Chapter I

Introduction and Conceptual

Framework
 CHAPTER I

INTRODUCTION AND CONCEPTUAL FRAMEWORK

1.1 INTRODUCTION

Due to globalization, the organizations are forced to accept the information

management. The organizations expect to meet the stakeholders’ requirements,
competitive pressures, functional management, effective integration and flexibility in
business operations. So the organization should maintain different currencies, language,
tax policies according to which country their business operates. At the same time, it is
harder to uniformization of organization activities globally under one roof. In this
scenario, firms are investing heavily in Information Technology (IT) systems to
effectively integrate and coordinate these activities across country as well as shape the
way they conduct business. Keeping this trend firms around the world are implementing
packaged software called Enterprise Resource Planning (ERP) systems.

The firms in developed countries are widely accepting and applying ERP systems in
their organizations in comparison with developing countries. Statistics show that 88% of ERP
market is in North American and European countries (www.amrresearchcorp.com).
This gap in ERP implementation is directly related to the economic and technological
status of the respective country. That is, developing countries are facing many challenges
in applying information systems/information technology projects due to the poor and
unstable economic status which is reflected in the delay of the ERP implementation
(Huang and Palvia 2001). In India too many organizations have been taking initiatives
to introduce ERP in their organization so as to survive and meet competition (Ganesh
and Arpita Mehta 2010).

1.2 ENTERPRISE RESOURCE PLANNING (ERP)

ERP has been defined by researchers and practitioners in different ways. Broadly
speaking ERP is an enterprise-wide information system that integrates and controls all the
business processes in the entire organization.

According to Nah and Lau (2001) ERP is a packaged business software system
that enables a company to manage the efficient and effective use of resources (materials,

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human resources, finance, etc.) by providing a total, integrated solution for the
organization’s information-processing needs. ERP systems now have the functionality
and the capability to facilitate the flow of information across all business processes
internally and externally. Furthermore, ERP systems have the capability to reach beyond
their own corporate walls to better connect with suppliers, distributors and customers to
engage in e-business.

Klaus et al. (2000) ERP systems are comprehensive, packaged software solutions
[that] seek to integrate the complete range of a business’s processes and functions in order to
present a holistic view of the business from a single information and IT architecture.

Kumar et. al. (2002) defined Enterprise Resource Planning (ERP) systems as
configurable information systems packages that integrate information and information
based processes within and across functional areas in an organization.

O’Leary (2000) defined ERP systems as computer-based systems designed to

process an organization’s transactions and facilitate integrated and real-time planning,
production, and customer response.

Shehab et al., (2004) described that ERP software facilitates, if well-

implemented, the integration of all the functional information flows across the
organization into a single package with a common database. Therefore, it allows easy and
immediate access to information regarding inventory, product or customer data, and prior
history information

1.2.1 Evolution of ERP

According to Kang et al. (2008) legacy systems are constituted by the early
enterprise systems within organizations. These legacy systems are rigid in operation and
unsecured. These systems solved particular departmental needs, but lacked the ability to
integrate them. Therefore, it was usual to collect and process the same information
multiple times in different places, creating a serious challenge when decision makers
tried to retrieve the right piece of information in real time. This platform generated
serious asymmetries between different functional groups within the same organization.

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 Shankarnarayanan (1999) identified four phases in the ERP systems history as
follows:

Phase I: The 1960’s, most of the software packages (then usually bespoke
developed) were designed to handle inventory based on traditional inventory concepts.
The focus of manufacturing systems in the 1960's was on inventory control. Most of the
software packages then (usually customized) were designed to handle inventory, based on
traditional inventory concepts. During the mid-1960s, computerized Materials
Requirements Planning (MRP) systems began to replace ROP systems. These systems
represented the first off-the-shelf business application systems available in the market.
They supported the creation and maintenance of master data and Bill of Materials (BoM)
across all products and parts in one or more branch.

Phase II: In 1970’s, the focus shifted to MRP systems which translated the master
schedule built for the end items into time-phased net requirements for the sub-assemblies,
components and raw materials planning and procurement.

