A Study on the Effect of Enterprise Resource Planning (ERP) on People of an Organization

Abstract

The ultimate objective of any organizational initiative to install ERP system is to reveal some advantage, whether it is associated with cost savings, improved efficiencies, or better decision-making. These systems can in the long run save millions of dollars, improve quality of information, and increase workers’ productivity by reducing the amount of time to do a job. ERP systems can virtually eliminate the redundancies that occur from outdated and disparate systems that may be present in each department of an organization. This paper highlights the effect of ERP systems on the people of an organization. The results indicated that employees, customers and suppliers were benefitted due to installation of ERP systems while external agencies were not affected due to ERP systems.

  • Page Number : 73-84

  • Keywords
    Employees, Customers, Suppliers, External Agencies etc.

  • DOI Number
    https://doi.org/10.15415/jtmge.2016.71004

  • Authors

    • Bharti MotwaniPrestige Institute of Management and Research, Indore (MP)
    • R K SharmaPrestige Institute of Management and Research, Indore (MP)

References

  • Akkermans, H.A., Bogerd, P., Yucesan, E. and Wassenhove Van, L.N. (2003). The Impact of ERP on Supply Chain Management: Exploratory Findings from a European Delphi Study. European Journal of Operational Research, 146:2, pp. 284-301.
  • Allen, D., Kern, T. and Havenhand, M. (2002). ERP Critical Success Factors: an Exploration of the Contextual Factors in Public Sector Institutions. Proceedings of the 35th Annual Hawaii International Conference on System Sciences, Island of Hawaii.
  • Altman (1991). Randomisation. British Medical Journal, 317, pp. 1309-1312.
  • Armittage, P. and Berry, G. (1994). Statistical Methods in Medical Research, 3rd Edition, Blackwell Scientific Publications, Oxford.
  • R.D. and Kauffman, R.J. (1988). Strategic Contributions of Information Technology: An Empirical Study of ATM Networks. Proceedings of the Ninth International Conference on Information Systems, Minneapolis, Minnesota; pp. 141–50.
  • Barua, A., Kriebel, C.H. and Mukhopadhyay, T. (1995). Information Technologies and Business Value: An Analytic and Empirical Investigation. Information Systems Research, 6:1, pp. 3–23. http://dx.doi.org/10.1287/isre.6.1.3.
  • Blick, G., Gulledge, T. and Sommer, R. (2000). Defining Business Process Requirements for Large-Scale Public Sector ERP Implementations: A Case Study. Proceedings of the European Conference on Information Systems, Wirtschafts University, Vienna.
  • Boudreau, M.C. (2003). Learning to Use ERP Technology: A Causal Model. 36th Hawaii International Conference on System Sciences. IEEE Computer Society.
  • Bradford, M. and Florin, J. (2003). Examining the Role of Innovation Diffusion Factors on the Implementation Success of Enterprise Resource Planning Systems. International Journal of Accounting Information Systems, 4:3, pp. 205–225. http://dx.doi.org/10.1016/S1467-0895(03)00026-5.
  • Bradley, J. (2008). Management Based Critical Success Factors in the Implementation of Enterprise Resource Planning Systems. International Journal of Accounting Information Systems, 9:3, pp. 175–200. http://dx.doi.org/10.1016/j.accinf.2008.04.001.
  • Brakely, H.H. (1999). What Makes ERP Effective? Manufacturing Systems, 17:3, pp. 120.
  • Burton, G. (1999). ERP in the New Millennium. The Performance Advantage, 9:6.
  • Butler, B. S., and Gray P.H. (2006). Reliability, Mindfulness, and Information Systems. Management Information Systems Quarterly, 30:2, pp. 211.
  • Cash, I.J. and Konsynski, B. (1985). IS Redraws Competitive Boundaries. Harvard Business Review, 64:2, pp. 134–42.
  • Chand, D., Hachey, G., Hunton, J., Owhoso, V. and Vasudevan S. (2005). A Balanced Scorecard-Based Framework for Assessing The Strategic Impacts of ERP Systems. Computers in Industry, 56:6, pp. 558–572.
  • Chaterji, N. (1999). ERP: Imperatives for Success, Mcgraw-Hill, New York, NY.
  • Chou, S.W. and Chang, Y.C. (2008). The Implementation Factors That Influence The ERP (Enterprise Resource Planning) Benefits. Decision Support Systems, 46
  • Cotteleer, M. J. and Bendoly, E. (2006). Order Lead-Time Improvement Following Enterprise Information Technology Implementation: an Empirical Study. MIS Quarterly, 30:3, pp. 643–660.
