Effect of ERP Implementation on Organisational Performance: Manager's Dilemma

Abstract

Enterprise Resource Planning (ERP) improves commercial activity control and provides a competitive advantage when combined with existing benefits.  However, end-users oppose ERP implementation because it disrupts the status quo.  In addition, ensuring that all operational units use the same ERP system is not an easy task.   Therefore, a lack of adaptability is the cause of ERP failure.  This study used a qualitative case study approach to analyze an event and understood the ERP system and natural phenomena.  The data was collected using a semi-structured interview.  The researcher reached data saturation at the 15th respondent's feedback.  Documentary data were examined for patterns and themes prior to triangulation.  The result of this study shows that end-user support is critical to a system's daily operation and implementation, especially when it is new.  Only a system that has been effectively designed, delivered, and trained may be used by end users.  Implementing ERP enhances an organization's capacity and performance.  Post-implementation evaluation is needed to determine the organization's potential and the system's value.  Except for financial performance, the organization's overall performance has improved across all Balance Score Card (BSC) perspectives of internal processes, customers, learning, and growth.  Adopting new technologies is expected to enhance the organization's overall efficiency.  Each identified thematic area affects an organization's ability to use its ERP system effectively and efficiently to achieve previously identified benefits.  In addition, the study found that STP organizations focus on the benefits of implementing ERP rather than the associated costs.  Finally, organizations can better plan for the future benefits of replacing or updating ERP systems.

Keywords

• behaviour of the end-user
• erp system
• enterprise performance
• post-erp implementation
• stp organization