On Enterprise Systems Artifacts - Lund On Enterprise Systems Artifacts: Changes in Information Systems

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  • On Enterprise Systems Artifacts: Changes in Information Systems

    Development and Evaluation

    Jonas Hedman

    Department of Informatics, School of Economics and Management Lund University

    AKADEMISK AVHANDLING som för avläggande av filosofie doktorsexamen i Informatik vid Samhällsvetenskapliga

    fakulteten, Ekonomihögskolan, Lunds universitet, kommer att offentligen försvaras i hörsal 101 Ekonomicentrum II, Ole Römers väg 6, Lund

    tisdagen den 4 november 2003, kl. 13.00

  • Department of Informatics Ole Römers väg 6 S-223 63 LUND Sweden ISSN 1651-1816 Lund Studies in Informatics No. 2 ISBN 91-628-5845-9 © Jonas Hedman Printed in Sweden KFS AB Lund 2003

  • Document name DOCTORAL DISSERTATION Date of issue 2003-11-04

    Organization LUND UNIVERSITY School of Economics and Management Department of Informatics Ole Römers väg 6 S-223 63 Lund, Sweden

    CODEN:

    Author(s) Jonas Hedman

    Title and subtitle On Enterprise Systems Artifacts: Changes in Information Systems Development and Evaluation Abstract: Enterprise Systems are one of the most important developments in corporate information systems during the last decade. These integrated information systems are characterized by a number of features which include a very broad scope and functionality, as well as being generic, master data, and business-process orientated. Together, these features make Enterprise Systems unique vis-à-vis other information systems and have a profound impact on information systems development and evaluation. For instance, analysis, design, and realization during traditional information system development is replaced by the selection of a system and the evaluation of an underlying reference model, as well as the setting of configuration parameters. The focus of the study is the Enterprise Systems artifact and its impact on information systems development and evaluation. The aims are 1) to improve our understanding of the key characteristics of Enterprise System artifacts, leading to changes in information systems development and the increased importance of evaluation and 2) to develop methods and evaluation approaches for Enterprise Systems. The main research approach applied in gaining an increased understanding has been artifact evaluation, belonging to constructive research. The research reported upon in the thesis is presented in two parts. The first part synthesizes the text of part one with the seven included papers. The included papers address Enterprise Systems, information system development and evaluation in complementary ways leading up to the conclusion of part one. The concluding output of the thesis is an integrated framework addressing the implications of Enterprise System artifacts for information systems development and evaluation. The framework includes several causally-related components, including the Enterprise System artifact and its key characteristics, an Enterprise System life cycle (including the four interrelated tasks of selection, configuration, implementation and use & operation), COTS implementation methods, and the changing purpose of evaluation. In a sense, the conclusion is a theorizing of the nature of Enterprise System artifacts. Despite the fact that this thesis provides insights into the nature of Enterprise Systems, it is evident that more research is needed. Key words Enterprise Systems, ERP Systems, information systems development, evaluation, artifact evaluation, artifacts Classification system and/or index terms (if any) Supplementary bibliographical information

    Language English

    ISSN 1651-1816 Lund Studies in Informatics No. 2 ISBN 91-628-5845-9

    Number of pages 258

    Price

    Security classification

    Distribution by (name and address) Department of Informatics, Ole Römers väg 6, S-223 63 LUND I, the undersigned, being the copyright owner of the abstract of the above-mentioned dissertation, hereby grant to all reference sources permission to publish and disseminate the abstract of the above-mentioned dissertation. Signature______________________________________ Date 2003-09-23

  • Acknowledgements

    Finally, after spending minutes, hours, days, nights, weeks, months, and years, I have reached the end of the beginning. This effort could not have been accomplished without the help of many people, whom I would like to say thanks to.

    Firstly, I would like to express my sincere thanks to my supervisor Dipak Khakhar for his advice, encouragement and support during the last six months. I would also like to thank my former supervisor Agneta Olerup, who has put up with me for a long period of time. The next person is my former colleague, good friend and co-author Andreas Borell. Thomas Kalling also deserves special appreciation as a co-author, and friend, and for being very clear and frank during my internal seminar. Then I would like to take the opportunity to say thank you to the second opponent during my final internal seminar, Odd Steen. I would also like to offer my thanks to Sven Carlsson for providing inputs and ideas to the thesis. Next my thoughts turn to the Department of Informatics which has provided me with a working space and my friends there. A special thank you goes to Petter who commented on one of my very first papers and sold his skis to me.

