Sap Hcm

Topics: Enterprise resource planning, Management, Business process management Pages: 25 (6823 words) Published: September 4, 2013
ERP System Implementation| January 28
2013
|
Prepared by Hammad Muhammad Abdo Submitted to Dr. Mona Kadry| Research document|

The Effect of ERP System Implementation on
Business Performance in the Egyptian Manufacturing Firms

Hammad Muhammad Abdo
Arab Academy for Science Technology and Maritime Transport
___________________________________________________________
Abstract
Technology is a tool that, when used properly, can make dramatic improvements in the productivity of operations and the work of support employees. As organizations strive to become more competitive in their product or service offering, they find themselves at the mercy of unanswered questions, excellence as achieved by their competitor's best practices, and ever changing technology.

As changes in technology advance rapidly in the 1990's, a new competitive approach was born that enabled organizations to compete on multiple competitive priorities, making them more competitive and taking competitors far to behind. The ERP technology enabled organizations to connect vendors, the organization, and customers in an almost easy manner with real-time, consistent, accurate communication and information.

There is currently many of researches concerning the effect of Enterprise Resource Planning (ERP) Systems on business performance. Previous researches have shown a mixed relationship between ERP and business performance where some suggested that ERP improves performance and others found that it does not.

Introduction
The use of enterprise resource planning (ERP) software has become increasingly more common in a lot of today’s businesses. It is adopted in many firms in attempts of improving business performance. The concept of business performance can be operationalised as financial gains by the organization, operational improvements for the organization or intangible gains for the organization.

The benefits of ERP systems are usually overestimated by ERP vendors. Promises are made about performance such as fast return on investment (ROI) and fast decision making but such claims need to be researched and tested in order to establish their degree of correctness (Trott & Hoecht, 2004).

Since it's emerging in the early 1990s, the enterprise resource planning (ERP) system has become the nerve center of today’s businesses. An ERP system consists of many different components which access and process data across business functions and physical boundaries. The complexity of the system is beyond human comprehension and requires a team of knowledge workers to maintain the system beyond its implementation. A successful ERP system is one that supports the goals and strategies of a business and provides sustainable benefits to business (Keen, 1991; Neumann, 1994).

It is well known that successful implementation of an ERP system may bring immediate benefits to a business; however this effect may not last long. As time goes by, changes of the environment, turnover of members, and variations of customer demands may significantly impact existing processes and operations of a business. If the ERP is unable to adapt to and cope with these changes, its effectiveness is likely to disappear (Sheu, Yen & Krumwiede, 2003), and this in turn diminishes business performance. Robbins-Gioia (2002) surveyed a hundred enterprises and discovered that 46% of these enterprises enjoyed the benefits of ERP at the beginning of post-implementation but were unable to maintain the business performance in the long run.

Problem Identification
There have been many theories and approaches to ERP implementation which have proven both success and unsuccessful results of ERP implementation. The intent of this study was to identify the relationship between successful implementation of ERP system and business performance.

Research Objectives
The purpose of this research was to explore the relationship between implementing ERP systems and business performance...


