Competition, strategy, and modern enterprise information systems

"This book provides extensive coverage on the organizational, managerial and technological concerns of enterprise information systems and their executive competitiveness"--

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adam_text Titel: Competition, strategy, and modern enterprise information systems Autor: Tavana, Madjid Jahr: 2013 Detailed Table of Contents Preface.................................................................................................................................................xiv Section 1 Enterprise Resource Planning Chapter 1 Enterprise Systems Outsourcing Behind the Curtain : A Case Study Showing How Rational and Institutional Explanations Coexist and Complement Each Other...................................................... Per Svejvig, Aarhus School of Business, Denmark Jan Pries-Heje, Roskilde University, Denmark Outsourcing is now a feasible means for enterprise systems (ES) cost savings, but does however increase the complexity of coordination substantially when many organizations are involved. We set out to study ES outsourcing in a large Scandinavian high-tech organization, SCANDI, a case setting with many inter- organizational partners, trying to answer the question: Why does SCANDI engage in these very complex outsourcing arrangements? To answerthis question we have analyzed documents, observed meetings and gathered data from interviews in four parts of SCANDI. The first data analysis found just the rational front stage cost-saving explanation; but then, with a more careful analysis focusing on institutional fac- tors, other backstage explanations behind the curtain were uncovered, such as management consultants with a best practice agenda, people promoting outsourcing, thereby being promoted themselves, and a belief in outsourcing as a silver bullet : a recipe to success, solving everything. Chapter 2 The Influence of Organisational Size, Internal IT Capabilities, and Competitive and Vendor Pressures on ERP Adoption in SMEs...................................................................................................................19 Cliff Cartman, Manchester Metropolitan University, UK Angel Salazar, Manchester Metropolitan University. UK This empirical study investigates the influence of organisational size, internal IT capabilities and external factors, such as competitive and vendor pressure, on ERP adoption within SMEs. Existing research on ERP adoption has indentified some ofthe potential factors affecting SMEs, such as organisation size as one ofthe most significant ones. Yet none of this previous research has looked at organisational size, internal IT capabilities and external pressures in a unified framework and in context to SMEs. More specifically, this study focuses on the direct and moderating relationships which may affect an SME s decision to adopt an ERP system. An analysis of a sample of 229 SMEs shows clear direct and moderat- ing relationships amongst the above factors. Concrete recommendations are provided to accelerate the rate and success level of ERP adoption within SMEs. Chapter 3 Improving Internal Supply Chain Collaboration by Increasing Information-Processing Capacity: The Role of Enterprise Information Systems..............................................................................................44 Ana L. Rosado Feger, Ohio University College of Business, USA This study examines the role of enterprise information systems in fostering collaboration between the Purchasing, Production, and Outbound Logistics functions of manufacturing facilities. These forms of integrative information technology are considered key facilitators of supply chain management. The research model embeds these systems within a broader model offacilitators of interfunctional integration. The model is tested by path analysis, using a survey sample of 120 manufacturing facilities located in the United States. The results suggest that integrative information technology has a significant effect on collaboration, and that the level of demand uncertainty moderates the effect on collaboration. Chapter 4 An Investigation of Enterprise Resource Planning Implementation in a Small Firm: A Study of Problems Encountered and Successes Achieved .................................................................................57 Magdy Abdel-Kader, University of Bedfordshire, UK Thu Phuong Nguyen, TECHCOM Bank, Vietnam Enterprise Resource Planning (ERP) systems have been recognized as complex and costly, which limited their implementation in large organizations. However, an increasing number of small organizations have recently gained interest in this system. This paper investigates the implementation process of ERP in a small firm. The investigation focused on two perspectives of ERP implementation: successes achieved and problems encountered. Despite many problems encountered in the firm, the ERP system still exists. This gives evidence that small organizations are more flexible and motivated to adapt to change and implement an ERP system. Most problems were encountered at early stages of implementation, which can be minimized if deliberate decision making of ERP implementation and proper selection processes were in place. Further, ERP is a good solution for small organizations if they are able to build a relevant in-house system. Chapter 5 