what is erp

InformationSystemsFrontiers2:2,141±162,2000#2000KluwerAcademicPublishers.ManufacturedinTheNetherlands.WhatisERP?HelmutKlaus,MichaelRosemannandGuyG.GableInformationSystemsManagementResearchCenter,QueenslandUniversityofTechnology,Brisbane,AustraliaAbstract.Thoughenterpriseresourceplanning(ERP)hasgainedsomeprominenceintheinformationsystems(IS)literatureoverthepastfewyearsandisasigni®cantphenomenoninpractice,through(a)historicalanalysis,(b)meta-analysisofrepresentativeISliterature,and(c)asurveyofacademicexperts,werevealdissentingviewsonthephenom-enon.Giventhisdiversityofperspectives,itisunlikelythatatthisstageabroadlyagreedde®nitionofERPcanbeachieved.Wethusseektoincreaseawarenessoftheissuesandstimulatefurtherdiscussion,withtheultimateaimbeingto:(1)aidcommunicationamongstresearchersandbetweenresearchersandpractitioners;(2)informdevelopmentofteachingmaterialsonERPandrelatedconceptsinuniversitycurriculaandincommercialeducationandtraining;and(3)aidcommunicationamongstclients,consultantsandvendors.Increasedtranspar-encyoftheERP-conceptwithinISmayalsobene®totheraligned®eldsofknowledge.KeyWords.transactionprocessingsystems,managementinfor-mationsystems,managementsupportsystems,productionplanninginformationsystems,informationsystemevolution,enterpriseresourceplanning,literaturereview1.Introduction1.1.BackgroundAnewclassofpackagedapplicationsoftwarehasemergedoverthepastdecade,ostensiblyconsoli-datingunderasinglebanner,amulti-billiondollarindustrythatincludestheworld'sfourthlargestsoftwarevendor,severalotherofthelargestsoftware®rmsandtheworld'slargestmanagementconsultingorganisations.Usuallycalledenterpriseresourceplanningsystems(ERP),thesecomprehensive,pack-agedsoftwaresolutionsseektointegratethecompleterangeofabusiness'sprocessesandfunctionsinordertopresentaholisticviewofthebusinessfromasingleinformationandITarchitecture.Mostverylargeorganisationsworld-widehavealreadyadoptedERP,andincreasinglysmall-andmedium-sizedenterprises(SMEs)tooare®ndingitcosteffectiveandacompetitivenecessitytofollowsuit.ThoughthebreadthandtightintegrationofERPhasonlybecomeavailableinrecentyears,ERPhaveapedigreeinlarge,packagedapplicationsoftwarethathasbeeninwidespreadusesincethe1970s.Nonetheless,untilrecently,ERPandpackagedsoftwaregenerally,thoughpervasive,havebeenunder-researchedininformationmanagementandinformationsystemsandhavebeenunder-representedincurricula(Gable,1998).WhileERPhavegainedsomeprominenceintheISliteratureoverthepastfewyears,weobservesomedissentamongacademicsonthenatureandde®nitionofERP.Someauthors(Davenport,2000;LaudonandLaudon,2000)adviseagainsttheuseofthetermERPandsuggestalternatives;others(e.g.,Pawlowski,Boudreauetal.,1999)positthatERPisnotatermreferringtoadistinctobjectbutratheracategory(``umbrellaterm'')signifyingarangeofsimilarproducts.TherearefurthersuggestionsthatexplicateERPastheoutcomeofthedevelopmentofITsupportformanufacturing(ChungandSynder,1999)orassupplychainmanagement(O'Brien,1999).YetothersbelievethatwhatERPstandsfor,isdeterminedbytheproductofferingsofdevelopers(HolsappleandSena,1999,referringtoAPICS).ItisanticipatedthatMISscholarlyactivitieswouldadvancethroughincreasedconsensusonthephenomenonofERP.1.2.TheproblemandmotivationforthisstudyGiventhediversityofopinionillustratedabove,itisunlikelythatabroadlyagreeduponde®nitionofERPcanbeachieved.Whatweseektoachieve,is®rstlytoincreaseawarenessofthematter,andsecondlytoshareobservationsontheproblemathand.Weaimtodepictthestate-of-theartofscholarlyERP-relatedactivityininformationsystems,withtheobjectiveof141progressingthediscussiononwhatERPisforISacademics.Clari®cationhereisbelievedimportantto:(1)aidcommunicationamongstresearchersandbetweenresearchersandpractitioners;(2)informdevelopmentofteachingmaterialsonERPandrelatedconceptsinuniversitycurriculaandincommercialeducationandtraining;(3)aidcommunicationamongstclients,consultantsandvendors.Eventually,increasedtransparencyoftheERP-conceptwithinISmayalsobene®totheraligned®eldsofknowledge,suchasaccountingorsoftwareengineering.TodelineatethephenomenonofERPininformationsystems,werelyonthree``sourcesofevidence''.InSection2,weportraytheprevalentviewonERP.ThismainstreamperspectiveseesERPasasoftwareproductthatrepresentsthe®nalstageofanevolutiontowardsintegration,originatingfromITsupportedmanufacturing.Asmentionedearlierandasdetailedfollowing,thisviewhasnowbeensubjecttoscrutinyforneverbeingcompletelycorrect,andnowhasbecomeoutdatedduetothefurtherextensionofERPproducts.InSection3,were¯ectonERP-relatedactivitiesintheIS®eld,basedonameta-levelappreciationofIS-publicationsinthearea.Thissummaryliteraturereviewisconcernedwithshowinglevelsofactivityandgeneraltrendsandpointingtoemergingresearchtopics;ithas,howevernotbeentheobjectivetodiscussresearchresultsperse.InSection4,wesoughttheopinionoftwelvenotableacademicshavingERP-relatedexpertiseinrelationtothefollowingissues:importanttechnical,managerialandmarketplacedeterminantsoftheevolutionofERP;de®nitionsofERP;andtheappropriatenessofISattentiontoERPtodate,bothinresearchandcurriculum.Section5inclu