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Controlling the ERP Implementation Risks

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Controlling the ERP Implementation Risks
ARTICLE IN PRESS
Information Systems 35 (2010) 204–214

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Information Systems

www.management.blogfa.com

A practical model on controlling the ERP implementation risks
Amin Hakim a,Ã, Hamid Hakim b a b

Ph.D. Candidate on Systems Management, University of Tehran, Iran IH University, Center of NSDS, Tehran, Iran

a r t i c l e i n f o
Article history: Received 23 June 2009 Received in revised form 28 June 2009 Accepted 29 June 2009 Recommended by: D. Shasha Keywords: ERP Decision-making model Risk management ERP selection model

abstract
Although ERP systems were already introduced many years back and were implemented in different organizations, there are still companies who hesitate to decide about establishing ERP systems in their structure. This hesitation will itself result in the projects to go in vain. On the other hand, taking into account the Iranian organizations, the unfamiliarity with these systems is obviously comprehended, something that stems from the lack of information in decision-makers and managers concerning the abovementioned issue, together with the feeling of fear and inconvenience with this novel technology. Taking into account the lack of successful prior experience of ERP implementation in Iranian automotive industry, these failures have acted as obstacles for the decisionmakers to move towards establishment of the system. Bearing in mind all the above, this article, through reviewing the intra- and extraorganizational limitations, has tried to provide a suitable and practical model for decision-makers to take precise steps in implementing ERP systems in Iran. This model has been operationally tested and simulated in Bahman motor company. The overall schema of the model and also the evaluation results in the aforementioned company have been incorporated in the results of this essay with the intention to decrease the decision-making risks and, therefore, success of these types of



References: [1] G. Stewart, M. Milford, T. Hunter, Organization readiness for ERP implementation, Proceedings of the Americas Conference on Information System (2000) 966–971. [2] David L. Olson, Managerial Issues of ERP Systems, The McGraw-Hill Companies, New York, 2003. [3] M.L. Markus, S. Axline, D. Petrie, C. Tanis, Learning from adopters’ experiences with ERP: problems encountered and success achieved, Journal of Information Technology 15 (2000) 245–265. [4] K.C. Laudon, J.P. Laudon, Management Information Systems – New Approaches to Organization and Technology, fifth ed., Prentice-Hall, London, 1998. ¨ [5] P. Jarvinen, On Research Methods, University of Tampere, Tampere, 1999, 127 pp. [6] R.D. Galliers, Choosing information systems research approach, in: Information Systems Research, Alfred Waller Ltd., 1992, pp. 144–162. [7] H. Klein, M.D. Myers, A set of principles for conducting and evaluating interpretive field studies in Information Systems, MIS Quarterly 23 (1) (1999) 67–93. [8] J. Motwani, D. Mirchandani, M. Madan, A. Gunasekaran, Successful implementation of ERP projects: evidence from two case studies, International Journal of Production Economics 75 (2002) 83–96. [9] A.T. Chatfield, N. Bjørn-Andersen, The impact of IOS-enabled business process change on business outcomes: transformation of the value chain of Japan airlines, Journal of Management Information Systems 14 (1) (1997). [10] M. Markus, C. Tanis, P. Fenema, Multisite ERP implementation, Communication of the ACM 43 (4) (2000) 42–46. [11] R. Kalakota, M. Robinson, e-Business 2.0, Addison-Wesley, Reading, MA, 2001. [12] P. Bingi, M.K. Sharma, J.K. Godla, Critical issues affecting an ERP implementation, Information Systems Management Summer 16 (3) (1999) 7–14. [13] C.P. Holland, B. Light, A critical success model for ERP implementation, IEEE Software 16 (3) (1999) 30–35.

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