The Enterprise Systems Implementation: An Integrative Framework

3780 words - 15 pages

In the recent past several years many organizations have initiated Enterprise Systems (ES) projects, leads to a major paradigm shift. The adoption requires the examination of the factors that precipitate a search for systems that will provide a solution to the current information systems, structured around previous thinking as motivation for investment in information systems for business. The process considers the attributes applicable to the decision for adopting ES once it has emerged as a contender to acquire. The failure to do this successfully can be extremely costly as demonstrated by an array of failure cases reported. The paper outlines the significance of ES and analyses the adoption related issues. The study provides a framework for the selection process of ES which can be useful in identifying critical factors for further research and supporting managers considering ES projects.INTRODUCTIONs the pace of change accelerates in the twenty-first century as a result of technological opportunities, liberalization of world markets, demands for innovation, and continually decreasing life cycles, organizations are finding that they have to continuously re-adjust and re-align their operations to meet all these challenges. This pace of change has increasingly forced organizations to be more outward looking, market-oriented, and knowledge driven. A useful tool that businesses are turning to, in order to build strong capabilities, improve performance, undertake better decision-making, and achieve a competitive advantage is Enterprise Systems (ES) software. (Al-Mudimigh A., et al., 2001) THowever, it has been estimated that about half of ES implementations fail to meet expectations (Appleton, 1997). Other reported figures show that more than 70 percent of ES implementation fails to achieve their estimated benefits. According to a survey (Themistocleous et al. 2001), organizations adopting ES certainly acquire benefits such as an increase suppliers' and customers' satisfaction and an increase in productivity but the level of return on investment (ROI) is rather low. Other findings of the same survey suggest that many organizations adopting ES have serious conflicts with their business strategies and the majorities of ES projects are often characterized by delays and cost overruns.The important issue concerning managers is the appropriateness of ES to meet organization's needs. The study provides a research framework of the critical issues involved in ES adoption process, which can assist managers considering their ES projects and stimulate further research in ES acquisition issues.METHODOLOGYThis paper is based on three sources of data. The first source has been an academic literature review, the second has been articles drawn from the web and the respected practitioners' magazines reporting ES selection cases, and the third has been personal semi-structured interview and structured interviews conducted through e-mails with eleven ES consultants and...

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