Table Of ContentStrategic ERP Extension
and Use
Elliot Bendoly
F. Robert Jacobs
Editors
Stanford University Press
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STRATEGIC ERP EXTENSION AND USE
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STRATEGIC ERP
EXTENSION AND USE
Elliot Bendoly and F. Robert Jacobs
STANFORD BUSINESS BOOKS
An imprint of Stanford University Press
Stanford, California 2005
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Stanford University Press
Stanford, California
© 2005 by the Board of Trustees of the Leland Stanford Junior University.
All rights reserved.
No part of this book may be reproduced or transmitted in any form or by any
means, electronic or mechanical, including photocopying and recording, or in
any information storage or retrieval system without the prior written permission
of Stanford University Press.
Printed in the United States of America on acid-free, archival-quality paper
Library of Congress Cataloging-in-Publication Data
Strategic ERP extension and use / [edited by] Elliot Bendoly and F. Robert Jacobs.
p. cm.
Includes bibliographical references and index.
ISBN 0-8047-5098-X (cloth : alk. paper)
1. Management information systems. 2. Business planning. I. Bendoly,
Elliot. II. Jacobs, F. Robert.
HD30.213.S77 2005
658.4(cid:2)038—dc22 2005011864
Typeset by G&S Book Services in 10/13.5 Sabon
Original Printing 2005
Last figure below indicates year of this printing:
14 13 12 11 10 09 08 07 06 05
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Contents
1 Introduction: Realizing the Epic Dream of ERP 1
E. Bendoly and F. R. Jacobs
PART I. ERP Rebirth and Advanced Viewpoints 11
2 Strategy as a Critical Factor in Applied ERP Success 13
S. Abdinnour-Helm and C. Lengnick-Hall
3 The “New” Users: SMEs and the Mittelstand
Experience 36
T. Schoenherr, M. A. Venkataramanan, A. Soni,
V. A. Mabert, and D. Hilpert
4 Enterprise Applications: Building Best-of-Breed
Systems 52
V. A. Mabert and C. A. Watts
5 Getting More Results from Enterprise Systems 71
T. H. Davenport, J. G. Harris, and S. Cantrell
PART II. Value Extensions Beyond the Enterprise 85
6 Agility Through Standardization: A CRM/ERP
Application 87
T. F. Gattiker, D. Chen, and D. L. Goodhue
7 ERP-Driven Replenishment Strategies in
Make-to-Order Settings 97
E. P. Robinson Jr. and F. Sahin
8 ERP as a Platform for Vendor Managed Inventory 108
M. V. Tatikonda, C. V. Brown, and I. Vessey
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vi Contents
9 IT-Supported Productivity: Paradoxes and
Resolution in R&D 130
D. A. Joseph and J. Ettlie
10 ERP as a Resource for Inter-Organizational
Value Creation 140
T. E. Vollmann
PART III. Future Visibility and Accountability 153
11 Enabling ERP Through Auto-ID Technology 155
E. W. Schuster, D. L. Brock, S. J. Allen, P. Kar,
and M. Dinning
12 Auditing the System in Use: Value Beyond the
Baseline 172
J. Sarkis and R. P. Sundarraj
13 The Path of the Enlightened Manager:
Prescriptions for ERP Evolution 191
L. L. David and E. Bendoly
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Contributors
Chief Editors
Dr. Elliot Bendolyis a faculty member in Decision and Information Analy-
sis at Emory University’s Goizueta Business School. Prior to academia, he
worked as a research engineer for the Intel Corporation. He holds a Ph.D.
in the fields of operations management and decision sciences from Indi-
ana University. Along with these specializations, his academic back-
ground includes an information systems orientation including database,
ERP, and knowledge management focuses. During this time, he served as
an instructor and developer of SAP implementation and ABAP/4 pro-
gramming curriculum. More recently, he has been involved with course-
work on IT supported service operations and supply chain management.
He has published in a number of academic journals, including the Jour-
nal of Applied Psychology, Journal of Operations Management, Journal
of Service Research, European Journal of Operational Research, Interna-
tional Journal of Operations and Production Management, Decision Sup-
port Systems, Information and Management, and Business Horizons. His
current research focuses on operational issues in IT utilization and orga-
nizational behavioral dynamics.
