Consideration of ERP Effectiveness: From the Perspective of ERP Implementation Policy and Operational Effectiveness

Haruna Jinno,Hiromichi Abe,Kayo Iizuka

doi:10.3390/info8010014

Haruna Jinno, Hiromichi Abe + Show 1 more

Open Access

https://doi.org/10.3390/info8010014

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Abstract

The aim of this paper is to present the results of an analysis of implementing enterprise resource planning (ERP) effectiveness from the perspective of implementation policy and operational effectiveness. Re-engineering has become increasingly important recently due to the rapid changes in the business environment. By implementing ERP systems, companies can standardize their business processes and thereby manage them more effectively and efficiently. However, it is difficult to achieve that kind of effectiveness and efficiency by just implementing ERP. Companies want to know the suitable way to achieve effectiveness. In Japan, ERP systems started to be implemented in the 1990s, and the installation rate to the whole enterprise system is increasing yearly in Japan. However, there are some companies that cannot achieve effectiveness, though some companies have succeeded. The authors developed a model focusing on implementation policy and customization policy, and analyzed the survey results. Data used for the analysis (182 samples) was from the ERP Users’ Survey (2013). For the analysis method, covariance structure analysis using IBM® SPSS® Amos provided by International Business Machines (IBM) Corporation was conducted. This research aimed to contribute to the successful implementation of ERP in Japan.

Highlights

Re-engineering has become increasingly important recently due to the rapid changes in the business environment
The implementation of enterprise resource planning (ERP) systems is increasing in Japan
There is much customization and many add-on programs compared to European and American countries, and it is said that this is the reason for dissatisfaction regarding ERP implementation

Summary

Introduction

Re-engineering has become increasingly important recently due to the rapid changes in the business environment. It is often said that the success rate of ERP projects is not high in Japan The reasons for this situation may be the characteristics of Japanese firms, such as their way of changing their business processes and IT [6]. Companies in Japan tend to use custom-made software, and are more cautious regarding the installation of packaged software, compared to the United States or other Western countries [9,10,11]. Their preference for using custom software can be seen even when implementing packaged software. The authors present the result of an analysis of ERP effectiveness from the perspective of ERP implementation policy and operational effectiveness

Literature Review

Conceptual Research Framework and Hypothesis

Research Result

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Conclusions