An Integrated Framework For ERP System Implenetataion - 2016
An Integrated Framework For ERP System Implenetataion - 2016
An Integrated Framework For ERP System Implenetataion - 2016
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system implementation
Kalinga Jagoda
University of Guleph, Guelph, Canada, and
91
Premaratne Samaranayake
School of Business, Western Sydney University, Penrith, Australia Received 18 April 2016
Revised 12 July 2016
Accepted 23 August 2016
Abstract
Purpose – The purpose of this paper is to propose an alternative integrated approach based on the
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stage-gate method to implement enterprise resource planning (ERP) systems which will enhance the
effectiveness of ERP projects.
Design/methodology/approach – A literature review was conducted on ERP system implementation
and its effectiveness. The need for improving implementation approaches and methodologies was examined.
Based on the insights gained, a conceptual framework for ERP system implementation is presented by
combining the state-gate approach with the pre-implementation roadmap.
Findings – The proposed framework aims to enhance the overall ERP implementation outcomes, ensuring
critical success factors and eliminating common causes of failures. A pre-implementation roadmap is
identified as a key element for eliminating many causes of failure including lack of organisations’ readiness for
ERP. The post-implementation stage can be used for further improvements to the system through internal
research and development.
Research limitations/implications – The development of the framework is an attempt to contribute to
improving ERP implementation. This research is expected to motivate researchers to work in this area, and it
will be beneficial to practicing managers in the identification of opportunities for improvements in ERP
systems. Case studies will be valuable to refine and validate the proposed model.
Originality/value – This paper explores research in a needy area and offers a framework to help
researchers and practitioners in improving ERP implementation. This framework is expected to reduce the
implementation project duration, strengthen critical success factors and minimise common problems of ERP
implementation projects.
Keywords ERP implementation, Implementation cycle, Selection methods, System options
Paper type Research paper
Introduction
Over the past two decades, many organisations have implemented enterprise resource
planning (ERP) systems across a range of industries for various reasons and motivations
with a view to re-engineering business processes at the operational level. ERP systems are
business software packages that enable organisations to:
• integrate their business functions (sales, production, human resources, finances,
purchasing, etc.);
• share common data, information and knowledge throughout the entire enterprise;
• automate critical parts of its business processes; and International Journal of
Accounting & Information
• generate and access information in real-time environment using a single database. Management
Vol. 25 No. 1, 2017
pp. 91-109
Because these systems are complex and require significant investment of capital and © Emerald Publishing Limited
1834-7649
time, effective adoption of such ERP systems is becoming more important than ever DOI 10.1108/IJAIM-04-2016-0038
IJAIM before. However, earlier adoption of ERP systems has resulted in many failures,
25,1 including failure to be fully implemented (Gargeya and Brady, 2005). Thus, there
seems to be a strong need for enhancing current implementation practices for better
outcomes.
The literature suggests that many ERP projects have not produced the desired results for
a variety of reasons (Gargeya and Brady, 2005; Momoh et al., 2010). Thus, there is a strong
92 need for enhancing the effectiveness of ERP projects while being fully aware of problems,
shortcomings and their resolutions. Enhancements can be two-fold, namely, improvements
to the implementation cycle itself and incorporation of certain pre-implementation activities
as part of overall roadmap, which many projects have overlooked in the past.
Abdinnour-Helm et al. (2003) concluded from a survey that the level of involvement in
pre-implementation training with consultants appeared to have little influence on attitudes
towards ERP. However, there are many pre-implementation activities which have not been
considered in the past and are potential candidates for further investigation for better ERP
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implementation outcomes.
In this paper, an alternative approach to the current implementation cycle is
proposed. The new approach is based on the stage-gate method, which has been
successfully used for planning and implementing technology transfer projects. The
stage-gate approach is extended by incorporating both pre-implementation and
post-implementation activities. In the proposed approach, a pre-implementation
roadmap substitutes the first two stages of the stage-gate model. Furthermore, key
activities of pre-implementation stage are represented by an analytical hierarchy
process (AHP) model, taking relative importance of key activities into consideration.