    This work is one result of a partnership between the School of Economics and Management and SAP Svenska AB and I offer my thanks to Jim Hagemann-Snabe, Rickard Frenkel, Peter Krell, Thomas Thernborn and, in particular, Tove Saeland (KPMG). The collaboration with SAP is also leading to an increased number of contacts and collaboration within the School of Economics and Management, who also financed the partnership – thank you Dean Olof Arwidi. Furthermore, this is leading to contact with people at the Department of Business Administration, including Per Magnus Andersson, Ingmar Tuvfesson, Helge Helmersson, John Gibe and Lars Bengtsson, as well as Robert Lindroth, and Sten Wandel at the Lund Institute of Technology.

    To Peter Corrigan who proofread the thesis and to IDEA Group Publishing Inc. and Emerald (MCB UP Ltd) who allowed me to reprint material from their publications, I owe my thanks. And Lasse for the technology.

    To my father in law – Ingmar – thanks for your perceptive thoughts. I would also like to thank my mother who has provided me with a free and loving environment from which I have benefited. Finally, my thoughts go to my family – Anna, Julia and Carl. A special mention goes to Julia for informing

  • me that there is no such thing as a theory - there is only horsemanship. There is not enough space to write all the things that should be said to my dear wife and life partner, but I am immensely grateful for her encouraging kicks in the behind and her motivating question – WHEN?

    Höör, September, 2003

    Jonas Hedman

  • Dedicated to the memory of my father and brother

  • Contents

    PART ONE Chapter 1 INTRODUCTION AND OVERVIEW 1 1.1 Background 1 1.2 Clarification of some Terms 4 1.3 Purpose 6 1.4 Structure of Thesis

    12

    Chapter 2 PAPERS 15 2.1 Papers Related to Information Systems Development 15 2.1.1 Paper 1: Requirements Specification 15 2.1.2 Paper 2: COTS Methods 16 2.1.3 Paper 3: Business Model 16 2.1.4 Paper 4: ERPM Framework 18 2.2 Papers related to information systems evaluation 18 2.2.1 Paper 5: Enterprise Systems Artifact Evaluation 18 2.2.2 Paper 6: mySAP Workplace Artifact Evaluation 19 2.2.3 Paper 7: Narratives 20 2.3 Summary of Papers

    21

    Chapter 3 RESEARCH APPROACH 23 3.1 Methodology 23 3.1.1 Relationships and Limitations 27 3.2 Competing Values Framework 30 3.2.1 Development of CVF 31 3.2.2 Organizational 34 3.2.3 Managerial 35 3.2.4 Culture 35 3.2.5 Information Systems 36 3.2.6 Concluding Words on CVF

    37

    Chapter 4 ENTERPRISE SYSTEMS - THE ARTIFACT 39 4.1 Enterprise System versus ERP System 39 4.2 From Information Systems to Enterprise Systems 40 4.2.1 The Evolution of COTS Systems 42 Manufacturing Legacy 42 Accounting Legacy 43 Human Resource Management Legacy 44 4.3 Key Characteristics of Enterprise Systems 45 4.3.1 Industry Coverage 46 4.3.2 Scope of Enterprise Systems 47 4.3.3 Generic with a Touch 48 4.3.4 Master Data 53 4.3.5 Summary 54

  • 4.4 Conclusion on Enterprise Systems Artifact

    55

    Chapter 5 ENTERPRISE SYSTEMS LIFE CYCLE 57 5.1 Enterprise System Life Cycles 57 5.1.1 Discussion 59 5.1.2 Proposed Enterprise Systems Life Cycle 61 5.2 Selection 64 5.2.1 Discussion 66 5.3 Configuration 67 5.3.1 Discussion 69 5.4 Implementation 69 5.4.1 Discussion 72 5.5 Use & Operation 73 5.5.1 Discussion 77 5.6 Evaluation 78 5.6.1 Enterprise Systems Evaluation Framework 79 5.7 Summary of Literature Review 83 5.8 Conclusion of the Literature Review

    86

    Chapter 6 CONCLUSIONS 91 6.1 Integrated Framework 91 6.1.1 Contribution and Validity 98 6.2 Concluding Words

    100

    References 103 PART TWO Paper 1 CVA Based Framework for ERP Requirements Specification Paper 2 Understanding COTS System Implementation Approaches

    and Methodologies: The Case of ASAP Paper 3 The Business Model: A Means to Comprehend the

    Management and Business Context of Information and Communication Technology

    Paper 4 Enterprise Resourc