The Impact of Enterprise Resource Planning Systems on Organizational Effectiveness

Author(s):  
Jonas Hedman ◽  
Andreas Borell

Enterprise resource planning (ERP) systems have an organizational impact and are in most cases implemented to improve organizational effectiveness. Shortcomings in current research make it difficult to conclude how an organization may be affected. This paper presents an artifact evaluation of the functionality and perceived benefits of ERP systems. The evaluation is based on the competing values model. The evaluation shows that ERP systems support effectiveness criteria (such as control and productivity) related to internal process and rational goal models. The evaluation also points out weaknesses in ERP systems and especially in areas related to human relations and open systems models. The result of the evaluation is used to discuss the impact of ERP systems on organizations and is presented as a series of hypotheses.

2011 ◽  
pp. 125-142 ◽  
Author(s):  
Jonas Hedman ◽  
Andrea Borell

Enterprise Resource Planning (ERP) systems have an organizational impact and are in most cases implemented to improve organizational effectiveness. Shortcomings in current research make it difficult to conclude how an organization may be affected. This paper presents an artifact evaluation of the functionality and perceived benefits of ERP systems. The evaluation is based on the Competing Values Model. The evaluation shows that ERP systems support effectiveness criteria (such as control and productivity), related to internal process and rational goal models. The evaluation also points out weaknesses in ERP systems and especially in areas related to human relations and open systems models. The result of the evaluation is used to discuss the impact of ERP systems on organizations and is presented as a series of hypotheses.


Author(s):  
Jonas Hedman ◽  
Andreas Borell

Enterprise Resource Planning (ERP) systems are in most cases implemented to improve organizational effectiveness. Current research makes it difficult to conclude how organizations may be affected by implementing ERP systems. This chapter addresses this issue by presenting an artifact evaluation of ERP systems. The evaluation is based on the Competing Values Model (Quinn & Rohrbaugh, 1981; Rohrbaugh, 1981). The evaluation shows that ERP systems support effectiveness criteria, related to internal and rational goals of organizations. The evaluation also points out weaknesses in ERP systems, especially in areas related to human resource management and organizational flexibility. The result of the evaluation is used to discuss the impact of ERP systems on organizations and is presented as a series of hypotheses.


Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiaojun Yao ◽  
Masoumeh Azma

PurposeThis study aims to investigate the impact of skills and knowledge of employees, economic situations of the company, current IT infrastructure, payment fashion, cloud availability, and cloud privacy and security on the productivity of the human resources in the COVID-19 era.Design/methodology/approachOver the past few years, the advent of cloud-assisted technologies has dramatically advanced the Information Technology (IT)-based industries by providing everything as a service. Cloud computing is recognized as a growing technology among companies around the world. One of the most critical cloud applications is deploying systems and organizational resources, especially systems whose deployment costs are high. Manpower is one of the basic and vital resources of the organization, and organizations need an efficient workforce to achieve their goals. But, in the COVID-19 era, human resources' productivity can be reduced due to stress, high labor force, reduced organizational performance and profits, unfavorable organizational conditions, inability to manage and lack of training. Therefore, this study tries to investigate the productivity of human resources in the COVID-19 era. Data were collected from the medium-sized companies through a questionnaire. Distributed questionnaires were conducted on the Likert scale. The model is assessed using the structural equation modeling technique to examine its reliability and validity. The study is a library method and literature review. A case study was conducted through a questionnaire and statistical analysis by SPSS 25 and SMART-PLS.FindingsBased on the findings, the skills and knowledge of employees, the economic situations of the company, payment fashion, cloud availability and the current IT infrastructures of the company have a positive impact on human resource efficiency in the COVID-19 era. But cloud privacy and security have a negative effect on the productivity of human resources. The findings can be the basis for companies and organizations in the COVID-19 era.Research limitations/implicationsThis study has some restrictions that need to be considered in evaluating the obtained results. First, due to the prevalence of Coronavirus, access to information from the companies under study was limited. Second, this research may have overlooked other variables that affect human resource productivity in the COVID-19 era. Prospective researchers can examine the impact of Customer Relationship Management (CRM) and Supply Chain Management (SCM) on the human resource's productivity in the COVID-19 era.Practical implicationsThe results of this research are applicable for all companies, their departments and human resources in the COVID-19 era.Originality/valueIn this paper, human resources' productivity in the COVID-19 era is pointed out. The presented new model provides a complete framework for investigating cloud-based enterprise resource planning systems affect the productivity of human resources in the COVID-19 era.


