Consideration of ERP Effectiveness: From the Perspective of ERP Implementation Policy and Operational Effectiveness
Abstract
:1. Introduction
2. Literature Review
3. Analysis of Customer Satisfaction Structure
3.1. Conceptual Research Framework and Hypothesis
3.2. Research Result
4. Conclusions
Acknowledgments
Author Contributions
Conflicts of Interest
References
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1999–2001 | 2002–2004 | 2005–2007 | 2008–2010 | 2011–2013 | |||||
---|---|---|---|---|---|---|---|---|---|
USA | 7 | China | 1 | Canada | 1 | Belgium | 1 | China | 2 |
UK | 2 | Italy | 1 | China | 2 | Egypt | 2 | India | 3 |
Singapore | 1 | Korea | 2 | India | 1 | India | 1 | Iran | 5 |
Saudi Arabia | 1 | Malaysia | 3 | Malaysia | 1 | Malaysia | 2 | ||
Singapore | 1 | Poland | 1 | Pakistan | 1 | Pakistan | 1 | ||
Netherlands | 1 | Slovenia | 1 | Slovenia | 1 | Saudi Arabia | 1 | ||
Turkey | 1 | Sweden | 1 | Taiwan | 1 | Taiwan | 1 | ||
UK | 1 | Taiwan | 1 | UAE | 1 | UAE | 1 | ||
USA | 10 | USA | 9 | USA | 1 | USA | 2 | ||
Total | 10 | 19 | 20 | 10 | 18 |
Before ERP | |||
Machine’s Name | Purpose | Item of Payment | Expense/Year |
System-1 | Sales management of SPS. | Machine Lease | 4750 |
System Charge | 6000 | ||
Operation Charge | 26,000 | ||
Maintenance Charge | 20,000 | ||
System-1 Total | 56,750 | ||
System-2 | Production of SPS. (inventory, MRP, Purchase) | Machine Lease | 0 |
System Charge | 0 | ||
Operation Charge | 24,000 | ||
Maintenance Charge | 10,000 | ||
System-2 Total | 34,000 | ||
System−3 | Production of SPS. (cost, inventory, WIP, Purchase) | Machine Lease | 1980 |
System Charge | 1200 | ||
Operation Charge | 0 | ||
Maintenance Charge | 5000 | ||
System-3 Total | 8180 | ||
Outsourcing | Human Resource | Total | 16,800 |
System-4 | Sales management of SP. Production of SP. All of accounting. | Machine Lease | 22,000 |
System Charge | 14,000 | ||
Operation Charge | 30,000 | ||
Maintenance Charge | 70,000 | ||
System-4 Total | 136,000 | ||
Total Running Cost | Machine Lease | 28,730 | |
System Charge | 21,200 | ||
Operation Charge | 80,000 | ||
Maintenance Charge | 105,000 | ||
Others | 16,800 | ||
G-Total | 251,730 | ||
After ERP | |||
Machine’s Name | Purpose | Item of Payment | Expense/Year |
Hard Ware | Multi Interface Server | 2,900,000 | 30,332 |
Human Resource Server | 1,880,000 | ||
ERP Main Server | 137,500,000 | ||
ERP Development Server | 7,500,000 | ||
Multi Report Server | 1,880,000 | ||
ERP (Annual Supporting Fee) | 19,872 | ||
Developing Tool (Annual Supporting Fee) | 193 | ||
MRP Planner (Annual Supporting Fee) | 5904 | ||
Multi Interface (Annual Supporting Fee) | 1958 | ||
Multi Report (Annual Supporting Fee) | 1760 | ||
Human Resource/Salary & Add-on (Annual Supporting Fee) | 1958 | ||
Fixed Assets (Annual Supporting Fee) | 336 | ||
System charge | 8000 | ||
Operation charge | 50,000 | ||
Total Running Cost | 120,313 | ||
Estimate of Total Cost Reduction/Year | −131,417 |
Annual Sales | Frequency | Percentage |
Above 1000T | 18 | 10% |
Between 300B and 1T | 21 | 12% |
Between 100B and 300B | 27 | 15% |
Between 50B and 100B | 23 | 13% |
Between 30B and 50B | 15 | 8% |
Between 10B and 30B | 36 | 20% |
Between 5B and 10B | 13 | 7% |
Under 5B | 29 | 16% |
Total | 182 | 100% |
Industry | Frequency | Percentage |
Service | 31 | 17% |
Finance business | 5 | 3% |
Public corporation | 0 | 0% |
IT film | 48 | 26% |
Industry | 82 | 45% |
Distribution | 16 | 9% |
Total | 182 | 100% |
Organization (Department/Section) | Frequency | Percentage |
Chief Information Officer (CIO) | 5 | 3% |
IT | 105 | 58% |
Business planning | 11 | 6% |
Chief Executive Officer (CEO), Executive team | 9 | 5% |
System user | 52 | 29% |
Total | 182 | 100% |
Path | Estimate | S.E. | C.R. | P | ||
---|---|---|---|---|---|---|
Operational_satisfaction | <--- | Cooperational_satisfaction | 0.648 | 0.112 | 5.798 | *** |
Operational_satisfaction | <--- | Policy and activity | 0.200 | 0.047 | 4.307 | *** |
Improvement_of_CS | <--- | Cooperational_satisfaction | 1.000 | |||
Inventory_reduction_SC_improvement | <--- | Cooperational_satisfaction | 1.120 | 0.106 | 10.617 | *** |
Infromation_utilization | <--- | Cooperational_satisfaction | 1.061 | 0.095 | 11.157 | *** |
Cost_reduction_by_BPR | <--- | Operational_satisfaction | 1.372 | 0.230 | 5.973 | *** |