Other stages are modified according to the requirements of ERP implementation and
issues associated with current practices.
The reminder of the paper is structured as follows. First, it provides an overview of
ERP implementation aspects including common practices, issues and success and failure
factors. The stage-gate model is outlined next, with details of each stage and gate and
how each stage links with pre-implementation and post-implementation stages. Next,
possible deployment of IT in ERP implementation from a technology transfer
perspective is discussed. Finally, the paper concludes with findings and future
directions.
Sumner, 2005). Furthermore, Kale (2000) argues that the implementation cycle can be
strengthened by incorporating two aspects, namely, ERP evaluation and selection of the
right ERP system for organisational requirements.
Successes and failures of ERP system implementations have been widely cited in the
literature, including the high failure rate (Davenport, 2000; Kim et al., 2005). Kim et al. (2005)
reviews a number of previous implementation projects and concludes that most critical success
factors are related to functional coordination problems. Nah et al. (2001), through a thorough
literature review, identified 11 critical success factors including well-established factors such as
top management support (MS): Muscatello et al. (2003) based on multiple case studies show that
effective executive management is a key success factor for small- and medium-sized enterprises
to achieve success in ERP implementation. Abdinnour-Helm et al. (2003) conclude from their
preliminary studies that employee attitudes are a key factor in determining ERP implementation
success or failure. Gargeya and Brady (2005) identify the lack of appropriate culture and
organisational (internal) readiness as the most important factor contributing to failure of ERP
implementation in 15 companies they studied.
Although ERP implementation is considered to be the largest investment in IT
(Davenport, 2000; Huang et al., 2004), treating ERP implementation projects as IT only
projects has caused many failures, costing many organisations millions of dollars in lost
revenue and in some cases even bankruptcy. While ERP systems are supported by new IT,
database and communication technologies, they are not IT systems rather they are
application systems (Samaranayake, 2009). Therefore, to increase the level of success, project
teams should consist of not only IT personnel of the organisation but also business and
management personnel.
The high failure rate of ERP implementation has made a strong case for a better
understanding of critical success factors (Zach et al., 2014; Zach and Bjorn, 2012; Somers
et al., 2000). Among many critical success factors, business process reengineering and
establishing a total quality management culture have identified as key approaches that play
important roles in ERP implementation (Hsu et al., 2015; Schniederjans and Kim, 2003).
Furthermore, the need for better implementation of ERP systems has led to the focus on
improving implementation approaches and methodologies. Metaxiotis et al. (2005) have
argued that implementation cost and time are reduced, and adoption of the processes makes
implementation easier by using goal directed project management (PM) methodology.
Research on the critical success factors and causes of failure for initial and ongoing ERP
implementation cases is limited and fragmented (Zach and Bjorn, 2012; Nah and Lau, 2001).
Harwood (2003) argues that the problems tend not to be with the technology but with the
people. The notion of “people issues” as significant is endorsed by Monk and Wagner (2006)
IJAIM who states that most challenges to ERP implementation involve managing personnel and
25,1 their reactions to change rather than managing technical issues. Most of the critical success
factors, issues and causes for failure identified in these studies can be addressed and/or
linked to one of the phases of the implementation cycle. For example, effective change
management is a critical success factor for many ERP implementations when dealing with a
lot of changes, in particular “people issues” as a result of behavioural changes. Thus, change
94 management has become part of the implementation cycle. Furthermore, Xu et al. (2002)
identify data quality as one of the critical issues during the implementation of an ERP
system. Stijn and Wensley (2001) argue that process knowledge is an issue where it is either
lost or represented in different ways in different parts of the organisation. Because most of
these issues are associated with phases of the implementation cycle, implementations can be
improved by addressing these issues within the implementation cycle. However, the lack of
readiness assessment, identified as one of the key failure factors (Samaranayake, 2005) over
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ERP implementation. The schematic view of such a stage-gate model for an ERP system
implementation is shown in Figure 1.
