This document discusses the relationship between business process redesign, enterprise resource planning (ERP) systems, and organizational performance. It notes that while ERP systems can improve productivity through integration, they often require redesigning key business processes first to avoid failures from incompatibilities. Maintaining ERP systems after implementation and sharing knowledge about the systems can also positively impact business performance by amplifying these effects. However, organizational resistance and high costs are challenges that can be faced when aligning current processes with new ERP functionality.
If you’re looking to implement an ERP solution for your enterprise, it’s important that you know the various points of impact in advance. For more details about ERP Solutions visit: http://www.skylinecollege.com/
What is an ERP system? This guide explains what an ERP system is and how it works for your business.
Two primary concerns of any business are efficiency and profitability. This is basically what an ERP system is designed to optimize.
An ERP system allows you to perform the necessary money-making processes of your business as efficiently as possible.
To achieve a level of efficiency and profitability, a business aims to maximize it’s bottom line while keeping overhead costs low.
An ERP system provides a business with management software that fosters productivity.
The term “ERP” stands for Enterprise Resource Planning.
Basically, an ERP system is a shared database that reflects the moving parts of a company. This provides a much broader, top-down perspective of your business.
Installing an ERP system will grant you a much fuller picture of what is actually going on, in any given period of time.
Some processes in which you can gain some business insights include: sales, human resources, inventory, purchasing, finances, online ordering and many more buckets.
The main objective of an ERP system is to improve how your business resources are spent, and that means money and time. By taking a wide-view, and analyzing every aspect of your business, you will be able to decide if you are properly deploying your resources in a way that will drive maximum profitability.
During the growth of a competitive global environment, there is considerable pressure on most organisations to make their operational, tactical, and strategic process more efficient and effective.
An information system (IS) is a group of components which can increase the competitiveness and gain better information for decision making. Consequently, many organisations decide to implement IS in order to improve the effectiveness and efficiency of their organisations
Information systems have become a major function area of business administration. The systems, nowadays, plays a vital role in the e-business and e-commerce operations, enterprise collaboration and management, and strategic success of the business
Enterprise resource planning (ERP) is an enterprise-wide information system designed to coordinate all the resources, information, and activities needed to complete business processes such as order fulfillment or billing. ... Ideally, the data for the various business functions are integrated.
Fueling Innovation through InformationTechnology in SMEsb.docxhanneloremccaffery
Fueling Innovation through Information
Technology in SMEs*
by Clay Dibrell, Peter S. Davis, and Justin Craig
This paper describes a study that investigates the mediating effects of information
technology (IT) on the relationships among product and process innovations and firm
performance (measured in multiple profitability and growth rate metrics). Using
structural equation modeling on a sample of 397 small and medium-sized enterprises
(SMEs), we find evidence that (1) increases on the strategic emphasis placed on
innovation, both product and process, positively impact the prominence managers
place on IT; (2) the impact of innovation (both product and process) on performance
(both profitability and growth) is primarily indirect, felt via the mechanism of the
importance managers place on IT; and (3) an increased emphasis on IT abets
managers’ perception of their firms’ performance, as compared with that observed
among peer firms (other SMEs).
A commitment to innovation has long
been considered to be important to the
success of entrepreneurial ventures and
small firms (Fiol 1996). Research has
shown that innovation stimulates ven-
tures’ growth (e.g., Wolff and Pett
2006; Motwani et al. 1999; Hax and
Majluf 1991) and also provides a key
source of competitive advantage in the
absence of scale economies (Lewis et al.
2002). Considered from the resource-
based view of the firm (Barney 1991),
successful innovation may be dependent
on the presence of other organization-
*The authors wish to thank Don Neubaum and the anonymous reviewers for their helpful
comments and direction. Financial support was provided by the Austin Family Business
Program in the College of Business at Oregon State University.
Clay Dibrell is associate professor of strategic management in the College of Business at
Oregon State University and research fellow at Bond University.
Peter S. Davis is professor and chair of the Department of Management in the Belk College
of Business at the University of North Carolina–Charlotte.
Justin Craig is associate professor of family business and entrepreneurship at Bond
University.
Address correspondence to: Clay Dibrell, 200 Bexell Hall, College of Business, Oregon State
University, Corvallis, OR 97331. Tel: (541) 737-6061. E-mail: [email protected]
Journal of Small Business Management 2008 46(2), pp. 203–218
DIBRELL, DAVIS, AND CRAIG 203
mailto:[email protected]
specific skills and capabilities. For
example, substantial evidence has begun
to accumulate that suggests that appro-
priate strategic employment of informa-
tion technology (IT) may be essential
in translating strategies (e.g., innovation)
into enhanced firm performance (e.g.,
Ray, Muhanna, and Barney 2005;
Sakaguchi, Nicovich, and Dibrell 2004).