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):  
Chun Meng Tang ◽  
Govindan Marthandan

When business managers are considering whether to invest in an enterprise resource planning (ERP) system, they ask the question: “What are the returns on investment?” When the ERP system is implemented and in operation, business managers ask another question: “How successful is the system?” To answer these questions, clues can be found by examining organizational effectiveness improvements as a result of ERP system implementation. This paper suggests that being able to identify the dimensions of organizational effectiveness is enabled by ERP systems. Together with positive organizational effectiveness improvements, the business value of ERP systems can be demonstrated. To provide the evidence needed to support the notion, a confirmatory factor analysis (CFA) was conducted. Analyses reveal that the construct of IS-enabled organizational effectiveness can be modeled, at a higher-order abstraction level, as a third-order construct manifested by three second-order constructs and ten first-order constructs.


Author(s):  
Payam Hanafizadeh ◽  
Roya Gholami ◽  
Shabnam Dadbin ◽  
Nicholas Standage

The Implementation of Enterprise Resource Planning (ERP) systems require huge investments while ineffective implementations of such projects are commonly observed. A considerable number of these projects have been reported to fail or take longer than it was initially planned, while previous studies show that the aim of rapid implementation of such projects has not been successful and the failure of the fundamental goals in these projects have imposed huge amounts of costs on investors. Some of the major consequences are the reduction in demand for such products and the introduction of further skepticism to the managers and investors of ERP systems. In this regard, it is important to understand the factors determining success or failure of ERP implementation. The aim of this paper is to study the critical success factors (CSFs) in implementing ERP systems and to develop a conceptual model which can serve as a basis for ERP project managers. These critical success factors that are called “core critical success factors” are extracted from 62 published papers using the content analysis and the entropy method. The proposed conceptual model has been verified in the context of five multinational companies.


Author(s):  
Kelvin Kabeti Omieno

The enterprise resource planning (ERP) system is a complex and comprehensive software that integrates various enterprise functions and resources. Although ERP systems have been depicted as a solution in many organizations, there are many negative reports on ERP success, benefits, and effect on user performance. Previous research noted that there is a lack of knowledge and awareness of ERP systems and their overall value to ERP organizations. ERP systems have been widely studied during the past decade; yet they often fail to deliver the intended benefits originally expected. One notable reason for their failures is the lack of understanding in user requirements. There are many studies conducted to propose software quality models with their quality characteristics. However, there is currently no dedicated software quality model that can describe usability maturity and involve new features of ERP systems. This chapter proposes a framework for evaluating the usability maturity as a quality attribute of ERP systems.


Author(s):  
N. Brehm ◽  
D. Lübke ◽  
J. Gómez

Enterprise resource planning (ERP) systems consist of many software components, which provide specific functionality. As ERP systems become more complex, the financial expenditures that are associated with the application of such systems dramatically increase. Furthermore, ERP system development of nowadays is product-oriented and coordinated by only one instance at any one time. Consequently, each product has a separate data model, which is the basis for the integration of various types of business applications. Based on this fact, the selection of the covered functional enterprise sectors as well as the implemented functions is controlled by the respective vendor, too. Thus, enhancements and modifications of the standard software product are incumbent upon the software vendors. A cross-vendor standardization of data models for ERP systems and the establishment of unified architectural model, however, would change this situation. The new idea is to develop a novel ERP system architecture, which facilitates an overall reusability of individual business components (BC) through a shared and non-monolithic architecture based on Web services. The presented approach uses Web services to wrap up ERP components that are provided within a distributed system, which appears as an ERP community and serves as a vendor-independent platform.


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