Book contents
- Frontmatter
- Contents
- List of Illustrations
- Preface
- 1 From Losers to Heroes: How to Change the Perception of Business Failure and Recognize Its Value for the Economy
- 2 Economic Failure in the Process of Small Business Growth in the Context of the Shadow Economy
- 3 Failure as a Barrier to Entrepreneurial New Venturing in Northern Ireland
- 4 Business and Sustainability: Key Drivers for Business Success and Business Failure from the Perspective of Sustainable Development
- 5 Implementation of the Enterprise Resource Planning Systems: Case Studies of Failures and Their Impact on the Enterprise Operation
5 - Implementation of the Enterprise Resource Planning Systems: Case Studies of Failures and Their Impact on the Enterprise Operation
Published online by Cambridge University Press: 10 May 2018
- Frontmatter
- Contents
- List of Illustrations
- Preface
- 1 From Losers to Heroes: How to Change the Perception of Business Failure and Recognize Its Value for the Economy
- 2 Economic Failure in the Process of Small Business Growth in the Context of the Shadow Economy
- 3 Failure as a Barrier to Entrepreneurial New Venturing in Northern Ireland
- 4 Business and Sustainability: Key Drivers for Business Success and Business Failure from the Perspective of Sustainable Development
- 5 Implementation of the Enterprise Resource Planning Systems: Case Studies of Failures and Their Impact on the Enterprise Operation
Summary
Abstract
In this chapter we discuss the problem of enterprise resource planning (ERP) system implementation failure. Presented here is a short description of the ERP system's complexity and the methodological background of implementation. The statistics concerning the implementations process and their results are gathered. Additionally, the lesson learned from the ERP implementation's failures and guidelines on how to prepare the proper implementation process are given.
Complexity of ERP System— a Brief History
ERP is software often perceived as a backbone for a whole business due to the integration, in one application, of the core aspects of the enterprise function— accounting, finance, HR/ payroll, production, sales, logistics, inventory and so forth. The development of ERP has almost a fifty- year history (Figure 5.1): the term was introduced by The Gartner Group in 1990 as a consequence of its application not only in industry but also in non- manufacturing enterprises (Antero, 2015; Jacobs and Weston, 2006).
The origins of ERP date back to the 1970s, when the Materials Requirements Planning (MRP) systems began to be developed by ERP vendors and used to support production processes and inventory control systems (Jacobs and Weston, 2006; Abramek et al. 2014). The crucial element of MRP systems was integration of the inventory processes, material management and production on the basis of a prepared production schedule. In comparison with the previously known inventory control systems, the MRP was equipped with a module responsible for forecasting and determining the range of inventories as well as for tracking and quantitative settlement of production. Three main objectives were the background for developing the MRP system:
availability of materials, components and products for production and for client delivery;
maintaining the lowest possible materials, components and products in the company;
planning manufacturing activities, delivery schedules and purchasing activities.
MRP allowed companies to reduce inventories, define materials and components delivery time, analyze production costs, to make more effective use of the infrastructure, have faster response to changes observed in the environment, control the various production stages, collect the business data for analysis and do better planning.
The progressive development of MRP systems was the background for extension of the concept of operational management for the whole manufacturing process, including such aspects as marketing, finance and sales.
- Type
- Chapter
- Information
- Value of FailureThe Spectrum of Challenges for the Economy, pp. 75 - 97Publisher: Anthem PressPrint publication year: 2017