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Efficiency analysis of ERP packages—A customization perspective
Affiliation:1. Department of Computer Applications, Thiagarajar College of Engineering, Madurai, India;2. Indian Institute of Management (IIM) Kashipur, Uttarakhand, India;1. CIM Research Laboratory, Computer and Automation Research Institute, Hungarian Academy of Sciences, Kende u. 13-17, Budapest 1111, Hungary;2. Department of Manufacturing Science and Engineering, Budapest University of Tecnology and Economics, Hungary;3. Fraunhofer Institute for Manufacturing Engineering and Automation (Fraunhofer IPA) Department Ultraclean Technology and Micromanufacturing, Nobelstrasse 12, D-70569 Stuttgart, Germany;1. INSA de Strasbourg, LGeCo, 24, Bld de la Victoire, 67084 Strasbourg Cedex, France;2. INSA de Strasbourg, ICube, 24, Bld de la Victoire, 67084 Strasbourg Cedex, France;3. Université de Lyon, INSA-Lyon, DISP EA4570, 69621 Villeurbanne, France;1. Department of Industrial and Systems Engineering, Florida International University, Miami, USA;2. Department of Information Management, National Changhua University of Education, Taiwan, ROC;1. Department of BioBusiness Management, National Chiayi University, No. 580, Sinmin Road, Chiayi 600, Taiwan, ROC;2. Department of Business Administration, National Chiayi University, No. 580, Sinmin Road, Chiayi 600, Taiwan, ROC
Abstract:Enterprise Resource Planning (ERP) packages developed by ERP vendors are designed not only to standardize the existing business processes of the implementing organization, but also to bring in some of the best practices of the industry. There are many past studies on the assessment of the efficiency of standard ERP projects; however, to date no research has been conducted to assess the efficiency of ERP packages from the point of view of customization. Assessing the efficiency of customized ERP packages is vital for benchmarking best customization practices. In this study we examine the efficiency of customized ERP packages using Data Envelopment Analysis (DEA). We also examine the relationship between the degree of customization of ERP packages and their efficiency. Data was collected from an IT vendor who had deployed ERP package in 12 educational institutions. The results suggest that customization adversely affects the efficiency of ERP packages. We also discuss the implications of the results for research and practice.
Keywords:Customization  Data Envelopment Analysis (DEA)  Efficiency  Enterprise Resource Planning (ERP)  Software productivity
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