Abstract – “Costs to consider in connection with the implementation of a new ERP system” Date: January 8th 2013 Level: Master thesis in business administration, 15 ECTS Institution: School of Sustainable development of society and technology, Mälardalen University Authors: Sanna Hellblom-Björn Title: Costs to consider in connection with the implementation of a new ERP system Tutor: Cecilia Lindh Keywords: ERP-system, business system, implementation, implementation costs Research question: What costs and issues should companies take into account in order to  establish a realistic budget in connection with the implementation of a new ERP system, and increase the chances for a successful implementation? Purpose: The purpose of the paper is to investigate the hidden costs that may arise in connection with the implementation of an ERP system that companies should take into account in order to establish a realistic budget. The paper will also examine how companies can reduce their costs and affect the outcome of the implementation. It should be investigated by means of interviews, reports and articles. Method: In order to answer the question in the paper secondary data is collected in the form of articles, books and reports. Primary data was collected through interviewing a company that has implemented a new business system, a company that performs implementations and a Senior manager of ERP Services. The theoretical framework and the empirical results are the basis for the analysis. Based on a comparison with the theoretical framework and empirical findings, conclusions could be drawn. Conclusion: There are certain items in the budget, drawn up in the context of an implementation that is difficult to estimate, with the result that they are often exceeded. The conclusions drawn in this study are that the costs for the training of staff, customization of the system, conversion of data and upgrading of the system are usually underestimated. Companies can reduce their costs in connection with implementation by the use of internal staff for education instead of hiring external consultants that increases costs. A well-defined implementation strategy as well as an excellent preparatory work is the key to a successful implementation. / Sammanfattning - ”Kostnader att ta hänsyn till i samband med implementering av nytt ERP system” Datum: 8 januari 2013 Nivå: Magisteruppsats i företagsekonomi, 15 ECTS Institution: Akademin för hållbar samhälls- och teknikutveckling, HST, Mälardalens högskola Författare: Sanna Hellblom-Björn Titel: Kostnader att ta hänsyn till i samband med implementering av nytt ERP system Handledare: Cecilia Lindh Nyckelord: ERP-system, affärssystem, implementering, implementeringskostnad Frågeställning: Vilka kostnader och aspekter bör företag ta hänsyn till för att kunna upprätta en realistisk budget i samband med implementering av nytt ERP system samt öka chansen för en lyckad implementering? Syfte: Syftet med uppsatsen är att undersöka vilka dolda kostnader som kan uppstå i samband med en implementering av ett ERP system som företag bör ta hänsyn till för att kunna upprätta en realistisk budget. Uppsatsen kommer även studera hur företag kan minska sina kostnader samt påverka utfallet av implementeringen. Det ska undersökas med hjälp av intervjuer, rapporter samt artiklar. Metod: För att besvara uppsatsens frågeställning har sekundärdata samlats in i form av artiklar, litteratur samt rapporter. Primärdata samlades in genom att intervjua ett företag som implementerat ett affärssystem, ett företag som utför implementeringar samt en Senior manager of ERP Services. Den teoretiska referensramen samt de empiriska resultaten ligger till grund för analysen. Utifrån en jämförelse med den teoretiska referensramen samt empirin har slutsatser kunna dragits. Slutsats: Det finns vissa poster i budgeten som upprättas i samband med en implementering som är svåra att uppskatta, vilket medför att de verkliga kostnaderna för implementeringen ofta överskrider de budgeterade kostnaderna. Slutsatserna som dragits i studien är att kostnader för utbildning av personal, specialanpassning av systemet, konvertering av data samt uppgraderingskostnader är de som vanligtvis underskattas. Företag kan minska sina kostnader i samband med implementeringen framför allt genom att använda sig av intern personal för utbildning istället för att hyra in externa konsulter som ökar kostnaderna. En väldefinierad implementeringsstrategi samt ett väl genomfört förarbete är nyckeln till en lyckad implementering.

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When adopting standardized ERP systems organizations also adopt standardized processes. These processes are integrated in the organization. The integration of standardized business processes redefines the business while standardization also leads to more indistinguishable business processes. Standardization is a prominent property of SAP ERP. When organizations implement SAP they also implement the SAP way of doing business. The research question is based on a consideration whether increased standardization, as part of SAP ERP, may limit the organization’s possibility to change.To examine the question the thesis use interviews with a business organization and SAP consultants as well as document studies. The results of the empirical work point to the fact that standardization is not limiting opportunity to change. Rather standardization is viewed as a necessary structure that is more of an organizational change enabler than a limiter. The enabling view of standardization is a consistent finding from the empirical study.

