An integrated framework for ERP system implementation

• Pages: 91-109
• Date: 06 March 2017
• Published date: 06 March 2017
• DOI: https://doi.org/10.1108/IJAIM-04-2016-0038
• Author: Kalinga Jagoda,Premaratne Samaranayake
• Subject Matter: Accounting & Finance,Accounting/accountancy,Accounting methods/systems

An integrated framework for ERP

system implementation

Kalinga Jagoda

University of Guleph, Guelph, Canada, and

Premaratne Samaranayake

School of Business, Western Sydney University, Penrith, Australia

Abstract

Purpose –The purpose of this paper is to propose an alternative integrated approach based on the

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

identied 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 benecial to practicing managers in the identication of opportunities for improvements in ERP

systems. Case studies will be valuable to rene 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, nances,

purchasing, etc.);

• share common data, information and knowledge throughout the entire enterprise;

• automate critical parts of its business processes; and

• generate and access information in real-time environment using a single database.

Because these systems are complex and require signicant investment of capital and

time, effective adoption of such ERP systems is becoming more important than ever

The current issue and full text archive of this journal is available on Emerald Insight at:

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ERP system

implementation

91

Received 18 April 2016

Revised 12 July 2016

Accepted 23 August 2016

InternationalJournal of

Accounting& Information

Management

Vol.25 No. 1, 2017

pp.91-109

©Emerald Publishing Limited

1834-7649

DOI 10.1108/IJAIM-04-2016-0038

before. However, earlier adoption of ERP systems has resulted in many failures,

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

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 inuence 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

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 rst 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 modied 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 ndings and future

directions.

Overview of enterprise resource planning implementation aspects

ERP systems can bring substantial value for the rm through best business practices,

delivered through various functional applications supported by comprehensive process and

data integration (Koh et al., 2011). While recognising complexities of ERP system

implementation projects, effective implementation can enhance the rm performance (Sense

and Kiridena, 2014). Furthermore, recent studies have pointed out that knowledge sharing

plays a mediating role linking information systems maturity and rm performance (Rao

et al., 2015). It can enhance the business value by increasing investor condence (Ajit et al.,

2014), return-on-assets and return-on-investment, increasing technological competence

(Galy and Sauceda, 2014). However, the implementation and adoption of ERP systems across

many industries and organisations have resulted in both failures and successes.

Implementation of ERP systems in organisational settings has been a topic of research and

discussion among many practitioners and researchers (Hwang et al., 2015;Tsai et al., 2011;

Peslak, 2006;Sharma et al., 2006;Gargeya and Brady, 2005;Stijn and Wensley, 2001). Many

have identied causes of failures, critical issues, critical success factors and areas of

improvements in the recent past (Gajic et al., 2014;Al-Mashari and Zairi, 2000;

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