Figure 1 shows the complete stage-gate model for the ERP system implementation,
incorporating a pre-implementation roadmap, implementation cycle and post-implementation
stage. Depending on the priorities of the firm (ERP system requirements vs cost-benefit analysis),
this stage can be initiated with system options or selection methods. Thus, the
pre-implementation roadmap is incorporated into the model as a very specific stage-gate.
Furthermore, both implementation cycle and post-implementation stage consist of appropriate
stages and gates as shown in Figure 1. Apart from stages and gates, there are also loops within
the implementation cycle for enhancing the stages involved based on the status of gates.
This stage-gate model presents an integrated approach to the planning and execution of ERP
system implementation projects. According to the requirements and competitive landscape of the
firm, some stages and gates may be implemented in a short period. The scope and extent of the
activities within these stages could change, depending on the nature of the technology involved
and could be considered in terms of complexity, cost and other external factors. It is possible to
implement the first two stages of the pre-implementation roadmap simultaneously; however,
those two stages have to be completed before proceeding to the ERP readiness assessment. In the
implementation cycle, firms need to follow the stage-gate sequence as indicated in the model. The
post-implementation stage evaluates the impact of the ERP system and acts as the platform for
the further refinement and/or maintenance and upgrade of the existing ERP system. It should
also be noted that it is not necessary to implement the ERP system in all departments or all
functional areas (i.e. marketing, production, human resources, etc.); rather, it can be implemented
by individual modules using a phase approach.
It is noted from applications of stage-gate approach across many technology transfer-related
projects that the approach can be further improved through careful analysis of the requirements
and competitive landscape of the firm (Vieira Junior et al., 2014; Jagoda et al., 2010). Because
requirements are fulfilled through various activities in each stage and the competitive landscape
of the firm influences the decision maker on the choice at each gate, the need for further refinement
of the stage-gate approach is sought. In this regard, it is important to recognise the importance of
different weights of activities at each stage, given requirements are not equally important when
evaluating criteria for decision-making. To allow for this, activities in selected stages of the
proposed approach are evaluated using AHP. The AHP is a multicriteria decision-making
approach in which decision criteria are weighted and arranged in a hierarchical structure for
making a decision through evaluation of criteria (Saaty, 1990). The AHP considers the relative
weight of each criterion/activity at each stage. Based on relative weights of criteria/activities at
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96
25,1
IJAIM
Figure 1.
implementation
for ERP system
Stage-gate approach
Cost-Benefit
System options Analysis
Selection System
methods Requirements
Partner Preparing an
Approving Implementing
Selection Fianlising ERP System Implementation
implementation the ERP
and Agreement implementation Audit
plan System
Negotiation plan
Implementation Cycle
Post-Implementation
each stage, a weighted index is evaluated for making a decision at each gate. The enhanced ERP system
stage-gate approach is outlined by incorporating relevant AHP models at selected stages of the implementation
implementation cycle.
Pre-implementation roadmap
The pre-implementation roadmap consists of three main components: system options,
selection methods and ERP readiness assessment (Olson, 2004; Samaranayake, 2006). These 97
components support each other through links among them, as shown in Figure 1. System
options are based on cost-benefit analysis and can provide the best option for initiation of the
project within the implementation. Furthermore, selection methods are based on system
requirements, whereas readiness assessment is based on selection criteria. Selection criteria
can be used to measure the readiness as a percentage for a combination of selected ERP
systems with system options.
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Olson (2004) discusses various system options available for ERP implementation. Those
system options include full implementation (FI) of vendor product, partial implementation
(PI) of vendor product, minimal implementation (MI) of vendor product, in-house
development (ID) and do nothing (DN). In other words, system options are mainly based on
the cost-benefit over a selected period of return rather than ERP system requirements of the
organisation. However, the decision on system options can correctly be made if the selection
methods based on requirements are evaluated prior to the system options. Also, there can be
further enhancements if ERP evaluation is carried out for evaluating different ERP vendors
based on three main areas: technical capabilities, operational flexibilities and financial
viabilities. Therefore, system options can be incorporated into the stage-gate model where
options available are considered in the gate, whereas the decision on the system is considered
as the gate for the next stage.
