Management of ERP implementation
Journal
PACIS 2006 - 10th Pacific Asia Conference on Information Systems: ICT and Innovation Economy
Pages
152-166
Date Issued
2006
Author(s)
Abstract
Implementation of Enterprise Resource Planning (ERP) solutions, which involve both technical and social uncertainties, is in practice a highly uncertain, risky endeavour. Traditional ERP practices address implementation of ERP as a static process; such practices focus on structure, not on ERP as something that will meet the needs of a changing organization. As a result, many relevant uncertainties that cannot be predefined are not easily accommodated. Options theory, which addresses uncertainties over time, resolves uncertainties in changing environments that cannot be predefined. In this paper, we propose an options perspective on the ERP implementation process with a focus on uncertainty. This perspective takes into consideration the often-changing nature of the companies that undertake ERP implementations. In addition, we present a practical example that demonstrates how to use options theory in context, enabling active management when implementing ERP. By actively managing ERP implementation, management can improve the flexibility of ERP implementation and can take appropriate actions to respond to the changing ERP implementation environment, to achieve more a successful ERP implementation that better meets the needs of the organization.
Subjects
Active management; ERP; Managerial flexibility; Real options
Other Subjects
Active management; Changing environment; ERP implementation; Managerial flexibility; Real Options; Enterprise resource management; Information management; Information systems; Planning; Resource allocation; Enterprise resource planning
Type
conference paper