Manage_EIS_at_grobal_level | <--- | Operational_satisfaction | 1.209 | 0.231 | 5.241 | *** |
Prompt_accounting_settlement | <--- | Operational_satisfaction | 1.335 | 0.229 | 5.838 | *** |
Grasping_business_performance | <--- | Operational_satisfaction | 1.435 | 0.241 | 5.954 | *** |
OverallSatisfaction | <--- | Operational_satisfaction | 1.549 | 0.243 | 6.369 | *** |
Agile_IT_implementation_forcing_BPR | <--- | Operational_satisfaction | 1.530 | 0.249 | 6.148 | *** |
Corrsnponding_to_IFRS | <--- | Operational_satisfaction | 1.000 | |||
Function_o_level_of_grobal_SCM | <--- | Impremention_policy | 1.029 | 0.141 | 7.287 | *** |
Functiona_level_of_fnance_and_accounting | <--- | Impremention_policy | 0.874 | 0.108 | 8.059 | *** |
Functiona_level_of_marketing_and_Sales | <--- | Impremention_policy | 1.124 | 0.128 | 8.757 | *** |
Functional_level_of_EPM_BI | <--- | Impremention_policy | 1.000 | |||
Customaizetion_policy | <--- | Impremention_policy | 0.306 | 0.127 | 2.411 | ** |
Master_data_management | <--- | Policy_and_activity | 0.145 | 0.110 | 1.312 | 0.190 |
Business_focused_implementation | <--- | Policy_and_activity | 0.229 | 0.112 | 2.040 | ** |
IT_focused_implementation | <--- | Policy_and_activity | 0.153 | 0.104 | 1.469 | 0.142 |
Path | Estimate | ||
---|---|---|---|
Operational_satisfaction | <--- | Cooperational_satisfaction | 0.932 |
Operational_satisfaction | <--- | Impremention_policy | 0.297 |
Improvement_of_CS | <--- | Cooperational satisfaction | 0.776 |
Inventory_reduction_SC_improvement | <--- | Cooperational satisfaction | 0.825 |
Infromation_utilization | <--- | Cooperational satisfaction | 0.814 |
Cost_reduction_by_BPR | <--- | Operational_satisfaction | 0.769 |
Manage_EIS_at_grobal_level | <--- | Operational_satisfaction | 0.627 |
Prompt_accounting_settlement | <--- | Operational_satisfaction | 0.721 |
Grasping_business_performance | <--- | Operational_satisfaction | 0.759 |
OverallSatisfaction | <--- | Operational_satisfaction | 0.943 |
Agile_IT_implementation_forcing_BPR | <--- | Operational_satisfaction | 0.839 |
Corrsnponding_to_IFRS | <--- | Operational_satisfaction | 0.503 |
Function_o_level_of_grobal_SCM | <--- | Impremention_policy | 0.800 |
Functiona_level_of_fnance_and_accounting | <--- | Impremention_policy | 0.754 |
Functiona_level_of_marketing_and_Sales | <--- | Impremention_policy | 0.882 |
Functional_level_of_EPM_BI | <--- | Impremention_policy | 0.775 |
Customaizetion_policy | <--- | Impremention_policy | 0.208 |
Master_data_management | <--- | Impremention_policy | 0.112 |
Business_focused_implementation | <--- | Impremention_policy | 0.183 |
IT_focused_implementation | <--- | Impremention_policy | 0.147 |
Estimate | S.E. | C.R. | P | Label | |
---|---|---|---|---|---|
Cooperational_satisfaction | 0.337 | 0.059 | 5.735 | *** | |
e10 | 0.356 | 0.076 | 4.720 | *** | |
e11 | 0.007 | 0.006 | 1.105 | 0.269 | |
e1 | 0.193 | 0.026 | 7.431 | *** | |
e2 | 0.198 | 0.031 | 6.493 | *** | |
e3 | 0.223 | 0.029 | 7.582 | *** | |
e4 | 0.246 | 0.028 | 8.711 | *** | |
e5 | 0.268 | 0.030 | 8.861 | *** | |
e6 | 0.366 | 0.047 | 7.763 | *** | |
e7 | 0.211 | 0.025 | 8.583 | *** | |
e8 | 0.160 | 0.020 | 8.000 | *** | |
e9 | 0.479 | 0.060 | 7.955 | *** | |
e12 | 0.585 | 0.062 | 9.399 | *** | |
e13 | 0.737 | 0.080 | 9.231 | *** | |
e14 | 0.237 | 0.042 | 5.585 | *** | |
e15 | 0.129 | 0.036 | 3.628 | *** | |
e16 | 0.207 | 0.034 | 6.168 | *** | |
e17 | 0.212 | 0.048 | 4.451 | *** | |
e18 | 0.536 | 0.061 | 8.859 | *** | |
e19 | 0.380 | 0.048 | 7.959 | *** | |
e20 | 0.049 | 0.009 | 5.189 | *** |
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Jinno, H.; Abe, H.; Iizuka, K. Consideration of ERP Effectiveness: From the Perspective of ERP Implementation Policy and Operational Effectiveness. Information 2017, 8, 14. https://doi.org/10.3390/info8010014
Jinno H, Abe H, Iizuka K. Consideration of ERP Effectiveness: From the Perspective of ERP Implementation Policy and Operational Effectiveness. Information. 2017; 8(1):14. https://doi.org/10.3390/info8010014
Chicago/Turabian StyleJinno, Haruna, Hiromichi Abe, and Kayo Iizuka. 2017. "Consideration of ERP Effectiveness: From the Perspective of ERP Implementation Policy and Operational Effectiveness" Information 8, no. 1: 14. https://doi.org/10.3390/info8010014