International Divider Walls

The subject of this teaching case is the Enterprise Resource Planning (ERP) system implementation at International Divider Walls, the world market leader in design, production, and sales of divider walls. The implementation in one of the divisions of this multi-national company had been successful, and now the Chief Information Officer (CIO) was asked to advise the board of directors on the next step in the worldwide roll out of the ERP system. A choice had to be made between a centrally managed ERP option, and an option in which each of the divisions set up its own ERP project.     

Complementary controls and ERP implementation success

Many organisations have sought to improve their competitiveness by investing in advanced information technology, such as Enterprise Resource Planning (ERP) systems. They have implemented ERP systems for a variety of reasons, including solving year 2000 issues, reengineering business processes, and facilitating e-business. The implementation of an ERP system and associated changes in business processes, however, is not straightforward. ERP implementation projects are but another example of an information systems development project that needs to be controlled, yet the implementation of an ERP system is significantly different than a traditional system implementation. Control can be exerted by both formal and informal means [Kirsch, L.J., V. Sambamurthy, D-G. Ko, and R.L. Purvis. 2002. Controlling information systems development projects: The view from the client. Management Science. 48(4): 484–498]. Research has demonstrated that single modes of control are not sufficient, rather that a portfolio of control modes should be utilized. We expand upon this concept and suggest that this need for a mix of overlapping and redundant control mechanisms identified in the literature is explained through the use of the theory of complementarity [Milgrom, P. and J. Roberts. 1990. The economics of modern manufacturing: Technology, strategy and organization. American Economic Review 80: 511–528; Milgrom, P. and J. Roberts. 1994. Comparing equilibria. American Economic Review 84: 441–459; Milgrom, P. and J. Roberts. 1995. Complementarities and fit: Strategy, structure, and organizational change in manufacturing. Journal of Accounting and Economics. 19: 179–208; Topkis, D.M. 1998. Supermodularity and Complimentarity. Princeton University Press]. Surveys of chief information officers and internal auditors were conducted to obtain data on the controls used in ERP implementations. We find that groups of complementary controls need to be employed in the implementation of ERP systems to achieve a successful implementation.     

Development and validation of an improved DeLone-McLean IS success model - application to the evaluation of a tax administration ERP

Enterprise resource planning (ERP) is critical to an organization’s success. However, the factors that contribute to the success and usage of these ERP systems have received little attention. This study developed and validation of an improved DeLone-McLean IS success model. Additionally, we examined the factors which influence ERP system usage, employee satisfaction, information quality, service quality, and system quality, as well as the factors that influence the system’s overall success. The proposed model is based on a mixed-methods case study (MM-CS). The results show that the proposed model significantly measures the success of an ERP system. The organizational climate, the information quality, the system quality, and the service quality all have an impact on the usage of an ERP system. The proposed model also shows that the use of an ERP system, training and learning, and the three information (IS) quality constructs are all significant predictors of user satisfaction. The results also indicate that gender and years of ICT use on the path of ERP users have a moderating effect on the relationship between teamwork & support and use.     

A ‘time–space odyssey’: management control systems in two multinational organisations

This paper analyses the effects of implementing an Enterprise Resource Planning system (ERP) upon management control in two multinational organisations. How ERP was configured in each corporation created different forms of distance and relations between headquarters and the scattered subsidiaries. The construction of spatial and temporal separations (i.e. distance) and how they were understood and managed had profound effects on management control. In one organisation the ERP reproduced existing structures and distance which permitted conventional accounting controls based on action at a distance to be maintained. The second organisation used ERP to collapse distance through real-time information in a matrix structure. This did not increase centralisation but rather produced constantly changing loci of control and managerial feelings of ‘minimalist’ control.     

Enterprise Resource Planning and a contest to limit the role of management accountants: A strong structuration perspective

The implementation and use of Enterprise Resource Planning (ERP) systems raise fundamental questions about the role of management accountants in an organisation. The case studied here, involving an attempt to establish an ERP system in an organisation funded by both the European Union (EU) and the Egyptian government, is an exploration of conflicting beliefs about the role of management accountants. Elements of strong structuration theory (a reinforced version of Giddens’ structuration theory) are used to analyse how the contest over the role of the management accountant in a new organisation was played out during the partially successful attempt to establish ERP in conjunction with a system that was felt to better support the requirements of the EU for performance-based budgeting. Despite the forward-looking dispositions of key actors within the organisation and from the EU, the role of the management accountant here became compressed to the traditional one of cost information collector and provider.     