  • Holland, C. and Light, B. (1999). A Critical Success Factors Model for ERP Implementation. IEEE Software, pp. 30-35.
  • Holsapple, C.W. and Sena, M.P. (1999). Enterprise Systems for Organizational Decision Support: A Research Agenda. Americas Conference on Information Systems, Milwaukee, WI.
  • Hopper, M. (1990). Rattling SABRE-New Ways to Compete on Information. Harvard Business Review.
  • Hsu, L.L. and Chen, M. (2004). Impacts of ERP Systems on the Integrated-Interaction Performance of Manufacturing and Marketing. Industrial Management, Data Systems, 104:1, pp. 42-55. http://dx.doi.org/10.1108/02635570410514089
  • Huang, S.M., Chang, I.C., Li, S.H. and Lin, M.T. (2004). Assessing Risk in ERP Projects: Identify and Prioritize the Factors. Industrial Management, Data Systems, 104:8, pp. 681-688. http://dx.doi.org/10.1108/02635570410561672.
  • Hunton, J.E., Lippincott, B. and Reck, J.L. (2003). Enterprise Resource Planning Systems: Comparing Firm Performance of Adopters and Non-Adopters. International Journal of Accounting Information Systems, 4, pp. 165–184. http://dx.doi.org/10.1016/S1467-0895(03)00008-3.
  • Iso (1998). Ergonomic Requirements for Office Work with Visual Display Terminals. Part 11: Guidance on Usability, International Standards Organisation, pp. 9241-11.
  • Johnston, R. and Lawrence, P.R. (1988). Beyond Vertical Integration - The Rise of the Value-Adding Partnership. Harvard Business Review, pp. 94–101.
  • Kang, D. and Santhanam, R. (2003). A Longitudinal Field Study of Training Practices in a Collaborative Application Environment. Journal of Management Information Systems, 20:3, pp. 257–281. http://dx.doi.org/10.1080/07421222.2003.11045776.
  • Karen, A. (2007). Implementing Enterprise Resource Planning (ERP) for Strategic Competitive Advantage. Issues in Information Systems, 8:2.
  • Karimi, J., Somers, T.M. and Bhattacherjee, A. (2007). The Impact of ERP Implementation on Business Process Outcomes: A Factor-Based Study. Journal of Management Information Systems, 24:1, pp. 101-134. http://dx.doi.org/10.2753/MIS0742-1222240103.
  • Karimi, J., Somers, T.M. and Gupta, Y.P. (2001). Impact of Information Technology Management Practices on Customer Service. Journal of Management Information Systems, 17:4, pp. 125–158.
  • Klaus, H., Rosemann, M. and Gable, G. (2000). What Is ERP? Information Systems Frontiers, pp. 141–157.
  • Koch, C. (2001). BPR and ERP: Realising a Vision of Process with IT. Business Process Management Journal, 7:3, pp. 258–65. http://dx.doi.org/10.1108 /14637150110392755.
  • Kumar, K. and Hillegersberg, J.V. (2000). ERP Experiences and Evolution, Association for Computing Machinery. Communications of the ACM, 43, 22.
  • Lengnick-Hall, C., Lengnick-Hall, M. and Abdinnour-Helm, S. (2004). The Role of Social and Intellectual Capital in Achieving Competitive Advantage Through Enterprise Resource Planning (ERP) Systems. Journal of Engineering and Technology Management, 21:4, pp. 307-30. http://dx.doi.org/10.1016/j.jengtecman.2004.09.005.
  • Lui, K. M. and Chan, K.C.C. (2008). Rescuing Troubled Software Projects by Team Transformation: A Case Study with an ERP Project. IEEE Transactions on Engineering Management, 55:1, pp. 171–184. http://dx.doi.org/10.1109/TEM.2007.912933.
  • Malone, T., Yates, F., and Benjamin, R. (1987). Electronic Markets and Electronic Hierarchies. Communications of the ACM, (6), pp. 485-497.
  • Markus, M. L., Tanis, C. and Fenma, P. C. (2000). Multisite ERP Implementations. Communications of the ACM, 43:4, pp. 42-46. http://dx.doi.org/10.1145/332051.332068. Markus, M.L. and Tanis, C. (1999). The Enterprise Systems Experience – from Adoption to Success, Claremont Graduate University, California.
  • Martin, M. (1998). Enterprise Resource Planning. Fortune, 137:2, pp. 149-51.
  • Mata, F. J., Fuerst, W. L., and Barney, J. B. (1995). Information Technology and Sustained Competitive Advantage: A Resource-Based Analysis. MIS Quarterly, pp. 487-504. http://dx.doi.org/10.2307/249630.
  • Matolcsy, Z. P., Booth, P. and Wieder, B. (2005). Economic Benefits of Enterprise Resource Planning Systems: Some Empirical Evidence. Accounting and Finance, 45:3, pp. 439–456. http://dx.doi.org/10.1111/j.1467-629X.2005.00149.x.