Selection methods are similar to system options but choices in the selection methods are
based on requirements and usually consist of a number of options because of the nature of the
ERP system’s landscape. Main options available for selection methods vary from “develop
in-house” to “access to an ERP system through an application service provider (ASP) mode”.
Because selection methods are based on requirements rather than cost-benefit analysis, the
options available in this process are much more than that in system options. Apart from
having a full or partial system in the site, it is also possible to have access to what the
organisation needs from an external ASP. Similar to system options, selection methods can
also be incorporated into the stage-gate model through appropriate stage(s) and gate(s).
ERP readiness assessment is the major part of the pre-implementation roadmap
(Samaranayake, 2006). Readiness assessment can be seen as a key for eliminating the main
cause of many failures: not knowing the organisation’s readiness before embarking on a
large or small ERP system implementation project. It also directly links with a number of
assessment bases, where each base has a number of characteristics linking with critical
success factors. Depending on the assessment basis and the individual characteristics,
readiness assessment can take a different score through different weights and ratings on
various aspects of the implementation.
Thus, these three components of pre-implementation roadmap can be incorporated into
the overall stage-gate model using appropriate stage or gate at each component. To allow for
relative importance of each criterion/activity at the pre-implementation stage, enhanced
stage-gate model is proposed, by adopting AHP for both system options and readiness
assessment stages, where requirements and benefits are considered for making a decision at
respective gate. The proposed AHP model with key criteria and sub-criteria comprising of
alternatives is shown in Figure 2. Furthermore, the overall pre-implementation roadmap can
IJAIM also be connected to the implementation cycle with appropriate relations between them. To
25,1 plan and execute activities within the pre-implementation roadmap as part of the stage-gate
model, the organisation needs to establish an ERP Implementation Steering Committee
(EISC). It is expected that EISC is involved in activities throughout the implementation
including the post-implementation. If necessary, EISC can be expanded by incorporating
process and technical experts.
98 The decision structure shown in Figure 2 involves a single hierarchy with two criteria
(requirements and cost/benefit analysis) and five decision alternatives (FI, PI, MI, ID and
DN). Depending on the competitive landscape of the firm, the organisation can rank relative
importance of two criteria. Once the relative importance of each criterion is identified, the
organisation can rank each alternative from a standpoint of requirements and cost/benefit
analysis. Once the above ranking is set, ranking of each alternative using composite weight
can be evaluated for the final decision on system option. Numerical evaluation of the
proposed AHP is not provided because it is beyond the scope of the research presented here.
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Similar to the AHP approach for system options stage, readiness assessment can also be
considered with a hierarchical decision structure so that the overall pre-implementation
stage can be improved. In this case, the decision structure comprises two criteria
(requirements and failure/risk analysis) and five alternatives (improvement projects [IP],
process-oriented organisation, MS, infrastructure support and PM experience). These five
alternatives are considered from a point of prior experience rather than decision variables.
For example, prior experience of IP such as business re-engineering can be vital in
implementing a brand new ERP system, and therefore its importance can be considered at
high level. The resulting hierarchical structure of two criteria and five alternatives is shown
in Figure 3.
Depending on the level of requirements and competitive landscape of the firm, the relative
importance of requirements and failure/risk analysis can be decided. Careful analysis of prior
Figure 2.
Hierarchical structure
of system options
Figure 3.
Hierarchical structure
of readiness
assessment
experience of each alternative and its relevance to the level of implementation preferred, ERP system
relative importance of each alternative can be decided. Once relative importance of implementation
individual alternatives and criteria are set, ranking of each alternative using composite
weight can be evaluated for the final decision on readiness assessment as part of overall
pre-implementation stage and subsequent decision at the gate.
Implementation cycle 99
The implementation cycle consists of three stages: partner selection and negotiation,
preparation of an ERP system implementation plan and implementation of the ERP system.
