7u,atinan int)r)st in a,t)rnativ) I3 syst)7s. I4 a,t)rnativ) syst)7s cou,d b) 4ound that @)r) Q/?5 co7+,iant, r)7)diation o4 )(istinsyst)7s cou,d b) avoid)d. Q/? th)r)4or) act)d as a L)-acy syst)7s, sti7u,us to s)arch activiti)s b)caus) o4 th)ir 4or r)+,ac)7)nt syst)7s. 6RP syst)7s @ith a++ro+riat) ,on-)vity, @)r) a,so )(+os)d to 4unctiona,ity @)r) ,ik),y to y)ar /$$$ 0Q/?2 co7) to th) att)ntion o4 or-ani8ations as candidat)s ada+tation 4or consid)ration. +rob,)7s. Q/? @as uniqu), univ)rsa, and ADDITIONAL cons+icuous. Aai,ur) to addr)ss CONSIDERATIONS Q/? @ou,d hav) Gen"or Profile b))n a s)v)r) and +robab,y As @) hav) a,r)ady not)d th) catastro+hic 6RP +h)no7)non is driv)n by shock to any or-ani8ation so it both so4t@ar) v)ndors and ado+tin- or-ani8ations. 6RP @as c,)ar,y a busin)ss risk. It is syst)7s cou,d not b) a so,ution 4or ado+tin- or-ani8ations @)r) b),i)v)d 6RP it not 4or th) 4act that so4t@ar) ado+tion @as sti7u,at)d by th) co7+ani)s ar) s),,in- 6RP Q/? issu). RMany syst)7s. RMany o4 th) )v)nts in th)s) studi)s su--)st a co7+ani)s 7atin- th)ory o4 s)arch. Not hav) ... i7+,)7)nt)d 6RP on,y ar) or-ani8ations ,ookin4or a,t)rnativ)sN a,t)rnativ)s in r)s+ons) to ar) ,ookin- 4or or-ani8ationsS Q/? conc)rnsS 0Markus ; 3annis, 0<y)rt ; March, !"'#2. I7+ortant as it is, th) @ay in /$$$2. In @hich 6RP +roducts ca7) to b) co77on @ith avai,ab,) is not th) 4ocus o4 this )v)ry oth)r cha+t)r. F) con4in) ours),v)s or-ani8ation, to th) vi)@ o4 th) ado+tinuniv)rsiti)s or-ani8ation, @hich a++)ars to n))d)d to addr)ss th) Q/? ,ook b)yond th) so4t@ar) +roduct its),4 to th) +ro4i,) o4 issu). th) su++,i)r or-ani8ation. 6(istin:n-oin- 7aint)nanc) o4 th)
+roduct, th) us) o4 +rov)n t)chno,o-y, r),)vant 4unctioninr)4)r)nc) sit)s and s)v)n5day su++ort ar) i,,ustrativ) o4 th) )(+)ctations +urchas)rs hav) o4 v)ndors. 0<)ntra, Lu))ns,and >niv)rsity, !""&2 3h) v)ndorKs +)rc)iv)d
str)n-th and stabi,ity is v)ry i7+ortant to +urchas)rs. 3his is conn)ct)d to th) issu) o4 risk. >niv)rsiti)s do not @ish to inv)st in an 6RP syst)7 int)nd)d to +rovid) institutiona, su++ort 4or 7any y)ars un,)ss th)y ar) convinc)d that th) v)ndor is a stab,) su++,i)r.
F) @ou,d not hav) 7ad) this 7aCor co77it7)nt to P)o+,)So4t i4 @) had not b))n convinc)d o4 th) co7+anyKs ,on-5t)r7 viabi,ity. 0>niv)rsity o4 Michi-an, !""%2
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hard@ar) and so4t@ar). Econo'ics an" Table ;: & relati!e cost e0a'ple +inancial Ris# Cost Co'ponent Insta,,inan 6RP in a univ)rsity 7ay cost >ST'1 7i,,ion or 7or), Labor <ost, inc,udin- i7+,)7)ntation +artn)r @hich r)+r)s)nts ,abor a substantia, 4inancia, co77it7)nt. 3h) So4t@ar) <osts sco+) o4 6RP ado+tion is Hard@ar) and N)t@ork <osts subC)ct to variation as it d)+)nds on th) 3rainin- <osts ran-) o4 7odu,)s i7+,)7)nt)d by :+)ratin- <osts a +articu,ar univ)rsity. 6RP ado+tion 3ota, -)n)ra,,y r)quir)s )(+)nditur) on Ainancia, b)n)4its inc,ud) hard@ar) quanti4iab,) 4actors such as inc,udin- s)rv)rs, r)duc)d sta44in- costs as @),, @orkstations and as nonquanti4iab,) 4actors such n)t@ork as b)tt)r in4or7ation. As 6RP in4rastructur), syst)7s ar) r)+,ac)7)nt th) 6RP so4t@ar) syst)7s, it shou,d b) to no7ic +acka-), rationa,) RIt is +ossib,) to consu,tants to ar-u) that a Wt)chno,o-yK assist @ith inv)st7)nt cannot strict,y -iv) i7+,)7)ntation a r)turn on inv)st7)nt un,)ss and th) cost o4 it r)+,ac)s an o,d)r t)chno,o-y r)+,acin- sta44 and carri)s out th) sa7) s)cond)d to th) 4unctions 7or) )44ici)nt,yS 6RP +roC)ct. 0Fard, !""'2. 3o Custi4y a T#1 Data obtain)d 7i,,ion inv)st7)nt in an 6RP 4ro7 th) +roC)ct, on) univ)rsity us)d +,annin- +has) +ayback and int)rna, rat) o4 at th) r)turn 0IRR2 ca,cu,ations. 3h) >niv)rsity o4 IRR o4 circa "U @as abov) th) <o,orado sho@n univ)rsityKs hurd,) rat) o4 1U in 3ab,) !, is but do)s not su--)st 6RP indicativ) o4 ado+tion @as an ov)r@h),7inr),ativ) costs. 4inancia, i7+)rativ) -iv)n th) 3his data unc)rtainty inh)r)nt in such su++orts thos) ca,cu,ations. A,so th) ti7)sca,) studi)s that )nvisa-)d 4or th) inv)st7)nt is sho@ costs r)asonab,y ,on-BRat ,)ast a associat)d @ith d)cad)SBbut +robab,y r)a,istic th) in th) ,i-ht o4 th) ,on-)vity o4 i7+,)7)ntation curr)nt ,)-acy syst)7s +roc)ss ar) 0>niv)rsity o4 <o,orado, /$$$2. consid)rab,y As an 6RP +roC)ct is )(t)nsiv), 7or) than th) th) +roc)ss o4 4or7a, cost o4 ass)ss7)nt is co7+,icat)d,
Cost H1:::>s2 /$,%1%
G,#!' #,%"# /,$/1 !,%1# #/,'GG
@hich 7ay 7ak) or-ani8ation and d),iv)rinon) in4)asib,) 4or s)rvic)s, th)r) 7ay b) no so7) choic) but to inv)st. [3his 7ay or-ani8ations. caus) so7) univ)rsiti)s to 3h) i7+ortanc) n)-,)ct th) cost5b)n)4it o4 4inancia, ana,ysis o4 +ro+os)d I3 7otiv)s is +roC)cts. So7) o4 th)s) @i,, b) unc,)ar @ith o+)rationa, or co7+)titiv) r)s+)ct to I3 n)c)ssiti)s, @hich @i,, not -iv) inv)st7)nts, you any co7+)titiv) )s+)cia,,y ,ar-) advanta-), but @i,, k))+ you in on)s. It has b))n th) -a7) and thus ar) su--)st)d that n)c)ssary 4or surviva,S 0=ita,) univ)rsiti)s do ; Johnston, !""%2. 3his not a,@ays 7ount su--)sts it @ou,d not b) a 4inancia, cas) unusua, 4or a univ)rsity to 4or I3 dis+)ns) @ith a 4or7a, ana,ysis inv)st7)nts. o4 th)ir 6RP inv)st7)nt. In a,, RFh)r) th) industry s)ctors th) ,ar-)r and syst)7 is 7or) co7+,)( a +roC)ct, th) 4unda7)nta, to 7or) di44icu,t it is to ass)ss a,, runnin- th) th) ,ik),y i7+acts.
-55-
)()rcis) 4unctions in @hich th) or-ani8ation @ish)s to )n-a-)S 0<y)rt ; March, !"'#2. >n,)ss <ons)qu)nt,y th) or-ani8ation is 7otivat)d to th) d)cision to a,,ocat) su44ici)nt 4unds 4ro7 ado+t an 6RP th) bud-)t to acquir) an 6RP syst)7 is +ri7ari,y bas)d syst)7, th) inv)st7)nt cannot on a qua,itativ) occur. 3his su--)sts th) d)sir) to ado+t an 6RP syst)7, i4 it ass)ss7)nt o4 has d)v),o+)d, @i,, b) th) issu)s @) t)7+)r)d by its a44ordabi,ity, as hav) a,r)ady discuss)d. 3h)r) is co77on to )cono7ic 7ay or 7ay not transactions o4 a,, ty+)s. b) a 4inancia, A risk ass)ss7)nt is a vita, ana,ysis, but )v)n i4 th)r) is, co7+on)nt o4 any substantia, inv)st7)nt d)cision. As+)cts it do)s not a++)ar to b) th) o4 risk ass)ss7)nt r),atin- to th) inv)st7)nt s)arch @)r) do7inant addr)ss)d )ar,i)r in this crit)rion. It is cha+t)r. Fh)n th) d)cision is ackno@,)d-)d, 7ad) to inv)st in an 6RP ho@)v)r, that syst)7, 4inancia, risks 7ust th) 7)thod o4 b) consid)r)d. Ainancia, risks data co,,)ction d)+)nd on th) 7a-nitud) o4 us)d in this study cou,d hav) th) 6RP inv)st7)nt r),ativ) to th) or-ani8ationKs b))n inhibitinr)sourc)s. 3h) si8) o4 th) @ith r)s+)ct to inv)st7)nt r)quir)d to uncov)rinth) 4inancia, issu)s, i7+,)7)nt an 6RP syst)7 is substantia,, @hich 7ak)s this sinc) so7) univ)rsiti)s 7ay is an i7+ortant issu) 4or a hav) d)cid)d not univ)rsity to consid)r. to +,ac) 4inancia, A si-ni4icant u+54ront data on th) inv)st7)nt @i,, n))d to b) Int)rn)t.
7ad) and a7orti8)d ov)r 4utur) 6cono7ics t)sts +)riods. 3h) ov)rhau, o4 th) th) r)so,v) o4 th) >niv)rsityKs busin)ss +roc)ss)s and t)chno,o-y @i,, r)quir) a or-ani8ation to ,ar-) co77it7)nt 4ro7 th) ado+t an 6RP syst)7. Aunds 4or >niv)rsity co77unity as this inv)st7)nt curr)nt syst)7s and +roc)ss)s 7ust b) a,,ocat)d hav) to b) 7aintain)d unti, th) 4ro7 th) ado+tin- so,ution is in +,ac). 0>niv)rsity o4 <o,orado, /$$$2 or-ani8ationKs
bud-)t. RAn or-ani8ationKs Ti'escale )cono7ic int)nt is ,ar-),y )(+r)ss)d 6RP ado+tion is Custi4i)d +art,y in t)r7s o4 th) n))d to throu-h th) addr)ss +rob,)7s )(+)ri)nc)d bud-)t @hich )()rcis)s contro, @ith )(istin- in4or7ation syst)7s and a,so by th) d)sir) ov)r a,,o@ab,) b)havior @ithin to 7od)rni8) and introduc) th) or-ani8ation. n)@)r and 7or) )44)ctiv) t)chno,o-i)s. 3h) con4,u)nc) Bud-)ts ar) o4 a busin)ss n))d to r)+,ac) a,,ocat)d to d)+art7)nts or )(istinsyst)7s and th) avai,abi,ity o4 a suitab,) divisions @hich
a,t)rnativ) ar) r)quir)d 4or innovation to occur. 3h) n))d to r)+,ac) is not a,@ays ur-)nt, un,)ss s+)cia, 4actors ,ik) Q/? ar) in )44)ct, nor ar) suitab,) a,t)rnativ)s n)c)ssari,y avai,ab,). In th) +)rsuasion +has) th) or-ani8ation d)v),o+s a 4avourab,) attitud) to th) innovation, @hich 7ay r)su,t in a d)cision to inv)st in an 6RP syst)7. 3h) -)station +)riod in @hich +rob,)7s ar) -radua,,y r)co-ni8)d and
+ro-r)ssiv),y @ors)n 7ay continu) 4or so7) ti7). Aor )(a7+,), at on) univ)rsity various co77itt))s co7+,)t)d ass)ss7)nts o4 in4or7ation syst)7s ov)r a +)riod o4 s)v)ra, y)ars. In May !""! it @as r)+ort)d, Rsyst)7s ar) not 7))tinth) n))ds o4 4inancia, us)rsSN in S)+t)7b)r !""/, that Rsi-ni4icant i7+rov)7)nts in [ 7ana-)7)nt in4or7ation syst)7s ar) n))d)d.S A 4urth)r r)+ort in March !""G )ndors)d th) 4indin-s o4 th) +r)vious t@o and cu,7inat)d in a RAP in A+ri, !""' 0>niv)rsity o4 <o,orado, /$$$2. 3his ,on- -)station +)riod in th) cas) o4 univ)rsiti)s s))7s to su--)st )ith)r a st)ady, d))+)nin- a@ar)n)ss o4 th) +rob,)7 unti, it r)ach)d th) +oint at @hich action @as sti7u,at)d or a ty+) o4 7arkin- ti7) unti, an innovation a++)ar)d.
CONCLUSION
-56-
in 7att)rs o4 d)tai,. Fh)r)as 4or 4or7)r -)n)rations o4 I3 inv)st7)nt s+))d, accuracy F) hav) and )cono7ics @)r) th) basis )(a7in)d 6RP o4 th) rationa,) 4or +)r4or7anc) ado+tion in univ)rsiti)s usin- i7+rov)7)nt, th)s) do not a++)ar to hav) b))n such a 4ra7)@ork i7+ortant consid)rations in th) +rovid)d by a cas) o4 6RP inv)st7)nt. th)ory o4 inv)st7)nt in I3. >sabi,ity, 4,)(ibi,ity, 7or) )44)ctiv) 7aint)nanc), busin)ss 3his th)ory )(+,ains @hy n)@ +roc)ss r))n-in))rin- and th) 7od)rni8ation o4 syst)7s, in4or7ation +articu,ar,y ),)ctronic int)r4ac)s t)chno,o-y is to su++,i)rs and custo7)rs ado+t)d. 3h) such as thos) +rovid)d via th) th)ory o4 inv)st7)nt in I3 Int)rn)t, no@ do7inat) issu)s 4or cor) busin)ss o4 +)r4or7anc) i7+rov)7)nt. +roc)ss)s @as in Int)-ration o4 syst)7s and data is con4ir7)d as a +o@)r4u, -)n)ra, co7+atib,) @ith 7otiv) 4or 6RP inv)st7)nt. Risk avoidanc) is a,so a 7otiv) th) rationa,) 4or r)n)@in- ,)-acy +rovid)d by a++,ications @ith 7or) 7od)rn univ)rsiti)s 4or 6RP syst)7s, @hich ar) th)ir 6RP assu7)d to +r)s)nt 4)@)r inv)st7)nt. 7aint)nanc) +rob,)7s. A Fh)r) th) 6RP )(+)ri)nc) di44)rs 7od), o4 6RP ado+tion 4ro7 th) th)ory is )7bracin- this r)vis)d th)ory is +r)s)nt)d in Ai-ur) !.
5 7 -
+igure ;: 6RP ado+tion 7od), )7bracin- this r)vis)d th)ory

As 6RP syst)7s b)co7) )stab,ish)d @) 7ay ,ook to th) 4utur) and consid)r th) i7+,ication that th)y @i,, b)co7) th) ,)-acy syst)7s o4 to7orro@. 3h) +roc)ss o4 innovation 7ay b) +r)su7)d to continu) to +rovid) a,t)rnativ) so,utions. Fh)th)r th)s) a,t)rnativ) syst)7s attract th) int)r)st and att)ntion o4 7ana-)rs in or-ani8ations @i,, d)+)nd on ho@ ada+tab,) 6RP syst)7s +rov) to b). I4 6RP syst)7s satis4y or-ani8ationa, )(+)ctations th)n th) d)-r)) o4 att)ntion +aid to +ossib,) a,t)rnativ)s @i,, b) ,o@. I4 dissatis4action @ith 6RP syst)7s d)v),o+s th)n, as has b))n obs)rv)d in this study, a,t)rnativ) so,utions to su++ortin- cor) busin)ss activiti)s 7ay b) cont)7+,at)d and history 7ay onc) a-ain b) s))n as r)+)atin- its),4.
REFERENCES
<)ntra, Lu))ns,and >niv)rsity. 0!""&2. R)qu)st Aor Pro+osa, Ad7inistrativ) In4or7ation Syst)7. <)ntra, Lu))ns,and >niv)rsity. 0!"""2. ;ni#e-s .EE<$: _/1'. <y)rt, R. and March, J. 0!"'#2. A Behavioral Theory !f The 4irm. >++)r Sadd,) Riv)r, NJ Pr)ntic) Ha,,. Dibb,), =. R. 0!"'#2. Aour 3y+)s o4 in4)r)nc) 4ro7 docu7)nts to )v)nts. &istory and Theory, #, /$#5//!. ?),,y, S., *ibson, N., Ho,,and, <. and Li-ht, B. 0!"""2. A busin)ss +)rs+)ctiv) on ,)-acy in4or7ation syst)7s. Communications of the Association for Information Systems, /0%2. ?ri++)ndor4, ?. 0!"&$2. Content Analysis. 3housand :aks, <A Sa-). ?u7ar ?. and =an Hi,,)-)rsb)r- J. 0/$$$2. 6RP )(+)ri)nc)s and )vo,ution. Communications of the ACM, G#0G2, /#5/'. Lan-,)y, A. 0!"&"2. In s)arch o4 rationa,ity 3h) +ur+os)s b)hind th) us) o4 4or7a, ana,ysis in or-ani8ations. Administrative Science 5uarterly, #G, 1"&5'#!.
Lo8insky, S. 0!""&2. Enterprise .ide Soft-are Solutions. Boston, MA Addison5F)s,)y. Markus, M. L. and 3annis, <. 0/$$$2. 3h) )nt)r+ris) syst)7s )(+)ri)nc)BAro7 ado+tion to succ)ss. In E7ud, R. F. 06d.2, 4raming the omains of IT "esearch' (limpsing the 4uture Through the Past. <incinnati, :H Pinna4,)( 6ducationa, R)sourc)s, Inc.
Mason, R. :., Mc?)nn)y, J. L. and <o+),and, D. *. 0!""%2. D)v),o+in- a historica, tradition in MIS r)s)arch. MIS5, /!0#2, /1'5/%'. P4)44)r, J. 0!"&!2. Mana-)7)nt as sy7bo,ic action 3h) cr)ation and 7aint)nanc) o4 or-ani8ationa, +aradi-7s. "esearch in !rgani%ational Behavior, #, !51/. Rands, 3. 0!""/2. 3h) k)y ro,) o4 a++,ications so4t@ar) 7ak)5or5buy d)cisions. Journal of Strategic Information Systems, !0#2. Ro-)rs 6. M. 0!"&#2. iffusion of Innovations 0third )dition2. N)@ Qork Ar)) Pr)ss. Ross, J. 0!"""2. The E"P "evolution' Surviving versus Thriving 0Forkin- Pa+)r No. #%2. Massachus)tts Institut) o4 3)chno,o-y, <)nt)r 4or In4or7ation Syst)7s R)s)arch. Si7on, H. A. 0!"%&2. Rationa,ity as a +roc)ss and +roduct o4 thou-ht. American Economic "evie-, '&, !5!'. S@)at J. 0!""&2. 6RP 3h) cor+orat) 6cosyst)7. Information.ee+ !nline :ctob)r !/. :,iv)r ; Ro77 >niv)rsity o4 <o,orado. 0/$$$2. R)tri)v)d A)bruary //, /$$$ 4ro7 th) For,d Fid) F)b htt+ II@@@.cusys.)duIàs+Ibus+,anIMast)r.ht7,.
>niv)rsity o4 Michi-an. 0/$$$2. M0Path-ays Pro3ect !vervie-. R)tri)v)d May /, /$$$ 4ro7 th) For,d Fid) F)b htt+ II@@@.7+ath@ays.u7ich.)duIov)rvi)@I++,so4t.ht7,. >niv)rsity o4 Michi-an. 0!""12. Strategic ata Plan "eport, March. R)tri)v)d Ju,y &, !""" 4ro7 th) For,d Fid) F)b htt+ II@@@.u7ich.)duIùi+Isd+I.
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>niv)rsity o4 N)@ :r,)ans. 0!"""2. R)tri)v)d Jun) ", !""" 4ro7 th) For,d Fid) F)b htt+ II@@@.uno. )duIùccI+roC)c tsIP)o+,)So4tI@) b.ht7,. =ita,), M. and Johnston, ?. 0!""%2. Mana-)7)nt +roc)ss)s 6va,uatin- I3 inv)st7)nts. In Q)tton, P. 06d.2, Managing the Introduction of Technology in the
elivery and Administration of &igher Education, D663QA. Fard J. 0!""'2. A +ort4o,io a++roach to )va,uatinin4or7ation syst)7s inv)st7)nts and s)ttin+rioriti)s. In Fi,,cocks, L. 06d.2, Investing in Information Systems' Evaluation and Management. Boca Raton, AL <ha+7an ; Ha,,.
F)bb, 6. J., <a7+b),,, D. 3., Sch@art8, R. D. and S)chr)st, L. 0!"''2. ;no)trusive Measures' #onreactive "esearch in the Social Sciences. Rand McNa,,y.
Fi,,cocks, L. P. and Syk)s, R. 0/$$$2. 3h) ro,) o4 3h) <I: and I3 4unction in 6RP. Communications of the ACM, G#0G2 /&5#/.
6 0 -
Chapter <G: &ssessing Enterprise Resource Planning 1ERP2 &"option in the Philippines
OVERVIEW
$aria i!ina Gracia 6% Rol"an >niv)rsity o4 th) Phi,i++in)s <)bu <o,,)-), 3h) Phi,i++in)s &ntonio R% 6a'ora D) La Sa,,) >niv)rsity, 3h) Phi,i++in)s +re"eric# % &'ores 3hird Fav) So4t@ar) Associat)s, 3h) Phi,i++in)s <o+yri-ht . /$$/, Id)a *rou+ Pub,ishin-.
INTRODUCTION
3h) Phi,i++in)s has a,r)ady )7brac)d todayKs 4ast5+ac)d -,oba, )cono7y. 3h) @or,d@id) adv)nt o4 )5co77)rc) has driv)n th) Phi,i++in) busin)ss co77unity to d)a, @ith chan-)s in th) @ay busin)ss is conduct)dB)(t)ndin- its r)ach, @orkin- to +rovid) b)tt)r s)rvic)s 4or custo7)rs, @orkin- 7or) c,os),y @ith su++,i)rs and +artn)rs, and ta++in- n)@ 7ark)ts. D)v),o+7)nts charact)ri8)d by th) n)@ -,oba, )cono7y r)quir) a shi4t in th) 7ana-)7)nt +aradi-7 o4 )nt)r+ris)s @hich -iv)s +r)7iu7 on co7+)titiv)n)ss, 7u,ti4unctiona,ity, and 4,)(ibi,ity. 3his r)quir)s 7ana-inth) t)chno,o-ica, 4actors o4 th) )nt)r+ris) 07ana-in- t)chno,o-y and 7ana-in- @ith t)chno,o-y2 and 7ana-inth) )nt)r+ris) 4or contro,,)d chan-) and stabi,ity 0?ha,i,, /$$$2. 6RP can b) vi)@)d as a va,uab,) r)sourc) that can +rovid) various ca+abi,iti)s to co7+ani)s that us) it. It can b) a sourc) o4 co7+)titiv) advanta-) 4or a 4ir7. Ho@)v)r, th) succ)ss4u, ado+tion o4 6RP, )s+)cia,,y in d)v),o+incountri)s ,ik) th) Phi,i++in)s, @i,, r)quir) cu,tur) 7odi4ication @ithin a 4ir7 as it invo,v)s r)vo,utionary chan-)s in th) @ay +)o+,) @i,, b) doin- thin-s, )s+)cia,,y in d)v),o+incountri)s ,ik) th) Phi,i++in)s. 3his 7odi4ication rais)s so7) issu)s @hich +oint to th) viabi,ity o4 6RPKs us) in th) Phi,i++in) cont)(t. 3his cha+t)r +r)s)nts an ov)rvi)@ o4 6RP ado+tion in th) Phi,i++in)s by )(a7inin- 4our Phi,i++in) busin)ss )nt)r+ris)s as cas) studi)s. 3h)s) 4ir7s ar) +art o4 -,oba, )nt)r+ris)s @ith +ar)nt co7+ani)s abroad. 3h) cha+t)r inv)sti-at)s th) or-ani8ationa, cont)(t @ithin @hich 6RP is a++,i)d in th) Phi,i++in) s)ttin-. It a,so ,ooks at th) +rob,)7s and issu)s rais)d by said 4ir7s in th)ir us) o4 6RP as a too, to achi)v) )44ici)ncy in th) or-ani8ation. 3h) 7aCor qu)stion that this cha+t)r addr)ss)s is Fhat or-ani8ationa, 4actors +,ay a crucia, ro,) in th) succ)ss4u, ado+tion o4 6RP in th) Phi,i++in)sZ S+)ci4ica,,y, @hat ar) th) 4orc)s that )ith)r driv) or r)strain Phi,i++in) busin)ss )nt)r+ris)s 4ro7 ado+tin- 6RPZ 3h) cha+t)rKs obC)ctiv)s ar) 0!2 to d)scrib) and ana,y8) th) 4actors and 4orc)s @hich )ith)r 4aci,itat) or r)strain 6RP ado+tion by Phi,i++in) busin)ss )nt)r+ris)sN 0/2 to +r)s)nt vi)@s and sur4ac) assu7+tions on th) va,u) o4 6RP as a too, to achi)v)
-61TEAM FLY
co7+)titiv) advanta-)N and 0#2 to h),+ +rovid) insi-hts on ho@ or-ani8ationa, 4actors such as 7ana-)7)ntK s ro,) and or-ani8ationa, cu,tur) contribut) to succ)ss4u, 6RP ado+tion.
n))ds, and ar) th)y co7+)titiv),y su+)riorZ2, scarcity 0ar) th)y i7itab,) or substitutab,), and ar) th)y durab,)Z2 and a++ro+riabi,ity 0@ho o@ns th) +ro4itsZ2. >nd)r RB=, a co7+anyKs va,uab,) r)sourc) can b) o4 thr)) 4or7s +hysica, 0,ik) stat)5o45 th)5art 7anu4acturin)qui+7)nt2, intan-ib,) 0brand na7)s or t)chno,o-ica, kno@5 ho@2, and an or-ani8ationa, ca+abi,ity )7b)dd)d in a co7+anyKs routin)s, +roc)ss)s and cu,tur) 0Dav)n+ort )t a,., !"""2.
6(t)rna, 7ark)t t)sts a,so a44)ct th) vi)@s o4 co7+ani)s in CONCEPTU d)t)r7inin- @h)th)r a r)sourc) is va,uab,) and can b) th) basis AL an )44)ctiv) strat)-y. 3h)s) FRAMEWOR 4or 4actors inc,ud) 0!2 ini7itabi,ity 0@h)th)r th) r)sourc) is hard to co+y or a 6RP ado+tion by si7i,ar so4t@ar) is di44icu,t to s+)ci4ic cr)at)2N 0/2 durabi,ity 0ho@ Phi,i++in) quick,y th) r)sourc) )nt)r+ris)s is d)+r)ciat)s2N 0#2 ass)ss)d bas)d a++ro+riabi,ity 0@ho ca+tur)s on th) r)sourc)5 th) va,u) that th) r)sourc) bas)d vi)@ cr)at)s2N and 0G2 0RB=2 o4 th) substitutabi,ity 0i4 th) r)sourc) 4ir7 and th) can b) tru7+)d by a di44)r)nt cu,tur) r)sourc)2. +)rs+)ctiv) on or-ani8ations. :n) si-ni4icant co7+on)nt in ana,y8in- th) syst)7 3h) r)sourc)5 +roc)ss)s is or-ani8ationa, bas)d vi)@ o4 cu,tur). :r-ani8ationa, cu,tur) th) 4ir7 ,ooks at is a s)t o4 i7+ortant r)sourc)s and und)rstandin-s that 7)7b)rs ca+abi,iti)s as o4 an or-ani8ation shar) about th) sourc) o4 a @hat is and @hat is not so and co7+anyKs about @hat shou,d and shou,d co7+)titiv) not b) in th) or-ani8ation +osition. 3h) 0*on8a,)s, !"&%2. It is a,so a va,u) o4 th)s) s)t o4 co77on,y shar)d @ays r)sourc)s and o4 thinkin-, b),i)vin- and ca+abi,iti)s, in doin- thin-s in th) co7+any, turn, is @h)th)r in th) 4or7a, or d)t)r7in)d by non4or7a, cont)(t 0Jocano, th) dyna7ic !"&&2. 3h) cu,tura, di7)nsion int)r+,ay o4 o4 th) or-ani8ationa, syst)7 thr)) inc,ud)s th) ),)7)nts o4 4unda7)nta, va,u)s and -uidin- b),i)4s 7ark)t 4orc)s st)77in- 4ro7 th)ir d)7and 0do 7issionIvision. =a,u)s ar) th) th)y 7))t )ss)nc) o4 a co7+anyKs custo7)rsK +hi,oso+hy 4or achi)vin-
succ)ss, +rovidin- a s)ns) o4 co77on dir)ction 4or a,, )7+,oy))s and -uid),in)s 4or th)ir day5to5day b)havior 0D)a, ; ?)nn)dy, !"&$2. B),i)4s, 4or th)ir +art, ar) )(t)rna, 0b),i)4s about ho@ to co7+)t) and dir)ct busin)ss2 or int)rna, 0about ho@ to 7ana-) and dir)ct th) or-ani8ation2. 3h)y ar) th) roots and +rinci+,)s u+on @hich th) co7+any is bui,t, th) +hi,oso+hica, 4oundation o4 th) cor+oration
and th) +r)c)+ts u+on @hich strat)-i)s -)t 4or7u,at)d 0Davis, !"&G2.
METHODOLOGY
3h) )tic 0outsid)r2 a++roach @as ado+t)d in th) study. 3his a++roach )7+hasi8)s th) outsid)rKs cat)-ori8ation o4 7)anin- and r)adin- o4 r)a,ity, 7akin- us) o4 +r)su7ab,y obC)ctiv) 7)thods such as docu7)nt ana,ysis, surv)ys, and int)rvi)@s, a7on- oth)rs. Fhi,) th)r) @)r) ,i7itations in )7+,oyin- an )7ic 0insid)r2 a++roach in th) study, a -,i7+s) o4 th) or-ani8ationa, cu,tur)s @)r) obtain)d by takin- not) o4 th) co7+any va,u)s and b),i)4s throu-h dir)ct obs)rvation and throu-h int)ractions @ith k)y in4or7ants. Assu7+tions that b)ar u+on 6RP us) @)r) -,)an)d and con4ir7)d by th) int)rvi)@s.
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<nc% 1Cebu2 Aairchi,d is a ,)adin<as) studi)s o4 4our co7+ani)sB int)rnationa, s)7iconductor thr)) 4ro7 <)bu co7+any not)d 4or +roducin+o@)r, int)r4ac), ana,o-, and on) 4ro7 7i()d si-na,, ,o-ic, and Mani,aB ar) con4i-urab,) +roduct d)vic)s. sho@n in this Its h)adquart)rs ar) in South study. 3h)s) Port,and, Main), >SA, @ith co7+ani)s 4abrication 4aci,iti)s in F)st r)+r)s)nt Jordan, PunchonN a @a4)r di) di44)r)nt +r)+aration 4aci,ity in industri)s @ith Sin-a+or)N and ass)7b,y and div)rs) t)st +,ants in <)bu, )(+)ri)nc)s o4 6RP. Int)rvi)@s o4 Phi,i++in)s, ?ua,a Lu7+ur and k)y in4or7ants, P)nan-, Ma,aysia, and Fu(i, +articu,ar,y thos) <hina. 3h) cas) +r)s)nt)d h)r) 4ocus)s on th) +,ant in 7ana-inth) th) Phi,i++in)s @hich is bas)d co7+anyKs in Mactan 6cono7ic in4or7ation Proc)ssin- Eon), La+u5,a+u syst)7s, @)r) conduct)d in th) <ity, <)bu. 4irst quart)r o4 As stat)d in its <)bu +,ant, /$$!. Aairchi,dKs visionI7ission is to Docu7)ntary )stab,ish and 7aintain a ana,ysis o4 h)a,thy and sa4) )nviron7)nt or-ani8ationa, @hi,) 7aintainin- custo7)r r)+orts and trainin- 7odu,)s s)rvic) throu-h th) @as a,so 7ad). invo,v)7)nt o4 a,, )7+,oy))s, th)r)by ),i7inatin- co7+any risks and cr)atin- a sound It shou,d b) not)d that data @ork+,ac) 4or its )7+,oy))s and a @ho,)so7) co77unity. @hich @)r) not 7ad) avai,ab,) to th) r)s)arch)rs by so7) co7+ani)s r)4,)ct th) cu,tur) as @),, as obtaininconditions in th) or-ani8ations. 3h) -a+s in in4or7ation ar) r)tain)d as th)s) s+)ak o4 th) chan-)s @hich th) co7+ani)s @)r) und)r-oinat th) ti7) o4 th) r)s)arch. Aairchi,d )7bark)d on 6RP as a cor+orat)5@id) initiativ) in !""%. It did not hav) a co7+,)t) syst)7 @h)n th) co7+any @as sti,, Nationa, S)7iconductors +rior to !""%. Inst)ad, it ado+t)d so7) 7odu,)s 0).-., accountin-2 4ro7 Nationa, S)7iconductorKs h)adquart)rs in Santa <,ara, <a,i4ornia. Fh)n th) co7+any @as bou-ht by Aairchi,d, th) n)@ 7ana-)7)nt d)cid)d to hav) an int)-rat)d so4t@ar) +acka-) to hand,) a,, as+)cts o4 th) o+)rations.
CASE STUDIES
Choosing ERP
Accordin- to Aairchi,dKs Co'pan( ;: in4or7ation syst)7s 7ana-)r, +airchil" 4e'icon"uctor8 Mr. 6sau =i,,a-on8a,o, it took
about # 7onths nu7b)rs, a7on- oth)rs, 4or 4or th)7 to s),)ctin- a syst)7. =)ndors d),ib)rat) on such as P)o+,)So4t, :rac,), and @hat 6RP syst)7 SAP @)r) )va,uat)d accordin@ou,d b) ri-ht 4or to th) 4o,,o@in- crit)ria 0a2 th) co7+any. ?)y d)7onstration o4 th) actua, +)o+,) 4ro7 syst)7B 1$UN 0b2 sub7itt)d Aairchi,dKs +ro+osa,sB/$UN and 0c2 costB di44)r)nt #$U. 7anu4acturinIn )va,uatin- th) v)ndors, sit)s 0inc,udin<)bu and P)nan-2t)a7s r)+r)s)ntin7anu4acturin- and +,annin@)nt to th) h)adquart)rs in conduct)d s)ssions to discuss South Port,and, th)ir 4indin-s. Fhi,) th)y not)d Main), and stay)d that :rac,)Ks 4inancia, 7odu,)s th)r) 4or a 7onth @)r) -ood, P)o+,)So4tKs hu7an to co7) u+ @ith a r)sourc)s syst)7 @as 4avorab,). In addition, d)tai,)d s+)ci4ication, such P)o+,)So4t )arn)d a 4)@ 7or) +oints in th) )va,uation -iv)n as nu7b)r o4 charact)rs, 4i),d oth)r consid)rations such as custo7)r bas), nu7b)r o4 ,)n-th, and ,ot 7anu4acturin- sit)s, and cost.
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Aairchi,d start)d i7+,)7)ntin6RP in Au-ust !""%, @ith th) hu7an r)sourc)s co7+on)nt in th) initia, +has). 3his @as don) in ! to / 7onthsK ti7). Inv)ntory 4o,,o@)dN ho@)v)r, th) co7+any )ncount)r)d +rob,)7s in th) s)cond +has) o4 i7+,)7)ntation. A,thou-h t)a7s, consistin- o4 a +roC)ct 7ana-)r, 4unctiona, r)+r)s)ntativ)s, IS r)+r)s)ntativ)s, and thos) 4ro7 di44)r)nt ar)as, @)r) cr)at)d, di44icu,ti)s in ,)arnin- th) syst)7 cro++)d u+. >s)rs at Aairchi,dKs shi++inar)a did not 4u,,y und)rstand th) so4t@ar) and hav) by+ass)d th) so4t@ar) @h)n di44icu,ti)s aros). 6rrors in th) a++,ication @)r) not)d. Anoth)r +rob,)7 @as th) s,o@ r)s+ons) o4 th) s)rv)r @hich @as in South Port,and, Main). Mor)ov)r, th) )(istindatabas) th)n @as not +ro+)r,y tun)d. 3his r)su,t)d in discr)+anci)s on th) inv)ntory
a7ountin- to 7i,,ions o4 do,,ars +,us add)d cost in r)conci,in- r)cords. Fhi,) at th) outs)t th) bud-)t 4or th) acquisition o4 P)o+,)So4tKs syst)7 s))7)d ,o@)r than that o4 its co7+)titors, th) i7+,)7)ntation r)su,t)d in a bud-)t @hich @as about thr)) ti7)s th) initia, a7ount b)caus) o4 )(+)ns)s 4or trainin- and custo7i8ation. 3h) bud-)t 4or Aairchi,dKs 6RP +roC)ct @or,d@id) and th) initia, cost o4 so4t@ar) @as about >S T!G to !& 7i,,ion. Actua, cost inc,udin- trav),, trainin-, and additiona, hard@ar) a7ount)d to >S TG$ to 1$ 7i,,ion. A7on- th) conc)rns that th) co7+any had to ,ook into ar) !. th) n))d 4or +r)5 ori)ntation, )s+)cia,,y a7on- th) sta44N :n,y th) 7ana-)7)nt ,)v), @as invo,v)d at th) start o4 th) +roC)ct. 3hos) in th) ,o@)r ,)v),s @)r) a++ris)d o4 th) syst)7 on,y # to G @))ks b)4or) i7+,)7)ntation. Providin- th) sta44 0as us)rs2 @ith a back-round at th) initia, sta-) cou,d hav) +r)+ar)d th)7 b)tt)r 4or th) us) o4 th) +acka-), d)cr)asin- r)sistanc) to ,)arnin- th) n)@ so4t@ar).
2. th)
i7+,ications o4 a d)c)ntra,i8) d )nviron7)nt 0such issu)s as r)s+ons) ti7) and
da ta ba s) a+ +,i ca tio n ar ) a, so d) ) 7 )d i7 +o rt an t2N an d
n- and ,oadinI7aint )nanc) and 7anu4 acturin syst)7 s. 3h) 4irst cas) i,,ustrat)s th) conc)rns o4 a ty+ica, 7anu4actur)r i7+,)7)ntin6RP in th) ),)ctronics industry. 3h) 7ain 4ocus o4 such an )nt)r+ris) in its i7+,)7)ntation o4 6RP is in th) ar)a o4 inv)ntory and 7at)ria,s 7ana-)7)nt. Si7i,ar,y, th) co7+any b)in- tak)n u+ in th) s)cond cas) a,so +rioriti8)d 7at)ria,s 7ana-)7)nt, but un,ik) th) 4irst on), th) s)cond co7+any is in th) t),)co77unications s)ctor and @ith th) add)d +)cu,iarity o4 b)in- a co7+any in transition. At th) ti7) o4 this @ritin-, it is 7)r-in- @ith an )stab,ish)d t),)co77unications co7+any in th) Phi,i++in)s. Co'pan( 9: <sla Co''unications Co <nc% 1<4L&CO$8 Cebu2 ISLA<:M @as born) in !""$ and -iv)n a s+)cia, 7andat) throu-h R)+ub,ic Act %#%/ ai7)d to d)v),o+ a 4u,,5ti7) s)rvic) t),)co77unications n)t@ork in th) Phi,i++in)s. It +ion))r)d th) countryKs 4irst di-ita, 7obi,) co77unication s)rvic) in !""G usin- *SM @or,d standard di-ita, t)chno,o-y. By th) 4irst quart)r o4 th) y)ar /$$$, Aya,a <or+oration, Sin-a+or) 3),)co7 Int)rnationa, and D)utsch) 3),)ko7 int)-rat)d th)ir r)sourc)s into ISLA<:M and *,ob) 3),)co7, +avinth) @ay 4or th) cr)ation o4 th)
3. t
h ) i n t ) r 4 a c ) b ) t @ ) ) n + r o c ) s s i
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SAP by usinth) +rivi,)-) o4 D)utsch) 3),)ko7, b)in- a *,ob)5ISLA<:M subsidiary o4 said co7+any. SAP a,so ans@)r)d th) 4a7i,y. As it is, co7+anyKs n))d 4or an th) co7+any int)-rat)d syst)7, havincontinu)s to +rovid) ,and,in) 7odu,)s 4or 4inanc), bud-)t and contro,s, 7at)ria,s 4aci,ity and 7ana-)7)nt, +,ant di-ita, 7obi,) 7aint)nanc), and sa,)s and t),)+hon) hu7an r)sourc)s. Ainanc), s)rvic)s @ith co7+os)d o4 -)n)ra, ,)d-)r, nationa, and accounts +ayab,), contro,,inint)rnationa, and +roC)ct syst)7, @as 4irst r)ach. i7+,)7)nt)d usin- Si)7)ns as th) consu,tant. Lat)r on, Ai()d ISLA<:MKs Ass)t Accountin- @as add)d. vision is to +rovid) )44)ctiv) Mat)ria,s 7ana-)7)nt, 4or its t),)co77unicati +art, @as i7+,)7)nt)d usinon s)rvic) in its And)rs)n <onsu,tin- as th) i7+,)7)ntin- consu,tant. +ursuit to contribut) to nationa, -ro@th 3h) co7+any has ado+t)d SAPKs s)rvicin- 7odu,), and -,oba, +articu,ar,y 7at)ria,s coo+)ration 7ana-)7)nt 0MM2 in 7id5 throu-h socia,, !""". 3h) +roC)ct to ado+t th) )cono7ic and SAP MM und)r5 @)nt s)v)ra, t)chno,o-ica, +roc)ss)s 0!2 ass)ss7)nt and d)v),o+7)nt. +,annin-, @hich co77)nc)d in ISLA<:MKs obC)ctiv) is that Ju,y !"""N 0/2 busin)ss d)si-n and +rototy+)N 0#2 )nd5us)r by th) y)ar trainin-N and 0G2 ro,,5out /$$1 it @i,, b) +,annin- and su++ort ,)adin- to th) 7ark)t th) actua, us) in S)+t)7b)r ,)ad)r in t),)co77unicati !""". ons in th) 3h)r) @as no c,)ar bud-)t 4or =isayas and a th) 4inanc) 7odu,). Ho@)v)r, c,os) th) bud-)t 4or SAPKs 7at)ria,s s)condIthird in 7ark)t shar) in 7ana-)7)nt 7odu,) @as +,ac)d at >S T11$,$$$ to th) s)rvic) it inc,ud) )(+)ns)s 4or th) +rovid)s to th) consu,tant 0And)rs)n r)st o4 th) <onsu,tin-, Mani,a2, trainin-, country. and custo7i8ation 0by 3h) crit)ria us)d Si)7)ns2. A +roC)ct dir)ctor and 4iv) 4u,,5ti7) consu,tants by ISLA<:M in @ork)d on th) +roC)ct. 3h) s),)ctinth) co7+anyKs I3 -rou+ and us)rs so4t@ar) @)r) 0!2 cost and 0/2 @)r) invo,v)d, startin- 4ro7 th) conc)+tua,i8ation sta-). an int)-rat)d 3his so7)ho@ )nsur)d +acka-) 4or a tota, so,ution o4 )44)ctiv)n)ss in th) i7+,)7)ntation sta-) b)caus) th) co7+anyKs busin)ss n))ds. +)o+,) at th) outs)t @)r) invo,v)d in th) +,annin- and ISLA<:M @as a-r))d on th) +roc)ss that @i,, ab,) to -)t a b) und)rtak)n. substantia, discount 4ro7 A +rob,)7 7)ntion)d by th)
k)y in4or7ant @as th) cost ov)rrun st)77in- 7ain,y 4ro7 add)d custo7i8ation )(+)ns)s. 3o contro, this, @h)n s+)ci4ications @)r) obtain)d 4ro7 th) us)rs to inc,ud) th) cost, r)quisition)rs @ou,d si-n an a-r))7)nt 4or7, 7akin- th)7 stick to @hat @as ori-ina,,y +,ann)d. Any chan-)s in th) ori-ina, bud-)t +,an @ou,d b) r)+ort)d to th) hi-h)r5u+s 0).-., th) contro,,)r2 4or Custi4ication. 3h) i7+)ndin7)r-)r @ith *,ob) 3),)co77unic ations,
ho@)v)r, is a conc)rn @hich cou,d b)ar u+on th) curr)nt so4t@ar) syst)7 @hich ISLA<:M is usin-. As s))n in th) 4irst t@o cas)s, th) co7+ani)s invo,v)d 4),t that )7+hasis in its 6RP i7+,)7)ntation shou,d b) on 7at)ria,s 7ana-)7)nt. Ho@)v)r, in th) third cas), +riority is -iv)n to 4inancia, 7ana-)7)nt and 7aint)nanc) 7ana-)7)nt. 3h) n)(t cas) sho@s +)rs+)ctiv)s in 6RP i7+,)7)ntation in th) +o@)r -)n)ration busin)ss, 7akin- it uniqu) co7+ar)d to oth)r ty+)s o4 )nt)r+ris)s -iv)n its o@n n))ds and r)quir)7)nts. Co'pan( =: Cebu Pri!ate Po,er Corporation 1Cebu2
3h) <)bu Privat) Po@)r <or+. 0<PP<2 @as born) in D)c)7b)r !""' as a Coint v)ntur) co7+any b)t@))n 6ast Asia Di)s), Po@)r <or+oration 06AD<2 and =isayan 6,)ctric <o7+any 0=6<:2. 3hrou-h th) Po@)r Purchas) A-r))7)nt )nt)r)d into by <PP< and
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on,y has on) co7+any to s)rvic) and 7ark)tin4)asibi,ity studi)s hav) a,r)ady =6<: in !""', b))n 7ad) +rior to th) s)ttin<PP< @as to construct a 1!.! u+ o4 th) +o@)r +,ant in <)bu. MF +o@)r +,ant H) add)d that th) so4t@ar) @hich on) n))ds @ou,d to s)rvic) th) r)quir)7)nts o4 basica,,y d)+)nd on th) natur) =6<: 06ast5Asia o4 on)Ks busin)ss. Po@)r Annua, 3h) 4irst thr)) cas)s d)+ict R)+ort, !""%2. <PP< is distinct th) +)cu,iariti)s o4 6RP co7+ar)d to th) i7+,)7)ntation in th) a4or)7)ntion)d 7anu4acturin-, t),)co77unications, and co7+ani)s in +o@)r s)ctors. 3h) 4ourth that its cas), 4or its +art, tack,)s o+)rations ar) 7ain,y to conv)rt 6RP i7+,)7)ntation o4 a 4u), to ),)ctricity, 7anu4acturin- and distribution co7+any. @hich is distribut)d by th) =isayan 6,)ctric <o7+any, its so,) c,i)nt. Its vision is Rto sho@cas) Ai,i+ino )(c),,)nc) in th) +o@)r -)n)ratinindustry, cr)atina bri-ht)r @or,d 4or )v)ryon).S 3hou-h it is si7i,ar to th) 4irst cas) in th) s)ns) that it is a,so in th) ar)a o4 7anu4acturin-, it is a,so di44)r)nt in that th) co7+any conc)rn)d a,so hand,)s +roduct distribution to its )nd custo7)rs. Co'pan( A: 4terling Tobacco Corporation 1$anila2
It has ado+t)d :rac,)Ks 4inancia, St)r,in- 3obacco <or+oration is a 7anu4actur)r o4 ,o@5+ric)d 7odu,)s =ir-inia ty+) ci-ar)tt)s. It is so7)ti7) in !""G5"%, 7ain,y 7aCority5o@n)d by P3 HandCaya Manda,a Sa7+o)rna 3bk., an b)caus) it @as Indon)sian co7+any @ith @hat its +ar)nt co7+any, 6ast5 busin)ss int)r)sts in r)sorts Asia, @as usin-. and ,)isur), r)tai,, and tobacco. Fh)n ask)d @hat 3h) co7+any 7anu4actur)s and 6RP 7odu,)s ar) s),,s do7)stica,,y th) 4o,,o@in7aCor brands Stork, Mi,,)r, and consid)r)d i7+ortant 4or th) Bo@,in- *o,d. It has a #.1U 7ark)t shar) o4 th) %%5 bi,,ion us) o4 th) sticksIy)ar 7ark)t. Its +,ant is co7+any, its -)n)ra, 7ana-)r, ,ocat)d in a G.& h)ctar) ,ot in Manda,uyon- <ity in Mr. Ro-)r Li7, 7)ntion)d thos) 7)tro+o,itan Mani,a. conc)rnin7ana-)7)nt o4 3h) co7+any vision is to b) No. / in th) industry. Its 7ission +)o+,), stat)7)nt o+)rations, 4inanc)s, and ,o-istics +,annin-. Pro"uct 3o +roduc) Aor <PP<, th) and s),, innovativ), ,)ast us)4u, is distinct and +r)7iu75 7ark)tin- sinc) it qua,ity tobacco
+roducts consist)n t @ith its consu7) r n))dsN Consu'ers 3o )nsur) avai,abi,ity, 4r)shn)ss, and satis4yintast) o4 its +roducts at a44ordab,) +ric)sN Custo'er?T ra"e Partners 3o +rovid) va,u)5addin-
custo7)r s)rvic), int)-rity in a,, busin)ss transactions, and 4air r)turn to its trad) +artn)rsN E'plo(ees 3o +rovid) a conduciv) @ork+,ac) 4or its +)o+,)5)nsurin- continuous +ro4)ssiona, d)v),o+7)nt and car))rs @hich ca+tur) )(+r)ssion o4 th)ir co7+)t)nci)s and r)@ardinhi-h5+)r4or7in- )7+,oy))sN
-or# Galues 3o @ork in a r)su,ts5 and custo7)r5ori)nt)d )nviron7)nt @ith a strons)ns) o4 ur-)ncy, tota, qua,ity, )(c),,)nt )()cution, +ro4)ssiona,is7, and t)a7@orkN
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Mr. Mano,ito Da-atan, country 7ana-)r and a,so -)n)ra, 7ana-)r o4 th) co7+any, @h)n Technolog( int)rvi)@)d )(+r)ss)d his b),i)4 3o )44ici)nt,y that 6RP is a v)ry va,uab,) us) r)sourc) o4 th)ir co7+any t)chno,o-y and ado+t b)st @hich cou,d -iv) th)7 co7+)titiv) advanta-) i4 +ractic)s +ro+)r,y i7+,)7)nt)d. Last @hich str)n-th)n its y)ar, th) co7+any insta,,)d :rac,) Ainancia,s and has b))n co7+)titiv) i7+,)7)ntin- its a++,ication +ositionN 7odu,)s +i)c)7)a,. 3h) 7odu,)s no@ o+)rationa, Co''unit( consist o4 -)n)ra, ,)d-)r, 3o b) a accounts +ayab,), 4i()d ass)ts, r)s+onsib,) and bud-)tin-. Accounts cor+orat) r)c)ivab,) is und)r-oinciti8)n, contributin- to i7+,)7)ntation but th) th) u+,i4t7)nt co7+anyKs bi--)st +rob,)7 is ho@ to ca+tur) sa,)s data. 3h) and co7+any s),,s th)ir +roducts d)v),o+7)nt nation@id) throu-h sa,)s7)n o4 th) out o4 !' sa,)s d)+ots. 3h) co77unityN +rob,)7 th)y 4ac) is ho@ to and ),)ctronica,,y trans7it sa,)s data 4ro7 th) 4i),d to th) h)ad 4har o44ic) in Mani,a @hich @i,, th)n ehol b) us)d as in+uts to th) "ers accounts r)c)ivab,) 7odu,). As 3o a so,ution, th)y ar) thinkin- o4 sa4))qui++in- )ach sa,)s7an @ith a uard handh),d bi,,in- co7+ut)r. 3h) th) data ca+tur)d by th) handh),d inv)s co7+ut)r @i,, th)n b) t7)n trans7itt)d to th) h)ad o44ic) t o4 in Mani,a throu-h th) Int)rn)t its or t),)+hon) ,in). shar) ho,d) 3h) ado+tion o4 6RP in St)r,inrs 3obacco <or+oration @as in throu r)s+ons) to a dir)ctiv) 4ro7 its -h Indon)sian +ar)nt co7+any, th) P3 HandCaya Manda,a int),,i Sa7+o)rna 3bk. Sa7+o)rna -)nt had :rac,) Ainancia,s runninus) and d)cid)d to ro,, it out to its o4 Phi,i++in) subsidiary. 3o assist co7+ in th) insta,,ation and any i7+,)7)ntation o4 th) r)sou so4t@ar), St)r,in- )n-a-)d th) rc)s s)rvic)s o4 Ja7)s Martin 7a(i <onsu,tancy 0no@ H)adstron-2 7i8in 4or a 4)) o4 >S T!$$,$$$. Ho@)v)r, th) )n-a-)7)nt had shar) to b) t)r7inat)d in 7idstr)a7 ho,d) du) to th) c,i)ntKs rsK dissatis4action @ith th) va,u) +ro-r)ss o4 th) . i7+,)7)ntation. Lucki,y 4or th) co7+any, at th) ti7) that
:rac,) Ainancia,s @as b)ini7+,)7)nt)d, th)y hir)d th) incu7b)nt MIS 7ana-)r, Mr. R)y Ricardo Rivor, @ho has had a @id) )(+)ri)nc) @ith 6RP, havinhi7s),4 i7+,)7)nt)d :rac,). Mr. Rivor th)r)4or) @as ab,) to 7onitor th) i7+,)7)ntation o4 th) so4t@ar) and )va,uat) th) consu,tantsK +)r4or7anc). At th) ti7) o4 this @ritin-, St)r,inis s)t to i7+,)7)nt inv)ntory and +urchasinby :ctob)r /$$! and MRP! and MRP/ by th) s)cond ha,4 o4 /$$/. 3h) int)rvi) @ @ith Mr. Rivor ),icit)d
th) 4o,,o@inco77)nts @ith r)s+)ct to th) r)quir)7)nts 4or succ)ss4u,,y i7+,)7)ntin- 6RP in St)r,in-. Fith r)-ard to th) t)chnica, as+)cts o4 i7+,)7)ntin- 6RP 0s+)ci4ica,,y :rac,) Ainancia,s2, Mr. Rivor do)s not s)) th)s) as +osin- 7uch o4 a +rob,)7. Sav) 4or th)ir bad )(+)ri)nc) @ith th) consu,tancy, th) co7+any has t)chnica,,y co7+)t)nt +)o+,) that cou,d v)ry @),, hand,) 6RP i7+,)7)ntation, as th)y ar) doin- so no@. Fhat h) s))s as a bi- +rob,)7 and a sourc) o4 -r)at 4rustration 4or hi7 is th) ,ack o4 und)rstandin- by a bi+art o4 his or-ani8ation o4 @hat 6RP r)a,,y can do 4or th) co7+any. H) s)ns)s th) di44icu,ty o4 convincin- +)o+,) invo,v)d @ith th) us) o4 th) so4t@ar) to shak) o44 o,d habits. H) s))s th) n))d 4or th)7 to ado+t a cha,,)n-in- attitud) to@ards th) @ay thin-s ar) +r)s)nt,y b)indon) in th) co7+any. H) a,so s))s th) n))d to d)v),o+ a s)ns) o4 ur-)ncy a7on- th) 7)7b)rs o4 th) or-ani8ation to r)+,ac) th) co7+,ac)ncy that s))7s to +)rvad) @ithin th) co7+any. In short, th) co7+any n))ds a chan-) in its or-ani8ationa, cu,tur). 3h) r)ason is that 6RP so4t@ar) is d)si-n)d bas)d on th) b)st
-67-
busin)ss +ractic)s. Fh)n introduc)d into a co7+any, th) so4t@ar) assu7)s that th) us)r is a,so )7+,oyinth) b)st busin)ss +ractic)s. 3h)r)4or), th)r) n))ds to b) a r)a,i-n7)nt o4 th) co7+anyKs @ay o4 doin- thin-s @ith thos) +ractic)s u+on @hich th) 6RP so4t@ar) @as bui,t. P)o+,) in th) or-ani8ation shou,d b) askin- th) qu)stion RFhy notZS inst)ad o4 RFhyZS And this r)quir)s a 7odi4ication o4 th)ir co77on thou-ht +roc)ss)s and b),i)4s. Bas)d on int)rvi)@s @ith Mr. Mano,ito Da-atan, St)r,in-Ks country H)ad and -)n)ra, 7ana-)r, and Mr. R)y Ricardo Rivor, MIS 7ana-)r, th) 4o,,o@in- co77)nts @)r) obtain)d as r)-ards th) va,u) o4 6RP as a co7+any r)sourc) and a basis 4or an )44)ctiv) strat)-y. Fhi,) various 6RP so4t@ar) can b) +urchas)d 4ro7 s)v)ra, v)ndors and th)r)4or) can b) avai,ab,) to St)r,in-Ks co7+)titors, th) sh))r cost o4 an 6RP +acka-) 0T/$$,$$$ 4or so4t@ar) and hard@ar), inc,udin- s)rv)r2 +,us th) insta,,ation 4)) 0T!$$,$$$2 @ou,d +r)v)nt ,)ss 4inancia,,y -i4t)d co7+)titors 4ro7 acquirin- and usin- it. 644)ctiv),y, this @ou,d 7ak) th) r)sourc) ini7itab,) as it cou,d on,y b) acquir)d at -r)at )(+)ns) and )s+)cia,,y i4 consid)r)d in co7bination @ith a,, th) oth)r r)sourc)s o4 St)r,in-. :n th) qu)stion o4 ho@ quick,y th) 6RP so4t@ar) ,os)s its va,u), Mr. Rivor says that its va,u) @i,, r)7ain 4or a ,on- ti7). 3his is b)caus) th) +ric) o4 th) +acka-) inc,ud)s a,, 4utur) )nhanc)7)nts and r)visions on th) so4t@ar) that th) v)ndor @ou,d 7ak). In )44)ct, th) so4t@ar) @i,, r)7ain curr)nt and u+5to5dat).
ERP AS A VALUA*LE STRATEGIC RESOURCE

3h) b)n)4it o4 i7+,)7)ntin- 6RP is to -)t a strat)-ic co7+)titiv) advanta-) 4or th) or-ani8ation 0>shasri, !"""2. 6RP cr)at)s va,u) 4or th) 4ir7 as its +ro+)r i7+,)7)ntation @i,, u,ti7at),y ,)ad to )44ici)ncy and cost savin-s 4or th) co7+any in th) ,on- run. In s+it) o4 th) -r)at cost o4 +uttin- into +,ac) an 6RP syst)7, th) 4utur) cost savin-s that it can -)n)rat) 4or th) co7+any @i,, 4ar )(c))d its cost )v)n on a discount)d basis. <o7+)titors @ho ar) non56RP us)rs ar) d)4init),y +ut at a disadvanta-) in t)r7s o4 ca+abi,iti)s as th)y continu) to carry out busin)ss activiti)s usin- ,)ss )44ici)nt and ,)ss r)s+onsiv) busin)ss +roc)ss)s. 3ab,) ! su77ari8)s th) hi-h,i-hts o4 th) 4our co7+ani)sK 6RP )(+)ri)nc). Table ;: ERP e0perience: +airchil"8 <4L&CO$8 CPPC an" 4terling Tobacco +&<RCH<L <4L&CO$ CPPC 4TERL<.G TO/&CCO
A. 6RP 6(+)ri)nc) Start
!"%%
Ainanc) B !""& Mat)ria,s Mana-)7)nt B 7id5!"""
Ainancia, Modu,) 0so7)ti7 ) !""G5 !""%2 :rac,)B Ainancia,s
/$$$
B. So4t@ar)
:rac,) B Ainancia,s P)o+,)So4t B HR, Shi++in-
:rac,)B Ainancia,s SAP s)rvicin7odu,)s B MM
:rac,)B Ainancia,s
-68-
Table ;: ERP e0perience: +airchil"8 <4L&CO$8 CPPC an" 4terling Tobacco +&<RCH<L <4L&CO$ CPPC 4TERL<.G TO/&CCO
<. Ado+tion 6(+)ri)nc)
Airst tri)d HRB !5/ 7onths Inv)ntory
/ 7onths
Phas) ! :rac,) Ainancia,s Phas) / Inv)ntory ; Purchasin- B :ct. /$$$ Phas) # MRP ! ; / B 7id5 /$$/
6sti7at)d Bud-)t
>S TG$51$ 7i,,ion 0tota, costB@or,d@id) o+)rations2 3)a7s cr)at)d 0+roC)ct 7ana-)r, r)+s 4or 4unctiona,, IS ; di44)r)nt ar)as2 0P)o+,)So4t2 Shi++in-Bus)rs s,o@ r)s+ons) 0dbas) not +ro+)r,y tun)d2
>ST11$,$$$ inc,udinconsu,tant cost
>S TG$$,$$$
A++roach
Sta44 ; I3 co,,aborat) startinconc)+tua,i8atio n sta-)N a-r)) on +roc)ss <ost ov)rrun
MIS Mana-)r in char-) o4 7onitorin- and )va,uation
Prob,)7 6ncount)r)d
Lack o4 a++r)ciation o4 6RP Sa,)s data ca+tur) ; trans7ission to h)ad o44ic) Int)-rat)d so4t@ar) @ith +ar)nt co7+any <ost
D. <onsid)ratio ns 4or <hoosinSo4t@ar)
<rit)ria a2 d)7oactua, syst)7B1$U b2 r)qu)st 4or ,on- ,istB/$U c2 costB#$U Pr)5ori)ntation In4rastructur) Int)r4ac) b)t. Proc)ssin- ; Loadin0Maint)nanc) ; Manu4acturinSyst)72 D)c)ntra,i8)d )nviron7)nt 5 r)s+ons) ti7)
Int)-rat)d +acka-) <ost
<o7+any n))d bas)d on natur) o4 th) busin)ss a
:th)r <onc)rnsI Issu)s ; N))ds
M)r-)r @ith *L:B6 Bi,,insyst)7 codinstructur) di44icu,t
:r-ani8ationa, cu,tur) 7odi4ication 6,)ctronic ca+tur) and trans7ission o4 sa,)s data
an issu)
-69-
Table ;: ERP e0perience: +airchil"8 <4L&CO$8 CPPC an" 4terling Tobacco +&<RCH<L <4L&CO$ CPPC 4TERL<.G TO/&CCO
a data unavai,ab,)
COMPARATIVE ANALYSIS OF CASES

