Industry Variables Affecting ERP Success and Status

Industry Variables Affecting ERP Success and Status

Alan R. Peslak (Penn State University, USA)
Copyright: © 2012 |Pages: 19
DOI: 10.4018/jeis.2012070102
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Abstract

This manuscript analyzes the views of top financial executives on the information systems (IS) in their organizations and to study the level of enterprise resource planning implementation success and well as current status of activity in ERP systems. Specifically, ERP success and status were studied in 2010 as well as the effect of company size, level of ownership, and industry. An analysis of secondary data obtained from the 2006 and 2010 Financial Executives International comprehensive survey-based research on technology issues for financial executives. The results of this study are further explored deeper in the article.
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Literature Review

Unfortunately, however, the track record of implementing these complex systems has been problematic. Barker and Frolick (2003) found that 50% of ERP implementations are failures. Hong and Kim (2002) estimate a 75% “unsuccessful” rate. And Scott and Vessey (2002) and Martin (1998) estimate failure as high as 90%. Dorobat and Nastase (2010) note that the “overwhelming majority” of ERP implementations fail to meet their time and cost project management goals, suggesting a poor rate of success. Kien, Soh, and Tay-Yap (2000) propose that there are “misfits” in ERP implementation. Nour and Mouakket (2011) also note the high failure rates. Some demographic variables may lead to lower levels of success.

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