The Organisational Performance Impact Of ERP Systems On Selected Companies

• Main Authors: Hart, Colin Anthony, Snaddon, Roy Douglas
• Format: Article
• Language: English
• Published: Stellenbosch University 2014-05-01
• Series: South African Journal of Industrial Engineering
• Subjects: enterprise resource planning; organisational performance; ERP; critical success factors
• Online Access: http://sajie.journals.ac.za/pub/article/view/615

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.