Phase III: In 1980’s, the concept of MRP-II(Manufacturing Resources Planning)

systems evolved, as an extension of MRP to shop floor and distribution management activities.

Phase IV: In early 1990’s, MRP-II was further extended to cover areas like
engineering, finance, human resources, project management, i.e. almost all the activities within
any business enterprise. Hence, the term Enterprise Resource Planning (ERP) was coined.

1.2.2 Functions and Characteristics of ERP System

According to Ould (1995), ERP covers the techniques and concepts employed
for the integrated management of business as a whole, from the view point of the
effective use of management resource, to improve the efficiency of an enterprise. ERP
integrates various functions of an enterprise such as sales, marketing, human resource,
MIS(Management Information System), accounting, finance, production, operations,
strategy, quality, logistics (SCM, Supply Chain Management), maintenance, CRM
(Customer Relationship Management), research and development. It helps to better
utilization, planning, control and integration of enterprise resource so that an enterprise
can achieve its long term as well as short term objectives.

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 According to Keller (1994), a ERP system has the following technological
characteristics:

 Use or integration of a relational database

 Several interfaces, including a Graphical User Interface (GUI)

 Openness to different hardware platforms

 Client-server architecture

 Consideration of supply chain

 Openness to internet and intranet

Davenport (1998) found that ERP systems collect data through a single
comprehensive database and make it available to modular applications that support all of a
firm’s value chain activities across functions, business units, and geographical areas. These
systems have emerged as the de facto operating standards for firms and represent generic but
multi-level configurable and customizable solutions that incorporate best practices which
basically reflect a series of assumptions about how firms operate in general.

Yen et al. (2002) pointed out that ERP facilitates the maintenance of a single set
of data across all business processes and provides common data access to all users.
An open system network architecture allows any module of the ERP system to be linked
or de-linked from the system without affecting other modules. ERP systems also contain
repositories, which capture all semantics in business processes, business objects, and firm
structures.

Harrold (2001) and Beretta (2002) observed that integration helps in the
coordination of business activities. ERP systems embed integration enabling technologies
and adopt a process view of the firm. This enables the management of firm
interdependencies, thereby enabling cross-functional information flows, language
sharing, and cognitive integration among functional units.

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1.2.3 Dimensions of ERP

Exhibit 1

Dimensions of ERP

Influences Changes Provides

a. Predominant corporations in a. The character of a. One of the most

the market. consulting companies important tools for
b. Small and medium b. The characteristics of reengineering.
companies. jobs in all areas
c. Competitors' behavior.
d. Business associates
necessities.

Increases cost

Shoots up
Market Share

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1.2.4 Advantages of ERP
Several research studies have identified various important benefits the ERP
systems bring to organizations. Kalakota (1999) cited the following as the ERP benefits:
 To set up a technological platform aimed at improving customer order processing.
 To consolidate diverse information technology pieces under a central backbone,
and to share common data and practices in order to reduce errors.
 To manage business information so as to make it available anywhere, anytime,
and to access information in real-time to facilitate better decisions.
 To establish a flexible infrastructure that allows organizations to adapt to the ever
changing environment. “Multi” capabilities (multi-currency, multi-language,
multi-companies) are required to operate effectively in the global environment.
According to Rowe (1999), ERP benefits are: Consolidation of information
technology applications, Standardization of company procedures and operational reports,
Optimization of business processes. Integration of these processes across organizational
functions and locations and Strategic management of business information.
O’Leary (2000) stated that an ERP system integrates the majority of the business
processes and allows access to the data in real time. According to Gardiner et al. (2002)
ERP improves the performance level of a supply chain by helping to reduce cycle times.
According to Siriginidi (2000), there are also some intangible benefits that an organization
may enjoy by implementing an ERP system including, better customer satisfaction, improved
vendor performance, increased flexibility, reduced quality costs, improved resource utility,
improved information accuracy and improved decision-making capability.
Koch (2002) summarized the main benefits and reasons companies adopt ERP
are: Integrating financial information, Integrating customer order information,
Standardizing and speeding up manufacturing processes, Reducing inventory and
Standardizing HR information.
According to Ashim Raj Singla (2005), tangible benefits after ERP Implementation
are: Inventory Reduction, Personnel reduction, Productivity improvement, Order
management improvement, Technology cost reduction, Procurement cost reduction, Cash
management improvement, Revenue/profit improvement, Transportation/ logistics cost
reduction, Maintenance reduction, and On time delivery improvement.

