Critical success factors of ERP benefits in CREM: evidence from Austria, Germany and Switzerland

Abstract

Purpose The purpose of this study is to find answers to the question whether a fully-integrated real estate (RE) solution within an Enterprise Resource Planning (ERP) landscape delivers a visible and measurable contribution to organizational efficiency in corporate real estate management (CREM), a field still dominated by specialized, but stand-alone software packages. Design/methodology/approach The authors set up a model of CREM with the enterprise resource planning (ERP) systems being the hinge between the RE strategies and organizational efficiency. The model was tested by a written questionnaire to respond on the benefit expectations on ERP benefits. Findings In many cases, the results show a negative gap between expectations and realized benefits. The authors identified benefit stars and dogs within the sample. Stars realizing high benefit ratios on average have more often chosen the form of a shared service center for their CREM department, have reengineered the business processes more intensively, had more often a legacy system as a predecessor of the SAP ERP, trained employees more intensively and showed a higher degree of customization of the RE module than the benefit dogs of the sample. Practical implications Newly formed CREM departments looking for optimal IT solutions find decision support regarding the best fit for their IT landscape. Already institutionalized CREM units running an ERP system will find concrete evidence for improvement. Originality/value This is the first study of benefits and critical success factors of ERP implementation and operation for modern CREM. It is the attempt to bridge the gap between business and IT, showing the enabler role of ERP systems for efficient business processes, satisfied corporate users and motivated employees.