A direct linkage between IT and firm
performance was established by Powell
and Dent-Micallef (1997). Bharadwaj
(2000) found that high IT-capable firms
(those that invest heavily in IT) outper-
form competitors that do not inve ...
If you’re looking to implement an ERP solution for your enterprise, it’s important that you know the various points of impact in advance. For more details about ERP Solutions visit: http://www.skylinecollege.com/
What is an ERP system? This guide explains what an ERP system is and how it works for your business.
Two primary concerns of any business are efficiency and profitability. This is basically what an ERP system is designed to optimize.
An ERP system allows you to perform the necessary money-making processes of your business as efficiently as possible.
To achieve a level of efficiency and profitability, a business aims to maximize it’s bottom line while keeping overhead costs low.
An ERP system provides a business with management software that fosters productivity.
The term “ERP” stands for Enterprise Resource Planning.
Basically, an ERP system is a shared database that reflects the moving parts of a company. This provides a much broader, top-down perspective of your business.
Installing an ERP system will grant you a much fuller picture of what is actually going on, in any given period of time.
Some processes in which you can gain some business insights include: sales, human resources, inventory, purchasing, finances, online ordering and many more buckets.
The main objective of an ERP system is to improve how your business resources are spent, and that means money and time. By taking a wide-view, and analyzing every aspect of your business, you will be able to decide if you are properly deploying your resources in a way that will drive maximum profitability.
During the growth of a competitive global environment, there is considerable pressure on most organisations to make their operational, tactical, and strategic process more efficient and effective.
An information system (IS) is a group of components which can increase the competitiveness and gain better information for decision making. Consequently, many organisations decide to implement IS in order to improve the effectiveness and efficiency of their organisations
Information systems have become a major function area of business administration. The systems, nowadays, plays a vital role in the e-business and e-commerce operations, enterprise collaboration and management, and strategic success of the business
Enterprise resource planning (ERP) is an enterprise-wide information system designed to coordinate all the resources, information, and activities needed to complete business processes such as order fulfillment or billing. ... Ideally, the data for the various business functions are integrated.
Fueling Innovation through InformationTechnology in SMEsb.docxhanneloremccaffery
Fueling Innovation through Information
Technology in SMEs*
by Clay Dibrell, Peter S. Davis, and Justin Craig
This paper describes a study that investigates the mediating effects of information
technology (IT) on the relationships among product and process innovations and firm
performance (measured in multiple profitability and growth rate metrics). Using
structural equation modeling on a sample of 397 small and medium-sized enterprises
(SMEs), we find evidence that (1) increases on the strategic emphasis placed on
innovation, both product and process, positively impact the prominence managers
place on IT; (2) the impact of innovation (both product and process) on performance
(both profitability and growth) is primarily indirect, felt via the mechanism of the
importance managers place on IT; and (3) an increased emphasis on IT abets
managers’ perception of their firms’ performance, as compared with that observed
among peer firms (other SMEs).
A commitment to innovation has long
been considered to be important to the
success of entrepreneurial ventures and
small firms (Fiol 1996). Research has
shown that innovation stimulates ven-
tures’ growth (e.g., Wolff and Pett
2006; Motwani et al. 1999; Hax and
Majluf 1991) and also provides a key
source of competitive advantage in the
absence of scale economies (Lewis et al.
2002). Considered from the resource-
based view of the firm (Barney 1991),
successful innovation may be dependent
on the presence of other organization-
*The authors wish to thank Don Neubaum and the anonymous reviewers for their helpful
comments and direction. Financial support was provided by the Austin Family Business
Program in the College of Business at Oregon State University.
Clay Dibrell is associate professor of strategic management in the College of Business at
Oregon State University and research fellow at Bond University.
Peter S. Davis is professor and chair of the Department of Management in the Belk College
of Business at the University of North Carolina–Charlotte.
Justin Craig is associate professor of family business and entrepreneurship at Bond
University.
