April 2000/Vol. 43, No. 4 | Christina Soh, Sia Siew Kien, and Joanne Tay-Yap
The article explores the cultural fits and misfits of ERP (Enterprise Resource Planning) software in Asian organizations, particularly in the context of Singapore's public hospitals. It highlights the significant costs and organizational changes associated with implementing ERP systems, which often lead to "misfits" where the functionality offered by the software does not fully align with the needs of the organization. These misfits are categorized into data, process, and output issues, with country-specific factors exacerbating the problem due to differences in cultural, economic, and regulatory contexts.
The article provides examples of misfits, such as data format incompatibilities, missing validation procedures, and the lack of certain report formats. Resolution strategies include working around the limitations, customizing the software, and developing add-on modules, though these often come with additional costs and complexities. Despite the challenges, the overall impact of ERP implementation has been positive, leading to improved data standardization, resource usage information, and organizational learning.
The authors emphasize the need for vendors to better explain the embedded data requirements and processes to organizations, and for organizations to acquire more skills to assess these details. They also suggest that effective misfit analysis requires a merger of traditional system development phases and that key users play a crucial role in problem-solving due to their deep understanding of organizational processes.The article explores the cultural fits and misfits of ERP (Enterprise Resource Planning) software in Asian organizations, particularly in the context of Singapore's public hospitals. It highlights the significant costs and organizational changes associated with implementing ERP systems, which often lead to "misfits" where the functionality offered by the software does not fully align with the needs of the organization. These misfits are categorized into data, process, and output issues, with country-specific factors exacerbating the problem due to differences in cultural, economic, and regulatory contexts.
The article provides examples of misfits, such as data format incompatibilities, missing validation procedures, and the lack of certain report formats. Resolution strategies include working around the limitations, customizing the software, and developing add-on modules, though these often come with additional costs and complexities. Despite the challenges, the overall impact of ERP implementation has been positive, leading to improved data standardization, resource usage information, and organizational learning.
The authors emphasize the need for vendors to better explain the embedded data requirements and processes to organizations, and for organizations to acquire more skills to assess these details. They also suggest that effective misfit analysis requires a merger of traditional system development phases and that key users play a crucial role in problem-solving due to their deep understanding of organizational processes.