3h) s),)ct)d co7+ani)sK vi)@s on 6RP bas)d on )(t)rna, 7ark)t t)sts ar) sho@n in 3ab,) /. Table 9: Gie,s of +airchil"8 <4L&CO$8 CPPC8 an" 4terling Tobacco on ERP =i)@s o4 6RP =i)@s o4 AAIR<HILD ISLA<:M <PP< S36RLIN* 3:BA<<:
6RP
!. Ini7itabi,ity 0r)sourc) hard to co+yI r)+,icat)2
Ini7itab,) as it cou,d b) acquir)d at -r)at )(+)ns).
Di44icu,t to co+y. Basic 0).-., 4inancia, r)quir)7)n t s2 and standard but custo7i8ati o n crucia,.
Many )nt)r+risinAi,i+inos can d)si-n syst)7 bas)d on ,oca, r)quir)7)nt . 3)chno,o-y a++ro+riat) to )nviron7)nt .
Ar)aIi7+orta nt 7odu,)B conc)rnin7-7t. o4 +)o+,), o+)rations, 4inancia, 7ana-)7)nt, ,o-istics +,anninL)ast us)4u,B 7ark)tin>s) d)+)nds on natur) o4 busin)ss Ar)aB 7at)ria,s 7ana-)7)n t B>s)r Fho,) 4ir7, )s+)cia,,y 7ana-)7)nt and 4inanc)
/. A++ro+riabi,it y 0@ho can ca+tur) th) va,u) that th) r)sourc) cr)at)s2
Ar)as 7ost us)4u,B shi++in-, inv)ntory, 4inancia,, 7anu4actur i n- L)ast us)4u,B ass)t 7ana-)7) n t Most i7+ortant us)rB 7ana-)7) n
-70-
t #. Durabi,ity 0ho@ quick,y th) r)sourc) d)+r)ciat)s2 Do)s not d)+r)ciat) quick,y. 5 standard 5 Standard a So4t@ar) @i,, r)7ain 4or a ,on- ti7).
G. Substitutabi,i t y 0can b) tru7+)d by a di44)r)nt r)sourc)2
Di44icu,t to co+y but ,oca,s can d)si-n syst)7 @ith sa7) 4unctions -iv)n +ro+)r -uidanc).
<)buanos can do th) +ro-ra7.
Q)s.
a unavai,ab,)In o t ans@)r)d by r)s+ond)nt
On <ni'itabilit(
3h) 4irst and 4ourth co7+ani)s consid)r th) cr)ation or du+,ication o4 a si7i,ar so4t@ar) quit) di44icu,t to do -iv)n r)sourc) constraints. 3h) basic so4t@ar) r)quir)7)nts ar) standard but th) crucia, +art is th) custo7i8ation. N)v)rth),)ss, th) 4irst co7+anyKs k)y in4or7ant b),i)v)s that @ith +ro+)r -uidanc), it is +ossib,) to d)si-n and d)v),o+ a so4t@ar) to +)r4or7 th) sa7) 4unctions as thos) 4ound in 6RP. 3h) s)cond and third co7+ani)s, ho@)v)r, b),i)v) that Ai,i+inos can d)si-n syst)7s @hich ar) co7+arab,) to thos) o44)r)d by v)ndors 4ro7 abroadBi4 not b)tt)r, sinc) th)s) ar) 7or) attun)d to th) r)quir)7)nts o4 ,oca, busin)ss)s. Ho@)v)r, 4undin- can b) a 7aCor constraint in d)v),o+in- such a syst)7.
On &ppropriabilit(
3h) di44)r)nc)s in +riority ar)as @h)r) 6RP can i7+act on th) or-ani8ation st)7 4ro7 th) ty+) o4 o+)rations and industry th)s) co7+ani)s ar) in. Aor th) 7anu4acturinindustry 0co7+ani)s ! and G2, co7+on)nts that a44)ct shi++in-, inv)ntory, and 4inancia,s ar) i7+ortant. Aor th) s)rvic) s)ctor 0co7+any /2, 7at)ria,s 7ana-)7)nt can b) a +riority. Aor th) +o@)r s)ctor 0co7+any #2, 7aint)nanc), hu7an r)sourc)s, o+)rations, 4inancia, 7ana-)7)nt, and ,o-istics +,annin- ar) 7or) si-ni4icant. 67+hasis is -iv)n on 7aint)nanc) o4 )qui+7)nt, @hich is critica, to th)ir busin)ss. A,, cas)s, ho@)v)r, co77on,y vi)@ 7ana-)7)nt to b)n)4it 7ost 4ro7 th) 6RP syst)7, )s+)cia,,y @h)n th)r) is a n))d to hav) an ov)ra,, +ictur) o4 th) o+)rations.
On
urabilit(
A,, co7+ani)s s)) 6RP as a r)sourc) @hich do)s not quick,y d)+r)ciat). 3h)
co7+on)nts ar) standardi8)d. Much o4 its us) @i,, d)+)nd on ho@ it is custo7i8)d to suit us)r n))ds.
-71TEAM FLY
+roc)dur)s and data 4or )nd us)rs on a,, ,)v),s. Fhi,) th) notion o4 stabi,ity 7ay b) On -,)an)d 4ro7 th) r)s+ons)s 4ubstitutabili on durabi,ity 0that th) syst)7 t( is not quick to d)+r)ciat)2, th) r)s+ons)s on th) oth)r it)7s A,, co7+ani)s do -iv) ris) to th) issu) o4 inv)sti-at)d 4,)(ibi,ity. 3h) conc)rn on b),i)v) that 6RP custo7i8ation ,)ads as a r)sourc) is co7+ani)s to )(+,or) th) di44icu,t to co+y +ossibi,ity o4 d)v),o+in- ,oca,,y @ith ,i7it)d d)si-n)d syst)7s that @ou,d ti7) and tai,or54it ,oca, r)quir)7)nts r)sourc)s, but and do a@ay @ith +rob,)7s o4 @ith +ro+)r add)d )(+)ns)s and ti7) ,oss. -uidanc), Mor)ov)r, th) 4act that th) Ai,i+inos can co7+ani)s do not 4u,,y ado+t d)si-n and a,, th) 7odu,)s in th) 6RP d)v),o+ a so4t@ar) s))7s to cha,,)n-) syst)7 to th) ho,istic and int)-rativ) +)r4or7 th) a++)a, o4 6RP as a syst)7 sa7) 4unctions. @h)n it is a++,i)d to th) :th)r 6RP Phi,i++in) s)ttin-. v)ndors can +rovid) )qua,,y ORGANIZATIONAL -ood so4t@ar). Fhat is CULTURES )ss)ntia, is that on) 7ust b) A7on- th) thin-s that hav) ab,) to id)nti4y to b) consid)r)d in th) @hich ado+tion o4 6RP by ,oca, co7+on)nt or co7+ani)s is @h)th)r or not ar)a on) v)ndor or-ani8ationa, cu,tur)s ,)ad to is stron- at. 3h) conduciv) )nviron7)nts 4or s)cond n)@ t)chno,o-ica, co7+any, 4or its a++,ications. =a,u)s that +art, vi)@s +)r7)at) th) or-ani8ations Ai,i+inos as can +rovid) c,u)s on th) +oss)ssinth) )44)ctiv) us) o4 r)sourc)s or ca+abi,ity to too,s such as 6RP. 3h) visionI d)si-n its o@n 7ission and or-ani8ationa, +ro-ra7s, @hich va,u)s o4 th) co7+ani)s 7ay b) )qua,,y studi)d r),)vant to 6RP ar) co7+)titiv) as sho@n in 3ab,) #. thos) by 4or)i-n v)ndors. 3h) 4indin-s h)r) su--)st that 6RP is -)n)ra,,y vi)@)d as a va,uab,) r)sourc) by raisinor-ani8ationa, )44ici)ncy. 3his is achi)v)d throu-h standardi8inTable =: Gision?'ission an" organi*ational !alues of selecte" co'panies
&bout the Organi*ati o n
+airchil"
<slaco'
CPPC
4terling Tobacco
=ISI:NI
3o )stab,ish
Has a socia,
3o sho@cas)
3o b) no. / in
MISSI:N
and 7aintain a h)a,thy and sa4) )nviron7)nt @hi,) 7aintainincusto7)r s)rvic) throu-h th) invo,v)7)nt o4 a,, )7+,oy))s, th)r)by ),i7inatin-
r)s+onsibi,ity to +rovid) )44)ctiv) t),)co77unicatio n s)rvic) in its +ursuit to contribut) to nationa, -ro@th and -,oba, coo+)ration throu-h socia,, )cono7ic and t)chno,o-ica, d)v),o+7)nt.
Ai,i+ino )(c),,)nc) in th) +o@)r -)n)ration industry, cr)atin- a bri-ht)r @or,d 4or )v)ryon).
th) industry.
-72-
o r Table =: Gision?'ission an" organi*ational !alues of selecte" co'panies &bout the Organi*ati o n +airchil" i t s ) 7 + , o y ) ) s a n d a @ h o , ) s o 7 ) c o 7 7 u n i t y . 3i7) is )ss)ntia,. ?no@,)d-) is i7+ortant. >s)r +artici+ation )nsur)s s7ooth i7+,)7)ntation. I3 has a su++ortinro,). 6(c),,)nc), r)s+onsibi,ity, )7+o@)r7)n t , and sa4)ty ar) o4 ut7ost conc)rn. 3i7) and Rcan5doS attitud) ar) i7+ortant.
c o 7 + a n y r i s k s a n d c r ) a t i n a s :R*. o =AL>6S u n d
@ o r 3h) or-ani8ationa, va,u)s o4 kth) 4our co7+ani)s ar) + -,)an)d 4ro7 th)ir , visionI7ission stat)7)nts, as a c@),, as 4ro7 th) ans@)rs )-iv)n by r)s+ond)nts durinth) int)rvi)@s.
A,, 4our co7+ani)s )7+hasi8) )(c),,)nc) in th) or-ani8ation. A,, co7+ani)s ar) r)su,ts5ori)nt)d. In this r)-ard, in4or7ation and ti7),in)ss ar) k)y to achi)vinthis. P)o+,) ar) r)-ard)d as va,uab,) r)sourc)s. Positiv) attitud)s and )44)ctiv) +artici+ation contribut) to attainin)(c),,)nc) and sa4)ty in th) +)r4or7anc) o4 @ork. Said co7+ani)s a,so )(+)ri)nc) cha,,)n-)s to th)s) va,u)s 4ro7 so7) or-ani8ationa, 7)7b)rs @ho ar) r)sistant to chan-) and ar) ,)ss ti7)5 conscious. 3h)s) cha,,)n-)s st)7 4ro7 n)-ativ) assu7+tions such as 4)ar o4 n)@ t)chno,o-y and ,)arninso7)thin- n)@ as ti7)5 consu7in-. It is si-ni4icant to ov)rco7) th)s) assu7+tions sinc) th) )44)ctiv) us) o4 a t)chno,o-ica, too, such as 6RP is
hin-)d on a 7ind5s)t that is o+)n to chan-).
A++ar)nt,y, th) 7ana-)7)nt ,)v), has int)rna,i8)d th) va,u)s that ar) r),)vant 4or 6RP to @ork. Fhat is n))d)d is to 7ak) th)s) va,u)s +)rvasiv) throu-hout th) or-ani8ation so that oth)r 7)7b)rs @ho ar) ,ik)@is) us)rs o4 th) so4t@ar) @ou,d b) ab,) to 7a(i7i8) th) b)n)4its to b) d)riv)d 4ro7 it.
CONCLUSION
In th) Phi,i++in) cont)(t, a nu7b)r o4 4actors hav) to b) consid)r)d 4or 6RP to b) succ)ss4u,,y i7+,)7)nt)d. Fhi,) 6RP +ro7is)s th) b)n)4its o4 an int)-rat)d syst)7, co7+ani)s int)r5 vi)@)d on,y had +artia, i7+,)7)ntations o4 th) +acka-). 3his +artia, i7+,)7)ntation o4 6RP do)s not r)a,,y +rovid) th) tru) b)n)4its on) @ou,d )(+)ct 4ro7 6RP. :n) o4 th) 7ain constraints is th) hu-) custo7i8ation cost to b) incurr)d in usinRcann)dS a++,ications 4ro7 v)ndors. Hi-h costs inc,ud) hirin- o4 4or)i-n consu,tants as @),, as trainin- o4 us)rs. <ost ov)rruns ar) usua,,y )(+)ri)nc)d. S),)ctinth) a++ro+riat) co7+on)nts to b) a++,i)d to th) or-ani8ation is a k)y conc)rn. <usto7i8ation has a,@ays b))n 7)ntion)d as a +rob,)7 by th) Phi,i++in) co7+ani)s
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studi)d. 3his 7ay b) so,v)d, ho@)v)r, by d)si-nin- 6RP a++,ications ,oca,,y and custo7i8inth)7 4or )ach +articu,ar industry. 3his @ou,d )ntai,, thou-h, a substantia, a7ount o4 study +)r industryBth) cost in ti7) th)s) co7+ani)s ar) r),uctant to s+)nd on.
tab,), th) 4actors that )nsur) succ)ss4u, 6RP ado+tion a7on- Phi,i++in) busin)ss )nt)r+ris)s ar) 7ana-)7)nt su++ortN invo,v)7)nt o4 or-ani8ationa, 7)7b)rs 4ro7 a,, ranks in th) +,annin- and i7+,)7)ntation sta-)sN v)ndor su++ortN and us)r )ducation.
3hos) that inhibit 6RP a++,ication ar) hi-h costN ,ack o4 a++r)ciation o4 th) so4t@ar)N di44icu,ti)s in a++,ication to th) ,oca, )nviron7)ntN and th) qu)stion o4 sustainabi,ity -iv)n th) situation o4 th)s) co7+ani)s, @hich ar) )ss)ntia,,y in a transition sta-). Most o4 th) co7+ani)s studi)d ar) und)r-oin- 7)r-)rs, s)+aration 4ro7 +ar)nt co7+ani)s, and tak)ov)rs. Fhi,) 6RP is us)d as a +,annin:n) @ou,d a,so too,, th) qu)stion that aris)s is notic) that 6RP ho@ can a co7+any )44)ctiv),y has a,@ays b))n +,an i4 th) status o4 th) associat)d @ith or-ani8ation its),4 is unc)rtainZ
v)ndors such as :rac,), SAP, and :n a ,ar-)r sca,), th) stat) o4 P)o+,)So4t. I4 6RP th) nationa, )cono7y a,so has is vi)@)d 7or) as an )44)ct on th) sustainabi,ity a conc)+t, 7or) o4 ,oca, co7+ani)s, @hich in co7+ani)s in th) turn s+),,s th) 4utur) o4 6RP Phi,i++in)s, )v)n i7+,)7)ntation by Phi,i++in) s7a,,)r on)s, can busin)ss )nt)r+ris)s. Durinth) 6strada ad7inistration, 4or i7+,)7)nt it instanc), th) Phi,i++in) ,oca,,y, not Cust )cono7y su44)r)d h)avi,yB th) bi)nt)r+ris)s @hich 4irst 4ro7 th) Asian 4inancia, crisis, a4t)r @hich ,o@ inv)stor ar) 4inancia,,y con4id)nc) 7ark)d th) )nd o4 ca+ab,) o4 /$$$ du) to scanda,s o4 -ra4t sustainin- it. and corru+tion in -ov)rn7)nt Bas)d on th) invo,vin- th) 4or7)r )(+)ri)nc)s o4 +r)sid)nt. 3his )nviron7)nt s),)ct)d -)n)ra,,y did not au-ur @),, co7+ani)s, 4or busin)ss in th) Phi,i++in)s. 3ab,) G sho@s Aor an )(+)nsiv) +roC)ct such th) 4actors as 6RP to b) i7+,)7)nt)d by that driv) and a co7+any, 7uch d)+)nds on r)strain th) 4inancia, viabi,ity o4 th) Phi,i++in) cor+oration to run it -iv)n this busin)ss ,ar-)r +ictur) o4 th) )cono7y. )nt)r+ris)s 4ro7 ado+tin6RP. Table A: Push an" pull As sho@n in th) factors in ERP a"option P>SH AA<3:RS
P>LL AA<3:RS +&<RCH<L <4L&CO$ CPPC 4TERL<.G TO/&CCO
M-7t. su++ort L)arnincurv)
Mana-)7)nt su++ort Invo,v)7)nt o4 7-7t., sta44, I3 on th) dra@inboard
Mana-)7) nt su++ort P)o+,)Ks @i,, and ca+abi,ity to d)v),o+ o@n syst)7 3ransition sta-) R)sourc) constraints
Mana-)7)nt and v)ndor su++ort <o7+)t)nt +)o+,) us)r )ducation
<ost 6ducatin+)o+,) A++,ication to ,oca,
<ost 3ransition sta-)B M)r-)r brin-s unc)rtainty
<ost R)sistanc) to chan-)
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th) 6RP a++,ication and ar) con-ru)nt @ith co7+any obC)ctiv)s usin- 6RP as a too,. Table A: Push Mor)ov)r, th) co77on an" pull factors +rob,)7 o4 hi-h cost can )asi,y in ERP a"option b) r)7)di)d i4 6RP i7+,)7)ntation is a 7ana-)7)nt initiativ), as in th) cas) o4 th) 4our co7+ani)s cit)d. Aundin- su++ort is s)cur)d i4 7ana-)7)nt is convinc)d o4 6RPKs b)n)4its and th) +roC)ct is a dir)ctiv) It 7ay a,so b) 4ro7 th) to+. not)d that th) crucia, 4actors AREAS FOR FUTURE h)r) ar) not so 7uch th) STUDY t)chnica, issu)s but 7or) o4 th) 3h) cas) studi)s +rovid) an or-ani8ationa, insi-ht on or-ani8ation, @hich on)s. In th) is a 7aCor consid)ration in th) Phi,i++in) 6RP discours). Autur) studi)s s)ttin-, it s))7s shou,d consid)r or-ani8ationa, that th) cu,tur) adCust7)nts n))d)d t)chnica, as+)cts 4or )44)ctiv) 6RP ar) not th) i7+,)7)ntation, )s+)cia,,y in ov)rridind)v),o+incountri)s. Aurth)r 4actors in th) studi)s 7ay )7+hasi8) th) succ)ss4u, 4actors a44)ctin- 6RP ado+tion ado+tion o4 6RP. by s7a,,5 and 7)diu75sca,) Fhat r)a,,y )nt)r+ris)s as d)4in)d in th) s+),,s th) Phi,i++in) or Asian cont)(t. di44)r)nc) ar) S)ctora,5 and industry5s+)ci4ic ,)ad)rshi+I7ana cas) studi)s 7ay a,so b) -)7)nt su++ort, conduct)d to d)v),o+ 7od),s 4undini,,ustratin- 6RPKs contribution r)sourc)s, and to rais) Asian 4ir7sK or-ani8ationa, co7+)titiv) advanta-). cu,tur). 3h) ro,) o4 ,)ad)rshi+I7ana REFERENCES -)7)nt is vita, in Dav)n+ort, S., Hubbard, *., L)@is, *., Mork),, A. and a44)ctinStock+ort, *. 0!"""2. or-ani8ationa, cu,tur) chan-), Australian and #e- /ealand Strategic Management' as @),, as in Concepts, Conte1t and Cases. +rovidinSydn)y Pr)ntic) Ha,,. 4undinDavis, S. 0!"&G2. Managing r)sourc)s to Corporate Culture. N)@ Qork sustain 6RP. L)ad)rshi+I7an Ba,,in-)r. a-)7)nt can D)a,, 3. and dir)ct th) ?)nn)dy, A. 0!"&$2. chan-) in Corporate Cultures' assu7+tions, The "ites and "ituals va,u)s, b),i)4s, of Corporate $ife. and b)havior o4 Boston, MA Addison5 or-ani8ationa, F)s,)y. 7)7b)rs that *on8a,)s, R. 0!"&%2. ar) su++ortiv) o4 Corporate Culture
Modification' A (uide 4or Managers. Mani,a Nationa,. Jocano, A. L. 0!"&&2. To-ards eveloping A 4ilipino Corporate Culture. Lu)8on <ity Pun,ad R)s)arch Hous). ?ha,i,, 3. 0/$$$2. Management !f Technology' The <ey To
Competitiveness and .ealth Creation. Boston, MA Mc*ra@5Hi,,. Ptak, <. and Schra-)nh)i7, 6. 0/$$$2. E"P' Tools, Techni6ues, and Applications or Integrating The Supply Chain. Boca Raton, AL <R< Pr)ss LL<. Sada-o+an, S. 0!"""2. 3h) @or,d o4 6RP. In Sada-o+an, S. 06d.2, E"P' A Managerial Perspective. N)@ D),hi, India 3ata Mc*ra@5 Hi,,. >shasri, 3. S. 0!"""2. 6RP Brid-inbusin)ss and t)chno,o-y. In Sada-o+an, S. 06d.2, E"P' A Managerial Perspective. N)@ D),hi, India 3ata Mc*ra@5Hi,,.
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Chap ter G: The <'p act of Ente rpris e Reso urce Plan ning 4(st e's on Orga ni*at ional Effec ti!en ess: &n &rtif act E!al uatio n
S@)d)n &n"reas /orell 3)tra Pak In4or7ation Mana-)7)nt, S@)d)n <o+yri-ht . /$$/, Id)a *rou+ Pub,ishin-. 6nt)r+ris) r)sourc) +,annin06RP2 syst)7s hav) an or-ani8ationa, i7+act and ar) in 7ost cas)s i7+,)7)nt)d to i7+rov) or-ani8ationa, )44)ctiv)n)ss. Shortco7in-s in curr)nt r)s)arch 7ak) it di44icu,t to conc,ud) ho@ an or-ani8ation 7ay b) a44)ct)d. 3his +a+)r +r)s)nts an arti4act )va,uation o4 th) 4unctiona,ity and +)rc)iv)d b)n)4its o4 6RP syst)7s. 3h) )va,uation is bas)d on th) co7+)tinva,u)s 7od),. 3h) )va,uation sho@s that 6RP syst)7s su++ort )44)ctiv)n)ss crit)ria 0such as contro, and +roductivity2 r),at)d to int)rna, +roc)ss and rationa, -oa, 7od),s. 3h) )va,uation a,so +oints out @)akn)ss)s in 6RP syst)7s and )s+)cia,,y in ar)as r),at)d to hu7an r),ations and o+)n syst)7s 7od),s. 3h) r)su,t o4 th) )va,uation is us)d to discuss th) i7+act o4 6RP syst)7s on or-ani8ations and is +r)s)nt)d as a s)ri)s o4 hy+oth)s)s.
INTRODUCTION
3h) t)r7 )nt)r+ris) r)sourc) +,annin- 06RP2 syst)7s 0a,so r)4)rr)d to as )nt)r+ris) syst)7s2 is us)d as a -)n)ric ,ab), 4or ,ar-) int)-rat)d a++,ication so4t@ar) +acka-)s. 3h)s) in4or7ation syst)7s ar) by 7any r)-ard)d as a dr)a7 co7) tru) and ar) in 7ost cas)s i7+,)7)nt)d in ord)r to i7+rov) or-ani8ationa, )44)ctiv)n)ss 0Dav)n+ort, !""&N Dav)n+ort, /$$$N Markus ; 3anis, /$$$2. OVERVIEW Studi)s sho@ i7+rov)d or-ani8ationa, )44)ctiv)n)ss such as busin)ss +roc)ss Jonas He"'an i7+rov)7)nt, incr)as)d Lund >niv)rsity, +roductivity, and i7+rov)d
int)-ration b)t@))n busin)ss units 0Dav)n+ort, /$$$2. Dav)n+ort 0!""1, +. #/2 d)scrib)d th) i7+,)7)ntation o4 6RP as Rperhaps the -orld2s largest e1periment in )usiness changeS and 4or 7ost or-ani8ations Rthe largest change pro3ect in cost and time that they have underta+en in their history.S 3h) sa7) studi)s a,so d)scrib)d cas)s @h)r) th) i7+,)7)ntation
4ai,)d and th) i7+act had th) o++osit) a44)ct on or-ani8ationa, )44)ctiv)n)ss. 3h) on,y thin- kno@n 4or c)rtain is that i7+,)7)ntation is v)ry r)sourc)5consu7in-. 3h) i7+act and b)n)4it o4 th) i7+,)7)ntation is unc,)ar 0And)rsson ; Ni,sson, !""'2. 3h) abi,ity to d)t)r7in) th) i7+act o4 such syst)7s on or-ani8ationa, )44)ctiv)n)ss @ou,d b) o4 -r)at i7+ortanc) 4ro7 both th)or)tica, and +ractica, +)rs+)ctiv)s. Ho@)v)r, this d)t)r7ination is di44icu,t 4or s)v)ra, r)asons !2 it is not +ossib,) to dra@ an )(+,icit conc,usion 4ro7 th) IS b)n)4it r)s)arch 0).-., D)Lon) ; McL)an, !""/N S)ddon, Sta+,)s, Patnayakoni, ; Bo@t),,, !"""2 on th) i7+act o4 6RP syst)7sN /2 th) inconsist)nt and contradictory 4indin-s 4ro7 r)s)arch on in4or7ation t)chno,o-y and or-ani8ations
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0Rob)y ; Boudr)au, !"""2N #2 3h) ,ack o4 r)s)arch on 6RP syst)7s 0Shanks, S)ddon, ; Fi,,cocks, /$$!2 7ak)s it di44icu,t or )v)n i7+ossib,) to dra@ conc,usions @ith r)-ards to a s+)ci4ic or-ani8ationN G2 th) co7+,)(ity and co7+r)h)nsiv)n)ss o4 6RP syst)7s as suchN and 12 th) 7)asur)7)nt o4 th) )44)ctiv)n)ss o4 an or-ani8ation is an ),usiv), co7+,)( and socia,,y construct)d conc)+t 0<a7+b),,, !"%%2. 3h) obC)ctiv) o4 this cha+t)r is to )va,uat) th) 4unctiona,ity o4 6RP syst)7s in ord)r to incr)as) th) und)rstandin- o4 ho@ 6RP syst)7s 7ay a44)ct or-ani8ations and or-ani8ationa, )44)ctiv)n)ss. 3h) n)(t s)ction introduc)s chan-)s in th) r)quir)7)nts s+)ci4ication and ar-u7)nts 4ro7 IS r)s)arch as a back-round 4or conductin- an arti4act )va,uation o4 6RP syst)7s. 3h) subs)qu)nt s)ctions +r)s)nt th) int)r+r)tiv) arti4act5)va,uation a++roach, @ith an )va,uation 4ra7)@ork bas)d on th) co7+)tinva,u)s 7od), 0Luinn ; Rohrbau-h, !"&!, !"&#2, th) 6RP syst)7 in qu)stion 0SAP RI#2, and th) outco7) o4 th) )va,uation. In th) 4ina, s)ction th) r)su,ts ar) su77ari8)d and +r)s)nt)d as a s)ri)s o4 hy+oth)s)s s+)cu,atin- ho@ 6RP syst)7s 7i-ht a44)ct or-ani8ations and or-ani8ationa, )44)ctiv)n)ss. Autur) r)s)arch dir)ctions ar) a,so su--)st)d.
*AC-GROUND
3h) r)quir)7)nts s+)ci4ication is a +rob,)7atic ar)a in 7ost IS i7+,)7)ntations 0Jackson, !""12 sinc) R-e have a tendency to focus on the solution, in large part )ecause it is easier to notice a pattern in the systems that -e )uild than it is to see the pattern in the pro)lems -e are solving that lead to the patterns in our solutions to themS 0Ra,+h Johnson in Jackson, !""1, +. /2. 3his a++,i)s in +articu,ar to th) i7+,)7)ntation o4 6RP syst)7s 0Bor),, ; H)d7an, /$$$N Ro,,and ; Prakash, /$$$2. :n) o4 th) r)asons 4or this is th) di44)r)nc) b)t@))n i7+,)7)ntations, bas)d on th) co7+arison o4 traditiona, in4or7ation syst)7 d)v),o+7)nt 7)thods and th) +roc)ss o4 s),)ctin- and i7+,)7)ntin- 6RP syst)7s. Fh)r) it no ,on-)r a++)ars 7)anin-4u, to s+)ak about ana,ysis and d)si-n in a traditiona, 4ashion, b)caus) th)r) is no ana,ysis and d)si-n +roc)ss as such. Inst)ad, an )va,uation o4 th) r)4)r)nc) 7od), is 7ad) and th) 4unctiona,ity i7b)dd)d in th) 6RP syst)7 is consid)r)d, 4o,,o@)d by a s),)ction +roc)ss. Aor )ach 6RP syst)7 0or +art o4 an 6RP syst)72 consid)r)d, th)r) ar) thr)) basic o+tions acc)+t, acc)+t @ith chan-)s, or r)C)ctBa,, @ith di44)r)nt or-ani8ationa, cons)qu)nc)s. 3h)s) o+tions 7ust b) consid)r)d in ,i-ht o4 th) r)quir)7)nts s+)ci4ication, @hich in turn has to r)4,)ct this 0Bor),, ; H)d7an, /$$$2. 3h)s) di44)r)nc)s ar) i,,ustrat)d in Ai-ur) !. 3his ,in) o4 r)asonin- is a,so a++,icab,) to i7+,)7)ntations o4 u+-rad)s and )(t)nsions.
+igure ;: <o7+arison o4 traditiona, in4or7ation syst)7 d)v),o+7)nt 7)thods and th)
+roc)ss o4 s),)ctin- and i7+,)7)ntin- 6RP syst)7s
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4or doin- so. Anoth)r r)ason 4or @ritin- this cha+t)r on )va,uatin- 6RP syst)7s co7)s 4ro7 th) conc)+tua, thinkin- o4 IS r)s)arch)rs, such as Hirschh)i7 and Aarb)y. Hirschh)i7 and S7ithson 0!"""2 conc,ud) in th)ir ,it)ratur) surv)y o4 IS )va,uation that th) 4ocus on too,s and t)chniqu)s 4ro7 a +ositivistic a++roach has +rovid)d th) 4oundation 4or traditiona, IS )va,uation. 3h) r)su,t has b))n Ra more =technical2 interpretation of evaluationS 0Hirschh)i7 ; s7ithson, +. G$/2B+art,y b)caus) o4 th) @id)s+r)ad b),i)4 that IS ar) 4unda7)nta,,y t)chnica, syst)7s. 3h)y ar-u) that o7ittin- th) socia, do7ain 7ak)s it un,ik),y to +roduc) a tru) or 7)anin-4u, )va,uativ) +ictur) and that a 7or) int)r+r)tiv) IS +)rs+)ctiv) s))7s to b) th) b)st v)hic,)
Aarb)y, Land, ; 3ar-)tt 0!""12 +ro+os) a 7od), kno@n as th) b)n)4its )va,uation ,add)r, @hich th)y c,ai7 r),at)s s+)ci4ica,,y to th) n))d 4or )va,uation. 3h)y ar-u) that t@o o4 th) 7ost in4,u)ntia, 4actors @h)n s),)ctinan )va,uation 7)thod ar) a++,ication and obC)ctiv) 0o4 chan-)2. A c,assi4ication o4 Rthe uses of information systems may therefore )e of fundamental importance in selecting suita)le evaluation methodsS
0Aarby )t a,., !""1, +. G!2. 3h)ir 7od), is bas)d on th) +)rc)+tion that it is +ossib,) to c,assi4y th) di44)r)nt IS a++,ications bas)d on th) di44)r)nt ty+)s o4 or-ani8ationa, chan-) that th)y ar) associat)d @ith. It consists o4 )i-ht run-s, inc,udin- 7andatory chan-)s, auto7ation, dir)ct va,u) add)d syst)7s, MIS and DSS, in4rastructur), int)ror-ani8ationa, syst)7s, strat)-ic syst)7s, and busin)ss trans4or7ation. 3h)ir c,assi4ication is not ri-id but i7+,i)s that hi-h)r ,)v),s o4 chan-) incr)as) th) ,)v),s o4 +ot)ntia, b)n)4it as @),, as th) unc)rtainty o4 outco7). Pot)ntia, b)n)4its and th) ,)v), o4 unc)rtainty ar) both cu7u,ativ), thus syst)7s c,assi4i)d on a c)rtain stratu7 7ay hav) a,, th) b)n)4its 0and accu7u,at)d unc)rtainty2 4ro7 any or a,, o4 th) strata b),o@. 3h)y conc,ud) that 4or th) i7+,)7)ntation o4 syst)7s on th) )i-ht run- >)enefits stem from the transformation as a -hole7 IT provides only one component of -hat is often a comple1 series of changes7 It is not possi)le to attri)ute a portion of the )enefits gained to any one factorS 0Aarb)y )t a,., !""1, +. G"2. F) conc,ud) that in th) ta(ono7y o4 Aarb)y )t a,., 6RP syst)7s ar) on th) )i-ht run- and that th)y hav) th) +ossib,) b)n)4its and
accu7u,at)d and organi%ational formsS 0+. unc)rtainty o4 a,, !#2 and su--)st that I3 th) strata b),o@. inv)st7)nts can b) consid)r)d 3h)r)4or), it is as +art o4 a chain o4 )v)nts a hi-h,y un,ik),y s)nior 7ana-)7)nt d)cision that any t@o 0WI3 *ov)rnanc)K2 has to b) i7+,)7)ntations 7ad) that ,)ads to a s+)ci4ic @i,, hav) id)ntica, investment in I3, @hich th)n r)quir)7)nts or n))ds to b) deployed 0s),)ct)d cons)qu)nc)s, and i7+,)7)nt)d2 b)4or) it )v)n i4 th)y ar) can b) used by an or-ani8ation bas)d on th) to )nhanc) its performance. In sa7) -)n)ric th)ir 4irst +ostu,at), Mc?))n )t so4t@ar) a,. 0/$$$2 stat) that R.ith the +acka-)s. Fhi,) focus at the enterprise level, it th) +ot)ntia, should )e possi)le to capture b)n)4its 7i-ht b) the effects of the total IT articu,at)d, investment on the d)t)r7ination o4 organi%ation2s performance th) actua, provided that the performance b)n)4its 4ro7 measure is related to the i7+,)7)ntin- an usage of the technology? 0+. 6RP syst)7 is !12. 3h) d),i7itation o4 ,)v), o4 di44icu,t to ana,ysis to an )ntir) )nt)r+ris) 4or)s)). is bas)d on th) antici+at)d +ossibi,iti)s to obtain r),)vant 7)asur)7)nts o4 cost and Mc?))n and +)r4or7anc) co7bin)d @ith a Par)nt 0!"""2 ho,istic +)rs+)ctiv) on th) +ro+os)d a d)cision +roc)ss. Inv)stin- in Rsu+ra5 an 6RP syst)7 is a to+5 4ra7)@ork 7ana-)7)nt d)cision. It @i,, ,ab),,)d hav) an i7+act on th) cu,tur), :r-ani8ationa, +roc)ss)s, structur)s, and 6cono7ics.S strat)-i)s o4 an or-ani8ation 3h)y +ro+os) that th)ir 7od), 0Dav)n+ort, !""&2 and Rcan apply to all th)r)4or) th) on,y suitab,) sorts of pro3ects ,)v), o4 ana,ysis is th) )nt)r+ris) ,)v),.
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in IS r)s)arch 0Jbrvin)n, !""", /$$$N L)), /$$$N March ; !""12. An arti4act can ARTIFACT S7ith, b) a construct 0conc)+t2, EVALUATIO 7od),, 7)thod, t)chniqu), instantiation o4 an in4or7ation N syst)7, or an 6RP syst)7. In An )va,uation o4 arti4act5bui,din- r)s)arch, th) th) i7+act o4 6RP 4ocus is on qu)stions such as Is it +ossib,) to bui,d a c)rtain syst)7s on arti4actN ho@ shou,d a c)rtain or-ani8ationa, arti4act b) d)4in)d and ho@ can )44)ctiv)n)ss is di44icu,t. So7) o4 @) d)v),o+ itZ In )va,uation r)s)arch, qu)stions ,ik) ho@ th) +rob,)7s )44)ctiv) and )44ici)nt is this @hich aris) ar) arti4act ar) +os)d and th) co7+,)(ity addr)ss)d. Aor this on) n))ds and co7+r)h)nsiv)n) both crit)ria and 7)asur)7)nts to )va,uat) th) )44)ctiv)n)ss ss o4 6RP syst)7s, th) ,ack and )44ici)ncy o4 th) arti4act. 3o this )nd @) chos) th) o4 )7+irica, r)s)arch on th) co7+)tinva,u)s 7od), 0<=MN Luinn ; Rohrbau-h, !"&!, i7+act o4 6RP !"&#2. 3h)r) @)r) thr)) 7ain syst)7s on r)asons 4or this choic) Airst, it or-ani8ationa, )44)ctiv)n)ss, and is a @),,5)stab,ish)d 4ra7)@ork th) shortco7in-s d)v),o+)d and )7+irica,,y t)st)d in or-ani8ationa, o4 traditiona, r)s)arch 0Bu)n-)r, Da4t, 7u,tivariat) 7)thods 0such as <on,on, ; Austin, !""'2, 4actor ana,ysis2 7ana-)7)nt r)s)arch 0Hart ; Luinn, !""#2, and IS r)s)arch 4or so,vin+rob,)7s r),at)d 0SbbksCbrvi ; 3a,vin)n, !""'2 to or-ani8ationa, ov)r a nu7b)r o4 y)ars. S)cond, it is r),at)d to th) )44)ctiv)n)ss 0<a7+b),,, !"%%2. critica, constructs o4 individua, and or-ani8ationa, 3hus, 4o,,o@inHirschh)i7 and )44)ctiv)n)ss. 3hird, it is S7ithson 0!"""2, addr)ssinth) or-ani8ationa, ,)v), o4 ana,ysis. Lat)r v)rsions @) a++roach)d th) +rob,)7 in an and )(t)nsions o4 <=M 4or int)r+r)tiv) @ay ass)ssin- 7ana-)7)nt co7+)t)nc) and dia-nosinby a++,yin- an arti4act5)va,uation or-ani8ationa, cu,tur) @)r) ass)ss)d, but th)y @)r) not a++roach. 3his 4ound to b) a++ro+riat) 4or this r)s)arch a++roach b),on-s )va,uation du) to th)ir shortco7in-s r)-ardin- ,o@)r5 to a r)s)arch str)a7 str)ssin- ,)v), )44ici)ncy. arti4act uti,ity, Co'peting Galues $o"el @hich can b) broad,y div)d into arti4act5bui,din- >nti, th) d)v),o+7)nt o4 contin-)ncy th)ory, and arti4act5 or-ani8ationa, )44)ctiv)n)ss @as )va,uation +)rc)iv)d as an a++,i)d ar)a, not a++roach)s 0Jbrvin)n, !""", a th)or)tica, issu) in /$$$2. A,thou-h or-ani8ationa, th)ory. critica,, it is not <ontin-)ncy th)oristsK addition to @),,5r)+r)s)nt)d th) d)v),o+7)nt o4
or-ani8ationa, do7inat)d or-ani8ationa, )44)ctiv)n)ss as a )44)ctiv)n)ss studi)s d)s+it) th)or)tica, issu) criticis7s 0Ha,,, !"&$2 that or-ani8ations hav) 7u,ti+,) @as ar-u7)nts -oa,s 0<a7)ron, !"&!2 and that so7) that crit)ria 4or 7)asurinor-ani8ationa, )44)ctiv)n)ss ar) a7bi-uous structur)s @)r) 7or) suitab,) than 0M)y)r, !"&12. A,t)rnativ) oth)rs to c)rtain a++roach)s to or-ani8ationa, )44)ctiv)n)ss studi)s hav) tasks and )nviron7)nts, i.)., )7)r-)d to d)a, @ith both th)s) +rob,)7s and oth)rs, contin-)ncy ).-., th) r)sourc) a++roach 4actors 0Scott, 0<unnin-ha7, !"%&2, th) !""/2. 3h) int)rna, +roc)ss a++roach qu)stion that 0:stro44 ; Sch7itt, !""#2, th) 4o,,o@)d @asB stak)ho,d)r a++roach 03usi, suit)d in @hat s)ns)Z 3h) ans@)r !""$2, and th) co7+)tinva,u)s 7od), 0Luinn ; -iv)n to this qu)stion in 7ost Rohrbau-h, !"&!, !"&#2. cas)s @as in t)r7s D)s+it) th)s) )44orts, it is sti,, di44icu,t and +ot)ntia,,y o4 )44)ctiv)n)ss controv)rsia, to quanti4y 0Scott, !""/2 or 0<a7)ron ; Fh)tt)n, !"&#2. +)r4or7anc) 644)ctiv)n)ss crit)ria can b) 0:,)ru+, !"&/2.
d)scrib)d in v)ry -)n)ra, and broad t)r7s, ).-., surviva, or 3raditiona,,y, +ro4it, or in 7or) narro@ t)r7s or-ani8ationa, )44)ctiv)n)ss @as bas)d on 4unctions, hi)rarchica, ,)v),s, ro,)s, or d)4in)d as +roc)ss)s in or-ani8ations 7))tin- or bas)d on th) +artici+ants and sur+assinconstitu)nts. 3h) co7+,)(ity o4 or-ani8ationa, -oa,s 0B)d)ian, th) conc)+t o4 or-ani8ationa, !"&%2. 3h) -oa, )44)ctiv)n)ss can b) i,,ustrat)d by <a7+b),,Ks 0!"%%2 ,ist o4 #$ a++roach has di44)r)nt crit)ria 4or
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7)asurinor-ani8ationa , )44)ctiv)n)ss, ran-in- 4ro7 Cob satis4action to -ro@th and +roductivity. Fith r)-ard to this, <=M is )s+)cia,,y notab,), sinc) it co7bin)s div)rs) indicators o4 )44)ctiv)n)ss and +)r4or7anc). 3h) co7+)tinva,u)s 7od), is bas)d on th) hy+oth)sis that th)r) is a t)nsion b)t@))n und)r,yin- va,u) di7)nsions 0Luinn ; Rohrbau-h, !"&!, !"&#2. 3h) 4irst va,u) di7)nsion is 4ocusBint)rna, 4ocus +uts )7+hasis on th) @),,5b)in- o4 th) or-ani8ation its),4 @hi,) )(t)rna, 4ocus is +,ac)d on th) or-ani8ation @ithin its )nviron7)nt. Structur) is th) s)cond va,u) di7)nsionB stabi,ity r)4)rs to th) n))d 4or to+ 7ana-)7)nt contro,, and 4,)(ibi,ity r)4)rs to th) n))d 4or ada+tation and chan-) in or-ani8ationa, structur) 0Luinn
; Rohrbau-h, !"&!, !"&#2. 3h) 7)asur)s that und)r,i) th) va,u) di7)nsions r)4,)ct on) o4 4our or-ani8ationa, 7od),s hu7an r),ations 7od), 0HR2, o+)n syst)7s 7od), 0:S2, int)rna, +roc)ss 7od), 0IP2, and rationa, -oa, 7od), 0R*2. A critica, +oint to not) is that @hi,) di44)r)nt or-ani8ationa, 7od),s r)4,)ct di44)r)nt )44)ctiv)n)ss crit)ria, th)y ar) not dichoto7ic. 644)ctiv)n)ss 7ay r)quir) that or-ani8ations ar) both 4,)(ib,) and stab,), as @),, as hav) a synchronous int)rna, and )(t)rna, 4ocus 0Luinn ; <a7)ron, !"&&2. 3h) 7od),s r)4,)ct o++osin- vi)@s o4 or-ani8ationa, )44)ctiv)n)ss si7u,tan)ous,y. 3h) HR 7od), 4ocus)s on int)rna, 4,)(ibi,ity to d)v),o+ )7+,oy)) coh)sion and 7ora,). It str)ss)s hu7an r)sourc) d)v),o+7)nt, +artici+ation, )7+o@)r7)nt, t)a7 bui,din-, trust bui,din-, con4,ict 7ana-)7)nt, su++ortin-, co77unication int)rna,,y, d)v),o+inindividua, +,ans, 4))dback to individua,s and -rou+s, and d)v),o+in- 7ana-)7)nt ski,,s 0Luinn, !"&"2. 3h) :S 7od), 4ocus)s on )(t)rna, 4,)(ibi,ity and su--)sts r)adin)ss and 4,)(ibi,ity as th) r)asons by @hich -ro@th 7ay b) -ain)d. I7+ortant issu)s ar) th) acquisition o4 scarc) r)sourc)s, su++ort o4 int)raction @ith th) )(t)rna, )nviron7)nt, id)nti4ication o4 7aCor tr)nds, d)v),o+7)nt o4 busin)ss int),,i-)nc), cr)ation o4 7)nta, 7od),s, 4aci,itation o4 chan-)s, d)dication to r)s)arch and d)v),o+7)nt, id)nti4ication o4 +rob,)7s, in4,u)nc) th) )nviron7)nt, and 7aint)nanc) o4 )(t)rna, ,)-iti7acy throu-h a n)t@ork o4 )(t)rna, contacts 0Luinn, !"&"2. 3h) IP 7od), 4ocus)s on
int)rna, stabi,ity and us)s 3h) R* 7od), is charact)ri8)d in4or7ation by a 4ocus on )(t)rna, contro, 7ana-)7)nt, and r),i)s on +,annin- and in4or7ation +roc)ssin-, and -oa, s)ttin- to -ain co77unication to +roductivity. 3his inc,ud)s d)v),o+ stabi,ity c,ari4ication o4 )(+)ctations, and contro,. 3his -oa,s and +ur+os)s throu-h +,annin- and -oa, s)ttin-, is don) by d)4inition o4 +rob,)7s, co,,)ctin- data 07ain,y int)rna, -)n)ration and )va,uation o4 a,t)rnativ)s, -)n)ration o4 quantitativ) in4or7ation us)d ru,)s and +o,ic)s, )va,uation o4 +)r4or7anc), d)cision to ch)ck su++ort, and qua,ity contro,, or-ani8ationa, 7otivation o4 or-ani8ationa, +)r4or7anc)2, 7)7b)rs to )nhanc) )nhancin- th) +roductivity, sa,)s su++ort, und)rstandin- o4 and 7a(i7i8ation o4 +ro4it activiti)s, 0Luinn, !"&"2. )nsurin- that standards, -oa,s, and ru,)s ar) A su77ary o4 th) 4our 7)t, 7aintainin- or-ani8ationa, 7od),s 0HR, :S, or-ani8ationa, IP, and R*2, th) va,u) structur) and di7)nsions, and r),at)d @ork 4,o@, 7)asur)s o4 or-ani8ationa, coordinatin)44)ctiv)n)ss is d)+ict)d in activiti)s, and Ai-ur) /. 3h) va,u) di7)nsions co,,)ctin- and and th) r),at)d or-ani8ationa, distributin7od),s shou,d not b) dir)ct,y in4or7ation co7+ar)d to th) 7aCor int)rna,,y 0Luinn, or-ani8ationa, +)rs+)ctiv)s that !"&"2. )(ist in or-ani8ationa, th)oryN
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na7),y, rationa,, natura,, and o+)n. 3ak) 4or instanc) th) o+)n syst)7 +)rs+)ctiv), @hich vi)@s or-ani8ations as o+)n syst)7s but a,so )7+hasi8)s in4or7ation +roc)ssin-, @hich r),at)s to th) int)rna, +roc)ss 7od), in <=M.
+igure 9: <o7+)tinva,u)s 7od), 0Luinn ; Rohrbau-h, !"&!, !"&#N Rohrbau-h, !"&!2 Sinc) Luinn and Rohrbau-hKs initia, studi)s, th) us) o4 <=M has )vo,v)d to b)co7) a -)n)ra, 4ra7)@ork 4or or-ani8ationa, and 7ana-)7)nt r)s)arch. It has b))n us)d to study )()cutiv) ,)ad)rshi+ and ass)ss ov)ra,, or-ani8ationa, )44)ctiv)n)ss 0Hart ; Luinn, !""#2N or-ani8ationa, ,i4) cyc,)s 0Luinn ; <a7)ron, !"&#2N or-ani8ationa, 4or7s 0Luinn ; Ha,,, !"&#2N or-ani8ationa, cu,tur) 0<a7)ron ; Luinn, !"""2N and th) r),ationshi+ b)t@))n )nviron7)nt, t)chno,o-y, va,u)s, and structur) 0Bu)n-)r )t a,., !""'2. S)v)ra, r)s)arch)rs in th) IS co77unity hav) a,so us)d <=M as a -)n)ra, 4ra7) o4 r)4)r)nc). <ar,sson and Fid7)y)r 0!""G2 us)d <=M as a bas) in a conc)+tua, r)s)arch 7od), o4 6SS. SbbksCbrvi and 3a,vin)n 0!""'2 us)d <=M to )va,uat) th) +)rc)+tion o4 or-ani8ationa, )44)ctiv)n)ss in th) us) o4 7ark)tin- in4or7ation syst)7s. :v)r th) y)ars, th)r) hav) b))n s7a,, chan-)s in va,u) di7)nsions. Luinn and Rohrbau-h 0!"&!2 d)scrib)d thr)) va,u) di7)nsions structur), 4ocus, and ti7). 3h)n in !"&#, th) sa7) authors d)scrib)d s,i-ht,y di44)r)nt va,u) di7)nsions structur), 4ocus, as @),, as 7)ans and )nds. It is a s7a,, di44)r)nc), but it is i7+ortant to notic) sinc) th)y )7+hasi8)d that ti7) is an i7+ortant but n)-,)ct)d as+)ct o4 or-ani8ationa, )44)ctiv)n)ss. 3i7) 4ra7) is a +hras) that r)4)rs to th) 4act that crit)ria 4or 7)asurinor-ani8ationa, )44)ctiv)n)ss 7ay vary d)+)nd)nt u+on @h)th)r or not a r),ativ),y short or ,on- ti7) 4ra7) is ado+t)d and that or-ani8ations in di44)r)nt ,i4) cyc,) sta-)s natura,,y chan-) th)ir 7)asur)s o4 )44)ctiv)n)ss. ERP 4(ste's@4&P R?= Aor th) )va,uation o4 th) i7+act o4 6RP syst)7s on or-ani8ationa, )44)ctiv)n)ss, @) chos) SAP RI# v)rsion G.$b ID6S, @hich can b) vi)@)d as a r)4)r)nc) syst)7 and is us)d 4or trainin- and )ducationa, +ur+os)s. It r)+r)s)nts rou-h,y 1$U o4 th) tota,
4unctiona,ity and +roc)ss)s su++ort)d by th) syst)7. F) chos) SAP RI# b)caus) o4 th) ,ar-) a7ount o4 docu7)ntation avai,ab,) in books, r)s)arch r)+orts, acad)7ic +ub,ications, and RI# )(t)nd)d h),+ and th) avai,abi,ity o4 SAP RI# thru th) SAP >niv)rsity A,,ianc) +ro-ra7. :th)r 6RP syst)7s v)ndors, such as Baan, J.D. 6d@ards, :rac,), and P)o+,)So4t do not hav) th) sa7) richn)ss o4 docu7)ntation. 6RP syst)7s ar) ,ar-) int)-rat)d co7+ut)r so4t@ar) +acka-)s consistin- o4 co7+on)nts, )ach @ith a -iv)n s)t o4 4unctions. A,, avai,ab,) 4unctions o+)rat) on a shar)d s)t o4 data, th)r)by achi)vin- int)-ration. 3h) id)a o4 th)s) syst)7s is to su++ort )v)ry sin-,) as+)ct o4 or-ani8ationa, stora-), +roc)ssin-, r)tri)va,, and
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busin)ss +roc)ss i7+rov)7)nt, int)-ration a7on- busin)ss units, r)a,5ti7) acc)ss to data distribution o4 and in4or7ation 0Dav)n+ort, data. 3his is su++os)d,y don) !""&2, standardi8ation o4 @ithout r)-ard to co7+any +roc)ss)s, incr)as)d 4,)(ibi,ity, incr)as)d or-ani8ationa, sco+), busin)ss, +roductivity, incr)as)d custo7)r satis4action, or co7+r)h)nsiv)n) o+ti7i8)d su++,y chain, ssBat ,)ast that is busin)ss -ro@th, i7+rov)7)nt @hat th) v)ndors o4 ord)r5to5cash ti7), co7+)titiv) +ositionin- abi,ity, say. In that shar)d s)rvic)s, i7+rov)d s)ns), an 6RP ti7)5to57ark)t cyc,)s, and syst)7 is a -)n)ric so,ution i7+rov)d +roduct qua,ity 0<ook) ; P)t)rson, !""&2. 3o @ith di44)r)nt su77ari8), 6RP syst)7s can ,)v),s o4 su++ort an or-ani8ation in si( ada+tabi,ity, @hich 7ak) )v)ry 7ain @ays i7+,)7)ntation uniqu) in so7) s)ns) sinc) an 1 Airst, th)y su++ort or-ani8ation 7ust or-ani8ations by con4i-ur) th) int)-ratinsyst)7 to its o@n in4or7ation 4,o@s s+)ci4ic 0such as custo7)r r)quir)7)nts. In in4or7ation, 4inancia, 7any cas)s, th) and accountinsyst)7 is in4or7ation, hu7an custo7i8)d to r)sourc)s s+)cia, in4or7ation, and r)quir)7)nts that su++,y chain ar) not su++ort)d in4or7ation2 and by RI#. :n) o4 7akin- it avai,ab,) to th) attractions o4 th) )ntir) 6RP syst)7s is or-ani8ation th) va,u) o4 0Dav)n+ort, !""&2. int)-ration. 3h)r) ar) oth)r 2 S)cond, th)y +)rc)iv)d 0th) int)-rat) div)rs) r)ason 4or +ri7ary busin)ss d)scribin- 6RP activiti)s, 4unctions, syst)7s b)n)4its +roc)ss)s, tasks, as +)rc)iv)d is and @ork 4,o@s du) to th) ,ack o4 0such as r)s)arch in th) accountin-, 4inanc), 4i),d. F) donKt and +rocur)7)nt2 b),i)v) th)r) is as @),, as )nou-h )vid)nc) s)condary activiti)s in th) r)s)arch @ith +ri7ary conduct)d u+ to activiti)s 0such as no@ to stat), inv)ntory R6RP syst)7s 7ana-)7)ntN ,)ad to Dav)n+ort, !""&2. or-ani8ationa, 3 3hird, th)y s)rv) as a i7+rov)7)ntsS2 co77on data b)n)4its r)+ository 07ast)r associat)d to 6RP data2 4or or-ani8ations syst)7s inc,udin-
0Sch))r, !""&2. A data r)+ositor y 4or an or-ani8at ion is that it 7ay d)4in) th) 4or7at o4 th) data, @hich 7ak)s co77uni cation and int)r+r)t ation o4 )asi)r.
s 0Jos)+h ; S@anson, !""&2 and r)+,ac) o,d ,)-acy syst)7s 0Markus ; 3anis, /$$$2.
6 3h) ,ast and 7ayb)
4 Aourth,
th)y s+)ci4y ho@ or-ani8a tions shou,d conduct th)ir busin)ss bas)d on a b)st busin)ss +ractic) r)4)r)nc ) 7od), 0?u7ar ; =an Hi,,)-)rs b)r-, /$$$2. th)y r)duc) th) nu7b) r o4 ,o-ica, co7+u t)r bas)d in4or7 ation syst)7
5 Ai4th,
th) 7ost obvious su++ort is that th)y d),iv)r 4unctiona,ity +)r s). 3his 4unctiona,ity su++orts th) cor) busin)ss +roc)ss)s 0such as sa,)s and 7ark)tin-, +rocur)7)nt, and +roduction2 and su++ort +roc)ss)s 0such as contro,,in-, hu7an r)sourc), and 4inanc)2 o4 an )nt)r+ris). In th) cas) o4 SAP RI#, th) 4unctiona,ity is divid)d into thr)) -rou+s accountin-, ,o-istics, and hu7an r)sourc) 0?),,)r ; 3)u4),, !""&2. A 4u,, d)scri+tion o4 this 4unctiona,ity can b) 4ound at htt+ IIh),+.sa+.co7I4 bI6n-,ish.ht7. In addition, th)r) ar) us)r ad7inistrativ) too,s, databas) ad7inistration too,s, )57ai,, a++oint7)nt ca,)ndar, 4unctiona,ity 4or roo7 r)s)rvations and ord)rin- 4ood, a so4t@ar) d)v),o+7)nt @orkb)nch, t),)+hon) int)-ration, @ork 4,o@ syst)7, and an )()cutiv) in4or7ation syst)7.
3o achi)v) th)s) b)n)4its 4ro7 an 6RP i7+,)7)ntation, or-ani8ationa, chan-)s ar) r)quir)d 0=an D)r E)) ; D) Jon-, !"""2, @hich ar) +ro7+t)d by busin)ss +roc)ss r))n-in))rin- 0Bancro4t, S)i+, ; S+r)n-),, !""&2, or-ani8ationa, transition to an 6RP
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syst)7, r)trainin- o4 )ntir) d)+art7)nts, Cob r)d)4inition 0D)utsch, !""&2, and trans4or7ation o4 cor) +roc)ss)s 0<a,d@),, ; St)in, !""&2. 6RP syst)7s ar) o4t)n th)r)by assu7)d to b) a d)t)r7inistic t)chno,o-y, sinc) or-ani8ations hav) to a,i-n th)ir busin)ss +roc)ss to th) )7b)dd)d busin)ss +roc)ss)s r)+r)s)ntinb)st +ractic), @hich ar) assu7)d to -)n)rat) or-ani8ationa, chan-) 0*,ass, !""&2. Ho@)v)r, this trans4or7ationa, +o@)r has b))n qu)stion)d 0Boudr)au ; Rob)y, !"""2.
r)s+)ct th) va,u) di7)nsionsB int)rna, vs. )(t)rna, and stab,) vs. 4,)(ib,). 3h) third st)+ @as to c,assi4y )ach 6RP syst)7Ks 4unctiona,ity to <=M @ith r)-ard to th) va,u) di7)nsions. 3h) authors +)r4or7)d th) )va,uation and c,assi4ication ind)+)nd)nt,y. 3h) c,assi4ication and )va,uation outco7)s @)r) th)n co7+ar)d. 3h)r) @as substantia, a-r))7)nt, a++ro(i7at),y "$U, b)t@))n th) )va,uations 0so7) 4unctiona,iti)s @)r) qu)stion5 7ark)d in th) )va,uations2. Fh)r) disa-r))7)nts )(ist)d, th) 4unctiona,ity @as r))va,uat)d and a 4ina, c,assi4ication and )va,uation d)cision @as 7ad) @hich satis4i)d both authors. 3o so7) )(t)nt, @) v)ri4i)d th) c,assi4ication 4ro7 +ub,ish)d artic,)s on 6RP syst)7sK b)n)4its, but in 7ost cas)s this @as not +ossib,). 3his is b)caus) 7ost r)s)arch on 6RP syst)7s do)s not d)scrib) th) 6RP 4unctiona,ity to such a d)tai, that it is +ossib,) to v)ri4y th) c,assi4ication.
3his a++roach has its dra@backs. Aor )(a7+,), +roduction +,annin- is )ss)ntia, to 7anu4acturin4ir7sN it is o4 ,itt,) or no va,u) to r)tai, 4ir7s. A,so, r)-ardinth) i7+act o4 th) )nviron7)nt and t)chno,o-y o4 th) us)r, so7) ca+abi,iti)s ar) 7or) i7+ortant than Proce"ure oth)rs d)+)ndin- on th) 3h) )va,uation o4 )nviron7)nt and t)chno,o-y o4 th) or-ani8ation in 6RP syst)7s @as qu)stion. An accountant do)s +)r4or7)d in a not n))d +roduction +,anninthr))5st)+ 4unctiona,ity. Aina,,y, in t)r7s +roc)ss. Airst, @) o4 th) nu7b)r o4 us)rs o4 ,ist)d th) )ach 4unction in an 4unctiona,ity o4 or-ani8ation, itKs ,ik),y to th) 6RP syst)7 assu7) that so7) and r)+ort)d 4unctiona,iti)s @i,, hav) b)n)4its s)v)ra, us)rs, ).-., a 4ir7 @i,, associat)d @ith hav) s)v)ra, sa,)s+)rsons.
6RP syst)7s. 3h)n @) cat)-ori8)d 6RP ca+abi,iti)s @ith
OUTCOME AND DISCUSSION OF THE
EVALUATIO 7)trics. H)nc), 6RP syst)7s +ri7ari,y su++ort tasks r),at)d N to contro,, )44ici)ncy,
+roductivity, and stabi,ity by Fhi,) 7ost o4 th) i7+rovin- in4or7ation 4unctiona,ity and 7ana-)7)nt, coordination, and th) b)n)4its 7a+ +,annin-. 3h) stron- su++ort o4 to )ith)r th) IP th) IP 7od), is natura, sinc) 7od), or th) R* 6RP syst)7s 0as 7ost IS, ).-., 7od),, so7) o4 MIS, contro,,insyst)7s, and th) 4unctiona,ity inv)ntory syst)7s2 ar) int)rna, is int)r+r)tab,) as syst)7s that ar) d)si-n)d to b),on-in- to both su++ort th) int)rna, +roc)ss)s 7od),s. 3his is and 4unctions o4 or-ani8ations. du) to th) 4act Anoth)r i7+ortant and critica, that syst)7 4unctiona,ity is th) cr)ation o4 4unctiona,ity 7ast)r data r)cords 4or su++orts s)v)ra, custo7)rs and v)ndor. 3his or-ani8ationa, 4unctiona,ity is us)d as a 4unctions @ith r)+ository 4or data and 7ak)s it di44)r)nt +ossib,) to co77unicat) )44)ctiv)n)ss in4or7ation throu-h an 7)trics. or-ani8ation. 3his is @hat Accordin-,y, 6RP 7ak)s int)-ration o4 syst)7s and in4or7ation and +roc)ss)s +)rc)iv)d +ossib,). Ho@)v)r, th) ,ack o4 b)n)4its r),at) to su++ort 4or HR and :S 7od),s IP5 and R*5 @as sur+risin-. 3h) outco7) o4 associat)d th) c,assi4ication and )va,uation or-ani8ationa, o4 th) 4unctiona,ity and b)n)4its -oa,s and o4 6RP syst)7s is +r)s)nt)d in )44)ctiv)n)ss Ai-ur) #.
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+igure =: Ma++in- o4 6RP syst)7 ca+abi,iti)s into <=M 3h) arti4act )va,uation o4 th) 6RP syst)7 sho@s th) )(ist)nc) o4 an in +art i7+,icit,y shar)d 4ra7)@ork @ith <=M. 3his, co7bin)d @ith r)s)arch +)r4or7)d on <=M, 7ak)s it +ossib,) 4or us to dra@ conc,usions, @hich @) +r)s)nt as a s)ri)s o4 hy+oth)s)s that +r)dict th) i7+act o4 6RP syst)7s on or-ani8ations and or-ani8ationa, )44)ctiv)n)ss.
3h) 4irst conc,usion r)-ardin- 6RP syst)7s such as RI# is that th)r) is a ,ack o4 su++ort r)-ardin- HR5 and :S57od), )44)ctiv)n)ss constructs, i.)., an unba,anc)d su++ort o4 or-ani8ationa, )44)ctiv)n)ss. Such a su--)stion is bas)d on th) id)a that @),,5ba,anc)d su++ort is -)n)ra,,y b)n)4icia,, and that an or-ani8ation 7ust si7u,tan)ous,y attain s)v)ra, di44)r)nt and +ossib,y contradictory -oa,s to b)co7) )44)ctiv) 0<a7+b),,, !"%%2. Pr)dictions about 6RP syst)7sK i7+act on or-ani8ations 4or7 our 4irst hy+oth)s)s.
1 Hy+oth)sis !a. 6RP syst)7s @i,, i7+act or-ani8ations and i7+rov) thos) ar)as
that ar) ti)d to or-ani8ationa, )44)ctiv)n)ss 7)asur)s r),at)d to IP and R* 7od),s.
Hy+oth)sis !b. An or-ani8ation @ith c)rtain or-ani8ationa, )44)ctiv)n)ss r)quir)7)nts 7ust s))k ca+abi,iti)s in th) corr)s+ondin- quadrant, @hich r)quir)s an )va,uation o4 th) or-ani8ationKs )44)ctiv)n)ss r)quir)7)nts.
3 Hy+oth)sis !c. A succ)ss4u, i7+,)7)ntation o4 6RP syst)7s has to b) 4o,,o@)d
by or-ani8ationa, chan-) )44orts that @i,, i7+rov) or-ani8ationa, )44)ctiv)n)ss associat)d to IP and :S 7od),s, i.)., hu7an r)sourc) d)v),o+7)nt 4,)(ibi,ity and ada+tabi,ity.
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1 Hy+oth
)sis !d. :r-ani 8ations @ith an id)nti4i )d )44)ctiv )n)ss 4ocus in th) hu7an r)sourc ) 7od), or th) o+)n syst)7 7od), @i,, b)co7 ) ,)ss )44)ctiv ) i4 th)y i7+,)7 )nt an 6RP syst)7 .
contro,, and G2 ),aboration o4 structur) sta-). 3h) critica, )44)ctiv)n)ss constructs o4 th) )ntr)+r)n)uria, sta-) ,i) in th) :S 7od),, @hi,) th) critica, )44)ctiv)n)ss constructs o4 th) co,,)ctivity sta-) ,i) in th) HR 7od),. In th) 4or7a,i8ation and contro, sta-), th) )44)ctiv)n)ss constructs ar) bas)d on th) IP and R* 7od),s. 3h) ),aboration o4 structur) sta-) has a 7or) ba,anc)d )7+hasis u+on th) )44)ctiv)n)ss constructs. 3h) 4o,,o@in- hy+oth)s)s +r)dicts th) in4,u)nc) @hat sta-) in th) ,i4) cyc,) a 4ir7 is in on th) i7+act o4 6RP syst)7s on or-ani8ations.
1 Hy+oth)sis /a. Aor
Studi)s @ithin th) <=M 4ra7)@ork su--)st that a,, )44)ctiv)n)ss constructs ar) not )qua,,y i7+ortant and critica, at th) sa7) ti7). 3h)r) ar) chan-)s in th) i7+ortanc) o4 th) )44)ctiv)n)ss constructs in r),ation to hi)rarchica, ,)v),s and @hat sta-) o4 th) ,i4) cyc,) a 4ir7 is in. Fith r)-ard to th) <=M 4ra7)@ork, Luinn and <a7)ron 0!"&#2 4ound 4our di44)r)nt sta-)s a 4ir7 can b) in !2 )ntr)+r)n)uria,, /2 co,,)ctivity, #2 4or7a,i8ation and
or-ani8ations in th) )ntr)+r)n)uria, or co,,)ctivity sta-), 6RP syst)7s ar) ,)ss b)n)4icia,, sinc) th)y do not +rovid) su++ort 4or th)ir critica, )44)ctiv)n)ss constructs, i.)., coh)sion, 7ora,), hu7an r)sourc) d)v),o+7)nt, innovation, ada+tation, and -ro@th. /b. :r-ani8ations in th) 4or7a,i8ation and contro, sta-) as @),, as th) ),aboration o4 structur) sta-) @i,, b) )44)ctiv),y su++ort)d by 6RP syst)7s sinc) th)y -iv) -ood su++ort to thos) )44)ctiv)n)ss constructs. :r-ani8ations that ar) in th) +roc)ss o4 7ovin- 4ro7 th) co,,)ctivity sta-) to th) 4or7a,i8ation and contro, sta-) cou,d us) an 6RP syst)7
2 Hy+oth)sis
3 Hy+oth)sis /c.
i7+,) 7)nta tion to i7+os ) th) struct ur)s and 4or7a,i 8ation n))d) d in that sta-).
tions that ar) in th) 4or7a,i8ation and contro, sta-). In anoth)r study, it @as 4ound that th)r) is a,so a di44)r)nc) in th) i7+ortanc) o4 th) )44)ctiv)n)ss constructs in r),ation to hi)rarchica, ,)v),s 0Luinn, !"&"2. 3h) t@o 7aCor 4indin-s in th) study @)r) that !2 th)r) )(ists an )qua, )7+hasis 4or th) IP5 and R*5 r),at)d )44)ctiv)n)ss 7)asur)rs, and /2 th) i7+ortanc) o4 th) :S 7od),s incr)as)s at hi-h)r hi)rarchica, ,)v),s. In r),ation to our )va,uation o4 6RP syst)7s, th)s) 4indin-s ,)ad to th) 4o,,o@in- hy+oth)s)s
4 Hy+oth)
sis /d. 3h) +robabi, ity o4 succ)ss o4 an 6RP syst)7 i7+,)7) ntation @i,, di44)r d)+)ndi n- on th) curr)nt +osition o4 th) or-ani8a tion in its ,i4) cyc,). Most ,ik),y to achi)v) succ)ss ar) thos) or-ani8a
1 Hy+oth)sis #a. 6RP
syst)7s @i,, +rovid) su++ort 4or 7idd,)5 and ,o@)r5 ,)v), 7ana-)rs. #b. 6RP syst)7s do not +rovid) su44ici)nt su++ort 4or to+5,)v), 7an-)rs.
2 Hy+oth)sis
A qu)stion aros) r)-ardin- SAP RI#Bis it )44)ctiv) or notZ 3his o4 cours) d)+)nds on various cont)(tua, 4actors, ).-., th) sta-) o4 th) ,i4) cyc,) and hi)rarchica, ,)v),, @hich hav) to b) addr)ss)d s)+arat),y. Ho@)v)r, it is obvious that RI# v)rsion G.$b do)s not
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su++ort to+5 ,)v), 7ana-)rs, )(+ansion and -ro@th o4 a 4ir7, or th) @ay a 4ir7 bui,ds its cor+orat) cu,tur). 3hat said, SAP has r)s+ond)d to so7) o4 th)s) @)akn)ss)s. Lack o4 7ana-)7)nt su++ort has b))n addr)ss)d throu-h Mana-)7)nt <ock+it, a 7u,tidi7)nsiona , )()cutiv) in4or7ation syst)7, and dri,,5do@n +ossibi,iti)s hav) b))n +rovid)d in th)ir Data Far)hous) so,ution. 3h) ,ack o4 4,)(ibi,ity and shortco7in-s r)-ardinconn)ctions to th) )(t)rna, )nviron7)nt is to so7) )(t)nt addr)ss)d by th) 6nt)r+ris) Porta, 07ySAP Fork+,ac)2. Incr)as)d co7+atib,y is +rovid)d by BAPIKs 0Busin)ss A++,ication Pro-ra77inInt)r4ac)2 +r)d)4in)d int)r4ac)s 4or co77unicatin@ith oth)r a++,ications. :n) ar)a, hu7an r)sourc) d)v),o+7)nt, is curr)nt,y not @),, su++ort)d
by SAPKs 6RP syst)7, and @) ar) not a@ar) o4 any 7aCor initiativ) by SAP to addr)ss this issu).
CONCLUSION
3his cha+t)r +r)s)nts an arti4act )va,uation o4 an 6RP syst)7 usin- an acc)+t)d 4ra7)@ork o4 or-ani8ationa, )44)ctiv)n)ss. 3h) +ur+os) o4 th) )va,uation @as to i7+rov) th) und)rstandin- o4 ho@ 6RP syst)7s 7ay or 7ay not i7+act or-ani8ationa, )44)ctiv)n)ss. 3h) )va,uation d)7onstrat)s both str)n-ths and @)akn)ss)s o4 6RP syst)7s. 3h) str)n-th o4 an 6RP syst)7 is 7ost,y r),at)d to th) IP and R* 7od),s and th) shortco7in-s ar) r),at)d to th) HR and :S 7od),s. In a r)a, cas) situation our 7)thod 7ust b) co7+,)7)nt)d @ith both 4or7a, and in4or7a, 7)thods and t)chniqu)s. :n) such 7)thod or t)chniqu) is th) Rco7+)tinva,u)s or-ani8ationa, )44)ctiv)n)ss instru7)ntS 0Luinn, !"&"2Bth) instru7)nt 7)asur)s +)rc)+tions o4 or-ani8ationa, +)r4or7anc). By a++,yin- said t)chniqu)s and 7)thods, it is +ossib,) to ass)ss ho@ di44)r)nt or-ani8ations +)rc)iv) )44)ctiv)n)ss constructs as @),, as @hat th)y +)rc)iv) as critica, 4or that or-ani8ation 0<a7)ron ; Luinn, !"""2. 3o-)th)r th)s) instru7)nts and su++,)7)ntary @ays 7ay b) us)d to d)v),o+ a r)co77)ndation 4or ho@ co7+)tinva,u)s shou,d b) chan-)d and ho@ an 6RP syst)7 can su++ort di44)r)nt or-ani8ationa, )44)ctiv)n)ss 7)asur)s. Autur) r)s)arch on 6RP syst)7s @i,, inc,ud) th) d)v),o+7)nt o4 instru7)nts to dia-nos) or-ani8ationsK )44)ctiv)n)ss constructs and
in +articu,ar this 7ust inc,ud) th) d)v),o+7)nt o4 co7+ut)r5 bas)d su++ort 4or this. 3his @i,, )nab,) us to d)t)r7in) th) critica, )44)ctiv)n)ss constructs o4 an or-ani8ation, @hich can b) 7a++)d to 6RP syst)7s. Autur) r)s)arch @i,, a,so inc,ud) )7+irica, studi)s addr)ssinth) r),ationshi+ b)t@))n 6RP syst)7 us) and su++ort 4or or-ani8ationa, 4unctions and +roc)ss)s and ho@ this is ,ink)d to individua, and
or-ani8ationa, +)r4or7anc). 3h) r)su,t can i7+rov) th) abi,ity to d)si-n and con4i-ur) 6RP syst)7s and +r)scrib) ho@ 6RP syst)7s can b) us)d to i7+rov) or-ani8ationa, )44)ctiv)n)ss.
AC-NOWLEDGEMENT
F) @ou,d ,ik) to thank th) r)vi)@)rs 4or th)ir constructiv) su--)stions and ?)vin Ai44un. F) a,so @ou,d ,ik) to thank A-n)ta :,)ru+ and Sv)n <ar,sson 4or th)ir co77)nts on )ar,i)r v)rsions o4 this cha+t)r.
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the 8th European Conference on Information Systems, !/G5 !#!, =i)nna. Hart, S. L. and Jos)+h, 3. and S@anson, 6. B. Luinn, R. 6. 0!""&2. 3h) +acka-) a,t)rnativ) 0!""#2. Ro,)s )()cutiv)s +,ay in syst)7s r)+,ac)7)nt <6:s, b)haviora, 6vid)nc) 4or innovation co7+,)(ity, and conv)r-)nc). In Lars)n, 3. J. and Mc*uir), 6. 06ds.2, 4ir7 Information Systems +)r4or7anc). &uman "elations, Innovation and iffusion' Issues and G'012, 1G#51%G. irections, #%15#&". Hirschh)i7, R. H)rsh)y, PA Id)a and S7ithson, *rou+. S. 0!"""2. 6va,uation o4 ?),,)r, *. and 3)u4),, 3. 0!""&2. SAP "@A Process0 in4or7ation syst)7s A !riented Implementation' Iterative Process Prototyping critica, ass)ss7)nt. In 0A. F)in,and, 3rans.2. Fi,,cocks, L. Har,o@, 6n-,and Addison5 and L)st)r, S. F)s,)y. 06ds.2, Beyond ?ott)r J. P. 0!"%&2. the IT !rgani%ational ynamics' iagnosis and Intervention. Productivity Parado1, #&!5 R)adin-, MA Addison5F)s,)y. ?u7ar, ?. and =an G$". Hi,,)-)rsb)r-, J. 0/$$$2. 6RP <hich)st)r John Fi,)y ; )(+)ri)nc)s and )vo,ution. Communication of the ACM, Sons. G#0G2, /#5 /'. Jackson, M. L)), A. S. 0/$$$2. 6ditorKs 0!""12. co77)nts 3h) socia, and Soft-are "e6uirements F +o,itica, cont)(t o4 doinr),)vant r)s)arch. MIS Specifications' 5uarterly, /G0#2, v5vii. A $e1icon of March, S. 3. and Practice' S7ith, *.A. 0!""12. Principles and D)si-n and natura, Pre3udices. sci)nc) r)s)arch on Har,o@, in4or7ation 6n-,and Addison5F)s,)y. t)chno,o-y. ecision Support Jbrvin)n, P. H. Systems, 0!12, 0!"""2. !n /1!5/''. "esearch Markus, M. L. and 3anis, <. Methods, >niv)rsity o4 0/$$$2. 3h) )nt)r+ris) syst)7 3a7+)r), )(+)ri)nc)BAro7 ado+tion to 3a7+)r), succ)ss. In E7ud, R. and Pric), Ain,and. M. A. 06ds.2, 4raming the Jbrvin)n, P. H. omains of IT Management' 0/$$$2. Pro3ecting the 4uture Through R)s)arch the Past, !%#5/$%. <incinnati, qu)stions :H PinnaA,)(. -uidinMc?))n, J. D. and Par)nt, s),)ction o4 an M. 0!"""2. An int)-rativ) a++ro+riat) r)s)arch a++roach to r)s)arch ass)ss th) busin)ss va,u) 7)thod. In th) o4 in4or7ation t)chno,o-y. Proceedings of In Mah7ood, M. A. and
S8)@c8ak, 6. J. 06ds.2, Measuring Information Technology Payoff' Contemporar y Approaches, 15/#. H)rsh)y, PA Id)a *rou+. M)y)r, M. F. 0!"&12. $imits to Bureaucratic (ro-th. B)r,in *ruyt)r. :,)ru+, A. 0!"&/2. A Conte1tual 4rame-or+ for Computeri% ed Information Systems. 6rhv)rsdkon o7iskt Adr,a-, <o+)nha-)n , D)n7ark. :stro44, <. and Sch7itt, N. 0!""#2. <on4i-uration s o4 or-ani8ationa, )44)ctiv)n)ss and )44ici)ncy. Academy of Management Journal, #', !#G15!#'!. Luinn, R.
6. 0!"&"2. Beyond "ational Management' Mastering the Parado1es and Competing emands of &igh Performance. San Arancisco, <A Joss)y5 Bass. Luinn, R. 6. and <a7)ron, ?. S. 0!"&#2. :r-ani8ationa, ,i4) cyc,)s and shi4tincrit)ria and )44)ctiv)n)ss. Management Science, "0!2, ##51!. Luinn, R.6., ; <a7)ron, ?.S. 06ds.2. 0!"&&2. Parado1 and Transformation' To-ard a Theory of Change in !rgani%ation and Management. <a7brid-), MA Ba,,in-)r. Luinn, R. 6. and Ha,,, R. H. 0!"&#2. 6nviron7)nts, or-ani8ations, and +o,icy7ak)rs 3o@ard an int)-rativ) 4ra7)@ork. In Ha,,, R. H. and Luinn, R. 6. 06ds.2, !rgani%ation Theory and Pu)lic Policy. B)v)r,y Hi,,s, <A Sa-). Luinn, R. 6. and Rohrbau-h, J. 0!"&!2. A co7+)tinva,u)s a++roach to or-ani8ationa, )44)ctiv)n)ss. Pu)lic Productivity "evie-, /, !//5!G$. Luinn, R. 6. and Rohrbau-h, J. 0!"&#2. A s+atia, 7od), o4 )44)ctiv)n)ss crit)ria 3o@ards a co7+)tinva,u)s a++roach to or-ani8ationa, ana,ysis. Management Science, /"0#2, #'#5#%%.
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Rob)y, D. and Boudr)au, M. L. 0!"""2. Accountin- 4or th) contradictory or-ani8ationa, cons)qu)nc)s o4 in4or7ation t)chno,o-y 3h)or)tica, dir)ctions and 7)thodo,o-ica, i7+,ications. Information Systems "esearch, !$0/2, !'%5 !&1. Rohrb au-h, J. 0!"&!2 . :+)rat iona,i8i n- th) co7+) tinva,u)s a++roa ch. Pu)lic Produc tivity "evie -, 10/2, !G!5 !1". Ro,,and, <. and Prakash, N. 0/$$$2. Brid-inth) -a+ b)t@))n or-ani8ationa, n))ds and 6RP 4unctiona,ity. "e6uirements Engineering, 1, !&$5!"#. SAP. 0!""%2. It2s More than Soft-are7 It2s a Strategic Solution.
SAP A*, Fa,,dor4, *)r7any. Sch))r, A. F. 0!""&2. A"IS,Business Process 4rame-or+s 0s)cond )dition2. B)r,in S+rin-)r. Scott, F. R. 0!""/2. !rgani%ations' "ational, #atural, and !pen Systems 0third )dition2. 6n-,)@ood <,i44s, NJ Pr)ntic) Ha,,. S)ddon, P. B., Sta+,)s, S., Patnayakuni and Bo@t),,, M. 0!"""2. Di7)nsions o4 in4or7ation syst)7s succ)ss. Communications of the Association for Information Systems, /. R)tri)v)d January !1, /$$!, 4ro7 th) For,d Fid) F)b htt+ IIcais.is@or,d.or-I cont)nts.as+. Shan-, S. and S)ddon, P. B. 0/$$$2. A co7+r)h)nsiv) 4ra7)@ork 4or c,assi4yin- th) b)n)4its o4 6RP syst)7s. In th) Proceedings of the Gth Americas Conference on Information Systems, !$$15!$!G, Lon- B)ach, <A. Shanks, *., S)ddon, P. and Fi,,cocks, L. 06ds.2. 0/$$!2. Enterprise Systems' E"P, Implementation and Effectiveness. :(4ord :(4ord >niv)rsity Pr)ss.
SbbksCbrvi, M. M. 3. and 3a,vin)n, J. M. 0!""'2. 6va,uation o4 or-ani8ationa, )44)ctiv)n)ss o4 7ark)tinin4or7ation syst)7s93h) critica, ro,) o4 r)s+ond)nts. In th)
Proceedings of the Hth European Conference on Information Systems, G#15 G1$, Lisbon, Portu-a,. 3usi, A. S. 0!""$2. A 7u,ti+,)5 constitu)ncy 7od), o4 )44)ctiv)n)ss An )7+irica, )(a7ination at th) hu7an r)sourc) subunit ,)v),. Administrative Science 5uarterly, #1, G1&5G&#.
=an D)r E)), J. 3. M. and D) Jon-, B. 0!"""2. A,i-n7)nt is
not )nou-h Int)-ratinbusin)ss and in4or7ation t)chno,o-y. Journal of Management Information Systems, !'0/2, !#%5!1&.
8 9 -
Chapter G<: Enterpri <o+yri-ht . /$$/, Id)a *rou+ Pub,ishin-. se r)sourc) +,anninResourc 6nt)r+ris) 06RP2 and kno@,)d-) 7ana-)7)nt 0?M2 syst)7s e +ro7is) or-ani8ations th) Planning b)n)4its o4 )nhancinco7+)titiv)n)ss and continuous an" r)vita,i8ation. 3his cha+t)r th) charact)ristic 5no,le" co7+ar)s di44)r)nc)s and si7i,ariti)s b)t@))n th) t@o initiativ)s and ge )(a7in)s ho@ th)y in4,u)nc) )44ici)ncy and $anage or-ani8ationa, 4,)(ibi,ity @h)n i7+,)7)nt)d @ithin a -,oba, )n-in))rin'ent 4ir7. F) su--)st that th) t@o 4(ste's initiativ)s ar) conc)+tua,,y co7+,)7)ntary but can on,y : &n cr)at) a syn)r-y @h)n th) o4 or-ani8ationa, E'pirica d)si-n routin)s and +ractic)s 4its into th) 7)ta5routin)s i7+os)d by l 6RP and ?M, and th) socia, ar) nurtur)d @ithin &ccount +roc)ss)s 4unctions and cross54unctiona,,y. of Organi*a INTRODUCTION tional 3@o n)@ or-ani8ationa, can b) id)nti4i)d that Efficienc initiativ)s ar) b)in- or hav) b))n @id),y i7+,)7)nt)d. 3h) 4irst is 6RP ( an" syst)7s 0<)ru,,o ; <)ru,,o, +le0ibilit /$$$2 and th) s)cond is kno@,)d-) 7ana-)7)nt 0?M2 ( syst)7s 0Dav)n+ort, D) Lon-,
; B))rs, !""&2. 6RP syst)7s ar) so,d as a v)hic,) 4or OVERVIEW int)-ratin- th) cor) busin)ss activiti)s o4 an )nt)r+ris), such Ji''( C% Huang as 4inanc), ,o-istics and hu7an Nottin-ha7 r)sourc)s. 3h)y ar) bas)d on >niv)rsity d)v),o+in- co77on I3 Busin)ss Schoo,, in4rastructur)s and busin)ss >? +roc)ss)s @h)r) +r)vious,y, 4ue .e,ell )s+)cia,,y in ,ar-) -,oba,,y Roya, Ho,,o@ay, distribut)d cor+orations, 7any syst)7s and +roc)ss)s >niv)rsity o4 co)(ist)d, 7akin- int)-ration London, >? v)ry di44icu,t. 3h) su--)stion is Robert %
Galliers London Schoo, o4 6cono7ics and Po,itica, Sci)nc), >? 4han3Ling Pan Nationa, >niv)rsity o4 Sin-a+or), Sin-a+or)
that th)s) 4ir7s can )nhanc) co7+)titiv) syst)7s can +,ay advanta-) throu-h th) 7or) an i7+ortant +art )44)ctiv) uti,i8ation o4 th)ir in ,)v)ra-inkno@,)d-) ass)ts throu-h or-ani8ationa, a,,o@in- 4r)) 4,o@ o4 kno@,)d-) co7+)titiv)n)ss across or-ani8ations 0Bircha,, ; throu-h 3ovsti-a, !"""N Brand, !""&N i7+rovin- th) Starbuck, !""/2. 3hrou-h @ay in @hich i7+rov)d kno@,)d-) sharinstrat)-ica,,y and kno@,)d-) cr)ation, va,uab,) 4,)(ibi,ity shou,d b) )nhanc)d. in4or7ation is +roduc)d, shar)d Fhi,) +rior studi)s hav) +rovid)d us)4u, insi-hts on and 7ana-)d. )ach o4 th)s) initiativ)s 3hrou-h i7+rovin- th)s) ind)+)nd)nt,y, 4)@ )7+irica, studi)s tak) into account +roc)ss)s, both initiativ)s and or-ani8ationa, )44ici)ncy shou,d inv)sti-at) th)ir in4,u)nc) on b) )nhanc)d. ?M or-ani8ationa, )44ici)ncy and 4,)(ibi,ity. In this +a+)r @) syst)7s )7+hasi8) ho@ )(a7in) th)
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)(t)nt to @hich th)s) t@o initiativ)s, @h)n )nact)d @ithin a sin-,) or-ani8ation, ar) co7+,)7)ntary or contradictory, and ho@ th) co7bination o4 th) t@o in4,u)nc)s or-ani8ationa, )44ici)ncy and 4,)(ibi,ity. Conceptual +oun"ations 3h) abi,ity o4 4ir7s to )44)ctiv),y r)s+ond to )nviron7)nta, o++ortuniti)s, @hi,) si7u,tan)ous,y d)v),o+in- )44ici)nt int)rna, +roc)ss)s, has ,on- b))n s))n as c)ntra, to an or-ani8ationKs succ)ss 0*),)tkanyc8 ; Ha7brick, !""%N =o,b)rda, !""'2. A ,ar-) body o4 ,it)ratur) has, thus, 4ocus)d on )(a7inin- th) int)r4ac) b)t@))n th) )(t)rna, )nviron7)nt and int)rna, or-ani8ationa, +roc)ss)s, +rovidin- th)or)tica, )(+,anations that +in+oint th) n))ds 4or )44ici)ncy and 4,)(ibi,ity 0).-., Davido@ ; Ma,on), !""/N Fri-ht ; Sn),,, !""&2, and 7or) critica,,y, a trad) o44 b)t@))n th)7 0*h)7a@at ; <osta, !""#2. In4,u)nc)d ,ar-),y by th) in4or7ation +roc)ssin- +aradi-7, on) str)a7 o4 th)or)tica, d)v),o+7)nt has t)nd)d to 4ocus on i7+rovin- )44ici)ncy throu-h th) continuous accu7u,ation o4 in4or7ation 0).-., <y)rt ; March, !"'#N 6++,), Ar-ot), ; D)vadas, !""'2. :th)rs hav) )7+hasi8)d th) i7+ortanc) o4 or-ani8ationa, d)si-n 4or i7+rovin)44ici)ncy 0).-., *a,braith, !"%%N La@r)nc) ; Lorsch, !"'%2. 3his )7+hasis on )44ici)ncy has b))n r)+)at)d,y r)in4orc)d by cont)7+orary 7ana-)7)nt th)ori)s and +ractic)s, notab,y th) i7+,)7)ntation o4 tota, qua,ity 7ana-)7)nt 03LMN Ebaracki, !""&2 and th) ado+tion o4 in4or7ation t)chno,o-y 0I3N Aroh,ich ; <i(on, !"""2. A 7or) radica, a++roach is s))n in th) ,it)ratur) on busin)ss +roc)ss r))n-in))rin- 0BPRN ).-., Dav)n+ort, !""#2, @hich advocat)s that th) )nhanc)7)nt o4 )44ici)ncy d)+)nds on radica,,y a,t)rin- routin)s and +ractic)s around +roc)ss)s rath)r than around traditiona, 4unctiona, structur)s. 3his is su++ort)d by th) ado+tion o4 I3. Mor) r)c)nt,y, as or-ani8ationsK d)+)nd)nc) on I3 4or r)vita,i8ation -ro@s 0:r,iko@ski ; Rob)y, !""!2, 6RP syst)7s hav) b))n stron-,y +ro7ot)d. 6RP syst)7s, as 7ark)t)d by th)ir su++,i)rs, +ro7is) i7+rov)7)nts in co7+)titiv)n)ss throu-h incr)asin- +roductivity, cost r)duction, i7+rovin- d)cision qua,ity and r)sourc) contro,, so )nab,in- ,)an)r +roduction 0Communications of ACM, /$$$N Pa,anis@a7y ; Arank, /$$$2. In oth)r @ords, 6RP syst)7s ar) +ro7ot)d as syst)7s that @i,, i7+rov) or-ani8ationa, )44ici)ncy throu-h both )nhanc)d in4or7ation ca+tur) and or-ani8ationa, r)d)si-n. M)an@hi,), conc)+tua, ar-u7)nts about 4,)(ibi,ity +osit that it can on,y b) achi)v)d at th) cost o4 )44ici)ncy 0Hannan ; Ar))7an, !"&"2. A++roach)s to i7+rovin- 4,)(ibi,ity hav) t)nd)d to )7+hasi8) th) n))d 4or cross5 d)+art7)nta, co,,aboration and co77unication to 7iti-at) )nviron7)nta, unc)rtainty throu-h th) ado+tion o4 or-anic or-ani8ationa, structur)s 0Ar-ot), !"&/N Burns ; Sta,k)r, !"'!2. 67+irica, r)s)arch has thus )7+hasi8)d ho@ 4,)(ibi,ity is achi)v)d @h)n or-ani8ations int)ract @ith th)ir )nviron7)nt. 3his is i,,ustrat)d in a++roach)s such as strat)-ic choic) 0).-., *),)tkanyc8 ; Ha7brick, !""%2, absor+tiv) ca+acity 0<oh)n ; L)vintha,, !""$2 and boundary s+annin- 0).-., 3ush7an ; Scan,an, !"&!2. In conCunction @ith this, so7) hav) 4ocus)d on th) )ss)nc) o4 continuous or-ani8ationa, r)n)@a, and )vo,ution, as r)4,)ct)d in th) conc)+ts o4 or-ani8ationa, ,)arnin- 0S)n-), !""$2, virtua, or-ani8ation 0).-., Davido@ ; Ma,on), !""/2 and innovation 0).-., <,ark ; Staunton, !"&"N Douh)rty, !""/2. Movin- b)yond th) +o,arity o4 )44ici)ncy and 4,)(ibi,ity, so7) curr)nt ,it)ratur) has su--)st)d that it is +ossib,) 4or or-ani8ations to )nhanc) )44ici)ncy @hi,) at th) sa7) ti7) a,,o@in- 4or 4,)(ibi,ity. So7) o4 th) )7+irica, accounts inc,ud) th) i7+ortanc) o4
-91TEAM FLY
strat)-y 0Hans)n, Nohria, ; 3i)rn)y, !"""2 and 7)ta5routin)s in i7+,)7)ntin- a ?M syst)7 0Dav)n+ort ; Prusak, !""&2. 4aci,itatinnonroutin) @ork So, in th) ,it)ratur) @) hav) as r)+ort)d by Ad,)r, *o,do4tas, thos) @ho ar-u) that )44ici)ncy and 4,)(ibi,ity ar) 7utua,,y and L)vin) 0!"""2, th) Coint )(c,usiv), @hi,) oth)rs ar-u) that th)y ar) +)r4)ct,y tasks o4 )(+,oitation and co7+atib,). At th) sa7) ti7), in +ractic) @) hav) co7+ani)s )(+,oration o4 that ar) i7+,)7)ntin-, o4t)n kno@,)d-) si7u,tan)ous,y, 6RP syst)7s +ro+os)d by that 4ocus on i7+rovinMarch 0!""!2 )44ici)ncy and ?M syst)7s that and r)sourc) r)co7bination 4or 4ocus on 4,)(ibi,ity. In this +a+)r @) consid)r a co7+any that is innovation as ar-u)d by *a,uni ind))d i7+,)7)ntinth)s) t@o initiativ)s si7u,tan)ous,y in and Rodan ord)r to )(+,or) @h)th)r th)y 0!""&2. ar) in +ractic) co7+,i7)ntary Mor)ov)r, r)s)arch)rs hav) or contradictory. *iv)n th) ,ack o4 +r)vious )7+irica, r)s)arch, 4ound this is consid)r)d to b) an consid)rab,) i7+ortant ar)a o4 inv)sti-ation. )7+irica, S+)ci4ica,,y, this cha+t)r r)+orts )vid)nc) to an )7+irica, study that su++ort th) )(+,or)d th) int)rr),ationshi+s ar-u7)nt that cross54unctiona, b)t@))n 6RP, ?M and or d)+art7)nta, or-ani8ationa, )44ici)ncy and 4,)(ibi,ity. 3h) study ai7)d to kno@,)d-) ans@)r th) 4o,,o@inthr)) int)-ration r)s)arch qu)stions 0!2 Fhat 4aci,itat)s th) ar) th) si7i,ariti)s and 7utua, r)in4orc)7)nt o4 di44)r)nc)s b)t@))n 6RP and ?M in t)r7s o4 th)ir )44ici)ncy and charact)risticsZ 0/2 Ho@ do 6RP 4,)(ibi,ity 0).-., D)7s)t8, !""!N and ?M in4,u)nc) )ach oth)r ?o-ut ; Eand)r, @h)n th)y ar) i7+,)7)nt)d @ithin a sin-,) or-ani8ationZ !""/N Pisano, !""G2. 3h) n))d 0#2 Ho@ do)s th) co7bination o4 6RP and ?M in4,u)nc) 4or cross5 or-ani8ationa, )44ici)ncy and 4unctiona, 4,)(ibi,ityZ kno@,)d-) int)-ration coincid)s @ith th) -ro@innu7b)r o4 4ir7s, @hich syst)7atica,,y 7ana-) th)ir kno@,)d-) throu-h initiativ)s, such as a++ointin- a chi)4 kno@,)d-) o44ic)r 06ar, ; Scott, !"""2, d)v),o+in- a ?M
RESEARCH CONTE,T AND METHODS

*uid)d by th) abov) r)s)arch qu)stions, )7+irica, r)s)arch bas)d on th) cas) study a++roach 0Stak), !""1N Qin, !"&G2 @as conduct)d b)t@))n !""& and !""" to -)n)rat) in5 X!Y d)+th insi-hts. <o7+any A, a to+5,)a-u) 7u,tinationa, +,ay)r in th) )n-in))rinindustry, d)si-ns and
7anu4actur)s standard and custo75bui,t +roducts and +rovid)s consu,tins)rvic)s 4or cor+orat) c,i)nts across th) -,ob). 3h) cas) co7+any start)d its -,oba, 6RP i7+,)7)ntation durinth) third quart)r o4 !""1 and co7+,)t)d it durin- !""&. 3h) i7+,)7)ntation o4 6RP @as 4aci,itat)d by Air7 E, a ,)adinI3 s)rvic) +rovid)r and ,on-5t)r7 strat)-ic +artn)r o4 <o7+any A. Durin- th) i7+,)7)ntation o4 6RP, in ,at) !""%, anoth)r critica, co7+any5 @id) initiativ)B kno@,)d-) 7ana-)7)ntB @as start)d. 3h) i7+,)7)ntation o4 ?M )nco7+ass)d various
initiativ)s, such as 4or7in- a +roC)ct t)a7 and st))rin-rou+, id)nti4yin- stak)ho,d)r -rou+s, bui,din- a cor+orat)5 @id) kno@,)d-) dir)ctory and ?M F)b sit) on th) 4ir7Ks intran)t, and trainincours)s and @orksho+s. 3hr)) sourc)s o4 )vid)nc) @)r) co,,)ct)d 4ro7 #% int)rvi)@s 0/1 4irst int)rvi)@s and !/ 4o,,o@5u+ int)rvi)@s2, on5sit) obs)rvation, and )(a7inin- docu7)ntation, inc,udin- @ritt)n r)+orts, ad7inistrativ) docu7)nts, archiv)s and n)@s,)tt)rs. Mu,ti+,) data co,,)ction 7)thods @)r) )7+,oy)d not on,y 4or th) +ur+os)s o4 )nhancin- th) richn)ss o4 4indin-s, but a,so 4or th) +roc)ss o4 trian-u,ation as a 7)ans o4 )nsurin- th) va,idity o4 th) 4indin-s 0Bry7an, !"&"N D)n8in, !"&&N Qin, !"&G2. Data co,,)ct)d 4ro7 th)s) sourc)s @as th)n ana,y8)d bas)d on th) codint)chniqu)s +ro+os)d by Mi,)s and Hub)r7an 0!""G2 and Strauss and <orbin 0!""$2. 67)r-in- insi-hts @)r) it)rativ),y co7+ar)d @ith th) curr)nt ,it)ratur) 4or th) +ur+os)s o4 id)nti4yin- and articu,atin-
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th)or)tica, si7i,ariti)s and di44)r)nc)s. 3h) 4o,,o@in- s)ction out,in)s th) r)s)arch r)su,ts d)riv)d 4ro7 th) ana,ysis.
X!Y
Na7)s o4 th) cas) co7+any and consu,tin- 4ir7 hav) b))n dis-uis)d.
ANALYSIS AND DISCUSSION