  • Mcafee, A. (2002). The Impact of Enterprise Information Technology Adoption on Operational Performance: an Empirical Investigation. Production and Operations Management, 11:1, pp. 33-53. http://dx.doi.org/10.1111/j.1937-5956.2002.tb00183.x.
  • Miranda, R. A. and Kavanagh, S. C. (2005). Achieving Government Transformation through ERP Systems. Government Finance Review, 21:3, pp. 36–42.
  • Mirani, R. and Lederer, A. (1998). An Instrument for Assessing The Organizational Benefits of IS Projects. Decision Sciences, pp. 803-838. http://dx.doi.org/10.1111/j.1540-5915.1998.tb00878.x.
  • Mitra, S. and Chaya, A.K. (1996). Analyzing Cost-Effectiveness of Organizations: The Impact of Information Technology Spending. Journal of Management Information System, 13:2, pp. 29–57. http://dx.doi.org/10.1080/07421222.1996.11518122.
  • Mukhopadhyay, T., Kekre, S.and Kalathur, S. (1995). Business Value of Information Technology: A Study of Electronic Data Interchange. MIS Quarterly, 19, 2, pp. 137–156. http://dx.doi.org/10.2307/249685.
  • Murphy, K.E. and Simon, S.J. (2002). Intangible Benefits Valuation in ERP Projects. Information Systems Journal, 12, pp. 301-320. http://dx.doi.org/10.1046 /j.1365-2575.2002.00131.x.
  • Nah, F. and Delgado, S. (2006). Critical Success Factors for ERP Implementation and Upgrade. Journal of Computer Information Systems, 46:5, pp. 99-113.
  • Nah, F., Zuckweiler, K. and Lau, J. (2003). ERP Implementation: Chief Information Officers’ Perceptions of Critical Success Factors. International Journal of Human-Computer Interaction, 16:1, pp. 5-22. http://dx.doi.org/10.1207/S15327590IJHC1601_2.
  • Park, K. and Kusiak, A. (2005). Enterprise Resource Planning (ERP) Operations Support System for Maintaining Process Integration. International Journal of Production Research, 43:19, pp. 3959-82. http://dx.doi.org/10.1080/00207540500140799.
  • Pliskin, N. and Zarotski, M. (2000). Big-Bang ERP Implementation at a Global Company. Annals of Case on Information Technology Applications and Management Organization,2, pp. 233-248.
  • Porter, M.E. and Millar, V.E. (1985). How Information Gives You Competitive Advantage. Harvard Business Review, 63:4, pp. 149-60.
  • Poston, R. and Grabski, S. (2001). Financial Impacts of Enterprise Resource Planning Implementations. International Journal of Accounting Information Systems, 2, pp. 271-294. http://dx.doi.org/10.1016/S1467-0895(01)00024-0.
  • Rabinovich, E., Dresner, M. and Evers, P. (2003). Assessing the Effect of Operational Processes and Information Systems on Inventory Performance. Journal of Operation Management, 21, pp. 63–80. http://dx.doi.org/10.1016/S0272-6963(02)00041-4.
  • Sambamurthy, V., Bharadwaj A., and Grover V. (2003). Shaping Agility Through Digital Options: Reconceptualizing The Role of Information Technology in Contemporary Firms. MIS Quarterly, 27:2, pp. 327-263.
  • Singh, A. and Wesson, J. (2009). Evaluation Criteria for Assessing the Usability of ERP Systems. Communications of ACM, 978-1-60558-643-4.
  • Strassmann, P.A. (1997). The Squandered Computer, New Canaan (CT): Information Economics Press.
  • Tsai, B-H. (2008). The Impact of Enterprise Resource Planning Systems on The Efficiency of Taiwanese Firms. IEEE Asia-Pacific Services Computing Conference.
  • Tsai, W-H., Chien, S-W, Hsu, P-Y. and Leu, J-D. (2005). Identification of Critical Failure Factors in the Implementation of Enterprise Resource Planning (ERP) System in Taiwan’s Industries. International Journal of Management and Enterprise Development, 2: 2, pp. 219-39. http://dx.doi.org/10.1504/IJMED.2005.006312.
  • Wah, L. (2000). Give ERP A Chance. Management Review, 89:3, pp. 20–24.
  • Yen D.C, Chou D.C., and Chang J. (2002). A Synergic Analysis for Web-Based Enterprise Resources Planning Systems. Computer Standards Interfaces, 24, pp. 337– 346. http://dx.doi.org/10.1016/S0920-5489(01)00105-2.
  • Zhang, Z., Lee, M.K.O., Huang, P., Zhang, L. and Huang, X. (2005). A Framework of ERP Systems Implementation Success in China: an Empirical Study. International Journal of Production Economics, 98:1, pp. 56-80. http://dx.doi.org/10.1016/j.ijpe.2004.09.004.
  • Zmud, R. W. and Apple, L. E. (1992). Measuring Technology Incorporation/ Infusion. The Journal of Product Innovation Management, 9:2, pp. 148-156. http://dx.doi.org/ 10.1016/0737-6782(92)90006-X.

  • Published Date : --