Benefits and Value of Investments in Information Systems

Author(s):  
Paula Serdeira Azevedo ◽  
Carlos Azevedo ◽  
Mário Romão

Organisations constantly have to address the problem of identifying tangible and intangible benefits that can be achieved in result of investments made in Information Systems/Information Technology (IS/IT). This paper has the objective of approaching the problem in the perspective and context of Enterprise Resource Planning (ERP) systems in the Hospitality Industry. It focuses on implementation project strategies, namely in the particular and relevant aspects of their return on investment as well as benefits expected and delivered. When an organisation is confronted with the question of knowing if a certain investment in IS/IT may obtain a considered positive financial revenue, and if that investment means valuable benefits for the business, the answer is often far from being conclusive. Projects are often implemented on-time, on-budget and are technically appropriate, nevertheless the expected benefits are not achieved. This paper seeks to answer these questions in the context of ERP systems, in particular in the sector of hospitality industry, through a case study developed in Portugal. The investigation was developed on a group of hotel units, held by a Portuguese company, for which ERP meant an opportunity to harmonize and improve business processes.

2013 ◽  
pp. 665-674
Author(s):  
Paula Serdeira Azevedo ◽  
Mário Romão ◽  
Efigénio Rebelo

Enterprise Resource Planning (ERP) systems have emerged as solutions oriented to manage organizations’ resources in an integrated way. They allow the automation of department activities, make information available to users at the right time, and support more accurately their decision-making needs. However, although the implementation of these systems has brought considerable benefits to users, they do not cover all processes from all industries. Many organizations have recognized this limitation and consequently felt the need to implement specific solutions to their industry, sector, or line of business. From the collected case study business drivers and objectives, the authors analyze the advantages and limitations of ERP Systems in the hospitality industry in order to understand how this industry uses ERP Systems and solves the challenge of integrating information spread through several heterogeneous information systems.


2009 ◽  
Vol 24 (3) ◽  
pp. 251-268 ◽  
Author(s):  
Sylvestre Uwizeyemungu ◽  
Louis Raymond

Previous research has already established that compared to other types of investments, information technology (IT) investments are insufficiently or not at all evaluated. This can be partly explained by the lack of adequate IT evaluation methods and tools. In the case of enterprise resource planning (ERP) systems whose effects on organizational processes and performance are intrinsically profound and wide-ranging compared to those of traditional IT limited to some spheres of organization, evaluation activities may be an issue of great concern. This study thus aims to propose and test an alternative evaluation method adaptable to the organizational context, making it possible to measure the contribution of an ERP system to organizational performance in all its aspects. Combining a process-based model and a scorecard model, the proposed method was first designed from a review of information systems evaluation literature. It has then been validated and refined through a multi-case study of manufacturing firms: an in-depth pilot case study was conducted, and thereafter the study was replicated on two other cases. Results show that the method proposed here enables organizations to determine the extent to which the firm's operational and overall performance has been impacted by the adoption and use of ERP systems, through the automational, informational, and transformational effects of ERP on their business processes. From a practical point of view, three contributions must be mentioned: the proposed method allows for a strong contextualization of its application, it is action-oriented, and it allows comparison across organizations even though organizational contexts may totally differ.


Author(s):  
Thomas Schmidt ◽  
Stephan Hofmann

Enterprise Resource Planning (ERP) systems constitute a prerequisite for successfully managing business in many industries, including the logistics industry. Since today's standard ERP systems determine a company's business down to the smallest detail, effectively aligning a company's strategy and business processes with software-given processes is imperative for maintaining a competitive advantage. This calls for defining an Enterprise Conceptual Model based on a sound derivation of imminent processes, either directed towards current, reference or ideal processes. The case study exemplifies that an Enterprise Conceptual Model has actually helped to translate strategic goals and operational needs into business processes and, thereby, align imminent and software-given processes. The application of current, reference and ideal process models for definition imminent processes is shown. Insight is drawn from a one-case case study of a medium-sized Namibian freight forwarder and logistics service provider.