*uid)d by th) +ro+os)d thr)) r)s)arch qu)stions, th) 4o,,o@in- discussion is structur)d as 4o,,o@s. 3o start @ith, th) charact)ristic di44)r)nc)s and si7i,ariti)s b)t@))n 6RP and ?M syst)7s, at ,)ast as )nact)d in th) cas) co7+any, @i,, b) addr)ss)d. Ao,,o@inthat, th) r),ationshi+ b)t@))n 6RP and ?M @i,, b) )(a7in)d bas)d on a th)or)tica, 4ra7)@ork +rovid)d by P)tti-r)@ and Fhi++ 0!""!2. 3h) ana,ysis o4 cont)nt, cont)(t and +roc)ss 4urth)r ,)ads to th) discussion o4 ho@ 6RP and ?M individua,,y and co,,)ctiv),y in4,u)nc) or-ani8ationa, )44ici)ncy and 4,)(ibi,ity by bui,din- u+on th) th)or)tica, ar-u7)nt o4 Ad,)r )t a,. 0!"""2. ERP an" 5$: ifferences an" 4i'ilarities in Characteristics
Fith a co77on -oa, o4 i7+rovin- +ro4itabi,ity and co7+)titiv) advanta-), th)s) t@o initiativ)s @)r) consid)r)d to b) t@o 7aCor 7i,)ston)s 4or th) co7+any 4or radica, +roc)ss innovation. 3h) 7ain obC)ctiv) o4 6RP is to i7+rov) +roductivity and +roduct )44ici)ncy throu-h th) )44)ctiv) 7ana-)7)nt o4 data and in4or7ation, as @),, as a c,os)r 7onitorin- and continuous i7+rov)7)nt o4 +roduction in+ut, +roc)ss)s and out+ut. In oth)r @ords, th) ado+tion o4 6RP in this cas) 7irrors so7) oth)r )7+irica, studi)s that )7+hasi8) ho,istic i7+rov)7)nt o4 )44ici)ncy throu-h cost r)duction, )nhancin- d)cision qua,ity and incr)asin- +roductivity 0).-., Scott ; ?aind,, /$$$N So,i7an ; Qouss)4, !""&2. In co7+arison to 6RPKs +roduction ori)ntation, ?M in th) cas) co7+any conc)ntrat)d on th) uti,i8ation o4 kno@,)d-) that @as a++,i)d 4or +roduct and +roc)ss innovation. Particu,ar,y, th) )7+hasis on continuous ,)arnin- and b)nch7arkin-, at th) individua, and d)+art7)nta, ,)v),s, @as 4ound to b) an a,t)rnativ) a++roach to i7+rovin+roductivity, and a critica, sourc) 4or or-ani8ationa, r)n)@a, 0Jon)s ; H)ndry, !""G2. In t)r7s o4 kno@,)d-) codi4ication, ?M @as d)si-n)d and i7+,)7)nt)d to 4aci,itat) kno@,)d-) sharin- across th) cas) co7+anyKs -,oba, o+)ration to avoid Rr)inv)ntinth) @h)),S 0Bro@n ; Food,and, !"""N *urt))n, !""&2. Ho@)v)r, 7or) critica,,y, such a codi4ication )44ort ai7)d to c,)ar,y ,ist t)chno,o-ica, so,utions and kno@5ho@ so that it @as a++ar)nt @hich int),,)ctua, ca+ita, ri-hts do not )(c,usiv),y b),on- to th) cas) co7+any. Aor instanc), so7) o4 th) n)@ d)si-ns or t)chno,o-ica, so,utions cr)at)d by th) consu,tancy division @)r) bas)d on c,i)ntsK kno@5ho@ and @)r) r)-ist)r)d by th) c,i)nt. L)-iti7at),y, kno@,)d-) cr)at)d on such a basis cannot b) 4urth)r a++,i)d in th) cas) co7+any or in b)ha,4 o4 oth)r c,i)nts. H)nc), in this co7+any th) ?M initiativ) 4ocus)d not on,y on avoidin- r)+)at)d )44orts in cr)atin- si7i,ar so,utions or d)si-ns but a,so on avoidin- i,,)-a, acts @hich )7+,oy))s 7i-ht 7istak)n,y 7ak) by usin- a so,ution that actua,,y b),on-)d to a c,i)nt co7+any. 3his @as a distinctiv) charact)ristic o4 th) ?M initiativ) in <o7+any A that di44)rs 4ro7 oth)r cas)s, such as #M 0Brand, !""&2, Buck7an Lab 0Pan ; Scarbrou-h, !"""2 and <),,t)ch 0McNa7ara ; Bad)n5Au,,)r, !"""2. A k)y 4)atur) o4 th) 6RP syst)7 ado+t)d in th) cas) co7+any @as th) )stab,ish7)nt o4 a cor+orat)5@id) co77on I3 in4rastructur), @hich u+-rad)d and int)-rat)d )(istinin4rastructur)s and syst)7s. A,on- @ith th) advanc)7)nt o4 I3 in4rastructur), th) cas) co7+any a,so @)nt throu-h a r)structurin- +roc)ss invo,vin- th) +roduction, ,o-istics
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or-ani8ation o4 +roduct5bas)d ,)arnin- and innovation co77uniti)s across th) -,oba, and @ar)hous) o+)ration. In th) cas) divisions. 3hrou-h r)ducin- co7+any, th)s) Rco77uniti)s o4 +ractic)S 0Bro@n ; Du-uid, th) sh))r !""!N F)n-)r ; Snyd)r, /$$$2 nu7b)r o4 ar) -)o-ra+hica,,y dis+)rs)d. @ar)hous)s 3his 7)ans that co77unity 04ro7 !GG 7)7b)rs hav) to r),y on I<3 @or,d@id) 4or rath)r than 4ac)5to54ac) ra@ 7at)ria,s, co7+on)nts and int)raction in ord)r to 4inish)d +roducts co77unicat) and shar) id)as. at various si8)s In oth)r @ords, th)y ar) arran-)d as virtua, t)a7s to 1!2, th) ,o-istics division 0Li+nack ; Sta7+s, !""%2. @as r)structur)d bas)d on r)-ions In t)r7s o4 i7+acts on or-ani8ationa, +roc)ss)s, th) rath)r than ado+tion o4 6RP ,)d to th) +roducts and r)+ort)d dir)ct,y c)ntra,i8ation o4 +rocur)7)nt and a r)duction in th) nu7b)r o4 to th) r)-iona, h)ad o44ic)s and su++,i)rs and s)rvic) +rovid)rs. X/Y 3h) rationa,) b)hind th)s) h)ad o44ic) rath)r than +roduction. r)arran-)7)nts can b) ,ar-),y )(+,ain)d by th) curr)nt 3h) 7ain r)construction in advocacy o4 6RP, as such syst)7s ar) +ro7ot)d as th) +roduction )nab,in- 4ir7s to synth)si8) division @as to outsourc) +art o4 int)rna, +rocur)7)nt )44orts and k))+ on track @ith inv)ntory th) co7+on)nt ,)v),s 0).-., A,5Mashari ; Eairi, +roduction throu-h ori-ina, /$$$N Fa-,), !""&2. Additiona,,y, 6RP +)r7its th) )qui+7)nt trans+ar)ncy o4 +roduct5 and 7anu4acturin+roduction5r),at)d in4or7ation 0:6M2 and to across 4unctions, +articu,ar,y 4ocus on hi-h a4t)r int)-ratin- various syst)7s va,u)5add)d +roducts, such as that ar) 4unction5 or division5 s+)ci4ic, such as th) +roduct custo75bui,t data 7ana-)7)nt 0PDM2 syst)7 )n-in)s.
o4 th) o+)ration )n-in))rindivision. Mor) i7+ortant,y, th) In contrast to radica, structura, i7+,)7)ntation o4 6RP )nab,)d chan-)s tri--)r)d th) or-ani8ation to s)t u+ a sin-,), uni4i)d +roductivity and by th) 6RP )44ici)ncy 7)asur)7)nt, @hich ado+tion, k)y initiativ)s r),at)d @as a++,icab,) to a,, +roduction sit)s. Aurth)r7or), 6RP a,so to ?M @)r) )nab,)d th) cas) co7+any to co7+arativ),y continuous,y and syst)7atica,,y incr)7)nta,. In )va,uat) su++,i)rsK and s)rvic) addition to +rovid)rsK +)r4or7anc) on a various cost5)44ici)ncy basis. @orksho+s and trainincours)s 4or diss)7inatin- 3his uni4i)d +)r4or7anc) ?M conc)+ts and 7)asur)7)nt @as 4urth)r too,s, on) o4 th) ,ink)d to on) o4 th) ?M 7ost critica, st)+s initiativ)s, as th) outco7) o4 th) cross5sit) +)r4or7anc) @as th)
co7+arison @as sourc)s o4 kno@,)d-) into th) us)d as an or-ani8ation 0Hub)r, !""!2. indicator 4or 3h) ?M initiativ) th)n individua,sK i7+rov)d th) intra5 and trainin- and int)ror-ani8ationa, int)-ration d)+art7)ntsK o4 kno@,)d-), a,,o@inth) 4ir7 ,)arnin- n))ds. to d)v),o+ throu-h a In addition to th) continuous cyc,) o4 innovation i7+,ication 4or 0*rant, !""'2. 3h) abov) continuous discussion, r),at)d to th) ,)arnin-, ?M @as distinctiv) charact)ristics o4 i7+,)7)nt)d to 6RP and ?M, 4urth)r sur4ac)s )nsur) that th) n))d 4or antici+atinkno@,)d-) @h)th)r th)s) t@o initiativ)s cr)at)d and ar) co7+,)7)ntary or acquir)d 4ro7 contradictory. or-ani8ationa, +roc)ss)s, 7ain,y ERP an" 5$: +roduction and Co'ple'entar( or consu,tancy, @as Contra"ictor(B constant,y ca+tur)d and Bui,din- u+on th) abov) codi4i)d. discussion on charact)ristic Mor)ov)r, si7i,ariti)s and di44)r)nc)s, invo,vinthis s)ction )(a7in)s th) su++,i)rs and r),ationshi+ b)t@))n 6RP s)rvic) +rovid)rs and ?M 4ro7 thr)) at an )ar,y sta-) distinctiv) but int)rr),at)d o4 +roduct and di7)nsions, na7),y, +roc)ss d)si-ns cont)nt, cont)(t and a,,o@)d th) +roc)ss 0P)tti-r)@ ; Fhi++, co7+any to !""!2. chann), )(t)rna,
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th) cas) co7+any conc)ntrat)d on th) 7obi,i8ation o4 kno@,)d-) throu-h )ncoura-inth) Content: <nfor'ation !s% codi4ication o4 )(+,icit kno@,)d-) and th) or-ani8ation o4 ,)arnin5no,le"ge and innovation co77uniti)s as a 7)ans o4 sharin- tacit Si7i,ar to oth)r )7+irica, studi)s kno@,)d-) 0Bro@n ; Du-uid, 0).-., A,5Mashari !""!N :rr, !""$2. 3h) cas) co7+anyKs s+)ci4ic )7+hasis on ; Eairi, /$$$N kno@,)d-) )(+,oitation 0March, P)r)ira, !"""2, !""!2 and distribution 0Hub)r, th) !""!2 su--)sts that th) 4ir7Ks i7+,)7)ntation cr)ation o4 kno@,)d-) ,ar-),y o4 6RP in th) d)+)nds u+on th) +roc)ss)s o4 cas) co7+any )(chan-) and co7bination conc)ntrat)d 0Naha+i)t ; *hosha,, !""&2. 3h) +ri7ari,y on th) )(chan-) +roc)ss @as 4aci,itat)d )44ici)ncy o4 throu-h th) or-ani8ation o4 +roducin-, co77uniti)s and th) avai,abi,ity -ath)rin- and o4 a cor+orat)5@id) )(+)rtis) 7ana-indatabas). in4or7ation. 644ici)ncy 3h)s) distinctiv) 4oci and i7+rov)7)nts ori)ntations indicat) that 6RP @)r) sou-ht and ?M can b) conc)+tua,,y throu-h co7+,)7)ntary, b)caus) )ach )nhancin- th) syst)7 is d)si-n)d and in4or7ation i7+,)7)nt)d 4or a c,)ar,y +roc)ssind)4in)d 7ana-)ria, +ur+os), ca+abi,ity o4 th) notab,y 7ana-inco7+any, or-ani8ationa, in4or7ation or )nab,)d by th) kno@,)d-). 3h) t@o syst)7s syst)7ati8ation can b) 7utua,,y r)in4orc)d and b)caus) it is ar-u)d that an c)ntra,i8ation o4 or-ani8ationKs in4or7ation in4or7ation +roc)ssin- ca+abi,ity stron-,y 7ana-)7)nt in4,u)nc)s ho@ kno@,)d-) can and th) ado+tion b) )44)ctiv),y cr)at)d, )(+,oit)d o4 standard and ca+tur)d 0Hackbarth ; a++roach)s to *rov)r, !"""N Na7bisan, th) codi4ication A-ar@a,, ; 3anniru, !"""N and +roc)ssin3)nkasi ; Bo,and, !""'2. And o4 in4or7ation. th) distribution and avai,abi,ity In oth)r @ords, o4 kno@,)d-) d)t)r7in)s th) throu-h a @ay in @hich in4or7ation is co77on I3 int)r+r)t)d by or-ani8ationa, in4rastructur), 7)7b)rs 0Hub)r, !""!N in4or7ation that Shrivastava ; Schn)id)r, !"&G2. us)d to b) Ho@)v)r, such a co5r),ation 4unctiona,,y r)su,tinin th) 7utua, conc)a,)d r)in4orc)7)nt b)t@))n 6RP and b)ca7) avai,ab,) ?M can a,so 7ask and ov)r,ook throu-hout th) th) distinctiv), and y)t or-ani8ation in a 7utua,,y int)rd)+)nd)nt, +r)d)4in)d natur)s o4 in4or7ation and 4or7at 0Fa-,), kno@,)d-). In4or7ation has to !""&2. b) int)r+r)t)d and this M)an@hi,), ?M in on)Ks kno@,)d-). ?no@,)d-), in
int)r+r)tation @i,, d)+)nd on
turn, @i,, b) d)+)nd)nt natur) o4 kno@,)d-) in4,u)nc)d by 0Nonaka ; ?onno, !""&N in4or7ation on) S+)nd)r, !""'N 3soukas, !""G2. has 0*a,,i)rs ; Aor instanc), th) d)cision about N)@),,, /$$$2. @hich 7at)ria, to s),)ct to 3h) d)si-n o4 6RP 7ak) an )n-in)Ks b,ad)s @i,, i7+os)s a d)+)nd on ho@ th) )n-in) @i,, univ)rsa, 4ra7) o4 b) us)d 0cont)(t d)+)nd)nt2 codin- and and th) t)chno,o-y o4 int)r+r)tin+roc)ssin- such ra@ 7at)ria,. in4or7ation as a 3h) rationa,) b)hind th) choic) 7)ans o4 o4 7at)ria, cannot b) d)tach)d )nhancin4ro7 its cont)(t and a++,i)d to consist)ncy and a,, ty+)s o4 )n-in)s, si7+,y )44ici)ncy. As b)caus) o4 th)ir di44)r)nt such, th) usa-). 3h)r)4or), th) in4or7ation is distinctiv)n)ss o4 in4or7ation d)tach)d 4ro7 its and kno@,)d-) not on,y cont)(t. Ho@)v)r, su--)sts di44)r)nt i7+,ications in trans,atinand va,u)s 4or or-ani8ations, in4or7ation into but a,so su--)sts that both 6RP kno@,)d-) th) and ?M ar) n))d)d in ord)r to cont)(t is r),)as) and ,)v)ra-) th) i7+ortant, sinc) r)s+)ctiv) va,u)s o4 in4or7ation to d)tach and kno@,)d-). kno@,)d-) 4ro7 its cont)(t and Conte0t: <ntra3 conc)+tua,i8) it in Organi*ational !s% an abstract 4or7 <nterorgani*ational 7i-ht 7)an that it ,os)s its D)s+it) th) 4act that both th) 7)anin6RP and ?M initiativ)s ai7)d 0B,ack,)r, !""12 to br)ak do@n 4or7a, b)caus) o4 th) d)+art7)nta, and divisiona, socia,,y5 boundari)s, th) )7b)dd)d and i7+,)7)ntation o4 th) t@o cont)(t5 syst)7s in th)
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did not actua,,y ha++)n in th) cas) co7+any b)caus) th)s) cas) co7+any ,)d co77uniti)s @)r) conscious,y or-ani8)d so that any -iv)n to an co77unity did not hav) unantici+at)d cons)qu)nc). 3h) r)+r)s)ntation 4ro7 7or) than on) +roduction unit. 3his @as a 6RP i7+,)7)ntation +o,itica, d)cision invok)d to try to r)duc) con4,ict. As a r)su,t, ,)d to an ho@)v)r, both th) 6RP and ?M )7+hasis on initiativ)s h),+)d to cr)at) a 7)asurinn)@ boundary ,ay)r @ithin th) +hysica, out+ut +roduction division. 3his across th) i7+)d)d, to so7) )(t)nt, th) +roduction division. Rath)r sou-ht5a4t)r kno@,)d-) sharinand cr)ation across th) than incr)as) co,,aboration as +roduction division 0Nonaka ; ?onno, !""&N von ?ro-h, int)nd)d, this crysta,,i8ation o4 IchiCo, ; Nonaka, /$$$2. In this instanc) th)n, th) 6RP and ?M individua, and initiativ)s @)r) not 7utua,,y d)+art7)nta, su++ortiv). Rath)r th)y both +)r4or7anc) in r)in4orc)d th) cr)ation o4 th) +roduction boundari)s @ithin th) division @as 4ound to incr)as) +roduction division. int)rna, Fithin th) int)ror-ani8ationa, co7+)tition. cont)(t, on) o4 th) k)y issu)s <ons)qu)nt,y, )7)r-in- 4ro7 th) ana,ysis @as boundari)s b)t@))n di44)r)nt th) chan-)s in r),ationshi+s @ith +roduction units su++,i)rs and s)rvic) +rovid)rs. @)r) r)in4orc)d, Ao,,o@inth) ado+tion o4 6RP and th) strat)-ic consid)ration o4 )v)n thou-h cost r)duction, th) nu7b)r o4 in4or7ation su++,i)rs and s)rvic) +rovid)rs 4,o@)d 4r)),y across units. 3his @as drastica,,y r)duc)d, r)in4orc)7)nt o4 r)7ovin- in +articu,ar thos) @ith @ho7 th) cas) co7+any had boundari)s s7a,, and in4r)qu)nt b)t@))n units transactions. 3h)r) @)r) b)n)4its @ithin th) +roduction 4ro7 conso,idatin- +urchasindivision 7)ant +o@)r and i7+rovin- su++,y that kno@,)d-) chain 7ana-)7)nt throu-h sharin- and havin- 4)@)r su++,i)rs and int)-ration across s)rvic) +rovid)rs, as oth)rs hav) th) division @)r) 4ound 0).-., And)rson, Britt, ; o4t)n Aavr), !""%2. At th) sa7) ti7), +rob,)7atic, )v)n ho@)v)r, r),ationshi+s @ith so7) thou-h s7a,,)r su++,i)rs and s)rvic) in4or7ation @as +rovid)rs had b))n vita, sinc) shar)d. Fhi,) th) th)s) or-ani8ations had b))n cr)ation o4 activ),y invo,v)d in d)v),o+in,)arnin- and n)@ +roducts. Fith th) r)duction innovation in th) nu7b)r o4 su++,i)rs, co77uniti)s r),ationshi+s @ith th)s) s7a,,)r cou,d hav), to su++,i)rs had b))n t)r7inat)d, so7) )(t)nt at thus curtai,inth)ir +artici+ation ,)ast, ov)rco7) in n)@ +roduct d)v),o+7)nt. 3h) th)s) r)in4orc)d i7+act o4 such chan-) @as boundari)s, this 4or)s))n by th) R;D division but
i-nor)d by th) int)-ration b) achi)v)d. 3his 7aCority o4 6RP activity th)n r)in4orc)d th) stak)ho,d)rs, a++roach o4 6RP. 7ain,y th) board 7)7b)rs and thos) 4ro7 th) Processes: Tas#3Relate" !s% 4ocial +roduction division. A-ain, ho@)v)r, th) ?M In t)r7s o4 task5r),at)d +roc)ss)s, th) 4indin-s su--)st initiativ) did not that th) i7+,)7)ntation o4 6RP ov)rco7) this +rob,)7 but rath)r had drastica,,y i7+rov)d th) r)in4orc)d it. 3his ti7) to +roduc) and -ath)r @as b)caus) on) critica, in4or7ation 4or strat)-ic d)cision57akin-, in +articu,ar o4 th) activiti)s r),at)d to 4inancia, +)r4or7anc) und)r th) ?M and +roductivity on a -,oba, initiativ) @as to sca,) 0Dav)n+ort, !""&N ?u7ar )stab,ish and ; Hi,,)-)rb)r-, /$$$2. In ca+ita,i8) on strat)-ic +artn)r5 addition, th) i7+,)7)ntation o4 ?M @as 4ound to 4aci,itat) th) shi+s. 3his @as )44)ctiv) and syst)7atic achi)v)d by )(+,oitation o4 kno@,)d-) @orkin- @ith a 0March, !""!2 intra5 and 7uch s7a,,)r int)ror-ani8ationa,,y and nu7b)r o4 i7+rov) continuous ,)arninsu++,i)rs and 4ro7 +ast actions 4or 4utur) s)rvic) +rovid)rs. actions 0Aio, ; Ly,)s, !"&12. 3his @as don) b)caus) it @as :n) qu)stion that )7)r-)d is b),i)v)d that on,y @h)th)r th) i7+rov)7)nt o4 by @orkin- @ith a or-ani8ationa, +roc)ss)s, s7a,,)r nu7b)r o4 +articu,ar,y task5r),at)d on)s, +artn)rs cou,d th) r)su,ts 4ro7 th) n)c)ssary hi-h i7+,)7)ntation o4 6RP or ?M ,)v),s o4 trust and or a
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co7bination o4 th) t@o. 6(t)ndin- th) +r)vious discussion on th) ori)ntation and 4ocus o4 6RP and ?M, it is c,)ar that )ach initiativ) a,on) @ou,d hav) +rovid)d on,y ,i7it)d +ot)ntia,, and va,u) to th) cas) co7+any. 3h) kno@,)d-)5 bas)d vi)@ o4 th) 4ir7 ar-u)s that co7+)titiv)n)ss d)+)nds on th) )44)ctiv) int)-ration and 7ana-)7)nt o4 kno@,)d-) 0*rant, !""'N S+)nd)r, !""'2. :n th) oth)r hand, th) in4or7ation +roc)ssin- vi)@ su--)sts that )nhancin+)r4or7anc) d)+)nds on 7ini7i8inint)rna, and )(t)rna, unc)rtainty by i7+rovinin4or7ation 4,o@ 0Do,,in-)r, !"&GN *a,braith, !"%%2. Both vi)@s s))7 vita,, and th)ir r)s+)ctiv) +rob,)7s @)r) so,v)d in th) cas) co7+any by th) co7bination o4 th) 6RP and ?M initiativ)s.
intra5 and int)ror-ani8ationa, socia, +roc)ss)s had b))n a,t)r)d and r)sha+)d throu-h th) i7+,)7)ntation o4 th) t@o initiativ)s. 3his chan-) @as )vid)nt in th) occurr)nc) o4 int)r-rou+ con4,icts, r)su,tin4ro7 th) shi4t in in4or7ation o@n)rshi+. It @as 4ound that conv)rtin- )n-in))rin- and R;D in4or7ation into th) 4or7at n)c)ssary 4or th) 6RP syst)7 had shi4t)d in4or7ation o@n)rshi+ to th) +roduction division. 3his occurr)d b)caus) th)r) @as no syst)7 avai,ab,) @hich cou,d +)r4or7 a t@o5@ay trans,ation b)t@))n in4or7ation +roduc)d by th) )n-in))rinand +roduction divisions and b)t@))n 6RP and oth)r syst)7s, such as th) +roduct data 7ana-)7)nt 0PDM2 syst)7. In oth)r @ords, in4or7ation +roduc)d by th) )n-in))rin- and R;D divisions @as 7ad) avai,ab,) to th) +roduction division throu-h 6RP, but not 4ro7 th) +roduction division to oth)rs. R)actions o4 r)sistanc) to th) ,oss o4 in4or7ation o@n)rshi+ hav) b))n obs)rv)d in oth)r )7+irica, obs)rvations o4 or-ani8ationa, chan-) 0).-., Hutt, Fa,k)r, ; Arank@ick, !""1N ?irk7an ; Sha+iro, !""%N Nad,)r, !"&!2. In th) cas) co7+any, th) r)sistanc) @as )vid)nt on th) +art o4 th) )n-in))rs in th)ir r),uctanc) to -)t invo,v)d in, and ind))d tota, dis)n-a-)7)nt 4ro7, att)7+ts to )ncoura-) th)ir sharin- and int)-ration o4 kno@,)d-). 3his +rob,)7 und)r+ins th) 4act that an unba,anc)d +o@)r distribution b)t@))n divisions can ,)ad to Rbr)akdo@nsS o4 th) socia, +roc)ss 0Brooks, !""GN P4)44)r, !"&!2 and as a r)su,t ha7+)r th) 4,o@ o4 kno@,)d-) across 4unctions 0Brass ; Burkardt, !""#2.
3h) )(a7ination o4 th) r),ationshi+ Mor)ov)r, th) a,t)ration o4 b)t@))n 6RP and int)ror-ani8ationa, socia, +roc)ss)s @as )vid)nt in ?M a,so th) chan-) in th) ,andsca+) su--)st)d that o4 socia, n)t@orks. R)4)rrin-
to th) )ar,i)r )(a7+,), th) r)duction in th) nu7b)r o4 su++,i)rs and s)rvic) +rovid)rs ,)d to th) ,oss o4 so7) va,uab,) Rsocia, ca+ita,S 0Naha+i)t ; *hosha,, !""&2, @hich had b))n d)v),o+)d ov)r ti7). Accordin- to Naha+i)t and *hosha,, socia, ca+ita, is vita, 4or kno@,)d-) sharin- @ithin and across socia, n)t@orks and critica, to th) cr)ation o4 n)@ kno@,)d-). Aro7 th) abov) discussion, it is c,)ar that 6RP, in contrast @ith ?M, had t)nd)d to 4ocus on th) task5r),at)d
+roc)ss and i-nor)d th) so4t issu)sBth) socia, +roc)ss)s. Such an ov)rsi-ht a,so r)4,)cts th) curr)nt th)or)tica, d)v),o+7)nt o4 6RP and r)4,)cts its narro@ 4ocus on or-ani8ationa, )44ici)ncy and +roductivity. Organi*ational Efficienc( an" +le0ibilit(
Movin- b)yond th) trad)5o44 b)t@))n )44ici)ncy and 4,)(ibi,ity, Ad,)r )t a,. 0!"""2, bas)d on an )7+irica, study o4 3oyotaKs +roduction syst)7, su--)st 4our 7)chanis7s that can a,,o@ a co7+any to b) both )44ici)nt and 4,)(ib,) 7)ta5 routin)s, )nrich7)nt, s@itchinand +artitionin-. Accordin- to th)7, 7)ta5routin)s, d)4in)d as Rstandardi8)d +roc)dur)s 4or chan-in- )(istin- routin)s and 4or cr)atin- n)@ on)sS 0+. 1$2, ar) vita, 4or )nhancin- th) )44ici)ncy o4 nonroutin) o+)rations. 3h) conc)+t o4 )nrich7)nt und)r+ins a ,)arnin- 7)chanis7 by @hich nonroutin) tasks ar) continuous,y int)-rat)d and )7b)dd)d into standardi8)d activiti)s. S@itchin- r)4)rs to th) +roc)ss @h)r)by )7+,oy))s s)qu)ntia,,y +)r4or7 routin) and th)n nonroutin) tasks. Aina,,y, +artitionin-
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su--)sts th) cr)ation o4 or-ani8ation sub-rou+s that Rs+)cia,i8) in routin) or in nonroutin) tasksS 0+. 1$2. It is +ossib,) to consid)r ho@ th) 6RP and ?M initiativ)s in th) cas) co7+any i7+act)d on th)s) 7)chanis7s. In t)r7s o4 7)taroutin)s, both 6RP and ?M a++)ar)d to +ro7ot) th) )nact7)nt o4 7)taroutin)s. 3h) ado+tion o4 6RP had ,)d th) co7+any to standardi8) th) activiti)s o4 in4or7ation +roc)ssin- and 7ana-)7)nt. Mor) critica,,y, n)@ or-ani8ationa, +roc)ss)s @)r) d)si-n)d and i7+,)7)nt)d to 7a(i7i8) th) +ot)ntia, o4 6RP 03ay,or, !""&2. Si7i,ar ar-u7)nts can b) )7+,oy)d to conc)+tua,i8) th) ro,) o4 ?M, sinc) this a,,o@)d th) co7+any to syst)7atica,,y )(t)rna,i8) and codi4y kno@,)d-) 4or cata,y8in- innovation 0von ?ro-h )t a,., /$$$2. In t)r7s o4 )nrich7)nt, 6RPKs d)si-n and ori)ntation had t)nd)d to inhibit this +roc)ss. 3his @as b)caus) it )ncoura-)d th) d)+)nd)nc) on +r)d)4in)d and +r)s),)ct)d routin)s. 3h) 6RP syst)7 assu7)d routin) activiti)s and did not tak) into account th) occurr)nc) o4 nonroutin) activiti)s. In oth)r @ords, 6RP @as insta,,)d to 7a(i7i8) or-ani8ationa, )44ici)ncy at th) cost o4 4,)(ibi,ity. Ho@)v)r, th) ?M initiativ) )ncoura-)d n)@ kno@,)d-) -)n)rat)d by th) ,)arnin- and innovation co77uniti)s to b) 4urth)r a++,i)d in di44)r)nt tasks. In +articu,ar, various +i,ot t)a7s, bas)d on th) ,)arnin- co77uniti)s, @)r) 4or7)d as +ion))rs 4or +roc)ss and +roduct innovation. 3his su--)sts that th) ?M initiativ) in th) cas) co7+any is critica,, +articu,ar,y in co7+,)7)ntinth) ,i7itation o4 6RP and )7b)ddin- nonroutin) tasks into )(istin- or-ani8ationa, routin)s. 6RPKs stron- )7+hasis on )44ici)ncy @as 4urth)r )vid)nt in its i7+act on th) +h)no7)non o4 s@itchin-. Fithin th) +roduction division, 4or instanc), @h)r) th) i7+act o4 6RP @as obs)rv)d, th)r) @as a ,ar-) +ro+ortion o4 standardi8)d activiti)s and v)ry ,itt,) i4 any s@itchin- @as )vid)nt. S@itchin- did occur occasiona,,y, in +articu,ar throu-h invo,v)7)nt in trainin- and +artici+ation in ,)arnin- and innovation co77uniti)s. Ho@)v)r, th) tar-)ts o4 trainincours)s @)r) +ri7ari,y +oor +)r4or7)rs. In oth)r @ords, individua,s and units that had achi)v)d th) +roduction standard and tar-)t @)r) )(c,ud)d 4ro7 th) activiti)s o4 s@itchin-. So s@itchin- in th) cas) co7+any did not )ncoura-) anythin- oth)r than a r)in4orc)7)nt o4 th) standardi8)d activiti)s. In contrast, tasks +)r4or7)d by th) consu,tancy division @)r) hi-h,y div)rs) and nonroutini8)d, coincidin- @ith oth)r )7+irica, accounts 0).-., Martiny, !""&N Aincha7, !"""2. Q)t, )v)n h)r) @as ,i7it)d )vid)nc) o4 s@itchin- @as obs)rv)d. 3h) tasks +)r4or7)d in th) consu,tancy division d)7and)d hi-h ,)v),s o4 4,)(ibi,ity. 644ici)ncy @as 7uch ,)ss r),)vant. So individua,s in this division @)r) a,7ost )(c,usiv),y invo,v)d in nonroutin) tasks and rar),y s@itch)d to routin) tasks. 3h) 4act that ,itt,) s@itchinoccurr)d in )ith)r division su--)sts a contin-)ncy account is n)c)ssary, @ith di44)r)nt ty+)s o4 tasks r)quirin- di44)r)nt or-ani8ationa, structur)s 0Burns ; Sta,k)r, !"'!N La@r)nc) ; Lorsch, !"'%2. In this s)ns) th) 6RP syst)7 had )ncoura-)d +artitionin-, @ith di44)r)nt divisions s+)cia,i8in- in )ith)r routin) or nonroutin) tasks. So )44ici)ncy and 4,)(ibi,ity @)r) achi)v)d si7u,tan)ous,y by di44)r)nt divisions s+)cia,i8in- in on) or th) oth)r o4 th)s) +roc)ss)s, rath)r than )ach division b)in- invo,v)d in both.
X/Y
In th) study, su++,i)rs r)4)r to th) +rovid)rs o4 tan-ib,) -oods, such as co7+on)nts and ra@ 7at)ria,s, @hi,) s)rvic) +rovid)rs r)4)r to individua,s or or-ani8ations that +rovid) intan-ib,) +roducts, such as consu,tancy or d),iv)rin- trainin- cours)s, to th) 4ir7.
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co7+,)7)ntary outco7)s. Ho@)v)r, such a syn)r-)tic can on,y b) cr)at)d CONCLUSIO outco7) and d)v),o+)d @h)n th) d)si-n N AND o4 task5r),at)d +roc)ss)s 4its IMPLICATI into th) 7)taroutin)s i7+os)d by 6RP and ?M, and th) socia, ONS +roc)ss)s ar) nurtur)d @ithin 4unctions and cross5 3his cha+t)r has 4unctiona,,y. Particu,ar,y, )(+,or)d th) nurturin- such socia, +roc)ss)s si7u,tan)ous @i,, ,ar-),y d)+)nd on ho@ i7+,)7)ntation o4 in4or7ation and kno@,)d-) t@o cont)7+orary o@n)rshi+ can b) di44)r)ntiat)d 7ana-)ria, and ho@ th) ,andsca+) o4 th) syst)7s, 6RP and socia, n)t@ork can b) ?M, and th)ir r)sha+)d. co7bin)d in4,u)nc) on In addition to th) th)or)tica, or-ani8ationa, contribution, this study has )44ici)ncy and id)nti4i)d and )(+,or)d so7) 4,)(ibi,ity. 3h) issu)s that ar) vita, 4or discussion o4 +ractition)rs to tak) into si7i,ariti)s and account. Aor or-ani8ations di44)r)nc)s has +,annin- to ado+t and r)v)a,)d that th) i7+,)7)nt 6RP and ?M, it is t@o syst)7s ar) critica, to consid)r th) di44)r)nt critica, 4or ori)ntations and 4oci associat)d r)vita,i8in@ith )ach initiativ). Mor) or-ani8ations. i7+ortant,y, it @ou,d b) 3hus, @hi,) 6RP Cudicious to )va,uat) and )7+hasi8)s th) +rioriti8) th) cor),ation i7+rov)7)nt o4 b)t@))n or-ani8ationa, in4or7ation )44ici)ncy and 4,)(ibi,ity that +roc)ssin@i,, 4it th) d)si-n and ,on-5 )44ici)ncy, ?M can t)r7 d)v),o+7)nt o4 th) 4aci,itat) th) or-ani8ation. A-ain, th) si7u,tan)ous si-ni4icanc) o4 socia, ca+ita, d)v),o+7)nt o4 and socia, n)t@orks shou,d not an or-ani8ationa, b) und)r)sti7at)d. kno@,)d-) )(+,oration and In r),ation to th) -ro@in- n))d )(+,oitation 4or or-ani8ationa, r)vita,i8ation ca+abi,ity. 3h)ir and trans4or7ation, 4utur) di44)r)nc)s and r)s)arch cou,d us)4u,,y +,ac) si7i,ariti)s @)r) )7+hasis a broad)nin- o4 our 4urth)r )(a7in)d und)rstandin- o4 ho@ di44)r)nt and )va,uat)d initiativ)s can b) int)-rat)d throu-h and ho@ di44)r)nt a++roach)s consid)rinth)ir to int)-ratin- th)s) initiativ)s i7+acts on intra5 can 7a(i7i8) th)ir +ot)ntia, and and ,)v)ra-) co7+)titiv)n)ss. int)ror-ani8ationa Aurth)r7or), 4urth)r r)s)arch , +roc)ss)s. 3h) shou,d a,so critica,,y )va,uat) ana,ysis o4 th) ho@ di44)r)nt or-ani8ationa, cont)nt, cont)(t initiativ)s can b) +rioriti8)d to and +roc)ss o4 avoid +ot)ntia, innovation 6RP and ?M has ov)r,oad. su--)st)d that th) t@o syst)7s can +rovid)
ENDNOTES
1. Na7)s
2.
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Martiny, M. 0!""&2. ?no@,)d-) 7ana-)7)nt at HP consu,tin-. !rgani%ational ynamics, /', %!5&G. McNa7ara, P. and Bad)n5 Au,,)r, <. 0!"""2. L)ssons 4ro7 th) <),,t)ch cas) Ba,ancinkno@,)d-) )(+,oration and )(+,oitation in or-ani8ationa, r)n)@a,. British Journal of Management, !$, /"!5#$%. Mi,)s, M. B. and Hub)r7an , A. M. 0!""G2. 5ualitativ e ata Analysis' An 6(+and)d Sourc)boo k. London Sa-). Nad,)r, D. 0!"&!2. Mana-inor-ani8ation a, chan-) An int)-rativ) +)rs+)ctiv). The Journal of Applied Behavioral Science, !%, !"!5/!!. Naha+i)t, J. and *hosha,, S. 0!""&2. Socia, ca+ita,,
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Managing Change 0/$$$2. 6nhancin4or Competitive 4unctiona,ity in an Success. :(4ord )nt)r+ris) so4t@ar) B,ack@),,. +acka-). Information ; Management, #%, !!!5 P4)44)r, J. !//. 0!"&!2. S)n-), P. 0!""$2. The 4ifth Mana-)7 iscipline, The Art and Practice )nt as of the $earning !rgani%ation. sy7bo,ic London <)ntury Busin)ss. action. In <u77in-s Shrivastava, P. and , L. and Schn)id)r, S. 0!"&G2. Sta@, B. :r-ani8ationa, 4ra7)s o4 06ds.2, r)4)r)nc). Hu7an R),ations, "esearch #%, %"15&$". in So,i7an, A. and Qouss)4, M. !rgani%ati 0!""&2. 3h) ro,) o4 SAP onal so4t@ar) in busin)ss Behavior. +roc)ss r)5)n-in))rin-. London International Journal of JAI. !perations ; Production Pisano, *. Management, !&, &&'5&"1. 0!""G2. S+)nd)r, J. <. 0!""'2. Makin?no@,)dkno@,)d-) th) basis o4 a ), dyna7ic th)ory o4 th) 4ir7. int)-ration Strategic Management Journal, , and th) !', G15'/. ,ocus o4 Stak), R. 0!""12. The Art of ,)arninCase Study "esearch. London An Sa-). )7+irica, Starbuck, F. 0!""/2. ana,ysis o4 L)arninby kno@,)d-) +roc)ss int)nsiv) 4ir7s. Journal of d)v),o+7 Mana-)7)nt Studi)s, /", )nt. %!#5%G$. Strategic Managem Strauss, A. and <orbin, J. ent 0!""$2. Basics o4 Journal, Lua,itativ) R)s)arch !1, &15 *round)d Theory !$$. Procedures and Scott, J. Techni6ues. London and Sa-). ?aind,, L.
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Academy of Management Journal, /G, /&"5#$1. =o,b)rda, H. 0!""'2. 3o@ard th) 4,)(ib,) 4or7 Ho@ to r)7ain vita, in hy+)rco7+)titiv) )nviron7)nts. !rgani%ation Science, %, #1"5#%G. von ?ro-h, *., IchiCo, ?. and Nonaka, I. 0/$$$2. Ena)ling <no-ledge Creation. :(4ord :(4ord >niv)rsity Pr)ss. Fa-,), D. 0!""&2. 3h) cas) 4or 6RP syst)7s. The Mc<insey 5uarterly, ", !#$5!#&. F)n-)r, 6. and Snyd)r, F. 0/$$$2. <o77uniti)s o4 +ractic) 3h) or-ani8ationa, 4ronti)r. &arvard Business "evie-, %&, !#"5!G1. Fi,son, B. 0!"&G2. Systems' Concepts, Methodologies, and Applications. <hich)st)r John Fi,)y ; Sons. Fri-ht, P. and Sn),,, S. 0!""&2. 3o@ard a uni4yin4ra7)@ork 4or )(+,orin- 4it and 4,)(ibi,ity in strat)-ic hu7an r)sourc) 7ana-)7)nt. Academy of Mana-)7)nt R)vi)@, /#, %1'5%%/. Qin, R. ?. 0!"&G2. Case Study "esearch, esign and Methods. London Sa-). Ebaracki, M. 0!""&2. 3h) rh)toric and r)a,ity o4 tota, qua,ity 7ana-)7)nt. Ad7inistrativ) Sci)nc) Luart)r,y, G#, '$/5'#'.
1 0 3 -
Chapter G<<: 5no,le" ge $anage 'ent for Enterpris e 4(ste's @+irst E'pirica l <nsights
OVERVIEW
Ro( Chan an" $ichael Rose'ann Lu))ns,and >niv)rsity o4 3)chno,o-y, Austra,ia
)vo,ution o4 )nt)r+ris) syst)7s 06S2 r)quir) a -r)at a7ount o4 kno@,)d-) and )(+)ri)nc). 67+irica, studi)s sho@ that th) 7ana-)7)nt o4 kno@,)d-) is on) o4 th) 7ain cost driv)rs o4 6nt)r+ris) Syst)7s +roC)cts. <ons)qu)nt,y, or-ani8ations hav) r)a,i8)d th) n))d to b)tt)r ,)v)ra-) th)ir kno@,)d-) 7ana-)7)nt 4or 6nt)r+ris) Syst)7s. 3his cha+t)r +ro+os)s a 4ra7)@ork 4or structurinkno@,)d-) 4or 6nt)r+ris) Syst)7s. 3his thr))5 di7)nsiona, 4ra7)@ork is d)riv)d 4ro7 7)ta5cas) studi)s and co7+r)h)nsiv) ,it)ratur) ana,ysis. It consists o4 di7)nsions 4or th) 6S ,i4) cyc,), th) ?no@,)d-) Mana-)7)nt ,i4) cyc,) and th) ty+)s o4 kno@,)d-). Pr),i7inary )7+irica, insi-hts sho@ that )s+)cia,,y th) ,ack o4 so4t kno@,)d-) is a critica, succ)ss 4actor that ,)ads to si-ni4icant consu,tin- costs in 6S +roC)cts.
THE SIGNIFICANCE OF -NOWLEDGE MANAGEMENT FOR ENTERPRISE SYSTEMS
<o+yri-ht . /$$/, Id)a *rou+ 6nt)r+ris) syst)7s 06S2B synony7s ar) )nt)r+ris) Pub,ishin-. r)sourc) +,annin- 06RP2, )nt)r+ris)5@id) syst)7s and 6nt)r+ris) )nt)r+ris) a++,ication syst)7sB syst)7s ar) can b) d)4in)d as custo7i8ab,), co7+r)h)nsiv) standard a++,ication so4t@ar) and co7+,)( a++,ications that @hich inc,ud)s int)-rat)d busin)ss so,utions 4or th) cor) 4or7 th) cor) +roc)ss)s 0).-., +roduction busin)ss o+)ratinsyst)7 +,annin- and contro,, @ar)hous) 7ana-)7)nt2 and 4or 7any th) 7ain ad7inistrativ) co7+ani)s 4unctions 0).-., accountin-, @or,d@id) and throu-hout 7ost hu7an r)sourc) 7ana-)7)nt2 o4 an )nt)r+ris) 0Ros)7ann, industri)s. 3h) !"""2. In ord)r to con4i-ur) s),)ction, i7+,)7)ntation, and us) 6S )44ici)nt,y, co7+on)nts such as us) and i7+,)7)ntation too,s continuous 0+roc)dura, 7od),s, r)4)r)nc) chan-) and
in4or7ation 7od),s, custo7i8in-uid),in)s, +roC)ct 7ana-)7)nt so4t@ar)2, @ork5 4,o@ 4unctiona,ity, too,s 4or th) d)v),o+7)nt o4 add5on 7odu,)s and syst)7 ad7inistration, and o44ic) suit)s ar) usua,,y )7b)dd)d @ith th) 6S so4t@ar).
such, it r)quir)s a -r)at a7ount o4 )(+)ri)nc) 4ro7 a @id) ran-) o4 )(+)rts such as r)+r)s)ntativ)s 4ro7 busin)ss d)+art7)nts, t)chnica, s+)cia,ists 4ro7 th) I3 d)+art7)nt and +roC)ct 7ana-)rs @ithin th) or-ani8ation u+ to )(t)rna, busin)ss and i7+,)7)ntation consu,tants.
R:n on) hand or-ani8ations @ant to r)duc) th) )n-a-)7)nt o4 cost,y consu,tants, but on th) oth)r hand hard,y any or-ani8ation has th) int)rna, kno@,)d-) and ski,,s to i7+,)7)nt an I7+,)7)ntinco7+r)h)nsiv) I3 6RP syst)7 succ)ss4u,,y a++,ications ,ik) @ithout )(t)rna, h),+. <hoosin- th) ri-ht 6nt)r+ris) consu,tants and usinth)ir Syst)7s is a ski,,s and kno@,)d-) kno@,)d-)5 int)nsiv) task. As a++ro+riat),y, as @),, as trans4)rrin-
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discuss)s +i,ot r)su,ts o4 an )7+irica, surv)y, @hich has b))n conduct)d in ord)r to and r)taininv)ri4y th) 4ra7)@ork. 3h) )ss)ntia, r)su,ts )(+,icat) @hat kno@,)d-) 7ana-)rs r)-ard as i7+ortant @ithin th) issu)s in th) ar)a o4 6nt)r+ris) or-ani8ation Syst)7s. Fhi,) 7ost )(istinb)co7)s 6S ,it)ratur) has 4ocus)d on th) )ss)ntia, to 7)thodo,o-i)s and critica, th) ov)ra,, succ)ss 4actors r)quir)d 4or th) succ)ss o4 an i7+,)7)ntation o4 6S so4t@ar) 6RP syst)7 0Ros)7ann ; <han, /$$$2, it is i7+,)7)ntati notic)d that th)y hav) not on.S0Hain)s tak)n as+)cts o4 ?no@,)d-) ; *oodhu), Mana-)7)nt into account. 3his /$$$2. cha+t)r @i,, start in th) n)(t s)ction @ith a discussion o4 th) :r-ani8ations +ossib,) int)rr),ations b)t@))n i7+,)7)ntin?no@,)d-) Mana-)7)nt and 6nt)r+ris) 6nt)r+ris) Syst)7s. 3h) 4ocus Syst)7s r)co-ni8) this @i,, b) charact)ri8)d as and 4ind that R?no@,)d-) Mana-)7)nt 4or 6nt)r+ris) Syst)7s.S A 7ana-in4ra7)@ork and its thr)) kno@,)d-) dir)ct,y d)a,s di7)nsionsBkno@,)d-) @ith th) 7ost ,i4)cyc,), 6S ,i4)cyc,), and ty+)s si-ni4icant costs o4 kno@,)d-)B@i,, b) o4 an 6S +roC)ct. +r)s)nt)d. A +r),i7inary 3hus, th)r) is )7+irica, study has b))n stron- 7otivation conduct)d in ord)r to t)st th) 4or b)tt)r structur) and co7+,)t)n)ss o4 ,)v)ra-in6S this 4ra7)@ork. 3h) initia, i7+,)7)ntation outco7)s @i,, b) )(+,ain)d 4or kno@,)d-) and a,, thr)) di7)nsions. 3h) 7akinthis cha+t)r )nds @ith a bri)4 su77ary and an out,ook. kno@,)d-) avai,ab,) to thos) invo,v)d in th) -NOWLEDGE on-oinMANAGEMENT AND 7ana-)7)nt o4 ENTERPRISE th) syst)7.
SYSTEMS
3his cha+t)r 3h) int)rr),ation b)t@))n +ro+os)s a thr))5 ?no@,)d-) Mana-)7)nt di7)nsiona, and 6nt)r+ris) Syst)7s 4ra7)@ork in has t@o 4ac)ts. ord)r to structur) th) kno@,)d-) @hich is r)quir)d 1 :n th) on) sid), to 7ana-) an i7+,)7)nt)d 6nt)r+ris) 6nt)r+ris) Syst)7s Syst)7. 3his can s)rv) as a 7ain 4ra7)@ork @as sourc) 4or ?no@,)d-) d)riv)d 4ro7 Mana-)7)nt. As co7+r)h)nsiv) 6nt)r+ris) Syst)7s ,it)ratur) r)vi)@s su++ort various ar)as and ana,ysis. 3his o4 a co7+any such as cha+t)r a,so
+rocur) 7)nt, 7anu4ac turin-, @ar)5 housin-, sa,)s, distributi on, and accounti n-, an ana,ysis o4 th) run5ti7) data 0transac tions, invo,v)d or-ani8a tiona, units2 can +rovid) th) kno@,)d -) 7ana-) r cost5 )44)ctiv) ,y @ith us)4u, data about th) curr)nt +roc)ss +)r4or7 anc). 3his +)rs+)ct iv) charact) ri8)s 6nt)r+ri s) Syst)7s as a
kno@,)d-) r)+ository and can b) d)scrib)d as REnterprise Systems for <no-ledge Management.S
2 :n th) oth)r sid), th)
7ana-)7)nt and )s+)cia,,y th) i7+,)7)ntation o4 an 6S so,ution r)quir)s a substantia, a7ount o4 s+)ci4ic kno@,)d-) and )(+)rtis). 3hus, a s)+arat) 6S5r),at)d ?no@,)d-) Mana-)7)nt can b) id)nti4i)d that cov)rs th) )ntir) 7ana-)7)nt o4 kno@,)d-) in an 6S +roC)ct. 3his +)rs+)ctiv) can b) charact)ri8)d as R<no-ledge Management for Enterprise Systems.S 3his is th) 4ocus o4 th) r)s)arch +r)s)nt)d in this cha+t)r.
3h) d)7and 4or 6S5r),at)d kno@,)d-) and su++ort r)sourc)s is hi-h and th) ,ack o4 )(+)rtis) has r)su,t)d in th) turnov)r and +oachin- o4 6S5 kno@,)d-)ab,) sta44 0*ab,), H))v)r, 6r,ank, ; Scott, !""%2. 3h) ,oss o4 )7+,oy))s @ith 6S5 s+)ci4ic kno@,)d-) o4t)n hurts an or-ani8ation in +oor,y )qui++)d +ost5i7+,)7)ntation +has)s. Fithout a +ro+)r 4ra7)@ork and a 7od), 4or 7ana-inth) kno@,)d-) throu-h a,, th) +has)s o4 th) 6S
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,i4)cyc,), 7ana-)rs 7ay not b) ab,) to succ)ss4u,,y tid) th)ir syst)7 ov)r 4or th) 4utur) 7aint)nanc) and u+-rad) +has)s o4 an 6S syst)7. 3h) cas) studi)s )s+ous)d 0Ros)7ann ; <han, /$$$2 d)scrib) this n))d 4or th) coh)sion and or-ani8ation o4 this 4,u( o4 di44)r)nt kinds o4 kno@,)d-) as o4 critica, in4,u)nc). 3h) 4ra7)@ork d)riv)d 4ro7 th)s) cas) studi)s @i,, b) )(+,ain)d in th) n)(t s)ction. +ra'e,or# for E43Relate" 5no,le"ge $anage'ent
i'ensions of This +ra'e,or#

In ord)r to structur) th) kno@,)d-) @hich is r)quir)d 4or th) 7ana-)7)nt o4 6nt)r+ris) Syst)7s, a thr))5di7)nsiona, 4ra7)@ork is +ro+os)d 0Ros)7ann ; <han, /$$$2. 3his 4ra7)@ork has b))n d)riv)d 4ro7 a co7+r)h)nsiv) ,it)ratur) ana,ysis. ?no@,)d-) r)quir)d in an 6S +roC)ct can b) c,assi4i)d a,onth)s) thr)) di7)nsions
1 3h) sta-)s o4 th) +no-ledge lifecycle id)nti4ication, cr)ation, trans4)r,

stora-), 0r)52us) and un,)arnin- o4 kno@,)d-). and chan-inth) 6S.
2 3h) +has)s o4 th) Enterprise System lifecycle s),)ctin-, i7+,)7)ntin-, usin-, 3 3h) types of +no-ledge r)quir)d 0th) kno@,)d-) cont)nt2 busin)ss, t)chnica,,
+roduct, co7+any5s+)ci4ic, +roC)ct 7ana-)7)nt, and co77unicationIcoordinationIcoo+)ration kno@,)d-). Ai-ur) ! sho@s th) d)si-n o4 this 4ra7)@ork @ith th) thr)) di7)nsions.
+igure ;: A 4ra7)@ork to structur) 6S5r),at)d kno@,)d-)
106-
3h) +ro+os)d 4ra7)@ork s)rv)s as a startin- +oint to ana,y8) and structur) r)quir)d kno@,)d-) in an 6S +roC)ct. 3h) activiti)s in th) kno@,)d-) ,i4)cyc,) shou,d b) vi)@)d as a coh)r)nt sin-,) unit. :n) activity inadv)rt)nt,y a44)cts anoth)r and th) attribut)s in )ach di7)nsion ar) a,so r),at)d to on) anoth)r. 3h)y i7+act th) 0kno@5@hat2 d)c,arativ) kno@,)d-), i.)., 7)ta5 kno@,)d-), 0kno@5ho@2 +roc)dura, kno@,)d-) and 0kno@5@hy2 usua, kno@,)d-) 0Eack, !"""a, !"""b, !"""c2 in th) or-ani8ation.
co7+r)h)nsiv) and 4ina, on). <han-)s 7ay b) 7ad) to th) i7+,)7)ntation +roc)ss @h)n it is 7id@ay throu-h th) insta,,ation +roc)ss. Ho@)v)r, any chan-)s to th) i7+,)7)ntation +,an @i,, 7)an that th) 4actors 4ro7 th) kno@,)d-) ,i4)cyc,) attribut)s hav) to b) r)vi)@)d and cat)r)d 4or. :n a conc)+tua, ,)v),, this 4ra7)@ork can b) us)d 4or th) s+)ci4ication o4 a kno@,)d-) r)+ository. 3h) thr)) di7)nsions o4 this 4ra7)@ork ar) discuss)d in 4urth)r d)tai, in th) 4o,,o@in+ara-ra+hs. Enterprise 4(ste's Life C(cle 3h) 6S ,i4)cyc,) str)ss)s th) s+)ci4ic 4ocus o4 this kno@,)d-) 4ra7)@ork. :n,y 4)@ +ub,ications discuss 6S b)yond th) cost5int)nsiv) syst)7 i7+,)7)ntation +has). 3h) 4o,,o@in- ,ist -iv)s an ov)rvi)@ about so7) 6S ,i4)cyc,) 7od),s.
1 Bancro4t
3h) 4,o@ o4 th) kno@,)d-) in this 4ra7)@ork r)quir)s ti-ht cou+,in- 4ro7 on) attribut) to anoth)r. 6ach attribut) indir)ct,yIdir)ct,y in4,u)nc)s anoth)r. 3h) thr)) di7)nsions 7ust b) )7brac)d as a ho,istic a++roach to th) )ntir) 6S 7ana-)7)nt and not b) tr)at)d s)+arat),y. 3his 4ra7)@ork is by no 7)ans a
0!""'2 +ro+os)s an 6S ,i4)cyc,) @ith a conc)ntration on th) )ar,y sta-)s that inc,ud)s 4ocus, as is, to b), constructinand t)stin- and actua, i7+,)7)ntation. 0!""%2 su--)st a ,i4)cyc,) that consists o4 consu,tin+roc)ss, s),)ctinth) 6S so4t@ar), i7+,)7)ntinth) so4t@ar) and ,)arnin- and kno@,)d-) trans4)r. 3anis 0/$$$2 di44)r)ntiat) a,onth) 6S
2 *ab,) )t a,.
3 Markus and
,i4 )c yc, ) b) t@ )) n ch art )ri n, +r oC )c t, sh ak )d o@ n an d on @a rd an d u+ @a rd.
)ntiat) in an ana,ysis on th) +)rc)iv)d or-ani8ationa , +)r4or7anc) into d)si-n, i7+,)7)ntati on, stabi,i8ation, continuous i7+rov)7)nt and trans4or7atio n.
5 As on) su--)stion
4or a conso,idation o4 so7) o4 th)s) 7od),s, Shanks )t a,. 0/$$$2 +ro+os) to distin-uish b)t@))n +,annin-, i7+,)7)ntin-, stabi,i8ation and i7+rov)7)nt. so4t@ar)5s+)ci4ic a++roach is *alueSAP 0SAP, /$$$2, a 4ra7)@ork o4 7)thodo,o-i)s, too,s, kno@,)d-), and +ro-ra7s. =a,u)SAP ai7s to incr)as) th) va,u) out o4 SAPKs 6S so,ution durinth) )ntir) ,i4) cyc,) consistin- o4 th) thr)) +has)s discov)ry and )va,uation, i7+,)7)ntation and o+)rations and continuous i7+rov)7)nt.
6 An )(a7+,) 4or a
4 R
o s s
a n d = i t a , ) 0 / $ $ $ 2 d i 4 4 ) r
A,, th)s) a++roach)s hav) an i7+,)7)ntation sta-) in co77on. 3h)y ar) si7i,ar,y ),aborat)d @ith r)-ards to +r)5 and +ost5i7+,)7)ntation sta-)s. Ho@)v)r, 7ost o4 th)7 ,ack a d)4initiv) +has) 4or th) use o4 th) syst)7. 3his is not)@orthy as it is actua,,y th) ,on-)st +has) o4 th) 6S ,i4)cyc,). 3h) us) o4 an 6nt)r+ris) Syst)7s is th) ar)a in @hich th) or-ani8ation is su++os)d to b)n)4it th) 7ost
out o4 th)ir 6S
syst)7.
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R3h) va,u) o4 an 6S ,i)s not so 7uch in th) +roduct its),4, but in its )44)ctiv) and )44ici)nt usa-)S 0?r)7)rs and van Diss),, /$$$2. 3h)r)4or), th) ,i4)cyc,) o4 an 6nt)r+ris) Syst)7 in th) 4ra7)@ork cov)rs th) s),)ction, th) i7+,)7)ntation, th) us) and th) continuous chan-) o4 this so4t@ar). 3h) selection sta-) inc,ud)s th) d)4inition o4 th) co7+anyKs r)quir)7)nts, a 4irst 7ark)t ov)rvi)@, a +r)s),)ction o4 6S so,utions, a r)qu)st 4or +ro+osa,s, d)tai,)d syst)7 )va,uation, )cono7ic )va,uation and 4ina, 6S s),)ction. 3h) implementation consists o4 th) con4i-uration o4 th) 6S so4t@ar) and th) introduction o4 corr)s+ondinor-ani8ationa, and t)chnica, chan-)s ,ik) th) d)4inition o4 n)@ r)s+onsibi,iti)s or th) d)si-n o4 n)@ int)r4ac)s 0?),,)r ; 3)u4),, !""&N ?irch7)r, /$$$2. In
r),ation to th) )ntir) ,i4) s+an o4 6nt)r+ris) Syst)7s so4t@ar), th) i7+,)7)ntation +has) is rath)r short. N)v)rth),)ss, it sti,, usua,,y consu7)s 7ost o4 th) bud-)t. In ord)r to )()cut) th) 6S +roc)ss)s th) sta44 7)7b)r n))ds a +r)cis) und)rstandin- o4 th) so4t@ar) and r),at)d busin)ss kno@,)d-). D)tai,)d in4or7ation about th) 6S con4i-uration is not n)c)ssari,y r)quir)d. In contrast to th) i7+,)7)ntation, )(+,icit kno@,)d-) is 7or) @id),y avai,ab,) durinth) us) o4 an 6S.
Aurth)r7or), th) invo,v)d kno@,)d-) o@n)rs ar) 7ost,y int)rna,. 3his kno@,)d-) in th) i7+,)7)ntation sta-) is o4t)n shar)d by sta44 7)7b)rs @ho use th) 6nt)r+ris) Syst)7. 3h) trans4)r o4 kno@,)d-) and +roC)ct5s+)ci4ic kno@,)d-) b)co7)s ,)ss i7+ortant.
3y+ica,,y, an 6nt)r+ris) Syst)7 has to b) continuous,y changed as it usua,,y r)4,)cts a 7aCor +art o4 th) or-ani8ationKs busin)ss)s. 3h)r)4or), @ith )v)ry n)@ 7ark)t, +roduct, ,ocation, )tc. introduc)d by th) or-ani8ation or )(t)rna, chan-)s ,ik) th) introduction o4 a n)@ curr)ncy 0).-., 6uro2, an 6S5 r),at)d chan-) 7ana-)7)nt r)quir)s kno@,)d-) about th) in4,u)nc) o4 th)s) chan-)s on th) 6nt)r+ris) Syst)7 and th) o++ortuniti)s o4 th) 6nt)r+ris) Syst)7 to d)+ict th)s) chan-)s. Mor)ov)r, continuous u+-rad)s o4 th) 6nt)r+ris) Syst)7 d)7and an on-oinu+-rad) +roc)ss @ith a +)r7an)nt )va,uation o4 7odi4i)d and n)@ syst)7 4unctiona,ity. 5no,le"ge Life C(cle 3h) )7+hasis o4 ?no@,)d-) Mana-)7)nt is on 7ana-inan or-ani8ationKs kno@,)d-) r)sourc)s as th) k)y to th)
or-ani8ationKs -ro@th. Fhi,) th) d)4inition o4 ?no@,)d-) Mana-)7)nt r)7ains +)rvasiv), 7uch ,it)ratur) has b))n @ritt)n in th) 4i),d o4 ?no@,)d-) Mana-)7)nt. 3his cha+t)r @i,, not cov)r th) various as+)cts o4 ?no@,)d-) Mana-)7)nt, but @i,, vi)@ it throu-h th) ,)ns o4 a kno@,)d-) ,i4)cyc,) and 4ocus on activiti)s that ar) carri)d out to )nab,) kno@,)d-) cr)ation and +roc)ss innovation.
3h) cor) o4 ?no@,)d-) Mana-)7)nt activiti)s is th) or-ani8ation o4 +roc)ss)s in @hich n)@ kno@,)d-) is
d)v),o+)d, distribut)d to thos) that n))d it 0Rkno@,)d-) @ork)rs,S Druck)r, !"&"2 and 7ad) acc)ssib,) 4or th) 4utur) us) and r)us) @ithin th) )ntir) or-ani8ation. ?no@,)d-) cr)ation and +roc)ss innovation 4ocus on th) co7+)t)nc) o4 or-ani8ations, na7),y, th) ca+acity to int)r+r)t data and assi-n it a va,u).
It is us)4u, to not) th) +roc)ss o4 un,)arnin- 0Mc*i,, ; S,ocu7, !""#2, @h)r)by th) or-ani8ation ,ays asid) its o,d kno@,)d-) by consid)rin- it as obso,)t). Druck)r 0!"&"2 su--)sts that on) o4 th) 7ost i7+ortant cha,,)n-)s 4or )v)ry or-ani8ation in th) kno@,)d-) soci)ty is to bui,d syst)7atic +ractic)s 4or s),45 trans4or7ation. 3h) or-ani8ation has to b) +r)+ar)d to a)andon kno@,)d-) that has b)co7) obso,)t) and ,)arn n)@ thin-s. >n,)arnin- can b) di44)r)ntiat)d into )(+,icit and tacit un,)arnin-. 6(+,icit un,)arnin- inc,ud)s a contro,,)d +roc)ss o4 d),)tin- )(+,icit kno@,)d-) 0,ik) us)r docu7)ntation o4 an o,d 6S v)rsion2. 3acit un,)arnin- tak)s th) 4or7 o4 R,)arnin- to
-108-
4or-)t,S i.)., disr)7)7b)r o,d t)chniqu)s and @ays o4 doin- tasks in +r)4)r)nc) o4 n)@ 7)thods. Bas)d on th) ,it)ratur) r)vi)@)d on ?no@,)d-) Mana-)7)nt 0Ros)7ann ; <han, /$$$2, th) conso,idation o4 this r)s)arch has d)riv)d a kno@,)d-) ,i4)cyc,) d)+ict)d as sho@n in Ai-ur) /. 3his kno@,)d-) ,i4)cyc,) is d)+ict)d in a si7+,i4i)d @ay, as it su--)sts a strict s)qu)nc) o4 id)nti4yin- cr)atin- trans4)rrin- storin- 0r)52usin- un,)arnin- kno@,)d-). Ho@)v)r and obvious,y, 4urth)r ,inks b)t@))n th)s) di44)r)nt tasks )(ist, @hich ar) not d)+ict)d du) to th) co7+,)(ity in th) cardina,ity o4 th) r),ationshi+s. 3h) 4o,,o@india-ra7 sho@s a basa, s)t o4 activiti)s that ar) associat)d @ith ?no@,)d-) Mana-)7)nt.
+igure 9: 3h) +ro+os)d kno@,)d-) ,i4) cyc,) T(pes of 5no,le"ge Mana-inan 6nt)r+ris) Syst)7 r)quir)s a @id) ran-) o4 kno@,)d-). In ord)r to d)v),o+ a ,ist o4 th) r)quir)d ar)as o4 kno@,)d-) 4or 6S 7ana-)7)nt, an int)nsiv) ,it)ratur) r)vi)@ @as conduct)d. 3his r)vi)@ inc,ud)d cas) studi)s and +a+)rs discussin- th) critica, succ)ss 4actors 4or th) 6S i7+,)7)ntation 0Ros)7ann ; <han, /$$$2. It a,so took into account th) i7+ortanc) o4 ski,,s as +)rc)iv)d by IS s+)cia,ists in a r)c)nt study 0Martinsons ; <h)un-, /$$!2. 3h) ar)as o4 kno@,)d-) that ar) 7)ntion)d ar) si7i,ar and th) r)+)tition o4 th) n))d 4or this kno@,)d-) 4ro7 th) cas) studi)s )7+hasi8)s th) n))d 4or kno@,)d-) to b) 7ad) )(+,icit. 3hus, it is n)c)ssary to or-ani8) th)s) ar)as o4 kno@,)d-) into a 7or) 7ana-)ab,) 4or7. Aro7 th) 7)ta5cas) studi)s o4 th) ,it)ratur) r)vi)@)d, si( di44)r)nt ty+)s o4 kno@,)d-) ar) c,)ar,y id)nti4i)d and disti,,)d 4or th) succ)ss4u, 7ana-)7)nt o4 6S so4t@ar). 3h)s) ty+)s o4 kno@,)d-) to b) tak)n in 7ind ar) busin)ss kno@,)d-), t)chnica, kno@,)d-), +roduct 7ana-)7)nt kno@,)d-), co7+any5s+)ci4ic kno@,)d-), +roC)ct kno@,)d-), and co77unication, coordination, and coo+)ration kno@,)d-).
109-
Ai-ur) # sho@s th)s) id)nti4i)d ty+)s o4 kno@,)d-) r)quir)d 4or 7ana-in- 6nt)r+ris) Syst)7s.
+igure =: Id)nti4i)d kno@,)d-) ty+)s 4or 6S 7ana-)7)nt Business +no-ledge cov)rs th) busin)ss issu)s in th) 7ana-)7)nt o4 6nt)r+ris) Syst)7s. Most o4 th) attribut)s o4 this di7)nsion shou,d b) addr)ss)d b)4or) th) actua, i7+,)7)ntation o4 6S in an or-ani8ation. Busin)ss kno@,)d-) inc,ud)s
1 4unctiona, kno@,)d-) in ar)as such as -)n)ra, ,)d-)r accountin-, +urchasin-,

sa,)s, hu7an r)sourc) 7ana-)7)nt, or strat)-ic +,annin-N
or-ani8ationa, kno@,)d-) such as busin)ss +roc)ss 7ana-)7)nt, co77unication +o,ici)s, or docu7)nt 7ana-)7)ntN
3 )ducationa, kno@,)d-)N and 4 kno@,)d-) about )nt)r+ris) cu,tur).

Technical +no-ledge r)+r)s)nts kno@,)d-) that is n)c)ssary in conCunction @ith th) s),)ction and us) o4 databas) 7ana-)7)nt so4t@ar), n)t@ork 7ana-)7)nt, add5on +ro-ra77in-, c,i)nt5s)rv)r archit)ctur)s, +)r4or7anc) 7)asur)7)nt, )tc. Product +no-ledge r)4,)cts th) n))d 4or kno@,)d-) s+)ci4ic 4or a uniqu) 6S so,ution. Most 6S so,utions ar) co7+r)h)nsiv) +acka-)s @ith a hi-h d)-r)) o4 co7+,)(ity. <ons)qu)nt,y, 6nt)r+ris) Syst)7s b)ca7) an ar)a @ith an )nor7ous i7+ortanc) o4 +roduct5s+)ci4ic kno@,)d-). 3his ar)a o4 kno@,)d-) inc,ud)s, a7on- oth)rs, th) und)rstandin- o4 th) archit)ctur) o4 th) +roduct, kno@,)d-) about its 4unctiona,ity and )(istin- constraints, th) i7+,)7)ntation 7)thodo,o-y, th) r),)as) strat)-y or kno@,)d-) about th) 6S5s+)ci4ic +ro-ra77in- ,an-ua-) 0,ik) SAPKs ABAP2. 3hus, this ar)a o4 kno@,)d-) co7bin)s 4ro7 a +roduct5individua, +oint5o45vi)@ busin)ss, t)chnica, and +roC)ct5 7ana-)7)nt kno@,)d-).
-110-
6S so4t@ar) is s),)ct)d, i7+,)7)nt)d, us)d and chan-)d in a s+)ci4ic co7+any @ith individua, charact)ristics and an individua, or-ani8ationa, +o+u,ation. 3h) kno@,)d-) ty+) company0specific +no-ledge tak)s this into account. 6S cannot b) 7ana-)d succ)ss4u,,y @ithout havin- a +r)cis) und)rstandin- o4 th)s) co7+any individua, 4actors. 3his is th) r)ason @hy th) +artici+ation o4 th) )nd us)rs is a critica, succ)ss 4actor 4or 6S i7+,)7)ntation +roC)cts and 6S n)v)r can b) co7+,)t),y outsourc)d. 3his ty+) o4 kno@,)d-) is a,so r),at)d to s+)ci4ic busin)ss and t)chnica, kno@,)d-). Pro3ect management +no-ledge cov)rs th) 7ana-)7)nt o4 hu7an r)sourc)s, ti7) and cost to acco7+,ish th) obC)ctiv)s o4 a +roC)ct. 3h) i7+,)7)ntation o4 an 6nt)r+ris) Syst)7 o4t)n r)quir)s +roC)ct 7ana-)7)nt 4or a ti7) b)t@))n ' to /G 7onths. ProC)ct 7ana-)7)nt invo,v)s +,annin-, or-ani8in- and contro,,in- a +roC)ct @ith various ti7) and cost constraints and -ath)rin- s)nior 7ana-)7)nt su++ort. It a,so s))ks to achi)v) out+uts such as 7i,)ston) d)4inition and obC)ctiv)s 0F)iss ; Fysocki, !""/2. >sua,,y di44)r)nt +roC)ct +artici+ants hav) th) 4iv) ty+)s o4 th) r)quir)d 6S kno@,)d-). <ons)qu)nt,y, communication, coordination and cooperation +no-ledge is r)quir)d in ord)r to int)-rat) th) 4iv) ty+)s o4 kno@,)d-). It is obvious that )v)n i4 th) 4iv) ty+)s o4 kno@,)d-) 0busin)ss, t)chnica,, +roduct, co7+any, +roC)ct2 ar) avai,ab,) in a +roC)ct, th) 7issin- ca+abi,ity to )44ici)nt,y int)ract b)t@))n th) invo,v)d kno@,)d-) o@n)rs 7i-ht caus) a +roC)ct 4ai,ur). >sua,,y, it tak)s a si-ni4icant a7ount o4 ti7) to d)v),o+ th) r)quir)d co77unication, coordination and coo+)ration kno@,)d-) or to -)t th) kno@,)d-) 4ro7 di44)r)nt +roC)ct 7)7b)rs. In ord)r to )va,uat) th) co7+,)t)n)ss and r),)vanc) o4 this 4ra7)@ork a +r),i7inary )7+irica, study has b))n conduct)d. 3h) d)si-n and 4irst r)su,ts o4 this surv)y @i,, b) discuss)d in th) n)(t s)ction.
EMPIRICAL RESULTS
Research Duestions an" esign
3h) +ro+os)d 4ra7)@ork @as d)riv)d 4ro7 a co7+r)h)nsiv) ,it)ratur) ana,ysis. It @as a,so 7odi4i)d and )(t)nd)d by 4))dback r)c)iv)d at con4)r)nc)s and inc,ud)s +)rsona, )(+)ri)nc)s in th) ar)a o4 7ana-in- 6nt)r+ris) Syst)7s. In ord)r to t)st this 4ra7)@ork, an )7+irica, study has b))n conduct)d. 3his study had th) 4o,,o@inobC)ctiv)s
1 =a,idation o4 )v)ry sin-,) di7)nsion o4 th) 4ra7)@ork Ar) th) attribut)s o4

)v)ry di7)nsion co7+,)t)Z Ar) th)y r)dundantZ Ar) c)rtain as+)cts not r),)vantZ )ach oth)rZ Is any di7)nsion 7issin-Z charact)ristics.
2 =a,idation o4 th) ov)ra,, 4ra7)@ork Ar) th) di7)nsions ind)+)nd)nt 4ro7 3 6va,uation o4 th) i7+ortanc) o4 th) di44)r)nt di7)nsions and th)ir
3h) d)si-n)d surv)y instru7)nt consist)d o4 )i-ht +a-)s and @as structur)d in corr)s+ond)nc) @ith th) +ro+os)d 4ra7)@ork. Standard +)rsona, data and d)7o-ra+hic in4or7ation @)r) co,,at)d. In4or7ation r)-ardinth) r)quir)d kno@,)d-) ty+)s and th) 6S ,i4)cyc,) +has)s in @hich th) 6nt)r+ris) Syst)7 is us)d @as co,,)ct)d. 3h) r)s+ond)nts @)r) ask)d to ans@)r qu)stions r),at)d to )ach di7)nsion. 3h) ,)v),s
-111TEAM FLY
+artici+antsK r)su,ts 4ro7 th) o+)n5)nd)d qu)stions has d)7onstrat)d that th) o4 i7+ortanc) +artici+ants hav) ad)quat) @)r) c,assi4i)d into 4iv) d)-r))s kno@,)d-) about th) r),at)d @ith )ach ratin- r)s)arch ar)a to ans@)r th) -iv)n a @)i-ht o4 qu)stions. It is a,so not)d that th) +i,ot study is an ! 4or )(+,oratory and d)scri+tiv) R>ni7+ortantS and 1 4or RMost on). I7+ortant.S Aina, 3h) +artici+ants ca7) qu)stions +ro7in)nt,y 4ro7 7ana-)ria, r)4)rr)d to th) acc)+tanc) o4 th) and )()cutiv) back-rounds. Aiv) +artici+ants @)r) in th) ov)ra,, +has) o4 usin- an 6nt)r+ris) 4ra7)@ork as Syst)7, thr)) hav) not @),, as th) id)nti4ication o4 s),)ct)d an 6nt)r+ris) Syst)7 y)t and th) r)7ainin- @)r) in critica, succ)ss th) +roc)ss o4 chan-in- and 4actors @ith i7+,)7)ntinth)ir 6S. 3h) r)-ards to +artici+ants @)r) ask)d in th) ?no@,)d-) Mana-)7)nt 4or initia, +art o4 th) surv)y about th) i7+ortanc) o4 )ach activity 6nt)r+ris) in th) kno@,)d-) ,i4)cyc,) in Syst)7s. 3h) surv)y @as 4irst r)-ards to 7ana-inkno@,)d-) in th)ir +i,ot)d @ith co,,)a-u)s at an or-ani8ations. 3h)y @)r) a,so ask)d to )(+r)ss th)ir o+inions Austra,ian on oth)r activiti)s that th)y 4),t univ)rsity. 3h) +artici+ants @)r) @)r) r)quir)d to 7ana-) contact)d via )5 kno@,)d-) and i4 th)y had us)d 7ai, ,ist s)rv)rs. any too,s to 7ana-) 3h) surv)y @as kno@,)d-). 3h) s)cond +art o4 avai,ab,) on th) th) surv)y r)quir)d th) Int)rn)t to 4ost)r +artici+ants to rat) th) 4ast)r r)c)i+t o4 i7+ortanc) o4 7ana-insurv)y r)su,ts as kno@,)d-) in )ach +has) o4 th) @),, as to )(t)nd 6S ,i4)cyc,). 3h)n, th) th) surv)y @id),y +artici+ants @)r) ask)d to rat) th) i7+ortanc) o4 )ach ty+) o4 across various kno@,)d-) r)quir)d 4or an 6S. or-ani8ations. :+)n qu)stions to@ards th) )nd o4 th) surv)y a,,o@)d Preli'inar( +artici+ants to )va,uat) th) Results co7+,)t)n)ss o4 th) +ro+os)d 4ra7)@ork and to id)nti4y 3h) 4o,,o@incritica, succ)ss 4actors @ith +r),i7inary r)-ards to ?no@,)d-) )7+irica, Mana-)7)nt 4or 6nt)r+ris) r)su,ts ar) Syst)7s. bas)d on th) 4))dback o4 th) 4irst !$ +artici+ants o4 th) qu)stionnair). Fhi,) th) sa7+,) si8) is s7a,,, th) qua,ity o4 th) Aro7 th) r)c)iv)d 4))dback, this cha+t)r conc)ntrat)s on th) d)v),o+7)nt o4 R,)v),s o4 i7+ortanc).S 3h) 4i-ur)s 4or )ach di7)nsion o4 th) 4ra7)@ork sho@ th) i7+ortanc) o4 )ach charact)ristic +)rc)iv)d by th) r)s+ond)nts. 3h) dia-ra7s can
b) int)r+r)t)d in 3h) r)su,ts o4 th) surv)y th) subs)qu)nt indicat) that th) +artici+ants 7ann)r M)an, 4)), that th) activiti)s r)quir)d 7a(i7u7 and 4or cr)atin- n)@ kno@,)d-) and 7ini7u7 scor)s trans4)rrin- kno@,)d-) scor) 4or th) r)su,ts ar) r),ativ),y hi-h on th) 4irst,y tabu,at)d i7+ortanc) sca,) 0s)) Ai-ur) and th)n +,ott)d G2. It is int)r)stin- to not) that on a F)b -ra+h. th) activiti)s in th) kno@,)d-) 3h) -r)at)r th) ,i4)cyc,) ar) consist)nt @ith a t)nd)ncy 4or th) 7)dian scor) o4 7or) than # ,in) to )(t)nd but 4a,, st))+,y into th) +has) 4ro7 th) inn)r o4 un,)arnin- kno@,)d-). 3h) conc)ntricity o4 +ossib,) )(+,anation 4or this th) -ra+h, th) +h)no7)non cou,d b) th) hi-h)r is th) traditiona, +ractic) and socia, i7+ortanc) o4 th) nor7 that individua,s ar) 4actor +)rc)iv)d un@i,,in- to un,)arn o,d @ays o4 by th) +)r4or7in- tasks. A,so, th)r) is r)s+ond)nts. ,itt,) r)s)arch in th) ar)a o4 un,)arnin-. It 7i-ht a,so b) 5no,le"ge Life )(+,ain)d by th) +artici+antsK ,i7it)d )(+)ri)nc)s @ith C(cle 6nt)r+ris) Syst)7s.
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+igure A: I7+ortanc) o4 activiti)s throu-hout th) kno@,)d-) ,i4) cyc,) Ho@)v)r and 7ost obvious,y is th) 4act that th) Rva,u)5addin-S activiti)s o4 cr)atinand trans4)rrin- kno@,)d-) ar) th) 7ost i7+ortant activiti)s in th) kno@,)d-) ,i4)cyc,).
R<no-ledge transfer involves t-o actions' transmission Jsending or presenting +no-ledge to a potential recipientK and a)sorption )y that individual or group 777 The goal of +no-ledge transfer is to improve an organi%ation2s a)ility to do things, and therefore increase its value? 0Dav)n+ort, !""&2. :r-ani8ations c,)ar,y +ut )7+hasis on va,u)5 addin- activiti)s such as cr)atin- n)@ kno@,)d-) and trans4)rrin- kno@,)d-), @hich ,)ads to +roc)ss innovation. Enterprise 4(ste's Life C(cle Ai-ur) 1 sho@s th) r)su,ts o4 @hat +artici+ants o4 th) surv)y )va,uat)d as th) i7+ortant +has)s durinth) 6S ,i4)cyc,). 3h)s) +has)s r)quir) s+)cia, att)ntion r)-ardinth) 7ana-)7)nt o4 kno@,)d-) as di44)r)nt ty+)s o4 kno@,)d-) ar) r)quir)d durin- di44)r)nt +has)s. 3h) +r),i7inary r)su,ts 0in corr)s+ond)nc) @ith Ai-ur) '2 indicat) that th) i7+,)7)ntation sta-) is th) by 4ar 7ost critica, +has) o4 th) ,i4)cyc,) r)-ardin?no@,)d-) Mana-)7)nt. 3h) r)asons 4or this 7i-ht b) that
1 3h) i7+,)7)ntation sta-) is usua,,y a uniqu) and n)@ )(+)ri)nc). 2 3h) r)s+onsib,) +roC)ct t)a7 usua,,y n)v)r @ork)d to-)th)r b)4or). 3 3h) i7+,)7)ntation 7i-ht b) th) on,y sta-) that th) +artici+ants )(+)ri)nc)d. 4 3h) i7+,)7)ntation is th) +has) that has th) -r)at)st i7+act on th) b)n)4its
and costs o4 th) 6nt)r+ris) Syst)7.
5 3h) i7+,)7)ntation o4 6S usua,,y r)quir)d th) invo,v)7)nt o4 )(t)rna, )(+)rts.

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+igure E: I7+ortanc) o4 kno@,)d-) 7ana-)7)nt in th) sta-)s o4 th) 6S ,i4) cyc,)
+igure I: :r-ani8ationa, +)r4or7anc) vs. i7+ortanc) o4 kno@,)d-) ?no@,)d-) is s))n as crucia, to an or-ani8ation durinth) i7+,)7)ntation +has) as it is usua,,y Rn)@S and unavai,ab,) to )7+,oy))s o4 th) or-ani8ation. :r-ani8ations a,so
r)a,i8) that th)y r),y h)avi,y on )(t)rna, kno@,)d-) 0consu,tants2. 3h)y s))k to r)tain this kno@,)d-) @ithin th)ir or-ani8ation 4or 4utur) us) and chan-) o4 th) 6S. 3h) r)su,ts o4 this study corr)s+ond @ith th) int)nsity in @hich su++ortin- too,s 4or th)
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di44)r)nt 6S ,i4)cyc,) +has)s ar) d)v),o+)d. Fhi,) th) i7+,)7)ntation is su++ort)d by various too,s, th) s),)ction, us) and )s+)cia,,y th) syst)7 chan-) su++ort is rath)r @)ak. ?r)7)rs and van Diss), 0/$$$2 r)4)r th) chan-) o4 an 6S to R7i-rationS and )(+,ains that Rmigration has a )ad reputation -ith the users of ES systems L such pro3ects are time0 consuming and e1pensiveS. 3hus, 6S v)ndors 7ay b) 7otivat)d to o44)r s7ooth)r 6S chan-) +aths and b)tt)r su++ort too,s 4or th)ir custo7)rs.
or-ani8ationa, +)r4or7anc) is ,ar-),y du) to th) chan-) in busin)ss +roc)ss)s, th) )44ort to r)a,i8) th) chan-)s, or-ani8ationa, cu,tur) and, cons)qu)nt,y, th) ,ack o4 kno@,)d-) about 6S i7+,)7)ntation issu)s. Ai-ur) ' co7+ar)s Ross and =ita,)Ks r)+r)s)ntation o4 th) or-ani8ation +)r4or7anc) a,onth) 6S ,i4)cyc,) and th) +ro+os)d 6S ,i4)cyc,). 3h) r)su,ts sho@ that th) r)s+ond)nts r)co-ni8) a s+)ci4ic n))d 4or kno@,)d-) to b) ca+tur)d durini7+,)7)ntation. 3his +h)no7)non is r)4,)ct)d in th) study o4 Ross and =ita,) as th) r)s+ond)nts +)rc)iv) a Rdiv)S in th) or-ani8ationa, +)r4or7anc). B)t@))n th) sta-)s o4 i7+,)7)ntation and stabi,i8ation, th) +)rc)iv)d i7+ortanc) 4or kno@,)d-) incr)as)s. 3his vi)@ is consist)nt in continuous i7+rov)7)nt and trans4or7ation. T(pes of 5no,le"ge
:n) o4 th) 7ost int)r)stinoutco7)s o4 this curr)nt r)s)arch @ork and 4utur) study is th) +)rc)iv)d i7+ortanc) o4 th) si( di44)r)nt ty+)s o4 kno@,)d-). 3h) +r),i7inary r)su,ts 0Ai-ur) %2 hi-h,i-ht th) i7+ortanc) o4 Ross and =ita,) Rso4tS kno@,)d-) such as 0/$$$2 )(a7in)d co77unicationIcoordinationIc in th)ir study ho@ oo+)ration kno@,)d-) and 4ir7s ar) a,so +roC)ct 7ana-)7)nt -)n)ratin- va,u) kno@,)d-). Aurth)r7or), th) 4ro7 th) cont)(t5s)nsitiv) co7+any5 i7+,)7)ntation o4 s+)ci4ic kno@,)d-) is rank)d 6S. 3h) 4indin-s hi-h,y. It is int)r)stin- to not) sho@)d that that th) +roduct5s+)ci4ic or-ani8ations kno@,)d-) 0).-., SAP ski,,s2, )(+)ri)nc) a @hich is o4t)n +)rc)iv)d as a Rdiv)S durinbott,)n)ck in 6S +roC)cts, is i7+,)7)ntation. rank)d to-)th)r @ith t)chnica, 3his Rdiv)S in ski,,s as th) ,o@)st.
1 1 5 -
+igure J: I7+ortanc) o4 di44)r)nt ty+)s o4 kno@,)d-)
SUMMARY AND OUTLOO3his cha+t)r +ro+os)d a thr))5di7)nsiona, 4ra7)@ork 4or th) 7ana-)7)nt o4 kno@,)d-) in 6nt)r+ris) Syst)7s. 3h) discussion o4 )ach di7)nsion o4 this 4ra7)@ork @as 4o,,o@)d by +r),i7inary )7+irica, r)su,ts that s))k to va,idat) th) 4ra7)@ork and a,so to d)v),o+ an a@ar)n)ss 4or th) 7or) i7+ortant attribut)s o4 th) 4ra7)@ork in r)-ards to th) n))d 4or ?no@,)d-) Mana-)7)nt. 3h) +r),i7inary r)su,ts hav) d)7onstrat)d so7) initia, insi-hts such as th) i7+ortanc) o4 va,u)5addin- activiti)s and Rso4tS kno@,)d-) ty+)s. Bas)d on 7or) co7+r)h)nsiv) 4))dback, th) r)s)arch ai7s to d)v),o+ individua, ,)v),s o4 i7+ortanc) 4or )ach o4 th) 4our +has)s o4 th) 6nt)r+ris) Syst)7s ,i4)cyc,). 3h) assu7+tion is that th)s) r)su,ts @i,, sho@ ho@ th) +)rc)iv)d i7+ortanc) o4 di44)r)nt ?no@,)d-) Mana-)7)nt activiti)s and kno@,)d-) ty+)s chan-)s a,onth) 6S ,i4)cyc,). 3h) )v)ntua, obC)ctiv) @i,, b) to synth)si8) 7or) d)tai,)d r)su,ts s+)ci4ic to )ach di7)nsion and to 4ina,,y int)-rat) a,, thr)) di7)nsions o4 th) 4ra7)@ork.
REFERENCES
Bancro4t, N. H. 0!""'2. Implementing "@A7 &o- to Introduce a $arge System Into a $arge !rgani%ation. 6n-,)@ood <,i44s, NJ Pr)ntic) Ha,,. Dav)n+ort, 3. D. 0!""&2. .or+ing <no-ledge. Boston, MA Harvard Busin)ss Schoo, Pr)ss. Druck)r, A. P. 0!"&"2. The #e- "ealities. N)@ Qork Har+)r and Ro@.
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*ab,), *. *. 0!"&&2. Lar-) +acka-)d so4t@ar) A n)-,)ct)d t)chno,o-y . Journal of (lo)al Informatio n Managem ent, '0#2, #5G. *ab,), *. *., H))v)r, R. v. d., 6r,ank, S. and Scott, J. 0!""%2. Lar-) +acka-)d so4t@ar) th) n))d 4or r)s)arch. Proceedings of the Ard Pacific Asia Conference on Information Systems, Brisban). Hain)s, M. N. and *oodhu), D. L. 0/$$$2. 6RP i7+,)7)ntation s 3h) ro,) o4 i7+,)7)ntation +artn)rs and kno@,)d-) trans4)r. Proceedings of the BBth International Conference of the Information "esource Management Association7 ?),,)r, *. and 3)u4), 3. 0!""&2. SAP "@A Process !riented Implementation. R)adin-, MA Addison5F)s,)y Lon-7an. ?irch7)r, M. 0/$$$2. SAP. 0/$$$2. =a,u)SAP. Fhit) Business
Process !riented Implementation of Standard Soft-are' &o- To Achieve Competitive Advantage Efficiently and Effectively 0third )dition2. B)r,in S+rin-)r5=)r,a-. ?r)7)rs, M. and van Diss),, H. 0/$$$2. 6RP syst)7 7i-rations. Communications of the ACM, G#0G2, 1#51'. L)onard5Barton, D. 0!""&2. .ellsprings of <no-ledge. Havard Busin)ss Schoo, Pr)ss. Markus, L. and 3anis, <. 0/$$$2. 3h) )nt)r+ris) syst)7s )(+)ri)nc)BAro7 ado+tion to succ)ss. In E7ud, R. F. 06d.2, 4raming the omains of IT "esearch' (limpsing the 4uture Through the Past. <incinnati, :H Pinna4,)( 6ducationa, R)sourc)s. Martinsons, M. *. and <h)un-, <. 0/$$!2. 3h) i7+act o4 )7)r-in- +ractic)s on IS s+)cia,ists +)rc)+tions, attitud)s and ro,) chan-)s in Hon- ?on-. Information ; Management, #&, !'%5!&#. Mc*i,,, M. and S,ocu7, J. 0!""#2. >n,)arnin- th) or-ani8ation. !rgani%ational ynamics, '%5%& Ros)7ann, M. 0!"""2. 6RP5 so4t@ar)B<haract)ristics and cons)qu)nc)s. Proceedings of the Dth European Conference on Information Systems, #, !$#&5!$G#. J. Pri)s5H)C) )t a,. 06ds.2, <o+)nha-)n, D)n7ark. Ros)7ann, M. and <han, R. 0/$$$2. Structurin- and 7od),inkno@,)d-) in th) cont)(t o4 )nt)r+ris) r)sourc) +,annin-. Proceedings of the Hth Pacific Asia Conference on Information Systems, Hon?on-, Pub,ishin- 3)chno,o-y <)nt)r, 3h) Hon- ?on>niv)rsity o4 Sci)nc) and 3)chno,o-y. Ross J. F. and =ita,), M. 0/$$$2. 3h) 6RP r)vo,ution Survivin- vs. thrivin-. Information Systems 4rontiers, /0/2, /##5/G!.
Pa+)r. Fa,,dor4. Shanks, *., Parr, A., Hu, B., <orbitt, B., 3hanasankit, 3. and S)ddon, P. 0/$$$2. Di44)r)nc)s in critica, succ)ss 4actors in 6RP syst)7s i7+,)7)ntation in Austra,ia and <hina A cu,tura, ana,ysis. Proceedings of the 8th European Conference on Information
Systems, R. Hans)n 06d.2, =i)nna, Austria. F)iss, F. J., ; Fysocki, R. ?. 0!""/2. Aiv)5Phas) ProC)ct Mana-)7)nt A Practica, P,annin- ; I7+,)7)ntation *uid). R)adin-, MA Addison5 F)s,)y. Eack, H. M. 0!"""a2. D)v),o+in- a kno@,)d-) strat)-y. California Management "evie-, G!0#2, !/15!G1.
Eack, H. M. 0!"""b2. Mana-incodi4i)d kno@,)d-). Sloan Management "evie-, S+rin-. Eack, H. M. 0!"""c2. Mana-inor-ani8ationa, i-noranc). <no-ledge irections, !0!2.
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Chapter G<<<: <'ple'e ntation $anage 'ent of an E3 Co''er ce3 Enable" Enterpri se INTRODUCTION <nfor'at 3h) int)-ration o4 )nt)r+ris) syst)7s and th) su++,y chain ion to an or-ani8ation is 4(ste': b)co7in- 7or) critica, in an )v)r5chan-in-, -,oba,,y & Case co7+)titiv) )nviron7)nt. As 7ark)ts 7atur) and custo7)r 4tu"( at +r)4)r)nc)s b)co7) 7or) div)rs) and s+)ci4ic, quick Te0as r)s+ons) to thos) n))ds is to 7aintain <nstru' r)quir)d co7+)titiv) advanta-). 3his quick r)s+ons) @i,, r)quir) ents c,os) r),ationshi+s, )s+)cia,,y
OVERVIEW
@ith a 4ocus on ,inkin- its 6RP syst)7 in a -,oba, )5co77)rc) s)ttin-. 3his ,inka-) is )s+)cia,,y i7+ortant sinc) it had b))n stat)d in 3IKs strat)-ic +,an as an obC)ctiv) o4 this +roC)ct to +rovid) visibi,ity o4 th) 6RP syst)7 to )(t)rna, constitu)nts via F)b ,inka-)s a,on- @ith th) obC)ctiv) o4 standardi8in- int)rna, +roc)ss)s and i7+ortant in4or7ation t)chno,o-y syst)7s to su++ort 7ark)t n))ds. 3hus, its 6RP syst)7 is c)ntra, to 7ana-in- its su++,y chain and B/B )5co77)rc) ,inka-)s 4ro7 both a custo7)r and su++,i)r +)rs+)ctiv). Issu)s 4ac)d by 3I ar) c,)ar,y out,in)d @ith 4utur) qu)stions a,so +os)d in th) 4ina, s)ction.
co77unications and in4or7ation sharin- a7onint)-rat)d int)rna, 4unctiona, -rou+s, as @),, as th) R% P% 4un"arra7 su++,i)rs and custo7)rs o4 an an" Joseph or-ani8ation. 3)(as 4ar#is Instru7)nts 03I2, <,ark >niv)rsity, h)adquart)r)d in Da,,as, >SA 3)(as, is on) or-ani8ation that has co7) to r)a,i8) this <o+yri-ht . /$$/, Id)a *rou+ r)quir)7)nt 4or bui,din- and 7aintainin- its co7+)titiv) Pub,ishin-. )d-). :n) strat)-ic d)cision 3his cha+t)r +r)s)nts a cas) 7ad) by th) or-ani8ation @as to i7+,)7)nt an )nt)r+ris) study o4 an ov)rvi)@ o4 th) r)sourc) +,annin- 06RP2 syst)7 @ith a 4ocus on ,inkin)44orts o4 3)(as it @ith a -,oba, ),)ctronic Instru7)ntKs 03IKs2 int)rna, and co77)rc) 0)5co77)rc)2 s)ttin-. )(t)rna, 6RP i7+,)7)ntation,
3his cas) study +rovid)s an ov)rvi)@ o4 th) )44orts o4 3IKs int)rna, and )(t)rna, 6RP i7+,)7)ntation that ,)d to ov)r %$U o4 th) transactions b)in- conduct)d in a -,oba, )5 co77)rc) s)ttin-. 3IKs strat)-ic -oa,s inc,ud) +rovidinvisibi,ity o4 th) 6RP syst)7 to )(t)rna, constitu)nts via F)b ,inka-)s and standardi8inint)rna, +roc)ss)s and
in4or7ation t)chno,o-y to su++ort 7ark)t n))d. 3h) )5 co77)rc) ,inka-) is )s+)cia,,y i7+ortant in achi)vin- th)s) -oa,s. 3hus, 3IKs 6RP syst)7 is c)ntra, to 7ana-in- its su++,y chain and F)b )5 co77)rc) ,inka-)s 4ro7 both a custo7)r and su++,i)r +)rs+)ctiv).
In this situation th)r) @)r) a nu7b)r o4 7aCor +,ay)rs, inc,udin- +roC)ct 7ana-)7)nt dir)ction 4ro7 And)rs)n <onsu,tin- S)rvic)s, so4t@ar) v)ndors such as SAP and i/ 3)chno,o-i)s, hard@ar) v)ndors such as Sun Microsyst)7s, and various su++,i)rs and custo7)rs o4 3I. Part o4 th) +roc)ss invo,v)d outsourcin- so7) o4 3IKs int)rna, in4or7ation syst)7s ca+abi,iti)s to th)s) v)ndors, )s+)cia,,y And)rs)n <onsu,tin-.
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studyin- individua, I3 to or-ani8ationa, and int)ror-ani8ationa, syst)7s. 3h) various Sinc) an 6RP syst)7 has sta-)s o4 i7+,)7)ntation ,on-5t)r7 and broad 4ro7 ado+tion to or-ani8ationa, i7+,ications, +r)+aration and strat)-ic +,annin- is k)y to th) succ)ss4u, 7ana-)7)nt o+)ration ar) o4 such syst)7s. 3h)r) is an d)tai,)d as s)+arat) s)ctions. )(t)nsiv) body o4 ,it)ratur) At )ach sta-) o4 r),at)d to strat)-ic +,annin-. <ritica, ant)c)d)nts to th) i7+,)7)ntation 3Id)v),o+in- a succ)ss4u, us)d +)r4or7anc) strat)-ic +,an ar) 0L)d)r)r ; Sa,7),a, !""'N L)d)r)r ; 7)trics to S)thi, !""/2 7ana-) th) +roc)ss. F) a,so +rovid) an 1. )(t)rna, and int)rna, ov)rvi)@ o4 ho@ )nviron7)nts, th)s) 2. +,anninr)sourc)s +)r4or7anc) 7)trics +,ay)d a and +roc)ss)s, and ro,) in th) 3. an in4or7ation +,an i7+,)7)ntation. that actua,,y -)ts i7+,)7)nt)d.
STRATEGIC 3h)s) constructs +rovid) a th)ory o4 strat)-ic SYSTEMS in4or7ation syst)7s IMPLEMENT +,annin- and ar) i7+ortant to both r)s)arch)rs and ATION +ractition)rs invo,v)d @ith *AC-GROU +,annin-. ND
Much r)s)arch has b))n und)rtak)n to d)v),o+ a b)tt)r und)rstandino4 I3 i7+,)7)ntation and to ass)ss its contribution to i7+rovinor-ani8ationa, )44ici)ncy. A 7)ta5ana,ysis o4 I3 i7+,)7)ntation r)s)arch 0Lai ; Maha+atra, !""%2 indicat)s that th)r) is shi4t in )7+hasis 4ro7 By borro@in- 4ro7 th) ,it)ratur) on th) 7ana-)7)nt o4 advanc)d 7anu4acturin- t)chno,o-i)s 0M)r)dith, !"&%N Sarkis ; Lin, !""GN S7a,, ; Qasin, !""%2, a +roc)ss5ori)nt)d 4ra7)@ork 4or 6RP 7ana-)7)nt is +r)s)nt)d 0s)) Ai-ur) !2. As indicat)d in th) 4i-ur), th) +roc)ss su--)st)d by this 4ra7)@ork is it)rativ), in th) s)ns) that it a,,o@s 4or hi-h)r5,)v), strat)-i)s and +roc)ss)s to b) r)4or7u,at)d @h)n th)y ar) discov)r)d to b) inco7+atib,) @ith ,o@)r5 ,)v), syst)7s and con4i-urations and vic) v)rsa.
1 1 9 -
+igure ;: 3i7) ,in) o4 3IKs 6RP i7+,)7)ntation 4trateg( +or'ulation an" <ntegration Strat)-ic Custi4ication 4ra7)@orks shou,d b)-in at th) u++)r ,)v),s o4 7ana-)7)nt. 3h) t)chno,o-y s),)ct)d shou,d 4it @ithin th) vision, -oa,s and strat)-ic obC)ctiv)s o4 th)
or-ani8ation. An or-ani8ation shou,d und)r-o a SF:3M:SP +roc)ss in @hich it ass)ss)s its str)n-ths and @)akn)ss)s in th) ,i-ht o4 )nviron7)nta, o++ortuniti)s and thr)ats, th)n d)v),o+s its 7issions, obC)ctiv)s, strat)-i)s and +o,ici)s. :n) o4 th) r)su,ts o4 this st)+ in th) +roc)ss is d)t)r7ination o4 an or-ani8ationKs cor) co7+)t)nci)s that n))d s+)ci4ic t)chno,o-y su++ort. Process Planning an" 4(ste's esign
At th) n)(t ,)v), is th) initiation o4 +roc)ss +,ans that su++ort th) or-ani8ationa, co7+)t)nci)s id)nti4i)d )ar,i)r and that in turn -)t su++ort)d by th) chos)n syst)7 06RP or oth)r@is)2. A,so kno@n as th) r))n-in))rin- +has), thr)) studi)s ar) usua,,y und)rtak)n at this sta-), and th)y ar) na7)d as5is, shou,d5b) and to5b).
3h) AS5IS study +rovid)s bas),in) 7)asur)s 4or ,at)r Custi4ication +ur+os)s and +rovid)s 7)asur)s 4or +ost5i7+,)7)ntation auditin-. 3h) shou,d5b) study tri)s to )(hibit ho@ th) curr)nt syst)7 shou,d 4unction a4t)r nonauto7ationInon5hard t)chno,o-y i7+rov)7)nts 0).-., tota, qua,ity 7ana-)7)nt2 ar) institut)dN a curr)nt,y disord)r)d syst)7 @i,, ,)ad to a disord)r)d 6RP syst)7 as @),,. 3h) to b) study is us)d to d)4in) th) syst)7 n)c)ssary to 7))t th) obC)ctiv)s s)t 4orth by th) strat)-ic units.
4(ste' E!aluation an" Justification

H)r), ana,ysis 4ocus)s on th) )cono7ic, t)chnica,, and o+)rationa, 4)asibi,ity and Custi4ication o4 th) syst)7. 3h) Custi4ication st)+ shou,d consid)r 7any di44)r)nt ty+)s o4 4actorsBtan-ib,), intan-ib,), 4inancia,, quantitativ), and qua,itativ). Sinc) th) ana,ysis o4
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tan-ib,) 4actors 0).-., 4inancia,2 is @),,5studi)d usin- 7)thods such as r)turn on inv)st7)nt 0R:I2, our 4ocus @i,, b) on th) )va,uation o4 intan-ib,) 4actors. 4(ste' Configuration An 6RP syst)7 has so7) o4 th) charact)ristics o4 +acka-)d so4t@ar), such as Microso4t 6(c),, and so7) o4 thos) o4 custo75bui,t on)s. It c)rtain,y is not d)si-n)d and +ro-ra77)d 4or th) )(c,usiv) us) o4 on) or-ani8ation nor is its i7+,)7)ntation and 7ana-)7)nt as )asy as that o4 +acka-)d so4t@ar). 6ach 6RP so4t@ar) co7+any is ,ik),y to hav) its o@n busin)ss 7od), in th) d)si-n o4 its +acka-). As a +acka-)d so4t@ar) syst)7, th)r) ar) ,ik),y to b) discr)+anci)s 0at th) d)tai,)d ,)v),2 b)t@))n th) n))ds o4 an or-ani8ation and th) 4)atur)s o4 th) so4t@ar) 0Lucas, Fa,ton, ; *in8bur-, !"&&2. H)nc), a si-ni4icant a7ount o4 )44ort can b) )(+)ct)d to con4i-ur) th) syst)7 or th) or-ani8ationa, +roc)ss)s in ord)r to +roduc) an a,i-n7)nt b)t@))n th)7. 4(ste' <'ple'entation 3h) i7+,)7)ntation sta-) can b) c,assi4i)d into start5u+, +roC)ct 7ana-)7)nt and a 7i-ration hand,inth) s@itchov)r 4ro7 th) o,d to th) n)@ syst)7. 6RP syst)7s 4orc) ,ar-)5sca,) ov)rhau, o4 busin)ss +roc)ss)s and, th)r)4or), th)ir i7+,)7)ntation n))ds to b) su++ort)d by a++ro+riat) chan-) 7ana-)7)nt a++roach)s 0Markus ; B)nCa7in, !""'2. Anoth)r k)y conc)rn o4 i7+,)7)ntation is that o4 syst)7s int)-ration, in @hich 7u,ti+,) ty+)s o4 subsyst)7s, +,at4or7s and int)r4ac)s 7ust b) int)-rat)d ov)r div)rs) and dis+)rs)d -)o-ra+hic ,ocations. Syst)7s i7+,)7)ntation invo,v)s
1 Acquisition and Procur)7)ntBActua, +urchas) o4 so4t@ar), hard@ar) and

su++ortin- )qui+7)nt, and +)rsonn),.
2 :+)rationa, P,annin-B3h) +roC)ct +,an n)c)ssary to brin- u+ th) syst)7. 3 I7+,)7)ntation and Insta,,ationB3his is th) actua, i7+,)7)ntation and startu+
st)+.
4 Int)-rationBLinkin- th) syst)7s to )ach oth)r and oth)r or-ani8ationa,

syst)7s. Post3<'ple'entation &u"it 3his ,ast R4))dbackS sta-), a,thou-h v)ry i7+ortant 4ro7 a continuous i7+rov)7)nt +)rs+)ctiv), is on) o4 th) 7or) n)-,)ct)d st)+s. Accordin- to *u,,iv)r 0!"&%2, 4or )(a7+,), auditin- shou,d
1 )ncoura-) r)a,istic +r)+aration o4 inv)st7)nt +ro+osa,sN 2 h),+ i7+rov) th) )va,uation o4 4utur) +roC)cts as @),, as th) +)r4or7anc) o4
curr)nt +roC)cts that ar) not +roc))din- as +,ann)dN and
3 ca,, att)ntion to +roC)cts that shou,d b) discontinu)d.