Financial impacts of enterprise resource planning implementations

Debate exists regarding the contribution of information technology to firm performance reflecting predictions of a positive, negative, or nonexistent relationship. Prior research has examined technology and firm performance in the aggregate, however, this study focuses on a specific technology — Enterprise Resource Planning (ERP) and its impact on firm performance. Economic and industrial organization theories provide the basis for the examination of how ERP systems affect firm coordination and transaction costs. ERP systems are expected to: (1) reduce costs by improving efficiencies through computerization; and (2) enhance decision-making by providing accurate and timely enterprise-wide information. These effects should be associated with improved firm performance. This research finds, after accounting for within-firm variances, no significant improvement associated with residual income or the ratio of selling, general, and administrative expenses in each of the 3 years following the implementation of the ERP system. However, a significant improvement in firm performance resulting from a decrease in the ration of cost of goods sold to revenues was found 3 years after the ERP system implementation (but not in the first or second year after implementation). Further, there was a significant reduction in the ratio of employees to revenues for each of the 3 years examined following the ERP implementation.     

Centralized end-to-end identity and access management and ERP systems: A multi-case analysis using the Technology Organization Environment framework

System security is a top issue facing global organizations. This study investigates the constraints and benefits of a successful centralized end-to-end identity and access management (CIAM) implementation and the moderating role that ERP systems have in the implementation. We apply the Technology Organization Environment (TOE) framework to a case study approach. We find that organizational and technological factors result in lapses in IT governance and act as barriers to CIAM. Environmental factors also hinder CIAM implementation. Additionally, ERP systems facilitate the development of a CIAM due to integration and standardization of identities and automated provisioning. When the ERP system supports CIAM, the organization and its employees experience significant benefits including single sign-on capabilities, increased security and privacy, efficiencies in user provisioning and password management, and audit process improvement. Our results will be of value to any organization implementing CIAM and ERP. Researchers can also use our findings to further study IAM, ERP or extensions to the TOE framework.     

Assembly FG: An Educational Case on MRP II Integrated within ERP

This case teaches students how discrete (job order) manufacturing companies use Manufacturing Resource Planning (MRP II) within Enterprise Resource Planning (ERP) systems to plan purchase orders for direct materials and shop orders for work‐in‐process and finished goods. Students simulate MRP II integrated within ERP, using Microsoft Excel to learn MRP II's bill‐of‐materials (BOM) Explosion that plans order quantities and MRP II's scheduling logic that uses lead‐times to determine start dates for planned orders. Students explain why MRP II is most practical and effective when executed within ERP and how MRP II can reduce excess inventories, prevent inventory shortages, and help companies deliver quality products to customers on schedule. Also, students explain why BOM, inventory, and lead‐time inaccuracies can adversely affect the accuracy of MRP II‐planned replenishments and identify controls that reduce the risks of these inaccuracies.     

Not because they are new: Developing the contribution of enterprise resource planning systems to management control research

Enterprise Resource Planning systems are fundamentally bound up with the work of accounting, and have been seen to have transformative implications for the nature of organisational integration and control. This introductory essay briefly outlines the nature of Enterprise Resource Planning systems, noting the main lines of argument in their treatment in the accounting literature so far. It goes on to set the scene for the distinctive contribution of the two papers that follow, exphasising the way in which they offer a basis for re-evaluating our understanding of organisational integration and control through their detailed field work.     

Critical success factors for risk management systems

Despite the existence of extensive literature regarding risk management, there still seems to be lack of knowledge in the identification of critical success factors (CSFs) in this area. In this research, grounded theory is implemented to identify CSFs in risk management systems (RMS). Factor analysis and one‐sample t‐tests are then used to refine and rank the CSFs on the basis of the results of a survey which has been conducted among risk management practitioners in various types of Swedish corporations. CSFs are defined from three different perspectives: (1) the factors that have influence on the inclination and readiness of a corporation for implementing RMS; (2) The factors that are important during the design and implementation of RMS in a corporation and can significantly affect the success of RMS design and implementation; and (3) the factors that are crucially important to successfully run, maintain, and administrate RMS after the closure of the project of RMS design and implementation. A case study of a largely successful RMS is presented and discussed in terms of these key factors. This systematic approach toward understanding the taxonomy of the success dimension in RMS is important for re‐enforcing effective risk management practices.     

