انتخاب سیستم ERP برای یک شرکت ساختمانی در تایوان: یک مطالعه موردی

The primary functions of Enterprise Resource Planning (ERP) are to integrate the inter-departmental operation procedures and Management Information System (MIS) modules, and to reallocate the resources of a company. How to successfully implement an ERP system in an organization is always a hot research topic for researchers as well as a pending problem for an organization that wants to implement it. This research is a case study on the selection of system suppliers and contract negotiation during the ERP implementation of a local construction company in Taiwan. After reviewing the common key success factors discussed in the literature, this study discussed seven issues: coding system, working process reengineering, priority of ERP functionality implementation, customization, participant roles, consultant role and performance level of subcontractor, which also affected the implementation. Lessons learned from the case study in discussed seven issues are valuable for a construction company in deciding to implement an ERP system. This research suggests that additional case studies are necessary for the successful application of ERP systems in the construction industry.

Enterprise Resource Planning (ERP) is a system for the seamless integration of all the information flowing through the company such as finances, accounting, human resources, supply chain, and customer information [1]. Recently, ERP has become a strategic and survival weapon for most firms in which Information Technology (IT) is widely used. Implementing an ERP system requires an enormous investment for a firm in terms of time, cost and resources. Thus the decision to implement ERP must be considered carefully. Additionally, an ERP system will be the IT backbone of an enterprise [2]. A firm must address the culture and general practice of the business in order to achieve its expected implementation objectives [3]. The range of functionality of ERP systems has further expanded in recent years to include more front-office, back-office and even strategic functions. Detailed function descriptions and discussions are out of the scope of this study, but can be found elsewhere [3], [4], [5] and [6]. Although there are many world famous ERP providers, including SAP, Oracle (integrated with PeopleSoft and J.D. Edwards) and IFS, no system specifically designed for the construction industry is yet available. Construction companies wishing to implement an ERP system must generally select a general ERP system mentioned above. However, the construction industry has some uniqueness, which should be considered by the ERP vendor, and is a highly fragmented one with specialized segments requiring specialized systems and driven by projects [7] and [7]. Recently, ERP systems have been used in construction-related companies because of their benefits in improving responsiveness in relation to customers, strengthening supply chain partnerships, carrying out remote procurements and inventory management, enhancing organizational flexibility, improving decision-making capabilities, reducing project completion time, analyzing accurate business profile and lowering costs [8] and [9]. However, there are very few studies conducted concerning the implementation of ERP systems in the construction industry, particularly for the construction contractors. Successfully implementing an ERP system in a firm is extremely difficult. Many studies have provided numerous success factors [10], [11], [12], [13] and [14]. The standard and best methodology for implementation of an ERP system still does not exist [7]. O'Connor and Dodd recommended that it is beneficial to develop a case study on how a contractor implements an ERP system [15]. This study aims to fulfill this need. Commercial ERP packages cannot provide a once-and-for-all business model for all processes in all industries. Thus, no single ERP packaged software can meet all firm functionalities or all special business requirements [10], [11], [12], [13] and [14]. Therefore, firms must choose a flexible ERP system and a co-operative vendor that effectively responds to customer requirements. So far, none of the construction management modules provided by software suppliers have been found to be suitable for construction firms. Moreover, some companies that introduced ERP were unsuccessful or even went bankrupt eventually. These failures occurred because the level of application of IT of construction companies is comparatively low and thus, considerable attention needs to be paid and caution in advocating ERP systems. However, previous studies have also suggested that language, culture, politics, government regulations, management style, and labor skills affect various ERP implementation practices in different countries [16] and [17]. Language differences (the common language used in Taiwan's IT software is traditional Chinese) and the entry barrier of using an English-based ERP system for a general contractor in Taiwan (or other non-native-speaking English areas) must be carefully considered. The construction industry is a localized industry. In Taiwan, successful ERP implementation is still rare in the construction industry. Researches performed in Taiwan regarding ERP mainly focused on the procedures of application and software system functionalities, respectively. On the contrary, only a few studies have been related to the selection of system suppliers and the content of the ERP contract and specifications. This study aims to remedy the lack of discussion of the above issues. In sum, this study focuses on the early stage of ERP system implementation for a general contractor in Taiwan. A detailed discussion of the costs and benefits of system implementation, that is confidential information of studied company, is beyond the scope of this study. The rest of this paper is organized as follows. Section 2 presents the research method, case study method, and why this method was chosen. Section 3 then reviews the literature on ERP implementation. Next, Section 4 describes the case information concerning ERP implementation. Subsequently, Section 5 discusses seven issues that affect successful ERP implementation. Conclusions are finally drawn in Section 6, along with future research directions recommended as well.

ERP has long been applied and promoted in the manufacturing industry. The construction industry has been slow in implementing ERP. In Taiwan, the main difficulties for general contractors in applying ERP are the complexities of their working processes and habits. However, there is no reason to resist the trend of implementing ERP for firms wishing to hold an edge in their comparative domain. This research studied a case which described the selection of an ERP system by a local construction company in Taiwan. Seven issues affecting implementation were discussed, and then some lessons learned from the studied case were identified, including: • Coding system: selecting an ERP system with a construction-oriented coding system is the best solution; otherwise, it is necessary to form a transformation protocol between the existing system and the ERP system. • Working process reengineering: the solution to the dilemma of customizing the functionalities versus reengineering the existing processes is to first perform business processes reengineering, and then implement an ERP system. • Priority of ERP functionality implementation: firms can determine the priority according to their own evaluation. A right priority can provide excellent benefits to the firm and reduce resistance from involved stakeholders. • Customization: the functionality customization of a well-developed ERP system not only increased the implementation cost, but also complicated implementation performance. • Participant roles: in ERP implementation, top management support is essential for success. Effective communication and clear authority are crucial in ensuring successful implementation. • Consultant role: in ERP implementation, the signed implementation contract with implementation consultant should clear define consultant obligation. • Performance level of the subcontractors: ERP implementation should consider all participants in the construction supply chain to maximize the associated benefits. Achieving this is difficult in the construction industry because the general level of computerization is low compared to other industries. The issues discussed above are not just the problems of firms implementing ERP but also issues faced by ERP vendors. Although this case study has provided some methods of dealing with these issues, further examinations are also needed. Additional case studies are necessary and essential for the successful application of ERP systems in the construction industry. This case study only discussed some aspects of factors that influenced successful ERP implementation in the construction industry. Other factors, such as staff training before ERP implementation and lack of appropriate IT staff in construction firms, should also be carefully considered. Besides, ERP system vendors should be aware that they must work with construction industry professionals to develop more customized solutions for construction firms. That would be the best solution for implementing ERP in the construction industry.