As can b) s))n, th) +roc)ss su--)st)d abov) can b) arduous, but this n)c)ssary )44ort 7ust b) antici+at)d 4or th) succ)ss4u, int)-ration o4 co7+,)( and strat)-ic syst)7s into an or-ani8ation.
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t)chno,o-i)s, @h)r) 3I is th) @or,d ,)ad)r. DSP and ana,od)vic)s hav) 7or) than #$,$$$ custo7)rs in co77)rcia,, IMPLEMENT industria, and consu7)r ING A 7ark)ts. 3I 4ac)s int)ns) t)chno,o-ica, and +ricinGLO*AL co7+)tition in th) 7ark)ts in ERP @hich it o+)rat)s. 3IKs SYSTEM AT )(+)ctations ar) that th) ,)v), o4 this co7+)tition @i,, incr)as) TI in th) 4utur) 4ro7 ,ar-), )stab,ish)d s)7iconductor and Co'pan( r),at)d +roduct co7+ani)s, as /ac#groun" @),, as 4ro7 )7)r-inco7+ani)s s)rvin- nich) 3)(as 7ark)ts. Prior to th) Instru7)nts Incor+orat)d 03I2 i7+,)7)ntation o4 6RP, 3I had a co7+,)( suit) o4 stand5a,on) is a -,oba, nonint)-rat)d 7ark)tin-, sa,)s, s)7iconductor co7+any and th) ,o-istics and +,anninsyst)7s consistin- o4 thousands o4 @or,dKs ,)adin+ro-ra7s that @)r) bas)d on d)si-n)r and su++,i)r o4 di-ita, 7any ind)+)nd)nt databas)s si-na, +roc)ssin- and runninon +ro+ri)tary 0DSP2 so,utions 7ain4ra7) syst)7s. and ana,oO!er!ie, t)chno,o-i)s 0s)7iconductors r)+r)s)nt &GU o4 Sinc) th) !"&$s, 3I had us)d a hi-h,y c)ntra,i8)d in4rastructur) 3IKs r)v)nu) uti,i8in- +ro+ri)tary 7ain4ra7) bas)2. H)adquart)r)d in co7+ut)rs 4or 7))tin- its I3 Da,,as, 3)(as, th) r)quir)7)nt. As th) 4irst st)+ to@ard -,oba, busin)ss co7+anyKs busin)ss)s a,so +roc)ss)s, c)rtain +,annininc,ud) 7at)ria,s +roc)ss)s and syst)7s @)r) standardi8)d in !"&". Ho@)v)r, and contro,s, )ducationa, and th) syst)7s @)r) ind)+)nd)nt o4 on) anoth)r and @)r), +roductivity th)r)4or), inad)quat) to 7))t so,utions, and di-ita, i7a-in-. chan-in- custo7)r d)7ands. 3h) co7+any has Mark)t conditions dictat)d that 7anu4acturin- or 3I 7ust o+)rat) as a -,oba, sa,)s o+)rations DSP busin)ss, @ith -r)at)r in 7or) than /1 4,)(ibi,ity, short)r ,)ad ti7)s countri)s and, in and incr)as)d +roductivity to !""", d)riv)d in 7))t custo7)r d)7and. 3h) )(c)ss o4 '%U o4 co7+any d)t)r7in)d th) n))d its r)v)nu)s 4ro7 4or dra7atic chan-)s in its sa,)s to ,ocations t)chno,o-ica, in4rastructur) and its )nd5to5)nd busin)ss outsid) th) >nit)d Stat)s. In +roc)ss)s, in ord)r to achi)v) th)s) busin)ss -oa,s. Startinth) +ast 4)@ y)ars, 3I has so,d in !""', 3I und)r@)nt a s)v)ra, non5cor) co7+any5@id) r))n-in))rin)44ort that ,)d to th) busin)ss)s to i7+,)7)ntation o4 a G5y)ar, 4ocus on DSP T/1$ 7i,,ion 6RP syst)7 usinso,utions and Sun Microsyst)7sK hard@ar) ana,o-
+,at4or7, SAP A*Ks 6RP so4t@ar), i/Ks advanc)d +,annin- too,s and And)rs)n <onsu,tin-Ks i7+,)7)ntation +roc)ss 0s)) Ai-ur) ! 4or a su77ari8)d ti7) ,in)2.
+,at4or7. 3his @as th) 4irst st)+ to@ard 7i-ratin- th) 7anu4acturin- and +,annin- o4 3IKs ord)rs. In )ar,y !""", 3I b)-an ro,,in- out th) s)cond r),)as). 3h) initia, d)+,oy7)nt inc,ud)d th) SAP +rocur)7)nt and 7at)ria,s 7ana-)7)nt 7odu,) and th) 4inancia, 7ana-)7)nt and R)+ortin7odu,). In th) 7idd,) o4 !""", 3I co7+,)t)d th) i/ 3)chno,o-i)s so4t@ar) In !""&, 3)(as i7+,)7)ntation as +art o4 th) Instru7)nts third r),)as). Aina,,y, 3I turn)d i7+,)7)nt)d th) on th) r)7ainin- 4inancia,s 4irst r),)as) o4 and n)@ 4i),d sa,)s, sa,)s and th) 6RP syst)7, distribution 7odu,)s. Inc,ud)d @hich +ri7ari,y in this r),)as) @)r) th) 4irst consist)d o4 a F)b c,i)nts to b) us)d @ith +rototy+) SAP and a n)(t5-)n)ration, i7+,)7)ntation distributor5r)s),,)r o4 th) i/ syst)7 7ana-)7)nt syst)7, both runninon a Sun d)v),o+)d in conCunction @ith 6!$$$$ SAP.
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A hi-h5,)v), archit)ctur) o4 3IKs +ion))rin- 6RP i7+,)7)ntation consists o4 SAP and th) i/ syst)7 4or advanc)d +,annin- and o+ti7i8ation 0s)) Ai-ur) /2. 3h) syst)7 is a +ion))rin-, ,ar-)5sca,), -,oba, sin-,)5instanc) i7+,)7)ntation o4 s)v)n 7odu,)s 04inanc), +rocur)7)nt and 7at)ria,s 7ana-)7)nt, ,o-istics, +,annin-, 4i),d sa,)s, and 7ark)tin-2 4or a,, o4 3IKs divisions, and it is in us) by !$,$$$ 3I )7+,oy))s to hand,) G1,$$$ s)7iconductor d)vic)s and !/$,$$$ ord)rs +)r 7onth. As sho@n in th) 4i-ur), this so,ution a,so )nab,)d -,oba, F)b acc)ss to in4or7ation 4or 3IKs #,$$$ )(t)rna, us)rs at custo7)rs,K distributors,K and su++,i)rsK sit)s. In tota,, ov)r %$U o4 th) busin)ss transactions conduct)d @ith 3I by a,, custo7)rs and +artn)rs ar) no@ via th) F)b or ),)ctronic data int)rchan-) 06DI2. In su77ary, th) i7+,)7)ntation
1 institut)s standardi8)d +roc)ss to su++ort th) 7ark)t tr)nd o4 ord)r5

any@h)r)Ishi+5any@h)r) s)rvic)sN
2 +rovid)s -,oba, visibi,ity o4 th) syst)7 to custo7)rs and su++,i)rs, +)r7ittinth)7 to conduct 7any activiti)s via th) F)bN and -oa,s.
3 standardi8)s k)y in4or7ation t)chno,o-y syst)7s so as to su++ort busin)ss
+igure 9: A conc)+tua, 7od), o4 th) 6RP syst)7 and ,inka-)s 3h) n)(t t@o s)ctions d)scrib) so7) o4 th) activiti)s invo,v)d in th) substa-)s o4 this ,ar-)5sca,) i7+,)7)ntation.
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TATION S T A G E S I N M A N A G I N G T H E G L O * A L E R P S Y S T E M I M P L E M E N
F) no@ d)scrib) 3IKs activiti)s in )ach o4 th) sta-)s o4 th) strat)-ic 4ra7)@ork that @as -)n)ra,,y d)scrib)d )ar,i)r in this cas). 4trateg( +or'ulation 3raditiona,,y, 3I @as +ri7ari,y runnin- @hat @as ca,,)d a Rco77odityS busin)ss, @h)r)in ord)rs @)r) r)c)iv)d, 7anu4actur)d and shi++)d as a batch. 3hrou-hout th) !"&$s and K"$s 7ark)ts )vo,v)d 4ro7 th) on)5si8)54its5a,, status to on) in @hich custo7)rs start)d d)7andincusto7i8)d +roducts. 3his 7ass custo7i8ation +h)no7)non, co7bin)d @ith th) 7aturity o4 3IKs busin)ss, caus)d it to r))(a7in) its -oa,s and strat)-i)s. 3I start)d its shi4t to@ards a 7or) custo7i8)d +roduct )nviron7)nt. Fithin this n)@ custo7i8)d +roduct )nviron7)nt, 3I had a nu7b)r o4 custo7)r n))ds that cou,d not b) 7)t )asi,y. Aor )(a7+,), a custo7)r in 3ai@an @ant)d to +,ac) a,, ord)rs in <a,i4ornia and th)n a,,ocat) a @or,d@id) d)stination 4or th) ord)r)d +roducts on,y at th) ti7) o4 shi++in-. 3his @as di44icu,t 4or 3I to coordinat) b)caus) )ach o4 th) r)-ions @as on a s)+arat) syst)7. :th)r custo7)rs @ant)d to +,ac) ord)rs 4or co7+,)t) s)ts o4 d)vic)s that a,, @ork)d to-)th)r. Sinc) its )(istinsyst)7 cou,d not hand,) such ord)rs, 3I had to )nt)r th) ord)r 4or )ach d)vic) s)+arat),y. 3h) d),iv)ry o4 )ach o4 th) d)vic)s @as don) at di44)r)nt ti7)s, i7+,yinthat th) custo7)r @i,, hav) to carry inv)ntory @hi,) @aitin4or th) r)7aind)r o4 th) s)t. Manua, @orkarounds and int)rv)ntions @)r) n))d)d to
hand,) th)s) kinds o4 d)7ands. 3hus, th) -oa, @as to d)t)r7in) th) a++ro+riat) +roc)ss)s and in4or7ation syst)7s that had to b) +ut in +,ac) in ord)r to su++ort such a-i,) d)si-n and 7anu4acturinstrat)-i)s 0s)), 4or )(a7+,), P)t)rs ; Saidin, /$$$, @ho d)scrib) th) us) o4 I3 4or su++ortin- 7ass custo7i8ation2.
anoth)r int)-rativ) cor+orat) -oa,. 3IKs strat)-y @as to )nsur) standardi8ation o4 its syst)7s as 7uch as +ossib,). S+)ci4ic ar)as such as 4actory auto7ation @)r) ,)4t to us) custo7 so,utions, but oth)r ar)as such as +,annin- @)r) r)quir)d to b) on standardi8)d o+)n syst)7s in ord)r to su++ort th) oth)r -oa,s.
3I 7ak)s )(t)nsiv) us) o4 7)trics. Strat)-ic -oa,s ar) trans,at)d into tactica, and o+)rationa, quanti4iab,) obC)ctiv)s. ?)y 7)trics ar) d)v),o+)d and us)d as a 4act5 bas)d 7ana-)7)nt a++roach that k))+ c,arity in th) +roC)ct dir)ction and 7ana-) th) sco+) o4 th) +roC)ct. 3h) 7)trics inc,ud) standard Anoth)r -oa, @as o+)rationa,,y and or-ani8ationa,,y strat)-ic on)s, a 7ov) to@ard su++,i)r57ana-)d such as ti7), cost, 4,)(ibi,ity and qua,ity. In addition, sinc) inv)ntory and 3IKs 7anu4acturin- )qui+7)nt custo7)r5 7ana-)d ord)rs. is v)ry )(+)nsiv), its *oin- b)yond 6DI 7ana-)7)nt 7ad) it c,)ar that and )(t)ndin- )5 it @as a,so conc)rn)d @ith ,)v), co77)rc) 7)ant o4 us)Buti,i8ationBo4 th) or-ani8ationa, )qui+7)nt. that 3I d)cid)d that ,)v)ra-inth) ca+abi,iti)s o4 Process Planning an" th) Int)rn)t to 4(ste's esign +rovid) visibi,ity o4 its syst)7s to 3I conduct)d a 7assiv) its custo7)rs and r))n-in))rin- )44ort 4or th) su++,i)rs @ou,d @ho,) or-ani8ation @ith th) -oa, b) n)c)ssary. o4 s)ttin- standard +roc)ss)s Aina,,y, -,oba,,y. 3h) 7aCor r)su,t o4 this standardi8in)44ort @as to d)c,ar) that syst)7s @as
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a,, inv)ntory and 7anu4acturin7ana-)7)nt b) don) -,oba,,y. 3his +roc)ss chan-) caus)d th) +ractic) o4 )ar7arkin- a +roduction ,ot 4or s+)ci4ic custo7)rs to b) discontinu)d. 3h)r) @)r) thousands o4 +ro-ra7s in us) at that ti7), and this +ro,i4)ration o4 stand5a,on) syst)7s inhibit)d th) i7+,)7)ntation o4 -,oba, +roc)ss)s. 3hus, a +ro+osa, to i7+,)7)nt an 6RP syst)7 @as 7ad) to th) +r)sid)nt and oth)r strat)-ic busin)ss unit 7ana-)rs.
Many or-ani8ations 4ind 7u,ti+,)5instanc) i7+,)7)ntations 7or) 4,)(ib,) and so7)ti7)s )asi)r to i7+,)7)nt. Q)t 3I d)cid)d to i7+,)7)nt a sin-,)5instanc) 6RP syst)7 so as to 4u,,y ,)v)ra-) th) syst)7Ks ca+abi,iti)s to su++ort th) 4,)(ibi,ity and standardi8ation d)7and)d by -,oba, +roc)ss)s. A4t)r sit) visits by
7aCor 6RP v)ndors, 3I s),)ct)d SAP, 7ost,y b)caus) o4 its sca,abi,ity to hand,) vo,u7inous a7ounts o4 data. Q)t, th) actua, s),)ction and Custi4ication inc,ud)d th) )va,uation o4 a nu7b)r o4 syst)7s by 3I. 3h)s) syst)7s @)r) )va,uat)d throu-h a qu)stionnair) that contain)d hundr)ds o4 d)tai,)d qu)stions +)rtainin- to ca+abi,iti)s, ran-in4ro7 us)r 4ri)nd,in)ss to su++ort o4 7aCor 4unctions. Many o4 th)s) sa7) qu)stions @)r) us)d in aidin- in th) syst)7 Custi4ication.
4(ste' Justification A bud-)t o4 a++ro(i7at),y T/1$ 7i,,ion @as s)t 4or th) i7+,)7)ntation. 3h) Custi4ication o4 th) syst)7 @as don) usin- a co7bination o4 tan-ib,) and intan-ib,) 4actors at both th) )nt)r+ris) and busin)ss5unit ,)v),s. Standard hard5 Custi4ication 7)asur)s such as R:I and IRR @)r) us)d to )nsur) th) 4inancia, viabi,ity o4 th) +roC)ct. In 4act, i4 th)s) @)r) th) on,y 7)asur)s to b) us)d, th)n th) syst)7 @ou,d hav) b))n Custi4i)d. Q)t, th) data 4or th)s) 7)asur)s @)r) sti,, 4or)casts and )sti7at)s. Str)n-th)nin- th) 4inancia, Custi4ication by )va,uatin- oth)r 7)asur)s and 4actors h),+)d to +rovid) a stron-)r 4oundation 4or 7ana-)ria, acc)+tanc). In )sti7atin- 4inancia, 7)asur)s, -,oba, ca+acity uti,i8ation as a r)su,t o4 th) 6RP syst)7 @as a,so +roC)ct)d. 3h) +roC)ct 7ana-)rs k)+t in 7ind that such +roC)ctions @)r) on,y -uid),in)s that cou,d -)t o44s)t or boost)d as a r)su,t o4 oth)r continuous5i7+rov)7)nt activiti)s that @)r) on-oin- in th) co7+any. 3h)s) )sti7at)s ran-)d 4ro7 #51U out+ut i7+rov)7)nts bas)d on curr)nt ass)ts, @hich a,thou-h s))7in-,y s7a,,, a7ount)d to incr)as)d cost savin-s o4 s)v)ra, hundr)d 7i,,ion do,,ars. So7) additiona, intan-ib,) and tan-ib,) 4actors inc,ud)d
1 3IKs
+ro+ri )tary 7ain4r a7)5 bas)d ord)ri n@as inco7 +atib,) @ith th) -oa, o4 7ovin to@ar d a F)b5 bas)d )5 co77 )rc) 7od), . thousa nds o4 +ro-ra 7s
that incurr)d hu-) 7aint)nanc) costs, such as int)-ration, a7onth)s) so4t@ar) syst)7s.
3 Accurat)
-,oba, inv)ntory @as not +ossib,) @ithout a Rsin-,)5instanc)S 6RP syst)7. 6RP syst)7 @ou,d 4aci,itat) in cyc,)5ti7) r)duction, @hich @ou,d h),+ 3I co7+)t) )44)ctiv),y in th) custo7 DSP 7ark)t.
4 An
2 3I had
3hrou-h this busin)ss cas) Custi4ication, acc)+tab,) 4inancia, r)turns, a,on@ith strat)-ic 4actors, such as co7+)tin- )44)ctiv),y @ithin a -iv)n nich) 7ark)t, and o+)rationa, 4actors, such as -,oba, inv)ntory 7ana-)7)nt, a,, +,ay)d a ro,) in 6RPKs Custi4ication at 3I.
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4(ste' Configuration 3h) -oa,s and +roc)ss)s d)scrib)d abov) )ntai,)d a nu7b)r o4 chan-)s at th) d)tai,)d ,)v),. Many o4 th) chan-)s ar) di44icu,t to 7ana-) b)caus) o4 drastic chan-)s n))d)d to th) @ays o4 doinbusin)ss 0).-., th) busin)ss ru,)s2. 3h) +roc)ss)s us)d to addr)ss th) arisin- con4,icts ran-) 4ro7 to+5 7ana-)7)nt5 )nab,)d dia,o-u) a7on- th) +artici+ants to to+57ana-)7)nt5 back)d d)cisions that ,aid do@n th) +o,icy 4or 3I. A 4)@ )(a7+,)s 4o,,o@
that can +ot)ntia,,y co7) at so7) ti7) in th) 4utur).
2 3h) nu7b)r o4 ,)v),s
o4 a++rova, on a +urchas) ord)r @as standardi8)d at 4our 0th)r) @)r) so7) countri)s that had !1 ,)v),s2. a7ounts @)r) standardi8)d accordin- to th) ,)v), o4 th) conc)rn)d +)rson in th) or-ani8ation. -,oba,,y acc)+t)d +art nu7b)r b)ca7) an a-r))d u+on standard. 3his standardi8ation invo,v)d a hu-) IS and busin)ss )44ort b)caus) chan-)s had to b) 7ad) to th) databas)s, +ro-ra7s su++ort)d by th)7, and so7) 7anu4acturin+roc)dur)s, in addition to havin- to co77unicat) th) chan-)s to th) custo7)rs. 7andat)d to b) in 6n-,ish )(c)+t 4or custo7)r5s+)ci4ic in4or7ation such as addr)ss)s, )tc., us)d 4or )(t)rna, co77unication @ith th)7. In -)n)ra,, 6n-,ish @as us)d @h)n in4or7ation @as to b) shar)d a7on7u,tinationa, 4aci,iti)s, @hi,) ,oca, data, s+)ci4ic to a 4aci,ity, cou,d b) in th) ,oca, ,an-ua-).
3 Authori8ation
4 An !&5charact)r,
1 A,,
inv)nto ry is -,oba,. Aor )(a7+, ), inv)nto ry in 6uro+) 7ust shi+, i4 n))d)d , to any +art o4 th) -,ob), rath)r than b) h),d 4or 6uro+) an ord)rs
5 A,, syst)7s @)r)
<'ple'entation
In this +has), conc)+ts and -oa,s ar) trans,at)d into tan-ib,) action, and as a r)su,t, it is +)rha+s on) o4 7ost di44icu,t +has)s o4 th) +roC)ct. *)n)ra, +rinci+,)s such as -,oba, +roc)ss)s and standard syst)7s n))d to b) back)d u+ by convincinand d)+,oyinth) ri-ht +)o+,) to i7+,)7)nt th) +roc)ss)s. F) bri)4,y d)scrib) 3IKs i7+,)7)ntation +has) in th) 4o,,o@incat)-ori)s, start5u+, +roC)ct 7ana-)7)nt,
and R-oin- ,iv).S 3his d)scri+tion contains th) 7ann)r by @hich +rob,)7s @)r) addr)ss)d in )ach cat)-ory. Start0up7 A nu7b)r o4 k)y +)rsonn),, a,on- @ith th)ir 4a7i,i)s, @)r) )(+atriat)d to th) >S and station)d in Da,,as 4or a 4)@ y)ars. About /1$ +)o+,) @)r) transition)d 4ro7 3I to And)rs)n <onsu,tin0i.)., +ut on And)rs)nKs +ayro,,2, @hich b)ca7) th) 7ain +rovision)r o4 s)rvic)s @ith r)s+)ct to th) 6RP syst)7. I3 outsourcin- in this cas) invo,v)d And)rs)n <onsu,tin- takin- ov)r th) )7+,oy7)nt and 7ana-)7)nt o4 4or7)r 3I +)o+,). Pro3ect Management. <han-) 7ana-)7)nt +,ay)d a ,ar-) ro,) in this sta-). 3h) ro,)s o4 trainin-, +,annin-, and co77unicatin- @)r) o4 )qua, i7+ortanc). A,, 7ana-)7)nt ,)v),s @)r) invo,v)d in this +roc)ss, as @)r) various v)ndors and su++,i)rs. So7) o4 th) +ractic)s inc,ud)d
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n2.
1 :n5sit)
&andling (o0$ive. 3o -)t )(+)rts @)r)+r)+ar)d 4or R-o ,iv),S th) k)y 7ana-)rs @ho @)r) station)d 7ad) avai,ab,) toin Da,,as @)r) s)nt back to n)@ us)rs o4th)ir t)rritori)s 4or )ducatinth) syst)7. th) n)(t ,)v), o4 us)rs. >sins),)ct)d )(+)rts, us)r5 A acc)+tanc) scri+ts @)r) d)4in)d and t)st)d, @ith h),+ +rob,)7s, i4 any, b)ind)s r)so,v)d as +)r on) o4 th) k sch)7)s out,in)d abov). @as Dai,y con4)r)nc) ca,,s @)r) s)t s)t u+ 4or #$ days +rior to -o u+ ,iv) to obtain status ch)cks to on +ro-r)ss and on th) han tick)ts. d,) +rob Bas)d on th) r)su,ts o4 th)s) ,)7 ch)cks, a risk ana,ysis @as s conduct)d @))k,y to d)t)r7in) that th) )44)cts o4 various +ot)ntia, cou, 4ai,ur)s. 3h) i7+,)7)ntation d +,an @as to hav) a 4)@ -o ,iv) not dat)s on) a4t)r anoth)r, but in b) r),ativ),y quick succ)ssion. addr 6(c)+t 4or th) +,anninsyst)7, )ss) in a,, th) oth)r sta-)s in this d by cas) a dir)ct conv)rsion @as th)s )7+,oy)d. 3hat is, @ith a ) do@nti7) o4 about / to # hours )(+ durin- a @))k)nd, th) o,d )rts. syst)7 @as turn)d o44 and th) A n)@ on) turn)d on. tick)tinsyst)7 Post3<'ple'entation 4tatus 4or 7ana-in 3h) syst)7 7)t 7ost o4 its and -oa,s " 7onths a4t)r th) +rioriti8i co7+,)t) i7+,)7)ntation. nR)s+ons) ti7) 4or th) syst)7 +rob,)7 has )(c))d)d )(+)ctations, s @as @ith "$U o4 th) transactions a,so @or,d@id) -)ttin- a r)s+ons) )stab,ish @ithin # s)conds. 3h)r) ar) )d 0).-., around !#,$$$ us)rs 0!$,$$$ a 3I ^ #,$$$ outsid)2 on th) syst)7 syst)7, @ith concurr)nt us)rs sto+ @as ran-in- 4ro7 #$$ to !,%$$. a hi-h5 3h) int)-rat)d syst)7 a,,o@)d +riority 3I to b)tt)r 7anu4actur) and tick)t d),iv)r its !/$,$$$ ord)rs +)r that 7onth invo,vin- G1,$$$ @ou,d d)vic)s. -)t round5 So7) o4 th) k)y +)r4or7anc) th)5 7)asur)s and +ara7)t)rs c,ock )va,uat)d @)r) att)ntio
Productivity dip. 3h)r) @as a +)riod o4 r)duc)d +roductivity. *iv)n th) vo,u7inous chan-)s invo,v)d, this @as to b) )(+)ct)d. 3I )(+)ct)d this and discuss)d @ith And)rs)n 7)thods to a7),iorat) this +rob,)7. !n0time delivery. 3I @as not hittin- its -oa, o4 on5ti7) d),iv)ry. In addition to th) n)@ syst)7, 7ark)t conditions caus)d 7or) ord)rs than th)y
cou,d d),iv)r. 3h)y @)r) 4a,,in- short o4 ca+acity. Single0instance glo)al system. 3h) sin-,)5 instanc), int)-rat)d -,oba, 7od), @as succ)ss4u,, 4unda7)nta,,y trans4or7in- ho@ busin)ss is conduct)d at 3I. Better response. B)caus) o4 its F)b ca+abi,ity, th) syst)7 is us)d by 3IKs )(t)rna, constitu)nts as @),,, na7),y, distributors, custo7)rs, su++,i)rs, and 4i),d sa,)s+)o+,) @or,d@id). 3his F)b ca+abi,ity a,,o@)d )asi)r5to5us) ord)r 7ana-)7)nt syst)7s 4or custo7)rs. <usto7)rs no ,on-)r had to us) 3I5s+)ci4ic so4t@ar) a++,ications andIor cost,y +oint5to5+oint conn)ctions. Inventory reduction7 So7) 3I 4actori)s r)+ort)d out+ut incr)as)s o4 15 !$U and u+ to !1U r)duction in @ork5in5 +roc)ss inv)ntory.
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@ith thos) o4 th) busin)ss.
MANAGERI AL IMPLICATI ONS

3his cas) study o4 a succ)ss4u, 6RPI)5co77)rc) i7+,)7)ntation o44)rs and r)it)rat)s a nu7b)r o4 ,)ssons 4or th) 7ana-)7)nt o4 th)s) syst)7s. 3h) 4o,,o@in,)ssons ar) su77ari8)d Conduct a Thorough Strategic PlanB3h) cas) i,,ustrat)d ho@ 7ark)t 4orc)s had co7+),,)d th) co7+any to 7ak) radica, shi4ts in its or-ani8ationa , )nviron7)nt and cu,tur). Align IT Plans .ith Busines s Plans, <onduct r))n-in ))rinstudi)s and d)v),o+ strat)-i c I3 +,ans to a,i-n k)y I3 n))ds
(et Top Management Support,3h) +r)scri+tion o4 to+ 7ana-)7)nt su++ort has b))n 7ad) )v)r sinc) )ar,y I3 i7+,)7)ntations 0:K3oo,) ; :K3oo,), !"''2 to th) +r)s)nt. Stran-),y )nou-h, as stat)d by Jarv)n+aa and Iv)s 0!""!2, it a,so r)7ains to b) on) o4 th) +r)scri+tions that has b))n r)-u,ar,y i-nor)d. In this cas), 3IKs +r)sid)nt and th) chair7an o4 3IKs board co77unicat)d th) i7+ortanc) and status in th)ir quart)r,y sat),,it) broadcasts to th) co7+any. 3h) +r)sid)nt sat in on quart)r,y 7))tin-s and )v)n sti+u,at)d that i4 anyon) @ish)d to Rcusto7i8)S as+)cts o4 th) syst)7 that th)y @ou,d hav) to +)rsona,,y )(+,ain it to hi7 and sho@ @hy 3I @ou,d -)t 7or) +ro4it out o4 this chan-). Change Management,S)t r)a,istic us)r )(+)ctations such as th) initia, +roductivity di+s. >s)r invo,v)7)nt is critica,. And)rs)n <onsu,tin-Ks +roc)ss h),+)d to )nsur) that such @as th) cas). Mak) sur) that th) us)r is su++ort)d to h),+ i7+rov) us)r satis4action. Strong Champion CharacteristicsBIn 3IKs situation, th) 7ana-)r o4 th) 6RP +roC)ct had ov)r t@o d)cad)s o4 )(+)ri)nc) in various ,)v),s o4 th) or-ani8ation. 3his 7ana-)r had broad kno@,)d-) o4 cor+orat) o+)rations sinc) h) @as in char-) o4 th) +r)vious busin)ss +roc)ss r))n-in))rin- +ro-ra7s that 4or7)d th) 4oundation o4 th) n)@ 6RP syst)7. Pr)vious,y h) @as a vic) +r)sid)nt o4 on) o4 3IKs divisions. "ationali%e Business Models
and Processes, Mak) sur) th) busin)ss 7od),s and +roc)ss)s 4it @ithin th) strat)-ic dir)ction and -oa,s o4 th) or-ani8ation. 3i7), 7ass custo7i8ation, and 4,)(ibi,ity conc)rns ,)d to a -,oba, 7od),. Part o4 this rationa,i8ation @as a,so co7+,)t)d a4t)r th) SAP syst)7 @as a-r))d u+on, sinc) SAP r)quir)d busin)ss +roc)ss)s to b) co7+,)t)d as s+)ci4i)d by th)7 or si-ni4icant
custo7i8ation o4 th) syst)7 @ou,d b) r)quir)d. Manage E1ternal EnterprisesB A++ro+riat) and @),,5+,ann)d invo,v)7)nt o4 consu,tants is i7+ortant 4or k))+inth) +roC)ct on a ti-ht sch)du,). Aurth)r, @ith th) adv)nt o4 )5 co77)rc), co7+ani)s ar) 7or) ,ik),y to shi+ and ord)r -oods on th) basis o4 F)b5 bas)d in+uts 0?a,akota ; Fhinston, !""'2. A trainin+ro-ra7 7ust )nco7+ass such constitu)nts as @),,, an as+)ct that s))7s to b) i-nor)d in th) r)s)arch ,it)ratur). Mana-in- )(t)rna, )nt)r+ris) r),ationshi+s 0and syst)7s2 is not so7)thinthat 7any or-ani8ations hav) had )(+)ri)nc) co7+,)tin-. 3his 7ak)s th) )5co77)rc) s)ttin- 7or) co7+,)(, )s+)cia,,y @h)n or-ani8ations s))k to int)-rat) int)ror-ani8ationa, syst)7s.
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r)quirin- additiona, 4)atur)s. Manage ;sing MetricsB3I and 1 It is a sin-,)5instanc) And)rs)n syst)7, +rovidin<onsu,tin- hav) acc)ss to th) sa7) a cor+orat) data, irr)s+)ctiv) o4 cu,tur) and th) -)o-ra+hic +o,icy that ,ocation o4 th) us)r. r)quir)s th) 2 It +rovid)s acc)ss to strin-)nt and 4or7a, us) o4 #,$$$ )(t)rna, us)rs 7)trics in th) 0custo7)rs and 7ana-)7)nt su++,i)rs2, th)r)by and )va,uation )nab,in- %$U o4 th) o4 +roC)cts. 3h)y transactions to b) attribut) this conduct)d +o,icy adh)r)nc) ),)ctronica,,y. as on) o4 th) k)y r)asons 4or Mana-)7)nt did s)) succ)ss o4 th) so7) +rob,)7s in this i7+,)7)ntation +roc)ss 6RP i7+,)7)ntation. and tri)d to addr)ss th) issu)s. So7) o4 th) CONCLUSIO 7aCor +rob,)7s inc,ud)d
3raditiona, in4or7ation syst)7s ar) o4t)n i7+,)7)nt)d @ith th) -oa, o4 i7+rovin- th) int)rna, +roductivity o4 an or-ani8ation. In contrast, 7od)rn )nt)r+ris) and int)r5)nt)r+ris) syst)7s hav) su++,y chain int)-ration as an additiona, and an incr)asin-,y critica, -oa,. 3his 7ak)s th)ir 7ana-)7)nt and i7+,)7)ntation a v)ry ti7)5 consu7in- and di44icu,t task. 3IKs 6RP i7+,)7)ntation @ith an )5 co77)rc) +)rs+)ctiv) co7+ound)d th)s) inh)r)nt di44icu,ti)s by
1. 3h) so4t@ar) 4or
2.
su++,y chain 7ana-)7)nt 0R)d P)++)r2 that @as initia,,y chos)n did not 7))t )(+)ctations o4 3I. 3his syst)7 had to b) scra++)dN this r)su,t)d in a 7u,ti7i,,ion do,,ar cost. 3h) i/ syst)7 @as th)n i7+,)7)nt)d. A +roductivity di+ did occur. 3h) i7+,)7)ntation had to addr)ss this issu) 4or a,, 7ana-)rs throu-hout th) or-ani8ation @ho had so7) stak) in th) +)r4or7anc) o4 th) syst)7. 3h) )(+)ctations that this @ou,d occur @)r) co77unicat)d
3.
thro u-h n)@ s,)tt )rs and 7)s sa)s. <on sist )nt and cont inuo us co7 7un icati on h),+ )d to 7iti -at) a situ atio n that cou, d hav ) cau s)d a 7aC or +roC )ct 4ai,u r). *)t tinbuy 5in 4ro 7 int) rna, 4un ctio ns not dir) ct,y ass ocia t)d @it
4.
h th) i7+,)7)ntation +roc)ss @as di44icu,t. 3his occurr)d @ith th) 7ark)tin4unction. 3his 4unction n))d)d to b) on board 4or th) )5 co77)rc) ,inka-) @ith custo7)rs to @ork )44)ctiv),y. 3rainin- and +r)ssur)s 4ro7 u++)r5,)v), 7ana-)7)nt h),+)d to )as) th) transition 4or th) -,oba, 7ark)tin- -rou+. 6n-in))rin- is sti,, not 4u,,y int)-rat)d into th) 6RP syst)7. 3h) )5co77)rc) ,inka-) incor+oratin+roduct d)si-n @ith th) 6RP syst)7 @as not 4)asib,) 4or 7ana-)7)nt. Aor such a t)chno,o-y5 driv)n or-ani8ation, th) ,ack o4 )n-in))rin4unction int)-ration @ith th) 6RP syst)7 7ay n))d to b) inv)sti-at)d.
5e( questions to consi"er:
1. <an
a ,ar-) 7u,tinationa, or-ani8ation i7+,)7)nt a sin-,)5instanc) -,oba, 6RP syst)7 @ithout th) aid o4 an outsid) consu,tantZ <ou,d th)y 7ana-) this +roc)ss )v)n a4t)r
i7+, )7 )nt atio
nZ Is outsourcinth) IS 4unction 4or 6RP a -ood id)aZ
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2. Fh
ich 4un cti ons ar) crit ica, @it hin a -,o ba, 6R P sys t) 7Z Fh y @o u,d )n -in ))r innot b) con sid )r) da c)n tra, 4un cti on 4or )5 co 7 7) rc) Z Fh y sho u,d it b)Z
4.
u,d b) consid)r)d 4or syst)7 s),)ction, syst)7 i7+,)7)ntation, syst)7 auditin-Z Fou,d th)s) b) th) sa7) 7)tricsZ <an )5 co77)rc)5 bas)d 7)trics b) us)dZ Fhat ty+) o4 )5 co77)rc) bas)d 7)trics 7ay )(istZ Fhat ,)ssons cou,d b) ,)arn)d 4ro7 3IKs i7+,)7)nta tion +roc)ss that cou,d b) us)d 4or 4utur) 7odu,) int)-rationZ Ho@ 7uch int)ror-ani8 ationa, syst)7 int)-ration is r)quir)d 4or 3I in th) 6RPI)5 co77)rc) syst)7 ,inka-)Z
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0!""%2. 6(+,orinth) r)s)arch in in4or7ation t)chno,o-y i7+,)7)nta tion. Information and Manageme nt, #/, !&%5/$!. L)d)r)r, A. and Sa,7),a, H. 0!""'2. 3o@ard a th)ory o4 strat)-ic in4or7ation syst)7s +,annin-. Journal of Strategic Information Systems, 1, /#%5/1#. L)d)r)r, A. and S)thi, =. 0!""/2. Root caus)s o4 strat)-ic in4or7ation syst)7s +,annini7+,)7)ntation +rob,)7s. Journal of Management Information Systems, ", /15 G1. Lucas, H., Fa,ton, 6. and *in8b)r-, M.
0!"&&2. I7+,)7)ntin+acka-)d so4t@ar). MIS 5uarterly, 1#%51G". Markus, M. and B)nCa7in, R. 0!""'2. <han-) a-)ntry93h) n)(t 4ronti)r. MIS 5uarterly, #&15G$%. M)r)dith, J. 0!"&%2. Manu4acturin4actory auto7ation +roC)cts. Journal of Manufacturing Systems, ', %15 "!. :K3oo,), R. and :K3oo,), 6. 0!"''2. 3o+ )()cutiv) invo,v)7)nt in 6DP 4unction. PMM and Co0 management Controls, Jun), !/15!/%. P)t)rs, L. and Saidin, H. 0/$$$2. I3 and th) 7ass custo7i8ation o4 s)rvic)s 3h) cha,,)n-) o4 i7+,)7)ntation. International Journal of Information Management, /$, !$#. Sarkis, J. and Lin, L. 0!""G2. A -)n)ra, ID6A$ 7od), 4or th) strat)-ic i7+,)7)ntation o4 <IM syst)7s. International Journal of Computer Integrated Manufacturing, %, !$$5!!1. S7a,,, M. and Qasin, M. 0!""%2. D)v),o+in- a 4ra7)@ork 4or th) )44)ctiv) +,annin- and i7+,)7)ntation o4 advanc)d 7anu4acturin- t)chno,o-y. International Journal of !perations and Production Management, !%, G'&5G&".
1 3 0 -
Chapter <K: &n Ob7ect3Oriente" &,areness3/ase" $etho"olog( for ERP

+arha" aneshgar >niv)rsity o4 N)@ South Fa,)s, Austra,ia <o+yri-ht . /$$/, Id)a *rou+ Pub,ishin-.
INTRODUCTION
It is no@ b),i)v)d that succ)ss o4 6RP syst)7s is ,ar-),y d)+)nd)nt on not on,y th) succ)ss4u, )va,uation, s),)ction, i7+,)7)ntation and +ost5i7+,)7)ntation o4 6RP syst)7s, but a,so on int)-ratin- it @ith th) or-ani8ationa, busin)ss +roc)ss)s. :n th) oth)r hand, n)ar,y a,, busin)ss +roc)ss)s ar) co,,aborativ) in th) s)ns) that 7u,ti+,) hu7an a-)nts or actors int)ract @ith on) anoth)r 4or achi)vin- on) or 7or) +roc)ss -oa,s. As a r)su,t, on) can c,ai7 that on) 7aCor 4actor in succ)ss4u, i7+,)7)ntation o4 th) 6RP syst)7s is d)v),o+7)nt o4 a++ro+riat) conc)+tua, 7od),s o4 th) 6RP +roc)ss 4ro7 various +)rs+)ctiv)s. In this cha+t)r th) @rit)r, b)in- a 7)7b)r o4 th) <S<F 0co7+ut)r su++ort)d coo+)rativ) @ork2 r)s)arch co77unity, introduc)s a conc)+tua, 7od), 4or 6RP @hich has an )7+hasis on th) co,,aborativ) natur) o4 6RP +roc)ss that )(+,icit,y addr)ss)s th) Ra@ar)n)ssS and Rkno@,)d-)5sharin-S issu)s @ithin th) 6RP +roc)ss. 3his conc)+tua, 7od), d)7onstrat)s co,,aboration r)quir)7)nts o4 th) actors b)hind individua, busin)ss +roc)ss)s as @),, as th) r),ationshi+s a7on- th)s) busin)ss +roc)ss)s. 3his cha+t)r is int)nd)d to introduc) to th) 6RP co77unity a r),)vant +i)c) o4 @ork in conc)+tua, 7od),,in- 4ro7 th) +)rs+)ctiv) o4 <S<F @ith th) ai7 o4 attractin- r)s)arch co,,aborators 4or 4urth)r inv)sti-ation in th)s) 4i),ds. A 7aCor r)s)arch @ork by th) author is in +ro-r)ss 4or d)v),o+inan )(+)rt syst)7 that )nhanc)s co,,aboration a7on- various )ntiti)s @ithin an )nt)r+ris) throu-h +rovidin- th)s) )ntiti)s @ith r)quir)d ,)v),s o4 a@ar)n)ss. 3his cha+t)r introduc)s th) conc)+tua, 7od), that constitut)s th) bu,k o4 th) in4)r)nc) )n-in) o4 this 6(+)rt Syst)7 @h)n a++,i)d to th) )nt)r+ris) r)sourc) +,annin-. Lik) 7any )(istin- 6RP 4ra7)@orksI7od),s, th) +ro+os)d 4ra7)@ork is a,so bas)d on a @id),y acc)+t)d assu7+tion that a cor+orat)5@id) in4or7ation syst)7 consists o4 a s)t o4 +ot)ntia,,y r),at)d subsyst)7s. As a r)su,t, in4or7ation 4,o@s a7on- th)s) subsyst)7s 7ust b) id)nti4i)d and r)quir)d r)sourc)s b) +,ann)d usin- an a++ro+riat) 6RP 7)thodo,o-y. Fhat 7ak)s th) +ro+os)d 4ra7)@ork uniqu) a7on- oth)rs is that it )(+,icit,y tr)ats an 6RP +roc)ss as a colla)orative process by 7od),,inth) +roc)ss usin- co,,aborativ) s)7antic conc)+ts. 3his conc)+tua, 7od), consists o4 7u,ti+,) int)rr),at)d sub+roc)ss)s @ith )ach sub+roc)ss in turn b)in- co7+os)d o4 on) or 7or) si7+,) tasks 0as o++os)d to th) co,,aborativ) tasks )(+,ain)d ,at)r2. Aor si7+,icity, si7+,) tasks ar) r)4)rr)d in this cha+t)r as tas+s. 6ach task r)quir)s c)rtain r)sourc)s 4or achi)vinits ,oca, -oa, or +ur+os), as @),, as c)rtain oth)r r)sourc)s 4or achi)vinits co,,aborativ) -oa,s @ith oth)r tasks @ithin th) 6RP +roc)ss. 3h) t)r7 process resource is th) t)r7 us)d to d)scrib) th) r)sourc) r)quir)d 4or +)r4or7in- a task @ith no r)-ards to its co,,aborativ) r)sourc) r)quir)7)nts, @h)r)as colla)orative resource is us)d to d)scrib) additiona, r)sourc)s r)quir)d by a task in ord)r to co,,aborat) @ith oth)r tasks. 6ach task is +)r4or7)d by a role and )ach ro,) is +,ay)d by a hu7an a-)nt ca,,)d an actor, a,thou-h th)r) is no r)+r)s)ntation 4or th) actor in th) 4ra7)@ork, and th) actor is indir)ct,y id)nti4i)d throu-h th) role that th)y +,ay at any ti7). Actors 7ay
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+,ay 7u,ti+,) ro,)s in an 6RP +roc)ss. Fh)n 7or) than on) ro,) +)r4or7s a task, th)n @) ca,, th) task a colla)orative tas+ that consists o4 a +air o4 0si7+,)2 tasks, )ach +,ay)d by a di44)r)nt ro,) and as a r)su,t, that @ou,d r)quir) an additiona, s)t o4 r)sourc)s in ord)r 4or th) co,,aboration to b) r)a,is)d. Anoth)r uniqu) charact)ristic o4 th) +ro+os)d 4ra7)@ork is that it r)-ards )44)ctiv) co77unication or in4or7ationIr)so urc) )(chan-) a7on- th) actors as b)in- c,os),y r),at)d to th) ,)v), o4 a@ar)n)ss that )ach actor +oss)ss)s about oth)r co7+on)nts o4 th) co,,aborativ) +roc)ss 0).-., ro,)s, sub+roc)ss tasks, +roc)ss r)sourc)s and co,,aborativ) r)sourc)s2. In oth)r @ords, both th) +ro+os)d 4ra7)@ork and its d)riv)d 6RP 7)thodo,o-y ar) bas)d on th) a@ar)n)ss o4 hu7an a-)nts,
@h)r) such a@ar)n)ss is d)4in)d in t)r7s o4 th) kno@,)d-) about various as+)cts o4 th) 6RP +roc)ss its),4. Hav) a ,ook at this 4a7i,iar sc)nario
RI4 our syst)7s had b))n co77unicatin-, th) instant th) r)cord c,os)d out in our syst)7 th) sa,)s -uys @ou,d hav) kno@n it ... 3h)r) ar) thr)) 4or)casts 4or 7onth,y sa,)s and I cou,dnKt r)conci,) th)7. Accountin- us)s so7) kind o4 do,,ari8)d 4or)cast 4or cash +,annin- +ur+os)s. 3h) sa,)s -uys ar) usinth)ir LuiCa boards and oth)r sorc)ry to 4i-ur) out @hat d)a,s th)y @i,, c,os). ... 6nt)rinth) data, )s+)cia,,y sinc) it is don) on,y onc), r)quir)s )(t)nsiv) 4or7a, +roc)dur)sS. 0Jacobs ; Fhybark, /$$$, ++. !/5!#2
And 4ina,,y th) ,ast uniqu) charact)ristic o4 th) +ro+os)d 4ra7)@ork is that du) to its obC)ct ori)ntationN it )nca+su,at)s a,, co7+,ications and d)+)nd)nci)s a7onsub+roc)ss)s o4 th) 6RP +roc)ss @ithin th) individua, tasks and r)quir)d to +)r4or7 thos) tasks, and 4urth)r r),i)vin- 6RP 7ana-)7)nt and th) associat)d so4t@ar).
A PROCESS AWARENESS METHODOLOGY FOR ERP

3his s)ction introduc)s a 7)thodo,o-y 4or id)nti4yina@ar)n)ss r)quir)7)nts o4 actors in an 6RP +roc)ss. Such r)quir)7)nts can th)n b) us)d to +,an various r)sourc)s @ithin th) )nt)r+ris). 3h) st)+s 4or this 7)thodo,o-y 4o,,o@ 4TEP ;% D)v),o+ a conc)+tua, 7od), 4or th) 6RP +roc)ss usin- a s)t o4 co,,aborativ)
s)7antic conc)+ts. 3his 7od), sho@s a,, th) activiti)s @ithin th) )nt)r+ris) in th) 4or7 o4 various tasks that ar) +)r4or7)d by actors by assu7in- c)rtain ro,)s usin- t@o cat)-ori)s o4 r)sourc)s +roc)ss r)sourc)s and co,,aborativ) r)sourc)s. 3his conc)+tua, 7od), is ca,,)d th) E"P process map. D)tai,)d d)scri+tion o4 th) 6RP +roc)ss 7a+ is -iv)n ,at)r.
4TEP 9. M)asur) th) actual levels of a-areness o4 )ach ro,) 0or th) actor @ho +,ays th) ro,)2 on th) 6RP +roc)ss 7a+ usinth) a@ar)n)ss 7od),. Actua, ,)v), o4 a@ar)n)ss is a +ro+)rty o4 th) actor, and th) ro,) si7+,y inh)rits such a@ar)n)ss 4ro7 th) actor @ho +,ays it. D)+)ndin- on its nu7)ric va,u), this actua, ,)v), o4 a@ar)n)ss 7ay consist o4 a s)t o4 instanc)sIobC)cts )7anat)d 4ro7 th) co,,aborativ) s)7antic conc)+tsIc,ass)s that constitut) th) 6RP +roc)ss 7a+. 3h)s) conc)+tsIc,ass)s ar)
1. 2. 3. 4.
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ro,)s, tasks, +roc)ss r)sourc)s, and co,,aborativ) r)sourc)s.
As an )(a7+,), F) 7ay id)nti4y th) 4o,,o@in- sub+roc)ss)sIsubsyst)7s in an 6RP co,,aborativ) +roc)ss Ainancia, Accountin- 0AA2 :rd)r Proc)ssin- 0:P2 <usto7)r S)rvic) 0<S2 Ainancia, R)+ortin- 0AR2 F) can say that AA sub+roc)ss consists o4 a s)t o4 tas+s id)nti4i)d by AA3!, AA3/, ... AA3nN :P consists o4 th) tasks :P3!, :P3/, )tc. Ro,) R! 7ay +,ay AA3!, AA3/ and :P3! @h)r)as ro,) R/ 7ay +,ay AA3G, AR3! and AR3', )tc. R! n))ds process resource PRcR!AA3! 4or +)r4or7in- AA3! task 0sho@n by an arc conn)ctin- R! to AA3!2 and R/ n))ds +roc)ss r)sourc) PRcR/AR3! 4or +)r4or7in- AR3! task 0sho@n by th) arc conn)ctin- R/ to AR3!2, )tc. L)t us assu7) that th) t@o tasks AA3/ and AR3! ar) )()cut)d co,,aborativ),y and 4or this co,,aboration to occur a tas+ resource 3RcAA3/cAR3! is r)quir)d sho@n by an arc conn)ctin- AA3/ to AR3!. A -ra+hica, r)+r)s)ntation o4 this 6RP +roc)ss is sho@n in Ai-ur) !.
+igure ;: An )(a7+,) o4 an 6RP +roc)ss 7a+ @ith t@o ro,)s, si( si7+,) tasks, and on) co,,aborativ) task In ord)r to 7)asur) th) actua, ,)v), o4 a@ar)n)ss o4 an actor sIh) 7ust b) )(+os)d to a,, th) obC)cts that )(ist on th) 6RP Proc)ss Ma+ and b) ask)d to id)nti4y thos) obC)cts that sIh) is a@ar) o4. A S),)ct)d +oo, o4 obC)cts is th)n 4)d to th) a,-orith7ic +roc)dur)s 0th) s)cond co7+on)nt o4 th) +ro+os)d 4ra7)@ork2 in ord)r to arriv) at a nu7b)r that r)4,)cts th) actua, ,)v), o4 a@ar)n)ss associat)d @ith th) ro,). 3h)s) ,)v),s ar) )(+,ain)d in th) n)(t s)ction in 7or) d)tai,.
4TEP =% 3h) actorKs actua, ,)v), o4 a@ar)n)ss is th)n co7+ar)d a-ainst th) re6uired level of a-areness as s+)ci4i)d by 0or b)in- a +ro+)rty o42 th) task that th) actor +,ays
133-
0throu-h assu7in- a ro,)2 @ithin th) +roc)ss. It is assu7)d h)r) that )ach task obC)ct has a re6uired level of a-areness as its 7ost 7aCor +ro+)rty. 3his ,)v), o4 a@ar)n)ss is th) 7ini7u7 ,)v), o4 a@ar)n)ss that is )(+)ct)d 4ro7 any ro,) @ho int)nds to +)r4or7 th) task. A kno@,)d-) )n-in))r @i,, d)t)r7in) th) va,u) o4 this +ro+)rty. 3h) 4actors that 7ay a44)ct th) kno@,)d-) )n-in))rKs d)cision in d)cidin- on this va,u) ar) or-ani8ationa, cu,tur) and th) natur) o4 task its),4. 3his va,u) r)4,)cts th) 4act that @ithout such a@ar)n)ss th) actor @i,, not b) ab,) to +)r4or7 th) task +ro+)r,y. A co7+arison b)t@))n th) actua, ,)v), o4 a@ar)n)ss o4 th) actor and th) r)quir)d ,)v), o4 a@ar)n)ss o4 th) task @i,, r)su,t in on) o4 th) 4o,,o@in- t@o outco7)s
2.
1. 3h)
r)q uir) d ,)v
), o4 a@ar)n)ss o4 th) task is )ith)r )qua, to or ,)ss than th) actua, ,)v), o4 a@ar)n)ss o4 th) ro,). 3his indicat)s that th) ro,) is qua,i4i)d or has su44ici)nt ,)v), o4 a@ar)n)ss 4or takin- u+ th) task as th) a@ar)n)ss r)quir)7)nts o4 th) task ar) satis4i)d. 3h) r)quir)d ,)v), o4 a@ar)n)ss o4 th) task )(c))ds th) actua, ,)v), o4 a@ar)n)ss o4 th) actor. 3his indicat)s that th) ro,) do)s not +oss)ss r)quir)d a@ar)n)ss and th)r)4or) various 07issin-2 obC)cts, inc,udininstanc)s o4 +roc)ss r)sourc)s and co,,aborativ) r)sourc)s, 7ust b) +ut @ithin th) 4ocus o4 th) actor that sIh) is not a@ar) o4 th)7 y)t. In oth)r @ords, r)quir)d r)sourc)s ar) n))d)d to )nhanc) th) a@ar)n)ss ,)v), o4 th) actor in ord)r to +)r4or7 th) task )44)ctiv),y. 3h)s) r)quir)d r)sourc)s 7ay inc,ud) on) or 7or) o4 +roc)ss
r)s ou rc) s, co, ,ab or ati v) r)s ou rc) s, an d ot h) r co 7 7 uni cat ion r)s ou rc) s, ). -., r)s ou rc) s th at +r ovi d) a@ ar )n )s s ab ou t ot h) r ro, )s an d ot h) r tas ks, @it hin
th) 6RP +roc)ss.
COMPONENTS OF THE FRAMEWOR3h) +ro+os)d 4ra7)@ork consists o4 th) 4o,,o@in- t@o co7+on)nts
1. a
2.
conn)ct)d -ra+h as a conc)+tua, 7od), 4or th) 6RP +roc)ss 0ca,,)d th) 6RP +roc)ss 7a+2, and a n)@ 7od), 4or process a-areness in th) 4or7 o4 a s)t o4 a,-orith7ic +roc)dur)s that can b) us)d to +ars) th) abov) -ra+h in ord)r to id)nti4y various obC)cts that constitut) various ,)v),s o4 a@ar)n)ss associat)d @ith various ro,)s and tasks @ithin th) 6RP +roc)ss.
Process $ap 3h) 6RP +roc)ss 7a+ is a +,annin- and ana,ysis too, that 7od),s th) 6RP co,,aborativ) +roc)ss usin- a ,i7it)d nu7b)r o4 colla)orative semantic concepts 0or o)3ects2 that ar) ,ink)d to-)th)r throu-h various r)sourc)s. 3h)s) +ri7ary conc)+ts and th)ir r),at)d s)condary conc)+ts inc,ud) th) 4o,,o@in-. Tas# 1&lso Calle" L4i'ple Tas#M2 efinition obC)cts @ith a s)t o4 attribut)s and actions to achi)v) a s+)ci4ic +roc)ss -oa, usin- c)rtain r)sourc)s ca,,)d process resources.
"epresentation It or 7or) o4 its attribut)s 0).-., is uniqu),y -oa,, ID nu7b)r, R)quir)d L)v), id)nti4iab,) by a o4 A@ar)n)ss, )tc.2 andIor its co7bination o4 on) actions.
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Si7+,) tasks ar) -ra+hica,,y r)+r)s)nt)d by v)rtic)s o4 a conn)ct)d -ra+h, @hich r)+r)s)nts th) 6RP +roc)ss. Ai-ur) / sho@s t@o +roc)ss)s. 3h) on) in th) to+ is co,,aborativ) 0has 7any co,,aboratin- ro,)sIactors2 and th) botto7 on) is a non5 co,,aborativ) +roc)ss 7a+. 3asks ar) sho@n by bo,d circ,)s ,ab),,)d a to 4 and ! to &.
+igure 9: 6(a7+,) o4 co,,aborativ) and non5co,,aborativ) +roc)ss)s &ction efinition' a s)qu)nc) o4 -oa,5dir)ct)d st)+s. "epresentation' Actions ar) s)condary conc)+ts in th) +ro+os)d 4ra7)@ork and th)r)4or) th)r) is no dir)ct -ra+hica, r)+r)s)ntation 4or th) actions. 3h)y ar) )7b)dd)d @ithin th) task. Collaborati!e Tas# efinition' is co7+os)d o4 t@o 0or 7or)2 simple tas+s that shar) th) sa7) colla)orative resource and hav) a co77on -oa,.
"epresentation' <o,,aborativ) tasks ar) -ra+hica,,y r)+r)s)nt)d by th) associat)d si7+,) tasks and th) shar)d co,,aborativ) r)sourc) arc that ,inks th) tasks to-)th)r.
&ctors efinition 3h)s) ar) hu7an a-)nts that )nact a s)t o4 si7+,) tasks by +,ayin- a s)t o4 roles.
"epresentation 3h)r) is no dir)ct -ra+hica, r)+r)s)ntation 4or th)s) obC)cts. Actors ar) )7b)dd)d @ithin th) roles that th)y +,ay @ithin th) +roc)ss. Role efinition a s)t o4 nor7s )(+r)ss)d in t)r7s o4 ob,i-ations, +rivi,)-)s, and ri-hts. "epresentation Ro,)s ar) -ra+hica,,y r)+r)s)nt)d by v)rtic)s o4 th) conn)ct)d -ra+h. In Ai-ur) /, ro,)s ar) sho@n by 4i,,)d circ,)s. Process Resource efinition 3his obC)ct r)+r)s)nts th) r)sourc)s that th) ro,) uti,is)s in ord)r to +)r4or7 a simple tas+ in iso,ation. "epresentation Proc)ss r)sourc)s ar) -ra+hica,,y r)+r)s)nt)d by th) arcs that conn)ct a ro,) v)rt)( to a si7+,) task v)rt)(.
135-
Collaborati!e Resource efinition 3h)s) ar) r)sourc)s us)d by th) actors 0usua,,y a +air o4 actors2 in ord)r to +)r4or7 a c)rtain si7+,) task in co,,aboration @ith anoth)r actor +,ayin- a r),at)d si7+,) task. "epresentati on <o,,aborativ) r)sourc)s ar) sho@n by arcs that conn)ct t@o r),at)d si7+,) task v)rtic)s to-)th)r.
r)+r)s)nt)d by a conn)ct)d -ra+h si7i,ar to th) on) at th) to+ +ortion o4 Ai-ur) /. An 6RP +roc)ss is colla)orative i4 at ,)ast on) colla)orative tas+ )(ists in it. It s))7s that 6RP +roc)ss)s ar) a,@ays co,,aborativ).
Process efinition a s)t o4 ro,)s, +roc)ss &ctual &,areness: is th) r)sourc)s, si7+,) a@ar)n)ss that an actor tasks, and actua,,y +oss)ss)s @ithin th) co,,aborativ) +roc)ss. Actua, a@ar)n)ss is r)sourc)s that ar) r)+r)s)nt)d by an int)-)r ,ink)d to-)th)r in nu7b)r, ran-in- 4ro7 $ to ', ord)r to achi)v) r)+r)s)ntin- various ,)v),s c)rtain o4 a@ar)n)ss. )nt)r+ris)5 @id) -oa,. 6RP Require" &,areness: is an +roc)ss)s ar) a@ar)n)ss that is attach)d to 4or7)d @h)n t@o )ach task and r)+r)s)nts th) or 7or) actions )(+)ct)d a@ar)n)ss 4ro7 th) r)quir) c)rtain actor @ho +)r4or7s th) task. colla)orative Its r)+r)s)ntation is th) sa7) resources at th) as actua, a@ar)n)ss. sa7) ti7). 3his is ca,,)d tas+ THE AWARENESS dependency. 3ask d)+)nd)ncy 7ay MODEL )(ist both @ithin and b)t@))n th) 3h) a@ar)n)ss 7od), +rovid)s sub+roc)ss)s o4 a n)@ d)4inition 4or process th) 6RP +roc)ss. a-areness @ithin th) cont)(t
o4 co,,aborativ) +roc)ss, as "epresentation @),, as a 7)asur) 4or this An 6RP +roc)ss is a@ar)n)ss. 3h) a@ar)n)ss -ra+hica,,y 7od), d)4in)s a-areness
&,areness efinition A@ar)n)ss is s+)cia,is)d kno@,)d-) about th) obC)cts that ,)ad an actor to an und)rstandin- o4 various as+)cts o4 th) +roc)ss. <ont)nts o4 this s+)cia,i8)d kno@,)d-) ar) d)4in)d in t)r7s o4 various ro,)s, si7+,) and co,,aborativ) tasks, and +roc)ss and co,,aborativ) r)sourc)s. "epresentation *ra+hica, r)+r)s)ntation o4 various ,)v),s o4 a@ar)n)ss o4 an actor inc,ud)s a s)t o4 th) obC)cts 0or co,,aborativ) s)7antic conc)+ts2 that constitut) various +aths 4ro7 th) actorKs ro,) v)rtic)s to )ach oth)r v)rtic)s o4 th) +roc)ssK conn)ct)d -ra+h.
,)v),s in t)r7s o4 th) co,,aborativ) s)7antic conc)+ts. Accordin- to this 7od),, process a-areness is kno@,)d-) about th) obC)cts that ,)ad an actor to an und)rstandin- o4 various as+)cts
o4 th) colla)orative process7 Such a@ar)n)ss is d)4in)d in t)r7s o4 structur)s that 7ay inc,ud) roles, simple and colla)orative tas+s, +roc)ss r)sourc)s, and task r)sourc)s. 3h)s) ,)v),s ar)
L!3! 45 a6ar!&!'' An actorKs ,)v),5$ a@ar)n)ss is a@ar)n)ss about th) obC)cts that ,)ad th) actor to kno@,)d-) about a,, th) simple tas+s that th) actor +)r4or7s @ithin th) +roc)ss.
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L!3! 47 a6ar!&!'' 3his is th) su7 o4 an actorKs ,)v),5$ a@ar)n)ss +,us a@ar)n)ss about th) obC)cts that ,)ad th) actor to kno@,)d-) about oth)r r),at)d ro,)s @ithin th) +roc)ss.
hi-h)st ,)v), o4 a@ar)n)ss that an actor can hav) about th) int)rna, co7+on)nts o4 th) +roc)ss. It is d)4in)d as th) kno@,)d-) about ho@ )v)rythin- 4it to-)th)r to 4or7 th) +roc)ss. In oth)r @ords, havin- this ,)v), o4 a@ar)n)ss @i,, brin- a,, th) r)7aininobC)cts in <BPM @ithin th) 4ocus o4 th) actor.
L!3! 4; a6ar!&!'': is a kno@,)d-) about th) obC)cts that ,)ad th) actor to an und)rstandin- o4 th) actua, r),ationshi+ b)t@))n th) +roc)ss and th) ov)ra,, or-ani8ationa, cont)(t. No L!3! 48 a6ar!&!'' An +roc)ss 7a+ r)+r)s)ntation )(ists 4or this ,)v), o4 actorKs ,)v),5/ a@ar)n)ss. 3his ,)v), a@ar)n)ss is r)+r)s)nts th) th)or)tica, ,i7it hisIh)r ,)v),5! a@ar)n)ss +,us o4 th) +ro+os)d 4ra7)@ork, and its a++)aranc) in this artic,) is an a@ar)n)ss si7+,y du) to its 4itn)ss to th) about a,, oth)r ov)ra,, )vo,utionary natur) o4 0or th) r)st o4 th)2 roles @ithin th) a@ar)n)ss. No 4urth)r discussion @i,, b) -iv)n th) +roc)ss. r)-ardin- this and th) n)(t L)v),5/ ,)v), o4 a@ar)n)ss. a@ar)n)ss is kno@,)d-) L!3! 4< a6ar!&!'': is about th) a kno@,)d-) about th) hu7an boundary o4 th) obC)cts that ,)ad th) actor to an +roc)ss. und)rstandin- o4 th) history o4 th) +roc)ss L!3! 43 at di44)r)nt ti7)s as a6ar!&!'' @),, as in si7i,ar An actorKs or-ani8ations at +r)s)nt ,)v),5# ti7). a@ar)n)ss is hisIh)r ,)v),5 / a@ar)n)ss APPLICATION OF +,us THE PROPOSED a@ar)n)ss FRAMEWOR- TO ERP about a,, th) int)ractions :n th) basis o4 this 0r)+r)s)nt)d 4ra7)@ork th) @rit)r is in by th) tas+ th) +roc)ss o4 d)v),o+in- a artefacts2 kno@,)d-)5bas)d syst)7 that occur that +rovid)s )(+)rt advic) b)t@))n any 4or ans@)rinth) 4o,,o@int@o ro,)s t@o 7ain qu)stions @ithin th) +roc)ss. L!3! 49 a6ar!&!'': 3his is th)
1. In
t)r7s o4 a@ar)n)ss r)quir)7)nts,
is a n a c t o r c a + a b , ) o 4 + ) r4 o r 7 i n a c ) rt a i n t a s k @ it h i n
2.
th) 6RP +roc)ssZ I4 not, @hat obC)cts n))d to b) +ut @ithin hisIh)r 4ocus in ord)r to )nab,) th) actor to +)r4or7 th) task +ro+)r,yZ
3h)s) qu)stions ar) ),aborat)d in th) 4o,,o@in- +ara-ra+hs. &nal(sis of the +ra'e,or# In th) )(a7+,) o4 Ai-ur) ! th) 6RP +roc)ss has 4our sub+roc)ss)s 0that is, Ainancia, Accountin-, AA, :rd)r Proc)ssin-, :P, <usto7)r S)rvic), <S and Ainancia, R)+ortin-, AR2. 3h) notion o4 a sub+roc)ss is )nca+su,at)d @ithin th) individua, tasks and r),)vant r)sourc)s o4 th) sub+roc)ss 0no dir)ct r)+r)s)ntation 4or sub+roc)ss)s in th) 4ra7)@ork2. Inst)ad, )ach task +oss)ss)s a s)t o4 attribut)s and r),)vant actions that @i,, indicat) to @hich sub+roc)ss th) task b),on-s. 3his @i,, +rovid) a s)ns) o4 s)+arationI4r))do7 to an actor to +,ay various ro,)s @ithin di44)r)nt sub+roc)ss)s @ithout b)in- +)r7an)nt,y ,ink)d to a s+)ci4ic sub+roc)ss, a 4actor that can -r)at,y
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contribut)s to 7uch o4 co7+,)(iti)s o4 an 6RP syst)7. 3h) int)rd)+)nd)ncy issu) b)t@))n various sub+roc)ss)s is a,so si7+,i4i)d by )nca+su,atinth)7 @ithin th) task obC)cts and th)ir r),at)d r)sourc)s in such a @ay that )ach task has )qua, o++ortunity 0or 4o,,o@s th) sa7) standard 2 to b) ,ink)d to any oth)r task @ithin th) 6RP +roc)ss, inc,udin- to thos) tasks @ithin th) sa7) sub+roc)ss. 3his @i,, a,so r)duc) 7uch o4 co7+,)(iti)s that 7ay )(ist in +roc)ss5ori)nt)d 6RP syst)7s @h)r) th) syst)7 7ust +)r7an)nt,y 7aintain such ,inka-)s.
syst)7s @)r) discuss)d. 3h) sa7) 4ra7)@ork has a,r)ady b))n us)d 4or d)si-nin- 7or) -)n)ra, +ur+os) kno@,)d-)5 bas)d syst)7s that 7aintain a@ar)n)ss ,)v),s o4 actors at d)sir)d ,)v),s 0Dan)sh-ar, !""", /$$$2. In addition, th) 4ra7)@ork has a,so b))n succ)ss4u,,y a++,i)d to a troub,) tick)tin- +roc)ss in a ,ar-) n)t@ork or-ani8ation in ord)r to id)nti4y i7+rov)7)nt +rioriti)s @ithin th) n)t@ork 7ana-)7)nt +roc)ss. 3h) +roc)ss has a,so b))n a++,i)d to oth)r co,,aborativ) +roc)ss)s ).-., R3h) >niv)rsity 3utoria, <,ass)sS and RSo4t@ar) D)v),o+7)nt Li4) <yc,) +roc)ss in distribut)d )nviron7)nts,S @ith si-ni4icant r)su,ts. 3h) 4ra7)@ork and its a@ar)n)ss 7od), co7+on)nt hav) b))n ca,ibrat)d 4or di44)r)nt or-ani8ationa, cu,tur)s 0Dan)sh-ar, /$$!2. Fork is in +ro-r)ss 4or 4ina,isin- d)v),o+7)nt o4 a -)n)ra, +ur+os) kno@,)d-)5 bas)d syst)7 that can +rovid) )(+)rt advic) in r),ation to th) co,,aborativ) as+)cts o4 busin)ss +roc)ss)s.
REFERENCES
Dan)sh-ar, A. 0!"""2. A CONCLUSIO 7)thodo,o-y 4or +,annin-, ana,ysis and d)si-n o4 N AND co,,aborativ) databas)s FUTURE Introducin- AF3 kno@,)d-)bas). Second WORInternational .or+shop on Colla)orative ata)ases 3his artic,) JC! AS2CCK, Fo,,on-on-, introduc)d a Austra,ia. conc)+tua, Dan)sh-ar, A. 0/$$$2. A obC)ct5ori)nt)d 4or7a,i8)d 4ra7)@ork 4or a++roach 4ra7)@ork bas)d coo+)rativ) 7ana-)7)nt usin- -ra+h th)ory. on +roc)ss Seventh IEEE a@ar)n)ss 4or International Conference ana,ysis and on Parallel and istri)uted d)si-n o4 6RP syst)7s, and its Systems, I@at), Ja+an. advanta-)s ov)r Dan)sh-ar, A. 0/$$!2. A +roc)ss5ori)nt)d 7)thodo,o-y 4or
r)d)si-ninco,,aborativ) +roc)ss)s @ith und)sirab,) 7u,ti5@ay task d)+)nd)nci) s. 4ifteenth
International Conference on Information #et-or+ing, B)++u <ity, Ja+an. Jacobs, A. R. and Fhybark, D. <. 0/$$$2. .hy E"PM' A Primer on SAP Implementation. Boston, MA Mc*ra@5Hi,, Hi-h)r 6ducation.
1 3 8 -
Chapte r K: & +ra'e ,or# for &ssessi ng ERP 4(ste' s> +unctio nalit( for the 4$Es in &ustral ia
OVERVIEW
v)ndors such as SAP, :rac,), P)o+,)So4t, J.D. 6d@ards and Bann ar) introducin- 6RP so4t@ar) that a++)a,s to th) 7ark)t s)-7)nt o4 th) SM6s. Introduction o4 th) 6RP syst)7s 4or SM6s inc,ud)s co7+act +acka-)s, 4,)(ib,) +ricin+o,ici)s, n)@ i7+,)7)ntation 7)thodo,o-i)s, and 7or) s+)cia,i8)d 4unctiona,iti)s. 3h) str)n-ths5@)akn)ss)s5 o++ortuniti)s5thr)ats 0SF:32 4ra7)@ork o4 th) 6RP so4t@ar) o44)r)d by th) a4or)7)ntion)d v)ndors 4or th) SM6s r)quir)s in5d)+th ana,ysis bas)d on r)a, 4i),d data. 3h) ai7 o4 this study is to id)nti4y th) str)n-ths, @)akn)ss)s, o++ortuniti)s, and thr)ats o4 6RP syst)7s o44)r)d by th) 4iv) ,)adin- v)ndors 4or th) SM6s in Austra,ia. Mu,ti+,) cas) study d)si-n a++roach is us)d h)r) 4or co,,)ctinth) +ri7ary data 4ro7 th) 6RP v)ndors. A SF:3 4ra7)@ork is d)v),o+)d to study th) 4unctiona,ity o4 th) 6RP syst)7s o44)r)d by th)s) v)ndors. 3his 4ra7)@ork 7ay -uid) th) 7ana-)rs o4 SM6s in s),)ctinand i7+,)7)ntin- 6RP syst)7s 4or th)ir or-ani8ations.
Liaquat Hossain Syracus) INTRODUCTION >niv)rsity, >SA $oha''a" &% Int)-rat)d, str)a7,in)d, Rashi" r)s+onsiv) and a-i,) ar) @ords Mass)y b)inus)d to d)scrib) @hat >niv)rsityB co7+ani)s 7ust b)co7) in A,bany, N)@ ord)r to stay +ro4itab,). E)a,and 6nt)r+ris) r)sourc) +,anninJon a!i" 06RP2 can b) r)-ard)d as a Patric# k)y )nab,)r o4 busin)ss >niv)rsity o4 trans4or7ation. It is a,so Sydn)y, Austra,ia r)-ard)d as a critica, succ)ss 4actor 0<SA2 to th) surviva, o4 <o+yri-ht . any busin)ss in this hi-h,y /$$/, Id)a *rou+ co7+)titiv) 7ark)t+,ac). Mor) Pub,ishin-. than '$U o4 th) Aortun) !$$$ co7+ani)s hav) insta,,)d or Antici+atinth) ar) in th) +roc)ss o4 us) o4 6RP i7+,)7)ntin- +acka-)d 6RP syst)7s a7on- syst)7s to su++ort th)ir back5 s7a,, to 7)diu7 )nd busin)ss activiti)s 0?ra4t, )nt)r+ris)s !"""2. 3h)s) +acka-)s 0SM6s2 to b) th) i7+,)7)nt)d by th) Aortun) 4utur) ar)a o4 !$$$ co7+ani)s run @),, ov)r -ro@th, 6RP
th) I3 bud-)ts 4or Austra,ian SM6s. 6RP v)ndors ar) tar-)tin- this 7ark)t @ith su++os)d,y sca,)d5back syst)7s suitab,) 4or s7a,,)r 4ir7s. 3h) qu)stion o4 ho@ @),, th)s) +acka-)s tar-)t th) SM6 n))ds is th) c)ntra, 4ocus o4 this study. 6RP is b)inso,d as an
)ss)ntia, too, 4or th) surviva, o4 any co77)rcia, or-ani8ation in th) 4utur). 3h) SM6 is th) n)@ tar-)t o4 6RP v)ndors o44)rin- syst)7s r)4in)d s+)ci4ica,,y 4or this unta++)d 7ark)t s)-7)nt. SM6 7ana-)rs ar) 4ac)d @ith th) hi-h,y co7+,)( task o4 si4tin- throu-h th)s) so4t@ar) +acka-)s to s)) @hat is on o44)r and ho@ it 7ay b)n)4it th)ir or-ani8ation no@ and in th) 4utur). 3o a++rais) such co7+,)( syst)7s 4or th) b)n)4it o4 th) SM6 7ark)t s)-7)nt r)quir)s a -uidin4ra7)@ork.
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THIS STUDY
3h)r)4or), this study ai7s to d)v),o+ a SF:3 0str)n-ths5 @)akn)ss)s5 o++ortuniti)s5 thr)ats2 4ra7)@ork 4or )va,uatin- th) 4unctiona,ity o4 6RP syst)7s avai,ab,) to Austra,ian SM6s. 3h) 4ocus o4 this study is to d)v),o+ an und)rstandin- o4 th) syst)7s o44)r)d by th) 4iv) ,)adinv)ndorsBSAP, :rac,), P)o+,)so4t, J.D. 6d@ards and Baan. 3his +rovid)s not on,y a co7+arison o4 th) 6RP +roducts o44)r)d by 4iv) ,)adin- v)ndors, but a,so +rovid)s a nor7ativ) 4ra7)@ork that can b) us)d to ass)ss +acka-)s o44)r)d by oth)r v)ndors. Aurth)r, th) r),ativ) str)n-ths, @)akn)ss)s, o++ortuniti)s and thr)ats o4 this 4unctiona,ity +rovid) SM6 d)cision 7ak)rs @ith a 4ra7)@ork 4or choosin- and i7+,)7)ntinth) syst)7 that is b)st 4or th)ir busin)ss. &ssess'ent Ass)ss7)nt +)rtains to Cud-inth) qua,ity or @orth o4 a c)rtain as+)ct or obC)ct. In our study, ass)ss7)nt @i,, b) conduct)d usin- a 7ana-)7)nt too, kno@n as a SF:3 ana,ysis. SF:3 ana,ysis is a @id),y us)d 4ra7)@ork 4or or-ani8in- and uti,i8in- th) in4or7ation -ain)d in ana,y8ina co7+,)( syst)7 and its )nviron7)nt 0Ar)n8),, !""'2. It is a -)n)ra, too, d)si-n)d to b) us)d in th) +r),i7inary sta-)s o4 d)cision 7akin- and as a +r)cursor to strat)-ic +,annin- 0Hossain ; Shakir, /$$!2. Aor th) +ur+os) o4 this study, a SF:3 ana,ysis is d)4in)d as an )va,uation o4 both th) int)rna, str)n-ths and @)akn)ss)s and associat)d )nviron7)nta, o++ortuniti)s and thr)ats o4 6RP so4t@ar) +acka-)s on o44)r to Austra,ian SM6s. A SF:3 ana,ysis is th)r)4or) a too, @hich +rovid)s an ov)ra,, +ictur) o4 both th) +r)s)nt 4unctiona,ity and th) 4utur) t)nd)ncy o4 )ach 6RP so4t@ar) +acka-). It r),at)s v)ndor o44)rin-s and 7ark)t n))ds in a @ay that -iv)s th) b)st und)rstandin- o4 th) )(t)rna, 4actors, thr)ats and o++ortuniti)s, cou+,)d @ith an int)rna, )(a7ination o4 str)n-ths and @)akn)ss)s o4 th) so4t@ar). ERP 6nt)r+ris) r)sourc) +,annin06RP2 syst)7s ar) +ot)ntia,,y ,ar-) and co7+,)( in4or7ation syst)7s. 6RP is a strat)-ic us) o4 co7+utin- and co77unications hard@ar) and so4t@ar) to ,)v)ra-) t)chno,o-y in ord)r to -ain co7+)titiv) advanta-) and incr)as)d +roductivity. 6RP int)-rat)s a co7+anyKs busin)ss +roc)ss)s and
DEFINITIO NS OF THE CONCEPTS USED IN
)(istinco7+utinsyst)7s into a uni4or7 s)t o4 busin)ss a++,ications. It invo,v)s r))n-in))rinth) @ay an or-ani8ation 4unctions in ord)r to 7ak) it 7or) )44ici)nt, auto7at)d and cost )44)ctiv). Gen"ors In this study,
v)ndor r)4)rs to a ,ar-) so4t@ar) d)v),o+7)nt co7+any. 3h)s) co7+ani)s a,so und)rtak) a substantia, a7ount o4 7ark)tin-, r)s)arch and d)v),o+7)nt, su++ort, sa,)s and trainin- in ord)r to back th)ir 7u,ti5 7i,,ion do,,ar +roducts. 3h) 4iv) v)ndors consid)r)d in this study ar) SAP, :rac,), P)o+,)So4t, J.D. 6d@ards and Baan. 3h)s) ar) th) ,ar-)st +,ay)rs in th) 7ark)t @ith substantia, inv)st7)nt, kno@,)d-) and )(+)ri)nc) in 6RP syst)7s 4or ,ar-) co7+ani)s.
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+unctionalit( Aunctiona,ity is th) cor) o4 this r)+ort. It is @hat th) v)ndors ar) s),,in- and th) SM6s ar) buyin-. It is th) co77odity to b) a++rais)d by th) SF:3 ana,ysis. 4$E 3h) Austra,ian Stock 6(chan-) F)b sit) 0@@@.)7.as(.co7.au2 d)scrib)s SM6s as an un,ist)d )ntity )7+,oyin- b)t@))n ! and /1$ +)o+,). 6AI< d)4in)s an Austra,ian SM6 )(+ort)r as havin- tota, annua, sa,)s ,)ss than AT1$ 7i,,ion, @ith a s7a,, )(+ort)r havin- tota, sa,)s ,)ss than AT1 7i,,ion. 3h) Austra,ian -ov)rn7)nt c,assi4i)s an SM6 as r)turnin- an av)ra-) r)v)nu) o4 AT/1$ 7i,,ion. 3h)r) ar) so7) !$,$$$ SM6s in Austra,ia @ith -ro@th +ot)ntia,, @hich r)+r)s)nts a++ro(i7at),y a T1 bi,,ion 7ark)t. 3h) ai7 o4 this study is to 4ind so7) a,i-n7)nt b)t@))n SM6 n))ds and @hat th) 6RP v)ndors ar) o44)rin-. 3h) SM6 d)cision 7ak)rs hav) so7) +ictur) o4 @hat th)y @ant 4ro7 th) +roduct, th)ir r)quir)7)nts. 3h) 6RP v)ndors a,so hav) so7) data about th) 7ark)t to @hich th)ir +roduct is tar-)t)d. 3h) ov)r,a+ b)t@))n th)s) t@o +)rs+)ctiv)s is th) 4unctiona,ity o4 th) 6RP syst)7. 3his vi)@ o4 th) +rob,)7 ,)ads to a SF:3 in @hich str)n-ths and @)akn)ss)s r)+r)s)nt th) )(t)nt to @hich SM6 n))ds 7atch th) 6RP +roduct o44)r)d by th) v)ndors. :++ortuniti)s and thr)ats ar) r),at)d to th) chan-inbusin)ss conditions, ,)-is,ativ) tr)nds, b)st +ractic) 7od),s and t)chno,o-y chan-)s that 7ay chan-) this +ictur). 3h) n)(t s)ction +rovid)s a discussion o4 thr)) th)or)tica, +)rs+)ctiv)sBcritica, succ)ss 4actor 0<SA2, Coint a++,ication d)si-n 0JAD2 and busin)ss syst)7s +,annin- 0BSP2Band +r)s)nts th) r)asons 4or choosin- th) <SA +)rs+)ctiv). 3h) s)ction th)n +r)s)nts th) th)or)tica, 4ra7)@ork 4ro7 @hich th) conc,usions ar) dra@n.
THEORETICAL FRAMEWOR- FOR THE STUDY

A d)tai,)d d)scri+tion o4 )ach o4 th) thr)) th)or)tica, ass)ss7)nt +)rs+)ctiv)s, JAD 0Coint a++,ication d)v),o+7)nt2, <SA 0critica, succ)ss 4actor2 and BSP 0busin)ss syst)7s +,annin-2, to-)th)r @ith its trad)5o44s, advanta-)s and disadvanta-)s is +r)s)nt)d. A rationa,) 4or th) s),)ction o4 <SA as an ass)ss7)nt choic) 4or und)rstandinth) 4unctiona,ity o4 6RP syst)7s 4or th) SM6s is +rovid)d. J& 1Joint &pplication e!elop'ent2
JAD is a +roc)ss @h)r) d)cisions can b) 7ad) throu-h a s)ri)s o4 hi-h,y structur)d -rou+ 7))tin-s 0Avison, !""/2. 3h)s) 7))tin-s usua,,y tak) +,ac) 4or an )(t)nd)d +)riod o4 ti7) and ar) usua,,y iso,at)d 4ro7 nor7a, 7))tin- +,ac)s. 3h) id)a o4 JAD is to obtain a -)n)ra, -rou+ cons)nsus on various issu)s a44)ctin- a busin)ssIbusin)ss +roC)ct. A JAD -rou+ consists o4 a nu7b)r o4 vari)d ro,)s. 3h)r) is a,@ays a d)cision 7ak)r 0usua,,y so7)on) in )()cutiv) 7ana-)7)nt2, @ho has d)cision57akin- ca+abi,iti)s. 3h) -rou+ a,so consists o4 a 4aci,itator, @ho ,)ads th) JAD s)ssions. 3h) 4aci,itator -)n)ra,,y +oss)ss)s )(c),,)nt co77unication ski,,s, has an und)r5 standin- o4 th) busin)ss and can r)so,v) con4,ict )44)ctiv),y. It is a,so i7+ortant 4or th) 4aci,itator to b) i7+artia, to a,, -rou+ 7)7b)rs, )nsurin- that 7)7b)rs hav) an )qua, o++ortunity to +r)s)nt o+inionsIid)as. 3h) 4aci,itator @i,, b) r)s+onsib,) 4or +,annin- th) s)ssion and to so7) )(t)nt ,)adin- th) oth)r +artici+ants.
-141TEAM FLY
+r)+ar)d and hand)d out +rior to )ach JAD s)ssion. 3his a-)nda shou,d consist o4 an A broad a-)nda o+)nin-, an a-)nda us)rI7ana-)r body and an a-)nda bas) is a,so conc,usion, @hich is 4or7u,at)d chos)n 4or at th) conc,usion o4 th) discussion. In contrast to 7or) 7))tin-. Individua,s @ho ar) +artici+atin- in th) JAD -)n)ra, 4ocus s)ssions 7ust b) s),)ct)d -rou+s th)s) us)rs 7ay ran-) car)4u,,y but a,so unbias)d,y. It is o4 ,itt,) us) choosin- a,, JAD across s)v)ra, 7)7b)rs 4ro7 a +articu,ar ar)a units o4 th) o4 th) busin)ssBthis @ou,d busin)ss. 3his +r)s)nt a bias)d and narro@ )nab,)s co77unication o4 vi)@Bbut it is i7+ortant not to busin)ss ru,)s or s),)ct +)o+,) @ho @ou,d 4ind it +roc)dur)s and di44icu,t to co77unicat). acc)+tanc) or r)C)ction o4 n)@ JAD )ncoura-)s o@n)rshi+ in a +roC)ct by activ),y invo,vinid)as. Aina,,y a us)rs and 7ana-)7)nt in th) scrib)0s2 n))ds to docu7)nt th) d)v),o+7)nt +roc)ss. It is a hi-h5,)v), and quick 7)ans o4 7))tin-s and distribut) a co+y d)v),o+insyst)7s. Aina,,y it o4 a,, th) 7inut)s a,,o@s th) b)n)4its o4 ra+id i77)diat),y to a,, +rototy+in- and 4))dback 4ro7 -rou+ 7)7b)rs th) us)rs. JAD is cost,y on an or-ani8ationKs ti7), )s+)cia,,y 4o,,o@inth) 7))tin-s. 3his is that o4 7ana-)7)nt and )()cutiv) 7ana-)7)nt. 3hr)) to )stab,ish 7o7)ntu7 and to 4iv) days a@ay 4ro7 nor7a, busin)ss o+)rations can b) )nthusias7 4or th) +roC)ct. <AS6 s))n as an unacc)+tab,) ,)v), o4 ti7). Pr)+arations ar) too,s and data i77)ns),y i7+ortantN @ithout 7od),inar) ad)quat) +r)+aration and o4t)n us)d in docu7)ntation. A ,)ad)rshi+ th) +roC)ct @i,, 4ai,. A,so it @i,, o4t)n +rov) di44icu,t scrib) o4t)n to sch)du,) )v)ryon) to an ,ias)s @ith IS train)d sta44 @ho a++ro+riat) ti7), i.)., )v)ryon) b)in- ab,) to att)nd )v)ry ar) +r)s)nt 7))tin-. durinth) discussion but o4t)n do not voic) th)ir o+inions. C4+s 1Critical 4uccess +actors2
Mana-)rs o4t)n us) <SAs to 3h) JAD s)ssion )(+,icit,y id)nti4y and stat) th) k)y ),)7)nts r)quir)d 4or 7ust b) h),d th) succ)ss o4 th)ir busin)ss so7)@h)r) in o+)ration. 3h)r) is a,so an iso,ation 4ro7 nor7a, busin)ss a++ar)nt kno@,)d-) -a+ activity that can b)t@))n th) <SAs and its d)4inition in r),ation to th) co77on,y b) a industry ty+)s and busin)ss caus) o4 str)ss o+)rations. An inv)sti-ation 4or us)rs or o4 th) )(istin- ,it)ratur) 7ana-)rs. D)tai,)d a-)ndas su--)sts that <SAs ar) th) s7a,, nu7b)r o4 )asi,y shou,d b) id)nti4iab,) o+)rationa, -oa,s
sha+)d by th) industry, th) 4ir7, th) 7ana-)r, and th) )nviron7)nt that assur)s th) succ)ss o4 an or-ani8ation 0Laudon ; Laudon, !""&2. Rockart 0!"&/2 and Rockart and Scott 0!"&G2 ar-u) that <SAs ar) th) o+)rationa, -oa,s o4 a 4ir7 and th) attain7)nt o4 th)s) -oa,s @i,, assur) th) succ)ss4u, o+)ration. <SAs can a,so b) d)4in)d as thos) 4)@ k)y ar)as in @hich thin-s 7ust b) corr)ct in ord)r 4or th) 4ir7 to r)7ain co7+)titiv) 0N)u7ann, !""G2. Accordin- to th) 7ost @id),y us)d <SA t)chniqu) su--)st)d by Rockart 0!"&/2,
it is )vid)nt that th) us)4u,n)ss and sco+) o4 this 4ra7)@ork d)+)nd on th) subC)ctiv) abi,ity, sty,), and +)rs+)ctiv) o4 th) )()cutiv)s. 3h) sha+in- o4 th) <SAs can b) s))n 4ro7 4our vi)@+oints 1. can b) sha+)d by th) industry and its structura, chan-)sN 2. th) 4ir7Ks o+)rationa, strat)-i)s and chan-)s in th) +roductsIs)r vic)s o44)r)dN 3. th) 7ana-)r and hisIh)r +)rc)+tions to@ards th) succ)ss 4actors o4 a 4ir7N and, 4. chan-)s in )nviron7)nt @ith r)-ard to t)chno,o-y, co7+ut)r HF and SF, oth)r )(t)rna, 4actors ,ik) -ov)rn7)nt r)-u,ation, chan-)s in th) +o,icy.
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addition d)v),o+ina++ro+riat) docu7)ntation <SA is r)c)ivin- and r)conci,in- o+inions 4ro7 di44)r)nt 7ana-)7)nt ,)v),s consid)rab,) 7ay b) di44icu,t @ithout +rior att)ntion 4ro7 both acad)7ics und)r5 standin- o4 a +roC)ctKs 4unctionin-. 3h)r) is a,so a and 7ana-)rs. +roc)ss o4 )ducation @h)r) 3h) th) 7ana-)r 7ust b) 7ad) )nviron7)nta, unc)rtainty and a@ar) o4 th) i7+ortanc) o4 th) critica, succ)ss 4actors 4,oodin- o4 th) id)nti4i)d and th) n))d to 7ark)t @ith chan-in- HF and 4ocus h)avi,y on th)s) 4actors. SF 7ak) th) 7ana-)rKs /4P 1/usiness 4(ste's inv)st7)nt Planning2 d)cisions 7or) co7+,)(. 3h) )44)ctiv)n)ss o4 this R)s)arch by Dani),sK +rovid)s 7)thod is d)+)nd)nt on th) structur) o4 an or-ani8ation. us an )ar,y 4oundation o4 th) 3h)r)4or), BSP is consid)r)d to <SAs 4or a 4ir7. b) )44)ctiv) 4or 4ir7s in @hich th) I3 is 7or) c)ntra,i8)d and Dani),s 0!""G2 d)4inition o4 <SAs has a hi-h i7+act on th) 4ir7 is 4ocusin- on th) 0Ar)n8),, !""'2. #5' ar)as that a co7+any 7ust do It 4ocus)s on a busin)ssK k)y activiti)s and th) syst)7s in ord)r to succ))d. Rockart and data that su++ort th)s) 0!"&/2 )(+and)d activiti)s. It is an it)rativ) th) d)4inition o4 +roc)ss that 7a+s th) data <SAs in a broad)r in th) or-ani8ation into its k)y activiti)s. It is 7ost cont)(t, takinusua,,y a++,i)d @ithin th) )(istinc)ntra,i8)d )nviron7)nts vi)@+oints o4 @h)r) th)r) is a ti-ht,y Dani),s and d)4in)d data archit)ctur) su--)sts that <SAs ar) a ,i7it)d a,r)ady )(istin-. nu7b)r o4 4actors that )nsur) Partici+ants in a BSP succ)ss4u, 7)thodo,o-y inc,ud) th) co7+)titiv) +)r4or7anc) by syst)7s ana,yst and ,oca, th) or-ani8ation i4 7ana-)rs as @),, as 7or) s)nior 7ana-)rs. 3h) syst)7s i7+,)7)nt)d. ana,ystIin4or7ation syst)7s A,thou-h <SA is +ro4)ssiona, us)s th) +,ans that th) 7ana-)rs hav) a 4air,y +r)+ar)d 4or th) IS syst)7 strai-ht4or@ard and d)v),o+s a suitab,) BSP 4ra7)@ork it to su++ort th) strat)-ic +,an. do)s hav) a A ,o-ica, IS d)si-n is d)riv)d 4)@ 4ro7 th) BSP and th)n 7or) disadvanta-)s. t)chnica, ana,ysts ar) brou-ht 3h)r)4or), to in to d)v),o+ a +hysica, data d)v),o+ <SAs syst)7 d)si-n. 3h) BSP is 7ay b) @id)5 d)riv)d 4ro7 strat)-ic, ran-in- and o+)rationa, and 7idd,) ti7)5 7ana-)7)nt +)rs+)ctiv)s. In consu7in-. In its 7ost d)tai,)d sta-)s it
7ay tak) 4ar ,on-)r to d)v),o+ a succ)ss4u, BSP than r)su,tin<SAs. 3h)r) is 7or) o4 a 4ocus on +hysica, d)si-n rath)r than th) actua, in4or7ation syst)7,
7ou,din- th) +hysica, data to an in4or7ation syst)7. D)cision 7akin- is bas)d on thr)) +articu,ar 4unctions, +,annin-, contro, and )()cution 0Anthony, !"%$2. 3h) actua, +roc)ss is an it)rativ) on) @ith continua, 7odi4ications b)in- 7ad) to th) IS syst)7. Ai-ur) ! +rovid)s an ov)ra,, conc)+tua, 7od), 4or th) study.
1 4 3 -
+igure ;: 3h) conc)+tua, 7od), o4 th) study
THE DESIGN OF THE STUDY

<SAs ar) d)v),o+)d 4ro7 SM6 r)quir)7)nts and th) v)ndorsK o44)rin- o4 th) 6RP syst)7sK 4unctiona,ity. In +articu,ar, th) busin)ss 4unctions 4or7 a +art o4 th) 6RP syst)7 as a subs)t o4 thos) r)quir)d or +rovid)d 4or ,ar-)r )nt)r+ris)s. 3h) 7)thodo,o-ica, a++roach us)d h)r) is a trian-u,ation invo,vin- a co7bination o4 qua,itativ) and quantitativ) 7)thods. Int)rvi)@ and qu)stionnair) ar) us)d in this study to co,,)ct data 4ro7 th) 4iv) v)ndors. :+)n5 )nd)d qu)stions ar) us)d 4or th) int)rvi)@.
3h) <SAs id)nti4i)d 4ro7 th) cas) inv)sti-at)d is us)d 4or th) SF:3 ana,ysis to ass)ss th) 4unctiona,ity o44)r)d by th) v)ndors. 3h) st)+s 4or th) r)s)arch +roc)ss ar) as 4o,,o@s
1. Int)rvi)@s @ith th) SM6s and v)ndors to 4ind si( to )i-ht k)y <SAsN 2. <o7bin) r)su,ts o4 St)+s ! and / to d)t)r7in) th) k)y <SA to b) us)d in
th) SF:3 ana,ysisN
3. Ao,,o@5u+ int)rvi)@s @ith th) v)ndorsN and, 4. <onstruct th) SF:3 4ra7)@ork 4ro7 th) r)su,ts o4 St)+ G.
FINDINGS FROM THE CASES INVESTIGATED

3h) 6RP 7ark)t is ,ik) no oth)r so4t@ar) 7ark)t in Austra,ia as th)r) ar) a nu7b)r o4 Austra,ian so4t@ar) co7+ani)s co7+)tin- a-ainst 7aCor 6RP v)ndors. Most r)c)nt,y th) nu7b)r o4 Austra,ian 6RP d)v),o+)rs in th) ,oca, 7ark)t has b))n d)c,inin- and 7or) busin)ss)s )s+)cia,,y, s7a,,5to57)diu75si8)d )nt)r+ris)s 0SM6s2, ar) turnin- to@ards th) ,)adin- ov)rs)as 4ir7s -iv)n th)ir )stab,ish)d c,i)nt bas)s and th)ir broad d)v),o+7)nt and i7+,)7)ntation ski,,s. I7+orts 4ro7 ov)rs)as countri)s 7ak) u+ a++ro(i7at),y 11U o4 th) Austra,ian 6RP 7ark)t. 3h) 4iv) 7aCor so4t@ar) v)ndorsBSAP, :rac,), J.D. 6d@ards, Baan and P)o+,)So4t, ar) cov)r)d in this study.
144-
and 4unctiona, ar)as. SAPKs RI# has no or-ani8ationa, or -)o-ra+hica, boundari)sN 4&P cor+orat) h)adquart)rs, 3h) ,ar-)st co7+any in th) 7anu4acturin- +,ants, sa,)s o44ic)s, and subsidiari)s a,, 6RP 7ark)t is 7)r-) 4or int)-rat)d th) *)r7an 7ana-)7)nt o4 busin)ss co7+any SAP, +roc)ss)s. SAPKs 6RP +rovid)s contro,,inan data ana,ysis +roducts ca,,)d )sti7at)d #$5 #1U o4 th) ,oca, th) Busin)ss In4or7ation Far)hous) 0BIF2. 3ab,) ! 6RP v)ndor 7ark)t and @ith su77ari8)s th) SF:3 4indin-s 4or SAP. an annua, turnov)r o4 a++ro(i7at),y Table ;: The 4-OT of 4&P >S T"# 7i,,ion. It is )sti7at)d that about 1$U o4 th) co7+anyKs r)v)nu)s ar) -)n)rat)d 4ro7 +rovidinso4t@ar) so,utions to th) Austra,ian 7anu4acturins)ctor and is ov)r t@ic) as bias its n)ar)st co7+)titor. SAPKs RI# ov)rco7)s th) ,i7itations o4 traditiona, hi)rarchica, and 4unction5 ori)nt)d structur)s. RI# assists sa,)s and 7at)ria,s +,annin-, +roduction +,annin-, @ar)hous) 7ana-)7)nt, 4inancia, accountin-, and hu7an r)sourc)s 7ana-)7)nt and th)s) ar) a,, int)-rat)d into a @ork 4,o@ o4 busin)ss )v)nts and +roc)ss)s across d)+art7)nts
4-OT Criteria
+in"ings
1 Str)n-ths
SAP has th) ,ar-)st nu7b)r o4 4unctiona, 7odu,)s to choos) 4ro7. 3h)ir 7odu,)s cov)r a vari)ty o4 /$ industri)s. H)nc) a @id) ran-) o4 )(+)rtis) and hi-h,y ada+tab,) so,utions.
2 SAP is
Str)n-thI F)akn)ss
d)v),o+in- @hat 7any consid)r to b) +ost56RP a++,ications as add5ons to th)ir )(istina++,ications. 3his inc,ud)s <RM 0custo7)r r),ations 7ana-)7)nt2, @hich +rovid)s -r)at)r 4,)(ibi,ity and 4i,,s th) -a+ 4or a b)st o4 br))d a++roach.
3h)y hav) th) hi-h)st d)v),o+7)nt and r)s)arch bud-)t o4 any o4 th) 6RP v)ndors.
4 SAP is curr)nt,y
,ookin- at outsourcins)v)ra, N)t5 c)ntric 6RP i7+,)7)ntations via 7ySAP.co7. 3his a,,o@s th) co7+any to avoid t)chnica, 7aint)nanc) and not hav) to r),y on in5hous) ski,,s.
F)akn) ss)s
1 SAPKs
so,utions do not +rovid) so,utions 4or a,, co7+ani)s and c,ai7s that co7+ani)s @ho +rovid) 7or) s+)cia,i8)d so,utions o44)r b)tt)r va,u) 4or 7on)y. contracts ar) o4t)n d),iv)r)d ov)rti7) and ov)r5 bud-)t du) to th) di44icu,ty in
2 SAP
-1
Table ;: The 4-OT of 4&P
4-OT Criteria insta,,i nsuch co7+,) ( syst)7 s in )nt)r+ ris)s.
+in"ings
1 SM6Ks 7ay 4)),

b)si)-)d @ith th) choic) o4 7odu,)s and +ossib,) so,utions. has b))n s,o@ to o44)r co7+act and 7or) r)a,istic so,utions 4or SM6Ks. to@ards
:++ortuniti )s
3hr)ats
2 SAP
3 Lack o4 )(istin4ocus SM6Ks.
4 /$U
o4 n))d)d 4unctiona,i ty is usua,,y 7issin4ro7 th)ir +acka-)s. )5co77)rc), N)t5c)ntric co7+utinthrou-h i7+,)7)ntations o4 DML, ASP, Java. b)st o4 br))d or 7or) co7+act so,utions that ar) 7or)
5 A tr)nd to@ards
6 <o7+)tin-
<usto7 )rs
1 SAPKs
+rinci+a, Austra,ian c,i)nts inc,ud) A7+o, Lubricants, Austra,ia Post, Mayn) Nick,)ss, Mobi, :i,, Lu))ns,and Rai, and 3aron-a Park Eoo.
and r)duc) i /aan o+)ratinco7+,)(ity throu-h th) 3h) s)con us) o4 )nt)r+ris) d bi--)s and Int)rn)t t ov)rs) t)chno,o-i) s. 3h)ir as v)ndo Microso4t5 bas)d )5 r is co77)rc) th) Dutch 065 co7+a 6nt)r+ris) +roduct2 ny Baan, suits @hich co7+ani)s @ith ,)ss has a++ro co7+,)( (i7at F)b busin)ss ),y 'U o4 n))ds and inc,ud)s th) ,oca, 4unctions 7ark) such as s)+arat) t. Si7i,a a++,ications that h),+ r to SAP, co7+ani)s Baan s)t u+ has a F)b5bas)d stron- stor)4ronts, 7anu4 on,in) acturi +rocur)7) nt, and n4ocus +roduct in th) con4i-uratio ,oca, n. 7ark) t and ai7s Baan Su++,y to assist <hain custo So,utions 7)rs cr)at)s a r)s+onsiv) to achi)v and int)ractiv) ) strat) su++,y chain that -ic busin) 7ak)s busin)ss)s ss -ro@t 7or) h, )44ici)nt i7+ro and v) th)r)4or) busin) 7or) ss +ro4itab,). +roc)s 3h)ir s)s, syst)7
d )
F)akn)ss)s cash 4,o@ and 4ocus th) 4inancia, t)a7 on +,annin- and ana,y8in-. :th)r too,s inc,ud) strategic enterprise managemen t, @hich consists o4 4inancia, ana,ysis 0Baan Busin)ss Int),,i-)nc) So,ution2, 4inancia, conso,idation 0Hy+)rion 6nt)r+ris)2 and 4inancia, +,annin0Hy+)rion Pi,,ar2, and cost 7ana-)7)n t, ana,ysis and contro, costs on th) basis o4 it)7s 7anu4actur) d, activiti)s, busin)ss +artn)rs, nu7b)r o4 ord)r ,in)s and 7uch 7or). 3ab,) / su77ari8)s th) SF:3 4indin-s 4or Baan.
Risky 4inancia, +osition. Bann r),i)s h)avi,y on ,oca, +artn)rs in th) 4or7 o4 consu,tants and syst)7s int)-rators to +rovid) i7+,)7)ntation ski,,s. Shi4t to )5co77)rc) and 4ocus on SM6s. 3ak)5u+ o4 )7)r-in- t)chno,o-i)s such as DML. A ,ack o4 7ark)t shar) and 4inancia, stabi,ity. Lar-)r 6RP co7+)titors.
:++ortuniti)s
3hr)ats
<usto7)rs
BaanKs 7ain c,i)nts inc,ud) D),oitt) and 3ouchKs consu,tin- ar7 I<S, @hich has announc)d that it r)c)nt,y had b))n chos)n to su++ort ,oca,i8)d Baan co7+on)nts. :th)rs inc,ud) F)st)rn Po@)r, Po@)r N)@ E)a,and, Fa,k)rKs Ltd. and M)ta, Manu4actur)s Li7it)d.
J% % E",ar"s
>S co7+ani)s contro, a++ro(i7at),y #/U o4 th) ,oca, 6RP 7ark)t, and # out o4 1 v)ndors in our study ar) A7)rican v)ndors and o4 th)7 a,, J.D. 6d@ards has b))n th) 7ost succ)ss4u, at 4ocusin- att)ntion on th) SM6 7ark)t. 3h) co7+any -)n)rat)s a++ro(i7at),y >S T/" 7i,,ion in r)v)nu) 4ro7 its Austra,ian o+)rations. 3h)y ar) th) ,)adin- su++,i)r o4 )5busin)ss so,utions, ai7in- to d),iv)r s+))d and quickn)ss 4or custo7)rs throu-hout th) @or,d and +rovidin- innovativ), 4,)(ib,) so,utions )ss)ntia, in runninco7+,)( and 4ast5 7ovin7u,tinationa, or-ani8ations. Table 9: The 4-OT of /aan 3h)y a,so assist co7+ani)s o4 s7a,,5to5 7)diu7 si8)s 4-OT Criteria in4,u)nc) )(istininv)st7)nts, tak) advanta-) o4 n)@ t)chno,o-i)s, and 7aintain co7+)titiv) Str)n-ths advanta-).
:n)For,d )nab,)s co7+ani)s to 4aci,itat) on,in) sa,)s and s)rvic)s and su++orts th)ir a--r)ssiv) -ro@th strat)-i)s. :n)For,d
-iv)s -r)at)r usa-) o4 custo7)r in4or7ation and -r)at)r or-ani8ation in day5 to5day data, @hich b)tt)r s)rvic)s to@ards J.D.
6d@ardKs c,i)nts. E0 Business, Supply Chain Management,J.D. 6d@ards ca,,s this Colla)orative commerce 0c5co77)rc)2, @hich )nab,)s to d),iv)r it o+)n, co,,aborativ)
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t)chno,o-i)s a,,o@incommunication a7onor-ani8ations, su++,i)rs, and custo7)rs across th) su++,y chain. It )nab,)s streamlined and personali%ed )usiness processes b)t@))n custo7)rs and su++,i)rs and in addition +rovid)s Int)rn)t +rocur)7)nts to custo7)rs and )7+,oy))s. It a,so )nab,)s synchroni%ed planning and e1ecution activities 4or r)a, ti7), as @),, as reacting to constantly changing conditions and eliminates redundant supply chain processes, th)r)by 7a(i7i8in- va,u) in busin)ss5to5 busin)ss )nviron7)nts and cr)atin- a shar)d n)t@ork o4 co77)rc) s)rvic)s.
ord)r )ntry, 4u,4i,,7)nt, s)rvic), and su++ort. J.D. 6d@ards <RM ai7s to -)n)rat) n)@ busin)ss o++ortuniti)s and r)v)nu) +ot)ntia, and a,so to )(t)nd th) su++,y chain to custo7)rs. <no-ledge Management, Ai7s to ca+tur) a,, kinds o4 in4or7ation and turn it into kno@,)d-) to 7ak) +roactiv) d)cisions. ?no@,)d-) 7ana-)7)nt s))ks to ca+tur) in4or7ation into cat)-ori)s so @) ar) ab,) to acc)ss to in4or7ation to co7+ani)sK advanta-). Procurement Solutions,3his ty+) o4 4unctiona,ity o+ti7i8)s busin)ss +roc)ss)s. Aor )(a7+,) co7+ani)s ar) ab,) to tak) advanta-) o4 +r)5 n)-otiat)d discounts @ith su++,i)rs 4or )(+)ns)s such as trav), and r)sourc) +urchas)s. In addition, it can r)duc) ti7)5 consu7in- +hon) and +a+)r5 bas)d qu)ri)s. A,so this +rocur)7)nt so,ution )nab,)s ca,cu,ation o4 va,uab,) data such as cost b)nch7arkin- to 7ak) vita, d)cisions.
Applications Service Provider, Brin-s a host a++,ication s)rv)r @h)r) su++,y chains ar) activ),y ,ink)d and kno@,)d-) is )(chan-)d in r)a, ti7). ASP )nab,)s )nhanc)7)nt in custo7)r r),ationshi+s throu-h t)chno,o-y. A,so it )nab,)s -oods and s)rvic)s to b) )asi,y +rocur)d on,in), and Customer back5o44ic) 4unctiona,ity "elations su++orts 4ront5o44ic) visibi,ity Management, Ai7s to i7+rov) and )nt)r+ris) 7ana-)7)nt. th) custo7)r ,i4) 3ab,) # su77ari8)s th) SF:3 4indin-s 4or J.D. 6d@ards. cyc,)B 4ro7 id)nti4yin+ros+)cts and Table =: The 4-OT of J% % c,osin- sa,)s to E",ar"s +in"ings + ou 4-OT tso 1 J.D. 6d@ardKs Criteria ur +roducts ar) c) Str)n-ths v)ry 4,)(ib,) rs sinc) th)ir
ar) co7+)t )nt @ith J.D. 6d@ard s t)chno, o-y and can +)r4or 7a si-ni4ic ant +art o4 insta,,a tion o4 7aint) nanc) )(+)rti s) in th) 6RP syst)7 . 3his r)duc) s th) +ossibi, ity o4 in5 hous) sta44 disa-r) )7)nts and )nsur) s th) s),)cti on, i7+,)7 )ntatio n and 7aint) nanc) run 7or) s7ooth ,y.
)5busin)ss sid)s o4 6RP. It s))7s to b) th) ,)adinv)ndor in this 4i),d. <urr)nt,y it has ov)r !,$$$ B/B, )5 co77)rc), and F)b5)nab,)d 7odu,)sIa++,ic ations.
J.D. 6d@ards has -ood v)ndor su++ort 4ro7 H)@,)tt Packard, on) o4 th) 7ain
2 J.D.
6d@ar dsK tr)nd has b))n to@ard s th) )5 co77 )rc),
Table =: The 4-OT of J% % E",ar"s