Three gates – finalising agreement, approving implementation plan and implementation
audit – follow the stages. These components follow the stage-gate approach as shown in
Figure 1. At each stage, prescribed and mandatory activities are done, and, at the gate,
decision is taken to go/no-go/hold or recycles. If the activities are not carried out
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satisfactorily at the stage, EISC will take decisions at the gate to revisit the activities at the
stage.
Partner selection and negotiation is a critical stage, where the EISC selects and negotiates
with the potential ERP system vendors, hardware vendors and implementation partners.
Based on the recommendations made in the pre-implementation cycle, a clear set of
specifications must first be developed for the ERP system and hardware being sought. Based
on these specifications, EISC develops a shortlist of potential vendors and partners that can
deliver the required ERP system and its implementation. If the negotiations with the first
vendor do not lead to a satisfactory outcome, then the EISC may move to the next. The
outcomes of this stage will significantly determine how the ERP project will proceed and
under what conditions. Furthermore, the terms agreed upon can have far reaching
implications for all parties.
Traditionally, ERP system and associated technology negotiations have been adversarial
in nature, but, in a globalised setting, a “win-win” approach based on trust and
understanding are likely to produce better outcomes. The main activities in this stage are the
following:
• developing a preferred vendor profile, focusing on desired ERP functional capabilities,
experience in ERP projects, business strategy, past performance and cross-cultural
expertise;
• developing a list of firms that are capable of providing the desired ERP system,
initiating communication and gathering information in accordance with the vendor
profile criteria;
• agreeing upon a basis for the evaluation of the ERP system and components and
reaching agreement on issues related to payments and intellectual property protection;
• reaching agreement on each party’s contribution and responsibilities towards the ERP
project;
• reaching agreement on issues and methods related to the knowledge transfer methods
including training and documentation;
• establishing effective channels of communication among all parties;
• reaching agreement upon payment amounts, procedures, and time-frames; and
• preparing a detailed ERP system implementation agreement based on the outcomes of
the above-mentioned activities.
IJAIM The finalising agreement gate is initiated once the EISC has reached an agreement with an
25,1 ERP vendor and other parties. Once all parties have expressed the desire to finalise the ERP
system implementation, EISC, with the consultation of all parties, draws up a legal
agreement. Even in its simplest form, such an agreement should contain the exact identity of
the parties involved, subject matter of the implementation, protection of intellectual
property, the scope of implementation, payment structure, vendor’s obligations, system
100 users’ obligations and obligations common to all parties.
At the beginning of the stage, preparing an ERP system implementation plan, a vendor
for the ERP system would have been chosen. This stage is based on the premise that the
creation of a sound organisational infrastructure is critical to the implementation of an ERP
system. The activities during this stage are aimed at preparing the user organisation to
receive the new system and include the following:
• identifying changes to be made to the organisational structure and work design based
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At the approving the implementation plan gate, top management will carefully evaluate the
project schedule and may suggest refinements to the EISC. Specific areas that may be
carefully scrutinised are adequacy of training, validity of the suggestions made for the
modification of the organisational infrastructure, adequacy of intellectual property
protection measures, durations of critical activities, sufficiency of quality assurance
procedures and affordability of payment schedules. If these are satisfactory, then a go-ahead
signal may be given. Top management may also approve an initial payment to the vendor if
such a payment has been specified in the agreement.
ERP system implementation requires rigorous PM practices because of the size and
complexities involved. Training is a key area throughout the implementation and must
proceed without delay. Furthermore, the timely arrival of all software, hardware and
consulting services is essential to ensure go-live as planned. Based on traditional
implementation activities (Sandoe et al., 2001), the following activities have been identified as
critical and important for the success of ERP system implementation projects:
• identifying configuration changes to be made to the system to suit local business
conditions and making the necessary adaptations;
• recruiting skilled personnel not already available within the organisation and
conducting training programs for existing staff;
• developing an improved remuneration plan to facilitate change management;
• formulating arrangements with ancillary vendors of software and hardware
components and services based on in-house or out-sourced decision; and
• go-live the ERP system on or before schedule.