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Some of the key benefits of ERP listed by Garg Venkitakrishnan (2006) are
i) Reduction in manufacturing cycle time, production cost, inventory overheads,
requirement of manpower and delay in supply chain
ii) Increased transparency in procurements and customer satisfaction
iii) Further, it enables faster response to changing market situations and global outreach
iv) Finally it leads to better utilization of resources
Ramco software (www.ramcossoftware) mentioned ten key benefits that ERP
software has:
a. Scalability of the ERP system is easily change and adding new functionality of
the business needs.
b. Improved reporting in operational work stems from proper reporting. It allowing
various departments to access information seamlessly.
c. Data quality of an ERP system compared with manual record-keeping or other
traditional approaches are improved the business performance.
d. An ERP system eliminates delays and reduces cost of operations.
e. A direct benefit of using a good ERP system is improved customer relations as a
result of better business processes.
f. Having high-quality data allows businesses to use the power of intelligent
analytics tools to arrive at better business decisions.
g. Having the right ERP system in place means improved procurement, inventory,
demand forecasting, etc., essentially improving the entire supply chain and
making it more responsive.
h. An ERP system control the organizations better comply with regulations.
i. It helps to reduce the complexity and neatly designed system of workflows.
Eresource software listed ERP benefits as follows:
ERP offers the functionality support that need to increase efficiently across enterprise.
a. Completing daily task efficiently - Business automation.
b. Integrating department for real time collaboration and security.
c. Uniform monitoring system for customer, suppliers, vendors and partners

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 d. Managing organized and streamlined business process - purchase, sales, Inventory,
billing, production, receipt, payment, HR, Taxation, Excise and Exports.
e. Keeping day-to-day track sales, dispatch and payments.
f. Accessing daily report without depending on anyone.
g. Maintaining best practices and introducing Industry best practices.
h. Ensuring that everyone in the organization is responsible and accountable.
ERP systems have short comings too. For example, Davenport (2000) has
summarized the main criticisms directed at ERP systems as follows:
 Inflexibility: Once ERP is installed in a company, it is too difficult to change
how the company works and organizes its processes.
 Long implementation periods: It takes too long to implement ERP systems.
A three to five year implementation period of ERP systems is fairly common for a
large company.
 Promotes overly hierarchical structures: ERP systems presume that
information will be centrally managed and that organizations have a well-defined
hierarchical structure.
1.3 ERP IN INDIA
India is transforming into world IT hub and all major players in the field are
working constantly towards promoting and expanding their market. In this scenario
Enterprise Resource Planning (ERP) will be playing a major role in growth of small and
medium size industries in India apart from contributing largely into the big business
enterprises. ERP system will help streamline the functionality and technicality of a
software solution in an organization, without any doubt will be an added advantage in
generating return on investment.

If the facts and figures are to be believed, the ERP market could boom in India
and give the necessary impetus to stakeholders. ERP software solutions were initially
used only for back office functions. They were not given the due importance and treated
just like another supporting function. Reasons like lack of awareness formed one part
while other reasons were costs and technical difficulties.