4-OT Criteria
+in"ings hard@a r) su++,i) rs 4or 6RP syst)7 s.
F)akn)ss)s
1 J.D.
:++ortuniti)s
3hr)ats
6d@ar ds do)s +rovid ) co)(ist )nc) t)chno ,o-y that a,,o@s o,d and n)@ +roduc ts to run to-)th )r 4ro7 co77 on sin-,) databa s). 6d@ar ds has narro@ industr y cov)ra -) @h)n co7+a r)d to a v)ndor ,ik) SAP. J.D. 6d@ar ds c,ai7s )(+)rti s) in on,y
7 an u4 ac tu rin an d di str ib uti on I,o -i sti cs.
3 <u
2 J.D.
st o 7 )r s n) )d to in st a,, th ) v) nd orK s -r )) n sc r) )n a+ +,i ca tio ns on to + o4 th ) : n) F or,
d suit).
4 :
n ) F o r , d c a n u s ) u + n ) t @ o r k r ) s o u r c ) s .
)t ) @i th S A PI : ra c, ) in r) s) ar ch a n d d ) v ), o + 7 ) nt .
y .
8 L
6 <o7bin
5 J.D.
6d@a rds cann ot co7+
ation o4 industr y ,)adinin B/B, )5 co77) rc), )5 busin) ss
7 N)@
t)chno, o-i)s d Qa ,u 7 b a F in )s .
<usto7)r s
1 J.D. 3
6d@ ardK s c,i) nts inc, ud) ?)n @oo d 3ruc ks, Mac k
hav People ) no 4oft @ P)o+, a,s )So4t o is th) b)) ,ar-) n 4oc st o4 usi th) n>S v)nd on th) ors s7 and a,,5 is +,ac) to5 7) d diu s)co 75 nd si8 ov)r )d a,, b)hin 7a rk) d t. SAP 3h) @ith ir "U +ro o4 duc th) ts ,oca, 7ark t)n d )t 0@ith to annu add r)s a, s r)v) )ith nu) )r o4 bus a++r o(i7 in) at),y ss5 s+) >S ci4i T#$ 7i,,io c +ro n2. P)o+, c)s )So4t s)s tar-) or +ar ts 7ain, ticu ,ar y ,ar-) ind ust 5si8) co7+ ry ani)s s)7) 4or nts th)ir . +rod P)o ucts ho@) +,) So4 v)r, t th)y
&
P )
acc)ss r),)vant in4or7ation 4ro7 accountin-, hu7an r)sourc)s to busin)ss int),,i-)nc) a++,ications. 3h) su++,y chain 7ana-)7)nt 7odu,) inc,ud)s S<P +rovid)s critica, in4or7ation on 4or)cast d)7ands bas)d on +r)vious in4or7ation and in+ut 4ro7 )7+,oy))s, su++,i)rs, and custo7)rs. A,so in P)o+,)So4tKs S<M, 7at)ria, 7ana-)7)nt, str)a7,in)d +roc)ss)s to ),i7inat) @ast)d ti7) and b) 7or) cost )44)ctiv). Manu4acturinso,utions, a,,o@s busin)ss5 to5 busin)ss co,,aboration, +roduct ,i4) cyc,) 7ana-)7)nt, and continuous qua,ity i7+rov)7)nt. Fith an o+)n archit)ctur) th) 7anu4acturinTable A: The 4-OT of +,at4or7s )nab,) People4oft c,i)nts to ada+t +
4-OT Criteria
a++,ications s+)ci4ic to th)ir busin)ss 0i.)., 4,)(ib,) and i7+rov)s o+)rationa, +)r4or7anc) and incr)as)s custo7)r satis4action2. P)o+,)So4t & <RM is th) on,y <RM so,ution 4or )nt)r+ris) r),ationshi+ 7ana-)7)nt 4ro7 custo7)r to )7+,oy)) to su++,i)r. It )nab,)s on) to )ncoura-) custo7)r ,oya,ty, 7a(i7i8) custo7)r acquisition )44orts and r)tain th)7 4or th) ,on- t)r7. 4inancials,<ontains a 4a7i,y o4 4inancia, a++,ications @ith acc)ss to th) Int)rn)t, -ivincusto7)rs, )7+,oy))s, and su++,i)rs univ)rsa, acc)ss to r),)vant in4or7ation. Ainancia, 7ana-)7)nt auto7at)s and synchroni8)s th) )ntir) 7on)y5 7ana-)7)nt chain o4 an )nt)r+ris). Fith th) us) o4 th) Int)rn)t, data can b) ca+tur)d and +roc)ss)d to )nsur) that data can b) ana,y8)d in 7u,ti+,) @ays to i7+rov) busin)ss d)cisions. ProC)ct 7ana-)7)nt h),+s 7ana-) Cob r)sourc)s across 7u,ti+,) sit)s, countri)s, and ,an-ua-)s, can track 7at)ria,s and ,abor to stay on ti7) and on bud-)t and +rovid)s a vi)@ o4 +roC)ct status to r)s+ond quick,y @h)n issu)s aris). 3r)asury 7ana-)7)nt can contro, cor) tr)asury o+)rations, 7))tinth) chan-inbusin)ss d)7ands o4 int)rnationa, or-ani8ations. 3ab,) G su77ari8)s th) SF:3 4indin-s 4or P)o+,)So4t.
1 2
3 S
B M .
Str)n-ths
3 3
h ) 4 a s t
F)akn)ss)s
)st5 -ro@i n6RP co7+a ny ov)r th) +ast s)v)ra , y)ars.
6RP syst)7s.
7 <urr)nt,y
und)4in)d strat)-y 4or )5 co77)r)c), B/B and in 4utur) dir)ctions o4 syst)7s.
8 Its
4 Hi-h
4,)(ib i,ity in outso urcin - and )(t)r na, consu ,tants train) d in P)o+, )So4t t)chn o,o-y .
7anu4acturinso4t@ar) has not b))n as
5 Fid)
vari)ty o4 a++,ica tions. siv) 7ark)t in+ro-ra 7s inc,udi no44)rin - Baan custo7 )rs T!$$,$ $$ cr)dit to s@itch to P)o+,) So4t and us) th)ir
6 A--r)s
-150-
Table A: The 4-OT of People4oft +i 4-OT Criteria n 2 "i n :++ortuniti)s g s y) t r) ad i,y ) 7 br ac )d by Au str a,i a in du st ry.
3ak)5u+ o4 )7)r-in t)chno,o -i)s such as DML. buyinout o4 BaanKs as @),, as oth)r 6RP custo7 )rs.
3hr)ats
3 3h)
<usto7)rs
1 S
h i4 t t o ) 5 c o 7 7 ) r c ) a n d S M 6 4 o c u s .
:th)r v)ndors b)atinth)7 to th) +unch in th) SM6, )5 co77)rc ) and B/B 7ark)t.
5 In
4inancia, +osition, co7+ar)d to :rac,) or SAP. tKs custo7)r s inc,ud) <o,)s My)r, F)st)rn Austra,ian D)+art7) nt o4 6ducation and John Aair4a( Ho,din-s.
6 P)o+,)So4
) Oracle :rac, S y
s t ) 7
s Austra,ia Ltd. is on) o4 th) ,ar-)st co7+ani)s
su++, yint)chn o,o-ic a, so,uti ons 4or in4or 7atio n 7ana -)7) nt to busin )ss, indus try and -ov)r n7)n t in th)ir r)-io n. :rac, ) Austr a,asia has b))n in o+)ra tion sinc) !"&1 and )7+, oys about !,$'$ +)o+, ) in Austr a,asia . In Austr a,asia , :rac, ) +rovi d)s ov)r !$U o4 th) 4inan cia, 7ana -)7) nt a++,ic ation
s a n d i s o n ) o 4 t h ) 4 i r s t 7 a C o r s o 4 t @ a r ) c o 7 + a n i ) s t o s u + + , y s o
4 t @ a r ) + r o d u c t s o v ) r t h ) I n t ) r n ) t 4 o r d ) v ) , o + ) r s a n d ) n d u s ) r s .
:rac,)&i )nab,)s co7+ani)s to bui,d Int)rn)t kno@5ho@ a++,ications, @hich a,,o@s ,o@)r costs, can )nhanc) custo7)r and su++,i)r int)raction and +rovid)s -,oba, in4or7ation acc)ss across +,at4or7s and across th) )nt)r+ris). :rac,)Ks )5 co77)rc) 4aci,itat)s customer loyalty, co,,)cts custo7)r in4or7ation throu-h th) Int)rn)t, and )nab,)s acc)ss across a,, co77unications chann),s. ItKs a,so hi-h,y sca,ab,), r),iab,) and d)si-n)d to hand,) th) incr)as) in transaction vo,u7)s as @),, as co7+,)( custo7)r5su++ort r)quir)7)nts. Aro7 customer interaction via th) Int)rn)t, co7+ani)s ar) 7or) ab,) to und)rstand custo7)r +r)4)r)nc)s and n))ds. Int)-ratin- @ith :rac,)Ks )5 co77)rc) a++,ications has an advanta-) o4 int)ractin- @ith 4ront5 and back5 o44ic) a++,ications and a,,o@inacc)ss to a,, chann),s to acc)ss custo7)r 4))dback and i7+rov) busin)ss )44ici)ncy. It
a,,o@s th) co,,)ctio n o4 va,uab,) custo7) r in4or7a tion and us)s it to cr)at) custo7) r kno@,)d -) and tar-)t) d sa,)s, 7ark)ti n- and oth)r o++ortu niti)s ov)r th) Int)rn)t or across custo7) r co77u nication s chann),
s . : r a c , ) K s S u + + , y < h a i n c o n s i s t s
o4 or d er m a n a g e m e nt , @ hi ch +r ov id )s a ,in k b) t@ )) n < R M an
d 6RP5)nab,inindustri)s to bui,d an )nd5to5)nd int)-rat)d )nt)r+ris). 3his ,ink su++orts )5 busin)ss 4ro7 initia, to +ros+)ct sa,)s s)rvic) and su++ort as @),, as +rovid)s -,oba, acc)ss and 4aci,itat)s instantan)ous in4or7ation )(chan-) across th) su++,y chain. 3ab,) 1 su77ari8)s th) SF:3 4indin-s 4or :rac,). Table E: The 4-OT of Oracle 4-OT Criteria +in"ings
-151TEAM FLY
Table E: The 4-OT of Oracle
4-OT Criteria Str)n-ths
F)akn)ss)s
:++ortuniti)s
3hr)ats
<usto7)rs
+in"ings s t 1 :rac r o ,) is n th) indu stry s ,)ad o )r 4 and t s+)c @ ia,ist a in r 4ina ) ncia, a++, s icati u ons. + Man + y o4 o th)s r ) t a++, icati a ons n such d as :rac c ,) o Aina 7 ncia, + s a @)r t ) i d)v b ),o+ i )d , s)+a i rat), t y y and ar) @ no@ i b)in t h int) -rat t )d h into ) th)ir i 6RP r suit ). d o 2 :rac 7 ,) i has n
anc) in ,ar-) co77)r cia, databas )s. H)nc) this 7ay 7ak) 4or a s7ooth )r a,, around +acka-) .
3 :rac,
), b)hi nd SAP, has th) ,ar)st and 7ost v)rs ati,) ran) o4 6RP +ack a-)s .
4 Stron4inancia, +osition.
5 3h)
vast 7aCori ty o4 :rac,) Ks 6RP @ork is don) in5 hous) @ith sta44 b)inv)ry 4a7i,i ar
@ith th) +acka-) s.
6 Lack
o4 outso urcinor third5 +arty consu ,tin7)an sa so7) @hat in4,)(i b,) a++ro ach to i7+,) 7)nt ation. s hav) b))n kno@n to b) d),ay) d a4t)r sta44 +oachi n-.
a 7ai n +,a y)r in th) dat aba s) ar) na rath )r tha n th) 6RP ind ustr y.
n t o B / B , ) 5 c o 7 7 ) r c ) a n d ) 5 b u s i n ) s s s o , u t i o n s 4 o r s 7 a , , ) r c o
7+ ani )s.
13S
11 Mo
7 ProC)ct
8 A ,ack o4
v)rsati,) busin)ss +artn)rs.
9 In)(+)ri)n
c) o4 7i-ratin,ar-)5sca,) 6RP syst)7s to SM6s and th) curr)nt non)(ist)n c) o4 s7a,,)r, co7+act b)st o4 br))d +roducts. +)rc)+tio n o4 :rac,) as
no+ o,is ) on dat aba s) +ro duc ts to +ro vid ) th) 7o st r),i ab, ) and co 7+ atib ,) a,,5 aro und 6RP sys t) 7s. h i 4 t i
7 a ,, ) r v ) n d o r s 7 o n o + o ,i si n o n t h ) S M 6 t ) r ri t o r y . disa-r) )7)nts b)t@)) n k)y 7)7b)r s o4 th) co7+an y @ith 6RP custo7)r s inc,ud) Har,)y5 Davidson , AP<,
143h)
12S
15:rac,)Ks
103h)
3riton, AR<:
Prod ? ucts, i
n)tics *rou+.
-152-
CROSS4 ANALYSIS OF THE CASES INVESTIGA TED

An att)7+t has b))n 7ad) in th) +r)vious s)ctions o4 this +a+)r to +rovid) SF:3 4unctiona,ity ass)ss7)nts o4 th) 4iv) 7aCor 6RP v)ndors o44)rin- 6RP +acka-)s to Austra,ian SM6s. S),)ction o4 an 6RP syst)7 4or SM6s in Austra,ia d)+)nds ,ar-),y on th) co7+actn)ss o4 th) +acka-)s, 4,)(ib,) +ricin-, i7+,)7)ntation 7)thodo,o-i)s, and 4unctiona,iti)s. In t)r7s o4 th) 4unctiona,ity, a,thou-h th) 7aCority o4 th) 7odu,)s cov)r th) sa7) ar)as, th)r) is so7) distinction b)t@))n )ach +roduct.
RI#, Baan I= so,ution, :n)For,d, :rac,) !$.$ and P)o+,)So4t &.$B+rovid) basis 7odu,)s to ca+tur) curr)nt and 4utur) n))ds o4 busin)ss r)quir)7)nts. Basic 4unctions such as <RM, S<M, )5 co77)rc), ASP, and 4inancia,s ar) @),,5cov)r)d in )ach +roduct. H)r) ar) so7) di44)r)nc)s that shou,d b) notic)d. $o"ules P)o+,)So4t o44)rs ,i7it)d 7anu4acturin4unctiona,ity, @hi,) BaanKs so4t@ar) has ,i7it)d hu7an r)sourc) ),)7)nts. SAP has a v)ry broad s)t o4 4)atur)s. <nternet solution 3h) ,at)st r),)as) o4 P)o+,)so4t &.$ +rovid)s a R+ur) int)rn)t so,utionS bas)d on H3ML and DML, 7akin- it )asi)r 4or us)rs to custo7i8) th) a++,ication to 7))t th)ir busin)ss n))ds. 3his n)@ Int)rn)t archit)ctur), abandonin- th) o,d c,i)ntIs)rv)r 7od), so that no cod) shou,d r)sid) on th) c,i)nt, )nab,)s th) us)r a++,ication acc)ss 4ro7 any F)b5)nab,)d d)vic). Ho@)v)r, :rac,) F)b us)s a Java5bas)d archit)ctur) that r)quir)s Java on th) c,i)nt. Pac#age collaboration J.D. 6d@ards is th) on,y co7+any that +rovid)s us)rs @ith a @ay o4 co,,aboratin- @ith oth)r )nt)r+ris) +acka-)s to achi)v) a busin)ss obC)ctiv).
+le0ibilit( SAP and J.D. 6d@ards +rovid) th) 7ost 4i'ilarities? iff 4,)(ibi,ity to d)a, @ith th) erences chan-in- n))ds o4 an )nt)r+ris) and to 4i,, th) -a+ 3h) 4iv) v)ndors 4or a b)st o4 br))d a++roach. that @) hav) studi)d +rovid) Range of pac#age :rac,) si7i,ar but and SAP hav) th) ,ar-)st and distinct 6RP 7ost v)rsati,) ran-) o4 6RP so4t@ar) 7odu,)s. +acka-)s in E0pertise SAP and Baan t)r7 o4 cov)r th) sa7) ar)a o4 4unctiona,ity. A,, )(+)rtis), both conc)ntrat) 4iv) +roductsB
on 7anu4acturinkno@,)d-), @hi,) :rac,) s+)cia,i8)s in 4inancia, a++,ications, P)o+,)so4t in hu7an r)sourc)s and J.D. 6@ards in construction and )n-in))rin-. &4P SAP and J.D. 6@ards us) outsourcin4ro7 6DS to su++ort its RI# and H)@,)tt
Packard 4or its :n)For,d, r)s+)ctiv),y. Co''on +actor &nal(sis 3h)r) ar) so7) co77on 4actors that th) 4iv) v)ndors ar) t)ndin- to@ard. =)ndors ar) tar-)tin- to@ard B/B )5 co77)rc). A,, v)ndors ar) o44)rin- <RM )(c)+t J.D. 6d@ards, @ho has d)v),o+)d a +artn)rshi+ @ith th) @or,d ,)ad)r in <RM, Si)b,), inst)ad.
R)a,i8in- th) 4act that i7+,)7)ntation o4 6RP in SM6s is th) 4utur) ar)a o4 -ro@th, a,, 6RP v)ndors ar) 4i-htin- th) +)rc)+tion o4 co7+,)(ity to 4ocus on SM6 custo7)rs. SAP, P)o+,)So4t, :rac,), and Baan a,, hav) 7ad) Rsubstantia, h)ad@ay in d)v),o+in- bund,)d
-153-
+acka-)s and 7)thodo,o -i)s to r)duc) i7+,)7)nt ation cyc,)s, @hich is crucia, 4or succ)ss in that 7ark)t s)-7)nt,S not)d Int)rnation a, Data <or+. in a r)c)nt 6RP 7ark)t r)+ort.
n)@ innovativ) +roducts and hi-h)st )(+)nditur) on r)s)arch out o4 a,, th) 4iv) v)ndors. Ho@)v)r, th) @id) ran-) o4 7odu,)s @ithout any )(istin- 4ocus on SM6s 7ay con4us) SM6sK strat)-ic +,annin-. It i7+,i)s that SAP is 7or) suitab,) 4or ,ar-) co7+ani)s @ho can a44ord th) hi-h i7+,)7)ntation cost. SM6s ,ookin- 4or 7or) s+)cia,i8)d n))ds 7ay consid)r oth)r v)ndors.
Baan has a stron7anu4acturin- 4ocus that is si7i,ar to SAP. Baan I= is ,)ss co7+,)( and 7or) dir)ct)d to th) individua, n))ds o4 th) or-ani8ation. Baan @as su44)rin- 4ro7 s)v)n cons)cutiv) quart)rs o4 ,oss)s, and th) ,ack o4 7ark)t <'plications of shar) and 4inancia, stabi,ity 7ak) it di44icu,t to co7+)t) the +in"ings @ith th) oth)rs. J.D. 6@ards has b))n th) 7ost succ)ss4u, >If at 4ocusin- att)ntion on th) implementation SM6 7ark)t. 3h) co7+any cost comes in s+)nds -r)at car) in th) lo-er -e2ll share s)rvic) and i7+,)7)ntation o4 it7 If it comes in th) +roduct. J.D. 6@ards is higher -e eat it,? +articu,ar,y -ood in +rovidinsaid John Burk), so,utions 4or )5busin)ss and s)nior vic) )5co77)rc). 3h) 7aCor +r)sid)nt at SAP @)akn)ss o4 th) co7+any is A7)rica. SAP th) ,ack o4 r)s)arch and c,ai7s to o44)r th) d)v),o+7)nt +,annin-, @hich ch)a+)st 6RP 7ay caus) 4utur) +rob,)7s. +acka-) 4or th) 7id57ark)t in th) P)o+,)So4t has b))n hit hard @or,d. It has th) 4inancia,,y @ith ,ayo44s and ,ar-)st ran-) o4 7ana-)7)nt chan-)s sinc) 7odu,)s to b) )ar,y ,ast y)ar. 3h) n)@)st chos)n and it r),)as) o4 P)o+,)So4t &.$ @i,, cov)rs /$ b) a critica, +oint to th) industri)s, @hich co7+any. It trans4or7s -iv)s th) P)o+,)So4t %.1 into a 4u,,y custo7)rs th) Int)rn)t5)nab,)d a++,ication b)st 4it to th)ir @ith a n)@ bro@s)r5bas)d busin)ss +roc)ss. us)r int)r4ac). <ov)rinth) It is th) 7ost basic 7odu,)s 4ro7 4,)(ib,) 6RP P)o+,)So4t %.1, P)o+,)So4t +acka-) o44)r)d &.$ striv)s to shar) in Austra,ia. Du) in4or7ation 7or) )asi,y to th) co7+any b)t@))n di44)r)nt )(+)ri)nc) in d)+art7)nts o4 th) oth)r ar)as, SAP or-ani8ation. :rac,) is th) has th) hi-h)st @or,d@id) ,)ad)r in databas) d)v),o+7)nt o4 sa,)s and th) industry ,)ad)r
s+)cia,ist in 4inancia, a++,ications. :rac,) is a,so )(+)ri)nc)d in ,ar-) and co7+,)( so4t@ar) d)v),o+7)nt. 3h) co7+any ho,ds a stron4inancia, +osition. 3h) @id) ran-) o4 7odu,)s it +rovid)s is Cust b)hind SAP.
inv)st7)nt in 6RP r)quir)s a t)chnica, in4rastructur) @ith 4utur) -ro@th d)si-n)d to b) a sca,ab,), r),iab,) co7+utin)nviron7)nt @ith 7a(i7u7 avai,abi,ity, and throu-h+ut on a ti7)5,in) suit)d to th) 6RP i7+,)7)ntation sch)du,). 3h) syst)7 shou,d a,so b) i7+,)7)nt)d quick,y, )44ici)nt,y, on ti7) and on bud-)t and @ith no int)rru+tion to th) busin)ss. <onsu,tation @ith +ro4)ssiona,s on +roC)ct 7ana-)7)nt and v)ndor s),)ction is n)c)ssary. 3his is +articu,ar,y tru) 4or SM6s sinc) 6RP v)ndors hav) a strat)-y to s)rv) th) ,ar-) <'plications for c,i)nts dir)ct,y @hi,st dir)ctinSM6s to th)ir r)s),,)rs or Consultanc( consu,tants. Group 6RP is a ,on-5 t)r7 inv)st7)nt 4or an or-ani8ation that can a44ord th) hi-h cost and ,oni7+,)7)ntation ti7). Succ)ss4u, <onsu,tants shou,d und)rstand th) or-ani8ationKs curr)nt busin)ss +roc)ss)s, ass)ss th) i7+acts o4 int)-ratin- th) syst)7 @ith di44)r)nt v)ndors and d)si-n a so,ution that @i,, 7a(i7i8) th) or-ani8ationKs curr)nt inv)st7)nt and 7ini7i8) th) transition +roc)ss
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@ithin th) ti7) and bud-)t o4 th) or-ani8ation. Fh)n th) busin)ss r)quir)7)nts ar) @),,5 und)rstood, consu,tants shou,d d)si-n a syst)7 )nviron7)nt that 4its into th) +)r4or7anc), ca+acity n))ds and busin)ss continuity +,an. H)nc), th) consu,tants hav) to d)si-n th) n)t@ork @ith th) v)ndor and +)r4or7 ca+acity +,annin- and r)cov)ry strat)-y, syst)7 7ana-)7)nt and o+)ration +roc)dur)s. 3h) consu,tants a,so n))d to incor+orat) )ach co7+on)nt o4 th) syst)7 into th) or-ani8ationKs curr)nt I3 )nviron7)nt and va,idat) th) n)@,y int)-rat)d )nviron7)ntKs 4unctiona,ity and +)r4or7anc).
custo7)rs sti,, 4ound that so7) )ss)ntia, 4unctiona,ity is ,ackin-. Many co7+,ain)d that th) obC)ctiv) o4 th) syst)7 had not b))n d),iv)r)d. 6RP v)ndors ar) b)hind th) ti7) in +rovidin- th) basic too,s to conn)ct th)ir syst)7s to F)b a++,ications in r)a, ti7). It is not about si7+,y +uttin- F)b acc)ss on th) )(istina++,ication. ItKs about brin-into th) F)b th) advanc)d 4unctiona,ity o4 6RP syst)7s brok)n into 7odu,ar +i)c)s, so that s+)ci4ic 4unctions can b) trans4)rr)d to custo7)rs and +artn)rs on th) F)b @ithin th) int)rna, back5)nd syst)7s. :rac,) and SAP ar) th) on,y t@o v)ndors @ho hav) start)d in this ar)a, such as )5 +rocur)7)nt and N)t 7ark)tin-. 3h)r) ar) obvious,y t)chno,o-y issu)s @ith 6RP on,in) acc)ss. A ,ot o4 @ork sti,, has to b) don) to -)t data 4ro7 6RP and oth)r )nt)r+ris) syst)7s int)-rat)d on a F)b s)rv)r. Ho@)v)r, th)r) @i,, b) an i77)diat) +rob,)7 o4 s)curity @h)n an 6RP syst)7 -o)s on,in).
I7+,)7)ntin- an )nt)r+ris) r)sourc)s +,annin06RP2 so,ution 4or SM6s can b) a 7aCor cha,,)n-). It r)quir)s 4,)(ibi,ity 4ro7 both th) c,i)nt co7+any and th) consu,tants. 6RP v)ndors sti,, hav) a hard ti7) insta,,insyst)7s and -)ttin- th)7 to run ri-ht.
So7)ti7)s th) tar-)t dat) 4or s@itchin- on an 6RP syst)7 has b)co7) th) u,ti7at) -oa,, ,)avin- asid) th) busin)ss -oa, that initia,,y drov) th) d)cision to Proble' Concerning ERP i7+,)7)nt th) 6RP syst)7. A,thou-h 6RP striv)s to int)-rat) a,, th) 7aCor +roc)ss)s o4 an or-ani8ation, c)rtain 3h) -oa, o4 6RP is to i7+,)7)nt a syst)7 that su++orts th) busin)ss. =)ndors shou,d avoid d)si-nin- a syst)7 that th) 6RP syst)7 is ca+ab,) o4 +rovidin-, but @hich is
b)yond th) ca+abi,ity o4 th) co7+any to absorb as a routin) +art o4 th) dai,y busin)ss. I7+,)7)ntatio n o4 6RP is o4t)n )(tr)7),y co7+,)(N s)rvic) o4 consu,tants is )(tr)7),y i7+ortant and is )ss)ntia, to a succ)ss4u, s),)ction and 7ana-)7)nt o4 6RP i7+,)7)ntation .
CONCLUSI ON AND FUTURE DIRECTION S
Fithin th) Austra,ian 6RP 7ark)t a++ro(i7at),y 11U o4 th) 7ark)t consists o4 4or)i-n co7+)titors, and o4 th)s), 4iv) 7aCor so4t@ar) v)ndors ar) th) 4ocus o4 our study. 3h)s) 4iv) v)ndors inc,ud) SAP, Baan, J.D. 6d@ards, P)o+,)So4t and :rac,). SAP is th) ,)adinso4t@ar) v)ndorN th)y +rovid) th) ,ar-)st nu7b)r o4 4unctiona, 7odu,)s, cov)rin- 7or) than /$ industri)s, and hav) )(+)rt -uidanc) to h),+ @ith busin)ss trans4or7ation. 3h)y a,so hav) th) hi-h)st r)s)arch and d)v),o+7)nt bud-)tN ho@)v)r, du) to th)ir 7any di44)r)nt +,at4or7s, d)cision 7akin- can b) con4usin-, )s+)cia,,y 4or s7a,,5to57)diu75si8)d busin)ss)s. It is o4t)n not)d that SAP contracts ar) o4t)n ov)rti7) and ov)r5bud-)t. Baan has a stron7anu4acturin- 4ocus and th)y ar) shi4tin- 4ocus to@ards SM6sN ho@)v)r, th)y hav) a risky 4inancia, +osition and ar) in thr)at
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co7+)titors. 4ro7 co7+)titors ,ik) P)o+,)So4t in buyinout th)ir custo7)rs. J.D. 6d@ards is th) on,y co7+any +rovidin- th)ir custo7)rs @ith th) 4r))do7 to choos) th)ir int)rna, and )(t)rna, a++,ications and has -ood v)ndor su++ort 4ro7 @),,5kno@n busin)ss)s such as H)@,)tt Packard. :n) o4 th)ir @)akn)ss)s, ho@)v)r, is that th)y hav) a narro@ industry cov)ra-) and in)44ici)nt r)s)arch and d)v),o+7)nt inv)st7)nt co7+ar)d to co7+)titors such as SAP. P)o+,)So4t su++,i)s 7any ,ar-) Austra,ian cor+orations and -ov)rn7)nt d)+art7)nts. 3h)y hav) a 7or) -)n)ra, a++roach to@ards th)ir 6RP. 3h)ir disadvanta-) is that th)y hav) und)4in)d strat)-i)s 4or th)ir )5 co77)rc) B/B and in th) 4utur) o4 th)ir syst)7s, and th)y ar) s,o@ in -)ttin- a co7+)titiv) advanta-) co7+ar)d to th)ir :rac,) is a ,)ad)r and s+)cia,i8)s in 4inancia, a++,ications, @ith a stronso4t@ar) su++ort and stab,) 4inancia, +osition. 3h)ir i7+,)7)ntation ho@)v)r is so7)@hat in4,)(ib,) and has b))n kno@n to hav) d),ays. 3h)y a,so hav) a ,ack o4 v)rsati,) busin)ss +artn)rs and ar) s))n as in)(+)ri)nc)d in assistin- @ith 6RP syst)7s 4or SM6s. It is @id),y und)rstood that di44)r)nt industri)s and int)r)sts dir)ct co7+ani)s to choos) @hich so4t@ar) v)ndor is b)st 4or th)ir busin)ss. SAP, th) ,)adin- 6RP co7+any, 7ay not a,@ays +rovid) th) 7ost a++ro+riat) 6RP syst)7, but @ith th) a7ount o4 inv)st7)nt in r)s)arch and d)v),o+7)nt and th) @id) vari)ty o4 7odu,)s @ith continuous )(+)rtis) assistanc), it is und)rstandab,) that th)y ar) th) ,)adin- 6RP co7+any o4 today. A nu7b)r o4 i7+ortant t)chno,o-ica,, )cono7ic and ,)-is,ativ) tr)nds @i,, co7) to b)ar on 6RP syst)7s, SM6s and th)ir r),ationshi+ in th) 4utur). SM6 n))ds @i,, ,ik),y )vo,v) @ith chan-inbusin)ss 7od),s, b)st5 +ractic) 7od),s and co7+)tition. 6RP +acka-)s o44)r)d by th) v)ndors @i,, 7ov) @ith t)chno,o-y and +)rha+s attain so7) 7aturity in i7+,)7)ntation and -)n)ra, 4unctiona,ity. <ons)qu)nt,y th) a,i-n7)nt b)t@))n th)s) @i,, chan-). Abov) this rid)s th) 4ra7)@ork on @hich this r)+ort is structur)d. No 7att)r @hat ha++)ns in th) 4utur), th) <SA 7)ans o4 a++raisin- th) situation @i,, r)7ain vita, to und)rstandinth) va,u) o4 co7+,)( 6RP syst)7s. 3h) ,ist o4 <SAs d)v),o+)d in this r)+ort can b) )(+and)d to inc,ud) n)@
4)atur)s and tr)nds. It can s)rv) as a history or cata,o-u) o4 @hat 6RP syst)7s can do 4or SM6s. At any -iv)n ti7), a di44)r)nt subs)t o4 th)s) <SAs 7ay b) th) critica, on)s, th) on)s that 7ak) th) 7ost di44)r)nc). +uture Research irections 3h) )7)r-inn)@ )cono7ic 7od),s around B/B and B/< )5 co77)rc) @i,, incr)as) th) i7+ortanc) o4 6RP syst)7s b)in- co7+,iant @ith and conn)ct)d to
Int)rn)t 7ark)t+,ac)s. Initiativ)s such as that tak)n by SAP @ith th)ir RI# and 7ySAP.co7 syst)7s, bund,inconn)ction to th) :n)For,d 7ark)t+,ac), @i,, ,ik),y +rov) v)ry i7+ortant. 3h) ,ack o4 ski,,)d I3 +ro4)ssiona,s and th) n))d to train oth)r )7+,oy))s to )nab,) th)7 to 7ak) us) o4 th) syst)7 @i,, +r)s)nt a si-ni4icant cha,,)n-). 3his +rob,)7 is not uniqu) to SM6s or 6RP syst)7s but is )7)r-in- 4ro7 ra+id t)chno,o-ica, )vo,ution and th) hi-h costs o4 trainin-. SM6s 7ay 4ind this issu) +articu,ar,y i7+ortant -iv)n th)ir s7a,,)r bud-)ts. 3h) ro,) o4 )(+)rt syst)7s and in5bui,t trainin- @i,, ,ik),y +rov) incr)asin-,y i7+ortant, as @i,, th) n))d to avoid in4or7ation ov)r,oad and sta-nation. 3h) n))d to k))+ 4ocus)d on th) strat)-ic va,u) o4 6RP syst)7s @i,, b)co7) +ara7ount in th) 4ac) o4
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ov)r@h),7ind)cisions about @hich o4 th) ,at)st 4)atur)s to inc,ud). SM6s 7ust stay 4ocus)d on th) r)turn th)y ar) r)c)ivin- 4ro7 th)ir I3 inv)st7)nt in quantitativ) and qua,itativ) t)r7s.
th) ar)as o4 co7+,)(ity 7ana-)7)nt, 7aint)nanc), B/B 7ark)t+,ac)s and B/< su++ort.
=a,uab,) and r),)vant r)s)arch cou,d ,ook at cas) studi)s @ithin s+)ci4ic industri)s. 3his cou,d r)v)a, @hich v)ndor is b)st5suit)d to a -iv)n industry and ho@ @),, )ach +acka-) custo7i8)s across industri)s. 3h)r) is a n))d to ,ook at ho@ @),, )ach +acka-) sca,)s @ith th) co7+any and ho@ 7uch roo7 4or div)rsi4ication o4 busin)ss th)y ,)av) or )nab,). Di44)r)nt i7+,)7)ntation A +,)thora o4 7od),s cou,d b) )(a7in)d. An 4utur) av)nu)s a++raisa,, quantitativ) and 4or r)s)arch ,i) qua,itativ), o4 th) co7+)titiv) @aitin- in this ar)a. 3h)r) is a advanta-) that 6RP syst)7s +rovid) and a cost5b)n)4it n))d to 4urth)r study to hi-h,i-ht @hich qua,i4y SM6 ),)7)nts o4 4unctiona,ity 7ak) n))ds such as i7+,)7)ntation th) 7ost r)v)nu) in @hich industry @ou,d b) o4 )nor7ous strat)-i)s, on5 va,u) to SM6 d)cision 7ak)rs board trainin-, sco+) and si8) o4 and v)ndor +roduct )n-in))rs syst)7. 3h)r) is a,ik). Fhat is +)rha+s 7ost ca,,)d 4or is a n))d 4or r)s)arch a,so a n))d to )(a7in) )(act,y -round)d in cas) studi)s. 3h)r) is an )nor7ous nu7b)r o4 @hat )ach ,ar-),y th)or)tica, as+)cts to b) v)ndor is doin)(+,or)d but th) 7ost va,uab,) to tai,or th)ir syst)7s to th)s) 4utur) r)s)arch @ou,d r)4,)ct on @hat is ha++)nin- in th) 6RP SM6 industry, 7ark)t+,ac)s and r)a, r)quir)7)nts, SM6s. +articu,ar,y in
1 5 7 -
APPENDI, A: PRODUCT FUNCTIONALITY

/aan Pro"uct +unctionalit( CR$ 1custo'er relations 'anage'ent2 N;O Sin-,) +oint o4 acc)ss 4or a,, custo7)r r)cords :rd)r status 4ro7 any +oint o4 custo7)r contact Sa7) in4or7ation throu-h 7u,ti+,) chann),s 4C$ 1suppl( chain 'anage'ent2 N;O :rd)r trackin=)rtica, int)-ration E3business N;O B/B, )5+rocur)7)nt Mark)t+,ac) ,inks, a,,ianc)s, 7)7b)rshi+ Standards, int)ro+)rabi,ity 65tai,inIn4rastructur) 4or /G5 % o+)rations S)curity Insuranc) 3ransaction 7od),s Int)-ration o4 )5 busin)ss and traditiona, 7)ans k))+ costs do@n &4P 1application ser!ice pro!i"er28 outsourcing N;O Host)d syst)7 ).-.,
D D
D D D
D D D
D D D
D D D
D D
D D
D D
D D
D D
D D
D D
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/aan Pro"uct +unctionalit( 7ySAP.co7 4elf34er!ice N;OD F)b5bas)d custo7)r D acc)ss to ord)r status, +roduct su++ort, sa,)s in4or7ation Reporting N;O D Int)rna, 7ana-)ria, 6(t)rna, busin)ss int),,i-)nc), shar)ho,d)r, 7ark)t D in4or7ation /ro,ser3base" -eb access N;O <,i)nt, custo7)r D 67+,oy)), int)rna,B s),45s)rvic), r)+ortin-or#3flo, D auto'ation N;O Busin)ss +roc)ss D r))n-in))rinA++rova,, routin- and contro, auto7ation Tas# orientation N;O Su++ort ,oos),y structur)d activiti)s c)ntrin- on sin-,) task rath)r than +roc)ss 0@ork 4,o@2 Busin)ss +orta,s D A,,ianc)s 4or cont)nt and 4unctiona,ity E$C co'pliance@ 4tan"ar"s N9O Mu,ti,in-ua, su++ort Triangulation N9O Training N98 =O
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/aan Pro"uct +unctionalit( <o7+ut)r5bas)d traininDocu7)ntation Co'ple0it( NCnsource"O
D D
Not ov)r@h),7 SM6 >s)r int)r4ac) I7+,)7)ntation ti7)s Su++ort r)quir)d D Ski,, ,)v), r)quir)d in sta44 us), 7aintain .o loc#3in to single !en"or NCnsource"O Int)ro+)rabi,ity A,,ianc)s, +artn)rshi+s Standards co7+,ianc) ).-., :DB< Product d)+)nd)nc) ).-., :rac,) databas) Open s(ste' NCnsource"O 6vo,v) @ith or-ani8ation and )nviron7)nt 3)chno,o-ica,,y int)ro+)rabi,ity 6cono7ic 7od), B/B, )5tai,in-, ta(ation, r)-u,ation Modu,arity 4uitabilit( NCnsource"O D D D
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Pro"uct +unctionalit( Mana-)7)nt sty,) L)v), o4 4or7a,ity and structur) B)st +ractic)s Geograp hic "istribut ion NCnsour ce"O Su++ort r)-iona, o44ic)s R)7ot) acc)ss 0F)b2 R)-iona, di44)r)nc)s 4pecific function alit( NCnsour ce"O Data 7ininData @ar)housin6(+)rt syst)7s AI, traininD)cision su++ort B)st5o45Br))d <'ple'ent ation strateg( NCnsource" O
Dualit( of !en"or NCnsource"O
6(+)rtis), history SM6 4ocus shar), co7+)tition, stabi,ity
4&P
/aan
J% % E",ar"s
People4oft
Oracle
D D D
D D
D D D
D D D
D D D
D D D D D
D D D D
D D
D D
D D D
APPE NDI, *:
C A N D
IDATE CSF
3h) 4o,,o@inis
a ,ist o4 4actors or di7)nsions that cou,d b) us)d to )va,uat) th) 4unctiona,ity
o4 an 6RP syst)7 o44)r)d to an Austra,i an SM6. Aro7 this ,ist, '5 &
c ri ti c a , s u c c
)ss 4actors 0<SA2 @i,, b) chos)n bas)d on crit)ria to b) d)t)r7in)d -161at a ,at)r sta-) o4 this +roC)ct.
TEAM FLY
6ach 4actor is ,ist)d by th) na7) @) hav) -iv)n it, 4o,,o@)d by r)4)r)nc)s that su++ort its inc,usion in this ,ist and th)n attribut)s that cou,d b) us)d to 7)asur) its +r)s)nc) or R7a-nitud)S in any +articu,ar 6RP i7+,)7)ntation. CR$ 1custo'er relations 'anage'ent2 N;O
S i n , ) + o i n t o 4 a c c ) s s 4 o r a , , c u s
t o 7 ) r r ) c o r d s : r d ) r s t a t u s 4 r o 7 a n y + o i n t o 4 c u s t o 7 ) r c o n
t a c t S a 7 ) i n 4 o r 7 a t i o n t h r o u h 7 u , t i + , ) c h a n n ) , s
r t r a c k i n = ) r t i c a , i n t ) r a t i o n
E3business X!Y B/B, )5+rocur)7)nt

M a r k ) t + , a c ) , i n k s , a ,
4C$ 1suppl( chain 'anage'ent2 X!Y

: r d )
, i a n c ) s , 7 ) 7 b ) r s h i + S t a n d a r d s , i n t ) r o + ) r a b i , i t y
t u r ) 4 o r / G 5 % o + ) r a t i o n s S ) c u r i t y
I n s u r a n c ) 3 r a n s a c t i o n 7 o d
65tai,in I n 4 r a s t r u c
) , s
Int)-ration o4 )5busin)ss and traditiona, 7)ans k))+ Reporting X!Y costs do@n &4P Int)rna, 7ana-)ria, 1application 6(t)rna, busin)ss ser!ice int),,i-)nc), shar)ho,d)r, pro!i"er28 7ark)t in4or7ation outsourcing X!Y /ro,ser base" -eb access X!Y Host)d syst)7 ).-., 7ySAP.co7 <,i)nt, custo7)r 67+,oy)), int)rna,Bs),45 4elf3 4er!ice X!Y s)rvic), r)+ortinF ) -or#3flo, auto'ation X!Y b 5 b B a u s s ) i d n c u s t o 7 ) r a c c ) s s t o o r d ) r s t a t u s ,
) s s + r o c ) s s r ) ) n i n ) ) r i n A + +
+roduct su++ort, sa,)s in4or7atio n
r o v a , , r o u t i n a n d c o n t r
o , a u t o 7 a t i o n
Tas# orientation X!Y Su++ort ,oos),y structur)d activiti)s c)ntrin- on sin-,) task rath)r than +roc)ss 0@ork 4,o@2 Busin)ss +orta,s
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X>nsourc)dY A,,ianc)s 4or cont)nt and 4unctiona,ity E$C co'pliance@ 4tan"ar"s X/Y Mu,ti,in-ua, su++ort Triangulation X/Y Training X/, #Y
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Co'ple0it(
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6con o7ic 7od), B/B, )5 tai,in-, ta(atio n, r)-u,at ion Mod u,arity 4uitabilit( X>nsourc)dY
Mana-)7)nt sty,) L ) v ) , o 4 4 o r 7 a , i t y a n d s t r u c t u r ) B ) s t + r a c t i c ) s Geographic "istribution X>nsourc)dY

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6 ( + ) r t s y
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Sons. Avison, D. 6. 0!""/2. <'ple'entation Information Systems evelopment' A ata)ase strateg( Approach 0s)cond X>nsourc)dY )dition2.:(4ord B,ack@),, Sci)nti4ic Pub,ications. Dualit( of Dani),s, <. 0!""G2. !en"or Information Technology' The X>nsourc)dY Management Challenge. R)adin-, MA Addison5F)s),y. Ar)n8),, <. 0!""'2. 6 Management of Information ( Technology 0s)cond + )dition2. <ours) 3)chno,o-y. ) *o7), A. 0/$$$2. Aair trad) or r 4ou,Z B"., //0/&2, "!5"G. t Hossain, L. and Shakir, M. i 0/$$!2. SIA 4or s und)rstandinth) 6RP ) s),)ction in N)@ E)a,and. , Journal of ecision Systems,Special Issue h on E"P and Their Impact i on ecision Ma+ing, !$. s Paris H6R6M6S Sci)nc) t Pub,ications. o ?,)ind,, B. 0/$$$2. r <o7+)titiv) dyna7ics and y n)@ busin)ss 7od),s 4or SM6s in th) virtua, 7ark)t+,ac). Journal of S evelopmental M Entrepreneurship, A+ri,, 6 10!2, %#5&1. ?ra4t, <. L. 0!"""2. 6()cutiv) 6RP. 4 Profit Maga%ine. :rac,) o Pub,ishinc Laudon, ?. and Laudon, J. u 0!""&2. Management s Information systems' #eAinancia, Approaches to !rgani%ation +osition and Technology 04i4th )dition2. 7ark)t shar), Mac7i,,an Pub,ishin- <o. Ltd. co7+)tition, N)u7ann, S. 0!""G2. Strategic stabi,ity Information Systems' Competition through Information Technologies. REFERENCE Mac7i,,an <o,,)-) Pub,ishin<o7+any, Inc. S Ri)7)nschn)id)r, <. ?. and Mykytyn, P. P., Jr. 0/$$$2. Anthony, R. Fhat s7a,, busin)ss 0!"%$2. )()cutiv)s hav) ,)arn)d about Planning and 7ana-in- in4or7ation Control t)chno,o-y. Information and Systems' A Management, #%, /1%5/'". 4rame-or+ Rockart, J. 0!"&/2. 3h) for Analysis. chan-in- ro,) o4 th) N)@ Qork in4or7ation syst)7s John Fi,)y ;
)()cutiv) A critica, succ)ss 4actors +)rs+)ctiv). Sloan Management "evie-, Aa,,, !5/G. Rochart, J. and Scott, M. 0!"&G2. I7+,ications o4 chan-)s in in4or7ation t)chno,o-y 4or cor+orat) strat)-y. Interfaces, !G0!2, &G5"1. St)d7an, <. 0!"""2. J.D. 6d@ards 6RP not a,, in on). Computer .orld, ##, /!. : t h ) r S o u r c ) s @ @ @ . o r a c , ) . c o 7 @ @ @ . +
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1 6 5-
Chapter K<: 4electi ng an" <'ple' enting an ERP 4(ste' at &li'ent os Peru
OVERVIEW
7aCor conc)rns durinth) 7id5 !""$s, inc,udin- incr)asinco7+)tition, in)44ici)ncy o4 busin)ss +roc)ss)s, and ,ack o4 ti7),y and accurat) in4or7ation. 3o addr)ss th)s) conc)rns A,i7)ntos P)ru ,aunch)d s)v)ra, +roC)cts, on) o4 @hich invo,v)d th) i7+,)7)ntation o4 an 6RP syst)7. 3h) cas) )(+,ains th) crit)ria us)d to )va,uat) and s),)ct th) syst)7, as @),, as th) 7ain issu)s and +rob,)7s that aros) durinth) i7+,)7)ntation +roc)ss. Mor) s+)ci4ica,,y, th) cas) 4ocus)s u+on a s)t o4 i7+,)7)ntation 4actors, such as to+ 7ana-)7)nt su++ort, us)r +artici+ation, and +roC)ct 7ana-)7)nt.
X!Y A,, individua, Aina,,y, th) cas) na7)s, co7+any conc,ud)s @ith a na7)s, and branddiscussion o4 th) na7)s hav) b))n b)n)4its obtain)d 4ro7 th) dis-uis)d. introduction o4 th) J% $artin syst)7 as @),, as 4antana8 th) n)@ Jai'e or-ani8ationa, 4eri"a3 cha,,)n-)s. .ishi'ura8 E""ie $orris3 &barca an" *AC-GROUND Ricar"o ia*3/aron A,i7)ntos P)ru 7anu4actur)s 6SAN, P)ru and s),,s 4ood +roducts 4or <o+yri-ht . consu7+tion inc,udin/$$/, Id)a *rou+ cooki)s, nona,coho,ic Pub,ishin-. b)v)ra-)s, bak)ry +roducts, 3h) cas) in-r)di)nts 4or br)ad 7akin-. d)scrib)s th) It is a subsidiary o4 i7+,)7)ntation Int)rnationa, Aood *rou+ +roc)ss o4 an 6RP 0IA*2, on) o4 th) @or,dKs 0)nt)r+ris) ,ar-)st 4ood +roducts r)sourc) 7anu4actur)rs and s),,)rs. In +,annin-2 syst)7 P)ru, its ,)adin- brands ar) at A,i7)ntos 3urtora, R)a,, 3ako and P)ru, on) o4 th) R)7o. ,ar-)st 4oods I4( has b))n +r)s)nt in th) 7anu4acturinP)ruvian 7ark)t sinc) !"#", co7+ani)s in P)ru. It discuss)s @ith th) o+)nin- o4 its th) or-ani8ationKs subsidiary R)a, P)ruana Inc.
and s@))ts, y)ast and oth)r dir)ct or indir)ct hu7an
In !""#, as +art o4 a nu7b)r o4 7)r-)rs and acquisitions o4 4ood +roduc)rs in Latin A7)rica, I4( bou-ht th) 6str),,a S.A. cooki) 7ak)r, th) th)n ,)ad)r in th) P)ruvian 7ark)t. 3h) 7)r-)r o4 th) P)ruvian subsidiari)s start)d o+)ratin- as Alimentos Peru7 Alimentos Peru has t@o +roduction
+,ants. 3h) 4irst on) is ,ocat)d in Li7a and conc)ntrat)s on cooki) and candy 7anu4acturin-. 3h) oth)r is ,ocat)d in <a,,ao and is d)vot)d to +roducinin+uts 4or br)ad 7akin- and +o@d)r drinks.
Alimentos Peru has 4ac)d a ,on- 4a,, in d)7and as @),, as int)ns) ,oca, and 4or)i-n co7+)tition. Its )()cutiv)s @)r) a@ar) that th)ir succ)ss hin-)d on introducin- a co7+r)h)nsiv) strat)-y that @ou,d co7+ris) satis4yin- th) consu7)rsK )(+)ctations and n))ds, as @),, as r)ducin- o+)ratincosts. By th) 7id5!""$s, th) co7+any
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th)ir shar) o4 th) ,oca, 7ark)t 4ro7 /U to !$U. introduc )d n)@ 7anu4ac turint)chniqu )s and ,aunch)d a nu7b)r o4 +roC)cts to 4or7a,i8 ), r)structu r) and standard i8) its +roc)ss) s. 3o 4ac) th) n)@ co7+)titiv) )nviron7)nt, Alimentos Peru chan-)d th) +acka-inin 7ost o4 its Estrella +roducts to 7ak) th)7 7or) attractiv) and i7+rov) th)ir +r)s)rvation. It introduc)d n)@ +roducts, inc,udinChocosonrisa and Mar6uinos, as @),, as a n)@ ,in) o4 i7+ort)d cooki)s that ar) ,)ad)rs in th) int)rnationa, 7ark)t. B,anca Luino, h)ad o4 +roduct ,in)s at Alimentos Peru, to,d a ,oca, +ub,ication R.e have introduced innovations in our line products at least once a year. #o- the -inners -ill )e those -ho can introduce more innovations in a Its ,)adin+roduction ,in) is mar+et -here the consumer ma+es the final decision.S cooki) 7akin-, th) sourc) o4 th) co7+anyKs ,ar-)st In !""', Alimentos Peru2s shar) 0G1U2 shar) o4 in th) cooki) 7ark)t )(c))d)d #$U and its Estrella brand +ro4its. >nti, !""G, th) cooki) na7) r)7ain)d as th) ,oca, ,)ad)r @ith /#U 7ark)t shar). 7ark)t @as Ho@)v)r, th) consortiu7 rath)r du,, and Atlantic r)ach)d th) sa7) ,)d by ,oca, brands. Ho@)v)r, 7ark)t shar) a4t)r buyinMolinos, 7anu4actur)r o4 in !""1, (loria, /as and ucal. substantia, chan-)s start)d Mor)ov)r, a,thou-h ai7)d at a to occur. 3h) di44)r)nt 7ark)t s)-7)nt, acquisition o4 Empresa (alletera, throu-h its Molinos by th) (rano and Pepis brandna7)s, Atlantic cov)r)d ov)r /!U o4 th) consortiu7 and 7ark)t. 3his 4ir7Ks strat)-y @as th) arriva, o4 a to s),, cooki)s at a ,o@)r +ric) n)@ co7+)titorB than its co7+)titors. <hi,)(, a <hi,)an co7+anyB 3h) b)v)ra-)s and d)ss)rts introduc)d a n)@ 7ark)t, a ,in) that cr)at)s dyna7ic to th) /"U o4 Alimentos Peru2s 7ark)t. r)v)nu)s, a,so su44)r)d Aurth)r7or), chan-)s du) to int)rnationa, i7+ort)d cooki)s co7+)tition. 3h) co7+any start)d to arriv) u+-rad)d th) +acka-in- o4 its 4ro7 abroad Ta+o ,in) o4 drink +o@d)rs to inc,udin- thos) 7))t consu7)r +r)4)r)nc)s distribut)d by and introduc)d a ,ar-)r vari)ty Alimentos Peru, o4 4,avors. "emo b)v)ra-)s !rval, "ose and @)nt throu-h a nu7b)r o4 Crasp. I7+ort)d innovations inc,udin- a n)@ cooki)s incr)as)d ran-) o4 4,avors and a r)ady5
to5drink ,in) o4 +roducts ,aunch)d at th) )nd o4 !""1.
*ro@in- consu7)r +r)4)r)nc) 4or su-ar,)ss +roducts so,d at a ,o@)r +ric) str)n-th)n)d Ta+o2s +osition a-ainst th) s)7is@))t <ino and Bingo +roducts 4ro7 ASPA Alimentos. In !""', ASPA In th) s@))t +roducts Alimentos @as s)-7)nts, Alimentos Peru2s th) 7ark)t "emo h),d stron- to its '/U ,)ad)r 4or 7ark)t shar) but 4ac)d stron+o@d)r b)v)ra-)s @ith a co7+)tition 4ro7 oth)r brands, inc,udin- ,oca,,y +roduc)d 1#U shar) at inang and 4ructal, a <hi,)an co7+any ,)v),, i7+ort. 4o,,o@)d by Alimentos Peru In its oth)r +roduct ,in)sB @ith #%.!U. Ta+o,Alimentos br)ad57akin- in-r)di)nts, candi)s and choco,at)sB Peru2s brand A,i7)ntos P)ru ros) to th) na7)B@as th) cha,,)n-)s in a si7i,ar 7ann)r ,)ad)r in th) by introducin- n)@ +roducts su-ar,)ss and chan-in- its +acka-in-, b)v)ra-)s 7ark)t s)-7)nt and by i7+rovin- on its @ith !"U o4 th) distribution syst)7. 7ark)t. It 4urth)r b)n)4it)d 4ro7 th) -ro@th A++)ndi( A sho@s th) 4inancia, in th) su-ar,)ss stat)7)nts o4 th) co7+any 4or 7ark)t s)-7)nt. th) +)riod b)t@))n !""G and !""&.
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SETTING THE STAGE

<nfor'ation 4(ste's A4t)r th) 7)r-)r o4 th) P)ruvian subsidiari)s, th) in4or7ation t)chno,o-i)s divisions at A,i7)ntos P)ruKs Li7a and <a,,ao 4actori)s 7)r-)d und)r on) sin-,) 7ana-)r. <ar,os Mont)ro b)ca7) th) syst)7s 7ana-)r in !""G and @as th) s)cond +)rson in char-) in this ar)a a4t)r th) 7)r-)r o4 I4(2s P)ruvian subsidiari)s. Mont)roKs 7ain cha,,)n-) @as to +ut in +,ac) a n)@ in4or7ation syst)7 4or th) co7+any to r)+,ac) o,d syst)7s that @)r) ty+ica,,y 4ra-7)nt)d, du+,icat) and inconsist)nt. At that ti7), th) n)@ I3 division )7+,oy)d !" +)rsons, 7ost,y +ro-ra77)rs, and r)+ort)d to th) ,oca, 4inancia, 7ana-)r >This -as a typical data processing division in the BCGEs style,? says Mont)ro.
at )ach 4aci,ityBthat o+)rat)d at about &$U ca+acity. 6ach @as conn)ct)d to about 1$ t)r7ina,s and P<s o4 varyina-) and brand na7)s, a,, o+)ratin- ind)+)nd)nt,y. 6ach 4actory ran its o@n I3 syst)7s to suit its +)cu,iar n))ds. 3h)r) @)r) 7or) than /$ ind)+)nd)nt syst)7s, inc,udin- t@o +ara,,), syst)7s to +roc)ss +urchas)s, anoth)r t@o to k))+ @ar)hous) r)cords, anoth)r t@o 4or 7anu4acturin-, anoth)r t@o 4or cost and 4inish)d +roduct contro,, and t@o 7or) 4or 7ark)tin-. Aurth)r7or), th)r) @)r) 4iv) syst)7s 4or +ayro,,s t@o 4or ,abor)rs, t@o 4or c,)rica, @ork)rs and on) 4or sta44. Lotus !/# and FordP)r4)ct @)r) th) standard o44ic) so4t@ar) +roducts. 3h) 7ain task at th) I3 division @as 7aint)nanc). Lik)@is), )ach +,ant i7+os)d its o@n crit)ria @h)n -ivincod) nu7b)rs to th)ir in-r)di)nts and 4inish)d +roducts. Aurth)r7or), so7) ar)as @ithin th) sa7) +,ant, 4or instanc), @ar)housin- or 7anu4acturin-, @ou,d us) di44)r)nt cod) 4or th) sa7) 4inish)d +roduct. In Li7a, costin- @as bas)d on th) nu7b)r o4 @ork hours @hi,) in <a,,ao it d)+)nd)d on +roduct @)i-ht.
Litt,) int)-ration o4 o+)rations a,so had an i7+act on th) 4inancia, syst)7. <,osin- o4 accounts at th) )nd o4 )ach 7onth @ou,d tak) 7or) than on) @))k, d)s+it) ,on@orkin- hours 0ov)rti7)2 +ut in by )7+,oy))s. <ost contro,s @)r) hard to i7+,)7)nt as @as d)t)r7inin- @hich +roducts @)r) actua,,y yi),dina +ro4it. Mana-)7)nt r)+orts @)r) +ut to-)th)r 7anua,,y and th)n s)nt to I4(2s o44ic)s in th) >S 3h) 4irst int)-rat)d 3h) co7+any had t@o ASIG$$ accountinsyst)7 @as IBM s)rv)rsBon) introduc)d in January !""1 thanks to an in5hous)
d)v),o+7)nt. By that ti7), th) I3 division had shrunk to s)v)n +)o+,) a4t)r outsourcin+ro-ra77intasks. A,thou-h both 4actori)s @)r) a,r)ady und)r on) sin-,) co7+any, both +,ants continu)d to o+)rat) s)+arat),y and th)ir o+)rations sho@)d th) sa7) ,ack o4 int)-ration that @as a++ar)nt in th)ir in4or7ation syst)7s. Not
on) busin)ss +roc)ss o+)rat)d und)r a standardi8)d 7od),, not )v)n account c,osin- at 7onthKs )nd, inv)ntory contro, or +urchasin-, or in -)n)ra, any o4 hundr)ds o4 activiti)s in th) +roduction +roc)ss. About this issu), <ar,os Mont)ro ho,ds RP)rsonn), @)r) not us)d to 4i,,inin 4or7s, r)cordindata or )(a7inin- th) 7anu4acturin- 4or7u,as 0or r)ci+)s2. In+uts r)quisitions 4or 7anu4acturin- @)r) s)nt casua,,y A++ro(i7at) a7ounts o4 in-r)di)nts @)r) s)nt to +roduction and ,)4tov)rs @)r) r)turn)d to @ar)hous). 3his ,)d to a ,ar-) a7ount o4 shrinka-) and +r)v)nt)d k))+in-ood r)cords on +roduction costs.S
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&li'entos Peru 4trategic <nitiati!es By th) 7id5 !""$s, th) co7+any d)si-n)d its cor+orat) strat)-ic +,an. 3h) -)n)ra, 7ana-)r, 4unctiona, 7ana-)rs and th) co7+anyKs 7ain )()cutiv)s 7)t to d)t)r7in) th) co7+anyKs 7ission and vision, ana,y8) th)ir co7+)titiv) )nviron7)nt and d)t)r7in) th) 7ain strat)-ic actions to tak). As a cons)qu)nc), a nu7b)r o4 +roC)cts @)r) +ro+os)d and assi-n)d to various co7+any )()cutiv)s. 3h) 4o,,o@in- 7ain strat)-ic actions @)r) introduc)d
h th) cor+orat) 7)r-)r, ,)d by 3anya Santist)ban, th) ad7inistratio n and 4inanc) 7ana-)r. 3o d)v),o+ n)@ +roducts and r)or-ani8) th) sa,)s 4orc) and distribution chann),s.
3his task @as assi-n)d to Ar7ando Linar)s, th) 7ark)tin- 7ana-)r.
1 3o introduc) tota,
qua,ity at Alimentos Peru, in char-) o4 Mario N)yra, th) hu7an r)sourc)s h)ad. 3o train +)rsonn), in MRP II t)chniqu)s, co77ission)d to Jor-) Ai-u)roa, th) ,o-istics 7ana-)r. 3o i7+rov) and int)-rat) in4or7ation syst)7s, a r)s+onsibi,ity assi-n)d to <ar,os Mont)ro, th) syst)7s 7ana-)r.
1 3
o c o n c , u d ) @ i t
A4t)r 7)r-inth) 4inancia, and ad7inistration, th) syst)7s, and th) ,o-istics divisions in !""G, in th) y)ars that 4o,,o@)d th) co7+any continu)d to 7)r-) its oth)r ar)as. By y)ar5)nd !""1, +,ant 7ana-)7)nt in Li7a and <a,,ao @as +,ac)d und)r a sin-,) 7anu4acturin- 7ana-)r o44ic). A 4)@ 7onths ,at)r, th) 7ark)tin- 7ana-)rsK o44ic)s ca7) und)r a sin-,) 7ark)tindivision.
A Lua,ity +r)+ar) and +ut in +ractic) a <o77itt)) @as +)rsonn),5trainin- +ro-ra7. s)t u+, h)ad)d by 3rainin- @as 7ain,y dir)ct)d th) hu7an at 7anu4acturin-, ,o-istics r)sourc)s h)ad and 7ark)tin- +)rsonn),, and inc,udininitia,,y throu-h ta,ks and in various task !""' @ith vid)o scr))nin-s. 4orc)s 4or )ach ar)a ,o-istics, A,so in !""', to i7+rov) 7anu4acturin+roduct distribution and +,ants, int)rna, r)s+ons) to custo7)r and 4ina, us)r d)7ands, Alimentos Peru +hysica, distribution. 3h) r)structur)d its sa,)s 4orc). Aro7 a -)o-ra+hica,,y bas)d +ur+os) o4 this syst)7, it 7ov)d to a c,i)nt5 s)tu+ @as to ty+) syst)7. 3h) n)@ id)nti4y and +ro+os) @ays to syst)7 @as +ut in +,ac) in coordination @ith ,oca, i7+rov) su+)r7ark)t chains and +roc)ss)s throu-h Lua,ity a,,o@)d th) co7+any to cut o+)ratincosts and to <irc,)s that incr)as) co7+,ianc) @ith r)7ain)d in +urchas) ord)rs 4ro7 th)s) o+)ration unti, th) )nd o4 !""%. chann),s. In !""1, th) -)n)ra, 7ana-)r hir)d :,iv)r Fi-ht LL<, an int)rnationa, consu,tin- 4ir7 that had cr)at)d th) MRP II t)chniqu)s and a trainins+)cia,ist to Jor-) Ai-u)roa 7ak)s th) 4o,,o@in- co77)nts about this sta-) in th) co7+anyKs )vo,ution RIA* +ut stron- outsid) +r)ssur) on th) -)n)ra, 7ana-)r. A,i7)ntos P)ruKs +)rsonn), sa@ its @ork,oad incr)as) substantia,,y @h)n a s)ri)s o4 +roC)cts @)r) introduc)d
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si7u,tan)ous,y. 3h) +roC)cts @)r) i7+,)7)nt)d throu-h @orkCASE DESCRIPTION t)a7s )ut individuals put a & Pro7ect To <ntro"uce an priority on the ERP 4(ste' team headed )y their immediate 3h) a4or)7)ntion)d cha,,)n-)s )oss7? and +rob,)7s as @),, as
r)+ort to th) corr)s+ondincor+orat) 7ana-)r in =)n)8u),a.
7ana-)7)ntKs n))d to -)t In !""%, I4(ti7),y and r),iab,) in4or7ation d)cid)d to+ro7+t)d th) +roC)ct to c)ntra,i8) i7+rov) th) co7+anyKs +roduction, in4or7ation syst)7s. In this su++,y andr)s+)ct, Mont)ro ho,ds >At distribution meetings )et-een the general o+)rations at itsmanager and line managers, subsidiari)s fre6uent comments -ere =.e around th) @or,ddon2t have timely information2 on a r)-iona,or =Information is very basis, @ith a vi)@e1pensive72? at )stab,ishinRbusin)ss Fith su++ort 4ro7 ,oca, r)-ionsS thatconsu,tin- 4ir7 MISP,an, at th) @ou,d +ro4it 4ro7b)-innin- o4 !""1 <ar,os r),ativ) Mont)ro +r)+ar)d an advanta-)s in)va,uation o4 th) co7+anyKs )ach country.in4or7ation syst)7s. Bas)d on Alimentos Peruthis )va,uation, Mont)ro and th) 6cuador,4or7u,at)d th) 4o,,o@in<o,o7bia andr)co77)ndations to th) =)n)8u),a -)n)ra, 7ana-)r 0s)) subsidiari)s ca7)A++)ndi( B2 und)r a sin-,) +roduction andX/Y <ar,os Mont)ro @as a@ay 7ark)tinunit. 4ro7 Alimentos Peru 4ro7 7id5 =)n)8u),a @as!""1 unti, th) b)-innin- o4 chos)n to b)co7) !""'. th) c)ntra, 7ana-)7)nt s)at 4or th) And)an 1 3o introduc) c,i)nt s)rv)r ar)a. syst)7s. As a r)su,t o4 th) abov), th) co7+any ado+t)d a n)@ or-ani8ationa, s)tu+. Mark)tin- s+,it into 7ark)tinand sa,)s and a,, oth)r 7ana-)rsK o44ic)s, inc,udinI3, start)d to
2 3o ass)ss th) ca+abi,ity

and qua,ity o4 th) c)ntra, s)rv)rs.
3 3o 4 3o
standardi8) so4t@ar).
o44ic)
)va,uat) th) I3 7ana-)rKs o44ic) structur). )nt)r+ris) r)sourc) +,annin06RP2 syst)7 4or
5 3o introduc) an
RF) )va,uat)d th) o+tion to d)v),o+ our o@n so4t@ar) and )sti7at)d a /5y)ar +)riod 4or i7+,)7)ntation, s,i-ht,y ,on-)r than @ou,d b) n))d)d to i7+,)7)nt a co77)rcia, +acka-). Mor)ov)r, an in5hous) 3h) qu)stion so4t@ar) @ou,d not +rovid) @h)th)r Alimentos th) br)adth and sco+) o4 Peru shou,d -)t its 4unctions that cou,d b) so4t@ar) o445th)5 )(+)ct)d 4ro7 a co77)rcia, sh),4 or @rit) it in5 +acka-).S
int )-r at) d cor +or at) in4 or 7a tio n 7a na -) 7) nt.
hous) @as quick,y ans@)r)d. N)c)ssary so4t@ar) 4unctiona, r)quir)7)nts, th) ca+acity to int)-rat) @ith oth)r I4( subsidiari)s and th) ti7) 4or introduction @arrant)d -)ttinan o445th)5sh),4 so4t@ar) +roduct. Marc),a Bur-a, I3 d)v),o+7)nt 7ana-)r, ho,ds
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:n this sa7) d)cision, Jor-) Ai-u)roa says RIn5hous) d)v),o+7)nt @ou,d hav) r)quir)d an )(traordinary a7ount o4 att)ntion 4ro7 our +)o+,), both 4or d)si-n and i7+,)7)ntation. :n th) oth)r hand, this @ou,d b) custo75 7ad) so4t@ar). At that +oint in ti7) @) did not kno@ i4 @hat @) had actua,,y suit)d our +roc)ss)s. Aurth)r7or), usin- o44th)5sh),4 +roducts @ou,d 7ak) int)-ration @ith oth)r IA* subsidiari)s )asi)r.S 3h) +roC)ct to i7+,)7)nt th) n)@ in4or7ation syst)7 start)d @ith so4t@ar) s),)ction. 6va,uation o4 th) 6RP syst)7 start)d in Nov)7b)r !""1 by +uttin- to-)th)r a task 4orc) or-ani8)d as 4o,,o@s
1 St))rin- <o77itt)), 7ad) u+ by th) ar)a 7ana-)rs and h)ad)d by Jor-)

Ai-u)roa.
2 Manu4acturin- and Lo-istic Aunction <o77itt)). 3 Mark)tin- and Ainancia, Aunction <o77itt)). 4 3)chnica, <o77itt)), 7ad) u+ by syst)7s division +)rsonn),.
<hoosin- th) 6RP syst)7 and id)nti4yin- th) corr)s+ondin- i7+,)7)ntation strat)-i)s @as coordinat)d @ith I4(, @hos) syst)7s d)v),o+7)nt +o,icy -av) its subsidiari)s 4r))do7 to 7ak) th)ir o@n d)cisions. 3h)r) @as +rior )(+)ri)nc) o4 syst)7s introductions in oth)r subsidiari)s
1 6cuador BP<S 4or th) ,o-istics and 7anu4acturin- ar)as. 2 =)n)8u),a BP<S 4or th) ,o-istics, 7anu4acturin- and distribution ar)as. 3 Ar-)ntina BP<S 4or th) distribution and 4inancia, ar)as, and PRISM 4or th)
7anu4acturin- ar)a.
4 <anada PRISM 4or th) ,o-istics and 7anu4acturin- ar)as. 5 Pu)rto Rico J.D. 6d@ards 4or th) 4inancia, and distribution ar)as.
6RP syst)7s )va,uation at Alimentos Peru @)nt throu-h t@o sta-)s. In th) 4irst sta-), 4our 6RP syst)7s @)r) )va,uat)d BP<S, J.D . 6d@ards, PRISM and SAP RI#. 3h) )va,uation @as bas)d on th) 4o,,o@in- crit)ria
1 3o +rovid) a co7+r)h)nsiv) so,ution inc,udin- 7odu,)s that cou,d b) )n4orc)d

@ithin a,, busin)ss +roc)ss)s @ithin th) co7+any.
2 3o hav) a track r)cord at I4(. 3 3o hav) a ,oca, r)+r)s)ntativ) in P)ru. 4 3o +ro+os) v)rsions 4or th) ASIG$$ +,at4or7. 5 3o a,,o@ @ork in a c,i)nt5s)rv)r archit)ctur).
In this sta-), i7+,)7)ntation costs and ti7) @)r) a,7ost tota,,y disr)-ard)d. A quick d)cision @as 7ad) b)caus) P)ruvian so4t@ar) su++,i)rs @)r) not nu7)rous and had ,itt,) )(+)ri)nc). J.D. 6d@ards so4t@ar) had no ,oca, r)+r)s)ntativ) and inc,ud)d on,y th) 4inancia, 7odu,). SAP RI# did not hav) a ,oca, r)+r)s)ntativ) )ith)r nor @)r) th)r)
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TEAM FLY
any )(+)ri)nc)s o4 usin- this syst)7 at I4(. 3akin- th)s) consid)rations into account, BP<S and PRISM @)r) +r)qua,i4i)d and @)nt on to th) n)(t s),)ction sta-). R)su,ts 4ro7 th) 4irst )va,uation sta-) a++)ar in 3ab,) !.
Table ;: Results of the first e!aluation of an ERP s(ste' Co'prehensi! e 4olution
ERP
Pre!ious <'ple'entati on at <+G P
Local Representat i !e P
&4?A:: Co'patibil i t( P
Client3 &rchitect u re ser!er P
BP<S
SAP RI# PRIS M
P 0
P P
P 0
P P
P 0
J.D. 6d@a r ds
As a n)(t st)+, th) task 4orc) d)vot)d its),4 to d)t)r7inin- @h)th)r )ith)r BP<S or PRISM 7)t th) co7+anyKs n))ds. Airst, th)y )va,uat)d th) so4t@ar) su++,i)r and its ,oca, r)+r)s)ntativ). 3h) St))rin<o77itt)) studi)d th) or-ani8ations, ,oca, 4aci,iti)s and t)chnica, su++ort both in P)ru and outsid). 3h) shar)ho,din- structur) o4 th) ,oca, r)+r)s)ntativ), )(+)ri)nc) in +rior i7+,)7)ntations, custo7)rs and additiona, +roducts and s)rvic)s o44)r)d @)r) oth)r 4actors tak)n into consid)ration. Durin- visits @ith ,oca, r)+r)s)ntativ)s, th)y @)r) ask)d to 7ak) +r)s)ntations about th)ir 6RP syst)7s and th)ir or-ani8ations. Aina,,y, r)4)r)nc)s 4ro7 c,i)nts @ith +r)vious i7+,)7)ntations @)r) ch)ck)d. Alimentos Peru I3 +)rsonn), visit)d oth)r subsidiari)s @h)r) th) s),)ct)d 6RP so4t@ar) had a,r)ady b))n insta,,)d and )(a7in)d th) contin-)nci)s that )7)r-)d durinth) i7+,)7)ntation sta-) and v)ri4i)d th) syst)7sK 4unctiona,ity, transaction +roc)ssinti7)s and th) vo,u7) th)y cou,d su++ort. Loca, r)+r)s)ntativ)s o4 )ach 6RP syst)7 7ad) +r)s)ntations b)4or) th) Aunction <o77itt))s, @ho a,so r)vi)@)d th) corr)s+ondin- handbooks and d)7onstration v)rsions. 3h) 4unctiona,ity o4 )ach syst)7 7odu,) @as co7+ar)d @ith th) 4unctiona,ity n))d)d 4or th) busin)ss +roc)ss)s by assi-nin- a +)rc)nt scor) to r)4,)ct th) 7atchind)-r)) b)t@))n th) +ro+os)d so4t@ar) and th) d)sir)d busin)ss +roc)ss)s. A,, th) co77itt))s -av) BP<S a hi-h)r +)rc)nt scor) than PRISM. 3o )va,uat) th) so4t@ar)Ks stabi,ity, I3 +)rsonn), r)sort)d to v)rsion )vo,ution ov)r ti7). 3h)y a,so )va,uat)d oth)r as+)cts, inc,udin- th) @orkin- +,at4or7, +ro-ra77in,an-ua-), ty+) o4 databas) and handbook ,an-ua-). <ost ana,ysis inc,ud)d th) initia, inv)st7)nt r)quir)d, i7+,)7)ntation costs, and annua, 4))s 4or su++ort and so4t@ar) u+datin-.
3his s)cond sta-) took # 7onths, 7ost o4 th) ti7) 4or )va,uation. At th) )nd o4 this ti7), th) St))rin- <o77itt)) chos) BP<S. 3h) d)cision @as 4avor)d by th) syst)7Ks +r)vious i7+,)7)ntations at I4( subsidiari)s and th) ,on-)r )(+)ri)nc) o44)r)d by th) consu,tant, ,oca,,y r)+r)s)nt)d by DSo4t, char-)d @ith th) i7+,)7)ntation.
172-
R)su,ts @)r) r)+ort)d to I4( >S h)adquart)rs in A+ri, !""'. Ja7)s Robinson, -)n)ra, in4or7ation syst)7s 7ana-)r 4or I4(, ca7) to P)ru to brinth) a++rova, 4or th) BP<S syst)7 as th) 6RP syst)7 to b) i7+,)7)nt)d at Alimentos Peru. 3o conc,ud) @ith th) s),)ction +roc)ss, th) 4o,,o@intask @as to d)si-n an i7+,)7)ntation strat)-y and to start n)-otiations @ith th) consu,tant.
X#Y A4t)r 4inishin- th) 6RP syst)7 s),)ction +roc)ss and int)rna, r)structurin, th) co7+anyKs I3 7ana-)r start)d r)+ortindir)ct,y to th) ,oca, -)n)ra, 7ana-)r.
Alimentos Peru2s o+)rations. <ar,os Mont)ro had )sti7at)d this +roc)ss @ou,d tak) !& 7onths and invo,v) about &$ +)rsons, inc,udinconsu,tants 0both to r)d)si-n th) +roc)ss)s and 6RP so4t@ar) s+)cia,ists2, I3 +)rsonn), and us)rs. 3h) +roC)ctKs tota, )sti7at)d bud-)t r)ach)d >S T&$$,$$$, o4 @hich >S TG1$,$$$ @ou,d -o to so4t@ar) ,ic)ns)s and >S T#1$,$$$ to hard@ar) acquisitions, i7+,)7)ntation, consu,tancy and trainin-. 3akin- into consid)ration that oth)r subsidiari)s had )(+)ri)nc)d cost ov)rruns du) to contin-)nci)s durinth) i7+,)7)ntation +)riod, Mont)ro 4),t that th) ti7) and cost )sti7at)s @)r) too o+ti7istic and @ond)r)d @hat 4actors @ou,d 4aci,itat) succ)ss4u,,y i7+,)7)ntinth) n)@ syst)7. 3h) initia, discr)+anci)s b)t@))n so4t@ar) 4unctiona,ity and th) busin)ss +roc)ss)s th)n in +,ac) had a,r)ady sur4ac)d in th) )va,uation sta-). In this r)-ard, Marc),a Bur-a, a 7)7b)r o4 th) St))rin- <o77itt)), ho,ds
R3h) accounts +ayab,) 7odu,) invo,v)d th) accountin- and tr)asury divisions. 3h) BP<S so4t@ar) su++r)ss)d t@o 4unctions in accountin- and add)d on) to tr)asury. 3h) h)ad o4 th) tr)asury division 3h) BP<S syst)7 @as not @i,,in- to tak) u+ that 4unction. @ou,d b) espite the fact that i7+,)7)nt)d in the process as a -hole th) +urchasin-as more simple, -e and @ar)5 sathings as divisions housin-, rather than processes7? 7anu4acturin-, cost contro,, 3o@ards th) )nd o4 Jun) !""', accountin- and ri-ht a4t)r th) i7+,)7)ntation tr)asury, and had b))n ,aunch)d, th) 7ost 7ark)tin)(+)ri)nc)d consu,tant assi-n)d divisions, thus 4u,,y int)-ratin- by th) 4ir7 ,)4t th) +roC)ct. A
7uch ,)ss )(+)ri)nc)d
r)+,ac)7)nt ca7) introduc)d s)qu)ntia,,y. 3h) in and Mont)ro initia, sub+roC)ct @ou,d co7+ris) th) ,o-istics, thou-ht I3 +urchasin- and @ar)housin-, +)rsonn), invo,v)7)nt @ou,d and 7anu4acturin- and cost b)co7) critica, in contro, 7odu,)s. 3h) s)cond und)rstandinth) sub+roC)ct inc,ud)d accountin-, and th) third on) @as 4or n)@ +roC)ctKs 4unctiona,ity and 7ark)tin-. u,ti7at) succ)ss.
3h) i7+,)7)ntation strat)-y and 7)thodo,o-y @)r) d)t)r7in)d in coordination @ith DSo4t, th) i7+,)7)ntation consu,tinco7+any that @as a,so th) ,oca, r)+r)s)ntativ) o4 SSA Inc., th) v)ndor o4 BP<S.
Mont)ro thou-ht th) 7)7b)rs on th) task 4orc) shou,d )(hibit a ran-) o4 qua,iti)s, 7ost i7+ortant,y th)ir ca+acity to 7ana-) a +roC)ct, )(+)ri)nc) in in4or7ation syst)7s i7+,)7)ntation, kno@,)d-) o4 busin)ss +roc)ss)s, and ca+acity to ,)ad chan-).
3o ,)ad th) +roC)ct, th)r) @ou,d b) a St))rin<o77itt)), co7+risin- th) r)s+)ctiv) ar)a 7ana-)rs, char-)d @ith id)nti4yinbusin)ss +roc)ss)s and th) i7+,)7)ntation strat)-y. 3o 3hr)) i7+,)7)ntation ,in) u+ th) 6RP syst)7 sta-)s or i7+,)7)ntation and th) MRP II sub+roC)cts @)r) trainin- +ro-ra7,
d)vis)d to b)
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Jor-) Ai-u)roa @as na7)d +roC)ct ,)ad)r @ith Marc),a Bur-a as -)n)ra, coordinator. Bur-a @as a,so syst)7s d)v),o+7)nt 7ana-)r and Mont)roKs d)+uty. >s)r +)rsonn), @)r) chos)n to 7ak) u+ th) @ork t)a7s. 6ach t)a7 @ou,d inc,ud) a 7a(i7u7 o4 s)v)n or )i-ht 7)7b)rs, @ith a ,)ad)r chos)n a7on- th)7 @ho @ou,d b) 4urth)r su++ort)d by a 7)7b)r 4ro7 th) I3 division. A tota, o4 %1 +)rsons @ou,d tak) +art in th) +roC)ctKs !$ @orkin- t)a7s. P)rsonn), s),)ction and @orkin- t)a7 con4i-uration took +,ac) 4o,,o@inr)co77)ndatio ns issu)d by )ach ar)aKs
7ana-)r. 3h) candidat)s @)r) )(+)ct)d to 7))t th) 4o,,o@in- r)quir)7)nts
1 3o
b) outstandin7)7b)rs in th)ir divisions. and +roactiv) attitud).
2 3o sho@ a +artici+atory 3 3o b) ca+ab,) o4 usinth)

syst)7 and +oss)ss a r)s)arch5ori)nt)d attitud).
4 3o kno@ th) +roc)ss @),,. 5 3o

b) innovativ) 0a,thou-h in 7any cas)s innovation s @ou,d b) th) r)s+onsibi ,ity o4 I3 +)rsonn), 2. ca+acity @ithin th)ir o@n divisions. co77unication and hav) dir)ct contact @ith th)ir i77)diat) su+)riors.
6 3o hav) d)cision57akin-
7 3o b) o+)n to
3ab,) / sho@s th) i7+,)7)ntation 7)thodo,o-y r)co77)nd)d by th) syst)7Ks su++,i)r.
Table 9: <'ple'entation 'etho"olog( for an ERP s(ste' Pa ) 7 &cti!it( rti n s ci t Docu7)ntin pa a 2 - ori-ina, 3rainin- in +roc)ss nt t +roc)ss)s r))n-in))rins i o 1 I n 7 + t , ) ) a 7
: r a n i 8 a t
ion and 7)t hods s+)c ia,ist 0on) +)rs on2
on consu,tant
I7+,)7)ntation t)a7
9 I3 division
e s c ri p ti o n
3 I
1 D
) 4 i n ) b u s i n ) s s + r o c ) s s ) s .
7 +, ) 7 ) n ta ti o n c o n s u, ta n t division
c ) n a r i o . A o r i n s t a n c ) i n + u r c h a s i n i n + u t s , s + a r ) + a r t s , 4 i ( ) d a s
s)t s, sun dri) sN in inv )nt ory 4,o @ +ur cha s)s , tra ns4 )rs, and ,oa ns.
3 Pr
4 I3 5
:, iv )r F iht c o n s u, ti n -
oc )s s 4or 7 a,i 8at ion +r oc )s s, +r oc )d ur )s, ru, )s an d +o, icy do cu 7 )n tat ion .
2 6
v a , u a t ) ) a c h + r o c ) s s s
6 4ir7 7 I
7 +, ) 7 ) n ta ti
4 MRP
II trai nin+ro -ra 7
@ith an )7+has is on R4or7u, a accurac yS and
Rinv)ntory accuracyS as critica, ),)7)nts to ,ink th) i7+,)7)ntation o4 th) sa,)s +,an, +roduction
+ , a n n i n
a n d 7 a t
)ria ,s r)q uisit ions
174-
Table 9: <'ple'entation 'etho"olog( for an ERP s(ste'
&cti!it( 3rainin- in 6RP syst)7 us)
Participants I7+,)7)ntation consu,tant I7+,)7)ntation t)a7 I3 division
escription D)7onstration v)rsions and handbooks. 3rainin- o4 i7+,)7)ntation t)a7 ,)ad)rs. 3rainin- o4 i7+,)7)ntation t)a7s by th)ir ,)ad)rs.
1 I7+,)7)n Proc)ss tation r)7od),inconsu,tan t 2

Syst)7 tria, runs
3 4
d ) n t I7+,)7)ntation i 4 t)a7 y I3 division b I7+,)7)n u tation s consu,tan i t n ) :r-ani8ation s and 7)thods s

s+)cia,ist 0on) +)rson2
1 I
I d ) n t i 4 y d i v ) r ) n c ) s
th) 6RP syst )7 and busi n)s s +ro c)s s)s.
3 S),
+ r I7+,)7)ntation o t)a7 c ) s s ) s + r o t o t y + ) s @ i t h u s ) r s .
)cti nr)a, dat a to t)st )ac h 7o du, ). Sta nd5 a,o n) 7o du, ) t)st in-.
Int) rcon n)ct )d 7od u,) t)sti n-.
b ) 4 t @ ) ) n 4 u n c t i o n a , i t y o 4
6 P
a r a , ,
ori-ina, syst)7s and n)@ 7odu,)s. )d i o @ith n r <'ple th) s k 'entin ,o-istic t s g the s and a o ERP 7anu4 ,, 4t acturin ) @ A d a s 7odu, a r 7 )s in F ) ) Jun) i + n !""'. n ,a t d t4 i o o o Fith th) 6RP @ r n syst)7 s 7 ) i7+,)7)ntati o . d on und)r@ay, + M + Alimentos ) S r Peru start)d r : ) to )nhanc) a 44 v its hard@ar) ti ic i and so4t@ar) n ) o +,at4or7s. @ u Both IBM s a s ASIG$$ y s , s)rv)rs @)r) s u y u+-rad)d, t s , incr)asin) ) t th)ir s+))d 7 d h and stora-) a ) ca+acity. 3h) t s i t@o 4actori)s o o 7 @)r) b 44 + conn)ct)d ) ic , throu-h a u ) ) c,i)nt5s)rv)r s s 7 n)t@ork. :n) ) o ) o4 th) d 4t n ASIG$$ a @ t s)rv)rs @as s a a us)d as a t r t +roduction h ) i s)rv)r and ) . o th) oth)r as c L n d)v),o+7)nt o a s s)rv)r. N)@ 7 s t +)rsona, + t, a co7+ut)rs u y, @)r) t M ) insta,,)d ) S s @hi,) so7) r 6 t o,d on)s n ( a @)r) ) c r u+-rad)d. t h t 3h) co7+any @ a
), tria, s usin
n-) s @)r) +rov con4i-ur)d at id)d h)ad and ),)c su+)r5 visor troni ,)v),s. Jor-) c Ai-u)roaKs 7ai, +artici+ation ca+a as +roC)ct bi,iti ,)ad)r a,,o@)d )s th) ,o-istics 4or division to both 7ak) ti7),y int)r d)cisions na, b)caus) ,ack int)r o4 d)cision5 con 7akinn)ct ca+acity @as ion s,o@indo@n and th) +roC)ct in con so7) n)ct +roc)ss)s. ion Durin@ith i7+,)7)ntatio oth) n o4 th) r 7anu4acturin I4( - 7odu,)s, subs 4or instanc), idiar th)r) @as a i)s. st)+ back A,, @h)n th) ar)a o4 7ana-)r did th)s not dir)ct,y ) a++rov) a task +roc)ss s, chan-). inc,u R)-ardinth) din- invo,v)7)nt us)r o4 us)r train division in-, +)rsonn), took >Corporate abo changes led ut ' to high 7on personnel ths. turnover and rightsi%ing7 3h) Some +ey 6RP elements in syst the E"P )7 system i7+, implementati )7) on pro3ect ntati -ere replaced on )y others -ho t)a7had to get ne- training7?
175-
d)cisions.S I7+,)7)ntinth) syst)7 r)quir)d a++ro+riat) docu7)ntin- and r)cordin- o4 )ach and )v)ry +urchasin+roc)ss and stock 7ov)7)nt. Mont)ro and Bur-a r)a,i8)d that b)st busin)ss +ractic)s and 4or7a,i8in+)o+,)Ks @ork @ou,d attract division 7ana-)rsK int)r)st as @),, as att)ntion 4ro7 th) -)n)ra, 7ana-)r. Jor-) Ai-u)roa, th) co7+anyKs ,o-istics h)ad, says RFh)n @) start)d i7+,)7)ntation, nobody r)s+)ct)d th) ti7) +)riods. F) had no id)a ho@ bi- an 6RP syst)7 i7+,)7)ntation +roC)ct @ou,d b) b)caus) th)r) @)r) no +r)vious )(+)ri)nc)s in P)ru. As th) i7+,)7)ntation 7ov)d on, 7ana-)7)nt -ain)d a b)tt)r und)rstandin- o4 th) +roC)ctKs sco+) and si8), ,)adin- to a chan-) in 7ind5 s)t. So @) @)r) ab,) to 7ak) b)tt)r Sinc) th) v)ry b)-innin-, th) i7+,)7)ntation t)a7 had to 4ac) th) di44icu,ti)s st)77in4ro7 div)r-)nc)s b)t@))n th) 6RP syst)7 4unctiona,ity and busin)ss +roc)ss)s. A,thou-h th) 6RP syst)7 had b))n d)si-n)d as a standard a++,ication that do)s not r)quir) si-ni4icant chan-)s 4or s+)ci4ic us)rs, th) syst)7 n))d)d con4i-uration so it cou,d b) ada+t)d to )ach +roc)ssKs individua, r)quir)7)nts. <on4i-urin- a syst)7 r)quir)s 7uch att)ntion and )(+)ri)nc). A sin-,) chan-) in a con4i-uration tab,) has a substantia, i7+act on th) @ay th) 6RP syst)7 @i,, o+)rat). At Alimentos Peru, con4i-urinth) 6RP syst)7 4o,,o@)d th) +roc)ss 7od),s +r)+ar)d by )ach us)r division. About th) di44)r)nc)s b)t@))n th) 6RP 4unctiona,ity and Alimentos Peru2s busin)ss +roc)ss)s, Marc),a Bur-a ho,ds R3o-)th)r @ith th) accounts +ayab,) 7odu,) r)C)ct)d by tr)asury, @) a,so r)turn)d th) cost contro, 7odu,). Accordinto us)rs, th) cost data su++,i)d by th) 7odu,) did not +rovid) th) d)+th o4 d)tai, r)quir)d by IA*. Syst)7s 7ust not on,y b) -oodN us)rs 7ust a,so acc)+t th)7. F) had to d)v),o+ th)s) 7odu,)s ind)+)nd)nt,y and d)si-n int)r4ac)s @ith BP<S, thus d),ayinth) i7+,)7)ntation +roc)ss.S Jor-) Ai-u)roa adds R3h) 7ain i7+,)7)ntation issu)s aros) @h)n th) 6RP syst)7 4unctiona,ity 4ai,)d to 7atch th) +roc)ss)s. Fh)n @) )va,uat)d th) 6RP syst)7 th) consu,tant to,d us that th) syst)7 had th) ca+acity to do @hat)v)r @) r)quir)d 4ro7 it but ,at)r @) 4ound so7) sur+ris)s.S
<ar,os Mont)ro r)7arks
R3h) -uidin+rinci+,) durini7+,)7)ntation @as not to 7odi4y th) 6RP syst)7.S 3h) 4ina, tria,s inc,ud)d a #5 @))k t)st runnin- th) ori-ina, I7+,)7)ntinsyst)7s and th) n)@ syst)7 in th) ,o-istics and +ara,,),. Accordin- to +roC)ct 7anu4acturin+artici+ants, this @as th) b)st 7odu,)s took @ay to t)ach 4utur) us)rs ho@ unti, May !""&. to us) this too,. 3h) ,ast # 7onths @)r) Marc),a Bur-a has th) 4o,,o@ind)vot)d to 4ina, co77)nts about th) 4ina, us)r trainin-, in sta-)
+articu,ar 4actory @ork)rs, and to tria, runs. 3h)ir o@n boss)s train)d +)rsonn),. Boss)s @ou,d -)t th)ir +)o+,) to-)th)r and +r)+ar) an )(+,anation ta,k @ith su++ort 4ro7 I3 +)rsonn),.
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RI77)diat),y b)4or) ,aunchinour 7anu4acturinand ,o-istics 7odu,)s, @) 4ound out about di44icu,ti)s in oth)r countri)s @ith th) syst)7Ks start u+, and -)n)ra, 7ana-)7)nt ask)d us to tak) )v)ry +ossib,) +r)caution. Ho@)v)r, our +)rsonn), 4),t th)y @)r) r)ady. Fh)n @) start)d th) syst)7, @) 4ound on,y v)ry s7a,, )rrors.S I7+,)7)ntation o4 th) accountin7odu,)s start)d in :ctob)r !""& and ,ast)d # 7onths. 3h) sa,)s and 7ark)tin7odu,)s took G 7onths, startinin January !""". Qouth, a +roactiv) attitud) and a -r)at)r d)cision5 7akin- ca+acity a7on- +)rsonn), in th)s) divisions ,)d to a 4ast i7+,)7)ntation. By that ti7), Mont)ro had r)a,i8)d that i7+,)7)ntinth) 6RP syst)7 had )44)ctiv),y introduc)d chan-)s in Alimentos Peru2s busin)ss +ractic)s that @ou,d hav) a +ositiv) i7+act on th)
co7+anyKs 4inancia, +osition. So7) o4 th) chan-)s @)r) th) 4o,,o@in-
1 Avai,abi,ity o4
consist)nt in4or7ation that su++r)ss)s th) n))d 4or 7anua, int)-ration and r)vi)@s that @)r) at th) sourc) o4 7any hu7an 7istak)s and @)r) ti7)5 consu7in-. Fith th) n)@ syst)7, co7+any 7ana-)rs had acc)ss to a consist)nt and sin-,) v)rsion o4 th) data. and si7+,i4ication 3h) co7+any start)d to us) a sin-,) ,an-ua-). Mat)ria,s cou,d b) id)nti4i)d in a sin-,) @ay throu-hout th) co7+any and crit)ria 4or th) various activiti)s @)r) ,ik)@is) uni4i)d.
Aor7a,i8ation o4 o+)rations B)4or) introducin- th) syst)7 it @as usua, to ask and us) 7at)ria,s @ithout th) corr)s+ondin+urchas) ord)r, as @as s)ndin- ra@ 7at)ria,s to @ar)hous)s @ithout usin- standardi8)d and u+dat)d 4or7s. Fh)n th) n)@ in4or7ation syst)7 and th) MRP II conc)+t @)r) introduc)d, +)rsonn), @)r) ob,i-)d to 4i,, in 4or7s and ch)ck th) data 4or )ach o+)ration.
2 Standardi8ation
>4rom the very )eginning of the implementation,
)osses -ere called at home, even late at night, to as+ authori% ation to close manufa cturing orders needed to close account s7 Every)o dy had to get used to operatin g formally ,S says Marc),a Bur-a. 3h) +)riod 4or c,osinaccount s at th) )nd o4 )v)ry 7onth di7inish )d 4ro7 7or) than ! @))k to Cust / days @ithout any n))d 4or th) +)o+,) to @ork ov)rti7 ).
4 B)tt)r busin)ss
+roc)ss)s Sa,)s and 7anu4acturin+ro-ra77ind)+)nd)d on )nd5o45 7onth stocks. 3his +ractic) ,)d to +i,inu+ o4 4inish)d +roduct and ra@ 7at)ria,s stocks in @ar)hous)s so that ord)rs cou,d b) 4i,,)d at th) )nd o4 th) 7onth. N)@ id)as introduc)d by MRP II and usinth) 6RP syst)7 a,,o@)d 4or o+)rations to b) s+r)ad out ho7o-)n)ous,y throu-hout th) 7onth. 3@o n)@ +ositions @)r) cr)at)d thanks to th) n)@ in4or7ation syst)7 a d)7and 7ana-)r and th) 7ast)r +roduction +,ann)r.
CURRENT CHALLENGES AT &L<$E.TO4 PERC

