Abstract
There is a need to determine the performance benefits that firms gain from enterprise resource planning (ERP) systems, and the factors that contribute to success. Consequently, the central research problem is: To determine the impact of ERP systems on organisational performance by analysing achieved ERP benefits within the framework of a suitable performance measurement system (PMS), and to investigate the association between critical success factors (CSFs) and ERP benefits. A list of expected ERP benefits and CSFs is compiled. Performance measurement models are evaluated, and one model is designed to evaluate ERP impact. ERP experts refine identified ERP benefits and CSFs using structured interviews. These are built into a questionnaire, and used to survey South African (SA) companies in manufacturing, mining, and power generation. Results indicate that business benefits are realised by companies that implement ERP systems. By building benefits into the performance measurement model, a positive impact on organisational performance is observed. Although a core list of CSFs is identified, and three associations are found between CSFs and ERP benefits, further research is needed.
Highlights
There is a lack of available information about the impact of enterprise resource planning (ERP) systems, both internationally and in South Africa
This study investigates how ERP systems affect organisational performance over time, within selected South African firms
The ERP time-based balanced scorecard (BSC) is an appropriate system to measure the impact of ERP systems on organisational performance over time, but as this measurement system is largely untested, its validity and reliability need to be confirmed
Summary
There is a lack of available information about the impact of ERP systems, both internationally and in South Africa. This gap in the knowledge base extends from the benefits available to the factors responsible for these benefits being achieved. The primary question is: Do ERP systems have a positive impact on organisational performance in the time periods following implementation?. A link needs to be established between ERP systems and a firm’s performance. This leads to the question: Is there a valid and reliable PMS that links ERP performance to organisational performance?. The third question to be investigated is: What benefits are gained from ERP systems?
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