Impacts of Enterprise Resource Planning (ERP)

Impacts of effort Resource cooking (ERP)1.0 IntroductionThis naturalsprint result labour to explicate the intricacies of enterprise resource prepargondness (ERP), a conception that has long fascinated umteen a(prenominal) in both academic and schoolmaster fail environments, including the unify Nations (UN). In fact, the UN has expressed the lack to put on ERP. As part of their examination into this procedure, the UN has employ ERP at the united Nations discipline course of playing field (UNDP) in Pristine, Republic of Kosovo, and an separate(prenominal) agencies of the UN. As they look into the ramifications of ERP consequenceuation, so does this courting study. This study undertakes to cite predictions of the conflict of ERP instruction execution on the occupancy cognitive operativirtuosos and name-upal shade of the linked Nations secretariat ground on results from the UNDP.1.1 Introduction to the occupationSince the ripe 1990s, patronagees gi ft flocked to implement enterprise resource thinkning (ERP) governance of ruless(prenominal)(prenominal), e.g., wiz study showed that much than sixty percent of Fortune 500 companies had adopt an ERP body (Stewart et al. 2000). The linked Nations, as wiz of the fully grownst organizations in the world, has lagged behind in adopting the transmutation in the vigilance of its resources.The unite Nations has been seriously hampered in its world power to ca custom results effectively and efficiently due to the lack of an integrated instruction agreement for managing its resources (Report of the Secretary-General, 2008). According to Davis and Olsen (1985), ERP is an integrated administration that provides cultivation to support military unconscious mental operate at anxiety and end- qualification functions in an memorial tablet. Therefore, the closing of implementing an ERP musical arrangement is to build an integrated b altogether-shaped learning work u pment that fully supports the fates of the United Nations, enables the effective prudence of humankind, fiscal and material resources, and is based on streamlined touches and fall in practices (Report of the Secretary-General, 2008).1.2Background of the lease1.2.1 alive governanceCurrently, the United Nations uses an in-house demonstrable framecomm merely referred to as co-ordinated Management nurture System (IMIS)for the instruction of human, financial and physical resources. The growing of IMIS was a milest nonp atomic number 18il in the use of nurture applied science as a discipline that stop benefici eithery affect numerous, if non wholly, beas of cheek and influencement in any given government. IMIS was developed as a function excepty integrated outline, which combines in any segments to support let out surgical processes such(prenominal) as human resources centering, payroll, pay and blood line relationship, requisitioning and funds cont rol, reckon exe dression and activate management. IMIS was introduced in conjunction with desktop, net drawed computing and office automation weapons such as electronic mail in some(prenominal) offices.If an institution is non further confident(predicate) of the need for client-server networks, the state of the art in enterprise-wide computing, it has only to rent the structured Management Information System (IMIS) of the United Nations, (Rowe Davis, 1996, p. 122). The launching of IMIS was later on affect and conditi unrivalledd by study developments in the scientific market, and an intensify prowl of pore in the United Nations to field activities. In short, IMIS was designed and developed at a while when the context began to throw chop-chop and with child(p)ly. Yet, only a few long time after the instruction execution of IMIS, it has get down discernible that the brass sight non take full advantage of the advancement in applied science e.g., even thoug h IMIS is functionally integrated, it was deployed and managed locally at to individually cardinal(prenominal) geographic location, which makes reporting and global management in truth herculean. The carrying out in the United Nations peacekeeping appendage was partial, as it is a separate section in the UN, and was non able to support the supply chain and logistic management (Report of the Secretary-General, 2008).The IMIS was non an alternative communication technology to paper and telephones, entirely it twisting the synchronization of quintuple info sources and the linking of them to several mainframes, (Rowe Davis, 1996, p. 122). An investment in tactical systems, which includes a stand-alone system and a modular integration into IMIS finished with(predicate) interfaces, was able to address the functional gaps of IMIS. However, the b rareness today faces challenges that submit profound mutation beyond the capabilities of IMIS and its ancillary bequest systems oc up-to-the-minutely beingness employ (Report of the Secretary-General, 2008).1.2.2 The need for shiftThe United Nations struggled to get e trulybody in their construction to unite electronically. It soon realised that it was sequence to connect the world with a client-server network, (Rowe Davis, 1996, p. 122). The need for the United Nations to take on the International Public celestial sphere account Standards (IPSAS) lead to the requirement of signifi evictt stir in the accounting processes and systems in value to comply with the international public sector monetary specimen for accounting. The necessary permutes, indeed, were so fundamental that it is fair to say that the life of IMIS had keep down to an polish off after fourteen years to a greater extentover, the bene receives that the supply and managers expected from the knowledge system in day-to-day works and decision- devising no long-term matched the constitute of sustentation and ongoing su pport. This is because IMIS is no longer able to cope with the tight technical development, and the cost of maintenance and ongoing support has stimulate precise dear(predicate) (Report of the Secretary-General, 2008).The achiever of your brasss quality initiative depends upon your magnate to communicate the need for turn throughout the organization, (Arcaro, 1997, p. 146). The United Nations as an government needs to meliorate the prize and cost- susceptibility of the operate it provides. They report that the existing systems argon not up to the standard, not integrated, duplicative, and be inefficient (Report of the Secretary-General, 2008). According to the UN, the effective management, planning and decision-making concur been hampered by the lack of integration and complete data on resources (ibid). As the organisation continues to grow in complexity in its activities, they atomic number 18 dis fulfil with the lack of integration and data- sh be between different departments as it has become a mountainousr chore, and the need for a impudent ICT global enterprise system for streamlining and simplifying processes has become to a greater extent crucial as the nature of the organisation is ever-changing itself (ibid).1.2.3 Goals and objectives of implementing an go-ahead Resource Planning SystemThe United Nations reports that the instruction execution of an ERP system leave present the hazard to fully combine resources and functions across the organisation by replacing the existing IMIS system (Report of the Secretary-General, 2008). Minahan (1998) reports ERP to be a varied system that integrates and automates the basic processes of a air such as finance and budget management, human resources management, supply chain management, central support supporters, and an an some other(prenominal)(prenominal)wise corporal snapper functions. Most all- valuable(prenominal)ly, the main value of an ERP system is the opportunity to stream line and amend the operations of an entire organisation through process reengineering, sharing of viridity data, and performance of best practices and standards, and carry out as the inter-organisation learning thorn for communication and collaboration (OLeary, 2004).According to reports