2012Journal of Human Resources Management ResearchOpen access

Toward Catalog of Enterprise Resource Planning (ERP) Implementation Benefits for Measuring ERP Success

Nita Sari, Achmad Nizar Hidayanto, Putu Wuri Handayani

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Abstract

The growth of information technology (IT) and trend of e-business transform the business and shifts the business focus from the production into integrated operations.As the impact, enterprises have to adjust themselves by implementing IT systems in their businesses, including develop an integrated application infrastructure named Enterprise Resource Planning (ERP).As a complete, integrated, and all-encompassing systems, ERP are designed to support the key functional areas of the organization and helping companies for reaching competitive advantage for their business.The importance of ERP and numbers of ERP advantages encourages many organizations worldwide to implement the systems and make large amount of investment.However, the ERP systems huge impact on the organization coupled with a potentially high risk of project resulting in various outcome for the companies, from gaining huge amount of profit to get huge disaster.Therefore, it should be imperative that proper evaluation be undertaken on ERP projects to identify, manage and realize the benefits of ERP and their contribution to organizations.This research aims to formulate a catalog of ERP implementation benefits to measure ERP implementation success in the organizations.The benefits catalog was developed by using the five dimensions from Shang and Seddon of ERP benefits framework and 73 subcategories of dimension from Ranti's Generic IS/IT value.Initiated in an agricultural company Indonesia, the research identify the ERP bring benefit to the company in five dimension: operational, managerial, strategic, IT infrastructure, and organizational with the total of 25 categories and 41 subcategories were accepted.

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The growth of information technology (IT) and trend of e-business transform the business and shifts the business focus from the production into integrated operations.As the impact, enterprises have to adjust themselves by implementing IT systems in their businesses, including develop an integrated application infrastructure named Enterprise Resource Planning (ERP).As a complete, integrated, and all-encompassing systems, ERP are designed to support the key functional areas of the organization and helping companies for reaching competitive advantage for their business.The importance of ERP and numbers of ERP advantages encourages many organizations worldwide to implement the systems and make large amount of investment.However, the ERP systems huge impact on the organization coupled with a potentially high risk of project resulting in various outcome for the companies, from gaining huge amount of profit to get huge disaster.Therefore, it should be imperative that proper evaluation be undertaken on ERP projects to identify, manage and realize the benefits of ERP and their contribution to organizations.This research aims to formulate a catalog of ERP implementation benefits to measure ERP implementation success in the organizations.The benefits catalog was developed by using the five dimensions from Shang and Seddon of ERP benefits framework and 73 subcategories of dimension from Ranti's Generic IS/IT value.Initiated in an agricultural company Indonesia, the research identify the ERP bring benefit to the company in five dimension: operational, managerial, strategic, IT infrastructure, and organizational with the total of 25 categories and 41 subcategories were accepted.

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Available abstract

The growth of information technology (IT) and trend of e-business transform the business and shifts the business focus from the production into integrated operations.As the impact, enterprises have to adjust themselves by implementing IT systems in their businesses, including develop an integrated application infrastructure named Enterprise Resource Planning (ERP).As a complete, integrated, and all-encompassing systems, ERP are designed to support the key functional areas of the organization and helping companies for reaching competitive advantage for their business.The importance of ERP and numbers of ERP advantages encourages many organizations worldwide to implement the systems and make large amount of investment.However, the ERP systems huge impact on the organization coupled with a potentially high risk of project resulting in various outcome for the companies, from gaining huge amount of profit to get huge disaster.Therefore, it should be imperative that proper evaluation be undertaken on ERP projects to identify, manage and realize the benefits of ERP and their contribution to organizations.This research aims to formulate a catalog of ERP implementation benefits to measure ERP implementation success in the organizations.The benefits catalog was developed by using the five dimensions from Shang and Seddon of ERP benefits framework and 73 subcategories of dimension from Ranti's Generic IS/IT value.Initiated in an agricultural company Indonesia, the research identify the ERP bring benefit to the company in five dimension: operational, managerial, strategic, IT infrastructure, and organizational with the total of 25 categories and 41 subcategories were accepted.

Key concepts: Enterprise resource planning, Process management, Business, Knowledge management, Resource (disambiguation), Resource planning, Computer science, Operations management

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