3h) i7+,)7)ntation o4 th) 6RP syst)7 at Alimentos Peru )nd)d in A+ri, !""". A 4)@ 7onths ,at)r, @hi,) h) is on his @ay to @ork, <ar,os Mont)ro thinks about n)@ us)r r)quir)7)nts. H) thinks about th) 7ost va,uab,) as+)cts o4 this )(+)ri)nc) and th) ,)arnin- +roc)ss th) co7+any @)nt throu-h @hi,) i7+,)7)ntinth) n)@ in4or7ation syst)7. Lookin- back at th) +roc)ss, Mont)ro r)7)7b)rs th) tou-h d)cisions that @)r) n))d)d and th) 7any s,))+,)ss hours n))d)d to i7+,)7)nt th) syst)7 and r)d)si-n th)
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busin)ss a,on- a road 4u,, o4 s@itchbacks. H) says >.hat did -e learnM &ocould -e have reduced total implementation timeM .hat can help us in future implementationsM ? Mont)ro is a@ar) that th)r) is a n)@ ro,) 4or th) I3 7ana-)r. >More than programmers and operators, -e are no- systems analysts and -e have to support users to continuously improve their )usiness processes,? h) adds. No@ Alimentos Peru has th) 6RP syst)7 as a 4oundation 4or its transactions. 3h) co7+any, ho@)v)r, has n)@ r)quir)7)nts. So7) o4 th) t)chno,o-i)s und)r )va,uation as +art o4 th) n)@ t)chno,o-y +,an ar) th) 4o,,o@in-
1 Data @ar)housin-
and busin)ss int),,i-)nc) too,s to su++ort th) 7ark)tin- us)r division in sa,)s +,annin-. In this r)-ard, Mont)ro @ond)rs, >Shall -e have the analysis capa)ilities to use these ne- types of toolsM .ill -e )e a)le to use them -ell and )enefit from these ne- toolsM .ill anyone arrive at any conclusions using the data providedM? in4or7ation syst)7s that @ou,d +rovid) an 6DI int)rconn)ction @ith th) co7+anyKs 7ain custo7)rs to )nhanc) su++,y o+)rations. Mont)ro thinks that any 6DI chan-) 7ust -o hand in hand @ith a chan-) in 7ind5s)t a7on- sa,)s+)o+,). >The salesperson -ill no longer need to provide plenty of information or long price catalogs7 They -ill devote themselves to sell7?
2 Int)ror-ani8ationa,
APPENDI, A: FINANCIAL STATEMENTS
1 7 8 -
179-
APPENDI, *: INFORMA TION SYSTEMS EVALUATI ON AND RECOMME NDATION S

E0ecuti!e 4u''ar(
2. 3. 4.
Current 4ituation
3h) curr)nt in4or7ation syst)7s inc,ud) both thos) ori-ina,,y d)v),o+)d 4or R)a, P)ruana Inc. and thos) 4or 6str),,a S.A. 3h)s) syst)7s ar) sti,, b)inus)d in A,i7)ntos P)ru. Sinc) th) 7)r-)r in !""#, th)r) has not b))n any 7aCor d)v),o+7)ntIu+d at) )44ort that @ou,d i7+rov) th) syst)7s. As a r)su,t, th)y do not )44)ctiv),y su++ort th) curr)nt or-ani8ationa, busin)ss +roc)ss)s. 3h) 7aCor +rob,)7s @ith th) in4or7ation syst)7s inc,ud)
5. 6.
1. Lack
o4
7.
ti7),y and r),iab,) in4or7ation. Lack o4 int)-ration a7on)(istinsyst)7s. Du+,icat) syst)7s 4or a nu7b)r o4 4unctions. Lack o4 4,)(ibi,i ty. Most o4 th) curr)nt syst)7 s @)r) d)si-n )d 4o,,o@i nri-id structu r)s that do not a,,o@ th) I3 sta44 to )asi,y u+dat) th) syst)7 s. Fh)n th)y @)r) d)si-n )d, no a++ro+ riat) +ro-ra 77intoo,s @)r) avai,ab ,). Lack o4 syst)7 docu7)ntation. 3h) I3 division is 7ain,y conc)rn)d @ith 7aintainin)(istinsyst)7sN th)r) is not )nou-h ti7) 4or n)@ d)v),o+7)nts. In accounti
n , 4 i n a n c ) a n d s a , ) s d i v i s i o n s , i n 4 o r 7 a t i o n h a s t o b ) h a n d , )
8. 9.
d or conso,id at)d usins+)cia, +ro-ra 7s. Syst)7s ar) not us)r54ri)nd,y. Lack o4 standard I3 +o,ici)s, ru,)s, and +roc)dur)s.
Reco''en"ations
1. 3h)
ar)as n))di nin4or 7atio n syst) 7s i7+ro v)7) nts ar) th) 4o,,o@ in-, by ord)r o4 +riorit y
1 Lo-istics 2 67+,oy))
Payro,,s
3 Accountinand Ainancia, 8ation n-
4 <o77)rcia,i 5 Manu4acturi 6 Hu7an 7 I7
R)sourc)s +ro v) or r)+, ac) bas
i c s y s t ) 7 s u s i n i n t ) r a t ) d s y s t ) 7 s i n c , u d i n i n t ) r c o n n ) c t )
d 7o du, )s and a++ ,ica tion s 4or th) s) ar) as, +r) 4)ra b,y @it h +r) +ro -ra 77 )d +ac ka)s.
<,i)nt5 s)rv)r hard@ ar) archit) ctur) shou,d b) ado+t) d by insta,,i n- a ,oca, ar)a n)t@or k 0LAN2. A,so, )va,ua t) and 4o,,o@ u+ th) us) o4 ASIG$ $ s)rv)r ca+acit y and standa rdi8) P<s.
180-
:r-ani8ation5,)v), r)co77)ndations
o S)ttin- u+ an I3 St))rin- <o77itt)) und)r th) Mana-)7)nt <o77itt)) to )nsur) basica,,y that syst)7s d)v),o+7)nt @ou,d b) a,i-n)d @ith busin)ss -oa,s. 15 6nhanc) )(+)rtis) in th) I3 division by hirin- n)@ +)rsonn), and trainin- 4or +r)s)nt )7+,oy))s.
15 <han-) th) I3 divisionKs or-ani8ationa, structur) and
cr)at) +roC)ct5 ori)nt)d t)a7s. A,so )stab,ish a syst)7s car))r +ath.
AC-NOWLEDGMENT
3h) authors @ou,d ,ik) to )(+r)ss th)ir -rat)4u,n)ss to Antonio Dia85Andrad) 4or his co,,aboration in this cas) and ackno@,)d-) th) co77)nts +rovid)d by th) anony7ous r)vi)@)rs.
ENDNOTES
1. A,, individua, na7)s, co7+any na7)s, and brand na7)s hav) b))n 2. 3.
dis-uis)d. <ar,os Mont)ro @as a@ay 4ro7 Alimentos Peru 4ro7 7id5!""1 unti, th) b)-innin- o4 !""'. A4t)r 4inishin- th) 6RP syst)7 s),)ction +roc)ss and int)rna, r)structurin-, th) co7+anyKs I3 7ana-)r start)d r)+ortindir)ct,y to th) ,oca, -)n)ra, 7ana-)r.
REFERENCES
A++,)ton, 6. L. 0!""%2. Ho@ to surviv) 6RP. atamation, 1$51#. Bancro4t, N. H., S)i+, H. and S+r)n-),, A. 0!""%2. Implementing SAP "@A. 0s)cond )dition2 *r))n@ich, <3 Mannin- Pub,ications, <o. Dav)n+ort, 3. H. 0/$$$2. Mission Critical' "eali%ing the Promise of Enterprise Systems . Boston, MA Harvard Busin)ss Schoo, Pr)ss. Dav)n+ort, 3. H. 0!""&2. Puttin- th) )nt)r+ris) into th) )nt)r+ris) syst)7. &arvard Business "evie-, %'0G2, !/!5!#!. H)cht, B. 0!""%2. <hoos) th) ri-ht 6RP so4t@ar). atamation, G#0#2, 1'51&. Lan-)n@a,t)r, *. A. 0!"""2. Enterprise "esources Planning and Beyond' Integrating :our Entire !rgani%ation. Boca Raton, AL <R< Pr)ss. Norris, *., Dun,)avy, J., Hur,)y, J. R., Ba,,s, J. D. and Hart,)y, ?. M. 0/$$$2. E0Business and E"P' Transforming the Enterprise. N)@ Qork John Fi,)y ; Sons. Shtub, A. 0!"""2. Enterprise "esource Planning JE"PK' The ynamics of !perations Management. ?,u@)r Acad)7ic Pub.
-181TEAM FLY
Chapter K<<: & +ra'e, or# for the 4electio n of ERP Pac#age s for 4'all to $e"iu' an" Large Organi* ations
E",ar" -% .% /ernroi"er an" 4tefan 5och =i)nna >niv)rsity o4 6cono7ics and Busin)ss Ad7inistration, Austria <o+yri-ht . /$$/, Id)a *rou+ Pub,ishin-.
acad)7ic th)ory. 3h) ai7 is to i7+rov) th) coo+)ration and int)raction b)t@))n a,, th) or-ani8ationsK d)+art7)nts such as th) +roducts +,annin-, 7anu4acturin-, +urchasin-, 7ark)tin- and custo7)r s)rvic) d)+art7)nt. 6RP is a 4in) )(+r)ssion o4 th) ins)+arabi,ity o4 I3 and busin)ss. As an )nab,int)chno,o-y as @),, as an )44)ctiv) 7ana-)ria, too,, 6RP syst)7s a,,o@ co7+ani)s to int)-rat) at a,, ,)v),s and uti,i8) i7+ortant 6RP a++,ications such as su++,y chain 7ana-)7)nt 0S<M2, 4inancia,s and accountin- a++,ications, hu7an r)sourc) 7ana-)7)nt 0HRM2 and custo7)r r),ationshi+ 7ana-)7)nt 0<RM2. 3h)y r)+r)s)nt ,ar-), co7+,)(, co7+ut)ri8)d and int)-rat)d syst)7s, @hich can stron-,y in4,u)nc) ,on-5t)r7 busin)ss succ)ss. 6RP syst)7s +ro7is) th) d)v),o+7)nt and sustain7)nt o4 co7+)titiv) advanta-) in th) -,oba, 7ark)t+,ac) throu-h )nhanc)d d)cision su++ortN r)duc)d ass)t bas)s and costsN 7or) accurat) and ti7),y in4or7ationN hi-h)r 4,)(ibi,ityN or incr)as)d custo7)r satis4action 0Dav)n+ort, !""&, /$$$N Poston ; *rabski, /$$$N Ri88i ; Ea7boni, !"""2. But th) 4ar5 r)achin- structura, chan-)s 4o,,o@inan 6RP so4t@ar) i7+,)7)ntation can a,so b) disastrous as )(a7+,)s 0Scott, !"""2 sho@.
INTRODUC TION
In this cha+t)r @) 4ocus on th) )ar,y sta-) o4 )va,uatin- and s),)ctinan 6RP syst)7 +rior to i7+,)7)ntation. :n,y a +art o4 An )nt)r+ris) r)sourc) +,annin- d)cision 7akin- 4or 6RP syst)7s 06RP2 syst)7 is a can b) hand,)d by a d)4init) or so4t@ar) acc)+t)d +roc)dur) such as in4rastructur) standard inv)st7)nt ca,cu,ations. )7b)dd)d @ith 3h)r) ar) 7any oth)r intan-ib,) Rb)st +ractic)s,S d)cision57akin- crit)ria n))dinr)s+)ctiv),y, b)st to b) Cud-)d and )va,uat)d by @ays to do th) d)cision 7ak)rs. 3h)r) is no busin)ss bas)d ona-r))d5u+on and 4or7a, co77on busin)ss +roc)dur) 4or this i7+ortant task +ractic)s or 0H)cht !""%N Laudon ; Laudon,
!""&2. 3h)r)4or) it th)s) n))ds. 3h) avai,abi,ity o4 s))7s n)c)ssary r),ativ),y in)(+)nsiv) hard@ar) to inv)sti-at) is 4ost)rin- this situation 0*ab,) d)cision57akin; St)@art, !"""2. In -)n)ra,, +ractic)s to d)cision 7akin- in SM6s 4)atur)s incr)as) th) 7uch -r)at)r constraints on th) und)rstandin- o4 abi,ity to -ath)r in4or7ation in this co7+,)( and ord)r to r)duc) unc)rtainty i7+ortant task. F) about th)ir inv)st7)nt 0<obha7, a,so 4ocus on th) /$$$2. <onsid)rin- 6RP so4t@ar) d)cision57akind)cisions @ith its co7+,)( and situation 4ac)d by 4ar5r)achin- i7+,ications, +oor s7a,, and d)cision 7akin- by SM6s can 7)diu75si8)d r)su,t in disastrous situations. )nt)r+ris)s 0SM6s2. 3his is o4 :n th) oth)r sid), 6RP v)ndors +articu,ar ar) in s)arch 4or n)@ cha,,)n-)s i7+ortanc) b)caus) SM6s ar) to -)n)rat) hi-h)r r)v)nu)s and hav) turn)d to th) s7a,, and 7or) and 7or) )(+)ri)ncin- th) 7)diu75si8)d 7ark)t s)-7)nt. In th) ,ast y)ars 6RP so4t@ar) n))d 4or +acka-)s sa,)s 4,att)n)d. A int)-ration, saturation o4 th) 7ark)t, as )s+)cia,,y 4or int)ror-ani8ationa, 7ost ,ar-) or-ani8ations hav) a,r)ady i7+,)7)nt)d an 6RP int)-ration, and so,ution, d)cr)as)d th) annua, )(+)ctin- 6RP so4t@ar) to 4u,4i,, 6RP
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7ark)t -ro@th 0Pi)rr) Audoin <ons)i,, !"""2. By !""& a++ro(i7at),y G$U o4 co7+ani)s @ith annua, r)v)nu)s RESEARCH ov)r >S T! bi,,ion HYPOTHESES had i7+,)7)nt)d 6RP syst)7s 3h) r)s)arch hy+oth)s)s 0<a,d@),, ; St)in, +r)s)nt)d b),o@ @)r) d)riv)d !""&2. 3h) s7a,, 4ro7 r)c)nt 4indin-s +ub,ish)d and 7)diu75 in acad)7ic ,it)ratur) and si8)d 7ark)t su--)stions 4ro7 stud)nts, s)-7)nt is 4ar +ractition)rs and r)s)arch)rs o4 4ro7 b)inour institut) in th) 4i),d o4 saturat)d 0Pi)rr) in4or7ation syst)7 )va,uation. Audoin <ons)i,, 3h) inv)sti-at)d hy+oth)s)s !"""2. 3h) tota, @)r) c,os),y r),at)d to +ractica, 6uro+)an 7idsi8) +rob,)7s, )s+)cia,,y 7ark)t 4or I3 7ana-)7)nt +it4a,,s, o4t)n +roducts and sho@in- u+ @h)n i7+,)7)ntins)rvic)s and th)r)a4t)r o+)ratin- th) sur+ass)s T1$ chos)n syst)7, ).-., a ,o@ bi,,ion +)r y)ar )7+,oy)) 7otivation. 06v)rdin-)n, &ypothesis B' Most Hi,,)-)rsb)r-, ; companies are choosing a Faarts, /$$$2. participative evaluation 3h) 4ra7)@ork out,in)d in this cha+t)r and th) inv)sti-at)d r)s)arch hy+oth)s)s r)+r)s)nt a 4urth)r st)+ to@ards und)rstandinth) d)cision5 7akin- +roc)ss 4or 6RP inv)st7)nts and di44)r)nc)s 7ad) by SM6s and ,ar-) or-ani8ations. 3h) -round@ork o4 th) +ro+os)d 4ra7)@ork is su++,i)d by a -)n)ra, +roc)ss 7od), 4or d)cision 7akind)riv)d 4ro7 ,it)ratur), @hich @i,, b) s,i-ht,y strategy in the E"P system decision0ma+ing process7
ada+t)d 4or th) s+)cia, n))ds o4 s),)ctinan 6RP syst)7. Aor a,, r),)vant sta-)s @ithin this 7od),, th) 4indin-s contributin- to th) introduc)d r)s)arch hy+oth)s)s @i,, b) ana,y8)d.
An 6RP i7+,)7)ntation is 7uch 7or) than t)chno,o-y chan-)N it a,so incor+orat)s substantiv) chan-)s to +roc)ss)s and th) +)o+,) invo,v)d. <han-) 7ana-)7)nt )44)ctiv),y ba,anc)s 4orc)s in 4avor o4 and a-ainst chan-) 0?)ttin-)r ; *rov)r, !""1N Stoddard ; Jarv)n+aa, !""12. 3h) +rinci+,)s o4 chan-) 7ana-)7)nt )s+)cia,,y a++,y to 6RP syst)7 i7+,)7)ntation. It is i7+ortant that th) )7+,oy))s r),at) to th) n)@ so4t@ar) )nviron7)nt. :n that condition and @ith b)tt)r chan-) 7ana-)7)nt +ractic)s, sta44 7otivation @i,, b) hi-h)r. As has b))n ar-u)d 0A++,)ton, !""%N Dav)n+ort, !""#N Ha77)r ; <ha7+y, !""#N Monta8)7i, <a7)ron, ; *u+ta, !""'N Fi,,cocks ; Syk)s, /$$$2, th) +artici+ation o4 th) +)o+,) a44)ct)d by th) syst)7
and kno@inth) that a +artici+ativ) 4or7 o4 busin)ss d)cision 7akin- 7i-ht ,)ad to +roc)ss)s ,)ads -a7)5+,ayin- b)havior i4 on) or to b)tt)r 7or) +arti)s try to in4,u)nc) d)cisions and a th) d)cision +roc)ss to arriv) at hi-h)r rat) o4 th)ir +r)4)rr)d so,ution acc)+tanc) ,at)r 0:KL)ary, /$$$2. *iv)n this on 0*uha, *rov)r, situation, @) su--)st that th) ?)ttin-)r, ; 3)n-, 7aCority o4 or-ani8ations !""%2. In 3ay,)r i7+,)7)ntin- an 6RP so,ution 0!""&2 +ossib,) r),i)d on a +artici+ativ) b)n)4its arisin)va,uation strat)-y. 4ro7 a &ypothesis 9' !rgani%ations +artici+ativ) ty+) apply formal evaluation o4 t)a7 structur) techni6ues other than inc,ud) th) conventional financial methods 7otivationa, in the E"P system selection i7+rov)7)nt o4 process7 ,oca, +artici+ation and att)ntion to 3h) )va,uation o4 in4or7ation individua, qua,ity syst)7s, )s+)cia,,y 6RP o4 @orkin- ,i4), as so,utions, is on) o4 th) rath)r @),, as th) di44icu,t +rob,)7s to tack,) in I3 n)c)ssary 7ana-)7)nt. N)v)rth),)ss, at att)ntion to ,)ast on) 7)thodo,o-y 4ro7 strat)-ic +ur+os) th) vast s)t o4 )va,uation and to r)ci+roca, t)chniqu)s 7ust b) chos)n in and coordinativ) ord)r to hav) a too, 4or an socia, ro,)s. :n )44)ctiv) and trans+ar)nt th) oth)r hand, it co7+arison o4 th) di44)r)nt has to b) not)d choic)s o4 action inv)sti-at)d.
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a++,i)d. It has b))n con4ir7)d that I3 )()cutiv)s @ho :n,y conv)ntiona, syst)7atica,,y co,,)ct)d in4or7ation and ana,y8)d it 4inancia, and 7ad) 7or) )44)ctiv) d)cisions )cono7ic than thos) @ho did not )va,uation t)chniqu)s a,on) 0Ran-anathan ; S)thi, /$$$2. &ypothesis A' SMEs apply @i,, not su44ic). less formal and less R)s)arch in I3 has )(t)nd)d th) comple1 evaluation ran-) o4 too,s to techni6ues than large organi%ations in the E"P inc,ud) system selection process7 +roductivity 7)asur)s, r)turn on 7ana-)7)nt SM6s ar) usua,,y 7uch 7or) and in4or7ation in4or7a, and unstructur)d in th)ir 7ana-)7)nt sty,) or )cono7ics to na7) on,y a 4)@ d)4inition o4 strat)-y. 3his a,,o@s th)7 to co7+)t) in a and various v)ry dyna7ic and co7+)titiv) ta(ono7i)s o4 )nviron7)nt throu-h hi-h 7)thods hav) b))n +ut 4or@ard 4,)(ibi,ity and r)s+onsiv)n)ss. 3his is a 7aCor +r)7is) 4or 0Bannist)r ; R)7)nyi, !"""N SM6s to b) a,@ays c,os) to Jon)s ; Hu-h)s, th)ir 7ark)ts and custo7)rs. R)-ardin- I3 inv)st7)nts, !"""N ?ontio, 7any SM6s o4t)n s))7 to ,ack !""'N La@,is, Mark, 3ho7as ; an )(+,icit I3 +,an or strat)-y, <ourth)yn, /$$!N or )v)n a d)4in)d I3 bud-)t R)7)nyi, !""!N 0Dans, /$$!2. Dans )v)n stat)s that d)cisions to ado+t a S)di-h5A,i, *ha4oor ; Pau,, +articu,ar t)chno,o-y ar) in 7any cas)s driv)n by +)rsona, /$$!2. attitud)s or +)rc)+tions o4 th) D)cision 7ak)rs 4ir7Ks o@n)r, rath)r than by t)nd to d)scrib) any 4or7a, cost5b)n)4it or th)ir d)cisions as strat)-ic ana,ysis. *ab,) and b)in- bas)d to a St)@art 0!"""2 +ro+os)d that a d)cisiona, s+)ci4icity attribut)d -r)at)r or to SM6s is ,)ss usa-) o4 4or7a, s7a,,)r )(t)nt 7od),s @h)n )va,uatin- SAP on instinct or RI# syst)7s. 3hus, @) +ro+os) individua, )(+)ri)nc)s. 3h) that SM6s a++,y ,)ss 4or7a, and ,)ss co7+,)( )va,uation 7or) co7+,)( th) d)cision, th) t)chniqu)s than ,ar-) or-ani8ations in th) 6RP 7or) ,ik),y this s))7s to b). F) syst)7 s),)ction +roc)ss. &ypothesis H' &igher fle1i)ility su--)st that a is valued higher )y smaller such d)4)ction organi%ations7 4ro7 th) so,id -round o4 rationa, d)cision5 As a,r)ady not)d, s7a,,)r or-ani8ations t)nd to b) 7or) 7akin- shou,d b) avoid)d. Aor 4,)(ib,) than ,ar-)r on)s. 3h)ir or-ani8ationa, structur) is ,)ss )v)ry 6RP ri-id and can b) chan-)d 7or) so4t@ar) d)cision, 4or7a, )asi,y. 3h) sa7) a++,i)s to th)ir busin)ss +roc)ss)s. )va,uation 3h)r)4or), and a,so b)caus) 7)thodo,o-i)s th)y 4ac) -r)at)r shou,d b) )nviron7)nta, unc)rtainty du)
to ,)ss)r in4,u)nc) 0*ab,) ; St)@art, !"""2, s7a,,)r or-ani8ations hav) th) n))d and a,so th) 7)ans to b) 7or) 4,)(ib,). As th) in4or7ation syst)7s in us) hav) to b) a,i-n)d @ith th) busin)ss strat)-y and th) curr)nt busin)ss +roc)ss)s, th)y a,so hav) to o44)r 7or) 4,)(ibi,ity to 4u,4i,, this r)quir)7)nt. 3h) in4or7ation syst)7s in s7a,,)r or-ani8ations shou,d th)r)4or) o44)r th) +ossibi,iti)s to i7+,)7)nt th) curr)nt busin)ss +roc)ss)s, @hich
7i-ht not n)c)ssari,y 4o,,o@ th) standards @hich ar) d)riv)d 4ro7 ,ar-)r or-ani8ations, and to b) chan-)d )asi,y in ord)r to acco77odat) chan-)s to th)s) +roc)ss)s. It can b) assu7)d that this n)c)ssary r)quir)7)nt 4or incr)as)d 4,)(ibi,ity @i,, a,so a44)ct th) )va,uation and s),)ction o4 6RP +acka-)s. &ypothesis N' Smaller organi%ations spend less effort during all stages of the decision0ma+ing process7
S7a,,)r or-ani8ations 4ac) 7or) s)v)r) r)strictions on th)ir r)sourc)s, inc,udin- a7onoth)rs, 4inancia, and hu7an r)sourc)s. 3his Rr)sourc) +ov)rtyS a,so constitut)s +art o4 th) or-ani8ationa, s+)ci4icity o4 s7a,,)r or-ani8ations 0*ab,) ; St)@art, !"""2. S,ack r)sourc)s ar) o4t)n scarc) or ni, 0Dans, /$$!2. It can th)r)4or) b) assu7)d that this
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4actor +,ays a ro,) in th) cont)(t o4 6RP s),)ction. 3his 7i-ht inc,ud), 4or )(a7+,), th) @ays in @hich in4or7ation r)-ardina,t)rnativ)s and th)ir r)s+)ctiv) qua,ity is -ath)r)d and a,so th) co7+osition and si8) o4 th) +roC)ct t)a7 r)s+onsib,) 4or th) d)cision 7akin-.
Austrian or-ani8ations conduct)d by th) Institut) o4 In4or7ation Proc)ssin-, D)+art7)nt o4 In4or7ation Busin)ss, =i)nna >niv)rsity o4 6cono7ics and Busin)ss Ad7inistration. Pr),i7inary r)su,ts conc)rnin- di44)r)nc)s in th) 6RP s),)ction +roc)ss in SM6s and ,ar-) or-ani8ations hav) a,r)ady b))n +ub,ish)d in B)rnroid)r and ?och 0/$$$2.
Aor th) )7+irica, @ork, th) d)si-n o4 a qu)stionnair) @as )7+,oy)d. :n co7+,)tion o4 th) +i,ot t)stin-, th) 7ai,into-)th)r @ith s)+arat), +r)+aid )nv),o+)s 4o,,o@)d. In a,, cas)s th) s)nior 7ana-)7)nt o4 th) I35 d)+art7)nt @as contact)d. 0&!#26i-ht hundr)d thirt))n Austrian s7a,,I7)diu7 and ,ar-)5si8) or-ani8ations @)r) addr)ss)d and a r)turn rat) o4 In th) n)(t !%U @as achi)v)d, @hich s)ction @) corr)s+onds to !#& va,id @i,, d)scrib) r)turns r)c)iv)d b)t@))n th) a++,i)d D)c)7b)r !""& and March 7)thodo,o-y. !""". 3h) data @as ana,y8)d 3his @i,, b) usin- a statistica, +acka-). 4o,,o@)d by Non+ara7)tric statistics, such th) as chi5squar), @)r) ca,cu,at)d introduction to t)st th) ind)+)nd)nc) o4 o4 an 6RP r)s+ons)s b)t@))n s7a,, or d)cision5 7)diu75si8)d and ,ar-) 7akinor-ani8ations. Fh)n ana,y8in+roc)ss th) str)n-th o4 a r),ationshi+ 7od),. b)t@))n t@o variab,)s th) S+)ar7an rank corr),ation METHODOL co)44ici)nt has b))n us)d OGY inst)ad o4 th) P)arson corr),ation co)44ici)nt b)caus) 3his cha+t)r this ana,ysis has b))n dra@s on r)su,ts conduct)d on,y @ith ordina, 4ro7 r)c)nt sca,)d variab,)s. Aor studi)s co7+arison o4 t@o 06v)rdin-)n )t ind)+)nd)nt sa7+,)s that a,., /$$$N *ab,) @)r) not nor7a, distribut)d ; St)@art !"""N 0t)st)d usin- ?o,7o-orov5 ?no,7ay)r, von S7irnov2, a Mann5Fhitn)y >5 Arb, ; Ei77)r,i, t)st @as )7+,oy)d. !""%2 and )s+)cia,,y 4ro7 :4 th) !#& ans@)rs r)c)iv)d, r)su,ts o4 an // 0or !1."U2 b),on-)d to )7+irica, s7a,, or 7)diu75si8)d inv)sti-ation o4 or-ani8ations. 3h) r)7ainin6RP d)cision5 7aCority 0!!' qu)stionnair)s or 7akin- in &G.!U2 @as c,assi4i)d as ,ar-)
)nt)r+ris)s. account 4or th) di44)r)nt sa7+,) <,assi4ication @as si8)s. +)r4or7)d usindata on nu7b)r o4 )7+,oy))s and A DECISION4 turnov)r 4o,,o@inMA-ING PROCESS th) d)4inition +ro+os)d by th) MODEL <o77ission o4 th) 6uro+)an Makin- d)cisions is not a sin-,) <o77unity activity that tak)s +,ac) a,, at 0!""'2. A onc). 3h) +roc)ss consists o4 cons)qu)nc) s)v)ra, di44)r)nt activiti)s that arisin- 4ro7 th) tak) +,ac) at di44)r)nt ti7)s di44)r)nt -rou+ and that 7ay b) r)+)at)d. A si8)s is that th) -)n)ra, +ur+os) sta-) 7od),, +r)cision o4 th) @hich co7+ris)s a,, 4o,,o@in)sti7at)s activity ty+)s, bas)d on conc)rnin- th) Moorh)ad and *ri44in 0!""&2 +o+u,ation and *ri44in and Pustay 0!""'2 charact)ristics o4 can b) s))n in Ai-ur) !. 3his ,ar-) or-ani8ations is 7od), has b))n 4or7a,i8)d by a ,ik),y to b) 7or) +roc)ss 7od),in- t)chniqu) r),iab,) co7+ar)d us)d by so7) o4 th) ,)adintoo,s in th) 4i),d o4 busin)ss to th) cas) o4 +roc)ss )n-in))rin- such as s7a,,)r or-ani8ations, but SAP RI# 0SAP A*2, ARIS 0IDS Pro4. Sch))r *7bH2, th) statistica, Liv)Mod),IAna,yst 0Int),,icor+ t)sts )7+,oy)d
Inc.2 and =isio
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individua, actions ar) syst)7atic and ,o-ica, in th) +ursuit o4 -oa,s. Rationa,ity has 0=isio <or+.2. Proc)ss 7od),s b))n a 4unda7)nta, assu7+tion in 7any disci+,in)s ,ik) 7ad) @ith this )cono7ics, or-ani8ationa, t)chniqu) ar) th)ory and cor+orat) strat)-y ca,,)d )v)nt5 0Ran-anathan ; S)thi, /$$$2. driv)n +roc)ss At th) ,)v), o4 individua, chains 06P<sN d)cisions, rationa,ity i7+,i)s Aa,st, !"""N -ath)rin- in4or7ation +)rtin)nt Sch))r, !""&2. to th) d)cision, ana,y8in- th) 3his rationa, or nor7ativ) 7od), in4or7ation -ath)r)d, and -)n)ratin- and )va,uatino4 d)cision 7akin- 4o,,o@s a a,t)rnativ)s to 7ak) a 4ina, syst)7atic, st)+5 choic). Boynton and E7ud by5st)+ a++roach 0!"&%2 r)+ort)d that 7any o4 and su--)sts that th) assu7+tions and +r)7is)s 7ana-)rs a++,y that und)r,i) th) curr)nt +,annin- ,it)ratur) r)4,)ct a ,o-ic and rationa, 7od), o4 or-ani8ationa, rationa,ity in 7akin- th) b)st d)cision +roc)ss)s. R)c)nt 4indin-s r)+ort +ositiv) i7+acts d)cisions. o4 rationa,ity on d)cision Rationa,ity )44)ctiv)n)ss in I3 d)cisions i7+,i)s that 0Ran-anathan ; S)thi, /$$$2 individua, and in th) strat)-ic b)havior has 7ana-)7)nt ar)a 0D)an ; so7) +ur+os) Shar47an, !""'N Pri)7, and that Rash))d, ; ?otu,ic, !""12.
1 8 6 -
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+igure ;: A -)n)ra, +ur+os) d)cision 7od), 3h) rationa, d)cision57akin- 7od), +ro+os)d su++,i)s a structura, d)si-n, r)s+)ctiv),y, 4ra7)@ork, @hich @i,, b) us)d to or-ani8) th) 6RP so4t@ar) d)cision57akin-5r),at)d in4or7ation -ath)r)d. 4tages in ecision $a#ing
!2 Pro)lem Identification and 4ormulation 3h) rationa, d)cision57akin+roc)ss b)-ins @ith th) stat)7)nt o4 +rob,)7s and situationa, -oa,s.
1.
2. /2 Collecting Information 3h) s)cond sta-) is @h)r) a,, in4or7ation
3.
4.
5. 6. 7.
r),)vant 4or th) +rob,)7 id)nti4i)d is co,,)ct)d. It 7ay b) n)c)ssary to r)stat) th) +rob,)7 4or7u,ation. Aor this cas) th)r) is a 4))dback to Sta-) !. #2 efinition of Alternatives In this sta-) a,, r),)vant a,t)rnativ) so,utions to th) id)nti4i)d +rob,)7 ar) conc)iv)d usinth) co,,)ct)d in4or7ation. It 7ay not b) +ossib,) to conc)iv) a,, r),)vant a,t)rnativ) so,utions @ith th) in4or7ation co,,)ct)d. A,so, th) +rob,)7 4or7u,ation 7ay b) inco7+,)t). Aor both cas)s a 4))dback ,ink )(ists )ith)r to Sta-) / or Sta-) #. G2 Evaluation and Comparison of Alternatives 6v)ry a,t)rnativ) so,ution n))ds to b) ana,y8)d in ord)r to a,,o@ a co7+arison. Durin- ana,y8init 7i-ht occur that th) +rob,)7 is not @),,5d)4in)d 0back to Sta-) !2 or that in4or7ation 7ay b) 7issin- 0back to Sta-) /2 or that oth)r a,t)rnativ)s 7ust b) 4ound 0back to Sta-) #2. 12 Choice 3h) s),)ction is 7ad) @ithin th) various so,ution a,t)rnativ)s. '2 Implementation At this sta-) th) d)cision is +ut into )44)ct. %2 Control 3h) +ro-r)ss o4 th) so,ution n))ds to b) contro,,)d and v)ri4i)d @ith th) id)nti4i)d +rob,)7 4or7u,ation.
Si7onKs 0!"'$2 @),,5kno@n d)cision 7od), d)scrib)s th) 4o,,o@in- 4our di44)r)nt sta-)s int),,i-)nc), d)si-n, choic) and i7+,)7)ntation. 3h) int),,i-)nc) sta-) co7+ris)s Sta-)s ! and / o4 th) abov)5+r)s)nt)d 7od),. Sta-)s # and G b),on- to th) d)si-n sta-) in Si7onKs 7od),. Sta-) 1 corr)s+onds to Si7onKs choic) sta-) and Sta-) ' corr)s+onds to th) i7+,)7)ntation sta-). Sta-) % 0contro,2 has not b))n inc,ud)d in Si7onKs 7od),.
A MODIFICATION OF THE GENERAL DECISION4 MA-ING PROCESS MODEL

As+)cts o4 6RP d)cision57akin- can b) cat)-ori8)d in th) 4o,,o@in- 7ain ar)as Technical 3his ar)a co7+ris)s a,, hard@ar) and so4t@ar) r),at)d r)sourc)s n))d)d to introduc) th) 6RP syst)7 to th) or-ani8ation. !rgani%ational 3h) i7+,)7)ntation o4 an 6RP syst)7 induc)s or-ani8ationa, chan-)s, @hich caus)s dir)ct cons)qu)nc)s on in4or7ation 4,o@, kno@,)d-), cu,tur), +)o+,), and tasks. 3h)r) is a 7utua,, bidir)ctiona, r),ationshi+ b)t@))n th) t)chnica, and or-ani8ationa, as+)cts 0Dav)n+ort, !""&2.
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th) +ast !$ y)ars. It has b))n indicat)d 0*uha )t a,7, !""%2 An 6RP d)cision that not on,y th) t)chnica, +roduc)s not on,y as+)cts +,ay a si-ni4icant ro,) in a succ)ss4u, d)cision and ,ar-) t)chnica, chan-)s but a,so i7+,)7)ntation +roc)ss. A,so th) )44)ctiv) ba,ancin- o4 4orc)s ,ar-) in 4avor o4 a chan-) ov)r 4orc)s or-ani8ationa, o4 r)sistanc) is an i7+ortant chan-)s 07ana-)ria, and task. :r-ani8ations, -rou+s, or individua,s @i,, r)sist chan-)s institutiona, that ar) +)rc)iv)d as a thr)at chan-)s2 that a44)ct a,7ost a,, 0Dav)n+ort, !""#N *uha )t a,.2. )7+,oy))s in an A,, su--)stions to ov)rco7) this +rob,)7 in ,it)ratur) shar) or-ani8ation. th) o+inion that int)-ratinMany a-)nts 4ro7 )v)ry busin)ss unit or-ani8ations in th) 4irst sta-) o4 th) d)cision hav) und)r5 +roc)ss is a 7aCor su++osition. tak)n an 6RP syst)7 d)cision 3o und)r,in) th) i7+ortanc) o4 this 7att)r, @) th)r)4or) and i7+,)7)ntation )(t)nd th) -)n)ra, +ur+os) 7od), and d)4in) a n)@ sta-) 0o4t)n to-)th)r ca,,)d co7+osition o4 th) @ith 7aCor busin)ss +roc)ss +roC)ct t)a7, @hich is s)t b)t@))n th) 4or7)r Sta-)s ! chan-) initiativ)s2 ov)r and / 0s)) Ai-ur) /2.
1 8 9 -
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+igure 9: An 6RP d)cision57akin- +roc)ss 7od), In th) n)(t s)ction @) @i,, d)scrib) this n)@,y introduc)d sta-) and 4our sta-)s 4ro7 th) -)n)ra, 7od), und)r th) +)rs+)ctiv) o4 6RP d)cision di44)r)nc)s b)t@))n s7a,, to 7)diu7 and ,ar-) or-ani8ations. 3h) activiti)s 4urth)r ana,y8)d in this cha+t)r ar) )nu7)rat)d in Ai-ur) /.
EMPIRICAL RESULTS
In this s)ction and 4or )v)ry sta-) o4 th) 6RP d)cision57akin- +roc)ss 7od),, @) @i,, r)+ort 4indin-s contributin- to th) +ro+os)d r)s)arch hy+oth)s)s. 4tage &@Pro7ect tea' Co'position As sho@n in 0B)rnroid)r ; ?och, /$$$2, 4our di44)r)nt ty+)s 4or th) structur) o4 th) s),)ction -rou+ @)r) id)nti4i)d 4ro7 7or) s+)ci4ic data -ath)r)d
1. 3o+57ana-)7)nt d)cisions @ith th) inc,usion o4 )(t)rna, consu,tants

0ado+t)d by !%.'U o4 th) or-ani8ations2.
2. <)ntra,i8)d d)cision 7akin- charact)ri8)d by a stron- 4ocus on th) I3 3. 4.

and or-ani8ationa, d)+art7)nt @ith on,y s7a,, +artici+ation o4 oth)r int)rna, d)+art7)nts and no )7+,oy7)nt o4 consu,tants 0!$."U2. Partici+ativ) d)cision57akin- 0#1.#U2. :th)rs, r)s+)ctiv),y div)rs) structur)s @ithout a +)rc)ivab,) c,assi4ication 0#'.!U2.
&ypothesis B 0RMost co7+ani)s ar) choosin- a +artici+ativ) )va,uation strat)-y in th) 6RP syst)7 d)cision57akin- +roc)ssS2 is str)n-th)n)d by th) 4act that +artici+ativ) d)cision57akin- has b))n )7+,oy)d by th) 7aCority o4 th) or-ani8ations. No di44)r)nc)s @)r) 4ound indicatin- that SM6s uti,i8) th) +artici+ativ) 4or7 7or) or ,)ss )(t)nsiv),y than ,ar-) or-ani8ations.
<onsid)rin- &ypothesis N 0RS7a,,)r or-ani8ations s+)nd ,)ss )44ort durin- a,, sta-)s o4 th) d)cision57akin- +roc)ssS2, th) study has sho@n that s7a,,)r or-ani8ations us) +roC)ct t)a7s 4or )va,uation and d)cision 7akin- @hich ar) consid)rab,y s7a,,)r 0B)rnroid)r ; ?och, /$$$2. In SM6s, th) t)a7 si8) is in th) 7)an G.&/ co7+ar)d to ".&/ +)rsons 4or ,ar-)r or-ani8ations. As 4)@)r +)rsons 7)an ,)ss costs, this a,r)ady contribut)s to th) hy+oth)sis in this )ar,y sta-) o4 th) d)cision57akin- +roc)ss. It can a,so b) not)d that SM6s t)nd to ado+t a c)ntra,i8)d d)cision @ithin th) I3 and or-ani8ationa, d)+art7)nt 7or) o4t)n in r),ation to ,ar-) or-ani8ations, 7ayb) b)caus) o4 )ith)r a r)su,tin- r)duction in costs or a ,ack o4 kno@5ho@ in oth)r d)+art7)nts.
4tage /@Collecting <nfor'ation 3h) r)su,ts o4 th) )7+irica, study str)n-th)n &ypothesis N 0RS7a,,)r or-ani8ations s+)nd ,)ss )44ort durin- a,, sta-)s o4 th) d)cision57akin- +roc)ssS2 in th) cont)(t o4 in4or7ation -ath)rin-. 3h) data sho@)d that s7a,,)r or-ani8ations )7+,oy ,)ss div)rs) a++roach)s and a,so sho@ a t)nd)ncy 4or ,)ss )(+)nsiv) 7)thods 0B)rnroid)r ; ?och, /$$$2. Aor )(a7+,), th) ana,ysis o4 a +rototy+) or an )va,uation by )(t)rna, consu,tants is us)d )(t)nsiv),y by ,ar-)r or-ani8ations on,y. M)thods such as +r)s)ntations by 6RP syst)7 v)ndors and s)ndin- o4 a r)quir)7)nts cata,o-u) ar), in
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hints at a n))d 4or 7or) s+)cia,i8)d and ,)ss co7+,)( contrast, us)d by syst)7s. n)ar,y a,, or-ani8ations. In 4tage @E!aluation an" Co'parison of &lternati!es th) 7)an, s7a,,)r or-ani8ations %%.#U +)rc)nt o4 th) us)d #.$1 or-ani8ations us)d so7) sort di44)r)nt o4 4or7a, )va,uation 7od), in a++roach)s, th) 6RP d)cision57akin,ar-)r on)s #.&& +roc)ss. Fh)n )(c,udin0out o4 & di44)r)nt conv)ntiona, 4inancia, +ossibi,iti)s 7)thods, th) rat) dro+s to +rovid)d2. #$U, @hich contradicts &ypothesis 9 0R:r-ani8ations 4tage C@ a++,y 4or7a, )va,uation efinition of t)chniqu)s oth)r than &lternati!es conv)ntiona, 4inancia, 7)thods in th) 6RP syst)7 <onsid)r)d s),)ction +roc)ssS2. a,t)rnativ)s in th) d)cision5 In ord)r to inv)sti-at) 7akin- +roc)ss hypothesis A 0RSM6s a++,y o4 Austrian ,)ss 4or7a, and ,)ss co7+,)( )nt)r+ris)s @)r) )va,uation t)chniqu)s than 6RP so,utions ,ar-) or-ani8ations in th) 6RP 4ro7 SAP 0&%.1U syst)7 s),)ction +roc)ssS2, o4 th) th) di44)r)nt ty+)s o4 4or7a, or-ani8ations2, )va,uation a++roach)s in Baan 0GG.1U2, SM6s and ,ar-) or-ani8ations :rac,) 0#/.1U2, n))d to b) ana,y8)d. 3h) data Navision sho@)d that s7a,,)r 0!'.$U2, J.D. )nt)r+ris)s us) 4or th) 7ost 6d@ards 0"./U2, +art on,y static inv)st7)nt P)o+,)so4t 7)thods, @hi,) ,ar-) 01.$U2 and or-ani8ations a,so )7+,oy oth)r, s7a,,)r dyna7ic 7)thods or oth)r su++,i)rs 7)thods such as uti,i8ation 0G%.!UN rankin- ana,ysis or )v)n r)a, B)rnroid)r ; o+tions 03aud)s, !""&N ?och, /$$$2. A 3ri-)or-is, !""'2. 3h) us) o4 si7i,ar situation th)s) 7)thods corr),at)s @as +r)s)nt)d by si-ni4icant,y @ith th) si8) o4 th) D)+art7)nt th) or-ani8ation. &ypotheses o4 In4or7ation A is th)r)4or) stron-,y 6n-in))rin- at su++ort)d by th) r)su,ts o4 th) Institut) o4 our study. It can b) assu7)d In4or7ation that s7a,,)r or-ani8ations Syst)7s at th) o4t)n r),y on h)r7)n)utic >niv)rsity o4 B)rn 0?no,7ay)r a++roach)s 0Bannist)r ; )t a,., !""%2 4or R)7)nyi, !"""2, d)4in)d as 7)thods o4 int)r+r)tation o4 S@iss or-ani8ations. In data @hich us) nonstructur)d and non4or7a, a++roach)s to both studi)s a stron- +r)s)nc) d)cision 7akin- at th) o4 oth)r, s7a,,)r )(+)ns) o4 th) usa-) rat) conc)rnin- 7or) co7+,)( su++,i)rs @as 7)thods. d)t)ct)d. 3his
or-ani8ationsS2, s)v)ra, as+)cts d)a,in- @ith 4,)(ibi,ity @)r) rat)d di44)r)nt,y. *oa,s to b) achi)v)d by th) 6RP i7+,)7)ntation d)a,in- @ith this +oint, ).-., incr)as)d or-ani8ationa, 4,)(ibi,ity or i7+rov)d innovation ca+abi,iti)s, @)r) rat)d as ,)ss i7+ortant by s7a,,)r or-ani8ations. Fhi,) this 7i-ht s))7 count)rintuitiv) at 4irst -,anc), it su++orts th) notion that s7a,,)r or-ani8ations ar) 7or) 4,)(ib,) 4ro7 th) start and th)r)4or) do not +)rc)iv) an 6RP +acka-) as a 7)ans to incr)asin- th)ir 4,)(ibi,ity, in contrast to ,ar-)r or-ani8ations. :n th) oth)r hand, >sinth) r)su,ts charact)ristics o4 th) 6RP syst)7s conc)rn)d @ith th) o4 th) study 4,)(ibi,ity o4 th) so4t@ar) its),4, und)rtak)n, di44)r)nc)s in th) ).-., ada+tabi,ity to busin)ss @)i-hts attribut)d +roc)ss)s and 4,)(ibi,ity to 4utur) chan-)s, ar) rat)d to s),)ction hi-h)r. It can b) s))n that crit)ria @)r) achi)vin- a 4it b)t@))n th) obs)rv)d +roc)ss)s i7+,)7)nt)d by th) 0B)rnroid)r ; 6RP so,ution and th) ?och, /$$$2. or-ani8ationKs idiosyncratic <ontributin- to @ays o4 @orkin- is 7or) &ypothesis H 0RHi-h)r 4,)(ibi,ity i7+ortant 4or s7a,,)r is va,u)d hi-h)r or-ani8ations, @hich 7or) o4t)n hav) so7) s+)ci4ic, not by s7a,,)r industry5 standard 3h) ,ast stat)7)nt indir)ct,y su++orts &ypothesis N 0RS7a,,)r or-ani8ations s+)nd ,)ss )44ort durin- a,, sta-)s o4 th) d)cision57akin+roc)ssS2, as th) a++,ication o4 7or) co7+,)( 7od),s @ou,d n)c)ssitat) 7or) )44ort.
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+roc)ss)s. 3h)s) r)su,ts ar) a,so in accordanc) @ith th) 4indin-s o4 anoth)r surv)y on 6RP ado+tion in 6uro+)an 7idsi8) co7+ani)s 06v)rdin-)n )t a,., /$$$2. 3h) authors a,so 4ound that 4it @ith curr)nt busin)ss +roc)ss)s and 4,)(ibi,ity @)r) th) hi-h)st rat)d crit)ria 4or in4or7ation syst)7 s),)ction.
4or s7a,,)r su++,i)rs ar) in accordanc) @ith th) 4indin-s o4 a co7+arab,) 6uro+)an surv)y o4 7idsi8) co7+ani)s 06v)rdin-)n )t a,., /$$$2.
P)rtainin- to &ypothesis H 0RHi-h)r 4,)(ibi,ity is va,u)d hi-h)r by s7a,,)r or-ani8ationsS2 and in accordanc) @ith th) r)su,ts d)tai,)d 4or Sta-) D 0)va,uation and co7+arison o4 a,t)rnativ)s2, th) hi-h)r ratino4 SM6s 4or 4,)(ibi,ity5r),at)d crit)ria conc)rnin- 6RP syst)7 a,t)rnativ)s a,so a44)cts s7a,,)r or-ani8ationsK s),)ction o4 v)ndors. Aor )(a7+,), th) so4t@ar) su++,i)d by Baan, @hich is b),i)v)d to b) 7or) 4,)(ib,) than th) riva, SAP +roduct 0Markus ; <or)n),is, /$$$2, is chos)n 7or) o4t)n. SAP RI# on th) oth)r hand is 4tage E@Choice s),)ct)d 7or) o4t)n by ,ar-) or-ani8ations. 3h) situation &ypothesis N 0RS7a,,)r r)-ardinth) so,utions chos)n or-ani8ations s+)nd ,)ss )44ort durin- a,, sta-)s o4 th) is si7i,ar @ith d)cision57akin- +roc)ssS2 th) so,utions conc)rnin- Austrian co7+ani)s consid)r)d. is +rov)d @h)n inv)sti-atinSAPKs ov)ra,, duration and costs 4or do7inanc) o4 th) 7ark)t+,ac) d)cision 7akin- inc,udin- a,, +has)s, @hich ar) si-ni4icant,y @as c,)ar ,o@)r 4or SM6s. 3h) 7)an 0chos)n by duration is !%.1% @))ks '".&U o4 th) co7+ar)d to #$.$G @))ksN th) or-ani8ations2. costs ar) about #$.$$$ 6uro A-ain, s7a,,)r co7+ani)s hav) co7+ar)d to %%.$$$ 6uro 4or ca+tur)d quit) a ,ar-)r or-ani8ations. Fhi,) a,so th) r)su,ts -iv)n 4or s)v)ra, ,ar-) 7ark)t +has)s abov) hav) hint)d at shar) 0/#.#U2 th) corr)ctn)ss o4 this @ith :rac,) hy+oth)sis, th)s) 4indin-s 0!#.&U2 and +rov) th) di44)r)nc) b)t@))n Baan 0!!./U2 or-ani8ations o4 di44)r)nt si8)s. b)inth) on,y oth)r cont)nd)rs o4 CONCLUSION ,ar-)r si8) 0B)rnroid)r ; In this cha+t)r th) d)cision5 ?och, /$$$2. 7akin- +roc)ss 4or th) Both th) ,)adin- )va,uation and s),)ction o4 +osition o4 SAP 6RP +acka-)s has b))n and th) )(+,or)d. *iv)n th) r),ativ),y ,ar-) i7+ortanc) o4 6RP syst)7 7ark)t shar) i7+,)7)ntation 4or busin)ss
succ)ss in 7ost or-ani8ations, this ar)a s))7s o4 hi-h i7+ortanc) but has not y)t r)c)iv)d +articu,ar int)r)st 4ro7 th) IS r)s)arch co77unity. 3h)r)4or), @) hav) +r)s)nt)d a 4ra7)@ork 4or th) s),)ction +roc)ss bas)d on acad)7ic ,it)ratur) and th) r)su,ts o4 an )7+irica, study. S+)cia, consid)ration @as -iv)n to th) di44)r)nc)s b)t@))n s7a,,I7)diu7 and ,ar-)
or-ani8ations. It @as assu7)d that th)s) di44)r in s)v)ra, +has)s o4 th) d)cision57akin+roc)ss. As 7ost 6RP syst)7 su++,i)rs ar) today strivin- to +)n)trat) th) 7ark)t s)-7)nt o4 s7a,, to 7)diu7 )nt)r+ris)s, @ith th) 7ark)t 4or ,ar-) or-ani8ations 7ost,y saturat)d, this +oint a,so @arrants +articu,ar int)r)st. F) hav) 4or7u,at)d 1 hy+oth)s)s c,os),y r),at)d to +ractica, +rob,)7s, @hich @)r) d)riv)d 4ro7 a r)vi)@ o4 r)c)nt acad)7ic ,it)ratur) and su--)stions 4ro7 stud)nts, +ractition)rs and r)s)arch)rs. >sin- a 4ra7)@ork su++,i)d by a d)cision57akin- +roc)ss 7od), and r)su,ts o4 )7+irica, studi)s, th) hy+oth)s)s r),)vant 4or )ach sta-) @)r) inv)sti-at)d. Most o4 th) di44)r)nc)s uncov)r)d @)r) caus)d by th) s+)ci4iciti)s o4
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s7a,,)r or-ani8ations, 4or )(a7+,), th)ir ,ack in r)sourc)s o4 both 4inancia, and hu7an natur).
Aor )(a7+,), it has b))n 4ound that @hi,) a hi-h Aurth)r r)s)arch @ou,d b) +)rc)nta-) o4 n))d)d to d)a, @ith th) or-ani8ations ado+ts so7) sort di44)r)nc)s b)t@))n s7a,,I7)diu7 and ,ar-) o4 +artici+ativ) 4or7 o4 d)cision or-ani8ations in ,at)r +has)s o4 7akin-, as is a,so th) 6RP syst)7 ,i4) cyc,). 6s+)cia,,y i7+,)7)ntation and +ro+os)d by 7any r)s)arch)rs usa-) o4 th) chos)n +acka-) and +ractition)rs, 7i-ht a,so di44)r b)t@))n th)s) ty+)s o4 or-ani8ations. 3h) s7a,,)r 4indin-s shou,d th)n b) or-ani8ations cond)ns)d into on) coh)r)nt sho@ a hi-h)r 4ra7)@ork 4or th) @ho,) 6RP t)nd)ncy to a c)ntra,i8)d 4or7 ,i4) cyc,) in or-ani8ations. c)nt)r)d in th) I3 d)+art7)nt and a,so us) t)a7s o4 REFERENCES 7uch s7a,,)r si8) in th) @ho,) Aa,st van d)r, F. M. P. +roc)ss. In 0!"""2. Aor7a,i8ation and addition, th) v)ri4ication o4 )v)nt5 driv)n d)cision in this +roc)ss chains. Information -rou+ o4 s7a,,)r and Soft-are Technology, G!, or-ani8ations is '#"5'1$. bas)d on ,)ss A++,)ton, 6. L. 0!""%2. Ho@ to co7+,)(, 4or7a, surviv) 6RP. atamation, and )(+)nsiv) G#0#2, 1$51#. 7)thods o4 Bannist)r, A. and R)7)nyi, D. in4or7ation 0!"""2. =a,u) +)rc)+tion in I3 -ath)rin-. 3h) inv)st7)nt d)cisions. The crit)ria 4or th) Electronic Journal of s),)ction o4 a Information Systems +articu,ar 6RP Evaluation, /0/2. syst)7 @)r) a,so B)rnroid)r, 6. and ?och, S. di44)r)nt, as 0/$$$2. Di44)r)nc)s in s7a,,)r charact)ristics o4 th) 6RP or-ani8ations, syst)7 s),)ction +roc)ss @hich 7ost,y ar) b)t@))n s7a,, or 7)diu7 and 7or) 4,)(ib,) ,ar-) or-ani8ations. In today and hav) a Proceedings of the Si1th +r)ssin- n))d to Americas Conference on cons)rv) this, do Information Systems, !$//5 not s)) an 6RP !$/&. Lon- B)ach, <a,i4ornia. +acka-) as Boynton, A. <. and E7ud, R. o44)rinth)7 a F. 0!"&%2. In4or7ation chanc) to b)co7) t)chno,o-y +,annin- in th)
7or) 4,)(ib,) but d)7and a hi-h 4,)(ibi,ity 4ro7 th) so4t@ar) its),4, so as to b) ab,) to ada+t it to th)ir curr)nt, not n)c)ssari,y industry5standard busin)ss +roc)ss)s and to b) ab,) to quick,y ada+t to n)@ +roc)ss chan-)s th) )nviron7)nt 7i-ht 7ak) n)c)ssary. 3h) d)cision57akin+roc)ss ov)ra,, can b) sho@n to tak) both ,)ss ti7) and cost 4or s7a,,)r or-ani8ations.
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Monta8)7i, A. R., <a7)ron, D. A. and *u+ta, ?. M. 0!""'2. An )7+irica, study o4 4actors a44)ctinso4t@ar) +acka-) s),)ction. Journal of Management Information Systems, !#0!2, &"5!$'. La@,is, P. ?., Moorh)ad, *. and *ri44in, R. Mark, ?. 6., F. 0!""&2. !rgani%ational 3ho7as, D. A. and <ourth)yn, 3. Behavior,Managing People 0/$$!2. A 4or7a, and !rgani%ations 04i4th )dition2. Boston, MA +roc)ss 4or )va,uatin- <:3S Hou-hton Mi44,in <o7+any. :KL)ary, D. 6. 0/$$$2. *a7) so4t@ar) +,ayin- b)havior in +roducts. IEEE Computer, #G012, r)quir)7)nts ana,ysis, )va,uation and syst)7 choic) 1&5'#. Markus, L. M. and 4or )nt)r+ris) r)sourc) +,anninsyst)7s. In <or)n),is, 3. Proceedings of the 9Bst 0/$$$2. 3h) International Conference on )nt)r+ris) Information Systems, /"15 syst)7s )(+)ri)nc)BAro7 #&1. Brisban), Austra,ia. Pi)rr) Audoin <ons)i,. 0!"""2. ado+tion to E"P Soft-are CC (ermany, succ)ss. In E7ud, R. 06d.2, The E"P Soft-are Industry in (ermany, Mar+ets and 4raming The Strategies BCCD09EEA. Munich omains of IT PD<. Management Poston, R. and *rabski, S. "esearch' 0/$$$2. 3h) i7+act o4 (limpsing The )nt)r+ris) r)sourc) +,annin4uture through syst)7s on 4ir7 +)r4or7anc). The Past. In Proceedings of the <incinnati, :H International Conference on Pinna4,)( Information Systems, G%"5 6ducationa, G"#. Brisban), Austra,ia. R)sourc)s.
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644ici)ncy i7+rov)7)nt in 7anua, @ar)hous)s throu-h 6RP syst)7s i7+,)7)ntation Pri)7, R. and r)d)si-n o4 th) ,o-istics L., +roc)ss)s. $ogistics Rash))d, Information Management, A. M. A. !/012, #'%5#%%. and Scott, J. 6. 0!"""2. 3h) ?otu,ic, A. Ao(M)y)r Dru-sK bankru+tcy *. 0!""12. Fas it a 4ai,ur) o4 6RPZ. In Rationa,ity Proceedings of the 4ifth in Americas Conference on strat)-ic Information Systems, d)cision //#5//1. Mi,@auk)), +roc)ss)s, Fisonsin. )nviron7) S)di-h5A,i, S., *ha4oor, A. nta, and Pau,, R.A. 0/$$!2. dyna7is7 So4t@ar) 6n-in))rinand 4ir7 M)trics 4or <:3S5Bas)d +)r4or7an Syst)7s. IEEE Computer, c). #G012, GG51$. Journal of Si7on, H. A. 0!"'$2. The Managem #e- Science of Management ent, /!012, ecision. N)@ Qork Har+)r "!#5"/". Ran-anathan, <. ; Roy. Stoddard, D. B. and Jarv)n+aa, and S)thi, =. S. L. 0!""12. Busin)ss +roc)ss 0/$$$2. r)d)si-n 3actics 4or 7ana-inAss)ssinth) radica, chan-). Journal of i7+act o4 d)cision +roc)ss Management Information on )44)ctiv)n)ss Systems, !/0!2, &!5!$%. 3aud)s, A. 0!""&2. So4t@ar) o4 strat)-ic I3 -ro@th o+tions. Journal of d)cisions A Management Information trian-u,ation Systems, !10!2, !'15!&'. a++roach. In 3ay,)r, J. <. 0!""&2. Proceedings of Partici+ativ) d)si-n ,inkinthe BPR and SAP @ith an S3S International a++roach. Conference on Journal of !rgani%ational Information Change, !!0#2, /##5/G1. Systems. 3ri-)or-is, L. 0!""'2. "eal Brisban), !ptions' Managerial Austra,ia. R)7)nyi, D. S. J. 4le1i)ility and Strategy in 0!""!2. A (uide "esource Allocation. to Measuring and <a7brid-), MA MI3 Pr)ss. Managing IT Benefits. :(4ord Fi,,cocks, L. P. and Syk)s, R. 0/$$$2. 3h) ro,) o4 th) <I: and N<< B,ack@),,. I3 4unction in 6RP. Ri88i, A. and Communications of the ACM, Ea7boni, R. G#0G2, #/5#&. 0!"""2.
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Chapte r K<<<: & 4tu"( of the ERP 4electi on Proces s in .e, 6ealan "
)(+,oratory cas) studi)s on th) 6RP s),)ction +roc)ss in N)@ E)a,and 0NE2 su--)st that th) s),)ction o4 6RP -uid)s th) i7+,)7)ntation +roc)ss. It is a,so )vid)nt 4ro7 th) study 4indin-s that 7ost N)@ E)a,and or-ani8ations s),)ct th)ir consu,tants and ,)t th)7 -uid) th) 6RP s),)ction, i7+,)7)ntation, as @),, as +ost5i7+,)7)ntation +roc)ss.
INTRODUCTION AND *AC-GROUND
3h) 4ocus o4 this study is to d)v),o+ an und)rstandin- o4 th) s),)ction +roc)ss o4 6RP syst)7s 4or SM6s in N)@ E)a,and. A cas) study a++roach is us)d h)r) to co,,)ct data in r),ation to th) invo,v)7)nt o4 di44)r)nt int)r)st -rou+s in th) s),)ction +roc)ss o4 6RP OVERVIEW syst)7s. N)@ E)a,and $aha 4ha#ir co7+ani)s hav) r)a,i8)d th) Mass)y tru) b)n)4its o4 th) us) o4 6RP >niv)rsity, N)@ 4or 7ana-inth)ir busin)ss E)a,and o+)rations. 3h) curr)nt rat) o4 Liaquat Hossain 6RP i7+,)7)ntation in N)@ Syracus) E)a,and su--)sts that about >niv)rsity, >SA %1U o4 ,ar-) co7+ani)s hav) i7+,)7)nt)d and so7) hav) <o+yri-ht . +,ann)d 4or 6RP /$$/, Id)a *rou+ i7+,)7)ntation. A r)c)nt 6RP Pub,ishin-. surv)y in N)@ E)a,and su--)sts that th) to+ thr)) 3his study r)asons 4or i7+,)7)ntin+rovid)s an inc,ud)s i7+rovin- custo7)r )(+,oratory s)rvic) or str)a7,inininv)sti-ation o4 o+)rations, r)ducinth) )nt)r+ris) o+)rationa, )(+)ns)s or an r)sourc) +,annin- incr)as) in )44ici)ncy, and 06RP2 so4t@ar) -ainin- co7+)titiv) advanta-) s),)ction +roc)ss 0Mi,,s, !"""N F),,s, !"""2. in N)@ E)a,and. A bri)4 back-round to-)th)r @ith th) A r)vi)@ o4 th) industry 7ain 4)atur)s o4 ,it)ratur) su--)sts that th) 6RP is +rovid)d. hi-h5)nd 7ark)t 4or 6RP in It is con4)rr)d in N)@ E)a,and is saturat)d. Aor this study that this r)ason, 6RP v)ndors ar) th) s),)ction and +,annin- 4or co7+act i7+,)7)ntation o4+acka-)s, +ay5as5you5us) 6RP d)s)rv)s +ricin-, and outsourcin)qua, i7+ortanc). strat)-i)s to +)n)trat) th) Aindin-s o4 ,o@5)nd 7ark)t. 3his +rovid)s
an )ar,y indication o4 th) s),)ction and i7+,)7)ntation o4 6RP 4or th) ,o@5)nd 7ark)t o4 SM6s. 3ab,) ! +rovid)s a su77ary o4 surv)y r)su,ts o4 to+ !$$
co7+ani)s in N)@ E)a,and and th)ir int)r)st in i7+,)7)ntin6RP.

Table ;: 4u''ar( of sur!e( results of top ;:: co'panies in .e, 6ealan" an" their interest in ERP i'ple'entations 1$ills8 ;QQQR -ells8 ;QQQ2
Plans regar"ing Percentag ERP e of i'ple'entations co'panie 1;EF response s rate2 /1 no +,ans 4or i7+,)7)ntin- 6RP 07ost o4 th)s) co7+ani)s hav) b)t@))n 1$ to "" )7+,oy))s @ith an annua, r)v)nu) o4 ,)ss than T!$ 7i,,ion2
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Table ;: 4u''ar( of
sur!e( results of top ;:: co'panies in .e, 6ealan" an" their interest in ERP i'ple'entations 1$ills8 ;QQQR -ells8 ;QQQ2
Plans regar"ing Percentag ERP e of i'ple'entations co'panies 1;EF response rate2
/1 /1 /1
It is i7+ort ant to not) that th) 6RP 7ark)t 4or N)@ E)a,an d is di44)r) nt 4ro7 oth)r ,ar-)r 7ark)t s ,ik) 6uro+) and North A7)ric a. 3h) +r)s)n t 6RP i7+,)7 )ntatio n in N)@ E)a,an d r)v)a,s that un,ik) th) >S 7ark)t , on,y th) basic so,utio ns o4 6RP ar) avai,ab ,) in N)@ E)a,an d. It is a,so )vid)nt that th)
N)@ @ E)a,and c,i)nts 4or 6RP can a44ord to +ay ,)ss than th) >S count)r+art. 3h)r)4or), 6RP v)ndors hav) to adCust th)ir +ric)s to co7+)t) and d)v),o+ oth)r a,t)rnativ) 7)asur)s to su++ort th) -ro@th o4 6RP i7+,)7)ntat ion in th) ,o@)r5)nd 7ark)t 4or th) SM6s. 3ab,) / +rovid)s a ,on-itudina , vi)@ o4 th) 6RP industry in a N)@ E)a,and cont)(t. 3h) +roc)ss 4or d)v),o+inthis tab,) inc,ud)d s)archint@o N)@ E)a,and ),)ctronic databas)s, RN)@8ind) (S and RN)@8t)(t N)@s+a+)r s,S 4or a co7binatio n o4 t@o k)y @ords, R6RPS and Rs),)ction.S 6ach artic,) in th) s)arch r)su,ts ,ist
s, R6RPS and a Rs),)ction.S n 6ach artic,) d in th) s)arch R r)su,ts ,ist N @as r)ad to ) con4ir7 its @ to+ic 8 r),)vanc). t S)v)ra, ) artic,)s @)r) ( )(c,ud)d t b)caus) th)y @)r) N irr),)vant to ) th) to+ic o4 @ inv)sti-ation s . 6ach + artic,) in th) a va,idat)d ,ist + @as ) ana,y8)d to r id)nti4y s th)7)s. A , th)7) tab,) S @as th)n +roduc)d 4 @h)r) 7aCor o th)7)s r 4or7)d th) ro@s o4 th) a tab,) and +ub,ication c y)ars o 4or7)d th) 7co,u7ns. No b 4or7a, i 7)thod @as n us)d to a d)v),o+ th) t th)7) ,ist. i It @as 7or) o a cr)ativ) n +roc)ss than on) that o 4o,,o@)d 4 ru,)s. t X!Y 3h) @ s)arch @as o carri)d out on th) !'th o4 k Jun) !""" ) and cov)r)d y +ub,ications dat)d !""% @ ti,, th) )nd o4 o May !""". r S)arch d r)su,ts 4or
th) ( in .e, RN)@8i 6ealan" nd)(S conte0t databa s) r)su,t) d in G# 7atchi n- o4 1,/&&, !'/ docu7 )nts. Most o4 th) 7atchi ntit,)s @)r) artic,)s in Compu ter-orl d #e/ealan d. S)arch r)su,ts 4or th) RN)@8t )(t N)@s+ a+)rsS databa s) r)su,t) d in %1 7atchi n- o4 G&/,11 G docu7 )nts. Most o4 th) 7atchi ntit,)s @)r) artic,)s in #/ Infotec h .ee+ly . Table 9: & re!ie, of ERP in"ustr
Tren"s in the ERP i'ple'entation in"ustr( literature Port4o,io A++roach S7a,, and M)diu7 6nt)r+ris)s 0SM6s2 R)s)arch and Surv)ys Ai()d Pric) 6RP <RM :utsourcin- 6RP
;QQJ
;QQS
;QQQ
No No No No No No
No Q)s Q)s No No Q)s
Q)s Q)s Q)s Q)s Q)s Q)s
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a++,ication int)-ration b)ca7) i7+ortant durin!""& and !""". In !""", N)@ Table 9: & E)a,and introduc)d thr)) n)@ re!ie, of ERP a++roach)sB+ort4o,io, in"ustr( in .e, co7+act +acka-)s and th) 6ealan" conte0t us) o4 6RP consu,tants 4or th) and i7+,)7)ntation Tren"s in the s),)ction ERP i'ple'entation o4 6RP. At this sta-), it is a,so in"ustr( literature i7+ortant to hav) an und)rstandin- o4 6RP Partn)rshi+s i7+,)7)ntation +ractic)s 4ro7 a -,oba, +)rs+)ctiv). 3h)r)4or), a back-round to <o7+act Packa-)s 6RP i7+,)7)ntation and its cont)(t 4ro7 a -,oba, :: Pro-ra77inParadi-7 is +r)s)nt)d +)rs+)ctiv) b),o@. Su++,y <hain Mana-)7)nt 0S<M2
ERP Mana-)7)nt Ara7)@ork
IMPLEMENTATION AND ITS CONTE,T 6RP <onsu,tants