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 Now, the companies go in for ERP and automatically started to learn more about
it either by force or felt need as they were left with no alternative. This indirectly created
the awareness among companies. They learned more on ERP and realized its diverse
applications. Finally they resorted to use of ERP for the whole of the company and
stopped the idea of restricting it to mere back office functions.
Financial burden is a major determinant of ERP market in India. Many companies
hesitate to invest in ERP due to the exorbitant costs involved in it. At the same time, it
has been found that most of the ERP vendors, have come out with an ideal ERP solution,
which will be affordable to small and medium enterprises.
1.4 ERP SYSTEMS IN GARMENT INDUSTRY
The garment industry has changed continuously in the last few years. It looks at
carrying out their business in systematic way. For this reason ERP can be used to plan out
the resources and keeping a proper data in software.
The ERP software is the latest high end solution for performing the business
efficiently. The software aims at keeping a track of data and making internal procedure
flow smoothly. For both textile and garment sector strategic planning is important and
ERP system is designed to support this through resource planning. It facilitates report
generation which has to be updated every time a progress takes place. This report can be
distributed among employees so that they also know which area has to be given more
attention for the completion of the task. The textile and garment industry is ever-changing
and thus it is important to know the customers need and record it.
ERP helps reduce operating cost because it integrates processes of the business
across departments onto a single information system. The problem of low inventory or
reduced operating cost is ruled out. Whenever resource is needed it is available on time
because everything has already been planned. The day to day management becomes easy
because it keeps a track of the warehouse also. Everything going into the data warehouse
is recorded thus planning for a specific day can be easily done. Due to the fact that every
activity is recorded the actual cost can be calculated easily. The unwanted ambiguity is
ruled out which makes the database user friendly.
Rahul Mehta, CMAI, President pointed out that the size of Indian domestic
readymade garment industry will double within five years due to economic prosperity,

9
simplified government policy, growth in fashion orientation and brand awareness as well
as consumer expectations.
According to the recent survey about market statistics conducted by CMAI,
currently the total size of the Indian apparel industry is around Rs 2,00,000 crores. Out of
this, unstitched apparels like dhotis and sarees constitute Rs 50,000 crores. The size of
organized retail sector is around Rs 40,000 crores, whereas the remaining Rs 1,10,000
crores is the size of the unorganized apparel sector. The growth rate of the organized
branded apparel industry was zero during the last two years when there was 10 percent
excise duty on this sector. After the removal of excise duty, the growth rate is expected to
be around 6 to 7 percent for 2014-15 and 10-12 percent for the next year.
1.4.1 ERP Application Modules for Garment Industry
To be successful in an industry characterized by changing customer demands and faster
product cycles, it is important for garments manufacturers, to be connected, responsive and
agile within, and across the extended enterprise. A right ERP solution and an able partner to
implement and support it, make this possible. ERP vendors integrate the processes and business
systems, making information available in real time and increasing visibility across the entire
value chain, thus ensuring that the enterprise is connected, responsive and agile. They are able
to automate the entire enterprise with modules which work seamlessly integrated. ERP
designed features are Multi-Company, Multi Language and manage entire process chain, from
Knitting/Weaving, Cutting, Sewing in a single system
The following are the various modules in ERP Apparel application. (Based on
Apparel+ ERP Suite):
 Merchandizing (Sales)
Enquiry, Quotation, Follow up, Communication, Sample orders, Sales orders,
Order grouping and review with reports,
 Procurement & Inventory Management
Purchase order, Goods receipt, Supplier invoice, Debit / Credit note, Goods
return, Material outward inspection, Pending orders, Supplier evaluation, Stock
maintenance with reports

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 Production Planning & Control

Yarn/Fabric program, Accessory and packing material, Program allocation jobs,

Budgeting, Quotation, Bill of materials, Scheduling, Approvals & follow ups,
Process sequence, Production program, Program closure, Process management,
Production and floor management, Printing/Embroidery and other stages
management, Sewing, Checking/Ironing/Packing/Dispatch summary, Quality and
Inspection with reports

 HR & Payroll Management

Employee records, Pay slip, Contract employee details, Loans and advances,
Salary components, Employee history with reports

 Financial Accounting

General ledger, Group ledger, Vouchers, Cash, Bank, Journals, Sales, Purchase,
and Profitability analysis, Financial position analysis with reports

 Shipping and Documentation

Shipping bill, Letter of credit transfer, Chamber of commerce, Bank negotiation,

Bill of exchange, Bank-realization certificate, payment history with reports

 Web based Reports

Buyer order statement, Buyer order cancellation, Job order statement and order
planning and position with reports

 Housekeeping Setup & Registration

Grand rights, User setups, User entry log maintenance, and other customization

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 Exhibit 2
ERP module for garment industry

12
 Exhibit 3
General ERP Module

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1.4.2 ERP apparel vendors list

