Effect of ERP implementation on the company efficiency - A Macedonian case
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Jan Devos, Jasmina Rajcanovska, Hendrik Van Landeghem, Dirk Deschoolmeester, Effect of ERP implementation on the company efficiency - A Macedonian case

Jan Devos, Jasmina Rajcanovska, Hendrik Van Landeghem, Dirk Deschoolmeester, Effect of ERP implementation on the company efficiency - A Macedonian case

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Effect of ERP implementation on the company efficiency - A Macedonian case Presentation Transcript

  • 1. Effect of ERP implementation onthe company efficiency –A Macedonean CaseJan Devos, PhDRajcanovska, J., Van Landeghem, H. & Deschoolmeester, D.CONFENIS 2012 Conference GhentJan Devos - 20/09/2012 pag. 1Faculty of Engineering and Architecture – Campus West
  • 2. Outline of the presentation- ERP- Macedonia- Research Questions- Research Methodology- Findings- ConclusionJan Devos - 20/09/2012 pag. 2Faculty of Engineering and Architecture – Campus West
  • 3. Enterprise Resource Planning (ERP)- Globalization of economies- Maintain a competitive level- Increasing organizational efficiency- Coordinating all resources: IT, IS, data, information- Paradigm shift with bespoke applicationsJan Devos - 20/09/2012 pag. 3Faculty of Engineering and Architecture – Campus West
  • 4. Research ObjectiveWhat is the situation of ERP in a developingcountry (Macedonia) as compared with thatin developed countriesJan Devos - 20/09/2012 pag. 4Faculty of Engineering and Architecture – Campus West
  • 5. Research Questions- What was the reason to implement ERP?- What were the objectives of the ERP implementation?- What was the effect of the ERP implementation on the company?- How the company changes its efficiency after ERP implementation?Jan Devos - 20/09/2012 pag. 5Faculty of Engineering and Architecture – Campus West
  • 6. The Situation in Macedonia- Central Balkan- Independent since 1991- UN member in 1993 (FYROM)- Loss of protected markets- Fall in GDP- PrivatizationsJan Devos - 20/09/2012 pag. 6Faculty of Engineering and Architecture – Campus West
  • 7. The Situation in Macedonia- Focus on foreign markets- Need for more efficient organizations and more competing products & services- More use of IT/IS (telecom and banking)- ERP?Jan Devos - 20/09/2012 pag. 7Faculty of Engineering and Architecture – Campus West
  • 8. Research Methodology- Exploratory research- (single) Case Study - Archival data (e.g. financial reports) - Interviews (CIO & CEO) - Employee surveyJan Devos - 20/09/2012 pag. 8Faculty of Engineering and Architecture – Campus West
  • 9. Case Study Company- Oldest and leading producer for paper and carton boxes- Computerization started in 1998- Separate applications (finance, accounting, MRP)- A lot of manual work- A lot of problems: wrong orders, missed deadlines, a lot of complaints, …- New organizational context (privatization)Jan Devos - 20/09/2012 pag. 9Faculty of Engineering and Architecture – Campus West
  • 10. Findings: Goal settinggaining technological benefits, effectiveness,consistency, reaching integrated system,control, efficiency, preciseness, timeliness,operating costs reduction, rationalizationwithin certain departments, providing qualityof finished work, respecting of proposeddeadlines…Jan Devos - 20/09/2012 pag. 10Faculty of Engineering and Architecture – Campus West
  • 11. Findings: 3 phrase implementation- ERP implementation starts in 2000 (financial module)- Material accounting, warehouse, sales, assets, HR & … payroll- Production, not realized (2003)- DSS (BI?), not realized (2003)- IT Failure?Jan Devos - 20/09/2012 pag. 11Faculty of Engineering and Architecture – Campus West
  • 12. Findings Management- Instant access of information- Monitoring information- AR & AP informationJan Devos - 20/09/2012 pag. 12Faculty of Engineering and Architecture – Campus West
  • 13. Findings Use & Satisfaction- User satisfaction varies- Fear of more and more control in the organization- User resistanceJan Devos - 20/09/2012 pag. 13Faculty of Engineering and Architecture – Campus West
  • 14. Findings Efficiency 2001 2002 2003 2004 2005 2006 2007 2008 Inventory/Sales 0.17 0.12 0.15 0.14 0.15 0.14 0.14 0.14 Inventory/Total 0.18 0.13 0.16 0.14 0.14 0.13 0.14 0.15 Assets Labor 1.41 1.58 1.53 1.49 1.71 2.03 2.17 2.44 Productivity ROS 2.07 1.91 3.21 3.95 2.22 2.28 4.75 3.54 ROA -2.04 3.02 3.85 2.01 0.55 0.71 2.96 2.22 Profit Margin -2.01 2.68 3.73 2.08 0.61 0.76 2.96 2.06 Inventory 4.75 7.01 5.75 6.49 6.05 6.61 6.39 6.84 Turnover Assets 1.01 1.13 1.03 0.97 0.90 0.94 1.00 1.08 Turnover AR Turnover 5.49 4.64 5.36 4.96 4.36 4.55 4.92 4.85Jan Devos - 20/09/2012 pag. 14Faculty of Engineering and Architecture – Campus West
  • 15. Conclusions- Long period of implementation and final acceptation/use (7 years)- A lot of time, money and engagement of the management- Limited effects on efficiency- ERP helps in the transformation of ownership (change)Jan Devos - 20/09/2012 pag. 15Faculty of Engineering and Architecture – Campus West
  • 16. Questions?Jan Devos - 20/09/2012 pag. 16Faculty of Engineering and Architecture – Campus West