Address correspondence to: Clay Dibrell, 200 Bexell Hall, College of Business, Oregon State
University, Corvallis, OR 97331. Tel: (541) 737-6061. E-mail: [email protected]
Journal of Small Business Management 2008 46(2), pp. 203–218
DIBRELL, DAVIS, AND CRAIG 203
mailto:[email protected]
specific skills and capabilities. For
example, substantial evidence has begun
to accumulate that suggests that appro-
priate strategic employment of informa-
tion technology (IT) may be essential
in translating strategies (e.g., innovation)
into enhanced firm performance (e.g.,
Ray, Muhanna, and Barney 2005;
Sakaguchi, Nicovich, and Dibrell 2004).
A direct linkage between IT and firm
performance was established by Powell
and Dent-Micallef (1997). Bharadwaj
(2000) found that high IT-capable firms
(those that invest heavily in IT) outper-
form competitors that do not inve ...
Research articleFactors affecting the successful realisati.docxrgladys1
Research article
Factors affecting the successful realisation
of benefits from systems development
projects: findings from three case studies
Neil F Doherty1, Colin Ashurst2, Joe Peppard3
1The Business School, Loughborough University, Loughborough, UK;
2The Business School, Durham University, Durham, UK;
3Cranfield School of Management, Cranfield, Bedfordshire, UK
Correspondence:
NF Doherty, The Business School, Loughborough University, Loughborough, LE11 3TU, UK.
Tel: þ 44 01509 223328;
Fax: þ 44 01509 223960;
E-mail: [email protected]
Abstract
The return that organisations derive from investments in information systems and
technology continues to disappoint. While there is a very significant body of literature on
the factors that should facilitate a successful outcome from systems development, there is
growing concern that these prescriptions are not having their desired effect. In this paper,
we argue that the success of a systems development project should be measured in terms
of its ability to deliver meaningful benefits, rather than the timely delivery of a technical
artefact, and therefore organisations should adopt an explicit and proactive benefits
realisation approach when investing in IT. Consequently, we sought to explore those
actionable factors that might facilitate the effective realisation of benefits from systems
development initiatives. Three organisations were identified that claimed to adopt a
proactive approach to benefits realisation, and detailed studies of their systems
development practices were conducted. Our analysis found that whilst one organisation
had been successful in its adoption of a benefits realisation perspective, the other two had
not, and this allowed us to identify those factors that helped to explain this difference in
outcomes. In short, this paper makes an important contribution by identifying how a sub-
set of traditional systems success factors might be enhanced, to give them a more explicit
benefits realisation orientation. Moreover, it presents a coherent set of principles that can
be used for deriving other factors and practices.
Journal of Information Technology (2012) 27, 1–16. doi:10.1057/jit.2011.8
Published online 9 August 2011
Keywords: IT development projects; benefits realisation; organisational change; ISD success factors;
value
Introduction
T
he context for the research reported in this paper is the
continued high failure rate of investments in information
systems/information technology (IS/IT): a considerable
amount of time, money, effort and opportunity can be wasted
upon IT investments that ultimately fail to deliver benefits
(Fortune and Peters, 2005; Peppard and Ward, 2005).
Estimates of the level of failure may vary, but over the past
30 years they have tended to stay uncomfortably high. More
specifically, it has been suggested that in the late 1970s only
20% of the projects ‘achieved something like their intended
benefits’ (Eason, 1988), and that by the late 1980s, it .
Enterprise architecrture & enterprise engineeringTayabaZahid
An enterprise architecture (EA) is a conceptual blueprint that defines the structure and operation of an organization. The intent of an enterprise architecture is to determine how an organization can most effectively achieve its current and future objectives.
Success Factors for Enterprise Systems in the Higher Education Sector: A Case...inventionjournals
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Lean Manufacturing in Public Services:Prospects for Value Creation
Ayham Jaaron and Chris Backhouse
Manufacturing Organisation Research Group
The Wolfson School of Mechanical and Manufacturing Engineering
Loughborough University, UK
Presented at:
IESS1.0 , Geneva, Switzerland
17-19 February 2010
Most downloaded article (last 30 days) in academia - INTERNATIONAL JOURNAL OF...IJMIT JOURNAL
The International Journal of Managing Information Technology (IJMIT) is a quarterly open access peer-reviewed journal that publishes articles that contribute new results in all areas of the strategic application of information technology (IT) in organizations. The journal focuses on innovative ideas and best practices in using IT to advance organizations – for-profit, non-profit, and governmental
This paper demonstrates that Leadership - and Human Resource Management literature is moving towards a Service Science perspective in which value creation unfolds out of action situations embedded in polycentric systems interconnected by value propositions (Boxall & Purcell, 2016; Hartmann, Wieland, & Vargo, 2018; Ostrom, 1990). To contribute to this grounding, the authors draw on the perspectives of IAD-framework, Service Science and Service-Dominant Logic to provide further theoretical foundation for leadership (Kiser & Ostrom, 1982; J. Spohrer, Maglio, Bailey, & Gruhl, 2007; Stephen L. Vargo & Lusch, 2004). The purpose of this conceptual paper is to derive implications for the foundation, design and output of leadership by theory synthesis.
