Article2006

ERP implementation efforts at three firms

49 citations0/0 files storedInternational Journal of Operations & Production Management

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ERP Systems Implementation and Impact Information Technology Governance and Strategy Corporate Governance and Management

Abstract

Purpose To compare actual company ERP implementation practices with the prescriptions found in the strategic information systems planning (SISP) and IT‐enabled change management literature. Design/methodology/approach The case study method is used to study ERP specification, selection, and implementation efforts at three companies. The main sources of data were structured face‐to‐face interviews with key personnel, and supporting internal documents provided by the study companies. Findings All three companies did an adequate job linking the ERP decision to higher‐level IS and supply chain strategies, although mid‐level managers dominated the strategic debate. However, two of the companies fell far short in the specification and selection processes, particularly with regard to achieving broad participation and managing stakeholder commitment. As such, these two companies missed an opportunity to think independently about their long‐term information requirements and capabilities, proactively manage the debate with the vendors, and obtain early buy‐in from key users. Research limitations/implications The case study method limits the sample size, but allows more depth than would be possible using survey instruments or secondary sources. In time, follow‐up research will examine the ultimate success of the companies' efforts. Practical implications An important insight is the importance of involving key users in the specification and selection process, especially when the new system promised radical change to current work methods. Originality/value This research provides a concise comparison of the ERP efforts across three companies, and pulls together the OM‐based ERP research, SISP, and IT‐enabled change literatures. It is suitable for practitioners and students, as well as researchers.

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References

1997The balanced scorecard: Translating strategy into action 1996Paradox Lost? Firm-Level Evidence on the Returns to Information Systems Spending 1998Building operations management theory through case and field research 2002Enterprise resource planning: Implementation procedures and critical success factors 1999Critical Issues Affecting an ERP Implementation 1998Beyond the productivity paradox 1992The Relationship Between Investment in Information Technology and Firm Performance: A Study of the Valve Manufacturing Sector 2000Mission Critical: Realizing the Promise of Enterprise Systems

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