Given the continuous improvement of IT, the organizational information system moves from single department system to integrated organizational system, like the ERP system. Because of competitive commercial environment, the market of integrated system has developed quickly. It¡¦s important to apply domain knowledge of the organization when an information system is adopted. If the organization does not consider domain knowledge, it will bring less effect to the organization. On the other hand, the consultant company hopes the case be dealt with a package solution to save cost. Therefore, adjusting both sides becomes a critical way to reach the successful adoption. This study attempts using the view of knowledge transfer to investigate how enterprise and ERP consulting company to exchange knowledge. Computer efficacy will become the adjustable power to make two powers fit. Good computer efficacy will bring two advantages. One is to avoid too much customization. The other is to step away the package¡¦s type of ERP implementation. This study used deeply discussion to interview four adoption company and two consultant companies to prove the relation of knowledge transfer model. The result of study shows that apparently positive effect between interaction and knowledge transfer. The better knowledge transfer will provide the better quality of ERP system. The computer efficacy in the user company will provide balance in knowledge, avoiding the situation that the consultant company might be too powerful to lower the ERP system quality.

For industries in Taiwan¡A marching toward 21st century indicates the importance of globalization and economics of scale.Through merge and acquisition, Hi-Tech companies attempt to expand their business domain and market share¡A leading to global competitiveness to improve market position in the world. In this wave of competition¡A because of wide-spread use of Internet and promotion by the government¡A the issue that enterprises apply information technology to help management and administration has become essential. In the process enterprises need to organize knowledge and intelligence capital when they implement information technology and organization restructuring. Then benefit of the construction of information system will ferment progressively. In view of this¡A this research tries to utilize the case study research methodology¡A and selects three cases from the Hi-Tech industry: Passive component industry¡A IC packaging industry ¡A and SAP consultant firm. Based on the perspectives of transmitter and recipient¡A the ERP implementation has covered information technology capability ¡A knowledge transfer process ¡A and organizational performance. Although there are differences in ERP implementation experience in these three cases¡A they all want to retain related knowledge in the organization eventually. For this purpose, they have adopted ASAP methodology to guide implementation. choose to channel into the way theory and do for the blueprint with the standard of SAP. No matter the first or the second time during the process of implementation¡A every organization might share the analogy of the break-in and adjustment for the ERP system. Organization memory are gradually formed via system usage and personal experience. More adaptation on the part of the user will bring in fit between system and people. Finally¡A propose four suggestions in accordance with the result of study: 1.While channelling into the new information system¡A effective information science and technology is used; Include the basic resource of science and technology of information and tactics to combine¡A can reduce the unnecessary interrupt in the transmittance process. 2.Information science and technology is related to IT ability maturity to use¡Ahigh ability can solve more difficulty problem¡Aand the industry produced positive influence to that enterprises operate through the application of relevant knowledge after the information system channels into. 3.In order to channel into the case of SAP ERP ¡A the case channels into certain methodology¡A but because the tactics difference ¡A pay to leading precess time and cost¡A cause the influence of a certain degree. 4.In the knowledge transmit process¡A setting-up of the social network between motive¡A trust to the cooperative partner¡A cooperative partner's partner channelling into it¡A knowledge absorbability¡Aetc.¡A it is enterprises that channel into the key factor influencing the performance after the implementaion of ERP system.

Fiercely global competition and Taiwan¡¦s readiness to go along with WTO¡¦s requirement have put tremendous pressure on companies on this island to be more responsive to market by becoming more internally integrated enterprise and leveraging limited resources to exert synergy. The motivation that ERP systems are implemented are from several sources: internal system integration from an Intranet prespective, process efficiency improvement, upgrading legacy system, imitation from competitors. The electronics industries, which have been taking orders outsourced from multi-nation companies, are under great pressure from their international partners to implement ERP systems in order to capture the synergy effect of supply chain management. In addition, government subsidies for IT related investment in responding to Y2K crisis has encouraged companies to replace their old systems with ERP systems. The major problem confronted to the company that has implemented an ERP system is how to realize the benefits accompanied with the ERP implementation. Managerial adaptation is usually required when companies introduce a new technology. Thus, this research applies Leonard-Barton¡¦s perspective as the reference structure and adopts case study methodology to investigate how the three dimensions (technical, delivery system and organizational performance) could be related to the four chosen companies (an adaptor manufacturer, a passive component manufacturer, an IC packaging company and a LCD/LCM manufacturer). The data was collected mainly through semi-structured interviews. By doing the above, this research would like to explore the relationship between ERP implementation and organizational adaptation. Based on conventional wisdom, business process reengineering(BPR) goes together with ERP implementation. The research results indicated that BPR in these four cases was conducted according to the built-in system flows of the ERP package adopted. Because of this system-oriented implementation, the targeted company can exploit the integrity and internal flow of the implemented ERP to improve its information flows and strengthens the connection across different departments in the company. The system integrity and the paradigm of built-in flow are the main benefits derived from ERP implementation from the technology perspective. Guided by the built-in flow, the company can adapt itself through learning and obtain potential synergy. However, by so doing, the company is exposed to the risk of system function inadequacy and the deleterious impact brought by BPR, which is conducted without active participation of the user organization. In summary, the potential hazard of technology dimension comes from system function inadequacy and system transplant without conducting proper BPR. This in turn will increase the risk of software project and incur potential costs such as compromise and system tuning. According to data available, this research suggests that: 1.In case that ERP system function does not meet customer requirement, the system integrity should be preserved. 2.Guided by the built-in ERP system flow, the company can keep learning and achieve evolutionary change. 3.Change management is essential to ERP system delivery in order to realize the benefits of implementation. In summary, ERP implementation requires a careful mapping analysis of system function and user requirement. In addition, companies should pay more attention to managerial adaptation to enable organizational change and gain benefits through continuous learning.

