Exploring managerial factors affecting ERP implementation: an investigation of the Klein‐Sorra model using regression splines

Abstract. Predicting successful implementation of enterprise resource planning (ERP) systems is still an elusive problem. The cost of ERP implementation failures is exceedingly high in terms of quantifiable financial resources and organizational disruption. The lack of good explanatory and predictive models makes it difficult for managers to develop and plan ERP implementation projects with any assurance of success. In this paper we investigate the Klein & Sorra theoretical model of implementation effectiveness. To test this model we develop and validate a data collection instrument to capture the appropriate data, and then use multivariate adaptive regression splines to examine the assertions of the model and suggest additional significant relationships among the factors of their model. Our research offers new dimensions for studying managerial interventions in IT implementation and insights into factors that can be managed to improve the effectiveness of ERP implementation projects.     

Active ERP implementation management: A Real Options perspective

Although enterprise resources planning (ERP) implementation has been one of the most significant challenges of the last decade, it comes with a surprisingly high failure rate due to its high risk nature. The risks of ERP implementation, which involve both technical and social uncertainties, must to be effectively managed. Traditional ERP practices address the implementation of ERP as a static process. Such practices focus on structure, not on ERP as something that will meet the needs of a changing organization. As a result, many relevant uncertainties that cannot be predefined are not accommodated, and cause the implementation fail in the form of project delay and cost overruns. The objective of this paper is to propose an active ERP implementation management perspective to manage ERP risks based on the Real Options (RO) theory, which addresses uncertainties over time, resolves uncertainties in changing environments that cannot be predefined. By actively managing ERP implementation, managers can improve their flexibility, take appropriate action to respond to the often-changing ERP environment, and achieve a more successful ERP implementation.     

The critical success factors for ERP implementation: an organizational fit perspective

Since early 1990s, many firms around the world have shifted their information technology (IT) strategy from developing information systems in-house to purchasing application software such as enterprise resource planning (ERP) systems. IT managers responsible for managing their organization’s ERP implementation view their ERP systems as their organizations’ most strategic computing platform. However, despite such strategic importance, ERP projects report an unusually high failure rate, sometimes jeopardizing the core operations of the implementing organization. This study explores the root of such high failure rate from an “organizational fit of ERP” perspective. Based on the relevant literature, we define the concept of organizational fit of ERP and examine its impact on ERP implementation, together with ERP implementation contingencies. The results from our field survey of 34 organizations show that ERP implementation success significantly depends on the organizational fit of ERP and certain implementation contingencies.     

A practical model on controlling the ERP implementation risks

Although ERP systems were already introduced many years back and were implemented in different organizations, there are still companies who hesitate to decide about establishing ERP systems in their structure. This hesitation will itself result in the projects to go in vain. On the other hand, taking into account the Iranian organizations, the unfamiliarity with these systems is obviously comprehended, something that stems from the lack of information in decision-makers and managers concerning the above-mentioned issue, together with the feeling of fear and inconvenience with this novel technology.     

Relationships among ERP post-implementation success constructs: An analysis at the organizational level

Enterprise resource planning (ERP) systems implementation success factors have been widely researched; however, few have investigated ERP post-implementation success in organizational contexts. The paucity of research into ERP system success evaluations partly motivates this research. To that end, the objective of this study is twofold. First, it primarily investigates the relationships among six constructs or dimensions in a respecified ERP system success measurement model, which was developed from prior relevant frameworks. Second, this research adds to the body of knowledge in the information system (IS) success evaluation domain, especially with its focus on ERP packages. The extended ERP system success model was tested using data collected in a cross-sectional field survey of 109 firms in two European countries. Structural equation modeling (SEM) was used to test six relevant hypotheses. The SEM results showed that five out of the six hypotheses have significant, positive associations. Namely, the constructs of System Quality, Service Quality, Individual Impact, Workgroup Impact, and Organizational Impact have strong relevance in ERP success conceptualization, whereas Information Quality does not, at least, in the context of our data. The pertinence of the study’s findings for IS success evaluation as well as its implications for practice and research are discussed.     

A step-by-step performance assessment and improvement method for ERP implementation: Action case studies in Chinese companies

The implementation of enterprise resource planning (ERP) is a complex process, and the failure rate remains very high. The literature has reported over 80 critical success factors for ERP implementation, but companies typically do not know to exploit them. In this article, a step-by-step assessment and improvement method for ERP implementation is proposed and applied in three companies. First, a five-stage ERP implementation model is proposed. Second, about 80 critical success factors (CSFs) from the literature are elaborated into key performance indices (KPIs), which are associated with each stage of ERP implementation by ten local ERP experts. Third, the weights of the KPIs are calculated using the Dumpster–Shafer method and the evaluation of ten experts. During the implementation process, performance is measured at each stage and remedial actions are identified if the performance is below expectation. An implementation flowchart is developed based on a five-stage model and the philosophy of continuous improvement. Three action cases in Chinese manufacturing companies are conducted to illustrate the effects of the assessment model, which is also currently being used by a consulting company specialising in ERP implementation. With further evaluation by local experts, the model has the potential to serve as a guideline for ERP implementation in other countries.     

