20-07-2012, 02:23 PM
COMPETITIVE CONSTRUCTS OF ERP IMPLEMENTATION IN MANUFACTURING SECTORS IN CHENNAI CITY
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Abstract :
This paper evaluates and operationalizes eight competence constructs in ERP
implementation in Chennai City. Questionnaire base survey is conducted in three
organizations where ERP has been successfully implemented. The role of strategic IT
planning, executive and management commitment, IT skills, business process skills and
ERP training and Learning has been determined in CavinKare, Manali Petro Chemicals
and Britannia in Chennai. It was concluded that top management and project manage
plays vital role in successful ERP implementation. Moreover business process
reengineering, data conversion from legacy system and employees training and learning
are the main issues in ERP implementation.
Introduction
n ERP system is a packaged business
software system that allows a company to
“automate and integrate the majority of its
business processes, share common data and practices
across the enterprise, and produce and access
information in a real-time environment”. ERP systems
are programs that provide integrated software to
handle multiple corporate functions including finance,
human resources, manufacturing, materials
management, and sales and distributions. SAP,
PeopleSoft, Oracle, JD Edwards and Bann are the
major ERP vendors. AMR Research depicts that the
sales of ERP software were $180 billion upto 2002
and the ERP market may reach $1 trillion by 2010 by
classifying evaluation of ERP systems into
manufacturing integration enterprise integration,
customer-centric integration and inter-enterprise
integration.
Literature review
The implementation consists of the configuration of
the ERP system and the introduction of corresponding
organizational and technical changes, like the
definition of new responsibilities or the design of new
interfaces. Implementation is defined for the purposes
of this study as the process starting after the decision
to acquire an ERP system has been made and ending
when the ERP system has been released into use with
full planned functionality and scope.
Research Design
This research identified strategic IT planning,
executive commitment, project management, IT skills,
business process skills, ERP training and learning and
change readiness as major constructs for successful
ERP adoption. Theoretical framework based on these
competitive constructs is given below:
This paper follows these eight constructs to assess
success of ERP adoption in CAVINKARE,
MANALI PETRO CHEMICALS and
BRITANNIA, all manufacturing industries had their
plant located in Chennai. CAVINKARE is India’s
largest manufacturers of hair-care, skincare, personal
care products, food and diary products. They are
primarily relied in contract manufacturing for many
years has now set up its own world class plant across
India one at Chennai to the demand for both domestic
and international market.
Hypothesis Testing
After the reliability of scales has been assessed, the
next stage is hypothesis testing. The author tested
hypotheses H1, H2, and H3 by using the mean scores of
significantly loaded explanatory variables, and in
hypotheses H4 and H5, the researcher analyzed the
intensity of association between factor variables with
Pearson’s correlation coefficient. To carry out this
test, the researcher created a score for each construct
from the mean of its component items.
Conclusion
This study is valuable to researchers and practitioners
interested in implementing Enterprise Resource
Planning systems in retail organization. The EFA
provides very interesting results by identifying the
factors that actually have an impact on the failure of
ERP implementation in manufacturing organizations.
The primary contributions of this paper are the
definition of competitive constructs associated with
the ERP implementation and the development of
multi-item measurement scales for measuring these
competitive constructs across manufacturing
industries around Chennai. Unlike much prior ERP
implementation research, this study takes a grounded
theory approach using ERP experts’ perceptions.
Future ERP implementation empirical research linking
these competitive constructs in causal models in an
ERP will benefit significantly from the existence of
relevant competitive construct definitions and good
measurement scales. A secondary contribution of this
work is the demonstration of a rigorous empirical
scale and item development process.