1、PDF外文:http:/ Process Management Journal, 2001, 7(3):276-284 ERP implementation issues in advanced and developing countries Abstract There is an increasing need to implement a total business solution which supports major functionalities of a business. Enterprise resource planning (ERP) software is de
2、signed to meet this need, and has been widely adopted by organizations in developed countries. Meanwhile, ERP is beginning to appear in many organizations of developing countries. Little research has been conducted to compare the implementation practices of ERP in developed vs developing countries.
3、Our research shows that ERP technology faces additional challenges in developing countries related to economic, cultural, and basic infrastructure issues. This article identifies a range of issues concerning ERP implementation by making a comparison of advanced and developing countries. Key wo
4、rds: Enterprise Resource management; Implementation; Developing countries. Enterprise resource planning (ERP) is an industry term for the broad set of activities supported by multi-module application software that helps a manufacturer or a service business manage the important parts of its business.
5、 Evolving from MRP systems, ERP has played a significant role in IT for several decades. Since the first symbiotic ERP product SAP created in 1972, ERP market revenues are expected to be as high as $52 billion by the year 2002. While there is wide acceptance of ERP in developed countries such as the
6、 USA, Canada, the UK, and Australia, developing countries lag far behind. At present, North America occupies 66 percent of the ERP market, Europe takes 22 percent, while the whole of Asia is only at 9 percent. However, due to economic growth, developing countries in Asia and Latin America are becomi
7、ng major targets of big ERP vendors. ERP in developed countries ERP systems have been widely used by companies in developed countries. Organizations in manufacturing, service, and energy industries adopt ERP to: automate the deployment and management of material, finance and human resou
8、rces; streamline processes and achieve process improvement; achieve global competitiveness. In this section, North America, Europe are selected as representative developed countries. North America (USA, Canada) Europeans designed the first integrated ERP system
9、SAP in Germany, 1972, whereas, organizations in North America seem to have richer experience in this kind of software and have used integrated software solutions for decades. As commercial systems evolved from material planning (MRP) to enterprise planning (ERP), companies continued investment to br
10、ing in newer systems. Currently, two out of three ERP deals in North America are replacement deals. The USA is the primary target of ERP and represents 66 percent of revenues for the major vendors. Before 2000, one major concern of North American corporations was Y2K problems. After Y2K, management
11、turned its eyes to extending its enterprises. Several trends have appeared. E-commerce is a major force. Organizations want their ERP systems to connect more tightly with suppliers and customers via e-commerce. Supply chain management (SCM) products, regarded as post-ERP, are now entering into North
12、 American organizations. SCM functions include demand forecasting, sourcing and procurement, inventory and warehouse management, and distribution logistics. Europe (UK, Germany, France) Europe is the second largest target ERP sales market (at 22 percent). Many big ERP vendors started their bus
13、iness from Europe; e.g. SAP AG, Baan, JBA International and Intentia. Historically, strong manufacturing industry is an underlying reason for so many ERP vendors in Europe. There are several reasons for Europes ERP market. First, economically advanced countries have a solid industrial and manufactur
14、ing base. Second, there is a strong national information infrastructure. Third, the multiple-language and multi-currency requirements make the ERP software attractive. Fourth, quality employees are available to implement advanced technologies. Characteristics of ERP implementation in developed count
15、ries It is easy to understand why North America and Europe occupy the largest ERP market. From national and environmental perspectives, these countries have excellent infrastructures which effectively facilitate IT diffusion. Strong economic base and growth further drive the need for new tech
16、nology. Governmental IT policy, deregulation and organizational enthusiasm for IT fuel technology development. New technologies such as ERP, SCM and others are quickly absorbed by organizations in almost all industries. From an organizational perspective, companies in developed countries are more li
17、kely to succeed. Higher IT maturity and favorable computer culture make organizations ready to handle complex technology. Also organizations are developing a strong process management orientation (Davenport, 1994). BPR is practiced frequently in North American and European countries. Some trends are
18、 observable. First, small and middle sized enterprises (SMEs) are becoming targets of ERP vendors. Second, ERP coupled with e-commerce functionality will dominate the market. E-commerce is becoming a new way of doing business between business and business (B2B) and between business and customer (B2C
19、). CIOs are planning to build electronic commerce and decision-support extensions to ERP implementations. Meanwhile, e-commerce based ERP systems are commercially available。 Third, SCM software is making inroads. Organizations are pursuing support for the whole supply chain beyond what ERP can
20、 provide. ERP in developing countries ERP software vendors are experiencing global expansion. Asia/Pacific and Latin American countries are taking the lead. The Asia-Pacific ERP market accounts for 9 percent of revenues, and Latin America for 3 percent. Economic expansion, especially in Asian countr
21、ies, is the major reason. Second, fierce competition and pressures from Western corporations force firms in developing countries to vigorously pursue information technology. However, ERP is in its early stages in developing countries. Inadequate IT infrastructure, governmental policies, small size o
22、f companies, lack of IT/ERP experience, and low IT maturity seriously affect the adoption decision. China, India are selected as representative countries for ERP discussion. China China has achieved impressive economic growth in recent years. It is undergoing a technological change with huge I
23、T investments in both public and private sectors. However, there are only a handful of companies using ERP systems. International vendors play a primary role. There are a few local software packages that are low cost but are primarily accounting and financial applications. For example, Yongyou1 software is widely utilized, but it focuses on accounting functions and is not a