The Ontology-based Business Architecture Engineering FrameworkDmitry Kudryavtsev
Business architecture became a well-known tool for business transformations. According to a recent study by Forrester, 50 percent of the companies polled claimed to have an active business architecture initiative, whereas 20 percent were planning to engage in business architecture work in the near future. However, despite the high interest in BA, there is not yet a common understanding of the main concepts. There is a lack for the business architecture framework which provides a complete metamodel, suggests methodology for business architecture development and enables tool support for it. The ORGMaster framework is designed to solve this problem using the ontology as a core of the metamodel. This paper describes the ORG-Master framework, its implementation and dissemination.
the presentation was given within the SOMET 2011 conference: http://www.somet.soft.iwate-pu.ac.jp/somet_11/
see the text in proceedings here: http://www.booksonline.iospress.nl/Content/View.aspx?piid=21454
Kudryavtsev, D., & Grigoriev, L. (2011). The ontology-based business architecture engineering framework. In proceedings of the 10th International Conference on Intelligent Software Methodologies, Tools and Techniques (SOMET), September 28-30, 2011, Saint-Petersburg, Russia. P. 233-252.
TS4-4: Huako Chiang from Japan Advanced Institute of Science and TechnologyJawad Haqbeen
Please listen to the presentation, read detailed slides and return to first post to make your comments below the corresponding paper author's post.
Session Chair: Takeo Higuchi
Session Theme: Idea Evaluation and Innovation
Session Number: 4
Paper No: 7
Session and Talk No: TS4-4
Type: Full
Co-authors: Huako Chiang, Yukari Nagai, Tzuhang Chiang and Yungyu Lin
Title: Measurement of Integrating with ERP and ECS
Chapter 11 Work, organization and job designLEARNING OUTCOMES.docxbartholomeocoombs
Chapter 11: Work, organization and job design
LEARNING OUTCOMES
On completing this chapter you should be able to define these key concepts. You should also understand:
· Work design methodology
· Changes in the nature of work
· Work system design
· Process planning
· Smart working
· Flexible working
· High-performance working
· Lean manufacturing
· Organization design
· Job design
Introduction
Work, organization, and job design are three distinct but closely associated processes that establish what work is done in organizations and how it is done. Work design deals with the ways in which things are done in the work system of a business by teams and individuals. Organization design is concerned with deciding how organizations should be structured. Job design is about establishing what people in individual jobs or roles are there to do. Although these three activities are dealt with separately in this chapter they share one purpose – to ensure that the organization’s work systems and structure operate effectively, make the best use of people in their jobs and roles and take account of the needs of people at work.
In theory, to achieve that purpose, work, organization and job design function sequentially. The work system is designed to meet the specific needs of the business and to deliver value to its customers or clients. An organization structure or system (not all organizations are rigidly structured) has to be developed to enable the work system to operate. The structure is made up of jobs or roles (there is a distinction, which will be explained later) that have to be designed in ways that will maximize the extent to which they can be carried out effectively and provide intrinsic motivation, ie motivation from the work itself.
In practice, the processes involved can run concurrently – the work system will involve deciding how the work should be organized, and both the work system and organization design processes will define what sort of jobs or roles are required. At the same time, job design considerations will affect how the work is organized and how the work system functions. This chapter deals with each aspect of design separately, but it should be remembered that the processes interlink and overlap.Work design
Work design is the creation of systems of work and a working environment that enhance organizational effectiveness and productivity, ensure that the organization becomes ‘a great place in which to work’ and are conducive to the health, safety and well-being of employees. Work involves the exertion of effort and the application of knowledge and skills to achieve a purpose. Systems of work are the combined processes, methods and techniques used to get work done. The work environment comprises the design of jobs, working conditions and the ways in which people are treated at work by their managers and co-workers as well as the work system. Work design is closely associated with organization and job design in that the latter is con.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
𝐓𝐉 𝐂𝐨𝐦𝐬 provides unlimited package services including such as Event organizing, Event planning, Event production, Manpower, PR marketing, Design 2D/3D, VIP protocols, Interpreter agency, etc.
