Abstract
The implementation team problem is one of the critical elements lead to ERP project failure. The purpose of thisresearch is to explore the relationship between team risk factors and IT governance. The IT governance includesfive important domains, that is, IT strategic alignment, IT value delivery, IT resource management, IT riskmanagement, and IT performance management. Our research results indicate that, among five domains of ITgovernance, strategic alignment is the most important area. As for the team risk factors, two main team riskfactors are “Lack of cross-functional team members” and “IT members’ lack of specialized knowledge requiredby the ERP project”. Companies that encountered these team risk factors during ERP project implementationhave lower IT governance achievement level than those that did not. It is suggested that Corporations shouldtrain their IT members in specialized ERP knowledge and set up a cross-functional team for ERP implementationin order to achieve effective IT governance.
Highlights
The steps are described in detail as follows: Step1: Listing the enterprise resource planning (ERP) team risk factors and IT governance criteria by conducting a literature review, and evaluating them with a small sample survey
Consistent with Bernroider (2008), the IT strategic alignment is a major element of IT governance and well-established IT governance will facilitate the success of ERP implementation
The results reveal that companies that do not encounter these team risk factors during ERP project implementation have better IT governance achievement level
Summary
The steps are described in detail as follows: Step: Listing the ERP team risk factors and IT governance criteria by conducting a literature review, and evaluating them with a small sample survey. Data analysis and results 4.1 Sample demographics Of the 275 responses that were implementing or had implemented ERP systems, 208 companies (75.64%) have fewer than 500 employees, 229 companies (83.27%) have annual revenues below NT$ 5 billion, and 251 companies (91.27%) have capital amounts of less than NT$ 5,000 million Among these companies, approximately 199 (72.36%) are manufacturers and 76 are members (27.64%) of service industries. For the implementation outcome, we can see that respondents indicated that their IT governance structures were useful in their company (the values of implementation outcome are smaller than the average importance scores) According to these results, the boards of directors would focus on the five domains to improve the IT governance in practice, especially in strategic alignment area (the average values of importance ratings are 5.5; it is the top one importance). The policy implication is that the boards of directors in Taiwanese corporations should enhance the IT governance by focusing on strategic alignment area first and other domains of IT governance
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