Dr. F. Robert Jacobsis the E-II Faculty Fellow and Professor of Operations
Management at the Kelley School of Business, Indiana University. He has
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viii Contributors
degrees in industrial engineering and computer and information science,
an MBA, and a Ph.D. in operations management. He is the author of over
50 research articles on topics that include inventory control, ERP sys-
tems, design of manufacturing facilities, cellular manufacturing, and the
scheduling of manufacturing operations. He is coauthor of two widely
used operations management textbooks: Operations Management for
Competitive Advantage, 10th edition, and Manufacturing Planning and
Control Systems for Supply Chain Management, 5th edition (both aca-
demic and professional versions of this book are available). He is co-
author of a book titled Why ERP? A Primer on SAP Implementation
(widely used in college courses to introduce ERP concepts and the imple-
mentation process). These books are published by McGraw-Hill/Irwin.
Professor Jacobs teaches the MBA core operations management course in
the Kelley School and has recently taught courses in supply chain man-
agement and E-OPS. Over his 20 years of professional experience, he has
been a consultant to many companies. He is currently involved in a tech-
nology transfer project with Honeywell Aircraft Landing Systems that
deals with the development of a new aircraft brake disk using carbon-
composite technology. Professor Jacobs is a fellow of the Decision Sci-
ences Institute and past president of the institute.
Contributors
Dr. Sue Abdinnour-Helm, Ph.D., is an Associate Professor of Operations
Management in the Barton School of Business at Wichita State University.
Her research interests and expertise are in operations analysis and im-
provement, enterprise resource planning, facility layout, and supply chain
management. Dr. Abdinnour-Helm has won several awards of excellence
in both teaching and research. She has published her work in academic
and practitioner journals, including European Journal of Operational Re-
search, International Journal of Production Research, International Jour-
nal of Physical Distribution and Logistics Management, Production and
InventoryManagementJournal,andJournalofEngineeringandTechnol-
ogyManagement.Dr.Abdinnour-Helmhasconsultedwithdifferentcom-
paniesontopicsoftechnologyandoperationsmanagement.Sheisamem-
ber of several professional organizations, including APICS, INFORMS,
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Contributors ix
POMS, AIS, and DSI. She regularly makes presentations at national and
international conferences and to various other professional groups.
Dr. Stuart J. Allen is professor emeritus at Penn State–Erie, the Behrend
College. He works on design of decision aids for application in manufac-
turing environments. His educational background includes a bachelor of
science degree in mechanical engineering from the University of Wiscon-
sin, a master’s degree in mechanical engineering from Seattle University,
and a Ph.D. in engineering mechanics from the University of Minnesota.
Dr. Allen began his research career in the field of non-Newtonian fluid
mechanics and has published over 50 journal articles in engineering and
management science. He has also owned and operated three businesses in
Wisconsin and New York State.
Dr. David L. Brockis Principal Research Scientist at the MIT Auto-ID Labs
and the founding director of Brock Rogers Surgical, a manufacturer of
microrobotic devices. He has worked with a number of organizations, in-
cluding MIT’s artificial intelligence lab, Massachusetts Eye and Ear Infir-
mary, DARPA, Celadon, Loral, BBN, and Draper Labs. Dr. Brock’s in-
terests include distributed systems control, Internet control, large system
simulation, robotics, and AI. He has several publications and four pat-
ents. He has received several awards, including the Wunsch Foundation
Award for outstanding mechanical design, Tau Beta Pi, and Pi Tau Sigma.
Dr. Brock holds bachelors’ degrees in theoretical mathematics and me-
chanical engineering, as well as master’s and Ph.D. degrees from MIT.
Dr. Carol V. Brown is Associate Professor of Information Systems, Kelley
School of Business, IUPUI Indianapolis. Her general areas of specializa-
tion are management and design of information systems in large organi-
zations and the management of end-user computing strategies and tactics.
Her recent work has surrounded enterprise system implementation issues,
IT’s role in mergers and acquisitions, and design and governance of the
IT organization. Publications of her research can be found in highly re-
spected outlets such as Information Systems Management, MIS Quar-
terly, Information Systems Research, Journal of Management Informa-
tion Systems, and Organization Science.