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Critical decisions for ERP integration: Small business issues

Critical decisions for ERP integration: Small business issues. International Journal of Information Management (2009). Management Information System 指導教授 林娟娟教授. 資碩專一 98756011 李怡夢 98756003 顏臺良. Outline. Abstract ERP B2BI Small Business SB VS ERP Methodology ERP framework

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Critical decisions for ERP integration: Small business issues

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  1. Critical decisions for ERP integration: Small business issues International Journal of Information Management(2009) Management Information System 指導教授 林娟娟教授 資碩專一 98756011 李怡夢 98756003 顏臺良

  2. Outline • Abstract • ERP • B2BI • Small Business • SB VS ERP • Methodology • ERP framework • Conclusions

  3. Abstract • Motivation • SME significant challenges • ERP Expensive and risky • Recommend • Six critical decisions • Finding • Enhanced success of ERP implementation

  4. ERP • ERP introduction • Enterprise Resource planning • Integrate all information and processes • Unified database • IT infrastructure • ERP implements affects • Suppliers and customers • Expensive cost • ERP implements evaluate difficulty • necessary organizational changes • predicting the return on investment

  5. ERP cost

  6. ERP • ERP contributes • Standardization • Transparency • Globalization • Automating and integrating corporate cross-functions

  7. B2Bi • ERP next phase :B2Bi • Electronic document exchange in small businesses vertical or horizontal • Vertical • Standard : RosettaNet • Horizontal • Standard : ebXML

  8. Small Business • SB introduction • Backbone of the economy • Independently owned and operated • Not dominant in its field • Majority of personnel perform multiple job functions

  9. SB VS ERP • Small Business limited resources • Financial • Technical personnel • Technology • Lack of alignment of implementation practices • Risk and cost

  10. Methodology • Research methodology • Academic databases • ABI Inform • Academic Source Complete • Emerald • IEEE • Key terms • ERP implementation • Small business

  11. Methodology (cont.) Selection of the six critical decisions Interviewee Manufacturing sector Had recently completed ERP implementations

  12. ERP framework (Critical decisions for implementation) • Six critical decisions • Assumptions • Keep any customization to a minimum • Ensure that the business processes directly supported by the software package • Have an ERP package with an intuitive and easy-to-use interface to minimize training and user support costs

  13. The cost of implementation

  14. Definition of critical decisions • 工作小組的組成(Program team structure) • 實施的策略(Implementation strategy) • 選擇過渡技術(Selection of transition technique) • 資料庫轉換策略(Database conversion strategy) • 風險管理策略(Risk management strategy) • 變更管理策略(Change management strategy)

  15. Program team structure • The team structure can be broken down into four categories • Isolated Function, A-Team, and Lightweight • Require fixed personnel on each function , financial and technical resources to maintain • Heavyweight • Flat management hierarchy • The highest chance

  16. Alternative team structures

  17. Alternative team structures

  18. Implementation strategy • Seven generally deployed strategies • Breakneck • Star • Turnkey, Low Risk, and In-House • Not have the luxury of full time human resources to an ERP implementation • Budget • Partner

  19. Implementation strategies

  20. Implementation strategies(cont.)

  21. Selection of transition technique • Four basic transition techniques • Big bang • entails substantial risk • Phased • Process lines • Usually lack multiple process lines • Parallel • limited resources for small business.

  22. ERP transition techniques

  23. Database conversion strategy • Two basic data conversion methods • Electronic • Writing custom programs • Process is rapid • Verifiable Data is difficult • Manual • Judgments necessary during the conversion • Familiar with the new ERP system and develop a sense

  24. Risk management strategy • Three Risks • Small business location • Realities of small business • Company’s niche and company’s management

  25. Risk management strategy • Minimize internal politics and resistance to change • Appointment of a heavyweight project manager • Adopting a partner implementation strategy to allow the internal team to focus on strategic tasks

  26. Change management strategy • The project manager, or champion, should accept and deal with the internal politics and resistance to change rather than go into denial • Effective communications must be a priority • Management should lay out the vision of the company and explain the expected benefits

  27. Conclusions • Decision to install an ERP • Assigning a heavyweight project manager • Partnering with an external organization with the requisite experience • Implementing the ERP package in a phased manner • Adopting a predominantly manual database conversion strategy • Proactively managing project risk and internal change

  28. 報告完畢　敬請指教

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