Sports events - Golf competitions/billiards competitions/company sports events: dynamic and challenging
⭐ 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐝 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬:
➢ 2024 BAEKHYUN [Lonsdaleite] IN HO CHI MINH
➢ SUPER JUNIOR-L.S.S. THE SHOW : Th3ee Guys in HO CHI MINH
➢FreenBecky 1st Fan Meeting in Vietnam
➢CHILDREN ART EXHIBITION 2024: BEYOND BARRIERS
➢ WOW K-Music Festival 2023
➢ Winner [CROSS] Tour in HCM
➢ Super Show 9 in HCM with Super Junior
➢ HCMC - Gyeongsangbuk-do Culture and Tourism Festival
➢ Korean Vietnam Partnership - Fair with LG
➢ Korean President visits Samsung Electronics R&D Center
➢ Vietnam Food Expo with Lotte Wellfood
"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
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effectively manage the convert Accpac to QuickBooks , with a particular focus on utilizing online accounting services to streamline the process.
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This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
As a business owner in Delaware, staying on top of your tax obligations is paramount, especially with the annual deadline for Delaware Franchise Tax looming on March 1. One such obligation is the annual Delaware Franchise Tax, which serves as a crucial requirement for maintaining your company’s legal standing within the state. While the prospect of handling tax matters may seem daunting, rest assured that the process can be straightforward with the right guidance. In this comprehensive guide, we’ll walk you through the steps of filing your Delaware Franchise Tax and provide insights to help you navigate the process effectively.
5. » Alignment of current processes
» Organizational Resistance
» Incompatible
» High Costs (Huq, Z., Huq, F., & Cutright, K., 2006)
Additional Source: (WenHsien, T., Shu-Ping, C., Hwang, E. Y., & Jui-Ling, H., 2010)
6. » Elements of Business Process
Redesign
˃Replace synchronous with asynchronous
communication
˃Reduce information duplication and overflow
˃Minimize contact points within a process
» Goal
˃Improve process quality and productivity (Kock,
2007)
Source: (Kock, 2007)
7. » Customization is decreased
» Decrease in the gap between software and
processes
» Integration of business processes
Source: (Kock, 2007)
8. “Post implementation maintenance of an ERP system
has a positive effect on business performance and that
knowledge management has a significant moderating
effect on the relationship between ERP post
implementation maintenance and business
performance. This implies that if the knowledge of
organizational members is effectively stored but not
further shared with members, knowledge is only
statically stored in the organization and cannot amplify
the effects of post-implementation maintenance on the
performance of the business.” (Tsai, Li, Lee, & Tung,
2011, p. 140-141)
9. “Although enterprise systems can lead to major gains
in productivity, by integrating information from
different organization areas (e.g. sales, production,
accounts receivable), they often require the key
organizational processes be redesigned before they
are deployed. Many examples exist in business
literature of organizations that have spent millions of
dollars implementing enterprise systems, only to see
those implementations fail due to incompatibilities
between the organizational processes and the
functionality provided by the enterprise system.”
(Kock, 2007)
10. Huq, Z., Huq, F., & Cutright, K. (2006). BPR through ERP: Avoiding change management pitfalls. Journal Of Change
Management, 6(1), 67-85.
Kock, N. (2007). System analysis & design fundamentals: A business process redesign approach. Thousand Oaks, CA:
Sage Publications Inc.
Tsai, M., Li, E. Y., Lee, K., & Tung, W. (2011). Beyond ERP implementation: The moderating effect of knowledge
management on business performance. Total Quality Management & Business Excellence, 22(2), 131-
144.
Wen-Hsien, T., Shu-Ping, C., Hwang, E. Y., & Jui-Ling, H. (2010). A Study of the impact of Business Process on the ERP
System Effectiveness. International Journal Of Business & Management, 5(9), 26-37.
Editor's Notes
In today’s society, changes in technology and increased consumer demand have increased the complexity of organizational business processes. This complexity has forced organizations to investigate ways to better manage and analyze these processes. To determine their success, organizations measure the productivity and quality of process outcomes. Each outcome can be influenced by the tools that an organization utilizes. These tools can come in many different forms and have varying results. In fact, most of the time, solutions used can effect one outcome but not the other. So how does an organization select a more comprehensive solution that can have the desired result of increasing productivity and quality?