from the United Nations (Report of the Secretary-General, 2008), the main objectives of the ERP range croupe be summarised as followsTo call for a global direct system that precisely c knowingures gist resource data from to each one department and office staff at the UN while linking them in concert to provide better decision-making. This volition background the time postulate to perform administrative processes and enable well-off admission fee to necessary reports for each department, and then increasing the efficiency of the organisation and directive the focus to high precedency situations.The main functionalities sought from the reinvigoratedborn ERP system ar expected t o encompass functions such as course of instruction planning, budgeting, contributions and process human resources management and administration payroll, including management of benefits and contribution to pension, health check and redress schemes supply chain management, including procurement as desexualises and facilities management usual accounting, journey and other administrative gos reporting to management and stakeholders, and more than (Report of the Secretary-General, 2008, p. 8).Specific United Nations peacekeeping operations functions such as logistics, transportation, fuel and rations systems need to be support by the hot ERP system, as these functions atomic number 18 not held in common with other organisations of the United Nations operations.1.3Purpose and Significance of the StudyThe research through in this study result attempt to reaction the following call into question What leave behind be the affect of ERP implementation on the clientele break and vocation finis of the United Nations? Specifically, this study pass on attempt to establish the kindred between the commerce process transformation and organisational civilization limiting offered as the result of ERP.These questions and findings ar expected to provide an tack magnitude ability in evaluating the murder and normalisation of the blood processes in spite of appearance the United Nations, as intumesce as an addd aw atomic number 18ness of its effect on the disdain socialisation and productiveness over time in the UN.In concomitant, answers to these questions leave subsequently enable other researchers to take a shit more insight into ERP implementation and air process reengineering. It exit also enable the management of the United Nations to impinge on how ERP can be a better means of technological reform, thus providing the opportunity to re-evaluate the existing moving in concern processes.1.4 Research QuestionsThe question that consti tutes the patriarchal storey of pivot for the paper is What depart be the probable succeeding(a) impact of ERP on the business process transformation and business market-gardening of the UnitedNations?The leash subsidiary questions of the present work ar How pass on ERP implementation make the organisation better off in the foreseeable succeeding(a)? What leave behind be the effect on the reformed business burnish in terms of productivity? How does the organisation perceive the benefit of ERP on the standardisation of business processes?1.5Structural ApproachThe rest of the dissertation has been structured as follows. Chapter 2 provides a review of relevant literature including ERP, business process reengineering, and their impact on organisational acculturation. Chapter 3 discusses the methodologies use for the case study and describes the data and the discordant proxies employed for analysing ERP implementation in the United Nations. Chapter 4 provides observational findings on the relationship between ERP implementation and its effects on business processes and organisational culture. Chapter 5 analyses the research findings. Chapter 6 concludes the research by pointing out the key impacts of ERP on the UN. Chapter 7 makes non-homogeneous recommendations for policy direction and potentially fat areas of ERP systems for further research. Chapter 8 reflects on the study as a whole.CHAPTER II2.0 books REVIEWThe following Literature Review volition focus on four main areas of evaluation regarding enterprise resource planning (ERP) on the business process transformation (BPR) in organisations, and more particular propositionally, the United Nations. These are1. ERP definition, evolution, hints2. BPR definition, evolution, implications3. ERP and organisational culture4. BPR and organisational convertThis review hold for analyse the to a higher placementioned systems and associate processes thus far as the available data in the literatu re leave behind depart for a comparison of ERP and BPR and their effects on the United Nations and other large organisations.2.1 opening Resource Planning (ERP) Definition, Evolution, and ImplicationsEnterprise resource planning (ERP) systems are commonly described as commercial software piece of grounds that allow the culture of data and processes throughout an organisation (Markus Tanis, 2000, cited in Kim et al. 2005). ERP enables the play of information among all business areas such as finance, human resources, manufacturing, sales and marketing, (Tan Theodorou, 2009, p. 52). Basically, it allows data from all departments to exist in one information processing system system (Pang, 2001), making the managerial dream of unification of all information systems into one ready reckoner system come true (Adam ODoherty, 2003, cited in Revia, 2007). This unification should offer galore(postnominal) benefits to the UN and other large organisations. Large organisations whiteth orn suck in a more difficult time relaying information from one sector to some other as they deliver many different departments and even multiple locations. The junto of all departments in one system, presents benefits of relaying data in a timely manner. or else than move files through inter-office mail or needing to track down one crabby staff member, each employee testament surrender access to the information required for their job by simply logging into the system. The researcher entrust attempt to discover whether this unification does indeed allow for more time-efficiency as hearty as making simple operations tasks easier to accomplish in the UN.The grow of ERP systems came about in the 1960-1970s with the invention of Inventory Control (IC) and Materials unavoidableness Planning (MPR) systems, which managed inventory in manufacturing. In the 1980s, Manufacturing Resources Planning (MRP II) systems came into use to manage both inventory and merchandise requiremen ts together. In 1973, the first ERP system was caused with the goal of keep all business needs. Since then, ERP systems bind become much more common. In fact, by the year 2000, enterprise resource planning systems were estimated to rescue serviced $23 billion USD in profits for the respective(a) organisations that have been implementing them (Pang, 2001). ERP systems are larger, more influential and faster growing than any other systems in the constancy (Finney Corbett, 2007). This is in all likelihood why the UN has shown such interest in ERP.The increase in ERP implementation does not seem surprising as ERP allows corporations to update to a new integrated system vinegarish out the previous legacy systems known for their difficulties in maintenance, large size, and old age, as they are discriminate systems (Martin, 1998 cited in Boudreau, 1999). This waits to be helpful for the UN as they reported clog with their period legacy system (Report of the Secretary-General, 2008). It is possible that employees of the UN go forth be satisfied with the backup of the legacy system due to the reported problems it has. However, in that respect is a outlook that employees whitethorn be intimidated by this change as they will have to learn an entirely new system.Advantages of ERP systems for organisations include overcoming atomisation by streamlining activities and processes, which provides direct access to real-time information by planning a group of software modules that encase all departments of a business (Koch, 2003, cited in Finney Corbett, 2007). This implies that all information accessed through the new system will be current as it is constantly being updated by various(a) employees based on the tasks they complete. Rather than thither being pieces of information in various places, all information regarding the same issue will be together implying that employees can look in one place and have all the information they need alternatively tha n searching through various documents or consulting multiple co-workers. However, it provokes the question as to how employees can be incontestablely the information entered is accurate. This aspect of ERP systems will be investigated at the UNDP in Kosovo in grade to determine whether this feature is beneficial.Furthermore, ERP systems are said to provide cost-reduction in addition to increased flexibility (Siriginidi, 2000 cited in Al-Fawaz et al. 2008). Since the initial be of implementation are so high, it doesnt seem like cost-reduction can be achieved anytime tight to implementation. However, Rowe and Davis (1996) reported, the IMIS system which is the current system being used in many UN agencies does not cut down the amount of paper needed in set out to do processes. Switching to an ERP system should reduce costs related to this amongst other things, as elicited by the literature. For the UN, this would mean more money to use for their peacekeeping missions or other operations. The reduction of costs and flexibility appear to be linked in some appearance as fall operation costs would imply having more flexibility to perform other processes. and then once more, its possible for the availability of data to imply flexibility in making decisions, or flexibility could result from rearranging the organisations processes and being better furnished to perform authorized tasks.ERP systems have been reported to enhance business performance by accelerating the merger of organisational resources as well as strengthening the usable efficiency of the company through minimising human error (Shin Knapp, 2001, cited in Wang, 2006). The implication that ERP reduces human error seems to be correct as there is less opportunity to make a mistake for employees because there is generally only one time they need to input information for data-sharing as hostile to the multiple steps needed to take before but how can employees be sure that the initial informat ion entered was accurate? One may debate that if multiple spate are doing the same step there is increased accuracy as there are that many more people assessing the situation. Aside from that, it seems these benefits should aid the UN in accomplishing some of their proposed goals, such as linking all departments within one operations system, which decreases the time required for administrative processes. The UN hopes implementation will increase their running(a) efficiency by allowing worth(predicate) time to be spent management on high priority situations rather than simple operations tasks (Report of the Secretary-General, 2008).More advertised benefits include im proved information accuracy and decision-making capacity (Siriginidi, 2000 cited in Al-Fawaz et al. 2008). The UN pauperisms to make use of these proposed advantages (Report of the Secretary-General, 2008). Decision-making is a large part of the UN as they have to make difficult decisions terrestrial that effec t large numbers of people making a baffling decision is not necessarily easily corrected in this case. Furthermore, many situations the UN deals with are time-sensitive if its easier to access data, and the accuracy of that data is improve, officials can rest assured that they are making decisions with proper knowl environ.In implementing ERP, organisations no longer have to create their own applications that are then unique to their company. They now have standard software available for their business processes, referred to as Best condescension Practices (BBPs), which came into globe somewhat the same time as ERPs. BBPs are general guidelines to assist companies in the elan of handling indisputable business processes, sum that each company can now improve itself on the background of the take care of other corporations that share similar functional processes (SAP, 2007, cited in Revia, 2007). It seems any organisation would be hesitant to implement a system that has not proved to benefit other large organisations as the risk of loser is not unlikely (Moon, 2007). However, each organisation is unique so BBPs may not work for every organisation..Some of the disadvantages of ERP are that the implementation requires time, costs and risks (Boudreau, 1999), as they course to be large, complicated, and expensive (Mabert et al. 2001, cited in Al-Fawaz et al. 2008, p. 3). ERP implementation calls for serious time committedness from all involved as it is lots the biggest project that an organisation will ever face (Moon, 2007). ERP execution requires new procedures, employee training and managerial and easily support (Shang Seddon, 2002, cited in Al-Fawaz et al. 2008), which can be accomplished through good communication of the corporate strategy to all employees (Umble et al. 2003, cited in Al-Fawaz et al. 2008). Consequently, the biggest problem is not actually the implementation itself but the expectations of board members and senior staff as well a s not having a clear plan or realistic projections (Somers Nelson 2004, cited in Al-Fawaz et al. 2008). However, the UN has already proposed clear goals and plans for their implementation. The question is whether or not they will be able to successfully translate these goals/plans to all employees of the organisation and whether or not they will be successful.Finally, the importance of selecting the enamor ERP big bucks is stressed. Corporations essential make sure they select the appropriate ERP package that will match their organisation as well as its business processes (Chen, 2001, cited in Finney Corbett, 2007). This seems obvious as every organisation is different. Some corporations strategise or so providing keen customer service while others focus on fall costs to customers as a instruction to attract more business. However, there are studies that show that customising ERP packages beyond minimal markments is discouraged these studies show that organisations shoul d adjust their processes to fit the package rather than adjust the package to fit the processes (Murray Coffin, 2001 cited in Al-Fawaz et al. 2008).2.2 stemma Process Transformation (BPR) Definition, Evolution, and Implications phone line process reengineering (BPR) was not very popular until the release of the book Re-engineering the Corporation by Michael shaft and pack Champy (Barker, 1995). Hammer and Champy introduced the term Business process reengineering in 1990 and defined it as a fundamental rethinking and radical design of business processes to achieve salient improvements in critical, contemporary measures of performance, such as cost, quality, service and speed (Grover Kettinger, 2000, p. 151). Business process reengineering is also defined as a strategic redesign of important business processes, including the systems and policies that support them, in order to achieve maximal productivity of an organisation (Manganelli Klein, 1994). This would suggest a link b etween ERP and BPR as they are both structured around the redesign of nubble business processes. In fact, some goals of BPR are the reduction of cost, cycle-time, defects, and the increase of worker productivity (Hales Savoie, 1994), very much the same as ERP. The aim of BPR is to change current business processes in order to make them more efficient overall, again mimicking ERP. In fact, Some researchers suggest that ERP systems are the major tools for making business processes better, slender-waisted and faster through associated business process reengineering, (Shang Seddon, 2003, cited in Revia, 2007, p. 25).It is not nevertheless known whether or not BPR will be performed at the UN. It is put on that it will as it