The following are some of the ERP vendors for apparel industries in the market:

1. Apparel Connect by db Solutions (Thailand)

2. Indigo8 by Indigo8 Solutions

3. StyleMaster by Baywood Technologies

4. Visual AS/AP by AS/AP Apparel Software

5. AIMS Apparel Software by AIMS 360

6. ABS by Apparel Business Systems

7. ADS System 9001 by Apparel Data Systems

8. Apparel Innovator by Plural Technology

9. Apparel PLM Software by Bluewater Software

10. Apparel+ by Axon Infosoft

11. ApparelMagic by ApparelMagic

12. Brightpearl by Brightpearl

13. Dant Fashion Software by Dant Software Solutions

14. Fashion Master by Fashion Master Software

15. Fashion One by Softengine

16. FashionManager by RLM Apparel Software Systems

17. Fashionshare by Fashionware Technologies

18. FashionTek by Guru Computers

19. FT-STYLE Apparel Software by Tower Computing

20. Garment Base Pro by Island Technologies

21. Garment CAD by Iechotech

22. i-netGarment by iGarment

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 23. MerchanNet by ibuyer.hk Software Technology

24. MERCHANT by UTC RETAIL

25. Niche Garments by Niche Fashion Technology

26. Pattern Design Software by Assyst/Bullmer

27. QApparel by Quantum Computer Systems

28. Simparel by Simparel

29. T-Boss by Apparel Management Systems

30. Template for Microsoft Dynamix by Sunrise Technologies

31. Vertex Apparel by Business Management Systems

32. VisiApparel by Visionet Systems

33. Vista Appare by Technovista

34. Visual 2000 ERP by Visual 2000

35. WFX Web PDM / Web PLM by World Fashion Exchange

36. Wikipixel by Wikipixel

37. Win StyleCAD by Winfashion Technologies

38. World on a Hanger by World on a Hanger

39. Xe-ERP Apparel Software by XeBusiness

40. Zukku by Efectra Software

1.5 GARMENT UNITS (MEDIUM SIZE ENTERPRISE) IN TIRUPUR

Definition of enterprise

It means an industrial undertaking or a business concern or any other

establishment, by whatever name called, engaged in the manufacture or production of
goods, in any manner, pertaining to any industry specified in the First Schedule to the
Industries (Development and Regulation) Act, 1951 or engaged in providing or rendering
of any service or services

15
Definition of medium enterprise

It means an enterprise classified as such under sub-clause (iii) of clause (a) or

sub-clause (iii) of clause (b) of sub-section(1) of section 7; a medium enterprise, where
the investment in plant and machinery is more than five crore rupees but does not
exceed ten crore rupees; In the case of the enterprises engaged in providing or rendering
of services, as –Medium enterprise, where the investment in equipment is more than
two crore rupees but does not exceed five crore rupees

Tirupur Garment Units

Tirupur is an important Trade Center of India which is famous for knitted garment
wears. It is situated near Coimbatore which is known as the Manchester of South
India.Tirupur is a major source of Foreign Exchange for the country because of its
exports.It is famous for the export of all knitted garment wears such as T-Shirts, Polo-
Shirts, Sweat Shirts, Banians, Pyjamas, and Night Dresses on various Fabrics like Single
Jersey, Interlock, Fleece, Polar Fleece, etc. Tirupur Exporters Association (TEA) was
established in the year 1990. This is an Association exclusively for exporters of cotton
knitwear who has production facilities in Tirupur. From the modest beginning TEA has
grown into a strong body of knitwear exporters. Today, TEA has a membership of 897
Life members and 155 Associate Members.

The members of the Association, from the beginning, have resolved to develop
their organization focusing on

• Multilateral growth of knitwear industry and exports

• Development of infrastructural needs for Tirupur

• Implementation of schemes for the benefit of the society and public

• Promotion of constructive co-operation with workers with fair division of rewards.