Using Reference Models within the Enterprise Resource Planning Lifecycle

ERP-specific reference models describe on a conceptual level the structure and functionality of enterprise resource planning solutions. However, these models focus on depicting executable processes and do not take into account tasks related to business engineering, system selection, implementation or change. This paper discusses how reference process models can be used within the entire ERP lifecycle. All phases of the ERP lifecycle have individual requirements for the management of the relevant knowledge. It will be shown how extended reference models can serve as a knowledge repository for enterprise resource planning. This paper includes several pragmatic recommendations for managers involved in ERP projects.     

Integrating enterprise resource planning (SAP) in the accounting curriculum: a systematic literature review and case study

This study investigates how an enterprise resource planning (ERP) software package SAP was integrated into the curriculum of an accounting information systems (AIS) course in an Australian university. Furthermore, the paper provides a systematic literature review of articles published between 1990 and 2013 to understand how ERP systems were integrated into curriculums of other institutions, and to inform the curriculum designers on approaches for adopting SAP, the benefits and potential limitations. The experiences of integrating SAP into an AIS course from both the students and teaching staff perspectives are described and evaluated. The main finding was the importance of resourcing the instructors with technical and pedagogical support to achieve the learning outcomes. The paper concludes by proposing critical success factors for integrating ERP effectively into an AIS course.     

Accounting Competencies and the Changing Role of Accountants in Emerging Economies: The Case of Romania

Over a recent short period, a number of interventions potentially helped move the Romanian accounting system away from being a tool simply used to support a planned economy. They include harmonization with the European Directives, the introduction of International Financial Reporting Standards (IFRS) and an increased move towards modern information technologies such as Enterprise Resource Planning (ERP) software. In this study, we directly explore these influences by applying job-offer analysis as a reflection of the current and future demand for accounting competencies. We first document current competencies expected from accountants in Romanian businesses and then assess the intervention impact on financial and management accountants. We hypothesize external influences would move Romanian accountants away from the traditional separate specialized positions towards more hybrid accounting positions, such as that adopted in the UK. Whilst our analysis supports a degree of transition with alignment to recent global trends, it also reveals some intransigence in the sense that management and financial accounting positions still tend to retain attributes associated with the two-cycle accounting system. Our findings have implications for harmonization issues and accounting education in Romania.     

Information system integration,enabling control and performance

The literature has demonstrated the complex relationship between information system integration approaches, such as Enterprise Resource Planning systems, and management control. In this paper, we begin our analysis by focussing on just one aspect of information system integration, namely in terms of data architecture, commonly referred to as the single database concept. We argue that whilst this particular aspect of integration should be related to perceived system success, the variety of ways in which information might be drawn on in practice means it provides no strong basis for predicting a link to business unit performance. Instead, building on Adler and Borys [Adler, P., & Borys, B. (1996). Two types of bureaucracy: Enabling and coercive. Administrative Science Quarterly, 41(1), 61–90] we argue that the level of information system integration fosters the four design characteristics that make up an enabling approach to management control. Each of these in turn is related to both perceived system success and business unit performance. We present PLS analysis of survey data collected from 169 managers that broadly supports these expectations.     

晶圆代工厂基于OracleEBS的销售收款模块应用研究

半导体行业由于机台设备昂贵,产品生产环节较多,导致大部分晶圆代工厂在经营模式的选择上会比较倾向于Turnkey型的一站式服务。这种经营模式有利于代工企业及时回笼资金,但不利于管理系统合理匹配产品生产各阶段的收入与费用。本文重点研究ERP系统在半导体代工行业销售收款循环的应用特色。首先分析了晶圆代工行业中ERP系统销售收费计价方面的特点,归纳出ERP系统在晶圆代工企业实施中要关注的问题以及要进行客制化开发的内容,进而提出可能的经营模式、计价方案、解决措施,引导企业在实施ERP时正确选择解决方案。     

