CHAPTER 1 OVERVIEW OF STUDY
5.8 OBJECTIVE 5: TO ASSESS THE PERCEIVED BENEFITS OF
In this objective, respondents were required to assess the perceived benefits of their ERP system installation. This question was only posed to respondents that have an ERP system implemented or are currently implementing. The sample for this objective was 16 respondents.
5.8.1 Question 5.1 asked if the new system had resulted in greater efficiencies administratively.
Thirteen (86%) of the respondents agreed that it had resulted in greater efficiencies administratively. One disagreed and another remained neutral. This indicated that most companies interviewed have clearly benefited in the implementation of ERP systems administratively. This tallies with other studies which have indicated that in spite of the documented failure rates of ERP systems, there are several other success factors for the systems (de Jager, 2010).
During cross tabulation (Table 4.26) of company size and improved efficiency administratively through ERP systems, it became clear that most of the companies have agreed that administrative efficiency has improved by using the ERP system which was installed in the company. The study indicated that only two of the seven small and macro firms did not agree that efficiencies has resulted in the system. The cross tabulation (Table 4.33) of employment position and improved efficiencies
indicates that the majority of the directors and ‘other’ staff agree that the ERP system has provided greater efficiencies than their basic IT infrastructure. The study also noted that two of the fifteen directors disagreed or remained neutral. This is possibly due to them being unaware of the efficiency of the program or the system is still being implemented or has not produced the desired levels of efficiencies as planned.
5.8.2 Question 5.2 investigated if the new ERP system had improved service delivery by fast-tracking processes.
Ten (63%) of the respondents agreed that it has improved service delivery by fast- tracking processes. Two of the respondents disagreed with the improved service while three remained neutral. The high positive rate is perceived as a success when 63% of ERP systems that were implemented indicate improved service delivery. The magnitude of this success is concurs with the similar question that was posed in Question 2.3 where almost 97% of the respondents indicated that IT has improved their service delivery. These results vary by 20 to 30% as the IT infrastructure has been utilised for many years whilst the ERP systems are a recent installation.
During cross tabulation (Table 4.27) of company size and improved service delivery dates, it was clear that most of the companies have agreed that service delivery has improved by using the ERP system which was installed in the company. The study indicated that only two of the seven small and macro firms did not agree that service delivery dates have improved with the new system. The cross tabulation (Table 4.34) of employment position and improved service delivery dates, it is indicates that the majority of the staff agree that the ERP system has improved the business operations. The study also indicated that five of the fifteen staff disagreed or remained neutral. This is possibly due to them being unaware of the efficiency of the program or the system is still being implemented or has not produced the desired levels as planned.
5.8.3 Question 5.3 asked if the new ERP systems have improved information networking across users substantially.
Eleven (69%) of the respondents agreed that it has while the remaining five provide a neutral response. This indicates that the ERP system helps organisations to improve their information networking across all users. In essence, the transfer of information and communication strategies are improved and better streamlined when ERP systems are introduced Swaminathan (2011). The high degree of neutrality possibly indicates that respondents have not been able to clearly assess the improvement on information networking and success within the organisation as yet or they are unaware of the networkability status of the system.
During cross tabulation (Table 4.28) of company size and improved information networking through ERP systems, it is clear that most of the companies have agreed that information networking has improved by using the ERP system which was installed in the company. The study indicated that five of the eleven small, medium and macro firms did not agree that service delivery dates has improved with the new system. The cross tabulation (Table 4.35) of employment position and improved information networking, it can be deduced that the majority of the directors and other staff agree that the ERP system has improved the information networking of their operations. The study also indicated that five of the fifteen respondents remained neutral. This is possibly due to them being unaware of the improvements with the program or the system is still being implemented or has not produced the desired levels as planned.
5.8.4 Summary
When relating the results from this study to the overall objective which sought the perceived benefits of ERP systems, the respondents claimed to have benefited from the implementation of the ERP systems through greater efficiencies with regards to administration of the business processes, improving service delivery as well as improving information networking across users. This correlates with another study which maintains that effective communication should be maintained by management
on a continuous basis if they want to prevent resistance to change from within the company (Muscatello et al, 2003).
5.9 OBJECTIVE 6: TO INVESTIGATE THE SUCCESS OF ERP