• General upliftment of quality of life of Tirupur

According to Mr. Sakthivel, President, TEA, the overall apparel exports has
registered a growth of 17.6% in the half yearly period of this financial year and recorded US
$ 8.3 bn. At a time when the global markets have started opening up and buyers' sentiment is

16
improving, the knitwear industry in Tirupur, which houses a large number of small and
medium enterprises (SMEs), has asked the Centre for a Rs 300 crore market promotional
fund and a separate fund for R&D. The industry also wants the government's help in skill
development. Garment industry is confident that these initiatives would help the knitwear
sector to achieve the target of exports from Tirupur to Rs 36,000 crore in 2016-17

Besides, research and development it is important in increasing productivity and

efficiency and reducing costs in the exporting units (most of which are SMEs), which
will help increase the competitiveness of Indian garments in the global markets. To carry
out this exercise, the TEA should be allocated a special fund. Though the total textile
exports from India are $35 billion, the commerce ministry provides only Rs 6 crore for
market promotion activities through schemes like Market Access Initiatives (MAI) and
Market Development Assistance (MDA).

1.6 GOVERNMENT SUPPORT TO ADOPT TECHNOLOGY IN MSME SECTOR

SMEs require support from government and industry bodies to overcome the
limitations. In line with this, the National Manufacturing Competitiveness Council (NMCC)
has announced schemes for developing global competitiveness of the Indian MSMEs sector.

• Marketing Assistance and Technology Up-gradation: The scheme focuses on

upgrading technology for increasing competitiveness in marketing. Activities
include technology up gradation for packaging, competition studies and
development of marketing techniques.

• Technology and Quality Up-gradation: The scheme aims to encourage MSMEs to

adopt global standards for improving the quality of goods.

• Promotion of Information and Communication Tools (ICT): The scheme focuses

on encouraging the adoption of ICT technology by SME clusters, which have
been delivering world-class products and, therefore, have potential for growth in
exports. The scheme covers building E-readiness infrastructure3 and web portals
and linking it to national level portals for reaching global markets, training
MSME personnel for ICT applications, and the development of software solutions
for efficient management of production at clusters, among other measures.

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Promotion of Information & Communication Tools (ICT) in MSME Sector
The main objective of the scheme is to motivate MSMEs to adopt ICT tools and
applications in their production and business processes with a view to improve their
competitiveness in national and international markets. The likely development outcomes
of the scheme will be:
 To promote an echo system of cost effective and all inclusive ICT applications for
MSMEs through cloud computing
 To establish Inter and Intra Networks amongst Technology Centres and
Institutions of Office of DC, MSME
 To enable MSMEs to search for value chain (raw materials, experts) online
 Adoption of best practices to improve quality of products and services
 Reducing delivery cycle time
 IT as a medium of communication to revamp access to the markets, enhanced
access empowers the market to undertake direct, faster and better transactions.
 Automated procedure for cost reduction
1.7 ERP -END USERS
According to Techtarget, in information technology, the term end user is used to
distinguish the person for whom a hardware or software product is designed from the
developers, installers, and servicers of the product. The "end" part of the term probably
derives from the fact that most information technologies involve a chain of interconnected
product components at the end of which is the "user." The term end user thus distinguishes
the user for which the product is designed from other users who are making the product
possible for the end user. Often, the term user would suffice. End user uses the ERP system
to fetch information or to create new thing. End user is using the final product which it is
meant for and ERP consultant designs the product/updating and modification.
The role of end users is working in easy access menu and they will not have
authorizations of using implementation settings if they have doubt they will send query to
the implemented vendor company and get solutions
ERP consultant role is to build the system, change and modify/update currently
installed ERP system for the end users.

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1.8 STATEMENT OF THE PROBLEM

The importance of ERP implementation has been well recognized. At the same
time, its implementation and success depends upon various factors and they are different
in different countries and also vary between industrial groups. Further, acceptance of
ERP is varied according to organization change and adoption of ERP. Implementation
phases and key factors are required to be identified for the successful launching of ERP.
This is a real task. If, success and the failure factors of ERP are identified in the pre-
implementation phase itself, then definitely it will lead to successful implementation and
assure better outcomes in post-implementation phase. Especially for the medium units a
first hand study on the opinions and experience of end users, in the four phases of ERP
implementation, assumes greater significance. This is because for large units/companies
studies are available. Hence, the present study on medium-sized units. In order to focus
on the research problem, the following questions are framed

1. What is the End users opinion on introducing ERP in the selected units?

2. In what way ERP influences project outcomes and business outcomes?

3. What are the key factors that impact ERP system implementation?

4. What are the factors that influence the ERP implementation at most?

1.9 OBJECTIVES

1. To analyze the personal characteristics of end users and their influence on the
different phases of ERP implementation.

