Analysis of the Role of IT Governance on ERP Systems Implementation

Analysis of the Role of IT Governance on ERP Systems Implementation

Soukaina Elhasnaoui
DOI: 10.4018/IJWLTT.2021010103
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Abstract

An ERP (enterprise resource planning) is an information system that makes it possible to manage and monitor on a daily basis all the information and operational services of a company. It is able to effectively reduce the cost of products, improve customer service experience, and increase business competitiveness. However, the implementation rate of the ERP system is much lower than originally planned, and many companies have not achieved the intended objectives. This situation is due to many factors (high implementation costs, technical complexity, lack of well-trained employees, lack of incentive mechanisms, etc.), but the key element is the separation of relations between the ERP system and enterprise strategy, organizational structure, and business processes. The purpose of this paper is to examine the role of IT governance in achieving ERP performance with a focus on the implementation phase.
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2. Literature Review

2.1 ERP Performance

The key performance indicators for ERP systems are: quality of the system, quality of information, use of the integrated management system, user satisfaction, individual and organizational impact (Tsai, 2015). Organizations have ERP systems to improve their operational performance and profitability (Ruivo, 2014).

As a result, IT is increasingly seen as a tool to support management activities that involve making decisions about the complexity of organizational problems. The ERP system requires a large IT investment and its efficiency is complicated to examine (Carvalho, 2017). Organizations need to focus more on pre-trial IT governance to improve the performance of enterprise information management (ERP) software packages. IT governance will be built through decision-making, goal-setting and organizational capacity building for targeted goals and objectives (Chang, 2016).

2.2 Implementation of ERP Systems

The ERP performance occurs in the post-implementation sentence. As a result, the post-implementation review process needs to be well managed (Motwani, 2010). The implementation of ERP can be considered a radical novelty and requires organizational change (Van Grembergen, 2005). The implementation of ERP is successful when the ERP becomes more complex to maintain its functioning after implementation (Chang, 2016). The subsequent implementation of ERP systems includes: an audit; ERP documentation and advertising success; success of the correspondence; success of the process; success of the interaction; expected success and comparative analysis (Devos, 2012).

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