Implementation audit gate is aimed at gaining an understanding of barriers to the successful ERP system
implementation of ERP systems. Top management may set up an internal audit committee implementation
or an external auditor to compile an audit report outlining lessons learned. The report may
focus on the implementation experience with respect to critical success factors such as
commitment displayed by both the user and the vendor, conflicts experienced, maintenance
of time-frame integrity, costs incurred, quality achieved, extent of learning and skill
upgrading, new knowledge generated and communication effectiveness.
101
Post-implementation stage
This stage is incorporated as part of the complete model for overall ERP system
implementation methodology. This is largely outside the main activity of the ERP system
implementation, where tasks are limited to system maintenance, system upgrades and
database backups. Planning such activities can be incorporated into the only stage
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associated with this activity. Assessing the impact of an ERP project is difficult because it is
a complex process with multiple outcomes that could emerge throughout the life of a project.
Also, the intangible benefits of an ERP project are difficult to evaluate. It would be prudent
to use a balanced scorecard approach to assess the impacts of an ERP project from financial,
technological and organisational perspectives (Chand et al., 2005).
The following activities may be carried out at this stage:
• assessing the actual outcomes of the ERP project from financial, technological and
organisational perspectives;
• identifying variances (if applicable) between actual and expected outcomes and the
reasons for the variances;
• evaluating the adequacy of corrective measures that were implemented to correct
adverse variances;
• examining the feasibility of improving the ERP system functionality; and
• identifying new or complementary systems such as supply chain management (SCM)
and customer relationship management (CRM) that could be incorporated into the
current solution.
Completion of all of the above activities reaches the post-implementation gate. At this gate,
important decisions have to be made as to whether to continue to use the ERP system by
adding other functionalities incrementally or go for ERP system upgrades. A successful ERP
project could lead to a strong relationship between the partners and new projects could be
initiated. In such a situation, guidelines may be formulated by top management in
consultation with the EISC for postimplementation activities such as global roll-out of the
phase of implementation, adding complementary applications (SCM, CRM, etc.), improving
the system through internal research and development, or using a mix of all in partnership
with the ERP vendor.
exchange technologies, has the potential to reduce the time taken for selection, negotiation,
transfer scheduling and implementation stages. The following section outlines the potential
use of the various IT tools and systems at each stage, which can be effectively used in
planning and implementing ERP systems, using stage-gate approach.
operations may be in the form of periodic intensive reviews. The findings can be
disseminated widely through IT interventions that have already been discussed above.
IT interventions can be valuable in gathering information for impact assessment.
Teleconferencing and video conferencing may be used to connect to remote experts
(Lyytinen et al., 2006) and ascertain their views. With regard to consolidating the gains
of the transfer project, the transferor may deliver information on updates of the existing
technology or new technologies via e-mail, video mail and computer-based conferencing.
If the transferor and transferee have come this far they may well decide to go for a new IT
project or an extension of the existing agreement. It may be worthwhile for both parties to
consider implementing a collaborative advanced IT infrastructure for supporting effective
transfer. If the buyer decides to go for a new ERP system, they can use IT to exploit a variety
of sources for opportunities.
Managerial implications
While ERP systems are expected to improve the organisational performance and
operational capabilities, the complexity of the process integration often leads to
difficulties and failures (Ram et al., 2014; Beheshti and Beheshti, 2010). Effective
implementation requires careful planning and execution of key processes. Recent
literature suggests that training and education and system integration activities are
critical to obtain the desired competitive advantage (Ram et al., 2014; Chien et al., 2014;
Sudhaman and Thangavel, 2015) and should be integrated to implementation plans. We
believe that the proposed stage-gate approach would assist managers to navigate the
complex implementation in three ways. First, it will assist the managers to carefully plan
the activities at each stage. The proposed approach will help to identify the critical
activities needed to be completed at each stage before committing resources to the next
stage. Second, it helps them to critically evaluate the activities at each stage before
moving to the next stage. If they have not completed the activities to a satisfactory level,
then they can make the necessary adjustments or corrections. To evaluate the
performance at each stage the quantitative modelling approaches such as AHP can be
used as shown in the earlier section. Third, it assists the managers to document and
evaluate the overall project success and to identify any adjustments to be made for the
future projects.