2. To understand the experience of end users during the different phases of ERP
implementation.

3. To identify and rank the key factors in each phase of ERP implementation.

4. To find out the effectiveness of training methodologies on ERP success.

5. To examine the key factors that contributed for the success of ERP implementation in
the selected units.

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1.10 HYPOTHESES

The following hypotheses are framed for the study.

1. There is no significant association between the personal variables of sample

respondents (namely age, annual income, current positions, current working areas,
education qualification, computer proficiency, experience, work experience in the
present company, previous experiences in ERP and practicing ERP in the present
organization) with ERP implementation Phases (Pre-implementation, Implementation,
Stabilization and Post-implementation)

2. There is no significant difference between the end users opinion variables with four
phases of ERP implementation (pre-implementation, implementation, stabilization
and post implementation)

3. There is no significant difference between ERP key factors included in ERP

implementation phases.

4. There is no significant difference between the end users opinion regarding ERP key
factors (End users, Organization, Project management and External factors) with ERP
phases (Pre-implementation, Implementation, Stabilization and Post-implementation)
that contributed for the ERP output/success.

1.11 IMPORTANCE OF THE STUDY

To overcome ERP implementation problems in garment units, more extensive

studies are needed. It helps to reduce risks/failure and leads ERP implementation success.

1. This study would help the organizations, ERP consultants and ERP vendors to know
about ERP implementation phases in the perspective of end users.

2. The organization can identify the end user related factors like ERP awareness,
Participation in ERP planning and ERP package selection, Communication, Training
and Education, Change management, Motivation, Learning, Work efficiency and time
pressure and individual productivity. ERP supports the organization development in
technology aspects.

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3. It helps the project managers for process redesign, scale of implementation. In project
management includes ERP plans, vision, policy, rules and goals, Communication, Task
definition, Schedule manager, Responsibility assigned, Team building, Consultant
knowledge, support and Services, Business process reengineering, Module specification,
ERP package design and customization, ERP compatibility, Security issues, Data
management, Data analysis and Transparency and Difficulty in ERP package.

4. The organization should rethink over the following factors in the implementation
stages; Vision, Top management support and Involvement, Cost – Benefit analysis,
Human resource policy, Communication management, Training and Education,
Organization learning, Work group relationship, Functional departments Integration,
Decision making ability, Feedback system, Conflicts and problem management, Risk
management, Work group productivity, Return on ERP implementation benefits
analysis and internal reports. It helps to reduce audits, checks and controls.

5. It helps to formulate the technology aspect of strategies to the organization. This

strategy includes external factors like stakeholders, Customer, Supplier & ERP
vendors, Competitors, and ERP Reports for growth, provide solutions and/or make
decisions.

6. Top management will get the actual information and scenario about the ERP
implementation phases and key factors of garment industry.

7. ERP end users who are presently working in garment industry will know about their
ERP phases wise key factors that contributed for successful implementation of ERP
that support the top management/ERP vendors.

8. ERP implementation Questionnaire constructed in the present study would help

further research.

9. The findings of this research would help to identify industry-specific solutions in ERP
implementation

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1.12. CHAPTER SUMMARY

This chapter has provided an overview of the ERP Systems, end users, garment
industry and Government support to adopt technology. It reviewed ERP systems in
general including background information, evolution, functions and characteristics,
dimensions, advantages, disadvantages, ERP application modules for garment industries,
major vendors and medium size enterprise.

In the background information section, basic concepts, definitions and

characteristics of ERP systems were described and the key factors and phases for
ensuring the successful ERP implementation at garment units were identified.

Research problem was identified and Questions were raised. Research Objectives
and Hypotheses were formulated. The significance of this research was discussed.

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