How to evaluate effects of ERP systems: A model to follow up ERP implementations
Independent thesis Advanced level (degree of Master (One Year)), 10 credits / 15 HE creditsStudent thesis
Enterprise resource planning (ERP) systems are large computer systems that integrate business units. The systems are to improve the companies’ competitive strengths. To ensure that expectations are accomplished evaluation of the effects from ERP implementations is important. Even if the total costs of ownership can run up to 12.3 million EUR, the results are rarely evaluated. Therefore it is a critical issue to develop a functional model for evaluation of the effects in the follow up phase. The development of such a model as described in this thesis is based on existing ERP case studies and interviews. Existing case studies have given an indication of effects that can be expected in a firm’s infrastructure activities. As a result mapping of effects and a first version of a follow-up model are created. Through the interviews feedback has been given on this first version, as well as input on the issue of measurement of effects. Conclusions from the study indicate that a combination of financial and non-financial measures should be used for the evaluation. Further these measures should be linked to each other and to the underlying effects. Finally, dissimilar time perspectives for various effects must also be considered. The developed model grades effects and metrics with two variables – the importance of the effects or metrics for the organisation and performance improvement relative to the state before the ERP implementation.
Place, publisher, year, edition, pages
IdentifiersURN: urn:nbn:se:su:diva-4666OAI: oai:DiVA.org:su-4666DiVA: diva2:194251