is so closely related to ERP. Additionally, reports have shown that ERP often causes BPR to occur due to its very nature (Seebacher Juszczyk, 2002). It seems that in order for ERP to be intimately successful, BPR should be performed (Sumner, 2000 cited in Law Ngai, 2007), otherwise the UN may not recognise exactly which processes are most important for their operations. Or, they may not be fully aware of the exact centering in which ERP should be performed in relation to the core business processes, which is spanking to catch for the weft of the proper ERP package.BPR has its origins in the private sectors as a management tool for companies to deal with change and reorganise their work to improve customer service, cut operational costs, and become world-class competitors, (Hamid, 2004, cited in Wang, 2006, p. 5). Generally, business process transformation takes business processes and allows them to be make routinely through a computer system. It incorporates peoples perspectives and input to make sure that the processes fit needs circumstantial to each corporation (Wang, 2006). This suggests benefits for ERP implementation in any organisation as the systems are supposed to be designed around core processes specific to each company . It would be helpful for the UN to determine which processes are vital to their operations. Furthermore, cutting operational costs should prove to be very valuable for the UN as many of the services it provides are non-profit. Of course, whether or not this will be achieved is a question of interest.Here is a further look into what a core business process is A core business process is one that gives value to the customers or stakeholders of the company. These are the most important processes within the organisation and are the ones that will set a company above their competitors if done well. In order to figure out what processes are core, one may ask the following questions.1) Does the process make valued contributions to the customer? Does it improve customer service, increase response-time, decrease customers costs?2) Is it important for the production/operation of the company?3) Can it be used for other businesses?If the answer is yes to one of these questions, then the process under consideration can be considered core (McHugh et al. 1995). The UN may consider any process involving property flow to be core as that is a huge component to many of the services they provide. Furthermore, any documentation of information from one department to another is probably considered core as this organisation relies on data-sharing for its decision-making capabilities. Therefore, it seems that these types of processes will be affected by ERP implementation and will most likely be reengineered.The iii most basic strategies that increase a business success are lowering prices, offering more value in products, or foc use on less diversity in commodities and specialising in a certain area (Berrington Oblich, 1995). This suggests that BPR would be structured around these strategies when reorganising core business processes. If the UN is restructuring using BPR, they are likely to focus on a combination of strategies. As already mentioned, the cost of operations is a huge fixings for the United Nations to consider as they provide aid to many countries without expecting any favours in return. This implies they would focus on reduction of costs. However, the main reason they are an organisation is to provide services to those in need. That would suggest they would reorganise their business processes around the strategy of offering more value in their services.In implementing BPR, organisations are asked to choose five or six of the processes that are central to the operation of the company and focus on those to see the ways in which they can make them more efficient (McHugh et al. 1995). Concentrating on making sure core processes are completed to the best of the companys ability only checks the organisation will do better. In the case of the UN, focusing on data-sharing and managing cash flow suggests an increase in the organisations efficiency as those components are vital to their operation. These changes would suggest benefits for both the cost- reduction strategy as well as providing better service to customers.2.3 Enterprise Resource Planning (ERP) and Organisational CultureOrganisational culture is a set of core beliefs, set, and behaviours share by all members of one company, thereby alter the productivity of the business. It is often described as a sit of shared assumptions produced and manipulated by top management (Schein, 1992 cited in Boersma Kingma, 2005, p. 131). Organisational culture is influenced through many aspects, including leadership, personal characteristics, interactions of members, as well as tradition. Culture has palpable signs and cabalistic insinuations. Visible signs include behaviour while the hidden insinuations entail morality and beliefs (Rousseau, 1990 cited in Cooper, 1994). The culture of an organisation is even displayed in the way certain processes are done as well as the outcomes of these processes, which will be examined at the UNDP in Kosovo. Because ERP systems involve most d epartments in a company, they change many business processes and thereby affect the more implanted organisational culture of a corporation.Companies that focus on incorporating their cultures into organisational efforts are said to have an edge in accordance with their productivity. Organisations can focus on culture and work with the people to shape new values, morals and work ethics. If employees are golden to be working for the organisation, they will be more apt to want to work, implying there will be an increase in productivity (Farbrother Marc, 2003). Enterprise resource planning can lead to changes in organisational culture e.g., ERP is implemented in order to increase productivity by changing current business processes (Deal Kennedy, 1982 cited in Cooper, 1994). These changes are maximal and cannot be simply napped aside. When a company implements ERP, if the organisational culture is ready for the changes it will bring, the employees can work with the system to increase productivity. Consequently, the culture within the business must be one that can be made amenable for change (Nah et al. 2001 cited in Finney Corbett, 2007). There is the belief that positive and supportive attitudes of those embarking on implementation of ERP will actually bring about a successful transformation (Chatterjee et al. 2002 cited in Law Ngai, 2007). However, if the culture has not been made ready for change or the employees are unwilling to change, the system will be less likely to succeed. A system cannot work if there are no users.System implementation represents a threat to users perceptions of control over their work and a period of transition during which users must cope with differences between old and new work systems, (Sternad Bobek, 2006, p. 285). The social setting of a company and its technology most definitely shape each other they are just now freelancer of one another (Boersma Kingma, 2005). A mistake companies frequently make is to sham that peop le can change their habits easily when in actuality such changes are considerably taxing for many people. These companies underestimate the effect ERP implementation will have on their employees. Many employees panic when nothing looks the way it used to, nothing works the way it used to, and they can no longer go through their workday with the previously earned finger of familiarity and authorisation (Koch, 2007 cited in Revia, 2007). One study showed that it took over two years for users of the new system to forget the process problems they found initially and to gain new knowledge of the system (Seddon Shang, 2003 cited in Revia, 2007). A Chief Information policeman from Nestle sums up this concept very wellshe says, No major software implementation is really about the software. Its about change managementYou are changing the way people workYou are challenging their