Accounting benefits and satisfaction in an ERP environment

Over the past decade, organizations all over the world have adopted enterprise resource planning (ERP) systems. There has been little research at a global scale regarding the accounting benefits of adopting enterprise systems. Moreover, there are virtually no studies that examine in detail the relation between accounting benefits and ERP user satisfaction. Sutton (2006) addressed the need for empirical research on the impact of ERP in terms of accounting advantages and disadvantages. The principal aim of our study was to investigate the accounting benefits that the adoption of an ERP system by companies may entail in relation to ERP user satisfaction. This study explored the impact that the ERP system has had on accounting information and practice. This study also examined whether or not there are differences between accountants and IT professionals concerning how each group assesses ERP accounting benefits and ERP user satisfaction. The participants of this study comprised 175 accountants and 96 IT professionals from 193 companies in Greece. The empirical evidence confirms a number of accounting benefits derived from ERP systems particularly for accounting process. No statistically significant differences were found between the perceptions of accountants and IT professionals concerning ERP accounting benefits. Furthermore, this research identifies factors related to accounting benefits and ERP cost which affect the level of ERP user satisfaction. The implications of these results for practice and research are explored. The findings of this study will be of value to any companies considering the inclusion of their accounting techniques and operations in an ERP system. Furthermore, the results of this study will provide stimulus for consequent research in the field in order to further examine and account for the accounting benefits that can occur from ERP system implementation as well as the effect of those benefits on ERP user satisfaction.     

The hard side of change management

Everyone agrees that managing change is tough, but few can agree on how to do it. Most experts are obsessed with "soft" issues, such as culture and motivation, but, say the authors, focusing on these issues alone won't bring about change. Companies also need to consider the hard factors-like the time it takes to complete a change initiative, the number of people required to execute it, and so forth. When the authors studied change initiatives at 225 companies, they found a consistent correlation between the outcomes of change programs (success versus failure) and four hard factors, which they called DICE: project duration, particularly the time between project reviews; integrity of performance, or the capabilities of project teams; the level of commitment of senior executives and staff; and the additional effort required of employees directly affected by the change. The DICE framework is a simple formula for calculating how well a company is implementing, or will be able to implement, its change initiatives. The framework comprises a set of simple questions that help executives score their projects on each of the four factors; the lower the score, the more likely the project will succeed. Companies can use DICE assessments to force conversations a bout projects, to gauge whether projects are on track or in trouble, and to manage project portfolios. The authors have used these four factors to predict the outcomes and guide the execution of more than 1,000 change management programs worldwide. Not only has the correlation held, but no other factors (or combination of factors) have predicted outcomes as successfully.     

An experiential approach to learning about the balanced scorecard

The balanced scorecard (BSC) is an integrated strategic performance management framework that helps organizations translate strategic objectives into relevant performance measures. This paper offers guidelines for implementing an experiential approach to learning about the BSC through the study of “real-world” organizations. This approach emphasizes hands-on experience with the team-based, cross-functional, and strategic aspects of management accounting designed to address several educational objectives, including: understanding organizational strategy and critical success factors; gaining insight into how to measure performance; and developing oral presentation and team-building skills. Specific examples of classroom materials to facilitate implementation of this approach in management accounting courses at both graduate and undergraduate levels are also offered.     

DRG-based prospective pricing and case-mix accounting—Exploring the mechanisms of successful implementation

Escalating health care expenditures have brought on the need for restructuring health care delivery. A common response to this problem has been to seek market-based solutions. In the literature, however, increasing concern has been expressed that hospital management reforms will fail or will have only a limited impact. This longitudinal case study extends our understanding of the effects of implementing DRG-based prospective pricing and case-mix accounting systems for hospital management control in a specific health care setting. Moreover, this study contributes to current knowledge by focusing on the mechanisms explaining successful implementation of new accounting and control systems in the health care sector. A deep understanding of these mechanisms may help us to design better management control systems, and thus circumvent problems in implementing these systems. Our study suggests that successful implementation in the studied context is strongly dependent on the involvement of clinicians in this process. Integrated clinical and financial accountability, assigning responsibility for implementation to clinicians, freedom in choosing appropriate control tools, and flexibility in adoption all facilitated implementation. Furthermore, we argue that this process has also been advanced by the gradual implementation of these reforms and intensifying institutional pressures.     

Critical success factors associated with the implementation of enterprise risk management

The present research aimed to identify which critical success factors have the most influence on the implementation of Enterprise Risk Management – ERM, taking into consideration the important mission to ensure the survival, growth, and perpetuity of businesses in an environment with strong technology integration, global competition, and political, cultural, and economic contexts. To achieve this objective, a systematic and structured literature review was conducted, making it possible to identify 10 critical success factors for ERM initiatives that were analyzed and detailed, based on the literature findings and consultation with experts.