Measuring Utilization of ERP Systems Usage in SMEs

2013 ◽  
pp. 1677-1689
Author(s):  
Hedman Jonas ◽  
Johansson Björn

Since deployment of Enterprise Systems (ES) such as Enterprise Resource Planning systems (ERPs) within enterprises, both Large Enterprises (LEs) as well as Small and Medium-sized Enterprises (SMEs) have increased and continue to increase, making it increasingly desirable to measure the degree of utilization of ERP systems in enterprises. One reason for this interest is that no benefits are realized if the systems are not used; since ERPs are massive investments, they need to show benefits, or at least be able to measure the benefits. However, to be able to do so, there is a need to explain ERP systems utilization and the factors that influence ERP utilization. This chapter provides an explanation of factors influencing ERP systems utilization by testing a research model building on four dimensions: volume, breadth, diversity, and depth. The contributions of the research are: First, it provides support for the notion of diffusion found in the theory of network externalities where a critical mass is necessary to achieve benefits. This can be used to better understand failures in ERP projects. Second, the use of volume, breadth and depth provide insights for use as a construct and the need to treat it more rigorously. Third, the study contributes to our understanding of the many aspects of use of IT, such as ERPs, and potentially contributes to value and firm performance from ERP utilization.

Author(s):  
Hedman Jonas ◽  
Johansson Björn

Since deployment of Enterprise Systems (ES) such as Enterprise Resource Planning systems (ERPs) within enterprises, both Large Enterprises (LEs) as well as Small and Medium-sized Enterprises (SMEs) have increased and continue to increase, making it increasingly desirable to measure the degree of utilization of ERP systems in enterprises. One reason for this interest is that no benefits are realized if the systems are not used; since ERPs are massive investments, they need to show benefits, or at least be able to measure the benefits. However, to be able to do so, there is a need to explain ERP systems utilization and the factors that influence ERP utilization. This chapter provides an explanation of factors influencing ERP systems utilization by testing a research model building on four dimensions: volume, breadth, diversity, and depth. The contributions of the research are: First, it provides support for the notion of diffusion found in the theory of network externalities where a critical mass is necessary to achieve benefits. This can be used to better understand failures in ERP projects. Second, the use of volume, breadth and depth provide insights for use as a construct and the need to treat it more rigorously. Third, the study contributes to our understanding of the many aspects of use of IT, such as ERPs, and potentially contributes to value and firm performance from ERP utilization.


Author(s):  
Hedman Jonas ◽  
Johansson Björn

Since deployment of Enterprise Systems (ES) such as Enterprise Resource Planning systems (ERPs) within enterprises, both Large Enterprises (LEs) as well as Small and Medium-sized Enterprises (SMEs) have increased and continue to increase, making it increasingly desirable to measure the degree of utilization of ERP systems in enterprises. One reason for this interest is that no benefits are realized if the systems are not used; since ERPs are massive investments, they need to show benefits, or at least be able to measure the benefits. However, to be able to do so, there is a need to explain ERP systems utilization and the factors that influence ERP utilization. This chapter provides an explanation of factors influencing ERP systems utilization by testing a research model building on four dimensions: volume, breadth, diversity, and depth. The contributions of the research are: First, it provides support for the notion of diffusion found in the theory of network externalities where a critical mass is necessary to achieve benefits. This can be used to better understand failures in ERP projects. Second, the use of volume, breadth and depth provide insights for use as a construct and the need to treat it more rigorously. Third, the study contributes to our understanding of the many aspects of use of IT, such as ERPs, and potentially contributes to value and firm performance from ERP utilization.


