Dynamics of Governance in IS Outsourced ERP Implementation : Case-based Exploratory Study

Abstract

New paradigm has been emerging in a way firms utilizing information and communication technology (I & CT) and corresponding business process innovation in order to maintain firms’ competitive advantage since early 90’s. Those are said to be Enterprise Resource Planning (ERP) system and Business Process Reengineering (BPR) or Process Innovation (PI). In contrast to traditional methodology for developing in-house corporate information system (CIS), there need to develop new breed of methodology for ERP implementation for two reasons. One is distinctive set of features of ERP system; and, the other is the way and governance structure of working in ERP implementation. Regarding the governance structure, firms tend to work with consulting firms for ERP implementation since it is on its early stage in lifecycle. There has been a log of studies done in ERP implementation. Most of the previous studies concerned about implementation methodology and implementation impacts on firm’s performance and competitiveness. As firms used to work with outsourced consulting firm for their ERP implementation, there has been a few studies how to effectively and efficiently work with outsourced firm in ERP implementation. In our study, we borrowed Huber, Fisher, Dibbern and Hirschheim’s (2013-2014) process model and applied the model in ERP implementation. Firstly, we matched the three adaptation triggers along with ERP implementation process. Secondly, we observed the dynamics of governance types during the implementation process. Lastly, we proposed adaptation outcomes focusing on the ERP implementation process by exploring a well-known Korea company in its ERP implementation.