Abstract
To gain further experience with the conceptual model, as part of the theory testing phase, a third in-depth case study was carried out at FINCORP. The IS product standardization in this study relates to ERP HR modules of PeopleSoft®1, which include the accompanying HR processes. These modules were selected as company IT standard. As discussed in Chapter 3, measuring the real costs and benefits of IT investments is a notoriously complex problem (Brynjolfsson and Hitt, 1998). Asif and Schuff (2005) acknowledge that this becomes even more complicated when considering ERP technologies that impact on a variety of processes across the value chain. Chand et al. (2005, p.560) also acknowledge the problem of assessing the benefits of ERP systems is less well studied and understood, and illustrate the applicability of the Balanced Scorecard (BSC) to ERP systems. They list various reasons that motivate organizations to implement ERP systems, which can be split into financial and non-financial benefits (Table 1). Anticipated benefits related to company IT standardization can be clearly identified. Furthermore, they integrate the four Kaplan and Nortons’ Balanced Scorecard perspectives with Zuboff’s automate, informate and transformate goals of information systems (Zuboff, 1985) in an attempt to measure the contributions and impacts of ERP systems at operational, tactical and strategic levels. However, in this case study we will use the original perspectives to make comparison with the other case studies possible.
TopIntroduction
To gain further experience with the conceptual model, as part of the theory testing phase, a third in-depth case study was carried out at FINCORP. The IS product standardization in this study relates to ERP HR modules of PeopleSoft®1, which include the accompanying HR processes. These modules were selected as company IT standard.
As discussed in Chapter 3, measuring the real costs and benefits of IT investments is a notoriously complex problem (Brynjolfsson and Hitt, 1998). Asif and Schuff (2005) acknowledge that this becomes even more complicated when considering ERP technologies that impact on a variety of processes across the value chain. Chand et al. (2005, p.560) also acknowledge the problem of assessing the benefits of ERP systems is less well studied and understood, and illustrate the applicability of the Balanced Scorecard (BSC) to ERP systems. They list various reasons that motivate organizations to implement ERP systems, which can be split into financial and non-financial benefits (Table 1). Anticipated benefits related to company IT standardization can be clearly identified.
Table 1. Reasons for ERP adoption (Chand et al., 2005)
| Business reasons for ERP adoption | Technical reasons for ERP adoption |
| Financial benefits | Accommodate business growth
Reduce business operating and administrative expenses
Reduce inventory carrying costs and stock outs | Replace hard to maintain interfaces
Reduce software maintenance burden through outsourcing
Eliminate redundant data entry
Decrease computer operating costs |
| non-financial benefits | Acquire multi-language capability
Acquire multi-currency IT support
Improve inefficient business processes
Eliminate delays and errors in filling customers’ orders for merged businesses
Provide integrated IT support
Standardize procedures across different locations
Present a single face to customer
Acquire worldwide ‘‘available to promise’’ capability
Streamline financial consolidations
Improve company wide decision support | Reduce data errors
Integrate applications cross-functionally
Ease technology capacity constraints
Improve IT architecture
Consolidate multiple different systems of the same type |
Furthermore, they integrate the four Kaplan and Nortons’ Balanced Scorecard perspectives with Zuboff’s automate, informate and transformate goals of information systems (Zuboff, 1985) in an attempt to measure the contributions and impacts of ERP systems at operational, tactical and strategic levels. However, in this case study we will use the original perspectives to make comparison with the other case studies possible.