References: Almutairi, H. (2007). “Information System and Productivity in Kuwaiti Public
Organizations: Looking Inside the Black Box,” International Journal of Public Administration, 30, 1263–1290.
Anderson, M., C., Banker, R., D. & Ravindran, S. (2003). “The New Productivity Paradox,” Communications of the ACM, 46 (3), 91-94.
Cotteleer,M., J. & Bendoly, E. (2006)”Order Lead-Time Improvement Following Enterprise Information Technology Implementation: An Empirical Study," MIS Quarterly, 30 (3), 643-660.
Dai, Z. (2008). “Supply Chain Transformation By ERP For Enhancing Performance: An Empirical Investigation,” Advances in Competitiveness Research, 16 (1&2), 87-98.
Esteves, J. (2009). “A Benefits Realisation Road-Map Framework for ERP Usage in Small and Medium-Sized Enterprises,” Journal of Enterprise Information, 22 (1/2), 25-35.
Federici T. (2009) “Factors Influencing ERP Outcomes in SMEs: a Post- Introduction Assessment,” Journal of Enterprise Information, 22 (1/2), 81-98.
FuB, C., Gmeiner, R., Schiereck, D. & Strahringer, S. (2007)“ERP Usage in Banking: An Exploratory Survey of the World’s Largest Banks,” Information Systems Management, 24, 155 171.
Gattiker,T. & Goodhue, D. (2005). “What Happens After ERP Implementation: Understanding the Impact of Inter- Dependence and Differentiation on Plant- Level Outcomes,” MIS Quarterly, 29 (3), 559-585.
Gupta, O., Priyadarshini, K., Massoud, S. & Agrawal, S. K.(2004). “Enterprise Resource Planning: A Case of a Blood Bank,” Industrial Management & Data Systems, 104 (7), 589-603.
Hakkinen, L. & Hilmola,O.-P. (2008). “ERP Evaluation during the Shakedown Phase: Lessons from an After-Sales Division,”Information Systems Journal, 18, 73-100.
Hamilton, L., C. & Asundi, R. (2008) “Technology Usage and Innovation: It’s Effect on the Profitability of SMEs,” Management Research News, 31 (11), 830- 845.
Hitt,L. M., Wu, D., J. & Zhou, X. (2002)“Investment in Enterprise Resource Planning: Business Impact and Productivity Measures,” Journal of Management Information Systems, 19 (1), 71 98.
Huang S. Y., Huang, S.-M., Wu, T.-H & Lin, W.-K.(2009)“Process Efficiency of the Enterprise Resource Planning Adoption,” Industrial Management & Data Systems, 109 (8), 1085-1100.
Kang, S., Park, J.-H. & Yang, H.-D. (2008). “ERP Alignment for Positive Business
Performance:"Evidence from Korea 's ERP Market,” Journal of Computer Information Systems, and summer 2008, 25-38.
Keen, P. G. W.(1991).Shaping the Future, Boston: Harvard Business School Press.
Laukkanen, S., Sarpola, S.& Hallikainen, P. (2007). “Enterprise Size Matters: Objectives and Constraints of ERP Adoption,” Journal of Enterprise Information Management, 20 (3), 319-334.
Loh, T., Koh, S. & Simpson, M. (2006). “An Investigation of the Value of Becoming an
Extended Enterprise,” International Journal of Integrated Manufacturing, 19 (1), 49-58.
Matolcsy, Z. P., Booth, P. & Wieder, B. (2005) “Economic Benefits of Enterprise Resource Planning Systems: Some Empirical Evidence,” Accounting & Finance, 45, 439–456.
Neumann, S. (1994). Strategic Information System: Competition through Information
Technologies, N.Y.: Macmillan.
Nicolaou, A. (2004) “Firm Performance Effects in Relation to the Implementation and Use of Enterprise Resource Planning Systems,” Journal of Information Systems, 18 (2), 79-105.
Pilat, D. (2004). The ICT Productivity Paradox: Insights from Micro Data, OECD Economic Studies, 38, 37-65.
Rei,C. M. (2004). 'Causal Evidence on the “Productivity Paradox” and Implications for Managers, ' International Journal of Productivity and Performance Management, 53 (2), 129-142.
Ross, A. (2002). “A Multi-Dimensional Empirical Exploration of Technology Investment, Coordination and Firm Performance,“ International Journal of Physical Distribution & Logistics
Management, 32 (7), 591-609.
Robbins-Gioia (2002). ERP Survey Results Point to Need For Higher Implementation Success, Robbins-Gioia Press
Sheu, C., Yen, H
Trott, P. & Hoecht, A. (2004). “Enterprise Resource Planning and the Price of
Efficiency: The Trade Off Between Businesses Efficiency and the Innovative Capability of Firms,” Technology Analysis & Strategic Management, 16 (3), 367–379.
Velcu, O. (2007) “Exploring the Effects Of ERP Systems on Organizational Performance: Evidence from Finnish Companies,” Industrial Management & Data Systems, 107 (9), 1316-1334.
Wei, C.-C. (2008). “Evaluating the Performance of an ERP System Based on The Knowledge of ERP Implementation Objectives,” The International Journal of Advanced Manufacturing Technology (39), 168-181.
Wieder, B., Booth, P., Matolcsy, Z. P. & Ossimitz, M.-L.(2006).“The Impact of ERP Systems on Firm and Business Process Performance,” Journal of Enterprise Information Management, 19 (1), 13 29.
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • report SAP system Essay
  • Sap Research Essay
  • What Is Sap Essay
  • SAP Accounting module Essay
  • Critique of Sap System Essay
  • SAP ERP Catalogue Pdf Essay
  • Sap Hcm Essay
  • Essay about Sap with Body Shop

Become a StudyMode Member

Sign Up - It's Free