ERP systems implementation Factors influencing selection of a

ERP systems implementation: Factors influencing selection of a specific approach? Björn Johansson Frantisek Sudzina Center for Applied ICT, Copenhagen Business School [bj; fs]. caict@cbs. dk 3 g. ERP workshop Copenhagen 17 -18 November 2008 1

Questions Asked? • What makes an organization select a specific approach when implementing ERPs? • In what way do specific factors influence selection of a specific approach when implementing ERPs? 3 g. ERP workshop Copenhagen 17 -18 November 2008 2

So the paper is about: • ERP implementation • Different approaches for how it could be done • Factors influencing the selection • Results and discussion • Conclusions and some thoughts about future research 3 g. ERP workshop Copenhagen 17 -18 November 2008 3

ERP implementation • Implementation (or deployment) of ERPs is both complex and costly • In the paper we define it as ”the way how organizations systematically integrate ERPs into the specific organization” • It can be done in different ways 3 g. ERP workshop Copenhagen 17 -18 November 2008 4

ERP Implementation approaches • Slow phase • one module at a time • Pilot project • implementing one module followed by all other modules in one step • Big bang • Implementing all ERP software modules at the same time 3 g. ERP workshop Copenhagen 17 -18 November 2008 5

Influencing factors • Growth • Economic development between 2004 2006 • Organizational size • Employees 250+, 50 – 249, <50 • IS/IT strategy • Formal strategy yes or no • CIO • Asked about presence by IT professionals at board level yes or no • Country • Denmark, Slovakia, Slovenia 3 g. ERP workshop Copenhagen 17 -18 November 2008 6

Results and discussion, Growth Implementation approach Influencing factor Pilot project Growth Reduction turnover Slow phased Big bang in 40% 30% Stable turnover 24% 16% 60% Growth of 0 -5% 31% 22% 49% Growth of 5 -10% 42% 8% 50% Growth of 10%+ 23% 30% 48% 3 g. ERP workshop Copenhagen 17 -18 November 2008 7

Results and discussion, Organizational size Influencing Implementation approach factor Organizational Slow Pilot size phased project Big bang Large 27% 18% 55% Midsized 25% 28% 47% Small 35% 21% 44% 3 g. ERP workshop Copenhagen 17 -18 November 2008 8

Results and discussion, IS/IT strategy Influencing factor Implementation approach Slow phased Pilot project Big bang Yes 23% 24% 53% No 35% 17% 48% IS/IT strategy 3 g. ERP workshop Copenhagen 17 -18 November 2008 9

Results and discussion, CIO (presence by IT professionals in the board) Influencing factor Implementation approach Slow phased CIO Pilot project Big bang With CIO 23% 26% 51% Without CIO 33% 16% 51% 3 g. ERP workshop Copenhagen 17 -18 November 2008 10

Results and discussion, Country Influencing Implementation approach factor Country Slow phased Pilot project Big bang Denmark 19% 25% 56% Slovakia 27% 19% 52% Slovenia 30% 22% 48% 3 g. ERP workshop Copenhagen 17 -18 November 2008 11

Conclusions and some thoughts about future research • No clear significant relationship between suggested factors and implementation approach • Despite reported risks with Big bang implementation it is the most dominant implementation approach • Investigate Vendor/product influence on ERP implementation • Further investigate factors influence on implementation approach (look after patterns) 3 g. ERP workshop Copenhagen 17 -18 November 2008 12

Questions and Comments 3 g. ERP workshop Copenhagen 17 -18 November 2008 13