ERP and Information Systems

Integration or Disintegration

Tarek Samara

• Publisher: Wiley-ISTE
• Year: 2015
• Print ISBN: 9781848218963
• eBook ISBN: 9781119232742
• Edition: 1
• Topic: Computer Science
• Subtopic: Information Technology
• Index: Computer Science

This research attempts to explore and identify eventual relationships between the evolution of ERP systems and information systems integration or disintegration. The aim of this research is to know if the relationships between the ERP systems and the information systems are guided by certain factors and, as a result, to understand, more in-depth, the factors affecting these relationships. More precisely, this analysis aims to study whether assigned values given to these factors could guide the evolution of ERP systems in a manner that promotes IS integration; and if the opposite assigned values to these same factors could guide the evolution of ERP systems in a manner that provokes IS disintegration instead.

1
Definition of Research Terms

This chapter defines the research terms. We turn our attention to the definitions of the artifacts under consideration because the study of a discipline is principally the study of the language of the discipline [POS 88]. Agreed-upon terms lead to agreed-upon meanings [DAV 05].

1. – an enterprise resource planning (ERP) system is an integrated software solution, typically offered by a vendor as a package that supports the seamless integration of all the information flowing through a company, such as financial, accounting, human resources, supply chain and customer information [DAV 98]. An ERP consists of a set of fully integrated modules that run out of a single database. It covers all functions of the company and allows users to have real-time access to data. ERP systems contribute to integration in two ways, process-wise and data-wise: “the uniqueness of the database and the adoption of workflow management systems support the integration of the information flows that connect the different parts of the firm” [BER 02]. These systems are comprehensive packaged software solutions which aim for total integration of all business processes and functions [GAR 05]. For the purpose of our research, we distinguish between two types of ERP (first or second generation):
   1. - ERP first generation (1st G): we have chosen to use “1st G” to indicate an ERP system that comprises old modules only (finance, accounting, controlling, treasury, human resources, production, material management, sales and distribution, plant maintenance, project system and quality management). Most ERP systems before 2005 can be considered to be from this first generation. According to the definition of ERP, this package must be sold by one vendor,
   2. - ERP second generation (2nd G): we use the term “2nd G” to refer to an ERP system that comprises both old modules (ERP 1st G) and new modules (customer relationship management (CRM), supplier relationship management (SRM), supply chain management (SCM), product lifecycle management (PLM), business intelligence (BI), e-business, etc.). ERP systems after 2005 can be considered to be progressing toward the second generation. According to the definition of ERP, this package must be sold by one vendor.
2. – A total integration of information system (IS) (TIIS) is indicative of complete integration (integration rate is 100%); for example, when the IS of a firm consists of only one ERP system such as SAP or Oracle [ANI 01]. This ERP system could be 1st G or 2nd G, according to the users’ needs and/or the implementation date (for example, 2000 or 2013).
3. – A hybrid integration of IS (HIIS) describes architecture that is more or less integrated. For example, the IS comprises different applications and ERP systems. It is a well-known fact that some legacy systems are not replaced when companies adopt the ERP solutions [THE 01]. HIIS is a set of subsystems (including ERP systems and other applications) that are more or less integrated [SAM 04].

In addition, an IS could become an HIIS when the architecture comprises many “Best of Breed (BoB)” applications. Some organizations have developed their own customized suites of enterprise applications, an approach known as a BoB information technology (IT) strategy [LIG 01]. Due to the fact that the packages of BoB applications come from different vendors, this strategy can be associated with extensive compatibility and integration issues [MAC 08].

A BoB IT strategy could also lead to an HIIS that is composed of many ERP system...

Table of contents

• Cover
• Table of Contents
• Title
• Copyright
• Foreword
• Introduction
• 1: Definition of Research Terms
• 2: ERP: Contribution and Trends
• 3: The Research Question and Methodology
• 4: Literature Review: Factors Affecting the Relationships between the ERP System’s Evolution and IS Integration or Disintegration
• 5: Correlation Between Research Factors
• 6: Case Studies
• 7: Discussion: Relationships between Evolution of ERP Systems and IS Integration or Disintegration
• 8: Interests and Limitations of the Research
• Conclusion
• Bibliography
• Index
• End User License Agreement