What Are the Factors Affecting ERP System Integration? - Observations from a Large Manufacturing Enterprise

Abstract

The first wave of Enterprise Resource Planning (ERP) systems integrated the core internal business processes and provided operational benefits for companies. The second wave of ERPs introduced additional challenges due to the need for ERPs to interact also with various other systems beyond organizational boundaries, highlighting integration as a critical activity during the ERP system development. This paper takes a Grounded Theory approach to investigate ERP system integration. A model of four groups of factors affecting on ERP system integration was created. Challenged by the domain, organizational landscape, ERP development network partners and system characteristics, ERP system integration is a continuous and cooperative effort during the ERP development, conducted by the dynamic ERP development network. It struggles through forced-marriage relationships, political games and organizational changes and aims at an integrated business engine that makes the business more competitive. The model creates a base for further research to investigate how integration issues are solved in ERP development networks.

Assessing the ERP-SAP implementation strategy from cultural perspectives

“…Case study above infers the cultural issues related to SAP implementation strategy can be summarised into three specifics knowledge. They are (20): (1) software specific knowledge, in the article refers to expertise of SAP vendors and best practice associated with legacy applications; (2) business process specific knowledge, it relates to preparing BPR initiatives, KM (30) and project management framework; and (3) organisation specific knowledge, it relates with understanding the decision process, leadership style and managing change culture (31) (32). The effective consultant should be able to anticipate that knowledge into SAP implementation strategy.…”