The outcomes of this research have the following major implications:
• The proposed stage-gate model addresses the need for integrated approach for ERP
implementation. It brings together the three important phases of ERP implementation
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104
Table I.
IJAIM
Deployment of IT in
ERP implementation
Stage/gate Potential activities with IT deployment IT Systems and tools
Partner selection and negotiation/agreement Agreeing on the value of the ERP system, terms of payment and Privately hosted electronic arbitration rooms with
finalisation intellectual property protection multipoint videoconferencing
Developing a preferred vendor profile On-line search engines, patent databases, research web-
sites, meta-search engines, directories, on-line libraries,
digital versatile discs (DVDs), push technology (such as
PointCast)
Developing a list of potential vendor firms Internet telephony, videoconferencing and
teleconferencing
Preparing implementation plan/approving Developing pragmatic training and education schedule for the Training modules using multimedia technology (CD-
implementation plan workforce ROMs, DVD-ROMs, computer-based multimedia
simulation software, multimedia extranet, e-mails and
video mails, mobile communication, and
teleconferencing etc.)
Formulating measures to build good relationships between the Internet-based conferencing tools, such as IRC (Internet
ERP vendor and implementation partner Relay Chat)
Implementing the ERP system/implementation audit Identifying configuration changes to be made to the ERP system Business process modelling tools for mapping the
to suit local conditions and making the necessary adaptations current practices with ERP system’s blueprint
Recruiting skilled personnel not already available within the Extranet, teleconferencing, internet-based telephone
organisation service and mobile computing systems for
communications among implementation partners and
users
Formulating arrangements with hardware and DBMS vendors Online recruitment through designated websites and
video conferencing for interviewing potential
candidates
Email and video mail systems for scheduling and
organising day-to-day activities during the
implementation stage
ERP system impact assessment/developing Assessing the actual outcomes of the ERP project Teleconferencing and video conferencing for connecting
guidelines for post ERP activities with remote experts and ascertaining their views
Evaluating the adequacy of corrective measures E-mail, video mail and computer-based conferencing for
consolidating the ERP system implementation progress
Identifying new or complementary technologies Use of online market research firms such as @plan
(www.webplan.net) for acquiring business intelligence
project: pre-implementation roadmap, implementation phase and the post ERP system
implementation. It also established the linkages among each phase. This model is also implementation
useful to educate the managers of the ERP implementation process.
• Managers involved in ERP implementation process can use this model as the basis for
planning the project with clear goals and the project charter. Each stage-gate consists
of key activities and criteria for decision-making, especially at the pre-implementation
stage where managers can develop a check list to make the process effective. 105
• This paper also discussed the use of a wide range of information and communication
technologies available for the managers to address two main issues of any ERP
projects: time and cost. We outlined various IT tools managers can use to reduce the
time and cost of the ERP projects.
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Conclusions
It is evident from broader discussion that the literature on ERP system implementation is
often sparse when it comes to managerial issues, technical details or internal organisational
processes that can influence the effectiveness of the implementation. The integrated model
based on the stage-gate approach presented in this paper is a preliminary attempt to meet
that need. The model is built on the concept of stage-gate, where each stage is identified with
relevant activities. Essentially, the stage-gate model proposed is based on the premise that if
managers of an ERP system implementation project use the proposed stage-gate sequence
and carry out the recommended activities, then problems can be minimised, and, wherever
needed, proactive action can be taken to avoid problems. This paper also made a preliminary
attempt to examine the deployment of IT for enhancing the effectiveness of ERP system
implementation. The deployment options have been examined in conjunction with the
different stages and gates at the implementation cycle to enable a systematic examination of
the various possibilities. However, such deployment has to be considered in the light of some
important issues. This model was developed based on the existing literature. Therefore, case
studies that assess the usefulness of this model are valuable. Future research will involve
developing a detailed questionnaire to investigate the application of this model in ERP
projects (Table I).
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