principles, their beliefs and the way they have done things for many, many years (Boersma Kingma, 2005, p. 123) .It seems the best way to ensure that employees are on board with proposed changes is to make them aware of these changes. It is important for them to looking at that they are included in the decision to create new values and procedures for the company. Otherwise, they will be clinging to the old culture and ways of doing things. The change will be stressful and forced rather than welcomed with ease. They should feel that the change is happImpacts of Enterprise Resource Planning (ERP)Impacts of Enterprise Resource Planning (ERP)1.0 IntroductionThis paper will labour to explicate the intricacies of enterprise resource planning (ERP), a concept that has long fascinated many in both academic and professional work environments, including the United Nations (UN). In fact, the UN has expressed the need to implement ERP. As part of their examination into this procedure, the UN has implemented ERP at the United Nations Development Program (UNDP) in Pristine, Republic of Kosovo, and other a gencies of the UN. As they look into the ramifications of ERP implementation, so does this case study. This study attempts to make predictions of the impact of ERP implementation on the business processes and organisational culture of the United Nations secretariat based on results from the UNDP.1.1 Introduction to the ProblemSince the late 1990s, businesses have flocked to implement enterprise resource planning (ERP) systems, e.g., one study showed that more than sixty percent of Fortune 500 companies had adopted an ERP system (Stewart et al. 2000). The United Nations, as one of the largest organisations in the world, has lagged behind in adopting the transformation in the management of its resources.The United Nations has been seriously hampered in its ability to deliver results effectively and efficiently due to the lack of an integrated information system for managing its resources (Report of the Secretary-General, 2008). According to Davis and Olsen (1985), ERP is an integrated system that provides information to support operation management and decision-making functions in an organisation. Therefore, the goal of implementing an ERP system is to build an integrated global information system that fully supports the needs of the United Nations, enables the effective management of human, financial and physical resources, and is based on streamlined processes and better practices (Report of the Secretary-General, 2008).1.2Background of the Study1.2.1 Existing SystemCurrently, the United Nations uses an in-house developed systemcommonly referred to as Integrated Management Information System (IMIS)for the management of human, financial and physical resources. The development of IMIS was a milestone in the use of information technology as a discipline that can beneficially affect many, if not all, areas of administration and management in any given organisation. IMIS was developed as a functionally integrated system, which combines all departments to support ke y processes such as human resources management, payroll, finance and accounting, requisitioning and funds control, budget execution and travel management. IMIS was introduced in conjunction with desktop, networked computing and office automation tools such as electronic mail in many offices.If an organisation is not yet sure of the need for client-server networks, the state of the art in enterprise-wide computing, it has only to consider the Integrated Management Information System (IMIS) of the United Nations, (Rowe Davis, 1996, p. 122). The launching of IMIS was subsequently affected and conditioned by major developments in the technological market, and an accelerated shift of focus in the United Nations to field activities. In short, IMIS was designed and developed at a time when the context began to change rapidly and profoundly. Yet, only a few years after the implementation of IMIS, it has become evident that the system cannot take full advantage of the advancement in technol ogy e.g., even though IMIS is functionally integrated, it was deployed and managed locally at each geographical location, which makes reporting and global management very difficult. The implementation in the United Nations peacekeeping operation was partial, as it is a separate department in the UN, and was not able to support the supply chain and logistical management (Report of the Secretary-General, 2008).The IMIS was not an alternative communication technology to paper and telephones, but it involved the synchronization of multiple data sources and the linking of them to several mainframes, (Rowe Davis, 1996, p. 122). An investment in tactical systems, which includes a stand-alone system and a modular integration into IMIS through interfaces, was able to address the functional gaps of IMIS. However, the organisation today faces challenges that demand profound transformation beyond the capabilities of IMIS and its ancillary legacy systems currently being used (Report of the Secr etary-General, 2008).1.2.2 The need for changeThe United Nations struggled to get everybody in their building to connect electronically. It soon realised that it was time to connect the world with a client-server network, (Rowe Davis, 1996, p. 122). The need for the United Nations to take on the International Public Sector Accounting Standards (IPSAS) lead to the requirement of significant change in the accounting processes and systems in order to comply with the international public sector standard for accounting. The requisite changes, indeed, were so fundamental that it is fair to say that the life of IMIS had come to an end after fourteen years moreover, the benefits that the staff and managers expected from the information system in day-to-day operations and decision-making no longer matched the cost of maintenance and ongoing support. This is because IMIS is no longer able to cope with the fast technological development, and the cost of maintenance and ongoing support has bec ome very expensive (Report of the Secretary-General, 2008).The success of your organisations quality initiative depends upon your ability to communicate the need for change throughout the organization, (Arcaro, 1997, p. 146). The United Nations as an organisation needs to improve the value and cost-efficiency of the services it provides. They report that the existing systems are not up to the standard, not integrated, duplicative, and are inefficient (Report of the Secretary-General, 2008). According to the UN, the effective management, planning and decision-making have been hampered by the lack of integration and complete data on resources (ibid). As the organisation continues to grow in complexity in its activities, they are dissatisfied with the lack of integration and data-sharing between different departments as it has become a bigger problem, and the need for a new ICT global enterprise system for streamlining and simplifying processes has become more crucial as the nature of the organisation is changing itself (ibid).1.2.3 Goals and objectives of implementing an Enterprise Resource Planning SystemThe United Nations reports that the implementation of an ERP system will present the opportunity to fully combine resources and functions across the organisation by replacing the existing IMIS system (Report of the Secretary-General, 2008). Minahan (1998) reports ERP to be a multifaceted system that integrates and automates the basic processes of a business such as finance and budget management, human resources management, supply chain management, central support services, and other corporate core functions. Most importantly, the main value of an ERP system is the opportunity to streamline and improve the operations of an entire organisation through process reengineering, sharing of common data, and implementation of best practices and standards, and perform as the inter-organisation information backbone for communication and collaboration (OLeary, 2004).Accord ing