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Logistics Information Systems
PART V
ERP implementation, change and reporting
J.C. Wortmann
(Partly based on a paper with dr. Laura Maruster)
Fall 2016
Introduction
Many definitions for the term “ERP system” are available in literature (see for instance [19], p.285 or [10], p.22), but they are not sufficiently crisp for our purpose. Namely these definitions do not highlight the distinction between:
- Generic software: a standard software package as developed by vendor;
- Implemented package: an implemented (standard) software package as configured, extended or modified;
- Organizational information system: an organizational IS using a (standard) ERP system.
These three notions are completely different. The generic or standard ERP software package as developed by vendor is an artifact consisting of only software. This software goes through a number of life cycle stages, namely it is defined, designed, built, tested, released (or maintained), frozen, and finally withdrawn. A standard software package S is developed for a market, and upgraded in minor upgrades (for example in the form of service packs) or major upgrades (here denoted as releases). An upgrade by the vendor of a package Sn leads to a successor package Sn+1. Each upgraded package is a new artifact, with its own life cycle.
The standard software package can be implemented for a particular customer (configured and/or extended and/or modified, and populated with data), and is ready to be used by the customer; this results into another artifact consisting of software and data.
The organizational information system using a (standard) ERP system is not an artifact anymore, but is defined as a system of humans, software, equipment and data, which together inform the organization and its stakeholders [11].
In this syllabus, the term “ERP system” has the second meaning (implemented standard software) unless explicitly mentioned otherwise.
There are several terms in use to describe the possible choices (options) in implementing and changing ERP systems, viz. ‘configuration’, ‘customization’, ‘extension’, ‘modification’, ‘scope’, ‘deployment’ and ‘upgrade’. Below in the subsections 2 to 6, we review the meaning of these terms in literature. Moreover, we will discuss the choices related to upgrades by the vendor. Section 7 describes technical and organizational impacts of such choices.
One of the main advantages of enterprise-wide ERP systems is the availability of data for managerial purposes. However, it is not so easy or straightforward to transform the available data into meaningful information. Section 8 (Reporting) discusses the reasons why this issue is difficult. Moreover, this Section also provides an introduction into data warehousing and other techniques to circumvent the difficulties and grasp the advantages.
Options for configuration and customization
The concept of configuration ([2]) refers to setting parameters in the ERP package. It should be used to reflect the organization’s choices. Parameters determine the execution of logic in the ERP system, and the enabling or disabling of certain functionality (e.g. [19; 20; 26; 28]), or even of complete software modules (see Table 1, first row). The term ‘configuration’ may also refer to parameters determining the composition of different modules or software components within the ERP package [8]. Also, configuration may refer to specification or even personalization of ERP menus or user interfaces by vendor tools (see second row in Table 1). The ‘look-and-feel’ of screens used in sessions may also be configured (just as the form of reports, see third row in Table 1). Finally, ‘configuring ERP’ pertains to designing reports from ERP by using software tools provided by the vendor (see third row in Table 1).
Accordingly, the act of configuring ERP transforms generic ERP software into implemented ERP software. Obviously, the set of potential configurations is large, and an implemented ERP package is by definition always in a “configured” state. A chosen or changed configuration needs to be documented, and users have to be trained in this configuration, and sometimes testing is also necessary (e.g. [25]). Note that it is also possible to transform an implemented ERP package from one configuration into another configuration. This is a first example of ERP change.
Options for configuration | |
Parameter setting | Parameter setting is used to choose between different executions of processes and functions in the software [6]. It is also used to determine which functions or modules will be enabled or disabled. The number of parameters in a system is considerable, therefore they may be organized in decision trees, tables, models, etc. |
Screen configurators and screen masks | The input/output screens employed in user sessions are often subject to user preferences, and vendors may provide sophisticated ways for implementers to configure these screens. Screen masks are used for creation of new sessions from existing ones by merging session screens [6].This is meaningful if many foreseen fields are not used in an implementation. This form is used in order to simplify sessions and increase usability. |
Configuring standard ERP reports | The layout of standard reports, whether printed on paper or displayed on a screen may be adjusted by parameters, much like in office software. |
Table 1. Options for configuration.
In contrast to configuration, customization refers usually to changing the software and/or adding new functionality to the software (e.g. [4; 8; 14; 24; 27; 29; 31] ). In most literature, it involves modifications or extensions of an ERP package to match the organizations’ existing processes [25]. However, in SAP parlance the term ‘customization’ is used in the above meaning of ‘configuration’. Others (e.g. [3; 16]) use ‘customization’ in a broad, but unspecified meaning. Accordingly, the term ‘customization’ is ambiguous. For this reason, the term ‘customization’ will be avoided in the remainder of this syllabus.
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