Rethinking ERP success: A new perspective from knowledge management and continuous improvement

Most IS research about ERP implementation stops short at system start-up and seldom addresses post-implementation issues. However, ERP implementation is a continuous improvement effort and continued efforts after system start-up will influence the ultimate success of an ERP implemented system. We defined a four-phase ERP refinement model that incorporated knowledge management (KM) into each major implementation phase. This knowledge-enhanced ERP implementation model adds insights when used to investigate ERP success. It also provides practitioners with a guideline for incorporation of KM into their ERP strategy to improve success rates of ERP systems.     

The ERP Revolution: Surviving vs. Thriving

This paper presents preliminary findings from a research project that examined how firms are generating business value from their investments in enterprise resource planning (ERP) systems. The research, which was done jointly with Benchmarking Partners, describes the stages of ERP implementation, the obstacles that firms encountered in generating benefits from the systems, and some critical success factors for getting business value from the implementation of an ERP system in business.     

ERP systems adoption: An exploratory study of the organizational factors and impacts of ERP success

We examined the relationships between the success of ERP system adoption, extent of business process improvement (BPI), and organizational performance and investigated the associations between the outcomes of these initiatives and such organizational factors as strategic intent, senior management support, and the status of the IT function within a company. A correlation analysis of 96 firms was made to test our hypothesis that the strategic intent to use ERP was closely related to the success of BPI, ERP, and organizational performance. The results also demonstrated that CEO-IT distance may have little direct bearing on the outcomes of ERP and BPI initiatives. A closer CEO-IT reporting relationship, however, was found to be associated with higher levels of senior management support for both types of enterprise projects. This empirical evidence reinforced the long-held assumption that organization-level benefits, BPI, and ERP success were closely related; and that these relationships were subject to the influence of the organizational variables.     

Impact analysis of ERP post-implementation modifications: Design,tool support and evaluation

ERP systems evolve in the post-implementation phase because of changing business requirements. Post-implementation changes are likely to decrease the quality of ERP systems and of the data that they use, which negatively impacts organisational performance. We propose a framework for impact analysis of ERP post-implementation modifications. Our framework allows mapping dependencies among ERP system components and, based on these dependencies, automatically assessing the impact of a proposed change on both the design-time structure and run-time landscape of the system through a novel set of impact metrics. The framework also provides semi-automatic support to safely terminating the running process instances affected by change. The framework is evaluated with expert users in two pseudo-real ERP system implementations.     

A multi-method, holistic strategy for researching critical success factors in IT projects

In the field of information systems (IS) there is an observable trend towards the use of multi-method research. Using different research methods allows for the cross-validation of data obtained via multiple approaches, with the potential to increase the robustness of research results. Such a multi-method approach is applicable to a comprehensive research agenda on critical success factors, an agenda that needs to take into account not only the identification, but also the analysis and management of critical success factors. The goal of this article is to contribute new knowledge on how to carry out research on critical success factors in IS projects using a multi-method approach. For this purpose, two research projects are presented, each a variation of the research design customized to particular circumstances. First, there is an outline of the research approach taken for a critical success factor research project in the field of portal implementation, with discussion of the strengths and weaknesses of the project. Taking into consideration these experiences, the research approach of a similar critical success factor research project in the field of offshore software development is then described. Finally, recommendations for using the multi-method research approach in critical success factor research are presented.     

The effects of organizational citizenship behaviors on ERP system success

Although the research on organizational citizenship behaviors (OCBs) has increased dramatically in diverse fields during the past decade, little is known about the OCBs in the information systems area. The purpose of this study was to explore the effect of OCBs on enterprise resource planning (ERP) system success. In order to perform empirical analyses, measurements on the OCBs constructs based on the five dimensions of [Organ, D.W. (1988). Organizational citizenship behavior: The “Good Soldier” syndrome. MA: Lexington Books]: altruism, conscientiousness, courtesy, civic virtue, and sportsmanship were developed, and the research model including the relationships between the OCBs constructs and ERP system success variables of information quality, work efficiency, and intention of IT innovation was proposed and empirically analyzed using structural equation modeling.     

