The influence of ERP system implementation on the operational performance of an organization

Madapusi, Arun; D′Souza, Derrick E.

doi:10.1016/j.ijinfomgt.2011.06.004

Cited by 110 publications

(75 citation statements)

References 38 publications

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“…ERP systems may be implemented in modules. A company does not have to conduct a full scale implementation; on the contrary, certain modules could be implemented on the basis of its special needs and requirements [65]. According to Yeh, Yang, and Lin [66], it would be unwise to avoid implementing most of the available modules, since only full implementation really ensures the expected benefits.…”

Section: H7mentioning

confidence: 99%

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Critical success factors for ERP implementation in SMEs

Chatzoglou

Fragidis

Chatzoudes

et al. 2016

Annals of Computer Science and Information Systems

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Abstract-The highly competitive global environment of the last few decades has urged companies to rely on Information Systems (IS) in order to improve customer service, reduce costs and increase productivity. In that direction, Enterprise Resource Planning (ERP) systems are being used as significant strategic tools that provide competitive advantages and lead to operational excellence. Despite that, ERP implementation projects are complicated, costly and include high failure risks. The present study aims (a) to develop and (b) empirically test a conceptual framework that investigates the factors affecting ERP system effective implementation in Small and Medium Enterprises (SMEs). The examination of the conceptual framework was made with the use of a newly-developed structured questionnaire that was distributed to a group of Greek SMEs. After the completion of the research period, 159 usable questionnaires were returned. The reliability and the validity of the questionnaires were thoroughly examined, while research hypotheses were tested using the "Structural Equation This work was not supported by any organization.According to Garg and Garg [8], this "enables the decisionmaking process to be timely, consistent and reliable across organizational units and geographical locations" (p. 424).ERP implementation has various benefits throughout the organisation: elimination of redundant information, drastic declines in inventory, reduction of production cost, better understanding of the changing customer needs, more efficient management of the extended network of suppliers and customers, increased productivity, improved response time, and decreased production cycle [5] However, ERP implementation requires considerable financial resources, while the whole implementation project is considered complex, lengthy, and quite challenging [9] [ 1 3 ] . A s a r e s u l t , t h e s u c c e s s r a t e o f s u c h p r o j e c t s i s considered to be quite disappointing [14] [15] [16]. More specifically, Samuel and Kumar [17], argue that the success rate is, only, around 50%, while approximately 90% of ERP implementation projects are late, or over budget. On the same vein, Umble and Umble [18] reported failure rates between 50% and 75%. Therefore, additional empirical studies are necessary in order to assist companies in increasing the success rates of ERP implementation projects.Under that context, the aim of the present study is twofold: (a) develop an original conceptual framework (research model) examining the impact of various research factors on ERP implementation success, (b) empirically test that framework, using data from Small and Medium Enterprises (SMEs) located in Greece (empirical research).(a) The development of the conceptual framework was based on two methodological steps: firstly, a review of the literature identified the factors that were used by previous studies as antecedents of ERP implementation success; secondly, a panel of experts was used in order to discuss these factors and provide a list of the most si...

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Section: H7mentioning

confidence: 99%

“…Some empirical studies have argued that there is a relationship between the number of implemented modules and the functional effectiveness of the ERP system [67]. After all, the more modules a company implements, the higher its benefits from cross-operational cooperation [65].…”

Section: H7mentioning

confidence: 99%

Critical success factors for ERP implementation in SMEs

Chatzoglou

Fragidis

Chatzoudes

et al. 2016

Annals of Computer Science and Information Systems

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“…As stated above, ERP implementation is a multi-level task, involving all business activities, and, often, requiring between one and two years of continuous effort [19] [20]. Therefore, an effective project management strategy should be in place in order to control the whole implementation process.…”

Section: Implementation Teammentioning

confidence: 99%

Antecedents and outcomes of ERP implementation success

Chatzoglou¹,

Chatzoudes²,

Apostolopoulou³

2016

Annals of Computer Science and Information Systems

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Abstract-Enterprise Resource Planning (ERP) systems have established a reputation in the world of business as indispensables tools that integrate all departments and functions across a company into a single computer system. However, implementing an ERP system does not always result in enhanced organizational performance. In order to ensure successful implementation, companies should study the critical factors having an impact on the whole procedure. In this context, the present study proceeds in developing and testing an original conceptual framework (research model), which explores the factors having an impact on ERP implementation success (internal environment, technology-related issues, implementation team, end-users), as well as the impact of the implementation itself on organisational performance. The proposed conceptual framework was tested, using a newlydeveloped structured questionnaire, in a sample of 204 Greek companies that have already implemented an ERP system. Enterprise Resource Planning (ERP) systems are software systems which can be customized to integrate the business processes of a company, in such a way, that they are visible and accessible by the management in real-time [4]. An ERP system, designed to serve the modern sophisticated management, enables its users to coordinate key business practices across functions more efficiently, collect corporate data more holistically and offer optimal control over the operations of the organisation [5].When an ERP system is successfully implemented, it promises to manage and integrate all business processes and functions within an organization [6] [7]. The integration, brought by ERP implementation, helps organizations to increase This work was not supported by any organization. and improve their overall market position, in order to gain competitiveness in a rapidly changing business environment [ 8 ] . I t a l s o h e l p s d i f f e r e n t d i v i s i o n s s h a r e d a t a a n d knowledge, reduce costs and improve management of business processes [9] [10].Due to the potential benefits of ERP systems, most of the organizations invested both time and money in their implementation [11]. However, ERPs have a reputation of costing a lot of money and providing limited results [10]. Some of the causes, cited in the relevant literature, for failed ERP projects include: poor project management planning, lack of business management support, unexpected return on investments, insufficient education and training, and, finally, weakness to redesign business processes [12] [23]. Despite that, the literature review analysis that has been conducted, failed to identify any empirical studies adopting a multidimensional approach, incorporating both antecedents and outcomes.The present study aspires to bridge that gap in the relevant literature, developing and testing a threedimensional conceptual framework (research model). More specifically, the first dimension includes the antecedents of ERP successful implementation (internal environment, technology-related issues,...

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“…Among the benefits found in an ERP system from the Supply-chain Management (SCM) perspective, we can list: access to specialized professional information, that the consultants of the supplying company that designed the product provide, the avoidance of personal decisions, that may sometimes be erroneous; using tested software that works in other companies, supporting decisionmaking by providing analysis and reporting tools needed to monitor a business [Chang, 2008]. Several studies have demonstrated the existence of a dependency between the number of modules developed by the software application and the subsequent operational performance that it can provide [Madapusi, 2012]. So many specialists say that when software applications have more than 8 modules their efficiency decreases [Gattiker, 2005;Mabert, 2001].…”

Section: Introductionmentioning

confidence: 99%