6RPs ar) +r)+acka-)d A++,ication Int)-ration so4t@ar) a++,ications that int)-rat) in4or7ation across It can b) s))n th) )ntir) or-ani8ation 4ro7 th) 6RP 0Dav)n+ort, !""&2. 3his tr)nds in N)@ int)-ration r)7ov)s E)a,and that inconsist)nci)s and assists th) 7ost o4 th) or-ani8ation in attainin- th)ir or-ani8ations conso,idat)d r)+orts. 6RP hav) had on,y syst)7s ar) avai,ab,) 4ro7 7ana-)7)nt v)ndors such as SAP, :rac,), 4ra7)@ork in P)o+,)So4t, J.D. 6d@ards and +,ac) in !""%. Baan, @hich r)+r)s)nt th) 4iv) Durin- !""& to+5ti)r 6RP v)ndors. 3h) and !""", 7ost 7aCor 4)atur)s o4 6RP syst)7s o4 th) SM6s ar) as 4o,,o@s 0Dav)n+ort, hav) tak)n a !""&N Markus ; 3anis, /$$$N st)+ to@ards Ross ; =ita,), /$$$2 6RP i7+,)7)ntation. It is a,so 1. 6RP syst)7s ar) )vid)nt 4ro7 consid)r)d to b) th) tab,) that standards o4 busin)ss N)@ E)a,and b)st +ractic)N inv)st)d in 6RP 2. An 6RP syst)7 r)s)arch and inc,ud)s a s)t o4 surv)ys at that t@o or 7or) ti7). :th)r standard issu)s such as int)-rat)d <RM, 7odu,)s, )ach outsourcin-, 7od),,ina 4or7ation o4 c)rtain busin)ss +artn)rshi+s, +roc)ss or :: 4unctionN +ro-ra77in-, 3. :r-ani8ations S<M and
can cho os) a 7i ni 7u 7 s)t o4 7o du, )s to i7 +,) 7) nt an d ad d oth )r 7o du, )s as n)c )ss
aryN
4. //' 5. 3h)
6.
int)-ration o4 6RP syst)7s is bui,t @ithin th) syst)7, r)7ovin- any inconsist)nci) s o4 in4or7ation across an or-ani8ationN and, 3h) s),)ction and i7+,)7)ntation o4 an 6RP syst)7 tak)s at ,)ast ' to /G 7onths and invo,v)s th) r)sourc)s and co77it7)nts o4 di44)r)nt stak)ho,d)rs 4ro7 insid) as @),, as outsid) th) or-ani8ation.
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3h) ori-ins o4 6RPs ar) th) MRP syst)7s 0<hun- ; Snyd)r, !"""N Dav)n+ort, /$$$N D),oitt) <onsu,tin-, !"""N ?u7ar ; Hi,,)-)rsb)r-, /$$$N Pa,anis@a7y ; Arank, /$$$2. 3h) MRP 4a7i,i)s ,ik) MRP 07at)ria,s r)quir)7)nt +,annin-2 and MRP5II 07at)ria,s r)sourc) +,annin-2 @)r) 4ocus)d 7ain,y on 7anu4acturin- and ,o-istics o+)rations @hi,) 6RP syst)7s su++ort th) int)-ration o4 oth)r 4unctions ,ik) accountin-, 4inanc), sa,)s, 7ark)tin-, hu7an r)sourc)s and oth)rs 0Dav)n+ort, !""&2. 6ach 4unction is su++ort)d by on) or 7or) 7odu,)s, @hich ar) d)si-n)d to int)-rat) into oth)r 7odu,)sN ho@)v)r, con4i-uration and custo7i8ation is n))d)d durin- i7+,)7)ntation. 6RP syst)7s hav) r)c)nt,y )vo,v)d to su++ort oth)r 4unctiona,iti)s that, unti, r)c)nt,y, @)r) o44)r)d s)+arat),y, such as su++,y chain 7ana-)7)nt 0S<M2, custo7)r r),ationshi+ 7ana-)7)nt 0<RM2, +ro4)ssiona, s)rvic) auto7ation 0PSA2, data @ar)housin- 0DF2 and arti4icia, int),,i-)nc) 0AI2. 3ab,) # +r)s)nts a historica, out,in) o4 th) )vo,ution o4 6RP syst)7s and trac)s th)ir ori-ins 4ro7 th) !"'$s to th) /!st c)ntury. 3h) tab,) out,in)s th) 4ocus o4 th) a++,ication, th) su++ort)d I3 archit)ctur), a++,ication us)rs and th) ,)v), o4 int)-ration +rovid)d. It is obs)rv)d 4ro7 th) tab,) that 6RP syst)7s hav) )vo,v)d to inc,ud) 7or) 7odu,)s, @id)r busin)ss 4ocus and 7or) us)rs 4ro7 insid) as @),, as outsid) th) or-ani8ation. Fhi,) archit)ctur) su++ortin- 6RP @as 7ain,y c)ntra,i8)d in th) )ar,y sta-)s o4 6RP )vo,ution, it is no@ a 7i( o4 c)ntra,i8)d and distribut)d so,utions, @hich b)ca7) avai,ab,) and 4)asib,) durinth) !""$s. Durin- th) ,at) !""$s, th) hi-h )nd o4 th) 6RP 7ark)t b)ca7) saturat)d b)caus) 7ost ,ar-) or-ani8ations hav) a,r)ady i7+,)7)nt)d an 6RP syst)7. In a r)s+ons) to co7+)tition in th) industry th)n, 6RP a++,ication v)ndors start)d inc,udin- oth)r a++,ications as +art o4 th)ir 6RP o44)rin-s. 6RP syst)7s )vo,v)d to b)co7) Rint)ror-ani8ationa,S and RInt)rn)t )nab,)d.S N)@ 7odu,)s that @)r) add)d to th) +roduct +ort4o,io inc,ud)d <RM, DF and AI. In ord)r to achi)v) that, 6RP v)ndors bui,t th) n)@ 4unctiona,iti)s in5 hous) and acquir)d or 7ad) +artn)rshi+s @ith s+)cia,i8)d )nt)r+ris) a++,ication v)ndors. Autur) 6RP a++,ications ar) +r)dict)d to hav) ,)ss 4ocus on transaction +roc)ssin-, to inc,ud) 7ana-)ria, su++ort syst)7s as standards o4 its o44)rin-s, and to su++ort various docu7)nts ty+)s, such as 7u,ti7)dia and <AD 0?u7ar ; Hi,,)-)rsb)r-, /$$$2. Table =: The e!olution of ERP s(ste's
200-
:r-ani8ations had di44)r)nt driv)rs 4or i7+,)7)ntinth)ir 6RP syst)7s 0Ross, !""", ++. '12. 3h)r) ar) t@o 7ain cat)-ori)s to th) c,assi4ication o4 th)s) driv)rs. 3h) 4irst is conc)rn)d @ith so,vin- )(istinbusin)ss +rob,)7s, @hich inc,ud)d th) Q/? +rob,)7, inad)quat) I3 in4rastructur), and dis+arat) in4or7ation syst)7s, +articu,ar,y in th) cas) o4 7)r-)rs and acquisitions. 3h) s)cond @as r),at)d to i7+rovin- 4utur) busin)ss o+)rations, @hich addr)ss)d su++ortin- 4utur) busin)ss 4,)(ibi,ity and -ro@th, r)ducino+)rationa, costs, su++ortin- custo7)r r)s+onsiv)n)ss, i7+rovin- data visibi,ity, and 7akin- b)tt)r busin)ss d)cisions. 3h) +ri7ary b)n)4its o4 i7+,)7)ntin- an 6RP syst)7 ar) o+)rationa, )44ici)ncy and strat)-ic )44)ctiv)n)ss. :r-ani8ations in i7+,)7)ntin- an 6RP syst)7 ai7 to achi)v) consist)nt in4or7ation syst)7s that ar) u+5to5 dat). :r-ani8ationa, )44ici)ncy is achi)v)d by ,inkin- or-ani8ationa, busin)ss +roc)ss)s into on) syst)7 that )nab,)s co7+ani)s to 7ini7i8) r)sourc)s r)quir)d to co7+,)t) th)ir busin)ss +roc)ss)s. Aurth)r7or), or-ani8ationa, )44)ctiv)n)ss is r)a,i8)d by )nab,in- b)tt)r d)cision 7akinthrou-h th) us) o4 u+5to5dat) r)+orts that b)co7) avai,ab,) across th) busin)ss in di44)r)nt dir)ctions. 3h) ado+tion o4 6RP syst)7s unti, th) ,at) !""$s @as by ,ar-) or-ani8ations that cou,d a44ord th) hi-h cost o4 th) syst)7 i7+,)7)ntation. Most o4 th)s) or-ani8ations @)r) i7+,)7)ntin- 6RP syst)7s to r)+,ac) th)ir o,d ,)-acy syst)7s. Aurth)r7or) and sinc) 7ost o4 th) 6RP syst)7s @)r) Q/? co7+,iant, or-ani8ations i7+,)7)nt)d 6RP to d)a, @ith th) Q/? issu) as @),,. Fh)n th) 7ark)t 4or 6RP in ,ar-) or-ani8ations b)ca7)
-201TEAM FLY
it is ,)ss )(+)nsiv) and can b) i7+,)7)nt)d quick)r. 3h) saturat)d by th) s)cond strat)-y is th) E"P y)ar /$$$, s7a,,5 outsourcing or th) application service provision JASPK. In to57)diu7 o44)rin- this, th) v)ndor 4inds a )nt)r+ris)s co7+ut)r s)rvic)s +artn)r to 0SM62 @)r) 7ount th) 6RP syst)7s on its +)rc)iv)d to b) th) 4utur) ar)a o4 o@n 7achin)s and o44)rs on,in) s)rvic)s to custo7)rs. -ro@th in th) <usto7)rs ar) r)quir)d to +ay 6RP 7ark)t. In )ith)r by transaction or by s)at r)s+ondin- to +)r 7onth. <usto7)rs b)n)4it this saturation o4 by avoidin- th) hi-h cost o4 6RP 7ark)ts, so4t@ar) +urchas) as @),, as 6RP v)ndors as th) hu-) ca+ita, inv)st7)nt o4 @),, as oth)r in5hous) hard@ar), ho@)v)r )nt)r+ris) th)y ar) sti,, r)quir)d to +ay a++,ications th) cost o4 s)ttin- out th) v)ndors start)d syst)7. 3his strat)-y can b) d)v),o+in- n)@ )qua,,y a++)a,in- to SM6s and and di44)r)nt ,ar-) or-ani8ation @h)r) th) strat)-i)s that choic) @i,, +robab,y b) @ou,d a++)a, to d)t)r7in)d in a trad)5o44 th) t@o 7ain b)t@))n 7or) )44ici)ncy but 7ark)t s)-7)nts ,)ss ind)+)nd)nc) to th) o4 SM6 and ,ar-) or-ani8ation i7+,)7)ntinth) or-ani8ations. outsourc)d 6RP syst)7. In 6ach o4 th)s) !""", SAP +artn)r)d @ith 6DS strat)-i)s is in North A7)rica to outsourc) bri)4,y discuss)d. its RI# +roduct. SAP a,so start)d th) +artn)rshi+ n)-otiation +roc)ss @ith both 3h) 4irst is th) 6DS and Dataco7 in N)@ E"P compact E)a,and 0B),,, !"""2. 3h) )est0 pac+age. of0)reed or +ort4o,io a++roach <o7+act is consid)r)d th) third strat)-y. +acka-)s ar) on5 Buyin- an 6RP +acka-) is th)5 sh),4 r)-ard)d as an a,t)rnativ) to +acka-)s that ar) int)-ratin- a nu7b)r o4 b)st5 ,o@ in +ric) @h)n o45br))d a++,ications co7+ar)d to th) 0Dav)n+ort, /$$$N Pu,,ar5 standard 6RP Str)ck)r, !"""2. Fhi,) 6RP +acka-) but can v)ndors start)d 7akin- th)ir b) i7+,)7)nt)d +roducts 7or) standardi8)d to in ,)ss ti7). 4aci,itat) int)-ration to oth)r 3h)s) co7+act +roducts, it is th) s+)cia,i8)d +acka-)s inc,ud) consu,tants that co77on,y th) basic o44)r)d +roc)ss int)-ration, 4unctiona,iti)s o4 @h)r) 4inancia, a++,ications o4 th) so4t@ar) but on) v)ndor, 4or )(a7+,), @)r) ,)ss o+tions 4or int)-rat)d to oth)r v)ndorsK custo7i8ation. a++,ications 4or th) sa7) c,i)nt 3h)y ar) or-ani8ation. B)caus) o4 th) d)si-n)d to cat)r co7+,)(ity and )(+)nsiv) to SM6s by i7+,)7)ntation o4 b)st5o45 o44)rinth)7 th) br))d a++,ications, th)y ar) advanta-)s o4 a ,ik),y to a++)a, to ,ar-) standard +roduct or-ani8ations that can a44ord that inc,ud)s b)st th) hi-h cost o4 )(tra +ractic), ho@)v)r 4unctiona,ity. Aourth, th) ne-
implementation an SM6 si8), it is consid)r)d a methodologies va,id a,t)rnativ) to ,ar-) and pricing or-ani8ations that n))d to b) policies ar) convinc)d o4 th) viabi,ity o4 si7i,ar to @hat th)s) 6RP syst)7s throu-h th) co7+act +ro7is) o4 quick r)su,ts and +acka-)s o44)r 7ini7u7 risks. Ai4th, but inc,ud) th) +ro7otin- th) Internet B9B e0 us) o4 th) basic commerce ca+abi,iti)s o4 6RP 6RP so,ution. 3h) syst)7s is a strat)-y that 7ain ai7 o4 this attracts ,ar-) or-ani8ations, strat)-y is to ho@)v)r it can a,so b) )qua,,y 7ak) 6RP 7or) a++)a,in- 4or SM6s. Aina,,y, a44ordab,) in +ric) inc,udin- oth)r speciali%ed +,us d)cr)asin- applications such as AI and DF th) ,)n-th o4 ti7) as +art o4 th) 6RP +roduct is a th) syst)7s strat)-y so7) o4 th) 4irst5ti)r n))ds to b) 6RP v)ndors uti,i8)d 7ain,y to i7+,)7)nt)d. tar-)t ,ar-) or-ani8ations. Fhi,) th) strat)-yAi-ur) ! r)+r)s)nts th)s) 6RP 7ay hav) strat)-ic o44)rin-s across a tar-)t)d 7ark)t s+)ctru7 4or SM6 and or-ani8ations o4 ,ar-) or-ani8ations.
2 0 2 -
+igure ;: Di44)r)nt 6RP strat)-i)s 4or SM6 and ,ar-) or-ani8ations 6RP syst)7s ar) o44)r)d by 4iv) 7aCor v)ndorsBSAP, :rac,), P)o+,)So4t, Baan and J.D. 6d@ards. Ho@)v)r, th)r) ar) str)n-ths5@)akn)ss)s5o++ortuniti)s5thr)ats 0SF:32 o4 th) 6RP syst)7s o44)r)d by th) a4or)7)ntion)d v)ndors. 3ab,) G +rovid)s a sna+shot SF:3 ana,ysis o4 th) 4iv) ,)adin- v)ndorsK 6RP o44)rin-s durinth) +)riod 4ro7 7id5 !""" unti, 7id5/$$$. 3his tab,) @as d)v),o+)d usin- s)condary data co,,)ct)d 4ro7 v)ndorsK F)b +a-)s, th)ir +ro7otiona, 7ark)tin- +roducts and th) 6RP +ractic) ,it)ratur). Data @as structur)d into a '5co,u7n 7atri( @h)r) th) 1 ri-ht co,u7ns inc,ud) v)ndorsK data @hi,) th) 'th co,u7n to th) ,)4t inc,ud)s th) cat)-ori)s across @hich th)s) 4iv) v)ndors ar) co7+ar)d. 3ab,) G is divid)d into t@o s)ctions. 3h) 4irst s)ction inc,ud)s a co,,)ction o4 in4or7ation about )ach o4 th) to+ v)ndors across 4our di7)nsions, @hich ar) th) v)ndorsK or-ani8ation, th) 6RP +roduct, n)@ 6RP +roduct o44)rin-s, and s)rvic)s, +artn)rshi+s and co77unity invo,v)7)nt. 3h)s) 4our di7)nsion ar) i,,ustrat)d in 3ab,)s G5a, G5b, G5c, and G5d, r)s+)ctiv),y. 3h) s)cond s)ction o4 3ab,) G 0@hich is ,ab),,)d as 3ab,) G5)2 inc,ud)s th) SF:3 ana,ysis o4 th) 4iv) v)ndors. Ana,ysis @as aid)d by th) structur)d data in s)ction on) o4 3ab,) G +,us th) r)vi)@ o4 +ractic) ,it)ratur)N consu,tantsK F)b sit)s and 7ark)tin- 7at)ria,N 6RP ),)ctronic n)@s,)tt)rsN and discussion -rou+s durinth) +)riod !"""5/$$$. It is ackno@,)d-)d that th)r) hav) b))n 7any chan-)s in th) 6RP industry sinc) th)n. Ho@)v)r, it is b),i)v)d that th) +)riod o4 inv)sti-ation @as a turnin- +oint in th) )vo,ution o4 6RP syst)7s, as r)4,)ct)d )ar,i)r in 3ab,) # thus it is @orth docu7)ntin-. Aurth)r7or), th) I3 industry and 6RP syst)7s inc,ud)d, ar) in a continuous 7od) o4 chan-), 7akin- it i7+ossib,) to +roduc) curr)nt status su77ari)s b)caus) th)y t)nd to b)co7) obso,)t) v)ry quick,y. 3ab,) G5a +rovid)s th) v)ndor +ro4i,) and r)v)nu) o4 th) 6RP syst)7s 4or )ach o4 th) 4iv) ,)adin- v)ndors. It can b) s))n 4ro7 this tab,) that SAP had achi)v)d th) hi-h)st r)v)nu) a7on- th) oth)r 4our 6RP v)ndors. SAP is consid)r)d th) ,ar-)st 6RP v)ndor and 7ark)t ,)ad)r in th) sa,) o4 co7+,)( back5)nd 6RP so4t@ar). It is a,so i7+ortant to not) that a7on- th) 4iv) 6RP v)ndors, SAP has th) hi-h)st )(+)nditur) in r)s)arch and
d)v),o+7)nt o4 n)@ and innovativ) +roducts. SAP has insta,,)d its so4t@ar) in about !/,$$$ co7+ani)s r)su,tinin 7or) than /1,$$$ busin)ss insta,,ations and 7or) than !$ 7i,,ion ,ic)ns)d us)rs @or,d@id). SAP )nt)r)d th) N)@ E)a,and 7ark)t in !""1. Durin- !""1 to !""&, SAP has introduc)d th)ir RI# syst)7 to '$ N)@ E)a,and custo7)rs @ith a turnov)r o4 T1$ 7i,,ion in !""& 0P)rry, !"""2. 3ab,) G5b co7+ar)s th) di44)r)nt 6RP +roducts across th) 4iv) v)ndors. It is obs)rv)d in this tab,) that 6RP v)ndors start)d brandin- th)ir 6RP +roducts as Int)rn)t5)nab,)d or th) R)5)nt)r+ris) +roduct.S Int)rn)t )5co77)rc) @as and sti,, is +)rc)iv)d as a 7aCor
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in4or7ation syst)7s that or-ani8ations b)co7) in a b)tt)r +osition to -)t th) driv)r to th) b)n)4its throu-hout th)ir -ro@th o4 6RP su++,y and va,u) chains 7ark)ts. 0Ha77)r, /$$!2. Anoth)r Aurth)r7or), Int)rn)t B/B )5 r)+ort by Int)rnationa, Data <or+oration 0ID<2 sho@s that co77)rc) is +roC)ct)d to -ro@ 1&U o4 co7+ani)s surv)y)d to T!.1 tri,,ion by about I3 s+)ndin- 4or th) y)ar /$$$ @)r) +uttin- 7on)y back /$$G 0Jan8)n, into 7ission5critica, a++,ications !"""2. 3his )5 co77)rc) 7ark)t that inc,ud)d 6RP and <RM syst)7s 0Scann),,, N),son, ; is )nab,)d Briody, !"""2. 3h) n)(t throu-h th) a++,ication cat)-ory in th) ID< int)-ration o4 r)+ort is F)b5)nab,)d and )5 F)b5)nab,)d co77)rc) a++,ications, @hich 4ront5)nd a++,ications to a /#U o4 th) co7+ani)s surv)y)d +,ann)d to d)dicat) back5)nd 6RP 4undin- to. 3ab,) G5c i,,ustrat)s syst)7. It is th) n)@ 6RP +roduct o44)rin-s +ro+os)d that on,y in achi)vin- +r)s)nt)d )ar,i)r in Ai-ur) !, both )(t)rna, and @hi,) 3ab,) G5d +rovid)s back-round in4or7ation on int)rna, s)rvic)s, +artn)rshi+s and int)-ration o4 co77unity invo,v)7)nt o4 th) or-ani8ationa, 4iv) v)ndors.
2 0 4 -
Table A3a: & 4-OT anal(sis of the "ifferent ERP s(ste's offere" b( the top E !en"ors: The !en"or>s organi*ation
Table A3a: Table A3b: & 4-OT anal(sis of the "ifferent ERP s(ste's offere" b( the top fi!e !en"ors: The ERP pro"uct
Table A3a: Table A3c: & 4-OT anal(sis of the "ifferent ERP s(ste's offere" b( the top fi!e !en"ors: .e, ERP pro"uct offerings
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Table A3a: Table A3": & 4-OT anal(sis of the "ifferent ERP s(ste's: 4er!ices8 partnerships an" co''unit( in!ol!e'ent
Table A3a: Table A3e: & 4-OT anal(sis of the "ifferent ERP s(ste's offere" b( the top fi!e !en"ors
206-
X/Y :rac,) r)v)nu) ca,cu,at)d to a si7i,ar +)rc)nta-) o4 its !""& r)v)nu) usinth) 4i-ur)s +ub,ish)d by 6n8@)i,)r *rou+ 0!"""2. :rac,)Ks r)v)nu) +ub,ish)d on its F)b sit) is T&,&$$ 7i,,ion and inc,ud)s databas) sa,)s as @),, as :rac,) a++,ications. 3h) SF:3 ana,ysis o4 th) to+ 4iv) 6RP v)ndors in 3ab,) G5) sho@s that th) 4iv) v)ndors shar) si7i,ar o++ortuniti)s and thr)ats 4or th) 4utur). :++ortuniti)s inc,ud) o44)rin-s that attract SM6s, @hich ar) th) co7+act +acka-)s, 4ast5 track i7+,)7)ntation 7)thodo,o-i)s, n)@ +ricin+o,ici)s and outsourcino+tions. 3h) tab,) a,so +r)dict)d that th) 7ark)t 4or B/B )5co77)rc) @ou,d )(+)ri)nc) a hu-) )(+,osion in
th) 4utur), @h)r) d)v),o+7)nt )(+)nditur) and a,, th) 4iv) th) br)adth o4 custo7i8ation v)ndors ar) o+tions th) +roduct o44)rs. It is +)rc)iv)d @id),y ackno@,)d-)d that th) co7+)tin- to -)t SAP 6RP a++)a,s 7or) to ,ar-) th)ir +r)s)nc). co7+ani)s @ho can a44ord hu-) 3hr)ats inc,ud) s+)ndin- and n))d th) ,a@suits as a so+histication o4 SAPKs r)su,t o4 4ai,)d ca+abi,iti)s. 3h) ,ar-) costs o4 i7+,)7)ntations SAPKs co7+,)( so,utions can and dis-runt,)d b)co7) a @)akn)ss i4 th) c,i)nt c,i)nts. S7a,, cannot Custi4y th)7. :th)r co7+)titors, v)ndorsK str)n-ths co7) s+)cia,i8)d +ri7ari,y 4ro7 a v)ndorKs so,ution +rovid)rs )(+)rtis) or its ,)ad)rshi+ in and b)st5o45 introducin- a s+)cia,i8)d br))d o44)rin-s a++,ication. :rac,) is notic)d a,so +os) a 4or its @or,d@id) ,)ad)rshi+ in thr)at to th) databas) 0DB2 sa,)s and th) traditiona, 6RP stron- 4inancia, +osition th) v)ndor. co7+any ho,ds. Baan has th) @orst 4inancia, +osition, @hich SAP and :rac,) co7)s 4ro7 th) continuous str)n-ths ar) ,oss)s th) co7+any had b))n notic)ab,). SAPKs r)+ortin-. A,, th) v)ndors @)r) str)n-ths ar) a +,annin- to o44)r <RM as +art o4 r)su,t o4 it ,)adin- th) 6RP suit) )(c)+t 4or J.D. in th) nu7b)r o4 6d@ards, @ho )stab,ish)d a custo7)rs, +artn)rshi+ @ith Si)b,), th) 7ark)t shar), @or,d ,)ad)r in <RM so,utions. r)s)arch and
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t)chno,o-y +roC)cts. 3his is a +r)cursor 4or und)rstandinth) invo,v)7)nt o4 3h) succ)ss4u, i7+,)7)ntation o4stak)ho,d)rs in th) 6RP an 6RP syst)7 is s),)ction +roc)ss. Pr)vious ,ar-),y d)+)nd)nt studi)s on k)y issu)s in on th) s),)ction in4or7ation syst)7s r)s)arch 0Pa,via, RaCa-o+a,an, ?u7ar, ; o4 th) 6RP ?u7ar, !""'2 and in4or7ation syst)7 and int)-ratin- it @ith 7ana-)7)nt 0Branch)au, th) or-ani8ationa, Jan8, ; F)th)rb), !""'2 sho@ that k)y issu)s ar) chan-inbusin)ss and )vo,vin- ov)r th) y)ars. +roc)ss)s. It is ?)y issu)s can b) c,assi4i)d as th)r)4or) o+)rationa,, 7ana-)ria,, and i7+ortant to strat)-ic 0Pa,via )t a,., !""'2. d)v),o+ an und)rstandin- o4 3h) MIS triad 7od), d)v),o+)d by Brook)s 0Brook)s, *rous), th) s),)ction J)44)ry, ; La@r)nc), !"&/2 can +roc)ss o4 6RP b) us)d to d)v),o+ a b)tt)r syst)7s in und)rstandin- o4 th) 6RP or-ani8ations. i7+,)7)ntation and its 3his study cha,,)n-)s @ithin th) +rovid)s an or-ani8ation. 3hr)) -rou+sB )(+,oratory inv)sti-ation o4 to+ 7ana-)7)nt, us)rs, and IS +)rsonn),Bar) consid)r)d to th) s),)ction b) th) int)rna, stak)ho,d)rs +roc)ss o4 6RP syst)7s in N)@ invo,v)d in th) coordination. Issu)s id)nti4i)d in th) E)a,and. A +r)vious studi)s ar) arran-)d 4ra7)@ork accordin- to this 7od), @ith d)scribin- th) 7odi4ication. ro,)s and invo,v)7)nt o4 di44)r)nt 3o+ 7ana-)7)nt has th) stak)ho,d)rs in authority to 7ak) th) d)cision th) s),)ction +roc)ss o4 6RP is r)-ardin- +o,icy qu)stions and +r)s)nt)d b),o@. is r)s+onsib,) 4or th) s),)ction o4 +roC)cts. Brook)s )t a,. 0!"&/2 su--)st that th) tasks A 4or to+ 7ana-)7)nt ar) FRAMEWOR 4our4o,d. 3ab,) 1, +rovid)s a o4 th) tasks 4or to+ - FOR ERP su77ary 7ana-)7)nt as @),, as oth)r SELECTION int)rna, stak)ho,d)rs invo,v)d in th) s),)ction o4 6RP. 3his s)ction )(a7in)s th) Table E: & su'ar( ,it)ratur) on of the tas#s of stak)ho,d)r internal invo,v)7)nt in sta#ehol"ers th) d)v),o+7)nt in!ol!e" in the o4 in4or7ation selection of ERP syst)7s and s(ste's in4or7ation 7ana-)7)nt s)s <nternal 4ta#ehol" ers
3o+
>
IS +)rsonn),
Tas#s in selecting ERP
1. to
2.
s)t or-ani8 ation5 @id) obC)ctiv )s 4or 6RP s),)ctio nN to s+)ci4y crit)ria to b) us)d 4or th) 6RP +roC)ct s),)ction and a++rova,N
a + + r o a c h + r o + o s ) d b
t a n d i n o 4 t h ) r o , ) a n d c o n t r i b u t i o n o 4 a t ) c h n o , o y s u c h a s
3.
4.
to r)vi)@ th)y i7+,ication o4 t)chnica, n d)v),o+7)nts to) )nsur) t advanta-) is@ tak)n o4 th)7No and r k to s)t u+ a 7)chanis7 to d r)vi)@ ) r)-u,ar,y th) s )44)ctiv)n)ss i o4 curr)nt activiti)s, n s+)ci4yin) obC)ctiv)s and r )stab,ishins +roc)dur)s to N )nsur) ad)quat) a co77unicatio n n @ithin th) d )nt)r+ris).
1. to )nsur) that t
us)r r)quir)7)nts ar) 7)t, to -ain us)r co77it7)nt and to avoid us)r r)sistanc)N to activ),y +artici+at) in +roC)ct s),)ction and a++rova, o4 t)chnica, o i 7 + r o v ) u n d ) r s
2.
6 R P
. !. to +rovid) n)c)ssary
a s s
istanc) to h),+ to+
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-r)at i7+ortanc) 4or th) succ)ss4u, i7+,)7)ntation o4 IS 0Branch)au )t a,., !""'N Table <ho), !""'N <ho) ; L)), E: & !""#N Pa,via )t a,., !""'N su'ar 3hon-, !""'2. Aurth)r7or), ( of to+ 7ana-)7)nt, @ith a the broad)r or-ani8ationa, tas#s +)rs+)ctiv), is in th) b)st of +osition to id)nti4y busin)ss intern o++ortuniti)s 4or th) al )(+,oitation o4 I3, sta#e or-ani8ation5@id) IS hol"e +,annin-, d)si-n, rs d)v),o+7)nt, i7+,)7)ntation in!ol! and oth)r activiti)s 03hon-, e" in !""'2. Ho@)v)r, 7any cas)s the o4 IS i7+,)7)ntation 4ai,ur) select r)su,t 4ro7 th) ,ack o4 ion of kno@,)d-) by )()cutiv) ERP 7ana-)rs o4 th) ro,) and s(ste contribution o4 IS 0Pa,via, 's Ei-,i, ; Pa,via, !""/2. 3h)r)4or), both issu)sB <nternal 4ta#ehol"ers )ducatin- to+ 7ana-)7)nt on ro,) o4 IS and its 7ana-)7)nt contribution, as @),, as th)ir and us)rs so,v) invo,v)7)ntIsu++ortBn))d to r),at)d b) consid)r)d in th) +r)s)nt +rob,)7sN study on th) stak)ho,d)r 2. invo,v)7)nt in 6RP s),)ction. >s)rs +,ay ro,)s as in4or7ation syst)7 us)rs, )va,uators, and )v)n d)v),o+)rs in th) i7+,)7)ntation +roc)ss. 3h)y a,so tak) +art in th) activiti)s o4 +roC)ct s),)ction, a++rovin- th) t)chnica, a++roach +ro+os)d by th) syst)7Ks d)si-n)rs, and 7ana-)7)nt and contro, 3. 0Brook)s )t a,., !"&/2. Aor th) cas) o4 6RP s),)ction, us)rs 7ay h),+ to d)t)r7in) @hat )44ici)ncy is achi)v)d in s)rvic) d),iv)ry. 3his +artici+ation and invo,v)7)nt o4 us)rs is )ncoura-)d to )nsur) that us)r r)quir)7)nts ar) 7)t, to -ain us)r co77it7)nt, and 6ducatin- to+ 7ana-)7)nt on to avoid us)r r)sistanc) 0<avay), !""12. At this +oint, th) ro,) o4 IS su44ici)nt )ducation and and its trainin- o4 us)rs ar) stron-,y contribution as r)co77)nd)d. 3h) trainin@),, as th)ir invo,v)7)ntIsu and )ducation shou,d not b) ,i7it)d to th) IS a++,ication. ++ort ar) o4 I7+rovin- th)ir
und)rstandino4 th) ro,) and contribution o4 a t)chno,o-y such as 6RP a,so n))ds to b) -iv)n +ro+)r att)ntion. 3hus, issu)s r),at)d to us)rs that n))d to b) )7+hasi8)d ar) us)r invo,v)7)ntI+a rtici+ation, )ducatin- us)rs on th) ro,) and contribution o4 6RP, and )ducatin-Itraini n- us)rs on 6RP a++,ication. In4or7ation Syst)7s 0IS2 +)rsonn), ar) r)s+onsib,) 4or hard@ar) and so4t@ar) insta,,ation and 7aint)nanc). 3h)y ar) a,so in char-) o4 +rovidinn)c)ssary assistanc) to h),+ to+ 7ana-)7)nt and us)rs so,v)
r),at)d +rob,)7s. 3h) ra+id d)v),o+7)nt o4 I3 7ay ,)ad to th) shorta-) o4 qua,i4i)d IS +)rsonn), 0Pa,via )t a,., !""/2. R)cruit7)nt and car))r d)v),o+7)nt o4 IS +)rsonn), 7ust b) tak)n into consid)ration 4or )nsurin- th) succ)ss o4 6RP s),)ction. Aurth)r7or), trainin- o4 +)rsonn), @ith so4t@ar) a++,ication ski,,s is not )nou-h today. 3o -iv) b)tt)r su++ort 4or 7))tinth) n))ds o4 a co7+any, IS +)rsonn), a,so n))d to d)v),o+ a b)tt)r und)rstandin- o4 busin)ss o+)rations 0Pa,via )t a,., !""/2. 6ducatin- I3 +ro4)ssiona,s on busin)ss kno@,)d-) is th)r)4or) addr)ss)d in this study. At this +oint, k)y issu)s r),at)d to I3 +)rsonn), durinth) 6RP s),)ction +roc)ss ar) r)cruitin- qua,i4i)d IS +)rsonn),, r)t)ntion and r)5 )ducation o4 IS +)rsonn),, and acquaintin- IS +)rsonn), @ith busin)ss kno@,)d-).
<o7+ani)s 4r)qu)nt,y s)arch 4or assistanc) 4ro7 )(t)rna, )(+)rts @h)n +rob,)7s such as hi-h,y c)ntra,i8)d or-ani8ation structur) and r)sourc) +ov)rty ar) )vid)nt 03hon- )t a,., !""'2. <onsu,tants and I3 v)ndors can +,ay a ro,) as kno@,)d-) +rovid)rs to ,o@)r
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to+5do@n co77unication tak) +,ac) @h)n in4or7ation r)-ardin- IS +o,ici)s on th) kno@,)d-) barri)r or r)duc) +roC)ct +rioriti)s, +roC)ct obC)ctiv)s, and s),)ction kno@,)d-) crit)ria is +ass)d 4ro7 to+ d)4ici)ncy. 7ana-)7)nt to us)rs. S+)ci4ica,,y, consu,tants can Aurth)r7or), in4or7ation r)-ardin- bud-)t +o,ici)s, h),+ in IS standards, and th) +r)d)4in)d r)quir)7)nt n))ds o4 s)nior 7ana-)7)nt ana,ysis, is +ass)d to IS +)rsonn),. hard@ar) and Botto75u+ co77unication so4t@ar) r)co77)ndation occurs @hi,) n)@ us)rsK n))ds and inv)st7)nt r)qu)sts 4ro7 s, and i7+,)7)ntation IS +)rsonn), ar) r)+ort)d to to+ 7ana-)7)nt. Para,,), 7ana-)7)nt co77unication b)t@))n @hi,) v)ndors us)rs and IS +)rsonn), is can +rovid) r)quir)d to obtain th) suitab,) cons)nsus o4 th) d)7and and hard@ar) and th) su++,y. <o77unication so4t@ar) b)t@))n int)rna, -rou+s and +acka-)s, t)chnica, su++ort )(t)rna, -rou+s 0v)ndor and consu,tant2 cou,d not b) and us)r i-nor)d )ith)r. 3hus, trainin-. achi)vin- )44)ctiv) 3h)r)4or), t@o co77unication a7on- a,, 7or) issu)s -rou+s is anoth)r k)y issu) n))d to b) durinth) s),)ction o4 6RP. inc,ud)d )nhancinv)ndor su++ort and i7+rovinTHE PRACTICE OF 7ana-)7)nt ERP SELECTION IN consu,tation NEW ZEALAND )44)ctiv)n)ss. 3o obtain th) task o4 )44)ctiv) i7+,)7)ntation , it is )ss)ntia, to achi)v) th) +artici+ation, coordination and coo+)ration a7on- a,, -rou+s. Past studi)s on IS i7+,)7)ntation s su--)st that )44)ctiv) co77unication is crucia, 4or th) succ)ss4u, i7+,)7)ntation o4 any syst)7 0Brook)s )t a,., !"&/2. Fithin th) or-ani8ation, It is obs)rv)d 4or th) cas) o4 6RP i7+,)7)ntation that thr)) +arti)sBth) c,i)nt, th) consu,tant and th) v)ndorBar) invo,v)d in both th) s),)ction and i7+,)7)ntation. Pri7ary data @as co,,)ct)d throu-h an int)rvi)@ @ith th) 6RP consu,tants, 6RP v)ndors and 7ana-)rs in or-ani8ations i7+,)7)ntin- an 6RP syst)7. 6RP syst)7s inc,ud)d SAP, :rac,), Baan and J.D. 6d@ards. 3h) int)rvi)@ ,ast)d b)t@))n G1 7inut)s to on) and ha,45 hours. In a 4)@ occasions, and b)caus) th) 4ac)5to54ac) int)rvi)@ @ith th) tar-)t in4or7ant cou,d not b) arran-)d, th) int)rvi)@ @as h),d on th) +hon) and ,ast)d b)t@))n !$ and !1 7inut)s. Lu)stions @)r) o+)n5)nd)d
and unstructur)d. 7ana-)r and th) In4or7ants @)r) i7+,)7)ntation consu,tant @)r) )ncoura-)d to trian-u,at)d to d)v),o+ th) 6RP r)4,)ct on th)ir s),)ction and i7+,)7)ntation )(+)ri)nc) o4 6RP story 0Shakir, /$$$2. A 4indini7+,)7)ntation. o4 th) 6RP s),)ction strat)-y in :n) +art o4 th) N)@ E)a,and is +rovid)d b),o@. study inc,ud)d a It is 7)ntion)d )ar,i)r that cas) study o4 6RP thr)) +arti)sBth) c,i)nt, th) i7+,)7)ntation in consu,tant and th) v)ndorBar) a h)a,th s)rvic) invo,v)d in th) s),)ction as @),, +rovid)r as th) i7+,)7)ntation o4 6RP. or-ani8ation, Ai-ur) / out,in)s th) thr)) 7ain @h)r) th) t@o stak)ho,d)rs invo,v)d in th) +)rs+)ctiv)s o4 s),)ction and i7+,)7)ntation o4 on) o+)rationa, 6RP syst)7s.
2 1 0 -
+igure 9: Stak)ho,d)rs invo,v)d in th) s),)ction and i7+,)7)ntation o4 6RP Int)rvi)@ 4indin-s su--)st that c,i)nts or co7+ani)s int)ndin- to s),)ct and i7+,)7)nt 6RP usua,,y r)qu)st th) bid 4or consu,tant. 6ach consu,tant or consu,tin- 4ir7 int)ndinto +artici+at) in th) s),)ction and i7+,)7)ntation +roc)ss o4 6RP is r)quir)d to sub7it a d)tai,)d +ro+osa, hi-h,i-htin- r)c)nt r)s)arch studi)s, hav) a discussion @ith c,i)nts to id)nti4y th) k)y busin)ss +roc)ss)s 0?BPs2, and +rovid) a -uid) or 7)thodo,o-y to -uid) th) s),)ction +roc)ss o4 6RP. In th) +roc)ss o4 id)nti4yin- th) ?BPs, th) consu,tant -)ts invo,v)d @ith busin)ss 7ana-)rs in d)v),o+in- contacts @ith oth)r or-ani8ations in th) sa7) industri)s to +rovid) an und)rstandin- o4 th)ir 6RP s),)ction strat)-i)s. N)@ E)a,and 4indin-s su--)st that it is th) r)s+onsibi,ity o4 th) consu,tant to invit) th) v)ndors to sub7it th)ir +ro+osa, hi-h,i-htin- th) +ric), 4unctiona,iti)s o4 th) so4t@ar) and d)7onstration o4 )(+)ct)d so,utions. A,, thr)) +arti)sBth) c,i)nt, th) consu,tant and th) v)ndorBar) invo,v)d in th) so,ution d)7onstration +has) o4 6RP s),)ction. :nc) th) so,ution d)7onstration +has) has b))n co7+,)t)d, it is th) r)s+onsibi,ity o4 th) consu,tant to -uid) th) c,i)nt throu-h th) short5,istin- +roc)ss. 3h) +roc)ss o4 short5,istin- is o4t)n it)rativ) and th) co7+,)(ity and d)tai,s o4 th) +roc)ss incr)as) @ith th) nu7b)r o4 cyc,)s invo,v)d. In th) 4ina, d)cision to s),)ct an 6RP, th) consu,tant usua,,y acts as a si,)nt +artn)r and assists th) c,i)nt @ith th) d)cision to s),)ct i4 r)qu)st)d. :nc) th) 6RP o44)rin- o4 a +articu,ar v)ndor is s),)ct)d, th) c,i)nt, th) consu,tant and th) v)ndor @ork c,os),y 4or th) i7+,)7)ntation. A,, thr)) +arti)s ar) as @),, invo,v)d in th) +ost5 i7+,)7)ntation +has) o4 6RP. Ai-ur) # +rovid)s a -)n)ric 7od), o4 th) 6RP s),)ction +roc)ss in N)@ E)a,and.
-211TEAM FLY
+igure =: A -)n)ric 7od), o4 th) 6RP s),)ction +roc)ss in N)@ E)a,and 0Shakir, /$$$2
CONCLUSIONS
N)@ E)a,and 4indin-s su--)st that th) 6RP s),)ction +roc)ss is di44)r)nt 4ro7 th) s),)ction +roc)ss 4or oth)r ,ar-) I3 inv)st7)nts as consid)rations 4or busin)ss +roc)ss)s ar) an int)-ra, +art o4 6RP s),)ction. It is a,so )vid)nt that 7ost N)@ E)a,and or-ani8ations s),)ct th)ir consu,tants and ,)t th)7 -uid) th) 6RP s),)ction, i7+,)7)ntation as @),, as +ost5i7+,)7)ntation +roc)ss. 3his I3 outsourcin- activity is incr)asin-,y b)co7inan i7+ortant activity 4or 7aintainin- and sustainin- or-anisationa, co7+)titiv)n)ss 4or 7ost o4 th) SM6s in N)@ E)a,and. It is a,so i7+ortant to not) that th) incr)asin- cost o4 6RP i7+,)7)ntation as @),, as th) +ost5 i7+,)7)ntation costs invo,v)d in th) 7aint)nanc) o4 a syst)7 ar) )ncoura-in- s7a,,5to57)diu75si8)d or-ani8ations to 7ov) to@ards outsourcin- as a surviva, strat)-y. 3his study a,so su--)sts that th) b)st5o45 br))d strat)-y can )asi,y b) achi)v)d throu-h th) ado+tion o4 s),)ctiv) outsourcin-. 3h) 7aCority o4 th) outsourc)d activiti)s @)r) I3 in4rastructur) activiti)s such as disast)r r)cov)ry rath)r than I3 d)v),o+7)nt or I3 strat)-y. 3h) 4o,,o@in- I3 outsourcin- b)n)4its ar) id)nti4i)d in r),ation to th) 6RP s),)ction strat)-y ado+t)d by SM6s in N)@ E)a,andB0i2 cost r)ductionN 0ii2 in5hous) I3 sta44 on 7or) va,u)5add)d I3 @ork and busin)ss a++,icationsN and, 0iii2 i7+rov)d 4,)(ibi,ity o4 I3 b)caus) th) outsourc)rKs costs ar) 7or) 4,)(ib,) than in5sourcin- costs that ar) 4i()d. :th)r 4actors such as i7+rov)d qua,ity o4 s)rvic), i7+rov)d us) o4 I3 r)sourc)s, acc)ss to scarc) I3 ski,,s, i7+rov)d busin)ss 4,)(ibi,ity, 4ocus on cor) busin)ss, b)tt)r 7ana-)7)nt contro,, acc)ss to n)@ I3, ba,anc)d +roc)ssin- ,oads, and h),+ in cash +rob,)7s @)r) a,so )vid)nt 4ro7 th) 4indin-s.
ENDNOTES
212-
1. 3h
) s) ar ch @a s ca rri )d ou t on th ) !' th o4 Ju n) !" "" an d co v) r) d +u b,i ca tio ns da t) d !" "% ti,, th ) )n d o4 Ma y !" "" . S) ar ch r) su, ts 4or th )
2.
R#e-%inde1S databas) r)su,t)d in G# 7atchin- o4 1,/&&,!'/ docu7)nts. Most o4 th) 7atchin- tit,)s @)r) artic,)s in Computer-orld #e- /ealand. S)arch r)su,ts 4or th) RN)@8t)(t N)@s+a+)rsS databas) r)su,t)d in %1 7atchin- o4 G&/,11G docu7)nts. Most o4 th) 7atchin- tit,)s @)r) artic,)s in #/ Infotech .ee+ly. :rac,) r)v)nu) ca,cu,at)d to a si7i,ar +)rc)nta-) o4 its !""& r)v)nu) usinth) 4i-ur)s +ub,ish)d by 6n8@)i,)r *rou+ 0!"""2. :rac,)Ks r)v)nu) +ub,ish)d on its F)b sit) is T&,&$$ 7i,,ion and inc,ud)s databas) sa,)s as @),, as :rac,) a++,ications.
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Chap ter K<G: Csin g Cost /ene fit &nal (sis for Ente rpris e Reso urce Plan ning Pro7 ect E!al uatio n: & Case for <nclu "ing <nta ngibl es
OVERVIEW
5enneth E% $urph( an" 4te!en John 4i'on A,orida Int)rnationa, >niv)rsity, >SA <o+yri-ht . /$$/, Id)a *rou+ Pub,ishin-. 3h) -oa, o4 this cha+t)r is to d)7onstrat) ho@ cost b)n)4it ana,ysis can b) a++,i)d to ,ar-)5sca,) 6RP +roC)cts and that th)s) 7)thods can incor+orat) th) intan-ib,) b)n)4its, ).-., us)r satis4action. D)tai,)d in4or7ation on th) busin)ss cas) uti,i8)d by a ,ar-) co7+ut)r 7anu4actur)r in th)ir d)cision to i7+,)7)nt th) SAP syst)7 RI# is +r)s)nt)d. F) i,,ustrat) ho@ this or-ani8ation uti,i8)d t)chniqu)s to inc,ud) intan-ib,)s in th) i7+,)7)ntation +roC)ctKs cost b)n)4it ana,ysis. 3h) cha+t)r conc,ud)s @ith a discussion on th) stat) o4 va,uin- 6RP +roC)cts and qu)stions to b) ans@)r)d in th) 4utur).
INTRODUCTION
In !""&, )(+)nditur)s 4or in4or7ation t)chno,o-y 0I32 account)d 4or 7or) than 1$U o4 cor+orationsK annua, ca+ita, inv)st7)nt in d)v),o+)d )cono7i)s, and th)s) out,ays @i,, av)ra-) 1U o4 tota, cor+orat) r)v)nu)s by /$!$ 0*ra)s)r, Fi,,cocks, ; Pisanias, !""&2. *iv)n th) sta--)rina7ount o4 r)sourc)s d)vot)d to I3, T1#$ bi,,ion @or,d@id) in !""1, on) @ou,d )(+)ct 7ana-)rs to hav) a 4ir7 -ras+ o4 th) antici+at)d contribution o4 th)ir I3 inv)st7)nts to th) or-ani8ationKs +ro4it 7ar-in. Ho@)v)r, quantitativ) 7)asur)7)nts o4 an I3 +roC)ctKs )(+)ct)d r)turn ar) not o4t)n us)d, +ri7ari,y b)caus) th)y ar) unab,) to ca+tur) 7any o4 th) qua,itativ) and intan-ib,) b)n)4its that ar) )(+)ct)d 0Aarb)y, Land, ; 3ar-)tt, !""/2. Sti,,, 7ana-)rs 7ust Custi4y syst)7
inv)st7)nts, and is critica,, th)s) R7)asur)s h)nc) Rcost 7ay b) quantitativ) in natur), b)n)4it ana,ysis but th)y 7ust a,so b) has assu7)d a qua,itativ) as @),,.S 3h) +ivota, +osition in +rob,)7 has -ro@n as IS th) in4or7ation d)+art7)nts hav) advanc)d syst)7s b)yond i7+,)7)ntinr)vo,utionS transaction +roc)ssin0Sasson), !"&&2. syst)7s, @ith r)turns that ar) r),ativ),y )asi,y to quanti4y, to In4or7ation th) i7+,)7)ntation o4 syst)7 +roC)ct 7ana-)7)nt in4or7ation, )va,uation is d)cision su++ort and cha,,)n-innot kno@,)d-) 7ana-)7)nt b)caus) th) syst)7s. Syst)7s in th) ,att)r +roC)cts cannot cat)-ory +roduc) 7)asurab,) b) Custi4i)d but b)n)4its that ar) 4u88y at b)st b)caus) th)y and d)4y conv)ntiona, 7)thods cannot b) 4or quanti4yin- th) b)n)4its. Custi4i)d in t)r7s 3h) 4ai,ur) o4 traditiona, @hich 7)asur)s to ad)quat),y accountants and ca+tur) th) tru) va,u) o4 th) so7) s)nior in4or7ation t)chno,o-y 7ana-)rs ar) syst)7s @as obs)rv)d in th) +r)+ar)d to )ar,y days o4 MIS as an acc)+t 0*unton, acad)7ic disci+,in) 0McR)a, !"&&2. Accordin- !"%$2. 3his 7)asur)7)nt to Mah7ood and di,)77a has -ro@n @ors) as S8)@c8ak 0!"""2 I3 b)co7)s +art o4 th) th) issu) o4 or-ani8ationKs n)rvous syst)7 7)asurinor in4rastructur) and is a inv)st7)nts in I3 critica, +art o4 its structur)s
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and +roc)ss)sN @h)r) a,, ),)7)nts ar) int)-rat)d ass)ssin- r)turns on individua, ass)ts is i7+ractica,. Mor)ov)r, such int)-rat)d syst)7s @i,, a,so b) )(tr)7),y va,uab,) as r)+ositori)s to aid in strat)-ic d)cision57akin-. In addition to th) 4actors ,ist)d abov) th)r) is sti,, a @id)s+r)ad ,ack o4 und)rstandin- o4 I3 and in4or7ation syst)7s as a 7aCor ca+ita, ass)t 0Fi,,cocks ; L)st)r, !"""2. In todayKs dyna7ic and co7+)titiv) )nviron7)nt, s)nior 7ana-)rs ar) d)7andin4i-ur)s that d)riv) an I3 +roC)ctKs r)turn b)4or) th) +roC)ct is und)rtak)n. 3h)r)4or), <I:s and th)ir I3 sta44s ar) b)-innin- to r),y on both tan-ib,) and intan-ib,) 7)asur)s to d)t)r7in) a syst)7Ks contribution to an or-ani8ationKs botto7 ,in). 3his +roc)dur) is a n)@ )nd)avor 4or 7any I3 sta44s )s+)cia,,y as th)y stru--,) to conv)rt intan-ib,) 7)asur)s such as us)r satis4action to a tan-ib,) quantity suitab,) 4or inc,usion in cost X!Y b)n)4it ca,cu,ations. 3his study )(a7in)s <onso,idat)d <o7+ut)r <o7+anyKs 0<<<2 )44orts to d)t)r7in) th) contribution o4 a +ro+os)d )nt)r+ris) r)sourc) +,annin- 06RP2 syst)7 th)y ar) s))kin- a++rova, to i7+,)7)nt.
3h) 4irst +art o4 th) cha+t)r +r)s)nts a bri)4 introduction to 6RP syst)7s, 4o,,o@)d by a s)ction @h)r) @) d)4in) and discuss 7)thods 4or )va,uatin- I3 inv)st7)nts and +rovid) so7) d)tai, on a 4a7i,y o4 t)chniqu)s kno@n as cost b)n)4it ana,ysis 0<BA2. F) th)n discuss th) @id) ran-) o4 intan-ib,)s that 7ay )nt)r into <BA ca,cu,ations, @hich ,)ads to th) +r)s)ntation o4 a 7)thod 4or inc,udin- intan-ib,)s in a <BA s)ttin-. 3h) ,att)r +art o4 th) cha+t)r +r)s)nts a cas) study in @hich <onso,idat)d <o7+ut)r <o7+any s))ks to us) <BA to Custi4y th) i7+,)7)ntation o4 an 6RP syst)7 and d)7onstrat)s ho@ an intan-ib,) 4actor, us)r satis4action, can b) inc,ud)d in th) ana,ysis.
X!Y
3h) na7) is 4ictiona,, th) co7+any and cas) study ar) r)a,.
ERP SYSTEMS
=8>
6nt)r+ris) r)sourc) +,annin- 06RP2 is a t)r7 us)d to d)scrib) busin)ss so4t@ar) that is !2 7u,ti4unctiona, in sco+), /2 int)-rat)d in natur), and #2 7odu,ar in structur). An 6RP so4t@ar) so,ution is a++ro+riat) @h)n an or-ani8ation is s))kin- th) b)n)4its o4 busin)ss +roc)ss int)-ration and cont)7+orary b)st +ractic)s in its in4or7ation syst)7, ,ookin- 4or a 4u,, ran-) o4 4unctiona,ity throu-hout its or-ani8ation, and s))kin- to ,i7it its i7+,)7)ntation and on-oinsu++ort costs 0Norris )t a,., !""&2. Historica,,y, th) 7ark)t 4or 6RP so,utions has b))n ,ar-) 7u,tinationa, 7anu4acturin- co7+ani)s 0r)v)nu)s ov)r T! bi,,ion2 @hich o+)rat) in a discr))t 7anu4acturin- )nviron7)nt. 3oday, ho@)v)r, th) 7ark)t is )(+andin- to 7id5 0T/1$ 7i,,ion to T! bi,,ion2 and s7a,,5 si8)d 0und)r T/1$ 7i,,ion2 co7+ani)s across a @id) ran-) o4 industry s)ctors. 3h) 7ark)t is do7inat)d by SAP5A* o4 *)r7any, @hich ho,ds ov)r %$U o4 th) so4t@ar) 7ark)t @ith th)ir RI# syst)7. 6RP syst)7s hav) th)ir ori-ins in 7anu4acturin- r)sourc) +,annin- 0MRP2 so4t@ar) @ith insta,,ations traditiona,,y in ,ar-)5sca,) 7anu4acturin- 4aci,iti)s. Ho@)v)r, r)c)nt,y th) tr)nd is to )(t)nd insta,,ations to industry s)ctors inc,udin- t),)co77unications, -ov)rn7)nt, insuranc), -as and oi,, and hi-h5t)ch 7anu4acturin-. Air7s i7+,)7)ntinth) so4t@ar) -)n)ra,,y s))k +roc)ss5ori)nt)d incr)as)s in +roductivity, u+5to5th)5 7inut) acc)ss to ti7),y in4or7ation, and cost5savin- )44ici)nci)s. 3h) syst)7s ar) kno@n 4or th)ir +roc)ss ori)ntation rath)r than traditiona, 4unctiona, ori)ntation, and this 7ay a,so )nhanc) an or-ani8ationKs 7ov) to@ard br)akin- do@n d)+art7)nta, boundari)s and thinkin-. 3h) u,ti7at) -oa, o4 7any or-ani8ations i7+,)7)ntin- 6RP +acka-)s is to car)4u,,y r))n-in))r th)ir +roc)ss)s, @hich in turn @i,, ho+)4u,,y b)n)4it th) botto7 ,in).
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Most 6RP +acka-)s +rovid) 4or a 4,)(ib,) or-ani8ation structur) @ith 4ir7s s),)ctin@hich co7+on)nts th)y choos) to us) and ho@ to i7+,)7)nt th)7. Sinc) th) syst)7 is 4u,,y con4i-urab,), th) or-ani8ation turns on on,y thos) +ortions o4 th) +acka-) it r)quir)s. 3h) syst)7s ar) d)si-n)d @ith an o+)n archit)ctur), 4aci,itatin)(+ansion 4or 4utur) 7odu,)s and a,,o@inbo,t5on a++,ications 4ro7 th)ir a++rov)d v)ndors. <urr)nt,y, th) +acka-)s ar) b)in- )nhanc)d @ith too,s such as data @ar)housin-, advanc)d +,annin- and sch)du,ino+ti7i8)rs, )()cutiv) d)cision su++ort syst)7s, and too,s to )nab,) ),)ctronic co77)rc).
th) +roC)cts tak) an av)ra-) o4 /# 7onths, @ith th) tota, cost o4 o@n)rshi+ )sti7at)d at T!1.' 7i,,ion 0M)ta *rou+, !"""2. In ,ar-) co7+ani)s, ).-., Aortun) !$$$, i7+,)7)ntations can )(c))d s)v)ra, hundr)d 7i,,ion do,,ars and 7ay tak) 1 y)ars to acco7+,ish. Q)t, d)s+it) th) consid)rab,) inv)st7)nt in ti7), ca+ita,, and r)sourc)s th) r)turn on syst)7 inv)st7)nt is not c,)ar. A surv)y o4 '# co7+ani)s @ith 6RP syst)7s discov)r)d an av)ra-) n)-ativ) va,u) o4 T!.1 7i,,ion @h)n quanti4iab,) cost savin-s and r)v)nu) -ains @)r) ba,anc)d a-ainst s+)ndin- on hard@ar), so4t@ar), consu,tin-, and su++ort 0M)ta *rou+, !"""2. Additiona,,y, an)cdota, )vid)nc) su--)sts that 6RP 4ai,ur)s hav) contribut)d to th) bankru+tcy o4 co7+ani)s, ).-., Ao(5M)y)r Dru-s 0Bu,k),y, !""'2. Q)t d)s+it) n)-ativ) r)+orts such as th) M)ta *rou+Ks, 6RP i7+,)7)ntations ar) +roc))din- at a r)cord +ac) @ith an abundanc) o4 succ)ss stori)s such as <ara Air+ort S)rvic)s, @hich sav)d %U on +roduction costs a4t)r th)ir i7+,)7)ntation o4 J. D. 6d@ardsK a++,ication 0St)d7an, !"""2.
*iv)n th) -ro@in- )(+)nditur)s r)quir)d to i7+,)7)nt ,ar-)5 sca,) syst)7s such as 6RP and in4rastructur) +roC)cts, s)nior 7ana-)7)nt is d)7andin- that chi)4 in4or7ation o44ic)rs 0<I:s2 +rovid) 7)trics to 7)asur) syst)7 contribution to th) or-ani8ation. <I:s ar) b)incount)d on to d),iv)r cost savin-s @hi,) addinco7+)titiv) va,u) as o++os)d 3h) cost o4 i7+,)7)ntin- an to 7)r),y d)+,oyin- syst)7s. 3h)s) 7ana-)rs ar) r)quir)d to 6RP syst)7 Custi4y 6RP inv)st7)nts throu-h vari)s. 7)trics @hi,) d)7onstratinA++ro(i7at) that +roC)cts ar) satis4yincosts 4or i7+,)7)ntations busin)ss obC)ctiv)s. 3h) us) o4 7)trics a,,o@s th) <I: to sho@ in s7a,,)r @hat busin)ss +rob,)7s ar) co7+ani)s ar) T!$ 7i,,ion, and b)inso,v)d @hi,) +rovidin)vid)nc) o4 th) +roC)ctKs
+ro4itabi,ity.
th)s) syst)7s @as r),ativ),y )asy. 3h) sa,ary o4 @ork)rs to 3h) +roc)ss o4 b) r)+,ac)d @as co7+ar)d quanti4yin- th) a-ainst th) cost o4 th) syst)7 va,u) o4 I3 and h)nc) th) +roC)ctKs va,u) +roC)cts @as )sti7at)d. As syst)7s b)co7)s 7uch b)ca7) 7or) co7+,)( and 7or) di44icu,t as b)-an to su++ort oth)r ty+)s th) sco+) and o4 activiti)s, ).-., d)cision 7a-nitud) o4 7akin-, th) abi,ity to quanti4y +roC)cts -ro@. th)ir +ayback b)ca7) 7or) 6RP syst)7 di44icu,t. It @as c,)ar that i7+,)7)ntations 7or) and b)tt)r in4or7ation -)n)ra,,y i7+rov)d d)cision 7akin-, r)quir) ,ar-) but it @as v)ry cha,,)n-in- to ca+ita, quanti4y th) va,u) o4 a b)tt)r inv)st7)nts d)cision. B)tt)r d)cisions and, b)caus) o4 r)+r)s)nt on) 4or7 o4 th)ir int)-rat)d intan-ib,) b)n)4it d)riv)d natur), +oss)ss 4ro7 th) I3 syst)7. a @id) and co7+,)( sco+). 3his +roc)ss has b)co7) )v)r 6ar,y busin)ss 7or) co7+,icat)d @ith th) in4or7ation adv)nt o4 ,ar-)5sca,) +roC)cts syst)7s @)r) such as 6RP syst)7s and oth)r transaction in4rastructur) t)chno,o-i)s. In +roc)ssinth) cas) o4 in4rastructur) syst)7s 03PSs2, +roC)cts, th) b)n)4its in +art d)si-n)d to ar) 4ound in th) s)rvic)s that r)+,ac) @ork)rs th)y su++ort and )nhanc). @ho +)r4or7)d Aor instanc), u+-radin- th) r)+)titiv) tasks, t),)co77unication ).-., +ayro,, in4rastructur) cou,d b) c,)rks. 3h) 7)asur)d in incr)as)d d)t)r7ination o4 band@idth or )v)n ho@ 7uch th) costs and 4ast)r 4i,)sI in4or7ation is th) b)n)4its 4or
trans4)rr)d. Fhi,)
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th) i7+rov)7)nts in th)s) 7)trics ar) tan-ib,), it is cha,,)n-in- to ,ink th)ir r),ationshi+ to th) 7on)tary b)n)4its r)su,tin- 4ro7 incr)as)d 7ark)t shar) as a r)su,t o4 a custo7)rKs r)+)at visits to an ),)ctronic co77)rc) sit). :n) o4 th) 6RP syst)7Ks -r)at)st b)n)4its is its abi,ity to int)-rat), standardi8) and +rovid) r)a,5ti7) visibi,ity to an or-ani8ationKs data. 3his b)n)4it has b))n attribut)d to incr)asin- +roductivity and i7+rovin- 7ana-)7)nt d)cision57akin-. Q)t, -iv)n th) task o4 quanti4yin- this b)n)4it, 7any or-ani8ations stat) that it is b)yond th)ir abi,ity to 7)asur) and h)nc) ,ist it as an intan-ib,).
X/Y
Additiona, in4or7ation on 6RP and SAPKs RI# can b) 4ound at @@@.sa+.co7 or in on) o4 7any curr)nt busin)ss +ub,ications.
EVALUATION TECHNI?UES FOR TECHNOLOGY INVESTMENTS

In this s)ction @) bri)4,y +r)s)nt a vari)ty o4 t)chniqu)s 4or 7)asur)7)nt o4 t)chno,o-y inv)st7)nts and ar-u) @hy a 4a7i,y o4 7)thodo,o-i)s kno@n as cost b)n)4it ana,ysis 0<BA2 is o4t)n th) 7)thodo,o-y uti,i8)d in +ractic). 3o d)t)r7in) th) b)n)4its o4 I3 +roC)cts F)hrs 0!"""2 di44)r)ntiat)s b)t@))n )( ant) and )( +ost )va,uation. In )( ant) )va,uation th) 4ocus is on Custi4yin- th) I3 inv)st7)nt b)4or) it is 7ad), and in )( +ost)va,uation th) -oa, is to Custi4y costs that hav) b))n incurr)d so as to -uid) 4utur) I3 )(+)nditur)s. In this cha+t)r @) ar) takin- th) )( ant) vi)@ o4 th) I3 inv)st7)nt, that is, our -oa, is to 4ocus on th) inv)st7)nt d)cision and not th) Custi4ication o4 costs a,r)ady incurr)d 4ro7 an I3 +roC)ct. F)hrs +artitions )( ant) ana,ysis into thr)) 7aCor s)ts o4 t)chniqu)s d)cision th)ory, us)r in4or7ation satis4action, and <BA.
D)cision th)or)tic a++roach)s inc,ud) in4or7ation )cono7ics 0Park)r ; B)nson, !"&&2 and 7u,ti5crit)ria a++roach)s 0?))ny ; Rai44a, !"%'N Land, !"%'2. In this c,ass o4 a++roach)s, th) d)cision 7ak)r att)7+ts to 7a(i7i8) th) or-ani8ationKs uti,ity or va,u) 4unction by takin- th) +r)4)rr)d action ov)r th) s)t o4 choic)s 4or th) 4ir7. In4or7ation )cono7ics s)ts out to rank or 7)asur) th) 4inancia, i7+act o4 chan-)s brou-ht about by i7+,)7)ntinth) n)@ in4or7ation syst)7. 3h) 7u,ti5crit)ria a++roach 7)asur)s th) va,u) o4 an I3 +roC)ct, +)rha+s in t)r7s oth)r than )cono7ic, and a,,o@s 4or a++raisa, o4 th) r),ativ) va,u) o4 di44)r)nt +roC)ct outco7)s. Both a++roach)s a,,o@ 4or th) adv)nt o4 unc)rtainty and 4or th) 4act that di44)r)nt stak)ho,d)rs 7ay hav) di44)r)nt vi)@s on th) b)n)4its o4 th) +roC)ct. I7+,)7)ntation o4 this c,ass o4 7od),s is co7+,)(, r)quirinth) s+)ci4ication o4 outco7)s 4or th) 4ir7, th) or-ani8ationa, uti,ity or va,u) d)riv)d 4ro7 )ach outco7), and th) +ot)ntia, actions avai,ab,) to th) or-ani8ation. In in4or7ation )cono7ics on) 7ust a,so d)4in) th) transition 7atri(, d)scribin- th) ,ik),ihood o4 7ovin- 4ro7 on) outco7) stat) to anoth)r -iv)n th) action tak)n. Fhi,) both a++roach)s hav) d))+ th)or)tica, roots, th)y hav) b))n critici8)d by ?,)iCn)n 0!"&$a, !"&$b2 and 3r)acy 0!"&!2 4or th) )(t)nt o4 kno@,)d-) r)quir)d by th) d)cision 7ak)r to )sti7at) 7od), +ara7)t)rs and )quations, th) assu7)d rationa,ity o4 th) d)cision 7ak)r and th) r),ativ) si7+,icity o4 this c,ass o4 7od),s in -)n)ra,. 3h) ,it)ratur) on us)r in4or7ation satis4action inc,ud)s t@o 7aCor schoo,s, us)r satis4action and syst)7 us) 0M),on), !""$2. Iv)s, :,son, and Baroudi 0!"&#2 introduc) th) conc)+t o4 us)r in4or7ation syst)7s 0>IS2 as a 7)thod to )va,uat) I3 inv)st7)nts by 7)asurin- th) )(t)nt to @hich us)rs b),i)v) th) in4or7ation syst)7 avai,ab,) to th)7 7))ts th)ir in4or7ation r)quir)7)nts. >IS is acc)+t)d as a surro-at) 7)asur) 4or chan-)s in or-ani8ationa, )44)ctiv)n)ssBth) r)a, -oa, o4 in4or7ation syst)7 i7+,)7)ntation. Ho@)v)r, authors hav) critici8)d th) >IS 7)asur) b)caus) o4 its ,ack
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o4 th)or)tica, basis and b)caus) o4 a ,ack o4 )7+irica, @ork va,idatin- th) r),ationshi+ b)t@))n subC)ctiv) ass)ss7)nt outco7)s and )cono7ic +)r4or7anc) 0F)hrs, !"""2. Accordin- to M),on) 0!""$2, th) ,it)ratur) on >IS indicat)s that, on its o@n, >IS cannot b) a surro-at) 4or )44)ctiv)n)ss o4 an in4or7ation syst)7. S@anson 0!"&&2, on th) oth)r hand, ar-u)s that th) us)r attitud)s ar) 7)asur)d b)caus) in4or7ation syst)7s )(ist 4or th) +ur+os) o4 s)rvin- c,i)nt int)r)st, and h)nc), individua, ass)ss7)nts o4 in4or7ation syst)7s ar) h),d to 7att)r. <ost b)n)4it ana,ysis 0<BA2 has b))n @id),y uti,i8)d to co7+ar) th) costs and b)n)4its o4 a,, ty+)s o4 ca+ita, inv)st7)nt +roC)cts 0Pr)st ; 3urv)y, !"'12. It s))7s to b) th) 4a7i,y o4 t)chniqu)s 7ost o4t)n uti,i8)d in ca,cu,atinth) )cono7ic va,u) o4 I3 +roC)cts 0Bacon, !""/N Aarb)y, Land, ; 3ar-)tt, !""/2. In a,, <BA a++roach)s th) 4utur) str)a7 o4 )cono7ic b)n)4its and costs is )sti7at)d and th) va,u) o4 )ach +roC)ct o+tion is ca,cu,at)d. :n) 7aCor b)n)4it o4 th) 4a7i,y o4 <BA a++roach)s to 7ana-)rs is that th) r)su,ts ar) r),ativ),y )asy to int)r+r)t, @hi,) th) -r)at)st cha,,)n-) invo,v)s th) ad)quat) 7)asur)7)nt o4 +roC)ct costs and b)n)4its 0BrynCo,4sson, !""#2. D)tai,)d ,ists o4 th) s)t o4 7)thodo,o-i)s that 4a,, und)r th) <BA u7br),,a can b) 4ound in ?in- and Schr)7s 0!"%&2, Sasson) and Scha44)r 0!"%&2 and Sasson) 0!"&&2. B)caus) o4 th) cha,,)n-)s associat)d @ith +rovidin- )cono7ic va,u) 4or th) costs and b)n)4its in I3 +roC)cts, Dos Santos 0!""!2 has +ro+os)d a 7or) co7+,)( I3 +roC)ct va,uation 7od), bas)d on th) id)a that subs)qu)nt +roC)ct inv)st7)nts ar) o+tiona,. 3h) subs)qu)nt d)cisions can b) 7ad) @h)n additiona, in4or7ation conc)rnin- +roC)ct succ)ss has b))n r)v)a,)d. It is -)n)ra,,y acc)+t)d that a,, <BA activiti)s r)quir) )sti7at)s o4 costs and b)n)4its in 4utur) ti7) +)riods. 3h)s) )sti7at)s shou,d account 4or th) r),)vant costs at )ach sta-) o4 th) +roC)ct or syst)7Ks ,i4) cyc,). Most authors 0Har)s ; Roy,), !""GN Sasson) ; Scha44)r, !"%&2 7ak) stron- ar-u7)nts 4or th) inc,usion o4 discount 4actors in <BA ana,ysis. Additiona,,y it is th) cons)nsus that +ro+)r i7+,)7)ntation o4 <BA inc,ud)s th) us) o4 7ar-ina, v)rsus av)ra-) va,u) ana,ysis and that car)4u, s)nsitivity ana,ysis shou,d a,@ays b) +art o4 th) +roc)ss. 3h) cha,,)n-) o4 )44)ctiv) ass)ss7)nt o4 costs and b)n)4its is at th) h)art o4 any <BA activity, and Sasson) 0!"&&2 ,ists s)v)n -)n)ric 7)thods 4or acco7+,ishin- this task. Ao,,o@inth) ass)ss7)nt o4 costs and b)n)4its, on) o4 a nu7b)r o4 outco7) 7)asur)s is ca,cu,at)d. 3h) 7ost co77on 7)asur)s inc,ud) n)t +r)s)nt va,u) 0NP=2, int)rna, rat) o4 r)turn 0IRR2 and +ayback +)riod. 3h) 4or7u,a 4or co7+utin- n)t +r)s)nt va,u), NP= 0Sasson) ; Scha44)r,
In this 4or7u,a Bi and <i ar) th) va,u)s o4 th) b)n)4it and cost 4or th) i +)riod in th) 4utur) and d is th) discount 4actor. In this 4or7u,a th) NP= is ca,cu,at)d 4ro7 th) curr)nt +)riod 0ti7) $2 unti, +)riod 3. A -r)at)r va,u) 4or NP= is assu7)d to b) an indication o4 a 7or) d)sirab,) +roC)ct. :n) +rinci+a, criticis7 o4 th) us) o4 NP= as a crit)rion to Cud-) a +roC)ct is th) choic) o4 th) discount 4actor, d. Ho@)v)r, s)nsitivity ana,ysis +)r4or7)d on this +ara7)t)r @i,, a,,o@ 4or )(a7ination o4 ho@ th) d)cision 4actor 7ay a44)ct th) d)cision. In 7any cas)s, 7ana-)7)nt @i,, 4i( a va,u) o4 d, kno@n as th) hurd,) rat), 4or @hich th) +roC)ct 7ust a hav) a +ositiv) NP=.
A s)cond crit)rion that is o4t)n us)d is +ayback +)riod. 3h) +ayback +)riod is si7+,y th) )ar,i)st +)riod in @hich th) +roC)ctKs cost is r)cov)r)d. In usin- this crit)rion, it is
th
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assu7)d that th) +roC)ct @ith th) )ar,i)st +ayback +)riod is th) b)st. Ho@)v)r, this 7ay not b) r)asonab,) i4 a co7+)tin- +roC)ct has ,ar-) antici+at)d b)n)4its 4urth)r in th) 4utur). A third 7)thod 4or )va,uatin- +roC)cts is th) int)rna, rat) o4 r)turn, IRR, i.), th) annua, rat) at @hich th) +roC)ct is )sti7at)d to +ay o44. 3h) quantity IRR is 4ound by so,vin- th) 4o,,o@in- )quation
I4 usin- IRR to co7+ar) +roC)ct a,t)rnativ)s, on) choos)s th) +roC)ct @ith th) ,ar-)st va,u) 4or IRR. As 7)ntion)d +r)vious,y <BA has b))n critici8)d on a nu7b)r o4 4ronts. ?))n 0!"%12 @as th) 4irst to not) that th) 7any o4 th) costs and b)n)4its o4 in4or7ation syst)7s ar) cha,,)n-in- to 7)asur). 3his cha,,)n-) is h)i-ht)n)d as th) us) o4 in4or7ation syst)7s 7ov)s 4ro7 transactiona, to@ards strat)-ic. ?))ny and Rai44a 0!"%12 and oth)rs hav) critici8)d <BA on th) basis that it do)s not inc,ud) a 7)thod o4 co+in- @ith th) unc)rtainty that is usua,,y +r)s)nt in in4or7ation syst)7s +roC)cts, ).-., 7any I3 +roC)cts 7ay b) subC)ct to us)r acc)+tanc) unc)rtainti)s. 3h)s) criticis7s 7ak) <BA cha,,)n-in- to uti,i8), ho@)v)r oth)r authors hav) ar-u)d that this not )vid)nc) that <BA shou,d b) abandon)d. ?a+,an 0!"&'2 ar-u)s that on) shou,d choos) a co7+arator, ,ik) 7iss)d strat)-ic o++ortunity or d)c,inin- cash 4,o@s, to co7+ar) in4or7ation syst)7s +roC)cts. Dos Santos 0!""!2 ar-u)s that sinc) I3 inv)st7)nts ar) 7ad) ov)r ti7), so7) d)cisions can b) 4or)-on) unti, 7or) in4or7ation about +roC)ct succ)ss b)co7)s avai,ab,). In )ith)r cas), a +roC)ct 7ay th)n a++)ar to b) 7or) va,uab,) than it oth)r@is) @ou,d hav) b))n had th)s) 4actors not b))n account)d 4or. Practica,,y s+)akin-, @h)n 4inancia, ana,ysis is ca,,)d 4or, <BA is o4t)n uti,i8)d to ana,y8) I3 inv)st7)nt. >sin- <BA, Bo)h7 0!""#2 4ound that th) inv)st7)nt in so4t@ar) t)chno,o-y at th) D)+art7)nt o4 D)4)ns) +aid back T1 4or )v)ry T! inv)st)d. 3h) *,o7ark *rou+ 0!""'2, @ith ov)r #$$ c,i)nt co7+ani)s, us)s an R:I a++roach to ass)ss th) va,u) o4 I3 inv)st7)nts. Sti,,, th) issu) o4 quanti4iabi,ity s))7s to +rovid) th) 7aCor )(cus) 4or 7any or-ani8ations not to us) <BA at a,,. Ho-u) and Fatson 0!"&#2 4ound that in th) cas) o4 DSS syst)7s that a -r)at 7aCority 0&#U2 o4 th) or-ani8ations inv)sti-at)d did not both)r to )v)n try and quanti4y th) b)n)4its )ith)r in an )( +ost or )( ant) s)ttin-. Aarb)y, Land, and 3ar-)tt 0!""/2 4ound that on,y G o4 !' 4ir7s surv)y)d us)d any kind o4 quantitativ) ana,ysis in )sti7atin- th) va,u) o4 I3 +roC)cts. Bacon 0!""/2 4ound that a++ro(i7at),y 1/U o4 co7+ani)s us)d <BA a++roach)s, but it @as on,y a++,i)d to 1'U o4 th) +roC)cts @ithin thos) or-ani8ations. Sasson) and Scha44)r 0!"%&2 )(+,icit,y ad7it that costs and b)n)4its o4 I3 +roC)cts ,i) a,on- a Rs+)ctru7 o4 quanti4iabi,ityS @hich 7ak)s th) us) o4 this +roc)dur) cha,,)n-in-. Har)s and Roy,) 0!""G2 a-r)) and ar-u) 4or th) us) o4 a broad)r 7)thodo,o-y, Rinv)st7)nt a++raisa,,S @hich )(t)nds <BA to inc,ud) discountin-, th) )44)cts o4 ov)r +roC)cts, +roC)ct risk and 4,)(ibi,ity and th) inc,usion o4 intan-ib,) ass)ts. In th) n)(t s)ction, @) d)4in) and discuss c,ass)s o4 intan-ib,) ass)ts that or-ani8ations 7ay @ant to inc,ud) in th)ir <BA activiti)s.
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INTANGI*LES AND TECHNOLOGY EVALUATION

3h) n)@ Int)rnationa, Accountin- Standard 0IAS2 #& d)4in)s an intan-ib,) as an id)nti4iab,) non7on)tary ass)t @ithout +hysica, substanc) h),d 4or us) in th) +roduction or su++,y o4 -oods or s)rvic)s, 4or r)nta, to oth)rs, or 4or ad7inistrativ) +ur+os)s. In 7any ar)as, inv)st7)nt r)su,ts in )cono7ica,,y va,uab,), ,)-a,,y r)co-ni8)d intan-ib,) ass)ts, inc,udin- co+yri-hts 0Titanic and Findo@s/$$$2, +at)nts 0=ia-ra2, chan-)s in +roc)ss)s 4or 7akin- )(istin- -oods, and oth)r ass)ts such as brand na7)s and trad)7arks. I4 co7+ani)s 4ai, to inc,ud) intan-ib,) ass)ts or th)ir 7ark)t+,ac) r)su,ts, th)n cor+orat) +ro4its ar) vast,y und)rstat)d 0+ric)I )arnin-s ratios ar) ov)rstat)d2, @hich in turn i7+acts nationa, inco7), savin-s, and X#Y inv)st7)nt. Intan-ib,)s can r)su,t in any co7bination o4 0!2 a hi-h)r +ric) 4or a +r)7iu7 +roduct or s)rvic), 0/2 7or) sa,)s 4ro7 )(istin- +roduct or s)rvic), 0#2 cost savin-s 4ro7 an )(istin- or n)@ +roduct or s)rvic), and 0G2 n)@ busin)ssIn)@ sa,)s 4ro7 a n)@ +roductIs)rvic) 0Har)s ; Roy,), !""G2.
Not )v)ry busin)ss -oa, or b)n)4it 4ro7 a +roC)ct can b) quantitativ),y 7)asur)d. A r)c)nt 6rnst ; Qoun- 0!"""2 study 4ound that in4or7ation not quanti4i)d on a co7+anyKs ba,anc) sh))t is incr)asin-,y b)co7in- an i7+ortant crit)rion 4or +ot)ntia,
inv)stors. Non4inancia , crit)ria, su ch as qua,ity and cr)dibi ,ity o4 7ana-)7)nt, 7ark)t
und)rstatin- cor+orat) va,u) and
Q L on inv)st7)nt @hich do not consid)r intan-ib,)s Aar)
shar), qua,ity o4 inv)stor r),ations, and custo7)r satis4action, account)d 4or #1U o4 th) inv)storKs d)cision. Davido@ 0!""'2 indicat)s that in th) in4or7ation a-) 4our54i4ths o4 a 4ir7Ks ass)ts ar) intan-ib,) and that doub,)5 )ntry bookk))+in- and 7)asur)s o4 r)turn +ro4itabi,ity. L)v 0!""%2 a,so indicat)s that conv)ntiona, accountin- +)r4or7s +oor,y @ith int)rna,,y -)n)rat)d intan-ib,)s, ).-., R;D, brand na7)s, and ta,)nt, @hich ar) consid)r)d th) )n-in)s o4 7od)rn )cono7ic -ro@th. Har)s and Roy,) 0!""G2 su--)st that non) o4 th) 7)thods 4or <BA ar) ab,) to sho@ ho@ to 7)asur) and va,u) th) intan-ib,) b)n)4its in 4inancia, t)r7s.
6
distinction b)t@))n -oods and
s)rvic)s. As 4ar back as Ada7 S7it h, -ood s @)r)
Historica,,y, th) di44)r)nt tr)at7)nt o4 tan-ib,)s and intan-ib,)s can b) trac)d to th)
7at)ria, and cou,d b) stor)d @hi,) s)rvic)s @)r) i77at)ria, and transitory. 3his transitory natur) 7)ant s)rvic)s cou,d not b) count)d as ass)ts, but -oods cou,d.
Lo-ica,,y, th)n, thin-s count)d as inv)st7)nt 7ust b) tan-ib,). 3his ,)d to a d)4inition o4 @)a,th as R7at)ria, obC)cts o@n)d by hu7an b)in-s.S 3h)r)4or), @hat is 7at)ria, is tan-ib,) and can constitut) @)a,th, @hich und)r,i)s th) nationa, inco7) accountinconv)ntions us)d to d)t)r7in) ass)t va,u), +ro4it, savin-, and inv)st7)nt. 3his ,o-ic 4ai,s to consid)r that 7or) inv)st7)nts in todayKs )cono7y ar) intan-ib,), and th)s) inv)st7)nts yi),d hi-h)r +ro4its, @hich )qua, -r)at)r out+ut and savin-s. :n) )sti7at) su--)sts that an adCust7)nt 4or R;D a,on) @ou,d rais) >S *DP rou-h,y !.1U. 6(t)ndin- this ar-u7)nt to +roC)ct )va,uation, th) +ayback +)riod @ou,d b) r)duc)d, and th) r)turn to th) busin)ss @ou,d b)co7) +ro+ortiona,,y -r)at)r. Anni) Brookin- su--)sts that I3 cannot b) 7)asur)d in iso,ation. In h)r book, Intellectual Capital, sh) indicat)s that th)r) is a shi4t in th) 7ak)u+ o4 th) n)t va,u) o4 a co7+any. In !"%%, !U o4 th) n)t va,u) o4 a >? co7+any @as bas)d on intan-ib,) ass)ts. In !"&' th) 7ak) u+ shi4t)d to GGU and it is -ro@in- ra+id,y. Sh) d)co7+os)s intan-ib,)s into 4our ar)as 7ark)t ass)ts, it)7s @hich yi),d 7ark)t +o@)r, ).-. brand na7)sN int),,)ctua, +ro+)rtyBco+yri-htsN hu7an5c)nt)r)d ass)ts ,ik) kno@,)d-)N and in4rastructur) ass)ts. I3 4a,,s into th) ,ast cat)-ory. It is not th) va,u) o4 co7+ut)rs and so4t@ar) in th) busin)ss, but th)ir i7+act on th) busin)ssK +)r4or7anc). Brookin)(a7in)s Barc,ays bank, @hos) co7+ut)r and so4t@ar) ass)ts )qua, a++ro(i7at),y
-221TEAM FLY
V!$$7i,,ion. I4 thos) ass)ts sudd)n,y disa++)ar)d, th) bank @ou,d not o+)n, so c,)ar,y th) va,u) o4 th) ass)ts is 7uch -r)at)r than th) cost o4 th) ass)ts th)7s),v)s. 3h) di44)r)nc) is th)ir intan-ib,) b)n)4it or @orth. 3h) kno@,)d-) and )(+)rtis) o4 an in4or7ation t)chno,o-y d)+art7)nt is an intan-ib,) ass)t in and o4 its),4, but so is th) @ay I3 a++,i)s that kno@,)d-) to 7ak) oth)r d)+art7)nts 4unction 7or) s7ooth,y 0Sch@art8, /$$$2. <o7+ut)r syst)7s ar) incr)asin-,y b)in- d)v),o+)d 4or @hat ar) at 4irst si-ht non5+ric) 4actors and h)nc) intan-ib,). Har)s and Roy,) 0!""G2 indicat) th)r) ar) t@o 7ain intan-ib,) b)n)4its in I3 inv)st7)nt. 3h) 4irst is int)rna, i7+rov)7)nt or in4rastructur) inv)st7)nt and th) s)cond is r),at)d to custo7)rs. 3h) ,att)r, custo7)r5vi)@)d intan-ib,) b)n)4its ar) ov)r@h),7in-,y thos) that th) custo7)r s))s no@ and @ants in th) 4utur)B+articu,ar,y r),at)d to custo7)r s)rvic) and us)r satis4action 0S)) Ai-ur) !2. 3h)s) qua,iti)s +oss)ss an intrinsic va,u) +ot)ntia,,y -r)at)r than th) i77)diat) and ca,cu,ab,) 4inancia, r)turns. 3h)y cat)-ori8) intan-ib,) b)n)4its as on-oin- and 4utur)5 ori)nt)d.
+igure ;: Fhat ar) intan-ib,)sZ

3h) on-oin- intan-ib,) b)n)4its ar) thos) conc)rn)d @ith int)rna, i7+rov)7)nt o4 co7+any o+)rations or out+ut +)r4or7anc). 3h)s) ar) +)rha+s th) 7ost tan-ib,) o4 intan-ib,) b)n)4its and can inc,ud) !2 chan-)s in +roduction +roc)ss)s, /2 7)thods o4 7ana-)7)nt o+)rations, and #2 chan-)s to +roduction va,u) and +roc)ss chains @ith r)su,tin- b)n)4its as incr)as)d out+ut or ,o@)r +roduction costs. 3h) s)cond -rou+ o4 intan-ib,) b)n)4its is 7or) di44icu,t to 7)asur), @ith th)ir )44)ctiv)n)ss b)in- d)cid)d by )(t)rna, 4orc)s. 3his -rou+in- invo,v)s s)rvic)s to custo7)rs that incr)as) th) uti,ity
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0va,u) add)d2 o4 +roducts or s)rvic)s. 3h) b)n)4its ar) conv)rt)d into r)tain)d sa,)sIcusto7)rs , incr)as)d sa,)s, custo7)r satis4action, and incr)as)d +ric)s and inc,ud) !2 qua,ity o4 +roduct or s)rvic) as a 7ark)t di44)r)ntiator, /2 i7+rov)d d),iv)ry o4 a +roduct or s)rvic), and #2 i7+rov)d s)rvic) +rovid)d @ith +roducts and s)rvic)s.
7)thod +rovid)s th) o++ortunity to cut +ric)s and -ain 7ark)t do7inanc) as @as th) cas) @ith D),, <o7+ut)rs. 3h) 4ina, -rou+ o4 intan-ib,) b)n)4its is th) abi,ity to ada+t to chan-). As @ith th) id)nti4ication o4 7ark)t tr)nds th) b)n)4its d)riv)d inc,ud) ada+tin- +roducts and s)rvic)s to 7ark)t tr)nds and th) 7odi4ication o4 +roduction +roc)ss)s. 3his abi,ity is critica, 4or 4ir7s in ra+id,y chan-inindustri)s and can +ot)ntia,,y b) conv)rt)d into incr)as)d sa,)s and hi-h)r 7ar-ins. I3 +roC)cts d),iv)r intan-ib,) b)n)4its that cannot b) quanti4i)d usin- 7ath)7atica, )quations ,ik) NP=, such as b)tt)r in4or7ation acc)ss, i7+rov)d @ork 4,o@, and incr)as)d custo7)r satis4action 067i-h, !"""2, @hich ar) ,ist)d a7on- th) k)y attribut)s o4 6RP syst)7s. :n) k)y 4unction o4 IS d)+art7)nts has b))n th) su++ort o4 hi-h5qua,ity d)cision 7akin-. 3his has b))n di44icu,t to quanti4y, )s+)cia,,y at th) hi-h)r ,)v),s o4 th) or-ani8ation @h)r) r)su,ts ar) d)4)rr)d. In th) IS ,it)ratur), Davis 0!"%'2, 67)ry 0!"%!2, and ?))n and Scott5Mor-an 0!"%&2 +oint out th) i7+ortanc) o4 intan-ib,) b)n)4its. Lit)cky 0!"&!2 indicat)s that d)s+it) th) +)rc)iv)d i7+ortanc) o4 intan-ib,)s, th)r) has b))n ,itt,) i4 any -uidanc) in th) quanti4ication o4 d)riv)d b)n)4its. H) +ro+os)s s)v)ra, assu7+tions as a +r)condition to quanti4yin- b)n)4its. Airst, tan-ib,) costs and b)n)4its ar) r),ativ),y )asy to )sti7at) @h)r)as intan-ib,) b)n)4its ar) quit) di44icu,t to )sti7at). S)cond, tan-ib,) costs ar) ordinari,y 7uch -r)at)r than tan-ib,) b)n)4its, and intan-ib,) costs ar) insi-ni4icant. Park)r and B)nson 0!"&&2 )(+,ain that in ord)r 4or )nt)r+ris)s to -ain co7+)titiv) advanta-), th) @ay I3 is 4inancia,,y Custi4i)d 7ust
3h) n)(t t@o -rou+s o4 intan-ib,)s r),at) to 4utur) b)n)4its and inc,ud) th) abi,ity to id)nti4y n)@ busin)ss o++ortuniti)s, ,)adin- to co7+)titiv) advanta-). 3h) 4irst o4 th)s) b)n)4its )7bodi)s s+ottin- 7ark)t tr)nds. I4 n)@ tr)nds can b) asc)rtain)d th)n a busin)ss is ab,) to conv)rt +roducts or s)rvic)s to -ain n)@ sa,)s and 7ark)t +osition. Anoth)r )(a7+,) o4 this intan-ib,) b)n)4it is th) d)v),o+7)nt o4 +roc)ss)s throu-h @hich to conduct busin)ss o+)rations. 3his
chan-). <ost varyin- 7)asur)s o4 I3 b)n)4it ana,ysis is ass)ss7)nt inc,udinnot ad)quat) 4or +roductivity 0incr)as)s o42, us)r )va,uation o4 I3 uti,ity, i7+act on va,u) chain, a++,ications, busin)ss a,i-n7)nt 0Fi,son, )(c)+t @h)n !"&&2, syst)7 qua,ity, d)a,in- @ith cost5 in4or7ation qua,ity, us), and avoidanc) issu)s. us)r satis4action 0D)Lon) ; I4 <BA is to b) McL)an, !""/2. Acca7+o )(+and)d, 0!"&"2 cont)nds that <BA can additiona, b) hard to a++,y to activiti)s 7)asur)s such as @h)r) in4or7ation is th) k)y th) +)rc)iv)d co77odity. *iv)n that 7any o4 va,u) to th) th) 7)asur)s 4ound in th) IS busin)ss, ,it)ratur) and ,ist)d abov) to incr)as)d )va,uat) syst)7 succ)ss ar) custo7)r intan-ib,), traditiona, 7)thods satis4action, or o4 +roC)ct )va,uation 4a,, short. th) uti,ity o4 I3 in 3his +rob,)7 b)co7)s )v)n su++ortin7or) di44icu,t @h)n ana,ysis d)cision57akin- )nco7+ass)s chan-)s to 7ust b) busin)ss +roc)ss)s and consid)r)d 0?at8, in4or7ation 4,o@s @hich i7+act !""#2. <,ark +roductivity and d)cision 0!""/2 4ound su++ort. ,itt,) -uidanc) on A surv)y conduct)d by 6rnst I3Ks contribution ; Qoun- 0!"&&2 4ound that to cor+orat) '$U o4 a,, >? co7+ani)s +ro4its in th) conc)rn)d @ith th) ,it)ratur) but 7anu4acturin- o4 auto7obi,) 4ound r),iabi,ity o4 co7+on)nts 7ad) no s)rvic), t)chnica, att)7+t to quanti4y th) +)r4or7anc), and intan-ib,) b)n)4its -ain)d busin)ss +,an 4ro7 th) us) o4 <ADI<AM su++ort, a,, it)7s syst)7s, that on,y /$U di44icu,t to quanti4i)d th) b)n)4its in accurat),y +hysica, t)r7s, and on,y quanti4y. :th)r /$U quanti4i)d th) studi)s 4ound intan-ib,)
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b)n)4its in 7on)tary t)r7s. 3o acco7+,ish th) task o4 incor+oratin- th) intan-ib,) b)n)4its into th) 4inancia, ana,ysis on) 7ust cr)at) 7u,ti5 attribut) Custi4ication t)chniqu)s @hich +)r7it th) inc,usion o4 both 7on)tary and non7on)tary 4actors in th) ana,ysis 0Badiru, !""$2. 3his 7)thod can ,)ad to a sin-,) 4inancia, 7od), but r)quir)s a t)chniqu) that brid-)s th) -a+ b)t@))n th) intan-ib,) and tan-ib,) 4actors. I,,ustrat)d in Ai-ur) /, this quanti4ication t)chniqu) 0Har)s ; Roy,), !""G2 a++,i)s a s)t o4 st)+s to )(+r)ss intan-ib,)s in 7on)tary t)r7s. 3h) st)+s inc,ud) !2 id)nti4y b)n)4its, /2 7ak) th) b)n)4its 7)asurab,), #2 +r)dict th) r)su,ts in +hysica, t)r7s, and G2 )va,uat) th) cash 4,o@. As @i,, b) )(+,ain)d, this t)chniqu) striv)s to conv)rt th) intan-ib,) b)n)4it into cash 4,o@ that can b) incor+orat)d into <BA.
+igure 9: 3h) quanti4ication t)chniqu) Rbrid-inth) -a+S 3h) 4irst st)+ o4 quanti4ication is th) identification o4 th) intan-ib,) b)n)4its. 3@o us)4u, sourc)s o4 in4or7ation to assist id)nti4ication inc,ud) !2 critica, succ)ss 4actors 0<SAs2 and /2 a ch)ck,ist o4 intan-ib,)s. Many <SAs inc,ud) quanti4iab,) it)7s. Aor instanc), i7+rov)d custo7)r s)rvic), a <SA, cou,d b) 7)asur)d by a stat)d r)duction in th) nu7b)r o4 custo7)r co7+,aints. A ch)ck,ist o4 intan-ib,)s is -)n)ra,,y )asi)r to cr)at) but +)rha+s hard)r to quanti4y. 3h) IS ,it)ratur) su--)sts a nu7b)r o4 4actors 4or )va,uatin- syst)7 succ)ss inc,udin- custo7)r satis4action, +roductIs)rvic) qua,ity and r),iabi,ity, s+))d o4 s)rvic), i7+rov)d s)rvic), and r)duction o4 )rrors. A,, o4 th)s) intan-ib,)s can b) conv)rt)d into 7on)tary t)r7s throu-h th) abi,ity to !2 7aintain and incr)as) sa,)s, /2 incr)as) +ric)s, #2 r)duc) costs, and G2 cr)at) n)@ busin)ss. 3h) s)cond st)+ is to 7ak) th) intan-ib,) b)n)4its measura)le. 3his consists o4 r))(+r)ssinth) b)n)4its d)scrib)d abov) in 7or) 7)asurab,) t)r7s. 3h) third st)+ is to predict the )enefit in physical terms. 3his is -)n)ra,,y th) 7ost di44icu,t o4 th) quanti4ication st)+s, @ith 7u,ti+,) 7)thods to conv)rt 7)asur)s into actua, nu7b)rs. 3h) 4irst 7)thod is th) 7ark)t surv)y. Mark)t surv)ys ar) 7ost attractiv) b)caus) !2 th) +)rc)+tions o4 th) co7+any and custo7)r can b) a,i-n)d and an a-r))7)nt o4 7on)tary )quiva,)nc) can b) a-r))d u+on and /2 surv)ys can inc,ud) a 4or@ard5,ookinco7+on)nt @hich cou,d ,)ad to +roactiv) actions @hich +ot)ntia,,y incr)as) th) va,u) o4
th) +roC)ct. 3h) s)cond 7)thod is 7ana-)7)nt )sti7at)s, @hich is usua,,y us)d @h)n surv)ys ar) not +ossib,). S)nior 7ana-)7)nt, @hos) o+)rations ar) su++ort)d by th) +roC)ct but @ho ar) r)7ov)d 4ro7 +roC)ct r)s+onsibi,ity, -)n)rat)s th)s) )sti7at)s. 3h) +rob,)7 @ith 7ana-)7)nt )sti7at)s is that th)y ar) bas)d on +ast )vid)nc) and th)r)4or) r)activ). 3h) third 7)thod is co7+arativ) cas) study o4 a si7i,ar busin)ss. 3h) advanta-) o4 this 7)thod is that th) 4ir7 -ains 4ro7 th) ,)ssons ,)arn)d 4ro7 th) +ast )()rcis). 3h) disadvanta-) is that +ast +roC)cts ar) conduct)d in a di44)r)nt busin)ss )nviron7)nt, and th) 7)thod us)s back@ard5,ookin- 7)thodo,o-y. 3h) 4ina, st)+ in th) quanti4ication t)chniqu) is th) evaluation in cash flo- terms. 3his is a si7+,) 7ath)7atica, +roc)ss @ith th) vo,u7)s 4ro7 th) +r)vious st)+s r),at)d to th)
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7on)tary va,u) o4 th) b)n)4it. It is at this +oint that th) t)chniqu) can b) 7)r-)d @ith <BA.
X#Y
Aor instanc), 3itanic so,d T! bi,,ion in th)at)r tick)ts and =ia-ra sa,)s )(c))d)d T%$$ 7i,,ion in its 4irst 7onth.
THE *USINESS CASE FOR ERP AT CONSOLIDATED COMPUTER COMPANY

<onso,idat)d <o7+ut)r <o7+any 0<<<2 is a -,oba, so4t@ar) and hard@ar) 7anu4acturin-, distribution and consu,tin- or-ani8ation @ith a ,on- and v)ry succ)ss4u, history d),iv)rinand i7+,)7)ntin- a @id) ran-) o4 busin)ss so,utions. In th) )ar,y !""$s <<< 4ac)d v)ry si-ni4icant cha,,)n-)s that inc,ud)d hi-h o+)ratincosts, a b,oat)d @ork4orc) and 7any r)dundanci)s across th) -,ob) in 7anu4acturin-, r)s)arch, and d)si-n. 3o r)viv) its ,)-acy, <<< s)t 4orth a nu7b)r o4 strat)-ic i7+)rativ)s that inc,ud)d 4ir75@id) cost r)duction, r)duction o4 +roduct d)v),o+7)nt and d)+,oy7)nt cyc,), 7ark)tin- as a sin-,) -,oba, or-ani8ation and str)a7,inin- th) r),ationshi+ b)t@))n <<< and its custo7)rs. :n) +art o4 i7+,)7)ntinth) +,an 4or acco7+,ishin- th)s) obC)ctiv)s @as to +ut in +,ac) th) int)-rat)d su++,y chain in its +)rsona, co7+ut)r division 0P<D2 @hich @ou,d inc,ud) +rocur)7)nt, +roduction and 4u,4i,,7)nt.
In )(a7inin- th) costs o4 o+)ratin- th) co7+any, a7on- oth)r it)7s, <<<Ks cor+orat) 7ana-)7)nt 4ound that I3 )(+)nditur)s @)r) )(c)ssiv). Lik) 7any oth)r 7u,tinationa, or-ani8ations <<< had, ov)r th) y)ars, i7+,)7)nt)d and no@ o+)rat)d hundr)ds o4 nonint)-rat)d in4or7ation syst)7s to su++ort th)ir busin)ss throu-hout th) @or,d. Mana-)7)nt 4),t that r)duction o4 a nu7b)r o4 ,)-acy syst)7s cou,d b) achi)v)d throu-h th) us) o4 an int)-rat)d so4t@ar) so,ution, i.)., an 6RP syst)7. 3o acco7+,ish th)ir -oa, o4 r)ducin- costs and int)-ratin- th) su++,y chain, cor+orat) 7ana-)rs )stab,ish)d a r),ationshi+ @ith a 7aCor 6RP so,ution +rovid)r. Fhi,) cor+orat) 7ana-)7)nt 7ov)d ah)ad @ith th) n)@ initiativ)s, th) o+)ratin- +rob,)7s at P<D @)r) on,y -)ttin- @ors). In !""#, th) 7ana-)7)nt o4 P<D had authori8)d si-ni4icant )(+)nditur)s on n)@ +arts in antici+ation o4 stron- sa,)s. <usto7)r dissatis4action @ith +roduct stock outs had b))n on th) ris) 4or so7) ti7), and usin- strat)-ic +rocur)7)nt P<D 7ana-)7)nt ho+)d to +r)v)nt this 4ro7 r)occurrin-. Fh)n sa,)s o4 c)rtain 7od),s did not r)ach )(+)ctations, th) outdat)d +rocur)7)nt and inv)ntory syst)7s @)r) unab,) to sto+ th) 4,o@ o4 +arts 4ro7 v)ndors, incr)asin- inv)ntory ,)v),s shar+,y. Across th) -,ob) )ach +roduction 4aci,ity @as o+)ratin- its o@n a++,ications and syst)7s 4or su++ortin- su++,y chain +roc)ss)s, @hich 7ad) it i7+ossib,) to coordinat) +urchasin- and inv)ntory 7ana-)7)nt activiti)s. 3his crisis, @hich r)su,t)d in h)avy o+)ratin- and botto7 ,in) ,oss)s, 7ad) a 7assiv) r)structurin- o4 P<D division an i7+)rativ). Aor th) +)rsona, co7+ut)r division th) r))n-in))rin- @ou,d )ntai, r)7ovin- 7any r)dundant ),)7)nts and r)+,acin- 4ra-7)nt)d in4or7ation syst)7s @ith int)-rat)d so,utions.
At th) b)-innin- o4 !""%, 7ana-)rs in char-) o4 r))n-in))rinth) su++,y chain in P<D @)r) dir)ct)d to Custi4y th) ,ar-) )(+)nditur) that @ou,d b) r)quir)d to i7+,)7)nt th) 6RP syst)7. 3o cut costs in o+)rations P<DKs 7ana-)7)nt b),i)v)d that d)cr)asin- @ork in +ro-r)ss and incr)asin- inv)ntory turns in th) +roduction 4aci,ity @)r) n)c)ssary. :n) +art o4 achi)vin- th)s) -oa,s inc,ud)d th) i7+,)7)ntation o4 a Cust5in5ti7) +rocur)7)nt syst)7. I7+rov)7)nts to th) ord)r 4u,4i,,7)nt and custo7)r 7ana-)7)nt +roc)ss)s @ou,d a,so b) r)quir)d to i7+rov) d)c,inin- custo7)r
225-
at )ach sit). Productivity savin-s o4 b)t@))n 1 and /$U @)r) assu7)d 4or th) satis4action +roduction and ord)r indic)s. 4u,4i,,7)nt +roc)ss)s. 3h) n)@ Aurth)r7or), it @as c,)ar that th) syst)7 @ou,d a,so )nab,) a on)ti7) inv)ntory r)duction o4 ,ar-) nu7b)r !$U that @as assu7)d to in4or7ation syst)7s us)d in occur ! y)ar a4t)r o+)rations did not i7+,)7)ntation. <ost savin-s r)su,tin- 4ro7 th) r)duction in o44)r th) nu7b)r and co7+,)(ity o4 4unctiona,ity r)quir)d to attain syst)7s in o+)ration @)r) a,so inc,ud)d. MaCor ca+ita, th)s) -oa,s. 3o )(+)nditur)s @)r) assu7)d to Custi4y th) occur ov)r # y)ars, and th) substantia, inv)st7)nt, th) hi-h )nd o4 d)v),o+7)nt and <BA 7)thodo,o-y d)+,oy7)nt cost )sti7at)s @)r) us)d 4or )ach sit). 3h) @as uti,i8)d to bui,d th) busin)ss cost b)n)4it )sti7at)s r)su,tin4ro7 th) abov) assu7+tions cas) 4or i7+,)7)ntinth) ar) sho@n in th) 3ab,) !. 6RP so,ution. 3h) sco+) o4 th) Table ;: Cost /enefit P<D syst)7s &nal(sis 1Tangibles Onl(2 i7+,)7)ntation .PG1H 'illions2?<RR +roC)ct @as to <n!entor brinth) 6RP Pro"ucti!it( ( <T so,ution to thr)) Operatio 7aCor +roduction ns 4aci,iti)s across th) -,ob). In th)ir ana,ysis P<D !&.& G".! /#.G 7ana-)7)nt us)d NP=, IRR a Additiona, 4actors ar) and +ayback inc,ud)d in th)s) 4i-ur)s +)riod to ass)ss th) +roC)ctKs r)turn on INCLUDING inv)st7)nt. 3h) INTANGI*LES IN busin)ss cas) THE *USINESS CASE @as bui,t assu7in- a !$5 y)ar ti7) hori8on P<D 7ana-)7)nt uti,i8)d ca,cu,ations @ith s)v)ra, uti,i8)d a /$U intan-ib,) it)7s in bui,din- th) hurd,) rat). 3o busin)ss cas), inc,udinca,cu,at) custo7)r satis4action. In this b)n)4its, v)ry )(a7+,), on,y custo7)r cons)rvativ) r)v)nu) -ro@th satis4action @i,, b) us)d, and +ro4it 7ar-in si7+,i4yin- th) i,,ustration. <usto7)r satis4action @as assu7+tions @)r) 7ad) and s),)ct)d sinc) <<<Ks 7ana-)7)nt indicat)d that o4 no b)n)4it @as a,, th) intan-ib,) it)7s it had assu7)d to co77)nc) unti, th) -r)at)st +ot)ntia, i7+act ! y)ar 4o,,o@in- on +roC)ct )va,uation. th) i7+,)7)ntation Lon- b)4or) P<D )7bark)d on th)ir 6RP )va,uation +roC)ct
<'ple'entati o n Cost
Total T
<RRT
0%#.G2
/&.!
#"./$ U
th) co7+anyKs 7ana-)rs kn)@ th)r) @as a s)rious +rob,)7 @ith custo7)r satis4action. 3h)ir annua, surv)ys o4 custo7)rs and su++,i)rs indicat)d that ,)v),s o4 satis4action @)r) do@n /!U and !1U, r)s+)ctiv),y, @ith custo7)rs indicatinsi-ni4icant,y b)tt)r r),ations @ith P<DKs co7+)tition. R)a,i8in- that sa--insatis4action @ou,d soon trans,at) into s7a,,)r 7ark)t shar) and 4a,,in+ro4it 7ar-ins,
s)nior 7ana-)7)nt rank)d satis4action i7+rov)7)nt as a k)y -oa, durin- syst)7 )va,uation. >sin- a 7)thod v)ry si7i,ar to th) quanti4ication t)chniqu) o4 Har)s and Roy,) 0!""G2, th) +roC)ct 7ana-)rs id)nti4i)d i7+rov)d custo7)rIus)r satis4action as a k)y syst)7 d),iv)rab,).
Satis4action as a d),iv)rab,) @as critica, to custo7)rs and su++,i)rs and )(ist)d as a 7)tric @ithin P<D, @ith data co,,)ct)d on an annua, basis. 3o conv)rt satis4action 4ro7 an intan-ib,) to a 7)asurab,) 4actor, P<DKs IS d)+art7)nt co7+i,)d a ,ist o4 custo7)r5 r)+ort)d syst)7 d)4ici)nci)s 4ro7 th) ,ast satis4action surv)y. >+on co7+,)tion o4 th) d)4ici)nci)s ,ist, IS 7ana-)rs )(a7in)d )ach it)7Ks +)r4or7anc) in th) curr)nt syst)7
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and its )(+)ct)d r)su,t on th) +ro+os)d 6RP syst)7 0s)) Ai-ur) # 4or a sa7+,) o4 th) it)7s2. 3his +roc)dur) )stab,ish)d a bas),in) 4ro7 @hich th) 7ana-)rs cou,d +roC)ct th) ,)v), o4 satis4action i7+rov)7)nt onc) th) +ro+os)d syst)7 @as in +,ac). Aro7 th) +ro+os)d i7+rov)7)nts, 7ana-)rs throu-hout P<D, not Cust 7)7b)rs o4 th) +roC)ct t)a7 and IS d)+art7)nt, consu,t)d custo7)rs and +roC)ct)d that onc) d)+,oy)d th) +ro+os)d 6RP syst)7 cou,d i7+rov) custo7)r satis4action by 1U initia,,y and a++ro(i7at),y /U +)r y)ar th)r)a4t)r 0assu7in- syst)7 +)r4or7anc) )(+)ctations @)r) 7)t2.
+igure =: Sa7+,) it)7s 4or custo7)r satis4action surv)y 3h) n)(t 7aCor task in this ana,ysis @as to +r)dict th) )cono7ic va,u) o4 an incr)as) in custo7)r satis4action to <<<. 3his st)+ @as a,so acco7+,ish)d throu-h 7ana-)7)nt int)rvi)@s and surv)ys @ith <<<Ks k)y custo7)rs and su++,i)rs.
3h) 7ana-)rs und)rtakin- this +roC)ct @)r) thos) 7ost 4a7i,iar @ith custo7)rs, +articu,ar,y thos) in th) sa,)s and 7ark)tin- or-ani8ations. 3h) r)su,ts o4 s)v)ra, hundr)d int)rvi)@s su--)st)d that 4or )ach 1U i7+rov)7)nt in custo7)r satis4action, <<< cou,d )(+)ct a !U -ain in 7ark)t shar). 3h) r)su,ts, @hi,) nonsci)nti4ic, indicat)d that 7ark)t shar) incr)as)s @ou,d r)su,t in si-ni4icant b)n)4its 4or th) co7+any. 3h) 4ina, st)+ o4 this +roc)ss @as to )va,uat) th) +ot)ntia, cash 4,o@ r)su,tin- 4ro7 7ark)t shar) -ains. Bas)d on th) cash 4,o@ r)su,tin- 4ro7 th) custo7)r 7ark)t shar) i7+rov)7)nts th) <BA @as r)don) and th) r)su,ts a++)ar in 3ab,) / b),o@.
Table 9: Cost /enefit &nal(sis 1Tangibles an" <ntangibles2 .PG1H 'illions2? <RR <n!ento r( <'ple'entati on Cost Tota lT
Pro"ucti!it(
<T Operati o ns
Cser 4atisfact i on
<RRT
!&.&
G".!
/#.G
//&.%
0%#.G2
//&. "
!/G.$$U
a Additiona, 4actors ar) inc,ud)d in th)s) 4i-ur)s
DISCUSSION AND CONCLUSION

