Implementation Critical Success Factors (CSFs) for ERP: Do they contribute to implementation success and post-implementation performance?

Extent: 55 p.Frequent commentaries in the literature have stated that certain critical success factors (CSFs) have to be accomplished in an organisation for an Enterprise Resource Planning (ERP) system project to be successful. In this study we argue and demonstrate empirically that success in implementing an ERP system and in gaining performance improvement should be conceptualised as two separate dependent variables. The distinction is made because the former aspect is based upon project delivery outcomes, while the latter assesses post-ERP project performance. We question whether some factors labelled as 'critical' success factors for ERP projects are in practice actually critical for achieving success in implementation and improving output performance. To examine this we report an empirical study that has investigated whether four major CSFs are in practice critical for achieving organisational performance improvements, and the role that successful implementation may play in influencing the relationship between CSFs and improvements in organisational performance. A conceptual model was devised and then analysed using structural equation modelling, based on data collected from 217 organisations. We found that some CSFs were not critical to achieve success in ERP implementation but were critical to help an organisational achieve performance improvement from an ERP system. Additionally, we also found that achieving successful ERP system implementation mediates the degree to which a CSF affects output performance improvement. The managerial and research implications of these findings are discussed and the limitations of the study noted.Jiwat Ram, David Corkindale, Ming-Lu W

Drivers of ERP Systems´ Business Value

ERP system implementations have evolved so rapidly that now they represent a must-have within industries. ERP systems are viewed as the cost of doing business. Yet, the research that adopted the resource-based view on the business value of ERP systems concludes that companies may gain competitive advantage when they successfully manage their ERP projects, when they carefully reengineer the organization and when they use the system in line with the organizational strategies. This thesis contributes to the literature on ERP business value by examining key drivers of ERP business value in organizations. The first research paper investigates how ERP systems with different degrees of system functionality are correlated with the development of the business performance after the completion of the ERP projects. The companies with a better perceived system functionality obtained efficiency benefits in the first two years of post-implementation. However, in the third year there is no significant difference in efficiency benefits between successfully and less successfully managed ERP projects. The second research paper examines what business process changes occur in companies implementing ERP for different motivations and how these changes impact the business performance. The findings show that companies reported process changes mainly in terms of workflow changes. In addition, the companies having a business-led motivation focused more on observing average costs of each increase in the input unit. Companies having a technological-led motivation focused more on the benefits coming from the fit of the system with the organizational processes. The third research paper considers the role of alignment between ERP and business strategies for the realization of business value from ERP use. These findings show that strategic alignment and business process changes are significantly correlated with the perceived benefits of ERP at three levels: internal efficiency, customers and financial. Overall, by combining quantitative and qualitative research methods, this thesis puts forward a model that illustrates how successfully managed ERP projects, aligned with the business strategy, have automate and informate effects on processes that ultimately improve the customer service and reduce the companies’ costs

Impact of the Quality of ERP Implementations on Business Value

Abstract: This study compares the financial performance trend of successful and less successful ERP implementers over three years following the implementation. The findings indicate no significant difference in the change in ROA and ROI of the two groups of adopters. Successful ERP adopters however have statistically significant higher efficiency benefits in terms of Asset Turnover and Capital Turnover than the less successful ERP adopters in the first two years after implementation. The findings of this paper reveal no significant contribution of the implementation effort to the success of ERP implementations

Dashboards adoption in the business controller's decision making process

There has been discussion whether corporate decision-making can be helped by decision support systems regarding qualitative aspects of decision making (e.g. trouble shooting)(Löf and Möller, 2003). Intelligent decision support systems have been developed to help business controllers to perform their business analysis. However, few papers investigated the user’s point of view regarding such systems. How do decision-makers perceive the use of decision support systems, in general, and dashboards in particular? Are dashboards useful tools for business controllers? Based on the technology acceptance model and on the positive mood theory, we suggest a series of antecedent factors that influence the perceived usefulness and perceived ease of use of dashboards. A survey is used to collect data regarding the measurement constructs. The managerial implications of this paper consist in showing the degree of penetration of dashboards in the decision making in organizations and some of the factors that explain this respective penetration rate

Dashboards in performance management: The foundations and research opportunities for their effective use

When designed effectively dashboards are expected to reduce information overload and improve performance management. Hence, interest in dashboards has increased recently,which is also evident from the proliferation of dashboard solution providers in the market. Despite dashboards popularity, little is known about the extent of their effectiveness in organizations. Dashboards draw from multiple disciplines but ultimately use visualization to communicate important information to stakeholders. Thus,a better understanding of visualization can improve the design and use of dashboards. This paper reviews the foundations and roles of dashboards in performance management and proposes a framework for future research, which can enhance dashboard design and perceived usefulness depending on the fit between the features of the dashboard and the characteristics of the users