3gERP workshop Copenhagen 17-18 November 2008 1

ERP systems implementation: Factors influencing selection of a

specific approach?

Björn JohanssonFrantisek Sudzina

Center for Applied ICT, Copenhagen Business School

[bj;fs].caict@cbs.dk

23gERP workshop Copenhagen 17-18 November 2008

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?

33gERP workshop Copenhagen 17-18 November 2008

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

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

43gERP workshop Copenhagen 17-18 November 2008

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

53gERP workshop Copenhagen 17-18 November 2008

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

63gERP workshop Copenhagen 17-18 November 2008

Results and discussion, Growth

Influencing factor

Implementation approach

Growth  Slow phased

Pilot project

Big bang

Reduction in turnover 40% 30% 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%

73gERP workshop Copenhagen 17-18 November 2008

Results and discussion, Organizational size

Influencing factor

Implementation approach

Organizational size

Slow phased

Pilot project  Big bang

Large 27% 18% 55%

Midsized 25% 28% 47%

Small 35% 21% 44%83gERP workshop Copenhagen 17-18 November 2008

Results and discussion, IS/IT strategy

Influencing factor

Implementation approach

 IS/IT strategySlow

phased Pilot project  Big bang

 Yes 23% 24% 53%

 No 35% 17% 48%

93gERP workshop Copenhagen 17-18 November 2008

Results and discussion, CIO (presence by IT professionals in the board)

Influencing factor

Implementation approach

 CIOSlow phased Pilot project  Big bang

 With CIO 23% 26% 51%

 Without CIO 33% 16% 51%

103gERP workshop Copenhagen 17-18 November 2008

Results and discussion, Country

Influencing factor

Implementation approach

CountrySlow phased Pilot project  Big bang

Denmark 19% 25% 56%

Slovakia 27% 19% 52%

Slovenia 30% 22% 48%

113gERP workshop Copenhagen 17-18 November 2008

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)

123gERP workshop Copenhagen 17-18 November 2008

133gERP workshop Copenhagen 17-18 November 2008

Questions and

Comments