In th) 4ac) o4 si-ni4icant thr)ats to 7ark)t shar) and shar)ho,d)r va,u), th) <onso,idat)d <o7+ut)r <o7+any 0<<<2 )7bark)d on a 7aCor or-ani8ationa, r)structurin-. As +art o4 that )44ort, th) +)rsona, co7+ut)r division 0P<D2 @as ask)d to Custi4y in )cono7ic t)r7s a ,ar-) inv)st7)nt in an 6RP so,ution. In th) 4irst cost b)n)4it ana,ysis 03ab,) !2, P<D 7ana-)7)nt us)d )sti7at)s o4 +roductivity savin-s, inv)ntory savin-s and savin-s r)su,tin- 4ro7 7or) )44)ctiv) in4or7ation syst)7s o+)rations to ca,cu,at) th) n)t +r)s)nt va,u) 0NP=2 and int)rna, rat) o4 r)turn 0IRR2 4or th) +roC)ct. 3h) NP=s o4 +roductivity i7+rov)7)nts and inv)ntory r)ductions r)su,tin- 4ro7 n)@
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7ark)t shar). 3his vi)@ had b))n Custi4i)d by data -ath)r)d throu-h custo7)r int)rvi)@s. syst)7 i7+,)7)ntation 3h) NP= r)su,tin- 4ro7 @)r) )sti7at)d at incr)asin- th) custo7)r T!&.& 7i,,ion and satis4action @as )sti7at)d to b) T//&.% 7i,,ion. 3his r)su,t)d TG".! 7i,,ion, r)s+)ctiv),y, ov)r in th) n)@ tota, NP= o4 th) th) !$5y)ar ti7) +roC)ct @h)n custo7)r hori8on. 3h) NP= satis4action @as inc,ud)d in th) 4or I3 o+)rations +roC)ct to b) va,u)d at T//&." cost savin-s @as 7i,,ion @ith an IRR @as !/GU. )sti7at)d to b) >+on inc,udin- th) intan-ib,) o4 T/#.G 7i,,ion. 3h) custo7)r satis4action th) 6RP tota, NP= 4or th) i7+,)7)ntation +roC)ct @as si-ni4icant,y 7or) b)n)4icia, to +roC)ct @as i7+rovin- or-ani8ation botto7 )sti7at)d to T/&.! 7i,,ion and ,in). a,, NP= <<<Ks 7ana-)rs r)+ort)d that ca,cu,ations assu7)d a /$U at th) inc)+tion o4 )va,uation, hurd,) rat). 3ab,) th) co7+anyKs s)nior ! sho@s that th) 7ana-)7)nt sou-ht an )cono7ic ana,ysis ori)nt)d int)rna, rat) o4 to@ards i77)diat) botto75,in) r)turn 4or this r)turns. 3h) )va,uation t)a7 +roC)ct @as )sti7at)d to b) r)+ort)d so7) o4 th)ir conc)rns that +ot)ntia,,y cou,d #"./U. >sinth)s) )sti7at)s sk)@ short5t)r7 ori)nt)d ana,ysis. 3h)ir conc)rns th) 6RP i7+,)7)ntation inc,ud)d !2 ,on+roC)ct a++)ars i7+,)7)ntation ,)ad ti7)sN /2 ,ar-) initia, inv)st7)nts 4or to 7))t th) hard@ar) and so4t@ar)N #2 hurd,)5rat) incr)asin- 4r)qu)ncy o4 crit)ria s)t by chan-)s in t)chno,o-yN and G2 <<< shorta-)s o4 ski,,)d t)chnica,,y 7ana-)7)nt. kno@,)d-)ab,) +)rsonn), and In a subs)qu)nt kno@,)d-) @ork)rs. 3h) <BA 7any o4 th) )va,uation t)a7 a,so rais)d a nu7b)r o4 issu)s that sa7) cost and in4,u)nc)d d)cisions that @)r) b)n)4it 4i-ur)s b)yond th) ran-) o4 @)r) uti,i8)d, quanti4ication but i7+act)d th) ho@)v)r, th) intan-ib,) it)7 o4 +roC)ctKs acc)+tanc). A sa7+,) o4 th)s) issu)s inc,ud) !2 IS custo7)r satis4action @as d)+art7)nts ,i7it)d contro, o4 a,so inc,ud)d. 3h) t)chno,o-y bud-)ts, /2 assu7+tion 7ad) dyna7ic and co7+,)( t)chno,o-y cyc,), #2 by P<D 7ana-)7)nt @as socio)cono7ic and socio5 t)chnica, 4actors, and G2 that i7+,)7)ntinth) or-ani8ation +o,itics. As a r)su,t o4 th) succ)ss4u, 6RP syst)7 )va,uation and a@ar)n)ss o4 @ou,d hav) a th) r),at)d issu)s ,ist)d abov), si-ni4icant and <<<Ks s)nior 7ana-)rs @)r) +ositiv) i7+act b)tt)r +r)+ar)d to )va,uat) th) on custo7)r satis4action and +roC)ct, ab,) to r)or-ani8) or-ani8ationa, +rioriti)s, and h)nc) i7+rov) vi)@ th) syst)7Ks contribution
ho,istica,,y. r)+,ac)7)nt o4 ,)-acy 3h)r)4or), th) hard@ar) and so4t@ar), @as d)cision to conduct)d on ti7) and on i7+,)7)nt th) bud-)t. Durin- its 4irst y)ar o4 6RP syst)7 @as o+)ration th) 6RP syst)7 not bas)d contribut)d ov)r T//1 7i,,ion co7+,)t),y on in savin-s and +roductivity nu7)rica, i7+rov)7)nts. 3h) r)su,ts o4 )va,uation o4 th) <BA and intan-ib,) tan-ib,)s and ana,ysis @)r) convincinquanti4i)d 4actors that ,)d <<< to th) intan-ib,)s, but d)cision to i7+,)7)nt th) on 7or) syst)7. Fithout th) nu7)rica, substantia, issu)s r)su,ts s)nior 7ana-)7)nt such as 7ark)t @ou,d not hav) a-r))d to +osition, -ro@th 7ov) th) +roC)ct 4or@ard +ot)ntia,, b)n)4its r)-ard,)ss o4 antici+at)d to custo7)rs, b)n)4its. 6v)n @ith th) +roduct ana,ysis o4 tan-ib,) 4actors and )44)ctiv)n)ss, and th) quanti4ication o4 o4 cours), intan-ib,)s, a,, b)n)4its o4 a +ro4itabi,ity. ,ar-) sca,) IS +roC)ct ar) not inc,ud)d in th) ov)ra,, As a r)su,t o4 th) )quation. )va,uation and 3h) 4irst and 7ost i7+ortant ana,ysis, <<<Ks crit)ria @h)n und)rtakin- IS IS d)+art7)nt +roC)ct )va,uation is @h)th)r th) @as -iv)n th) a++rova, to syst)7 contribut)s to th) i7+,)7)nt th) strat)-ic obC)ctiv)s o4 th) )nt)r+ris) or-ani8ation. 3his initia, crit)ria r)sourc) is 7or) co7+,)( than Rdo)s th) +,annin- 06RP2 syst)7 h),+ th) or-ani8ation +acka-). 3h) achi)v) its -oa,S or 7ak) th) i7+,)7)ntation or-ani8ation b)tt)r at @hat it o4 th) n)@ do)s. :n) b)n)4it o4t)n cit)d syst)7, inc,udin- u+on insta,,ation o4 an
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a standard 4or7at, ,ocat)d in a sin-,) databas), i7+rov)s th) 6RP syst)7 is th) qua,ity o4 th) in4or7ation in i7+rov)7)nt in turn ,)adin- to b)tt)r d)cisions. in4or7ation Mov)7)nt to )nt)r+ris) qua,ity, acc)ss, int)-ration and +roc)ss and us). ori)ntation @as a,so cit)d as a B)nch7arkinPartn)rs 0!"""2, k)y strat)-ic b)n)4it. 3his b)n)4it is 7ani4)st in th) a r)s)arch and br)akin- do@n o4 or-ani8ation t)chno,o-y barri)rs, +r)vious,y advisory 4ir7, r)+ort)d &&U o4 r)+r)s)nt)d in d)+art7)nta, structur)s, and r)+,acin- th)7 r)s+ond)nts in th) bankin- and @ith int)-rat)d o+ti7i8)d 4inanc) industri)s +roc)ss)s. Standardi8ation o4 cit)d in4or7ation an or-ani8ationKs t)chno,o-y +,at4or7 is anoth)r b)n)4it qua,ity and acc)ssibi,ity as a ar)a. Si7i,ar to th) situation 4or busin)ss +roc)ss)s, 7any k)y b)n)4it o4 or-ani8ations hav) 4ound th)ir i7+,)7)ntation. th)7s),v)s @ith @id),y dis+arat) I3 +,at4or7s, Janus <a+ita, syst)7s, and data standards Mana-)7)nt 4ound that th)ir throu-hout th)ir or-ani8ations. As a 7att)r o4 4inanc) -rou+ 4act, th) Q/? +rob,)7 s+)nt '1U o4 +ro7+t)d 7any or-ani8ations th)ir ti7) to r)+,ac) o,d ,)-acy syst)7s. trackin- do@n Fhi,) th)r) is no -uarant)) data so that ana,ysis cou,d b) that r)+,acin- ,)-acy syst)7s conduct)d. 3h)ir is ch)a+)r in th) ,on- run i7+,)7)ntation 0th)r) is actua,,y so7) d)bat) cut stora-) costs, r)-ardin- tota, cost o4 o@n)rshi+ @ith 6RP syst)7s2, i7+rov)d in 7any situations n)@ )44ici)ncy, and d)cr)as)d ti7) to syst)7s ar) )asi)r and ch)a+)r to 7aintain than th)ir +rovid) c,i)nts @ith in4or7ation. +r)d)c)ssors. In addition to Most o4 th) b)n)4its discuss)d acc)ssibi,ity o4 abov) can b) -rou+)d und)r in4or7ation, th) cat)-ory o4 k))+inth) qua,ity and standardi8ation o4 or-ani8ation co7+)titiv). So7) in4or7ation rank o4 th) costs and b)n)4its, ).-., hi-h on th) ,ist o4 syst)7 o+)rations and strat)-ic b)n)4its. 7aint)nanc), ar) )asi,y 7)asur)d. :th)rs, such as Most 6RP syst)7s r)+,ac) a b)tt)r acc)ss to in4or7ation, nu7b)r o4 ,)-acy in4or7ation qua,ity, and i7+rov)d d)cision 7akin- ar) syst)7s, )ach hard)r, i4 not i7+ossib,), to @ith th)ir o@n quanti4y. 3h) 7ana-)rs at <<< databas)s and data 4or7ats. 3h) 7ad) a conscious d)cision to 7)asur) so7) 4actors and o7it abi,ity 4or oth)rs du) to ti7) and 4isca, 7ana-)7)nt constraints. 3h)y a,so 7ad) a,, throu-hout th) th)ir assu7+tions bas)d on th) or-ani8ation to und)rstand data @orst cas) sc)nario. A,, @hi,) havin- it in )sti7at)s and nu7)rica, Custi4ication @)r) 7ad) usin-
th) 7ost cons)rvativ) )sti7at)s. 3his a,,o@)d th)7 to r)+ort con4id)nt,y to s)nior 7ana-)7)nt kno@inth)ir r)su,ts r)4,)ct)d th) 7ost r)a,istic 4indin-s and )(+)ctations.
3h) 4utur) @i,, brin- about an )v)n -r)at)r n))d to 4ocus on intan-ib,)s @h)n In4or7ation syst)7sK )sca,atinCusti4yin- syst)7s )(+)ns) and -ro@in- i7+ortanc) i7+,)7)ntation to or-ani8ations hav) 7ad) th) +roC)cts. 3h) Custi4ication o4 +roC)cts +roC)ct)d incr)asin-,y critica,. 3his study )cono7ic va,u) o4 d)7onstrat)d that traditiona, +roc)ss and cost b)n)4it ana,ysis cou,d b) syst)7s a++,i)d to ,ar-)5sca,) int)-ration )44orts in4or7ation syst)7s +roC)cts @i,, n))d to b) such as in4rastructur) and 7)asur)d not )nt)r+ris) r)sourc) +,annin-. on,y on int)rna, 6(t)ndin- th) traditiona, +roC)cts, but a,so 7)thodo,o-y, th) study across su++,i)rs, i,,ustrat)d ho@ intan-ib,) custo7)rs and 7)asur)s can b) us)d to oth)r +artn)rs in au-7)nt <BA ana,ysis and th) va,u) chain as inc,ud) @hat @as onc) b),i)v)d busin)ss to not consid)r)d 7)asurab,).
busin)ss ),)ctronic co77)rc) b)co7)s 7or) +r)va,)nt. 3h) va,u) o4 in4or7ation that @i,, b) avai,ab,) in data @ar)hous)s, 4ro7 kno@,)d-) 7ana-)7)nt and )()cutiv) in4or7ation syst)7s @i,, b) anoth)r cha,,)n-) 4or 7ana-)rs +)r4or7in- )( ant) syst)7s i7+,)7)ntation ana,ysis. A coh)siv) s)t o4 7)thodo,o-i)s and t)chniqu)s to 7)asur) th) va,u) o4 th)s) intan-ib,)s @i,, b) r)quir)d i4 7ana-)7)nt is to succ))d in b)tt)r )sti7ation o4 +roC)ct va,u).
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3his i7+rov)d ana,ysis +rovid)d <<<Ks 7ana-)rs @ith a 7or) accurat) and r)a,istic ,ook o4 th) r)turns )(+)ct)d as a r)su,t o4 und)rtakinth) 6RP i7+,)7)ntatio n.
and SAPKs RI# can b) 4ound at @@@.s a+.co7 or in on) o4 7any curr)nt busin) ss +ub,ica tions.
3. Aor instanc),
ENDNOTES
1. 3h)
2.
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2 3 2 -
Chapter KG: Effecti!e Cse of E0ternal E0pertis e in Enterpri INTRODUCTION 6nt)r+ris) syst)7s 06S2, a se 7or) -)n)ra, and 4(ste's co7+r)h)nsiv) t)r7 than th) 7or) 4ocus)d )nt)r+ris) : & .e, r)sourc) +,annin- 06RP2 t)r7, ,ar-), co7+,)( hi-h,y 6ealan" ar) int)-rat)d in4or7ation syst)7s d)si-n)d to 7))t th) Case in4or7ation n))ds o4 th) Dav)n+ort 0/$$$2 E0perien or-ani8ation. d)scrib)s th)s) syst)7s as in4or7ation syst)7s that ce int)-rat) in4or7ation 4ro7 a,,
4unctiona, ar)as o4 an or-ani8ation @ith th) -oa, o4 O% $a0ie /urns +rovidin- a 7or) @ho,) or *)or-ia South)rn co7+,)t) in4or7ation r)sourc). An )(t)nsion o4 +rior ,ar-)5 >niv)rsity, >SA sca,) int)-rat)d syst)7s, i.)., <o+yri-ht . 7anu4acturin- r)sourc) /$$/, Id)a *rou+ +,annin- 0MRP II2, )nt)r+ris) Pub,ishin-. syst)7s hav) b)co7) )ss)ntia, 4or ,ar-) 7u,tinationa, 6nt)r+ris) cor+orations @ishin- to syst)7s 06S2 ar) int)-rat) and standardi8) th)ir ,ar-), co7+,)( or-ani8ationKs busin)ss hi-h,y int)-rat)d +roc)ss)s. No@, s7a,, to in4or7ation 7idsi8)d or-ani8ations ar) syst)7s d)si-n)d ado+tin- )nt)r+ris) syst)7s to to 7))t th) r)7ain co7+)titiv) in th) in4or7ation -,oba, 7ark)t+,ac). Most n))ds o4 th) or-ani8ations @ishin- to 4u,,y or-ani8ation. i7+,)7)nt an ),)ctronic Li7it)d r)s)arch co77)rc) 0)5co77)rc)2 has b))n strat)-y r)co-ni8) th) n))d to conduct)d on th) int)-rat) th) F)b5bas)d 4ront5 us) o4 )(t)rna, )nd o4 )5co77)rc) @ith ord)r )(+)rtis) in 4u,4i,,7)nt, ,o-istics, and in4or7ation 4inancia, back5)nd syst)7s syst)7s and su++ort)d by th) )nt)r+ris) virtua,,y non) as syst)7 0Marchak, /$$$2. 3hus it a++,i)s to )nt)r+ris) syst)7s hav) )nt)r+ris) b)co7) th) 4oundation that
syst)7s. 3his +a+)r addr)ss)s th) issu)s associat)d @ith th) us) o4 )(t)rna, )(+)rtis) in )nt)r+ris) syst)7s. It ,ooks at th) 6S i7+,)7)ntation ,i4) cyc,) and id)nti4i)s @h)r) in th) i7+,)7)ntation +roc)ss )(t)rna, )(+)rts ar) uti,i8)d and @hat ro,)s th)y 4u,4i,, in th) i7+,)7)ntation +roC)ct. 3h) +a+)r conc,ud)s @ith a N)@ E)a,and cas) )(+)ri)nc) i,,ustratin- th) us) o4 )(t)rna, )(+)rts in a 7aCor )nt)r+ris) syst)7s i7+,)7)ntation.
OVERVIEW
su++orts an or-ani8ationKs )<o77)rc) strat)-y.
i7+,)7)ntations. Most or-ani8ations stru--,) @ith 6S i7+,)7)ntation 0Ba,d@in, /$$!N Markus ; 3anis, /$$$N Fa-,), !""&2. 6v)n @ith th) 4inancia, r)sourc)s and th) ,on-5t)r7 4ocus)d 6nt)r+ris) syst)7s 06S2 ar) co77it7)nt, @h)r) do or-ani8ations 4ind th) r)quir)d ,ar-), co7+,)( )(+)rtis) to succ)ss4u,,y b)asts. 0S)) i7+,)7)nt th)s) co7+,)( 3ab,) ! 4or a syst)7sZ 3h) ans@)r is o4t)n su77ary o4 6S i7+,)7)ntation to )n-a-) )(t)rna, )(+)rts, charact)ristics.2 i.)., consu,tants, to 4i,, this r)sourc) void. 3h) us) o4 6nt)r+ris) syst)7s ty+ica,,y consu,tants 0a,so r)4)rr)d to as r)quir) 7i,,ions o4 int)-ration +artn)rs2 is co77on in 6S i7+,)7)ntations do,,ars in r)sourc)s, y)ars 0Abra7son, !""&N Dav)n+ort, !""&N Markus ; 3anis, /$$$N o4 4ocus)d co77it7)nt, and Mc<arty, !"""N Ross, !"""2. a ,ar-) contin-)nt 3h) issu) b)co7)s not @h)th)r o4 hi-h,y ski,,)d an or-ani8ation shou,d us) +ro4)ssiona,s to )(t)rna, )(+)rtis), but rath)r )nsur) succ)ss4u, ho@ to )44)ctiv),y )n-a-) and uti,i8) )(t)rna, )(+)rtis).
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busin)ss)s that ado+t)d a v)ndor5on,y a++roach achi)v)d a hi-h)r ,)v), o4 IS )44)ctiv)n)ss and a hi-h)r Table ;: ,)v), o4 or-ani8ationa, i7+act 4u''ar( of E4 than s7a,, busin)ss)s that i'ple'entation +ursu)d a consu,tant5v)ndor characteristics a++roach. 3h)ir 4indin-s @)r) bas)d on in+ut 4ro7 1% s7a,, 6nt)r+ris) busin)ss)s in Sin-a+or) and Syst)7s <haract)ristics did not addr)ss th) issu)s associat)d @ith co7+,)( 1 Lar-) int)-rat)d syst)7s such as )nt)r+ris) syst)7s. Ironica,,y, 2 <o7+,)( virtua,,y )v)rythin- @ritt)n in th) ar)a o4 )(t)rna, )(+)rtis) 3 Int)-rat)d us) is 4ro7 th) 7aCor consu,tin- 4ir7s and so4t@ar) 4 6(+)nsiv) v)ndors @ho ar) +rovid)rs o4 th) )(t)rna, )(+)rtis). 5 LonR)c)nt studi)s 0Ja7)s ; i7+,)7)nt Fo,4, /$$$N Markus ; ation cyc,) 3anis, /$$$2 su--)st Cust ho@ si-ni4icant Li7it)d r)s)arch i7+,)7)ntation and has b))n consu,tin- s)rvic)s ar) in conduct)d on th) )nt)r+ris) syst)7s us) o4 )(t)rna, i7+,)7)ntation 0s)) Ai-ur) )(+)rtis) in !2. 3h)s) studi)s indicat) in4or7ation that tota, inv)st7)nt in syst)7s and 6RP syst)7s @as T&/ virtua,,y non) as bi,,ion in !""". 3h) ,ar-)st it a++,i)s to o4 4our )(+)nditur) )nt)r+ris) cat)-ori)s @as syst)7s 0Bro@n ; i7+,)7)ntation and =)ss)y, !"""2. consu,tin- s)rvic)s 0T#& 3hon-, Qa+, and bi,,ion2, a,7ost doub,) th) Ra7an 0!""G2 cost o4 hard@ar) or v)ndor +ub,ish)d on) o4 so4t@ar). Studi)s su--)st th) 4)@ )7+irica, that i7+,)7)ntation and studi)s on th) us)consu,tin- s)rvic)s ar) o4 )(t)rna, b)t@))n t@o and 4iv) ti7)s )(+)rts in 6RP ,ic)ns)sK cost 0Markus in4or7ation ; 3anis, /$$$2. ProC)ctions syst)7s. 3h)y ar) 4or 6RP ,ic)ns)s studi)d th) ,)v), r)v)nu) to incr)as) to T'% o4 IS bi,,ion by /$$#. I4 th) )44)ctiv)n)ss in r),ationshi+ b)t@))n s7a,, busin)ss)s so4t@ar) ,ic)ns) r)v)nu) usin- a and i7+,)7)ntation and consu,tant5v)ndor consu,tin- r)v)nu) a++roach to continu)s, th) +roC)ct)d in4or7ation cost o4 i7+,)7)ntation and syst)7s consu,tin- s)rvic)s 4or i7+,)7)ntation )nt)r+ris) syst)7s v)rsus a v)ndor5 i7+,)7)ntation @i,, b) on,y a++roach. b)t@))n T!#& bi,,ion and T##1 bi,,ion by /$$#, a 3h)y conc,ud)d hu-) nu7b)rf that s7a,,
2 3 4 -
+igure ;: Su77ary o4 6RP inv)st7)nt 3his +a+)r addr)ss)s th) issu)s associat)d @ith th) us) o4 )(t)rna, )(+)rtis) in )nt)r+ris) syst)7s. It ,ooks at th) 6S i7+,)7)ntation ,i4) cyc,) and id)nti4i)s @h)r) in th) i7+,)7)ntation +roc)ss consu,tants ar) uti,i8)d and @hat ro,)s th)y 4i,, in th) i7+,)7)ntation. 3h) +a+)r conc,ud)s @ith a N)@ E)a,and cas) )(a7+,) i,,ustratin- th) us) o4 )(t)rna, )(+)rts in a 7aCor )nt)r+ris) syst)7s i7+,)7)ntation.
E,TERNAL E,PERTISE ISSUES

3h) d)cision to )n-a-) )(t)rna, )(+)rts in th) 6S i7+,)7)ntation +roC)ct is si-ni4icant. 0:4t)n, it is th) )(t)rna, )(+)rt @ho 4irst +ro+os)s th) us) o4 an )nt)r+ris) syst)7s a++roachBbut 7or) on that ,at)r.2 3h) s),)ction o4 an )(t)rna, consu,tin- +artn)r is a ,on-5t)r7 co77it7)nt to th) consu,tantKs +hi,oso+hy, 7)thodo,o-y, and cu,tur). 3h) r),ationshi+ -)n)ra,,y s+ans 1 y)ars or ,on-)r and cost 7i,,ions o4 do,,ars. Mistak)s in th) s),)ction o4 )(t)rna, )(+)rts ar) di44icu,t and )(+)nsiv) to corr)ct. E0ternal E0pertise +it -ith Organi*ation A k)y issu) in th) s),)ction o4 6S consu,tants is a stron- cu,tura, 4it b)t@))n th) or-ani8ation and th) )(t)rna, )(+)rts. Fh)r) do)s th) )(+)rtis) r)sid), @ith th) or-ani8ation or @ith th) consu,tantZ Ho@ acco77odatin- is th) consu,tant in ada+tinto th) @ays o4 th) or-ani8ationZ :r, 7ust th) or-ani8ation ada+t to th) 7)thodo,o-y o4 th) consu,tantZ Do)s th) consu,tant +ro+os) a R+rov)nS 7)thodo,o-y that is acc)+tab,) to th) or-ani8ationZ Fhat is th) +osition o4 th) or-ani8ation r),ativ) to +roC)ct
invo,v)7)ntZ Hands5o44B,)t th) consu,tants do )v)rythin- and t),, 7) @h)n @)Kr) 4inish)dBor, activ) invo,v)7)nt @ith th) or-ani8ation, havin- a stron- n))d to und)rstand th) +roc)ss)s and b) dir)ct,y invo,v)d in th) d)cision +roc)ss. Ait is critica, to th) succ)ss o4 th) r),ationshi+ b)t@))n th) or-ani8ation and )(t)rna, )(+)rts. It is a,so a k)y in-r)di)nt 4or ov)ra,, 6S succ)ss 0Mc<arty, !"""2. &lternati!es for Engaging E0ternal E0perts
3h)r) ar) various a,t)rnativ) strat)-i)s to )n-a-in- )(t)rna, )(+)rts in an 6S i7+,)7)ntation +roC)ct. 3h)s) a,t)rnativ)s ar) out,in)d in 3ab,) /. Fh)n and in @hat ro,) )(t)rna, )(+)rts ar) initia,,y invo,v)d in th) 6S i7+,)7)ntation +roc)ss vari)s @id),y. It d)+)nds on th) n))ds and int)rna, )(+)rtis) o4 th) or-ani8ation. Most or-ani8ations 4o,,o@ on) o4 t@o do7inant strat)-i)s in )n-a-in- )(t)rna, )(+)rts. 3h)
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In th) 4irst strat)-y, th) or-ani8ation s),)cts th) 6S so4t@ar) v)ndor and th)n choos)s th) )(t)rna, )(+)rts, i.)., int)-ration +artn)r. 3h) or-ani8ation has r)co-ni8)d th) n))d 4or an 6S so,ution, )va,uat)d th) 7ark)t+,ac), and chos)n a +ri7ary 6S so4t@ar) +roduct. 3his d)cision driv)s and in4,u)nc)s th) n))d 4or )n-a-in- )(t)rna, )(+)rts. 3h) +ri7ary ro,) o4 th) )(t)rna, )(+)rtis) is to su++ort th) i7+,)7)ntation o4 th) s),)ct)d 6S so4t@ar). In this 7od), th) 6S so4t@ar) v)ndor o4t)n r)co77)nds 0or in4,u)nc)s th) d)cision on th) us) o42 th) Table 9: &lternati!es to )(t)rna, )(+)rts to th) or-ani8ation. 3h) 6S so4t@ar) engaging v)ndor 7ay 4i,, th) ro,) o4 e0ternal )(t)rna, )(+)rt its),4 by e0perts +rovidin- i7+,)7)ntation A,t)rnativ)s to )(+)rtis) and su++ort. 6n-a-in6(t)rna, 3h) s)cond strat)-y is @h)r) 6(+)rts th) or-ani8ation 4irst s),)cts th) 6S consu,tin- 4ir7 and 1 6S So4t@ar) invo,v)s th)s) )(+)rts in th) r)vi)@ and ado+tion o4 th) 6S =)ndor, so4t@ar) v)ndor. In this 7od), Int)-ratio th) )(t)rna, )(+)rts hav) a n Partn)r 7uch 7or) si-ni4icant ro,) in 6S d)cision +roc)ss)s. 3h)y 2 6S not on,y i7+act th) <onsu,tant i7+,)7)ntation o4 th) 6S but , 6Sa,so k)y d)cisions r),atin- to So4t@ar) busin)ss +roc)ss)s, =)ndor or-ani8ationa, obC)ctiv)s, and chan-) 7ana-)7)nt. 3 6S :r-ani8ations that ado+t this <onsu,tant strat)-y 7ay r)co-ni8) a n))d , 6S4or an 6S so,ution but ,ack th) So4t@ar) int)rna, )(+)rtis) to )va,uat) =)ndor, a,t)rnativ)s and 7ak) Int)-ratio in4or7)d busin)ss d)cisions n @ithout th) su++ort o4 trust)d +artn)rs. 4 Partn)r 6S <onsu,tant A third strat)-y b)co7in, 6S7or) +r)va,)nt is a hybrid that So4t@ar) invo,v)s th) us) o4 7u,ti+,) sourc)s o4 )(t)rna, )(+)rtis). =)ndor, Int)-ratio 3h) 4ir7 )n-a-)s an 6S consu,tancy to assist in 6S n v)ndor )va,uation and 5 Partn)r, s),)ction. It th)n, @ith th) 6S Auditor assistanc) o4 th) 6S or-ani8ation )ith)r initia,,y s),)cts th) 6S so4t@ar) v)ndor or initia,,y s),)cts an 6S consu,tin4ir7 to +rovid) -uidanc) and )ar,y dir)ction 4or th) +roC)ct.
consu,tant, choos)s th) 6S so4t@ar) v)ndor. 3h) s),)ction o4 th) 6S so4t@ar) driv)s th) or-ani8ation to s),)ct a di44)r)nt int)-ration +artn)r to assist in th) 6S i7+,)7)ntation. 3h) or-ani8ation 7ust no@ 7ana-) 7u,ti+,) sourc)s o4 )(t)rna, )(+)rtis). 3his arran-)7)nt can ,)ad to con4,ict and con4usion i4 th) ro,)s o4 th) various )(t)rna, r)sourc)s ar) not c,)ar,y d)4in)d and 7ana-)d.
3his 7u,ti5r)sourc) strat)-y r)co-ni8)s th) s+)cia,i8)d n))ds o4 a co7+,)( 6S i7+,)7)ntation and 4aci,itat)s th) ov)ra,, 6S chan-) +roc)ss.
A 4ourth strat)-y is an )(t)nsion o4 th) third, addin- an additiona, sourc) o4 )(t)rna, )(+)rtis) to conduct +ost56S5i7+,)7)ntation r)vi)@. 3h) ro,) o4 6S auditor is b)co7in- 7or) co77on, )s+)cia,,y in ,ar-) 6S i7+,)7)ntation )nviron7)nts. 3h)s) )(t)rna, )(+)rts s))k to )va,uat) th) busin)ss va,u) o4 th) 6S i7+,)7)ntation, d)t)r7in) i4 -oa,s and obC)ctiv)s @)r) acco7+,ish)d, and v)ri4yI va,idat) th) outco7)s o4 th) i7+,)7)ntation. Fh)r) us)d, th)y ar) virtua,,y a,@ays an ind)+)nd)nt r)sourc) that @as not )n-a-)d in th) 6S d)cision +roc)ss or th) i7+,)7)ntation. 3h)r) is v)ry ,itt,)
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ro,) con4,ict b)t@))n th) 6S auditor, th) 6S consu,tant, or th) int)-ration +artn)r. 3h) 6S auditor -)n)ra,,y r)+orts to th) chi)4 )()cutiv) o44ic)r or board o4 dir)ctors o4 th) or-ani8ation and +rovid)s an obC)ctiv) )va,uation o4 th) 6S +roC)ct.
E,TERNAL E,PERTISE USE IN ES IMPLEMENTATION

3h) uti,i8ation o4 )(t)rna, )(+)rtis) vari)s across th) i7+,)7)ntation +roc)ss. Ai-ur) / +rovid)s a 7od), o4 th) us) o4 )(t)rna, )(+)rtis) in th) 6S i7+,)7)ntation +roc)ss. 3his 7od), br)aks th) 6S i7+,)7)ntation into 4our distinct +has)s +r)56S, )ar,y 6S, 7id56S, and +ost56S. 6ach +has) @i,, b) discuss)d s)+arat),y.
+igure 9: >s) o4 )(t)rna, )(+)rtis) 7od), Pre3E4 Phase 3h) +r)56S +has) invo,v)s th) us) o4 )(t)rna, )(+)rtis) +rior to 6S b)in- consid)r)d by th) or-ani8ation. *)n)ra,,y, this is in th) 4or7 o4 strat)-ic 7ana-)7)nt consu,tin- or strat)-ic IS +,annin-. As or-ani8ations r)vi)@ and +r)+ar) th)ir strat)-ic IS +,ans, it is co77on to )n-a-) )(t)rna, )(+)rts. 3h)s) consu,tants +rovid) a va,uab,) r)sourc)
that o4t)n id)nti4i)s th) n))d and 7ak)s th) initia, su--)stion that th) or-ani8ation shou,d consid)r an 6S as a +ossib,) so,ution to or-ani8ationa, in4or7ation n))ds. Anoth)r ro,) o4 )(t)rna, )(+)rts in th) +r)56S +has) is in th) ar)a o4 busin)ss +roc)ss r))n-in))rin-. Durin- th) +ast d)cad) busin)ss)s hav) b)-un to car)4u,,y )va,uat) th)ir busin)ss +roc)ss)s and 7ak) n)c)ssary chan-)s to str)a7,in) th)s) +roc)ss)s. As busin)ss +roc)ss)s chan-), so 7ust in4or7ation syst)7s that su++ort th)7. :r-ani8ationa, o+tions r)7ain ,i7it)dN th) busin)ss )ith)r bui,ds tota,,y n)@ in4or7ation syst)7s to su++ort th)ir n)@ busin)ss +roc)ss)s or ado+ts an 6S so,ution to su++ort th) n)c)ssary chan-). Dav)n+ort 0/$$$2 discuss)s at ,)n-th th) ro,) o4 6S in )nab,inbusin)ss +roc)ss r))n-in))rin-. Many or-ani8ations choos) to ado+t an 6S and th)n ada+t th)ir busin)ss +roc)ss)s to 4it th) 6S, +r)4)rrin- or-ani8ationa, chan-) to so4t@ar) 7odi4ication and subs)qu)nt so4t@ar) 7aint)nanc) conc)rns.
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Earl( E4 Phase
As or-ani8ations b)-in th) +roc)ss o4 )va,uatin- and ado+tin- an 6S so,ution, th) ro,)s o4 th) )(t)rna, )(+)rts chan-). I4 th) or-ani8ation has o+t)d to )n-a-) 6S consu,tants +rior to th) Anoth)r k)y ar)a o4 6S s),)ction o4 th) consu,tant invo,v)7)nt is in th) 6S so4t@ar) d)v),o+7)nt o4 th) busin)ss v)ndor, th) )(t)rna, )(+)rts cas). In ord)r to )nsur) busin)ss va,u), th) can +rovid) 7u,ti+,) va,uab,) or-ani8ation shou,d d)v),o+ a co7+r)h)nsiv) busin)ss cas) s)rvic)s. 3h)s) inc,ud), but ar) 4or th) ado+tion o4 th) 6S so,ution. 3his busin)ss cas) not ,i7it)d to, busin)ss +roc)ss shou,d +rovid) a stat)7)nt o4 +ur+os), +roC)ct -oa,s and r))n-in))rin-N obC)ctiv)s, +roC)ct sco+), and a busin)ss cas) costIb)n)4it ana,ysis o4 th) 6S d)v),o+7)ntN so4t@ar) v)ndor +ro+osa,. 3h) busin)ss cas) ana,ysis, r)vi)@, c,)ar,y d)4in)s th) bas),in) that @i,, b) us)d to )va,uat) th) and s),)ctionN succ)ss o4 th) 6S and +roc)ss i7+,)7)ntation, as @),, as 7a++in- and 7)trics to b) us)d in th) +ost5 r)d)si-n. i7+,)7)ntation r)vi)@. A-ain, It is a++ar)nt or-ani8ations o4t)n ,ack th) 4ro7 Ai-ur) / int)rna, r)sourc)s n))d)d to that th)r) is an co7+,)t) th) task ov)r,a+ in th) ro,)s o4 )(t)rna, ind)+)nd)nt,y. )(+)rts as @) 7ov) throu-h th) 3h) 4ina, ar)a @) discuss in th) )ar,y 6S +has) is so4t@ar) 6S +has)s. Busin)ss +roc)ss v)ndor ana,ysis, r)vi)@, and s),)ction. 6S consu,tants ar) r))n-in))rin0BPR2 can occur o4t)n )n-a-)d to assist th) or-ani8ation in id)nti4yin+rior to th) 6S qua,i4i)d 6S so4t@ar) v)ndors, d)cision andIor +rovidin- a 7)thodo,o-y 4or durinth) 6S +roC)ct, b)-innin- ana,ysis and r)vi)@ and assistin- in th) so4t@ar) v)ndor in th) )ar,y 6S +has). :4t)n th) s),)ction +roc)ss. 6S consu,tants o4t)n hav) k))n 6S +roC)ct is driv)n by th) BPR insi-hts into +ot)ntia, so4t@ar) v)ndor so,utions. *ainininitiativ) as )(+)ri)nc) 4ro7 7u,ti+,) +r)vious,y discuss)d. Fh)r) )n-a-)7)nts, th) 6S an 6S so,ution is consu,tant o4t)n )nCoys a b)tt)r +)rs+)ctiv) o4 @hat is avai,ab,) ado+t)d, th)r) in th) 6S 7ark)t+,ac) and @i,, b) +roc)ss @hich o4 a vari)ty o4 so4t@ar)
chan-). 3h) n))d to 7a+ )(istin- +roc)ss)s and th)n d)si-nIr)d)si-n n)@ +roc)ss)s is a 4unda7)nta, r)quir)7)nt o4 6S i7+,)7)ntation 0)v)n th) soca,,)d t)chnica, 6S i7+,)7)ntations r)quir) so7) busin)ss +roc)ss 7odi4ication2. 6(t)rna, )(+)rts o4t)n 4i,, a 7aCor ro,) in th) ar)a o4 +roc)ss d)si-nIr)d)si-n. Many or-ani8ations ,ack th) int)rna, )(+)rtis) and )(+)ri)nc) to co7+,)t) this critica, task @ithout assistanc).
+roducts b)st 7))ts th)ir c,i)ntKs n))ds. A so,id r),ationshi+ @ith an 6S consu,tant can 4aci,itat) th) r)vi)@ and s),)ction +roc)ss and avoid th) +it4a,,s o4 th) novic) or-ani8ation. Most or-ani8ations hav) n)v)r d)a,t @ith a so4t@ar) +urchas) d)cision o4 this 7a-nitud) or co7+,)(ity. 3h) avai,abi,ity o4 co7+)t)nt )(+)rtis) can +rov) inva,uab,). $i"3E4 Phase Mid56S is th) h)art o4 th)
i7+,)7)ntation +roc)ss. 3h) 6S so4t@ar) v)ndor has b))n s),)ct)d, th) hard@ar) r)quir)7)nts hav) b))n d)t)r7in)d 0bas)d on th) so4t@ar) r)quir)7)nts2, and th) databas)In)t@ork in4rastructur) n)c)ssary to su++ort th) 6S is in +,ac) or b)in- i7+,)7)nt)d. 3h)r) ar) substantia, n))ds 4or ski,,)d r)sourc)s to acco7+,ish 7u,ti+,) critica, tasks, both t)chnica, and nont)chnica,. It is at this +has) that 7ost or-ani8ations 4ind th)y ,ack th) int)rna, )(+)rtis) to co7+,)t) n)c)ssary tasks in a ti7),y 7ann)r. 3hus or-ani8ations o4t)n turn to )(t)rna, )(+)rts to assist in th) 6S i7+,)7)ntation. *)n)ra,,y th) )(t)rna, )(+)rts in this +has) ar) r)4)rr)d to as int)-ration +artn)rs. 3h)y +rovid) uniqu) )(+)rtis) on th) 6S so4t@ar) and i7+,)7)ntation 7)thodo,o-i)s.
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3h) 6S so4t@ar) v)ndor 7ay +rovid) this r)sourc) throu-h its consu,tin-Ii7+, )7)ntation su++ort or-ani8ation. So7) v)ndor su++ort @i,, ,ik),y b) inc,ud)d in th) 6S so4t@ar) a-r))7)nt, but it is un,ik),y to 7))t a,, th) n))ds o4 th) or-ani8ation as th) or-ani8ation @orks throu-h th) i7+,)7)ntation +roc)ss. Most or-ani8ations 4ind th)7s),v)s contractin- 4or additiona, s)rvic)s 4ro7 th)ir 6S so4t@ar) v)ndor andIor a third5 +arty 6S consu,tin- 4ir7.
ov)ra,, chan-) 7ana-)7)nt +roc)ss. 3h)r) ar) c)rtain,y oth)r ro,)s and r)s+onsibi,iti)s, but th)s) a++)ar to b) th) do7inant ro,)s that ar) 4i,,)d by )(t)rna, )(+)rts.
3h) ro,) o4 th) )(t)rna, )(+)rt is both t)chnica, and nont)chnica,. 6S con4i-uration r)quir)s th) 7a++in- o4 th) or-ani8ationKs busin)ss +roc)ss)s into th) 6S so4t@ar), or th) ada+tino4 th) or-ani8ationKs busin)ss +roc)ss)s to th) 6S ca+abi,iti)s. In )ith)r cas), busin)ss +roc)ss)s 7ust b) 7a++)d and adCust)d to 7))t th) n))ds o4 th) or-ani8ation. Busin)ss +roc)ss)s, and or-ani8ations, 7ust chan-). 6(t)rna, )(+)rts o4t)n +,ay k)y ro,)s in busin)ss +roc)ss 7a++inand chan-) 7ana-)7)nt.
3rainin- and )ducation hav) ,on- b))n id)nti4i)d as )ss)ntia, to in4or7ation syst)7s succ)ss. Most or-ani8ations ,ack th) int)rna, )(+)rtis) n)c)ssary to d)v),o+ and d),iv)r an )44)ctiv) 6S trainin- +ro-ra7. 3hus, or-ani8ations a-ain turn to )(t)rna, r)sourc)s. 6S so4t@ar) v)ndors +rovid) 3h)r) ar) a nu7b)r o4 tasks cours)s and trainin- 4ocus)d on th)ir s+)ci4ic +roducts. that cou,d, and o4t)n do, invo,v) :4t)n, ho@)v)r, this trainin- is )(t)rna, )(+)rts. -)n)ric and not ada+t)d to th) Proc)ss r)d)si-n or-ani8ationKs busin)ss 0or )v)n cu,tur)2. <usto7i8)d is on-oin- and trainin- +rovid)d by third5 s+ans th) )ar,y +arty or-ani8ations 4i,,s a n))d 6S +has). in this 7id5 6S +has) by Additiona,,y, d)v),o+in- and d),iv)rinor-ani8ations trainin- and )ducation tai,or)d s))k assistanc) in to th) or-ani8ationKs n))ds. con4i-urinth) <as) studi)s indicat) that 6S to th) trainin- 7ust +rovid) both th) or-ani8ation, d)tai,)d 4unctiona, trainin- and +,annin- and th) ov)ra,, cont)(tI4ra7)@ork )()cutin- th) o4 th) 6S 0Avita, ; data conv)rsion, =and)nhosh, !"""N Hirt ; d)v),o+in- and S@anson, !"""N Ross, !"""2. d),iv)rinth) I4 us)rs do not und)rstand n)c)ssary th)ir ro,) in th) 6S, th)y @i,, trainin-, and not b) ab,) to )44)ctiv),y su++ortin- th) uti,i8) th) syst)7.
So4t@ar) insta,,ation and conv)rsion is a critica, +oint in th) 6S i7+,)7)ntation +roc)ss. 3h) 7)thodo,o-y us)d 4or 6S conv)rsion vari)s @ith or-ani8ationa, si8) and co7+,)(ity. A,t)rnativ) insta,,ation a++roach)s inc,ud) bi- ban-, +has)d, incr)7)nta,, or a hybrid a++roach 0Dav)n+ort, /$$$N Markus ; 3anis, /$$$2. 6(t)rna, )(+)rts +rovid) th) )(+)ri)nc)d insi-hts into th) ov)ra,, conv)rsion +roc)ss. Havin-ain)d
)(+)ri)nc) 4ro7 7u,ti+,) 6S i7+,)7)ntations, th) int)-ration +artn)r can su--)st strat)-i)s and t)chniqu)s to 7ini7i8) risk and 7a(i7i8) r)su,ts. A co7bination o4 )(t)rna, )(+)rts and int)rna, or-ani8ationa, r)sourc)s o44)rs th) b)st sourc) o4 kno@,)d-) and )(+)rtis) at this critica, sta-). Post3E4 Phase 3h) 4ina, +has) o4 th) 6S i7+,)7)ntation +roc)ss r)co-ni8)s th) n))d 4or on-oinchan-) 7ana-)7)nt, 6S i7+,)7)ntation r)vi)@, and va,u)Ib)n)4its d)t)r7ination. 3hou-h an 6S +roC)ct is n)v)r co7+,)t), it do)s r)ach a +oint @h)r) r)4,)ction and )va,uation is )ss)ntia,. *iv)n th) inv)st7)nt in ti7), co77it7)nt, and r)sourc)s n)c)ssary to i7+,)7)nt an 6S, busin)ss va,u) 7ust b) r)a,i8)d and r)su,ts docu7)nt)d. Post5 i7+,)7)ntation consu,tant r)vi)@ +rovid)s such an obC)ctiv) ana,ysis.
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on-oinsu++ort 4or and u+-rad)s to th) initia, 6S so,ution. As 6S so4t@ar) 3h) -oa,s and v)ndors o44)r n)@ r),)as)s o4 obC)ctiv)s th)ir +roducts, or-ani8ations )stab,ish)d in 7ust +,an and i7+,)7)nt, as th) busin)ss a++ro+riat), th)s) n)@ cas) in th) r),)as)s. <han-) is constantN )ar,y 6S +has) th) or-ani8ation o+)rat)s in a 7ust b) dyna7ic )nviron7)nt and r)visit)d, 7ust continuous,y ada+t to 7)trics th)s) chan-)s. 3h) 6S 7ust u+dat)d, and continuous,y chan-) to k))+ busin)ss va,u) +ac) @ith or-ani8ationa, and d)t)r7in)d. )nviron7)nta, chan-)s. 6(t)rna, )(+)rts ar) b)st 6(t)rna, )(+)rts 7ay b) us)4u, in assistin- th) suit)d 4or such or-ani8ation in th) a r)vi)@. R)+ortin- to th) continuous chan-) <6: or board o4 7ana-)7)nt +roc)ss. It is i7+ortant to not) that a dir)ctors, th) t)chnica, chan-) to an 6S 6S consu,tant @ithout busin)ss va,u) is i,,5 shou,d b) advis)d. I4 th) chan-) do)s ind)+)nd)nt o4 not +rovid) busin)ss va,u), th) i7+,)7)ntation donKt do it. +roc)ss its),4, not havin+artici+at)d in A NEW ZEALAND )ar,i)r +roC)ct CASE E,PERIENCE +has)s. 3h) 6S audit shou,d 3h) 4o,,o@in- discussion id)nti4y and d)scrib)s th) )(+)ri)nc)s o4 a docu7)nt th) 7aCor N)@ E)a,and r)turn on or-ani8ation as it inv)st7)nt o4 i7+,)7)nt)d an 6S so,ution. th) 6S +roC)ct. 6S so,utions ar) 3h) co7+any 7ad) )(t)nsiv) us) o4 )(t)rna, )(+)rts durinbusin)ss its 15y)ar i7+,)7)ntation so,utions and +roC)ct. 3h) or-ani8ationKs 7ust +rovid) busin)ss va,u). na7) and c)rtain co7+any in4or7ation hav) b))n a,t)r)d In ord)r to to +rot)ct its id)ntity. Custi4y and su++ort on-oin- In4or7ation @as co,,)ct)d in /$$! 4ro7 int)rvi)@s @ith k)y inv)st7)nt in 4utur) syst)7s, or-ani8ationa, 7ana-)rs and curr)nt syst)7s co7+any r)cords. 3ab,) # +rovid)s a su77ary o4 th) 7ust d),iv)r or-ani8ationa, in4or7ation. va,u). 3his va,u) can b)st b) v)ri4i)d thou-h th) us) o4 )(t)rna, )(+)rts. Anoth)r co7+on)nt o4 th) +ost56S +has) is th)
Table =: $a7or in"ustrial organi*ation ProductIS)rvic) Busin)ss Sco+) <o77)rcia,Iconsu7)r Int)rnationa,
R)v)nu) 67+,oy))s ProC)ct Sco+) ProC)ct Aocus ProC)ct S+onsor ProC)ct <ost Nu7b)r o4 >s)rs 6S =)ndor 6S <onsu,tants 3i7) Ara7) ProC)ct B)n)4its
T!.1^ bi,,ion !$,$$$^ Broad, 7u,ti4ac)t)d <o7+r)h)nsiv) 6RP <A: T%1^ 7i,,ion /,1$$^ SAP Mu,ti+,) 1 y)ars :+)rationa, b)n)4its
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MaCor Industria, :r-ani8ation 0MI:2 is a N)@ E)a,and 7u,tinationa, cor+oration @ith ov)r T!.1 bi,,ion 0NET2 in sa,)s. It 7anu4actur)s co77)rcia, and consu7)r +roducts 4or th) Austra,asian 7ark)t. :n) o4 th) ,)adin- industri)s in N)@ E)a,and, MI: has ,on+,ay)d a k)y ro,) in th) nationKs )cono7y. MI: has 7u,ti+,) strat)-ic busin)ss units 0SB>2 )(+,oitin- o++ortuniti)s in tar-)t)d 7ark)t s)-7)nts. 3h)s) SB>s o+)rat) s)7iautono7ous,y, havin- +ro4it and ,oss r)s+onsibi,ity but r)quirin- cor+orat) a++rova, 4or bud-)ts and 7aCor ca+ita, )(+)nditur)s. Prior to th) 6S, th) in4or7ation syst)7s o4 MI: @)r) a ,oos) 4)d)ration o4 distribut)d, quasi5ind)+)nd)nt syst)7s. <onso,idation @as di44icu,t and r)quir)d )(t)nsiv) 7anua, int)rv)ntion. In4or7ation @as not int)-rat)d or shar)ab,) across th) )nt)r+ris) and busin)ss +roc)ss)s vari)d @id),y. :v)r #1 di44)r)nt 4inancia, a++,ications ran on 7or) than 1$ +,at4or7s s+annin- Austra,asia. MI: had a cor+orat) cu,tur) o4 uti,i8in- )(t)rna, )(+)rts to aid in strat)-ic d)cision ana,ysis. A ,on-5standin- r),ationshi+ @ith th)ir 4inancia, accountants 7ad) th) us) o4 consu,tants a natura, )(t)nsion to su++ort in4or7ation syst)7s. Boston <onsu,tin*rou+ 0B<*2 +rovid)d MI: @ith strat)-ic IS consu,tinin th) )ar,y !""$s. B<* assist)d in d)v),o+in- strat)-ic in4or7ation syst)7s +,ans and r)vi)@in- strat)-ic in4or7ation syst)7s d)cisions. Durin- th)ir @ork, B<* discov)r)d that on) ,ar-) SB> @as )(+,orinth) us) o4 an 6S to 7))t its in4or7ation n))ds. B<* )va,uat)d th) +ro+osa, and r)co77)nd)d that th) board o4 dir)ctors su++ort th) +ro+osa, and that an 6S so,ution b) consid)r)d as a cor+orat) strat)-y. 3ab,) G +rovid)s a su77ary o4 th) us) o4 )(t)rna, )(+)rtis) durinth) 6S +roC)ct. 3h) tab,) 7a+s th) cas) us) o4 )(t)rna, )(+)rtis) into th) )(t)rna, )(+)rtis) us) 7od), +r)s)nt)d in Ai-ur) /. Table A: $<O use of e0ternal e0pertise Pre3E4 Strat)-ic IS +,anninBusin)ss <as) Earl( E4 =)ndor r)vi)@Is),)ction Proc)ss 7a++in-Ir)d)si-n $i"3E4 Syst)7s con4i-uration Data conv)rsion 3rainin<han-) 7ana-)7)nt Post3E4 I7+,)7)ntation r)vi)@ B)n)4its )va,uation B<*, Mc?ins)y Authur And)rs)n 6rnst ; Qoun-, D),oitt) 6rnst ; QounSAP 6rnst ; QounIBM 6rnst ; Qoun-, D),oitt) Boston <onsu,tin- *rou+
Pre3E4 Phase
In !""G, @orkin- @ith its +ri7ary syst)7s v)ndor, IBM, a ,ar-) SB> )va,uat)d th) 6S 7ark)t+,ac) in N)@ E)a,and and 4ound virtua,,y nothin-. 3h)r) @)r) no 6S so4t@ar)
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+roC)ct t)a7 @as or-ani8)d. A,7ost i77)diat),y, th) +roC)ct dir)ctor and <A: v)ndors @ith a r)co-ni8)d that th)y @)r) N)@ E)a,and +r)s)nc). 3h)r) )7barkin- on a Courn)y @ith ,itt,) )(+)ri)nc) or int)rna, @)r) no )(+)rtis) and b)-an to id)nti4iab,) 6S i7+,)7)ntations )va,uat) th) us) o4 )(t)rna, in N)@ E)a,and. )(+)rtis). Austra,ia +rovid)d th) c,os)st acc)ss Earl( E4 to this )7)r-int)chno,o-y. 3h) 3h) 6S so4t@ar) v)ndor s),)ction @as co7+,)t)d @ith chi)4 4inancia, o44ic)r 0<A:2 o4 no 4or7a, 6S consu,tinadvis)7)nt. MI: ado+t)d th) th) SB> cha7+ion)d th) strat)-y o4 s),)ctinth) 6S inv)sti-ation and so4t@ar) v)ndor and th)n a s7a,, )va,uation consid)rinth) us) o4 )(t)rna, )(+)rtis) to assist in t)a7 r)co77)nd)d th) 6S i7+,)7)ntation. 3hou-h a ado+tion o4 SAP co77on strat)-y, it o4t)n +r)c,ud)s a thorou-h 6S as th) 6S so4t@ar) v)ndor. v)ndor ana,ysis. IBM did +rovid) -uidanc) and in+ut An )(t)nsiv) )ar,y in th) d)cision +roc)ss )va,uation @as but did not +artici+at) in a not conduct)d. IBM +rovid)d th) 4or7a, consu,tin- r),ationshi+. 3h)y did, ho@)v)r, )()rt initia, )(t)rna, consid)rab,) in4,u)nc) in th) )(+)rtis) and d)cision +roc)ss and -uid)d substantia,,y MI: to r)vi)@ and )va,uat) in4,u)nc)d th) d)cision +roc)ss. SAP.
B<*Ks subs)qu)nt Busin)ss +roc)ss r)vi)@ and inconsist)nci)s across SB>s )ndors)7)nt rais)d th) sco+) had cr)at)d +rob,)7s 4or MI:. 3h) )nt)r+ris) @as stru--,ino4 th) +roC)ct @ith conso,idat)d in4or7ation 4ro7 th) SB> n))ds, )s+)cia,,y in th) ,)v), to th) cor+orat) ,)v),. 4inancia, ar)a. :n) o4 th) -oa,s o4 th) 6S @as to standardi8) 7any o4 th)s) busin)ss Fith su++ort +roc)ss)s. 3o assist in busin)ss 4ro7 B<*, th) +roc)ss 7a++in- and d)si-n, cor+orat) <A: MI: )n-a-)d t@o 7aCor b)ca7) th) consu,tin- -rou+s, 6rnst ; )nt)r+ris) Qoun- and D),oitt). At th) s+onsor 4or th) ti7), th)r) @as ,i7it)d 6S initiativ), )(+)rtis) in N)@ E)a,and to S+irit. Aundinassist MI:. 3h) d)cision to 4or th) +roC)ct @as a++rov)d in )n-a-) t@o 7aCor consu,tanci)s @as bas)d on th) ,at) !""1. 3h) n))d to -ain as 7uch )(+)rtis) <A: o4 th) ori-inatin- SB> as quick,y as +ossib,) and to )va,uat) th) ski,, s)ts and @as 7ad) th) +roC)ct dir)ctor, )(+)ri)nc) bas) o4 th)s) t@o r)+ortin- to th) co7+)tin- 4ir7s. >n4ortunat),y, in th) 7id5!""$s n)ith)r 4ir7 cor+orat) <A:. o44)r)d substantia, )(+)ri)nc) A s7a,, cor) in 6S i7+,)7)ntation and had
to r),y on oth)r consu,tants in an att)7+t i7+ort)d to )(+and th)ir in4,u)nc) and )(+)rtis) 4ro7 incr)as) th)ir )(+)ri)nc) bas). Sin-a+or) and MI: 4ound its),4 +ayinth) >nit)d Stat)s. )(c)ssiv),y 4or s)rvic)s it +)rc)iv)d as havin- ,i7it)d 3h) )(+)ri)nc) va,u). As it 7ov)d into th) +rov)d 7id56S +has), MI: cha,,)n-in-, @ith r))va,uat)d its strat)-y 4or con4,ict arisinuti,i8in- )(t)rna, )(+)rtis). b)t@))n th) t@o co7+)tin$i"3E4 Phase consu,tin-rou+s. 6ach Fhi,) continuin- to 7a+ -rou+ o4 busin)ss +roc)ss)s and 7ak) consu,tants had n)c)ssary adCust7)nts 4or th) its o@n cu,tur) n)@ 6S )nviron7)nt, MI: and 7)thodo,o-y. b)-an th) con4i-uration o4 th) N)ith)r @as SAP syst)7. <on4i-uration @i,,in- to ada+t su++ort @as r)c)iv)d 4ro7 SAP, to th) oth)r and 6rnst ; Qoun-, and D),oitt). MI: @as cau-ht ?)y MI: +roC)ct +)rsonn), in th) 7idd,). At att)nd)d 7u,ti+,) SAP traininth) h)i-ht o4 s)ssions and 4ound consu,tant r)+r)s)ntativ)s 4ro7 th)ir invo,v)7)nt int)-ration +artn)rs att)ndin7or) than G$ th) sa7) trainin-. 3his )(t)rna, )(+)rts kno@,)d-) +r)ci+itat)d a @)r) @orkin- at chan-) in th) sco+) and MI:. 3h) uti,i8ation o4 )(t)rna, )(+)rtis). consu,tants As contracts )(+ir)d, th)y @)r) @ou,d )n-a-) not
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r)n)@)d. MI: 4ocus)d on id)nti4yink)y )(+)rtis) and )ith)r hirin- th) individua, or contractins+)ci4ica,,y 4or a kno@n r)sourc). 3h)y quick,y r)duc)d th) nu7b)r o4 consu,tants invo,v)d in th) +roC)ct to about s)v)n 04ro7 4iv) to nin), d)+)ndinu+on th) +roC)ct r)quir)7)nts2 . 6(t)rna, )(+)rts b)ca7) coach)s and 7)ntors, assistin- MI: sta44 in co7+,)tinn)c)ssary tasks and +rovidin-uidanc) and insi-ht as th) +roC)ct d)v),o+)d. An )(t)nsiv) 7u,tisit) )nviron7)nt, MI: us)d a +has)d a++roach to i7+,)7)ntinSAP. SB>s @)r) ind)+)nd)nt,y con4i-ur)d to 7))t th)ir s+)ci4ic n))ds. No standard con4i-uration @as i7+os)d. SB>s had consid)rab,) ,atitud) on @hich 7odu,)s to
ado+t, thou-h a,, -)n)ra,,y ado+t)d a cor) s)t o4 4inancia,, inv)ntory 7ana-)7)nt, and sa,)s ord)r 7ana-)7)nt 7odu,)s. 3h) on,y r)quir)7)nt @as th)y 7ust us) SAP and th)y 7ust su++ort cor+orat) conso,idat)d r)+ortin- r)quir)7)nts. Fh)r) busin)ss +roc)ss)s di44)r)d across SB>s, th) SB> @as r)quir)d to Custi4y its uniqu)n)ss by d)7onstratinth) busin)ss va,u) d)riv)d. I4 succ)ss4u,, th) SB> cou,d continu) th) uniqu) busin)ss +roc)ss. <han-)s to SAP @)r) 7ad) at th) SB> ,)v), to su++ort uniqu) busin)ss +roc)ss)s. 3his cr)at)d consid)rab,) di44)r)nc)s a7on- SB>s and a 7aCor su++ort cha,,)n-) as 7or) SB>s ca7) on,in). A cor) i7+,)7)ntation t)a7 @as 4or7)d to aid SB>s throu-h th) conv)rsion +roc)ss. 3h) t)a7 @as co7+os)d o4 cor+orat) S+irit sta44, )(t)rna, )(+)rts, and SB> sta44. An SB> i7+,)7)ntation r)quir)d a++ro(i7at),y ' 7onths. <or) 4inancia,s cou,d b) ,iv) in ha,4 that ti7). 6ach i7+,)7)ntation +has) r)quir)d con4i-uration, trainin-, data conv)rsion, -o5,iv), and su++ort. 3h) -r)at)st cha,,)n-)s @)r) in th) 7assiv) data conv)rsions n)c)ssary to -)t an SB> o+)rationa, in a short +)riod o4 ti7). MI: us)d a hybrid i7+,)7)ntation 7)thodo,o-y d)v),o+)d 4ro7 its )(+)ri)nc)s @ith 7u,ti+,) consu,tin- +artn)rs. It inc,ud)d a 4iv)5sta-) a++roach @ith a 4ocus on qua,ity assuranc). 6ach SB> @ou,d v)ri4y its r)adin)ss 4or conv)rsion to SAP by d)7onstratin- co7+)t)nci)s in 7or) than #$ ar)as. 6(t)rna, consu,tants +,ay)d a k)y ro,) in th) qua,ity assuranc) )44ort by )va,uatin-
th) r)adin)ss o4 th) SB>s. I4 r)adin)ss cou,d not b) d)7onstrat)d, th) conv)rsion @as d),ay)d. 3rainin- @as an int)-ra, co7+on)nt o4 th) i7+,)7)ntation 7)thodo,o-y. 3h) S+irit t)a7 +rovid)d 7ost o4 th) trainin@ith assistanc) 4ro7 SAP. 3akina train5th)5 train)r a++roach, )ach SB> id)nti4i)d k)y us)rsIcha7+ion s 4or )ach 4unctiona, ar)a. 3h)s) individua,s r)c)iv)d traininby th) S+irit t)a7 and in turn +rovid)d trainin- to th)ir SB> co,,)a-u)s @ith th) su++ort
o4 S+irit sta44. 3h) trainininc,ud)d both d)tai,)d Rho@ toS trainin- and conc)+tua, R@hyS )ducation so that us)rs @ou,d und)rstand ho@ th)ir @ork 4it into th) or-ani8ationKs strat)-y 4or an int)-rat)d syst)7. 6ar,y SB> conv)rsions @)r) und)rstandab,y rocky. As )(+)ri)nc) @as -ain)d, MI: d)v),o+)d a kno@,)d-) bas) o4 issu)s and r)so,utions. 3h) kno@,)d-) bas), 7aintain)d in Lotus Not)s, +rovid)d a k)y r)sourc) 4or subs)qu)nt conv)rsions and on-oinsu++ort. As th) +roC)ct )vo,v)d, ,at)r SB> conv)rsions @)nt s7ooth)r @ith 4)@)r sur+ris)s. <han-) @as 7ana-)d int)rna,,y by th) S+irit t)a7 and cor+orat) and SB> 7ana-)7)nt. 3rainin- @as conduct)d +rior to )ach SB> i7+,)7)ntation. Stroncor+orat) su++ort 4or th) 6S so,ution and d)7onstrat)d b)n)4its ov)rca7) ,i7it)d r)sistanc). 6(t)rna, )(+)rtis) @as us)d in a ,i7it)d ro,), +ri7ari,y in th) qua,ity assuranc) ar)a discuss)d +r)vious,y.
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con4ir7)d Post3E4 Phase As th) SAP i7+,)7)ntation +ro-r)ss)d to@ards succ)ss4u, co7+,)tion, MI: conduct)d a nu7b)r o4 ind)+)nd)nt r)vi)@s to )nsur) th) +roC)ct @as on track and d),iv)rinbusin)ss va,u). B<* +rovid)d an initia, )(t)rna, r)vi)@ in ,at) !""' @h)n th)y va,idat)d th) ov)ra,, 6S d)+,oy7)nt. Mc?ins)y r)vi)@)d th) 6S +roC)ct structur), +ro-r)ss and b)n)4its r)a,i8ation in !""&. Authur And)rs)n, ho@)v)r, conduct)d th) 7ost co7+r)h)nsiv) )(t)rna, r)vi)@. And)rs)n conduct)d a b)st +ractic)s r)vi)@ o4 th) 4inancia, 4unctions initia,,y in !""1, +r)56S. 3h)y th)n conduct)d a 4o,,o@5u+ r)vi)@ in /$$$, +ost56S. 3h)ir ass)ss7)nt con4ir7)d th) busin)ss va,u) o4 th) 6S so,ution at MI:. 3h) 4o,,o@inr)su,ts @)r)
1 Sa,)sI+ro4itabi,ity 2 3
b)n)4its throu-h 7ar-in i7+rov)7)nts Production savin-s throu-h i7+rov)d yi),dI,)ss scra+ Purchasinsavin-s throu-h conso,idation, +ricin-, and +roc)ss )44ici)ncy 6nd5o457onth c,os) r)duc)d 4ro7 !1 to # days H)ad5count r)ductions at SB> and cor+orat) ,)v),s
4 5
4u''ar( MI: uti,i8)d )(t)rna, )(+)rtis) )(t)nsiv),y throu-hout th)ir 6S +roC)ct. At )v)ry +has) th)y )n-a-)d on) or 7or) )(t)rna, r)sourc)s. 3hou-h not a,@ays a +)r4)ct r),ationshi+, MI: -ain)d substantia, b)n)4its 4ro7 th) us) o4 )(t)rna, )(+)rtis). As )ar,y ado+t)rs o4 6S in Austra,asia, MI: +ion))r)d 7any o4 th) 7)thods r)quir)d 4or succ)ss4u, i7+,)7)ntation. 3h)ir consu,tin- +artn)rs @)r) trans4)rrin- )(+)rtis) into N)@ E)a,and 4ro7 oth)r ar)as o4 th) -,ob) and ,)arnin- a,on- @ith MI: as th) i7+,)7)ntation +ro-r)ss)d. MI: in turn ,)arn)d ho@ to )44)ctiv),y )n-a-) )(t)rna, )(+)rts durinth) i7+,)7)ntation. L)ssons ,)arn)d 4ro7 th) MI: )(+)ri)nc) inc,ud) 1 Strat)-ic consu,tindurin- th) +r)56S +has) @as h),+4u, in d)4inin+roC)ct sco+) and +ro7otincor+orat) acc)+tanc) o4 th) 6S so,ution. 2 >s) o4 7u,ti+,)
co ns u,ti n-ro u+ s dur in)ar ,y an d 7i d5 6S +h as )s ca us )d co n4,i ct, +ro ,i4) rati on o4 co ns u,t ant s, an d ,i7 it) d va, u) ad d) d. Ao cu
s)d us) o4 )(t)rna, )(+)rtis) durin7id56S +has) add)d substantia, va,u) to th) +roC)ct.
B)n)4its va,idation by )(t)rna, )(+)rts durin+ost56S +has) con4ir7)d +roC)ct r)turns and +rovid)s basis 4or 4utur) syst)7s )nhanc)7)nts.
CONCLUSIONS
3his +a+)r has discuss)d th) issu)s associat)d @ith th) us) o4 )(t)rna, )(+)rtis), i.). consu,tants, in th) i7+,)7)ntation o4 )nt)r+ris) syst)7s. It +rovid)d a basis 4or th) i7+ortanc) and )(t)nt o4 th) us) o4 )(t)rna, )(+)rtis) in th) 7ark)t. =irtua,,y a,, or-ani8ations i7+,)7)ntin- an 6S us) )(t)rna, )(+)rts to so7) d)-r)). Studi)s su--)st that th) costs o4 consu,tants ar) t@o to 4iv) ti7)s th) cost o4 th) ,ic)ns) 4))s 4or th) 6S so4t@ar) 0Markus ; 3anis, /$$$2 and @i,, )(c))d T!$$ bi,,ion 0>ST2 by /$$#. 3h) +a+)r th)n )(+,or)s strat)-i)s 4or )n-a-in)(t)rna, )(+)rts. Aour a,t)rnativ) )n-a-)7)nt strat)-i)s ar) +r)s)nt)d and discuss)d. A,t)rnativ) @ays o4 uti,i8in-
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)(t)rna, )(+)rts ar) id)nti4i)d and r)vi)@)d. 3h) 6S +roC)ct is brok)n into 4our +has)s and th) us) o4 )(t)rna, )(+)rtis) is discuss)d 4or )ach +has). A 7od), 4or th) )44)ctiv) us) o4 )(t)rna, )(+)rtis) is +ro+os)d.
und)rstand this critica, ),)7)nt in )nt)r+ris) syst)7s i7+,)7)ntation.
REFERENCES
Abra7son, *. 0!""&2. 3h)ir +ain, your -ain Mana-inconsu,tants. CI! Enterprise Maga%ine, :ctob)r !1. Avita,, M. and =and)nbosh, B. 0!"""2. SAP i7+,)7)ntation at M)ta,ica An or-ani8ationa, dra7a. Proceedings, International Conference on Information Systems JICISK, '1!5'1#, <har,ott), N<. 3h) +a+)r Ba,d@in, P. conc,ud)s 0/$$!2. ?no@ th) @ith a N)@ si( d)ad,y sins o4 E)a,and 6RP. cas) Tech"epu)lic, May )(+)ri)nc) !'. o4 a 7aCor htt+ II@@@.t)chr) industria, +ub,ic.co7. or-ani8ationK Bro@n, <. =. and =)ss)y, I. s 6S 0!"""2. 6RP i7+,)7)ntation i7+,)7)ntat a++roach)s 3o@ards a ion. 3h) contin-)ncy 4ra7)@ork. cas) is Proceedings, International 7a++)d into Conference on Information th) Systems JICISK, G#5G'. +ro+os)d <har,ott), N<. 7od), and Dav)n+ort, 3. H. ,)ssons 0/$$$2. Mission ,)arn)d 4ro7 Critical' "eali%ing th) cas) ar) the Promise of +r)s)nt)d. Enterprise Systems.Boston, 3h) us) o4 MA Harvard )(t)rna, Busin)ss Schoo, )(+)rtis) in Pr)ss. )nt)r+ris) Dav)n+ort, 3. H. syst)7s is 0!""&2. Puttin- th) )ss)ntia, 4or )nt)r+ris) into +roC)ct succ)ss. )nt)r+ris) syst)7s. :n,y in &arvard Business )44)ctiv),y "evie-, Ju,y5Au-ust, uti,i8in- this !/!5!#!. )(+)rtis) can Hirt, S. *. and S@anson, 6. B. or-ani8ations 0!"""2. Ado+tin- SAP at r)a,i8) th)ir 6S S)i7)ns Po@)r <or+oration. -oa,s and obC)ctiv)s. Mor) Journal of Information Technology, 0!G2, /G#5/1!. @ork 7ust b) don) in ord)r to Ja7)s, D. and Fo,4, M. L. 0/$$$2. A s)cond @ind 4or 6RP. 7or) 4u,,y Mc<insey 5uarterly, 0/2, !$$5
!$%. Mc <ar ty, <. M. 0!" ""2 . Ho @ to cho os) and 6RP i7+ ,)7 )nt atio n con su,t ant. Tec h"e pu) lic, Ju,y &. htt+ II @@
@.t)chr)+ub,ic.co 7. Marchak, S. 0/$$$2. Si( ,)v),s o4 ),)ctronic co77)rc). InfoTech "esearch (roup. htt+ II@@@.dotco7advi sor.co7. Markus, M. L. and 3anis, <. 0/$$$2. 3h) )nt)r+ris) syst)7s )(+)ri)nc)BAro7 ado+tion to succ)ss. In E7ud, R. F. 06d.2, 4raming the omains of IT "esearch' (limpsing the 4uture Through the Past, !%#5/$%, <incinnati, :H Pinna4,)( 6ducationa, R)sourc)s, Inc. Ross, J. 0!"""2. Do@ <ornin<or+oration Busin)ss +roc)ss and in4or7ation t)chno,o-y. Journal of Information Technology, 0!G2, /1#5/''. 3hon-, J. Q. L., Qa+, <. and Ra7an, ?. S. 0!""G2. 6n-a-)7)nt o4 )(t)rna, )(+)rts in in4or7ation syst)7s i7+,)7)ntation. Journal of Management Information Systems, !!0/2, /$"5/#!. Fa-,), P. 0!""&2. 3h) cas) 4or 6RP syst)7s. Mc<insey 5uarterly, 0/2, !#$5!#&.
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<n"e0
&
absor+tiv) ca+acity "" actor !#G ad7inistrativ) syst)7s /" advanc)d +,annin- and sch)du,in- 0APS2 !/ a++,ication s)rvic) +rovision 0ASP2 !"G a++,ications s)rvic) +rovid)r !1G arti4act )va,uation %& ass)ss7)nt !G1 Austra,ian stock )(chan-) !G' a@ar)n)ss 7od), !#1
/
Baan !&/ boundary s+annin- "" BSP 0busin)ss syst)7s +,annin-2 !G%, !G" busin)ss int),,i-)nc) 0BI2 !/ busin)ss kno@,)d-) !/# busin)ss +roc)ss r))n-in))rin- 0BPR2 1$, ""
cas) studi)s '#
chan-) 7ana-)7)nt !%G chi)4 kno@,)d-) o44ic)r !$$
<IS 0ca7+us in4or7ation syst)72 /1 c,i)ntI4at s)rv)r 0<IAS2 archit)ctur) & c,i)ntIs)rv)r 0<IS2 t)chno,o-y & co,,aborativ) +roc)ss !#G co,,aborativ) r)sourc) !#G co,,aborativ) s)7antic conc)+ts !#% co,,aborativ) task !#G co7+any5 s+)ci4ic kno@,)d-) !/G co7+)tinva,u)s 7od), %& cont)nt ana,ysis G' <S<F 0co7+ut)r su++ort)d coo+)rativ) @ork2 !## <SA 0critica, succ)ss 4actor2 !G%, !G& custo7)r int)raction !1% custo7)r r),ations 7ana-)7)nt !1G custo7)r r),ationshi+ 7ana-)7)nt 0<RM2 !/ custo7)r5c)ntricity !1#
data acc)ss G& databas) 7ana-)7)nt syst)7 0DBMS2 %
246-
d)cision 7akin- !1$, !%# d)cision57akin- crit)ria !%#
E
)5busin)ss ca+abi,iti)s !/ )5co77)rc) /!# )ar,y 6S //G )cono7ic th)ory GG )44ort !%' ),)ctronic data int)rchan-) G& ),)ctronic 4unds trans4)r G& )7+irica, study !&/ )nt)r+ris) a++,ication syst)7s !!% )nt)r+ris) r)sourc) +,annin- 06RP2 G#, !!%, !G1, !%/, !&", /!! )nt)r+ris) r)sourc) +,annin- 06RP2 syst)7s /, G#, "% )nt)r+ris) syst)7 06S2 !!', !!%, !/', !/%, /!! )nt)r+ris) syst)7 ,i4) cyc,) !!" )nt)r+ris)5@id) syst)7s !!% 6RP GG 6RP ado+tion 1G, !$# 6RP ado+tion in th) Phi,i++in)s '/ 6RP co7+act +acka-) !"G 6RP i7+,)7)ntation // 6RP Custi4ication G% 6RP 7ark)t !1!, !"/ 6RP outsourcin- !"G 6RP +acka-) !"G
6RP +roc)ss 7a+ !#1 6RP s),)ction /$/
6RP syst)7s !, 1#, %&, !"/ 6RP tr)nds !"! 6S consu,tant /!G, /!1 6S consu,tin- 4ir7 /!1 6S i7+,)7)ntation +roC)ct /!G 6S i7+,)7)ntation r)vi)@ /!' 6S so4t@ar) +roduct /!1 6S so4t@ar) v)ndor /!1 6S so,ution !/!, /!1 )v)nt5driv)n +roc)ss chains 06P<s2 !%%
4,)(ibi,ity G" 4unctiona,ity !G'
G
-ra+hica, us)r int)r4ac) 0*>I2 &
247-
<
in4or7ation syst)7s // in4or7ation t)chno,o-y 0I32 G#, "" int)-rat)d ca7+us #! int)-rat)d so4t@ar) +acka-)s G% int)-rat)d syst)7 #! int)-ration 1! Int)rn)t G' Int)rn)t acc)ssibi,ity 1$ int)r+r)tiv) +)rs+)ctiv) /# inv)ntory contro, +acka-)s 0I<2 G inv)st7)nt G1 I3 in4rastructur) !$/
J
J.D. 6d@ards !&/ JAD 0Coint a++,ication d)v),o+7)nt2 !G%
k)y busin)ss +roc)ss)s 0?BPs2 /$' ?M strat)-y !$$ ?M syst)7 !$$ kno@,)d-) )(+,oitation !$G kno@,)d-) ,i4) cyc,) !!", !/% kno@,)d-) 7ana-)7)nt 0?M2 "%, !!', !//, !1G kno@,)d-) trans4)r !/%
,)-acy syst)7s /' ,oca, ar)a n)t@orks /"
7aCor industria, or-ani8ation 0MI:2 //! 7at)ria, r)quir)7)nts +,annin- 0MRP2 G 7id56S /!& 7yth o4 int)-ration /1 7yths !"
Navision !&/
248-
O
o+)n codin- /1 o+)ration )n-in))rindivision !$# :rac,) !&/ ord)r 7ana-)7)nt !1% or-ani8ationa, cu,tur) '# or-ani8ationa, )44)ctiv)n)ss %& or-ani8ationa, 4actors '/ ori-ina, )qui+7)nt 7anu4acturin- 0:6M2
P
+artici+ativ) )va,uation strat)-y !%G P)o+,)so4t !&/ +)rsona, co7+ut)rs 0P<s2 G& +)rsona, co7+utin- /" Phi,i++in) busin)ss )nt)r+ris)s '/ +ost56S //$ +roc)ss a@ar)n)ss !#%, !G$ +roc)ss 7od), !%#
+roc)ss r)sourc) !#G, !#& +rocur)7)nt so,utions !1G
+roduct data 7ana-)7)nt 0PDM2 !$# +roduct kno@,)d-) !/G +roC)ct 7ana-)7)nt kno@,)d-) !/G
qu)stionab,) data int)-rity 1!
D R
rationa,ity !%% rationa,i8)d 7yths /! r)a, o+tions !&# r)dundant data )ntry 1! r)quir)d ,)v), o4 a@ar)n)ss !#' r)sourc)5bas)d vi)@ 0RB=2 '/ ro,) !#G
sa,)s 4orc) auto7ation 0SAA2 !/ SAP !%%

shado@ syst)7s 1! si7+,i4i)d 7aint)nanc) 1$
s7a,, to 7)diu7 )nt)r+ris)s 0SM6s2 !, !GG, !%#, !&" strat)-ic choic) "" strat)-ic )nt)r+ris) 7ana-)7)nt !1# str)n-ths5@)akn)ss)s5 o++ortuniti)s5thr)ats 0SF:32 4ra7)@ork !GG, !"1 structur)d qu)ry ,an-ua-) 0SLL2 & su++,y chain 7ana-)7)nt 0S<M2 !/, !1G
249-
T
task art)4acts !G$ task d)+)nd)ncy !#" t)chnica, kno@,)d-) !/G t)7+,at) #$ tota, qua,ity 7ana-)7)nt 03LM2 ""
C
univ)rsiti)s G1 unn)c)ssary r)strictions G& usabi,ity G"
G
v)ndors !G'
250-
List of +igures
C@a"$!r I: T@! E3% /$#%& %( ERP Sy'$!m': A H#'$%r#ca P!r'"!c$#3!
Ai-ur) ! 6RP syst)7s conc)+t Ai-ur) / 6RP )vo,ution Ai-ur) # 3hr))5ti)r 6RP syst)7s archit)ctur) Ai-ur) G F)b5)nab,)d )(t)nd)d 6RP syst)7
C@a"$!r II: T@! My$@ %( I&$!2ra$#%&: A Ca'! S$/+y %( a& ERP Im" !m!&$a$#%&
Ai-ur) ! 6RP syst)7 i7+,)7)ntation as 7yth Ai-ur) / Structur) o4 <IS +roC)ct
C@a"$!r III: ERP Sy'$!m' #& U&#3!r'#$#!': Ra$#%&a ! A+3a&c!+ (%r T@!#r A+%"$#%&
Ai-ur) ! 6RP ado+tion 7od), )7bracin- this r)vis)d th)ory
C@a"$!r V: T@! Im"ac$ %( E&$!r"r#'! R!'%/rc! P a&&#&2 Sy'$!m' %& Or2a&#Aa$#%&a E((!c$#3!&!'': A& Ar$#(ac$ E3a /a$#%&
Ai-ur) ! <o7+arison o4 traditiona, in4or7ation syst)7 d)v),o+7)nt 7)thods and th) +roc)ss o4 s),)ctin- and i7+,)7)ntin- 6RP syst)7s Ai-ur) / <o7+)tinva,u)s 7od), 0Luinn ; Rohrbau-h, !"&!, !"&#N Rohrbau-h, !"&!2 Ai-ur) # Ma++in- o4 6RP syst)7 ca+abi,iti)s into <=M
C@a"$!r VII: -&%6 !+2! Ma&a2!m!&$ (%r E&$!r"r#'! Sy'$!m'BF#r'$ Em"#r#ca I&'#2@$'
Ai-ur) ! A 4ra7)@ork to structur) 6S5r),at)d kno@,)d-) Ai-ur) / 3h) +ro+os)d kno@,)d-) ,i4) cyc,) Ai-ur) # Id)nti4i)d kno@,)d-) ty+)s 4or 6S 7ana-)7)nt Ai-ur) G I7+ortanc) o4 activiti)s throu-hout th) kno@,)d-) ,i4) cyc,) Ai-ur) 1 I7+ortanc) o4 kno@,)d-) 7ana-)7)nt in th) sta-)s o4 th) 6S ,i4) cyc,) Ai-ur) ' :r-ani8ationa, +)r4or7anc) vs. i7+ortanc) o4 kno@,)d-) Ai-ur) % I7+ortanc) o4 di44)r)nt ty+)s o4 kno@,)d-)
-251TEAM FLY
6RP syst)7 and ,inka-)s
C@a"$! r VIII: Im" ! m!&$a$ #%& Ma&a2 !m!&$ %( a& E4 C%mm !rc!4 E&a0 ! + E&$!r" r#'! I&(%rm a$#%& Sy'$! m: A Ca'! S$/+y a$ T!Ca' I&'$r/ m!&$'
Ai-ur) ! 3i7) ,in) o4 3IKs 6RP i7+,)7)ntation Ai-ur) / A conc)+tua, 7od), o4 th)
C@a"$!r I,: A& O0D!c$4 Or#!&$!+ A6ar!&!''4 *a'!+ M!$@%+% %2 y (%r ERP
Ai-ur) ! An )(a7+,) o4 an 6RP +roc)ss 7a+ @ith t@o ro,)s, si( si7+,) tasks, and on) co,,aborativ) task Ai-ur) / 6(a7+,) o4 co,,aborativ) and non5 co,,aborativ) +roc)ss)s
C@a"$!r ,: A Fram!6%rE (%r A''!''#&2 ERP Sy'$!m'F F/&c$#%&a #$y (%r $@! SME' #& A/'$ra #a
Ai-ur) ! 3h) conc)+tua, 7od), o4 th) study
C@a"$!r ,II: A Fram!6%rE (%r $@! S! !c$#%& %( ERP PacEa2!' (%r Sma $% M!+#/m
a&+ Lar2! Or2a&#Aa$#%&'

Ai-ur) ! A -)n)ra, +ur+os) d)cision 7od), Ai-ur) / An 6RP d)cision5
7akin- +roc)ss 7od),
C@a"$!r ,III: A S$/+y %( $@! ERP S! !c$#%& Pr%c!'' #& N!6 Z!a a&+
Ai-ur) ! Di44)r)nt 6RP strat)-i)s 4or SM6 and ,ar-) or-ani8ations Ai-ur) / Stak)ho,d)rs invo,v)d in th) s),)ction and i7+,)7)ntation o4 6RP
Ai-ur) # A -)n)ric 7od), o4 th) 6RP s),)ction +roc)ss in N)@ E)a,and 0Shakir, /$$$2
C@a"$!r ,IV: U'#&2 C%'$ *!&!(#$ A&a y'#' (%r E&$!r"r#'! R!'%/rc! P a&&#&2 Pr%D!c$ E3a /a$#%&: A Ca'! (%r I&c /+#&2 I&$a&2#0 !'
Ai-ur) ! Fhat ar) intan-ib,)sZ Ai-ur) / 3h) quanti4ication t)chniqu) Rbrid-inth) -a+S Ai-ur) # Sa7+,) it)7s 4or custo7)r satis4action surv)y
-252-
E&$!r"r#'! Sy'$!m': C@a"$!r ,V: A N!6 Z!a a&+ Ca'! E((!c$#3! U'! %( EC$!r&a EC"!r$#'! #& EC"!r#!&c!
Ai-ur) ! Su77ary o4 6RP inv)st7)nt Ai-ur) / >s) o4 )(t)rna, )(+)rtis) 7od),
2 5 3-
ERP Sy'$!m'
List of Tables
#& U&#3!r'#$#!': Ra$#%&a !
C@a"$!r I: A+3a&c!+ (%r T@! E3% /$#%& %( T@!#r ERP A+%"$#%& Sy'$!m': A 3ab,) ! A r),ativ) cost H#'$%r#ca )(a7+,) P!r'"!c$#3! C@a"$!r IV:
3ab,) ! Advanta-)s o4 6RP syst)7s 3ab,) / Disadvanta-)s o4 6RP syst)7s 3ab,) # So7) o4 th) 7odu,)s o4 SAPKs RI#
A''!''#&2 E&$!r"r#'! R!'%/rc! P a&&#&2 GERPH A+%"$#%& #& $@! P@# #""#&!'
3ab,) ! 6RP )(+)ri)nc) Aairchi,d, ISLA<:M, and =i)@s Aairchi,d, ISLA<:M, <PP<, and 3ab,) =isionI7ission and or-ani8ationa, va,u)s s),)ct)d co7+ani)s 3ab,) G Push and +u,, in 6RP 4actors ado+tion o4 St)r,in# 3obacco on 6RP <PP< St)r,ino4
C@a"$!r II: T@! My$@ %( I&$!2ra$ #%&: A Ca'! S$/+y %( a& ERP Im" !m! &$a$#%&
3ab,) ! Surv)y r)s+ons)s to o+)n5)nd)d qu)stion
3obacco 3ab,) /
C@a "$!r III:
C@a"$!r ,: A
Fram !6%r E (%r A''!' '#&2 ERP Sy'$! m'F F/&c$ #%&a # $y (%r $@! SME'
#& A/'$ra #a
3ab,) ! 3h) SF:3 o4 SAP 3ab,) / 3h) SF:3 o4 Baan 3ab,) # 3h) SF:3 o4 J.D. 6d@ards 3ab,) G 3h) SF:3 o4 P)o+,)So4t 3ab,) 1 3h) SF:3 o4 :rac,)
C@a"$!r ,I: S! !c$#&2 a&+ Im" !m!&$#&2 a& ERP Sy'$!m a$ A #m!&$%' P!r/
3ab,) ! R)su,ts o4 th) 4irst )va,uation o4 an 6RP syst)7 3ab,) / I7+,)7)ntation 7)thodo,o-y 4or an 6RP syst)7
-254-
C@a"$!r ,III: A S$/+y %( $@! ERP S! !c$#%& Pr%c!'' #& N!6 Z!a a&+
3ab,) ! Su77ary o4 surv)y r)su,ts o4 to+ !$$ co7+ani)s in N)@ E)a,and and th)ir int)r)st in 6RP i7+,)7)ntati ons 0Mi,,s, !"""N F),,s, !"""2 3 a b , ) /
) @ o 4 6 R P i n d u s t r y i n N ) @ E ) a , a n d c o n t ) ( t 3 a b
A r ) v
, ) #
3h) v)ndorKs or-ani8ation 3ab,) G5b A SF:3 ana,ysis o4 th) di44)r)nt 6RP syst)7s o44)r)d by th) to+ 4iv) v)ndors 3h) 6RP
3 h ) ) v o , u t i o n o 4 6 R P s y s t ) 7 s 3ab,) G5a A SF:3 ana,ysis o4 th) di44)r)nt 6RP syst)7s o44)r)d by th) to+ 1 v)ndors
+roduct 3ab,) G5c A SF:3 ana,ysis o4 th) di44)r)nt 6RP syst)7s o44)r)d by th) to+ 4iv) v)ndors N)@ 6RP +roduct o44)rin-s 3ab,) G5d A SF:3 ana,ysis o4 th) di44)r)nt 6RP syst)7s S)rvic)s, +artn)rshi+s and co77unity invo,v)7)nt 3ab,) G5) A SF:3 ana,ysis o4 th) di44)r)nt 6RP syst)7s o44)r)d by th) to+ 4iv) v)ndors 3ab,) 1 A su7ary o4 th) tasks o4 int)rna, stak)ho,d)rs invo,v)d in th) s),)ction o4 6RP syst)7s
C@a"$!r ,IV: U'#&2 C%'$ *!&!(#$ A&a y'#' (%r E&$!r"r#'! R!'%/rc! P a&&#&2 Pr%D!c$ E3a /a$#%&: A Ca'! (%r I&c /+#&2 I&$a&2#0 !'
3ab,) ! <ost B)n)4it Ana,ysis 03an-ib,)s :n,y2 NP=0T 7i,,ions2IIRR 3ab,) / <ost B)n)4it Ana,ysis 03an-ib,)s and Intan-ib,)s2 NP=0T 7i,,ions2I IRR
%( EC$!r&a EC"!r$#'! #& E&$!r"r#'! Sy'$!m': A N!6 Z!a a&+ Ca'! EC"!r#!&c!
3ab,) ! Su77ary o4 6S i7+,)7)ntation charact)ristics 3ab,) / A,t)rnativ)s to )n-a-in- )(t)rna, )(+)rts 3ab,) # MaCor industria, or-ani8ation 3ab,) G MI: us) o4 )(t)rna, )(+)rtis)
C@a" $!r ,V: E((!c$ #3! U'!
-255-

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Resource PlanningGlobal Challenges

Enterprise Resource Opportunities & Challenges by

Liaquat Hossain, Jon David Patrick and M.A. Rashid ISBN

t)(t o44)rs a +r)s)nt5day ana,ysis o4 6RP syst)7s,

6nt)r+ris) R)sourc) P,annin-9*,oba, :++ortuniti)s ; <ha,,)n-)s Pr)4ac) <ha+t)r I <ha+t)r II

<ha+t)r III <ha+t)r I= <ha+t)r = <ha+t)r =I <ha+t)r =II I7+,)7)nt

o4 Int)-ration A <as) Study o4 an 6RP I7+,)7)ntation

36RP Syst)7s in >niv)rsiti)s Rationa,)

4Ass)ssin6nt)r+ris) R)sourc) P,annin- 06RP2 Ado+tion in

?no@,)d-)Insi-hts Mana-)7)nt 4or 6nt)r+ris) Syst)7sBAirst 67+irica,

List o4 Ai-ur)s List o4 3ab,)s

Enterprise Resource PlanningGlobal Opportunities & Challenges

Enterpris 3)chno,o-y e P u Resource b Planning ,i Global s h Opportu ) d nities & i Challeng n es t

Print)d at Int)-rat)d Book

Enterprise Resource PlanningGlobal Opportunities & Challenges

Enterprise Resource PlanningGlobal Opportunities & Challenges

Enterprise Resource PlanningGlobal Opportunities & Challenges

this subC)ct in Courna,s inc,udin-

Enterprise Resource PlanningGlobal Opportunities & Challenges

Enterprise Resource PlanningGlobal Opportunities & Challenges

Enterprise Resource PlanningGlobal Opportunities & Challenges

Enterprise Resource PlanningGlobal Opportunities & Challenges

Enterprise Resource PlanningGlobal Opportunities & Challenges

Enterprise Resource PlanningGlobal Opportunities & Challenges

Enterprise Resource PlanningGlobal Opportunities & Challenges

Enterprise Resource PlanningGlobal Opportunities & Challenges

Enterprise Resource PlanningGlobal Opportunities & Challenges

Enterprise Resource PlanningGlobal Opportunities & Challenges

Enterprise Resource PlanningGlobal Opportunities & Challenges

ERP SYSTEMS DEFINED

Enterprise Resource PlanningGlobal Opportunities & Challenges

+igure ;: 6RP syst)7s conc)+t

EVOLUTION OF ERP SYSTEMS

Enterprise Resource PlanningGlobal Opportunities & Challenges

+igure 9: 6RP )vo,ution

ERP SYSTEMS AND ORGANIZATIONS

Enterprise Resource PlanningGlobal Opportunities & Challenges

Table ;: &"!antages of ERP s(ste's -hat benefit

A)atur)s and co7+,)(ity

Sca,abi,ity and -,oba, outr)ach

Enterprise Resource PlanningGlobal Opportunities & Challenges

b)st busin)ss +ractic)s

8 3h)y ar) or soon th)y @i,,

1 Accountin- 7ana-)7)nt 2 Ainancia, 7ana-)7)nt 3 Manu4acturin7ana-)7)nt

7 3h) 7odu,)s 5 3rans+ortation

Enterprise Resource PlanningGlobal Opportunities & Challenges

Enterprise Resource PlanningGlobal Opportunities & Challenges

1 Presentation La(er: *ra+hica, us)r int)r4ac) 0*>I2 or bro@s)r 4or data

2 &pplication La(er: Busin)ss ru,)s, 4unctions, ,o-ic, and +ro-ra7s actin- on

COMMERCIAL ERP SYSTEMS

Enterprise Resource PlanningGlobal Opportunities & Challenges

Enterprise Resource PlanningGlobal Opportunities & Challenges

Enterprise Resource PlanningGlobal Opportunities & Challenges

Enterprise Resource PlanningGlobal Opportunities & Challenges

that int)-rat)s 6RP, <RM and oth)r 7ana-)7)nt so4t@ar).

SUMMARY AND THE FUTURE

Enterprise Resource PlanningGlobal Opportunities & Challenges

Enterprise Resource PlanningGlobal Opportunities & Challenges

Enterprise Resource PlanningGlobal Opportunities & Challenges

INFORMATION SYSTEMS FIT AND RATIONAL CHOICE

Enterprise Resource PlanningGlobal Opportunities & Challenges

Enterprise Resource PlanningGlobal Opportunities & Challenges

MYTHS AND STORIES

1 Presentation La(er: ra+hica, us)r int)r4ac) 0>I2 or bro@s)r 4or data