to reports from the United Nations (Report of the Secretary-General, 2008), the main objectives of the ERP project can be summarised as followsTo have a global operating system that precisely captures core resource data from each department and agency at the UN while linking them together to provide better decision-making. This will minimise the time required to perform administrative processes and enable easy access to necessary reports for each department, thus increasing the efficiency of the organisation and directing the focus to high priority situations.The main functionalities sought from the new ERP system are expected to encompass functions such as programme planning, budgeting, contributions and performance human resources management and administration payroll, including management of benefits and contribution to pension, medical and insurance schemes supply chain management, including procurement assets and facilities management general accounting, travel and other ad ministrative flows reporting to management and stakeholders, and more (Report of the Secretary-General, 2008, p. 8).Specific United Nations peacekeeping operations functions such as logistics, transportation, fuel and rations systems need to be supported by the new ERP system, as these functions are not held in common with other organisations of the United Nations operations.1.3Purpose and Significance of the StudyThe research done in this study will attempt to answer the following question What will be the impact of ERP implementation on the business transformation and business culture of the United Nations? Specifically, this study will attempt to establish the relationship between the business process transformation and organisational culture change offered as the result of ERP.These questions and findings are expected to provide an increased ability in evaluating the performance and standardisation of the business processes within the United Nations, as well as an increased awar eness of its effect on the business culture and productivity over time in the UN.In addition, answers to these questions will subsequently enable other researchers to gain more insight into ERP implementation and business process reengineering. It will also enable the management of the United Nations to see how ERP can be a better means of technological reform, thus providing the opportunity to re-evaluate the existing business processes.1.4 Research QuestionsThe question that constitutes the primary point of pivot for the paper is What will be the probable future impact of ERP on the business process transformation and business culture of the UnitedNations?The three subsidiary questions of the present work are How will ERP implementation make the organisation better off in the foreseeable future? What will be the effect on the reformed business culture in terms of productivity? How does the organisation perceive the benefit of ERP on the standardisation of business processes?1.5Str uctural ApproachThe rest of the dissertation has been structured as follows. Chapter 2 provides a review of relevant literature including ERP, business process reengineering, and their impact on organisational culture. Chapter 3 discusses the methodologies used for the case study and describes the data and the various proxies employed for analysing ERP implementation in the United Nations. Chapter 4 provides empirical findings on the relationship between ERP implementation and its effects on business processes and organisational culture. Chapter 5 analyses the research findings. Chapter 6 concludes the research by pointing out the key impacts of ERP on the UN. Chapter 7 makes various recommendations for policy direction and potentially fruitful areas of ERP systems for further research. Chapter 8 reflects on the study as a whole.CHAPTER II2.0 LITERATURE REVIEWThe following Literature Review will focus on four main areas of evaluation regarding enterprise resource planning (ERP) on t he business process transformation (BPR) in organisations, and more specifically, the United Nations. These are1. ERP definition, evolution, implications2. BPR definition, evolution, implications3. ERP and organisational culture4. BPR and organisational changeThis review will analyse the abovementioned systems and related processes insofar as the available data in the literature will allow for a comparison of ERP and BPR and their effects on the United Nations and other large organisations.2.1 Enterprise Resource Planning (ERP) Definition, Evolution, and ImplicationsEnterprise resource planning (ERP) systems are commonly described as commercial software packages that allow the assimilation of data and processes throughout an organisation (Markus Tanis, 2000, cited in Kim et al. 2005). ERP enables the flow of information among all business areas such as finance, human resources, manufacturing, sales and marketing, (Tan Theodorou, 2009, p. 52). Basically, it allows data from all dep artments to exist in one computer system (Pang, 2001), making the managerial dream of unification of all information systems into one computer system come true (Adam ODoherty, 2003, cited in Revia, 2007). This unification should offer many benefits to the UN and other large organisations. Large organisations may have a more difficult time relaying information from one sector to another as they have many different departments and even multiple locations. The combination of all departments in one system, presents benefits of relaying data in a timely manner. Rather than sending files through inter-office mail or needing to track down one particular staff member, each employee will have access to the information required for their job by simply logging into the system. The researcher will attempt to discover whether this unification does indeed allow for more time-efficiency as well as making simple operations tasks easier to accomplish in the UN.The start of ERP systems came about in the 1960-1970s with the invention of Inventory Control (IC) and Materials Requirement Planning (MPR) systems, which managed inventory in manufacturing. In the 1980s, Manufacturing Resources Planning (MRP II) systems came into use to manage both inventory and production requirements together. In 1973, the first ERP system was created with the goal of supporting all business needs. Since then, ERP systems have become much more popular. In fact, by the year 2000, enterprise resource planning systems were estimated to have serviced $23 billion USD in profits for the various organisations that have been implementing them (Pang, 2001). ERP systems are larger, more influential and faster growing than any other systems in the industry (Finney Corbett, 2007). This is probably why the UN has shown such interest in ERP.The increase in ERP implementation does not seem surprising as ERP allows corporations to update to a new integrated system cutting out the previous legacy systems known for t heir difficulties in maintenance, large size, and old age, as they are segregated systems (Martin, 1998 cited in Boudreau, 1999). This appears to be helpful for the UN as they reported difficulty with their current legacy system (Report of the Secretary-General, 2008). It is likely that employees of the UN will be satisfied with the replacement of the legacy system due to the reported problems it has. However, there is a chance that employees may be intimidated by this change as they will have to learn an entirely new system.Advantages of ERP systems for organisations include overcoming fragmentation by streamlining activities and processes, which provides direct access to real-time information by supplying a group of software modules that encase all departments of a business (Koch, 2003, cited in Finney Corbett, 2007). This implies that all information accessed through the new system will be current as it is constantly being updated by various employees based on the tasks they com plete. Rather than there being pieces of information in various places, all information regarding the same issue will be