A Success Model for Enterprise Resource Planning Adoption to Improve Financial Performance in Vietnam s Equitized State Owned Enterprises ....................................................................................81 Long Pham, New Mexico State University, USA Jeffrey E. Teich, New Mexico State University, USA Equitized state-owned enterprises (ESOEs) in Vietnam have begun to implement enterprise resource planning (ERP) systems, ubiquitous in developed countries, to improve their operational and financial performance. However, such ESOEs lack a model for ERP adoption to guide them in successfully imple- menting ERP systems. This study is based on an extensive review of literature on ERP benefits and the equitization process in Vietnam and relevant theories on innovation adoption, and the authors propose a success model for ERP adoption in Vietnam s ESOEs. Model hypotheses that present relationships among factors influencing ERP adoption are given and future studies are discussed. Chapter 6 A Classification Framework of Critical Success Factors for ERP Systems Implementation: A Multi- Stakeholder Perspective .......................................................................................................................98 MohamedA. Now, University ofSharjah, UAE Samar Mouakket, University of Sharjah, UAE Although organizations can gain many benefits from successful implementation of an enterprise resource planning (ERP) system, there are high failure rates in ERP implementation projects. Therefore, a better understanding of ERP implementation success is a critical. One ofthe best known approaches used to define and measure ERP implementation success has been the critical success factors (CSF) approach. In this study, the authors investigate the current literature of critical success factors (CSFs) of ERP systems implementation and propose a new classification framework, categorized according to six proposed fundamental stakeholders. The authors then map those critical success factors to three different stages of an ERP project lifecycle. In addition, they identify several roles that each stakeholder may play during the ERP systems project lifecycle. The proposed classification framework provides organizations with a classification tool to help them identify the CSFs and those stakeholders who are most likely to have an impact on the implementation ofthe ERP system, which will help organizations to better plan for the implementation of their ERP systems. Chapter 7 Strategic Management of Network Resources: A Case Study of an ERP Ecosystem ......................114 Michelle Antero, Copenhagen Business School, Denmark Philip Hoist Riis, Copenhagen Business School, Denmark This paper applies the resource-based view (RBV) theory to a case study aimed at identifying the comple- mentary resources among partners in the ERPCorp ecosystem of development and implementation of Enterprise Resource Planning (ERP) for small and medium enterprises (SMEs) in Denmark. The paper analyzes these resources in terms of being valuable, rare, inimitable, immobile, and non-substitutable in the ERP solutions market. The study found four key complementary resources that contribute to competitive advantage, namely: (1) ERP core product; (2) horizontal add-ons; (3) vertical add-ons; and (4) customer specific add-ons. The paper examines the potential impact of an ERP vendor s business development strategy that includes changing the ERP solution from a horizontal to a vertical focus, and increasing the partner certification requirements to be part ofthe ecosystem. The evidence suggests that the strategy, if implemented successfully, maintains competitive advantage for the ERPCorp ecosystem through effectively combining resources and leveraging lock-in and network effects. Chapter 8 Collaborative Planning of ERP Implementation: A Design Science Approach.................................130 Babak Sohrabi, University of Tehran, Iran Iman Raeesi Vanani, University of Tehran, Iran Enterprise Resource Planning (ERP) is the process of optimizing the performance of enterprise busi- ness processes through the utilization of integrated IT-based solutions. Such systems are mostly based on best practices gained through years of software analysis, design and deployment in the competitive markets. Planning for enterprise-wide system implementation requires all ofthe stakeholders to integrate views on considering strategic approaches toward a unified vision on how to develop and improve the collaborative ERP implementation planning process. This paper develops a framework which critically evaluates the final implementation plan based on considerations taken in design science methodology. Using the guidelines provided in this methodology, managers gain the capability of evaluating the overall artifact of planning in the total value system, and also gain the ability to measure the progress of ERP implementation plan based on the provided indicators. Chapter 9 A McKinsey 7S Model-Based Framework for ERP Readiness Assessment .....................................141 Payam Hanqfizadeh, Allemeh Tabataba i University of Tehran, Iran AhadZare Ravasan, Allemeh Tabataba i University of Tehran, Iran Implementing Enterprise Resource Planning (ERP) systems is a complex, lengthy and expensive pro- cess which usually faces serious challenges and failures. Thus, it is necessary to perform a readiness