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In recent years, government attention to Hi-Tech industry. Almost all the policies agree more on the Hi-Tech industry. This makes the management of the traditional industry the more difficult. Especially the textile industry. Face strong competition and consider the cost, enterprises move to other countries with lower cost of labor outside one after another. This causes the industry's cavity crisis of textile industry. Under the circumstances that the government policy profit is stimulated more. Enterprises implement e and automation. There are many failure examples of enterprise e. So, if can analyze the e course and research for the traditional industry, it maybe the traditional industry to consult the basis while assessing and implementation enterprise e, and then improve e probability succeeding. The rise of the internet network, has driven enterprise's electronic agitation, such famous diction as ERP, SCM, CRM, KM, BI, etc., All what's frequently heard can be repeated in detail in enterprises, should be according to accepting completely only? The demands of enterprises? The doing in the test amount of the cost? How to implement? It proofs CEO¡¦s management intelligence. The study probe the key factor of success for dyeing and finishing of traditional industry, by implement the information system.

<p>Organizations are now more than ever before faced with rapid changes in the market place and the need to stay competitive, profitable and satisfy customers and suppliers has driven them to seek technologies that will help them realize these goals. Two of the main con-tenders are Enterprise Resource Planning (ERP) and E-business related technologies. There appear not to be so many publicized literatures on the relationship between ERP and E-business. It is based on this that this report studied six (6) cases to examine the value of ERP to E-business. This study discusses their relationship, how they impact each other and how they can be made to be more useful when integrated using Exploratory Data Analysis (EDA) and empirical research. What transpires from this research is that both vendors and organizations using these two technologies assigns specific values that ERP has on E-business according to their degree of importance. These values in order of importance are; increased competitiveness, increased agility and speed of business operations, improved communication, increased sales, improved business processes, reduced cost and increased profitability. Finally the study examines these values and concluded based on these values to suggest the implications for future research.</p>

The Nature of Syntactic Gender Processing in Spanish: An ERP StudySyntactic gender as a lexical feature has been studied via picture-word interference paradigms in many languages. While effects have been found for noun phrase production in many languages, no effects have been found in Spanish, despite the fact that articles, nouns, and adjectives have a syntactic gender. Cubelli et al. (2005) found inhibitory effects in bare noun production in Italian which led to the hypothesis that such effects could be found for Spanish. Experiments 1 and 2 represented attempts replicate Cubelli et al.'s findings (Experiment 1 used an auditory distractor word and Experiment 2 a visual distractor), however no gender congruency effects were found. Experiment 3 attempted to generate congruency effects by requiring subjects to utilize gender-marked demonstratives and adjectives but still no effects were found. The lack of effects gave rise to the proposal that gender is not accessed during noun phrase production in Spanish and that the extreme regularity of the gender-marking system makes an article-plus-noun phrase more akin to a single lexical unit that can be accessed without an explicit synthetic process. Experiment 4 contrasted simple noun phrases that might be directly retrieved to constructions with long-distance dependencies, for which access to abstract gender features is relevant to parsing hierarchical sentence structure and aimed to distinguish these distinct cognitive processes via event-related potentials. The hypothesis was that a local gender violation in a sentence like "la piano" (the-fem piano-masc) would elicit a LAN as compared to the correct alternative, while a long-distance violation like "el piano que compré ayer es antigua" (the-masc piano-masc that I bought yesterday is antique-fem) would elicit a P600. All violations elicited a LAN and all violations involving adjacent segments elicited a P600; critically, the long-distance violation did not elicit a P600. It was concluded that the P600 reflects a repair process which occurs when such repair is not costly to the parser. Experiment 5 was a behavioral study using the stimuli from Experiment 4 with an error detection task which confirmed that subjects were sensitive to all error types.