Author(s):  
Paula Serdeira Azevedo ◽  
Mário Romão ◽  
Efigénio Rebelo

Enterprise Resource Planning (ERP) systems have emerged as solutions oriented to manage organizations’ resources in an integrated way. They allow the automation of department activities, make information available to users at the right time, and support more accurately their decision-making needs. However, although the implementation of these systems has brought considerable benefits to users, they do not cover all processes from all industries. Many organizations have recognized this limitation and consequently felt the need to implement specific solutions to their industry, sector, or line of business. From the collected case study business drivers and objectives, the authors analyze the advantages and limitations of ERP Systems in the hospitality industry in order to understand how this industry uses ERP Systems and solves the challenge of integrating information spread through several heterogeneous information systems.


2021 ◽  
Vol 11 (15) ◽  
pp. 6792
Author(s):  
Alessio Faccia ◽  
Pythagoras Petratos

Accounting information systems (AISs), the core module of any enterprise resource planning (ERP) system, are usually designed as centralised systems. Nowadays, the continuous development and applications of blockchain, or more broadly—distributed ledger technology (DLT), can change the architecture, overcome and improve some limitations of centralised systems, most notably security and privacy. An increasing number of authors are suggesting the application of blockchain technologies in management, accounting and ERPs. This paper aims to examine the emerging literature on this field, and an immediate result is that blockchain applications can have significant benefits. The paper’s innovative contribution and considerable objective are to examine if blockchain can be successfully integrated with AIS and ERPs. We find that blockchain can facilitate integration at multiple levels and better serve various purposes as auditing compliance. To demonstrate that, we analyse e-procurement systems and operations using case study research methodology. The findings suggest that DLT, decentralised finance (DeFI), and financial technology (FinTech) applications can facilitate integrating AISs and ERP systems and yield significant benefits for efficiency, productivity and security.


2004 ◽  
Vol 1 (1) ◽  
pp. 63-72 ◽  
Author(s):  
Daniel E. O'Leary

This paper uses a database, derived from a data repository, in order to do an analysis of enterprise resource planning (ERP) system benefits. ERP benefits are important for a number of reasons, including establishing a match between what ERP systems benefits are—as compared to ERP expectations—setting a benchmark for other firms, and measuring those benefits. ERP benefits also are central to the business case for deciding whether a firm will invest in an ERP system. It is found that some benefits vary across industry, while others seem to be important to firms independent of industry. In particular, tangible benefits are largely industry-independent, while intangible benefits vary across industry. In addition, when compared to an earlier study by Deloitte Consulting, the results are statistically consistent with their findings, but find substantial additional intangible benefits.


2002 ◽  
Vol 16 (s-1) ◽  
pp. 99-113 ◽  
Author(s):  
Sally Wright ◽  
Arnold M. Wright

Enterprise Resource Planning (ERP) systems inherently present unique risks due to tightly linked interdependencies of business processes, relational databases, and process reengineering. Knowledge of such risks is important in planning and conducting assurance engagements of the reliability of these complex computer systems. Yet, there is little empirical evidence on this issue. To examine this topic, a semi-structured interview study was conducted with 30 experienced information systems auditors (from 3 of the Big 5 firms) who specialize in assessing risks for ERP systems. This approach allowed us to obtain detailed information about participants' views and client experiences. The results indicate that the implementation process of ERP systems has an important impact on system reliability. Further, interviewees identified a number of common implementation problems (e.g., improperly trained personnel and inadequate process reengineering efforts) that result in heightened risks. Interviewees also reported that ongoing risks differ across applications and across vendor packages. Finally, in providing assurance on ERP systems participants overwhelmingly indicate a focus on testing the process rather than system output.


Enterprise Resource Planning (ERP) systems are implemented in companies to improve their business processes. An ERP system entails extensive functional and technological aspects during its implementation. Teaching ERP systems for computer science students implies addressing these two aspects: ERP functionality and technological features. It is a challenge for teachers to design practical experimentation that students can perform in the teaching environment, due to the prerequisite of a deep understanding of the business processes, business user requirements, and the technological complexity of ERP systems. In order to improve student skills in ERP systems, we encourage active learning among students. In this chapter, we present a methodology using open and closed practicals to learn about both technical and functional aspects of ERP systems. Using these practicals allows us to prepare and organize this teaching/ learning process.


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