3gERP workshop Copenhagen November ERP systems implementation: Factors influencing selection of a specific approach? Björn Johansson Frantisek Sudzina Center for Applied ICT, Copenhagen Business School

2 3gERP workshop Copenhagen 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?

3 3gERP workshop Copenhagen 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 4 3gERP workshop Copenhagen 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 5 3gERP workshop Copenhagen November 2008

Influencing factors Growth Economic development between 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 6 3gERP workshop Copenhagen November 2008

Results and discussion, Growth Influencing factor Implementation approach Growth Slow phased Pilot project Big bang Reduction in turnover40%30% Stable turnover24%16%60% Growth of 0-5%31%22%49% Growth of 5-10%42%8%50% Growth of 10%+23%30%48% 7 3gERP workshop Copenhagen November 2008

Results and discussion, Organizational size Influencing factor Implementation approach Organizational size Slow phased Pilot project Big bang Large27%18%55% Midsized25%28%47% Small35%21%44% 8 3gERP workshop Copenhagen November 2008

Results and discussion, IS/IT strategy Influencing factor Implementation approach IS/IT strategy Slow phasedPilot project Big bang Yes23%24%53% No35%17%48% 9 3gERP workshop Copenhagen November 2008

Results and discussion, CIO (presence by IT professionals in the board) Influencing factor Implementation approach CIO Slow phasedPilot project Big bang With CIO23%26%51% Without CIO33%16%51% 10 3gERP workshop Copenhagen November 2008

Results and discussion, Country Influencing factor Implementation approach Country Slow phasedPilot project Big bang Denmark19%25%56% Slovakia27%19%52% Slovenia30%22%48% 11 3gERP workshop Copenhagen 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) 12 3gERP workshop Copenhagen November 2008

13 3gERP workshop Copenhagen November 2008 Questions and Comments