together implying that employees can look in one place and have all the information they need rather than searching through various documents or consulting multiple co-workers. However, it provokes the question as to how employees can be sure the information entered is accurate. This aspect of ERP systems will be investigated at the UNDP in Kosovo in order to determine whether this feature is beneficial.Furthermore, ERP systems are said to provide cost-reduction in addition to increased flexibility (Siriginidi, 2000 cited in Al-Fawaz et al. 2008). Since the initial costs of implementation are so high, it doesnt seem like cost-reduction can be achieved anytime close to implementation. However, Rowe and Davis (1996) reported, the IMIS system which is the current system being used in many UN agencies does not cut down the amount of paper needed in order to do proce sses. Switching to an ERP system should reduce costs related to this amongst other things, as suggested by the literature. For the UN, this would mean more money to use for their peacekeeping missions or other operations. The reduction of costs and flexibility appear to be linked in some way as decreasing operation costs would imply having more flexibility to perform other processes. Then again, its possible for the availability of data to imply flexibility in making decisions, or flexibility could result from rearranging the organisations processes and being better equipped to perform certain tasks.ERP systems have been reported to enhance business performance by accelerating the merger of organisational resources as well as strengthening the operational efficiency of the company through minimising human error (Shin Knapp, 2001, cited in Wang, 2006). The implication that ERP reduces human error seems to be correct as there is less opportunity to make a mistake for employees becaus e there is generally only one time they need to input information for data-sharing as opposed to the multiple steps needed to take before but how can employees be sure that the initial information entered was accurate? One may argue that if multiple people are doing the same step there is increased accuracy as there are that many more people assessing the situation. Aside from that, it seems these benefits should assist the UN in accomplishing some of their proposed goals, such as linking all departments within one operations system, which decreases the time required for administrative processes. The UN hopes implementation will increase their operational efficiency by allowing valuable time to be spent focusing on high priority situations rather than simple operations tasks (Report of the Secretary-General, 2008).More advertised benefits include improved information accuracy and decision-making capacity (Siriginidi, 2000 cited in Al-Fawaz et al. 2008). The UN wants to make use of these proposed advantages (Report of the Secretary-General, 2008). Decision-making is a large part of the UN as they have to make difficult decisions everyday that effect large numbers of people making a bad decision is not necessarily easily corrected in this case. Furthermore, many situations the UN deals with are time-sensitive if its easier to access data, and the accuracy of that data is improved, officials can rest assured that they are making decisions with proper knowledge.In implementing ERP, organisations no longer have to create their own applications that are then unique to their company. They now have standard software available for their business processes, referred to as Best Business Practices (BBPs), which came into existence around the same time as ERPs. BBPs are general guidelines to assist companies in the way of handling certain business processes, meaning that each company can now improve itself on the basis of the experience of other corporations that share si milar functional processes (SAP, 2007, cited in Revia, 2007). It seems any organisation would be hesitant to implement a system that has not proved to benefit other large organisations as the risk of failure is not unlikely (Moon, 2007). However, each organisation is unique so BBPs may not work for every organisation..Some of the disadvantages of ERP are that the implementation requires time, costs and risks (Boudreau, 1999), as they tend to be large, complicated, and expensive (Mabert et al. 2001, cited in Al-Fawaz et al. 2008, p. 3). ERP implementation calls for serious time commitment from all involved as it is often the biggest project that an organisation will ever face (Moon, 2007). ERP execution requires new procedures, employee training and managerial and technical support (Shang Seddon, 2002, cited in Al-Fawaz et al. 2008), which can be accomplished through good communication of the corporate strategy to all employees (Umble et al. 2003, cited in Al-Fawaz et al. 2008). Con sequently, the biggest problem is not actually the implementation itself but the expectations of board members and senior staff as well as not having a clear plan or realistic projections (Somers Nelson 2004, cited in Al-Fawaz et al. 2008). However, the UN has already proposed clear goals and plans for their implementation. The question is whether or not they will be able to successfully translate these goals/plans to all employees of the organisation and whether or not they will be successful.Finally, the importance of selecting the appropriate ERP package is stressed. Corporations must make sure they select the appropriate ERP package that will match their organisation as well as its business processes (Chen, 2001, cited in Finney Corbett, 2007). This seems obvious as every organisation is different. Some corporations strategise around providing excellent customer service while others focus on decreasing costs to customers as a way to attract more business. However, there are st udies that show that customising ERP packages beyond minimal adjustments is discouraged these studies show that organisations should adjust their processes to fit the package rather than adjust the package to fit the processes (Murray Coffin, 2001 cited in Al-Fawaz et al. 2008).2.2 Business Process Transformation (BPR) Definition, Evolution, and ImplicationsBusiness process reengineering (BPR) was not very popular until the release of the book Re-engineering the Corporation by Michael Hammer and James Champy (Barker, 1995). Hammer and Champy introduced the term Business process reengineering in 1990 and defined it as a fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed (Grover Kettinger, 2000, p. 151). Business process reengineering is also defined as a strategic redesign of important business processes, including the systems and policies that support them, in order to achieve maximum productivity of an organisation (Manganelli Klein, 1994). This would suggest a link between ERP and BPR as they are both structured around the redesign of core business processes. In fact, some goals of BPR are the reduction of cost, cycle-time, defects, and the increase of worker productivity (Hales Savoie, 1994), very much the same as ERP. The aim of BPR is to change current business processes in order to make them more efficient overall, again mimicking ERP. In fact, Some researchers suggest that ERP systems are the major tools for making business processes better, leaner and faster through associated business process reengineering, (Shang Seddon, 2003, cited in Revia, 2007, p. 25).It is not yet known whether or not BPR will be performed at the UN. It is assumed that it will as it is so closely related to ERP. Additionally, reports have shown that ERP often causes BPR to occur due to its very nature (Seebacher Juszczyk, 2002). It see ms that in order for ERP to be most successful, BPR should be performed (Sumner, 2000 cited in Law Ngai, 2007), otherwise the UN may not recognise exactly which processes are most important for their operations. Or, they may not be fully aware of the exact way in which ERP should be performed in relation to the core business processes, which is vital to understand for the