协同软件与ERP综述

该文在分析协同软件和ERP的特点和关键技术的基础上，介绍并讨论了协同软件和ERP的之间许多方面的不同。提出了企业信息化存在的关键问题，预测了以后的研究方向。     

Strategic alignment of ERP implementation stages: An empirical investigation

We applied the notion of strategic alignment to ERP system implementation and used a balanced scorecard approach to analyze business performance. The PLS analysis showed a positive association between realized strategic alignment, shorter and more cost efficient ERP projects, faster reaction times to business events, and the benefits of ERP systems. While each stage of ERP implementation has its inherent intricacies, we concluded that there was a substantial interdependency between the stages of ERP implementation and the success factors in one stage influencing the success of another.     

Managing readiness-relevant activities for the organizational dimension of ERP implementation

An organization requires performing readiness-relevant activities to ensure successful implementation of an enterprise resource planning (ERP) system. This paper develops a novel approach to managing these interrelated activities to get ready for implementing an ERP system. The approach enables an organization to evaluate its ERP implementation readiness by assessing the degree to which it can achieve the interrelated readiness relevant activities using fuzzy cognitive maps. Based on the interrelationship degrees among the activities, the approach clusters the activities into manageable groups and prioritizes them. To help work out a readiness improvement plan, scenario analysis is conducted.     

The impact of EDI implementation commitment and implementation success on competitive advantage and firm performance

Abstract. Electronic Data Interchange Systems (EDI) are increasingly being used by business firms to improve operations and customer service. One of the major motivations for business organizations using EDI is to gain a strategic advantage in the marketplace. Although EDI has been implemented by many organizations, unfortunately not all have gained the same level of expected advantage or envisioned benefits.
In this study we focus on the impact of EDI implementation commitment and implementation success on competitive advantage and firm performance. We study two categories of companies: companies that initiate the development of EDI and are known as hub companies and those that are their non-hub counterparts. Findings indicate that non-hub firms may not reap the same level of expected benefits resulting from EDI technology adoption and implementation as hub firms.     

Post-implementation practices of ERP systems and their relationship to financial performance

Using econometric analysis, this study provides empirical evidence to support a cause-and-effect relationship of managerial actions to financial performance in a post-ERP implementation stage. Senior information systems managers reveal the state of affairs, providing a snapshot reference during that time period. Financial figures were collected for firms who were matched to our survey instrument. Regression analysis establishes that increased technological competence affects net sales, relationships with outside experts affect earnings, return-on-assets and return-on-investment, top management support affects net sales and net income, long-range planning negatively affects earnings, and the sharing of information between departments affects net income, return-on-assets and return-on-investments.     

ERP战略对传统企业财务管理的挑战

ERP作为一种利用信息技术全面整合企业内外资源的管理模式,日益受到生产企业的关注,而财务信息系统一直是各个企业实施ERP时关注的重点。随着企业外部经营环境和内部管理模式的不断变化,对财务管理功能提出了更高的要求,出现了新的应用。该文分析了ERP系统的管理思想,比较了ERP软件与一般财务管理软件的异同,并着重探讨了ERP中财务管理系统的功能,就传统企业财务管理应对ERP战略的挑战提出了几点建议。     

Identification and classification of ERP critical failure factors in Iranian industries

Implementation of Enterprise Resource Planning systems (ERPs) is a complex and costly process, which usually results in serious failures. The majority of previous studies and research projects have been conducted in identifying ERP Critical Success Factors (CSFs) rather than Critical Failure Factors (CFFs). On the other hand, most studies have been devoted to developed countries, while in developing countries, many companies have moved towards using such systems. The majority of IT/IS management standards and guidelines have been developed by technologically-leading countries. But developing countries, which mostly confront with especial challenges, have a different condition from the implicit assumptions of leading countries. Iran is one of these countries that many of its ERP implementation projects led to failure. There is no comprehensive study that identifies ERP CFFs in Iranian industries. The main purpose of this study is to identify such factors and classify them to help other industries, consultants and implementers to prevent failures in the implementation of ERP projects. So, at first, with the semi structured interviews and literature reviews, 47 failure factors were identified. After that a questionnaire developed and sent to ERP project team members in Iranian industries that failed in their ERP projects. Robust Exploratory Factor Analysis (EFA) has been used for data analysis, which finally classified critical failure factors in seven groups named as vendor and consultant, human resources, managerial, project management, processes, organizational and technical. The results of this study have provided a very useful reference for scholars and managers to identify the relevant issues of ERP projects failure in developing countries.     

Project preparedness and the emergence of implementation problems in ERP projects

The problems that organizations face in implementing an enterprise-wide ERP project are linked to their level of understanding of what is involved in such an endeavor and how it influences their initial preparations. We sought to demonstrate empirically the causal relationship between the organization's preparedness and the emergence of implementation problems. We examined four case studies to extract insight into the criticality of certain factors and the type of problems created when no moderating measures were taken by project managers. Consequently, we developed a predictor-outcome model mapping a lack of preparedness with implementation problems.