Enterprise Resource Planning in a large construction firm: implementation analysis

Abstract

In most large Dutch construction firms, Enterprise Resource Planning (ERP) systems have replaced non‐integrated information systems with integrated and maintainable software. The implementation of ERP systems in such firms is a difficult task. So far, ERP implementations have yielded more failures than successes. This study tries to understand the factors that lead to the success or failure of ERP in large construction firms by focusing on the fits between the following pairs of elements in ERP implementations: business and IT strategy, maturity of the IT infrastructure and the strategic role of IT, and the implementation method and organizational change. The premise of this study is that for an ERP implementation to be successful these elements must somehow fit together. Empirical research was conducted through a case study of three ERP implementations in different business units of a Dutch‐based construction firm. Implementing different systems within one company is typical of the way large construction firms in the Netherlands have dealt with ERP. The study shows that the success of ERP implementations depends on consistent patterns between: IT strategy and business strategy, IT maturity and the strategic role of IT, and the implementation method and organizational change.