assessment at the initial stage of an ERP implementation project to identify weakness areas which may encounter the project with failure. This paper proposes a new framework for assessing readiness of an organization to implement the ERP project on the basis of McKinsey 7S model using confirmatory factor analysis. Through this method, the construct of ERP readiness is proposed based on 7 dimensions namely structure , strategy , systems , skills , style/culture , staff , and shared values/ superordinate goals . Using the framework, the current situation ofthe organization can be determined and necessary changes can be made prior to system implementation. The proposed framework is then applied to 2 real Iranian banking cases and the advantages ofthe framework over available frameworks are illustrated. Chapter 10 Ontology-Based Knowledge Management for Enterprise Systems...................................................184 Mohammad Nazir Ahmad, Universiti Teknologi Malaysia, Malaysia Nor Hidayati Zakaria, Universiti Teknologi Malaysia, Malaysia Darshana Sedera, Queensland University of Technology, Australia Companies face the challenges of expanding their markets, improving products, services and processes, and exploiting intellectual capital in a dynamic network. Therefore, more companies are turning to an Enterprise System (ES). Knowledge management (KM) has also received considerable attention and is continuously gaining the interest of industry, enterprises, and academia. For ES, KM can provide support across the entire lifecycle, from selection and implementation to use. In addition, it is also recognised that an ontology is an appropriate methodology to accomplish a common consensus of communication, as well as to support a diversity of KM activities, such as knowledge repository, retrieval, sharing, and dissemination. This paper examines the role of ontology-based KM for ES (OKES) and investigates the possible integration of ontology-based KM and ES. The authors develop a taxonomy as a framework for understanding OKES research. In order to achieve the objective of this study, a systematic review of existing research was conducted. Based on a theoretical framework ofthe ES lifecycle, KM, KM for ES, ontology, and ontology-based KM, guided by the framework of study, a taxonomy for OKES is established. Section 2 Enterprise Productivity Planning Chapter 11 Linking the Impact of IT Investments to Productivity and Profitability...........................................214 Mohan P. Rao, University of Louisiana at Lafayette, USA Purnendu Mandal, Lamar University, USA Implementing IT (information technology) systems such as ERP (enterprise resource planning) requires huge investments. Measuringthe impact ofthese investments on productivity and profitability isextremely important for business managers. Many studies have failed to show the direct relationship between IT investments, organizational productivity and profitability, a phenomenon known as productivity paradox. The failure might relate to problems with the measurement techniques. This paper describes a measure- ment model, known as the PPP model ( Profitability = Productivity + Price Recovery ), that can fill the gap and show a link between IT investments, productivity, and profitability. The spreadsheet-based implementation ofthe PPP model, using multi-period data, generates performance trend charts of pro- ductivity, price recovery, and profitability. These performance charts provide a multi-period perspec- tive to managers in identifying and understanding the impact of IT investments. This model is useful to managers considering heavy investments in IT as well as for managers interested in assessing their organizational performance and taking corrective actions in a timely manner. Chapter 12 An Analytical Model to Measure IS-Enabled Organizational Effectiveness.....................................230 Chun Meng Tang, Multimedia University, Malaysia Govindan Marthandan, Multimedia University, Malaysia When business managers are considering whether to invest in an enterprise resource planning (ERP) system, they ask the question: What are the returns on investment? When the ERP system is imple- mented and in operation, business managers ask another question: How successful is the system? To answer these questions, clues can be found by examining organizational effectiveness improvements as a result of ERP system implementation. This paper suggests that being able to identify the dimensions of organizational effectiveness is enabled by ERP systems. Together with positive organizational effective- ness improvements, the business value of ERP systems can be demonstrated. To provide the evidence needed to support the notion, a confirmatory factor analysis (CFA) was conducted. Analyses reveal that the construct of IS-enabled organizational effectiveness can be modeled, at a higher-order abstraction level, as athird-order construct manifested by three second-order constructs and ten first-order constructs. Chapter 13 A Maturity Model of Strategic Information Systems Planning (SISP): A Comprehensive Conceptualization ..............................................................................................................................246 ZijadPita, RMIT University, Australia France Cheong, RMIT University, Australia Brian Corbitt, RMIT University, Australia Strategic Information Systems Planning (SISP) maturity model is conceptualized as afive-stage maturity model. To identify the maturity stage of SISP, a model for assessment of SISP is developed. The develop- ment of these models is based on the Integral Engineering approach and a unique implementation of the Analytical Network Process theory (ANP). The SISP assessment model is structured as a multi-order system. High level constructs are presented in this paper. A new approach to SISP offers improving our understanding ofthe concept of SISP, and a means of structured evaluation and reformulation of SISP. The SISP assessment model can be used as an early warning diagnostic tool to draw attention to particular aspects ofthe SISP that need improvement or to justify the undertaking of SISP. Chapter 14 A Maturity Model of Strategic Information Systems Planning (SISP): An Empirical Evaluation Using the Analytic Network Process.............................................................................................................277 Zijad Pita, RMIT University, Australia France Cheong, RMIT University, Australia Brian Corbitt, RMIT University, Australia In this paper Strategic Information Systems Planning (SISP) maturity models are empirically validated in Australian environment. A research instrument used to determine the degree of SISP maturity in Australian organisations is described. While empirical testing of a five-stage SISP model has only confirmed the existence of three levels of SISP maturity, statistical methods confirmed the adequacy of the establishment ofthe SISP assessment model as a third-order system. The study also opens the way for SISP thinking beyond the conventional approaches by introducing the Analytic Network Process and the Analytic Hierarchy Process methods to reduce complexity of SISP measurement in a natural and structural way. By using these methods, it was possible to obtain a single overall measure of SISP maturity, thus overcoming a problem of result synthesis measured by different scales. Chapter 15 Sustainable Competitive Advantage in E-Commerce and the Role ofthe Enterprise System ..........303 Petra Schubert, Copenhagen Business School, Denmark Susan P. Williams, University of Koblenz-Landau, Germany RalfWoelfle, University of Applied Sciences Northwestern Switzerland, Switzerland Developing and sustaining a competitive advantage from the use of information technology is a topic of concern for information systems research. Mata et al. (1995) present a model that is founded on the resource-based view ofthe firm. The model is used to discuss factors that lead to competitive advantage in e-commerce companies. This paper explores factors that enable sustainable competitive advantages in B2C retailing. The analysis is based on a single in-depth case study of an Internet pioneer company (LeShop), which was observed by the authors since its inception more than 10 years ago. The research data stems from a series of interviews with managers at LeShop as well as two case studies about the company from two different points in time (2000 and 2009). LeShop is an online pioneer, which began selling groceries on the Internet in Switzerland in April 1998. After a turbulent few years, LeShop is now one ofthe few successful e-commerce suppliers in the supermarket segment worldwide. The discussion includes an analysis of further critical resources ofthe company from a resource-based view. Chapter 16 Is it Really so Strategic ? Motivational Factors for Investing in Enterprise Systems: A Survey.............................................................................................................................................320 Przemyslaw Lech, University of Gdansk, Poland This paper presents empirical research on motivational factors for investing in Enterprise Systems (ES), based on the survey conducted among project leaders. The results show that enterprises make invest- ments in ES mostly to increase operational efficiency, provide managers with more accurate information and, which is interesting, to be able to continue the operations on the current level. Almost one third of examined enterprises indicated the replacement of an inefficient IT infrastructure with a new one enabling smooth operation of current business processes as the most important motivational factor for investments. The results ofthe research presented in this paper may help to understand the productivity paradox as they prove that many enterprises treat IT as a commodity rather than a strategic asset that generates significant business gains. Compilation of References...............................................................................................................330 About the Contributors....................................................................................................................370 Index...................................................................................................................................................376
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title_auth Competition, strategy, and modern enterprise information systems
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title_full Competition, strategy, and modern enterprise information systems Madjid Tavana, [editor]
title_fullStr Competition, strategy, and modern enterprise information systems Madjid Tavana, [editor]
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