2002 ◽  
Vol 16 (s-1) ◽  
pp. 115-126 ◽  
Author(s):  
Daniel E. O'Leary

Asking experts their opinion is an important methodology in those settings where the major issues have not been previously addressed, often early in the topic's research life cycle. Heterogeneous expert opinion (HEO) refers to gathering the opinion of experts that derive from a number of categories, e.g., partner, manager, and senior, or whether they are accountants or computer scientists. They are heterogeneous in that they are recognized as having different levels and/or types of expertise. Research of enterprise resource planning (ERP) systems must carefully examine expert opinion and determine when using HEO is appropriate and when it should be stratified. In addition, where possible, previous research needs to supplement or be compared to the HEO to determine similarities and differences with other groups.


2010 ◽  
pp. 105-114
Author(s):  
Alok Mishra

In the age of globalization, organizations all over the world are giving more significance to strategy and planning to get an edge in the competition. This chapter discusses the Enterprise Resurce Planning (ERP) systems effects and strategic perspectives in organizations. These are significant how information technology and ERP together facilitate in aligning the business in such a way so that it should lead to excellent productivity. It further explores in what ways effects of ERP system in organizations can provide sustained competitive advantage.


2011 ◽  
pp. 1318-1326
Author(s):  
Alok Mishra

In the age of globalization, organizations all over the world are giving more significance to strategy and planning to get an edge in the competition. This chapter discusses the Enterprise Resurce Planning (ERP) systems effects and strategic perspectives in organizations. These are significant how information technology and ERP together facilitate in aligning the business in such a way so that it should lead to excellent productivity. It further explores in what ways effects of ERP system in organizations can provide sustained competitive advantage.


Author(s):  
Lars Frank

ERP (Enterprise Resource Planning) systems consist normally of ERP modules managing sale, production and procurement in private businesses. ERP systems may also have modules for special lines of business or modules for the different sectors of E-Government. However, the ERP systems of today use a common database and therefore, it is normally only possible to use modules supported by the ERP supplier. This limits the possibilities for special lines of business like the different sectors of E-Government. It is normally not possible to use the traditional ACID (Atomicity, Consistency, Isolation and Durability) properties across heterogeneous ERP modules and therefore, it is not possible to integrate such modules without inconsistency and anomaly problems. That is, the users cannot trust the data they are reading and even worse they can undermine the validity of the databases if they update the databases by using such invalid information. However, it is possible to use so called relaxed ACID properties. That is, it should, from a user point of view, look as if the traditional ACID properties were implemented, and therefore, the users can trust the data they are reading and cannot do anything wrong by using this data.


Author(s):  
Joseph Bradley

Enterprise Resource Planning systems have proven difficult and costly to implement. Organizations must consider the risks and rewards of embarking on complex and time consuming implementation projects. This chapter explores why firms adopt ERP systems, identifies the benefits firms seek, discusses the various risks firms face as they adopt these systems, and suggests ways firms can manage these risks.


Author(s):  
Ben Clegg ◽  
Yi Wan

This chapter critiques trends in enterprise resource planning (ERP) in respect to contemporary multi-organizational enterprise strategy in order to identify under-researched areas. It is based on the premise that multi-organization strategies and information systems span more than one legal company entity and are becoming increasingly important as digital Internet based systems become more prolific, and outsourcing and collaboration between companies becomes more widespread. This chapter presents a critique of literature covering theoretical, methodological and relational aspects of enterprise resource planning systems and multi-organizational enterprise strategy. The critique gives a unique perspective and highlights four major gaps in current research and points towards a trend which is referred to in this chapter as ‘enterprization.' This research could help organizations make more effective use of their information and operations systems strategies when used across more than one company. It should interest researchers, teachers, IS developers and managers.


Author(s):  
Alok Mishra

In the age of globalization, organizations all over the world are giving more significance to strategy and planning to get an edge in the competition. This chapter discusses the Enterprise Resurce Planning (ERP) systems effects and strategic perspectives in organizations. These are significant how information technology and ERP together facilitate in aligning the business in such a way so that it should lead to excellent productivity. It further explores in what ways effects of ERP system in organizations can provide sustained competitive advantage.


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