Successful implementation of new technologies and Information System (IS)
is vital for sustaining and enhancing the competitive position of an
organization (Jing and Qiu, 2007). One important strand in management thinking and
practice which reflected these trends was the attempt to relate Information
Technology (IT)-based development to the strategic needs of the business, and
thereby, develop a competitive advantage (Robert and Walter, 2000). IS, such
as manufacturing control systems, have undergone a major transformation since
the early introduction of Material Requirements Planning (MRP). Over the years,
a family of management practices took shape, which accompanied these
`closed-loop' MRP and Capacity Requirements Planning (CRP) systems and gained
status as de facto standards. These practices came to be
called Manufacturing Resource Planning (MRP) or MRP II. As, computing concepts and technology advanced
with time, the scope of the business systems widened to become Enterprise
Resource Planning (ERP).
Today's fiercely competitive business environment requires greater
interaction between customers and manufacturers. ERP facilitates this process by
integrating the company-wide IS with the potential to go across companies (Pramod,
2002). From business perspective, ERP has expanded from coordination of
manufacturing processes to the integration of enterprise-wide back-end processes.
The business processes that were traditionally disjointed and
functional-oriented were made seamless and process-oriented. From technological perspective,
ERP has evolved from legacy implementation to more flexible tiered
client-server architecture (Rashid et al., 2002). ERP helps get the most benefits of
databases and ensures that the system environment is built following an open
system approach (Al-Mashari, 2003). Companies can now standardize
business processes with ERP system and more easily ratify best practices. By creating
more efficient processes, companies can concentrate their efforts on serving
their customers and maximizing profit for the organization (Laframboise and
Reyes, 2005). As ERP continues to evolve into a real-time planning tool, it will play
a more strategic role in helping companies achieve their business objectives. |