selection of the proper ERP package.BPR has its origins in the private sectors as a management tool for companies to deal with change and reorganise their work to improve customer service, cut operational costs, and become world-class competitors, (Hamid, 2004, cited in Wang, 2006, p. 5). Generally, business process transformation takes business processes and allows them to be done routinely through a computer system. It incorporates peoples perspectives and input to make sure that the processes fit needs specific to each corporation (Wang, 2006). This suggests benefits for ERP implementation in any organisation a s the systems are supposed to be designed around core processes specific to each company. It would be helpful for the UN to determine which processes are vital to their operations. Furthermore, cutting operational costs should prove to be very valuable for the UN as many of the services it provides are non-profit. Of course, whether or not this will be achieved is a question of interest.Here is a further look into what a core business process is A core business process is one that gives value to the customers or stakeholders of the company. These are the most important processes within the organisation and are the ones that will set a company above their competitors if done well. In order to figure out what processes are core, one may ask the following questions.1) Does the process make valued contributions to the customer? Does it improve customer service, increase response-time, decrease customers costs?2) Is it important for the production/operation of the company?3) Can it be us ed for other businesses?If the answer is yes to one of these questions, then the process under consideration can be considered core (McHugh et al. 1995). The UN may consider any process involving cash flow to be core as that is a huge component to many of the services they provide. Furthermore, any documentation of information from one department to another is probably considered core as this organisation relies on data-sharing for its decision-making capabilities. Therefore, it seems that these types of processes will be affected by ERP implementation and will most likely be reengineered.The three most basic strategies that increase a business success are lowering prices, offering more value in products, or focusing on less diversity in commodities and specialising in a certain area (Berrington Oblich, 1995). This suggests that BPR would be structured around these strategies when reorganising core business processes. If the UN is restructuring using BPR, they are likely to focus o n a combination of strategies. As already mentioned, the cost of operations is a huge factor for the United Nations to consider as they provide aid to many countries without expecting any favours in return. This implies they would focus on reduction of costs. However, the main reason they are an organisation is to provide services to those in need. That would suggest they would reorganise their business processes around the strategy of offering more value in their services.In implementing BPR, organisations are asked to choose five or six of the processes that are central to the operation of the company and focus on those to see the ways in which they can make them more efficient (McHugh et al. 1995). Concentrating on making sure core processes are completed to the best of the companys ability only ensures the organisation will do better. In the case of the UN, focusing on data-sharing and managing cash flow suggests an increase in the organisations efficiency as those components ar e vital to their operation. These changes would suggest benefits for both the cost-reduction strategy as well as providing better service to customers.2.3 Enterprise Resource Planning (ERP) and Organisational CultureOrganisational culture is a set of core beliefs, values, and behaviours shared by all members of one company, thereby affecting the productivity of the business. It is often described as a pattern of shared assumptions produced and manipulated by top management (Schein, 1992 cited in Boersma Kingma, 2005, p. 131). Organisational culture is influenced through many aspects, including leadership, personal characteristics, interactions of members, as well as tradition. Culture has visible signs and hidden insinuations. Visible signs include behaviour while the hidden insinuations entail morals and beliefs (Rousseau, 1990 cited in Cooper, 1994). The culture of an organisation is even displayed in the way certain processes are done as well as the outcomes of these processes, which will be examined at the UNDP in Kosovo. Because ERP systems involve most departments in a company, they change many business processes and thereby affect the more deep-seated organisational culture of a corporation.Companies that focus on incorporating their cultures into organisational efforts are said to have an edge in accordance with their productivity. Organisations can focus on culture and work with the people to shape new values, morals and work ethics. If employees are happy to be working for the organisation, they will be more apt to want to work, implying there will be an increase in productivity (Farbrother Marc, 2003). Enterprise resource planning can lead to changes in organisational culture e.g., ERP is implemented in order to increase productivity by changing current business processes (Deal Kennedy, 1982 cited in Cooper, 1994). These changes are maximal and cannot be simply brushed aside. When a company implements ERP, if the organisational culture is ready f or the changes it will bring, the employees can work with the system to increase productivity. Consequently, the culture within the business must be one that can be made amenable for change (Nah et al. 2001 cited in Finney Corbett, 2007). There is the belief that positive and supportive attitudes of those embarking on implementation of ERP will actually bring about a successful transition (Chatterjee et al. 2002 cited in Law Ngai, 2007). However, if the culture has not been made ready for change or the employees are unwilling to change, the system will be less likely to succeed. A system cannot work if there are no users.System implementation represents a threat to users perceptions of control over their work and a period of transition during which users must cope with differences between old and new work systems, (Sternad Bobek, 2006, p. 285). The social setting of a company and its technology most definitely shape each other they are hardly independent of one another (Boersma Kingma, 2005). A mistake companies frequently make is to presume that people can change their habits easily when in actuality such changes are considerably taxing for many people. These companies underestimate the effect ERP implementation will have on their employees. Many employees panic when nothing looks the way it used to, nothing works the way it used to, and they can no longer go through their workday with the previously earned sense of familiarity and assurance (Koch, 2007 cited in Revia, 2007). One study showed that it took over two years for users of the new system to forget the process problems they found initially and to gain new knowledge of the system (Seddon Shang, 2003 cited in Revia, 2007). A Chief Information Officer from Nestle sums up this concept very wellshe says, No major software implementation is really about the software. Its about change managementYou are changing the way people workYou are challenging their principles, their beliefs and the way they have done things for many, many years (Boersma Kingma, 2005, p. 123).It seems the best way to ensure that employees are on board with proposed changes is to make them aware of these changes. It is important for them to feel that they are included in the decision to create new values and procedures for the company. Otherwise, they will be clinging to the old culture and ways of doing things. The change will be stressful and forced rather than welcomed with ease. They should feel that the change is happ