Before a proper solution can be discussed, it is important that the terms of productivity and quality be formally defined.The first term, productivity, can be defined as ratio between production costs and production capacity (Kock, 2007).The second term, quality, is the measurement of the level of satisfaction a customer experiences from a given business process. The term customer in this sense can be considered external or internal. For example, an internal customer could be a particular department or manager. The external customer is a person or business that receives the product or service. You may now be asking yourself, “Why are these definitions important?”. Quite simply, they are the desired outcomes so we must fully understand their meaning.
The first tool that can be utilized to obtain the desired results comes in the form of software. This tool is known as ERP or Enterprise Resource Planning software. ERP is packaged business software that is capable of sharing common enterprise data and allowing access to information in real time. The software is modularized to provide organizations customized software solutions. Some of these modules can include: Accounts Receivable, General Ledger, Work Order, Customer Resource Management, Fixed Asset Management, and Payroll (Wen-Sien, Shu-Ping, Hwang, & Jui-Ling, 2010).The number one reason companies chose to implement ERP software is to integrate business processes(Wen-Sien, Shu-Ping, Hwang, & Jui-Ling, 2010). For example, information collected by the sales department about customers can be easily accessed and manipulated by other departments. This increased accessibility to information increases productivity by decreasing the need for internal departments to duplicate work. In addition, quality is improved because information can be accessed quickly and efficiently by various departments. ERP software provides a common database for all organizational activities that results in increased data integrity, reduction in transactions, decreased management costs, and increases in customer satisfaction (Huq, Z., Huq, F., & Cutright, K., 2006). However, these objectives can only be obtained when a ERP system is properly implemented.
Some challenges that organizations face when implementing ERP systems are:Properly aligning current processes to the packaged softwareOrganizational ResistanceIncompatibilities with existing software or technologiesAnd Excessive costs (Huq, Z., Huq, F., & Cutright, K., 2006)These challenges are why a significant number of implementations fail (WenHsien, T., Shu-Ping, C., Hwang, E. Y., & Jui-Ling, H., 2010) . To combat these challenges it is important for business leaders to fully understand their organization. This can be accomplished with another tool called Business Process Redesign, also known as BPR.
According to Kock, BPR or Business Process Redesign is the change in flow of information and knowledge within an organization. This change should focus on the following:-replacing synchronous with asynchronous communication-reducing information duplication and overflow-minimizing contact points within the processThe overall goal of BPR is to improve business process quality and productivity. With this in mind, it is easy to conclude that BPR and ERP share a common goal and are more successful in a symbiotic relationship. (Kock)
ERP and BPR share this relationship because:1.) When systems and processes are consistent, there is less need for customization to match business processes thus lowering overall implementations costs 2.) When companies do not have a gap between software and processes then ERP is more likely to achieve better performance (2)3.) One of the major benefits of implementing ERP systems is to integrate business processes of a company (2). Therefore, understanding the flow of knowledge in an organization is vital to the success of ERP software packages. Also, the need for this understanding, gives an organization the opportunity to reassess and apply changes to current processes to increase productivity and quality.These ideas provide evidence that ERP software and Business Process redesign are important partners and this connection can have a positive influence on the overall goals of increasing productivity and quality. However, this relationship does not end when the implementation process is completed.
It is important to understand that the relationship between BPR and ERP does not stop after system implementation. In fact, a recent study showed that “Post implementation maintenance of an ERP system has a positive effect on business performance and that knowledge management has a significant moderating effect on the relationship between ERP post implementation maintenance and business performance. This implies that if the knowledge of organizational members is effectively stored but not further shared with members, knowledge is only statically stored in the organization and cannot amplify the effects of post-implementation maintenance on the performance of the business.” (6)Even though this study had a knowledge management focus, the conclusion provides evidence that BPR could be essential in maintaining this flow of knowledge and be a key facilitator in the success of the software, which in turn, could improve the performance of the business.
I believe the following quote from Kock best summarizes the importance of the relationship between ERP software and BPR:“Although enterprise systems can lead to major gains in productivity, by integrating information from different organization areas (e.g. sales, production, accounts receivable), they often require the key organizational processes be redesigned before they are deployed. Many examples exist in the business literature of organizations that have spent millions of dollars implementing enterprise systems, only to see those implementations fail due to incompatibilities between the organizational processes and the functionality provided by the enterprise system.”In the end, the complexity found in the modern business environment has forced businesses to examine new methods of managing and analyzing their organizational knowledge. In determining their success in this quest, organizations quantify this by measuring productivity and quality. To achieve these desired results, Business implement many different tools. Yet, the tools described in this presentation, BPR and ERP software, working in a symbiotic relationship, give an organization the best chance to achieve both desired outcomes.