Information Technology Reference
In-Depth Information
Finally, a group of Greek researchers studied
the manufacturing strategies and the influence of
IT on financial performance, where cluster analysis
method with VACOR algorithm was used. Results
indicated that the usage of information technology
in industrial sector would have a significant effect
on financial measures especially in organizations
utilizing flexible manufacturing and with medium
cost. The influence of using IT was higher in
organizations that concentrate less on innovation
and quality (Theodorou & Florou, 2008).
prise manufacturing intelligence (EMI) tool that
adds contextual dimension to shop floor data then
synchronizes with ERP systems. Such addition
provides real time intelligence to operations and
move manufacturing and resource planning to
another level (Smith, 2008).
When looking at research work, Carton and
Adam (2008) concluded that ERP systems im-
proved management decision making process.
The authors did a case study in the pharmaceutical
sector and concluded to the fact that implementing
and utilizing ERP systems faces many barriers
that prevent firms from benefiting from the rich
information like: the lack of skills needed and the
lack of access to data. Also they emphasized the
incompatibility of transaction data with aggregate
management queries.
Research work related to the perceptions of us-
ers towards ERP systems implementation explored
different factors that make ERP systems more
acceptable. Fan and Fang (2006) tested empiri-
cally the DeLone and McLean model. Their main
findings were the significant relationship between
system quality and system use; system quality and
perceived usefulness; information quality and user
satisfaction; perceived usefulness and system use;
perceived usefulness and user satisfaction; system
use and individual impact; user satisfaction and
individual impact; and finally, individual impact
and organizational impact. The major conclusion
of the study was that user perceptions of IS suc-
cess plays a critical role in ERP implementation.
Similar to their study, Singla (2005) explored
ERP performance and found that adopters consis-
tently outperformed non-adopters across a wide
variety of measures. The study used tangible and
intangible benefits of ERP and a set of business
performance measures.
Some research explored the resistance to
change when applying and ERP systems. The
study utilized an empirical test using a sample of
Dunlop C&F employees (30 responses). Results
indicated that firms need to work towards improv-
ing the user's attitude towards the ERP system.
erp systems research
The American Production and Inventory Con-
trol Society (APICS, 1998) defines ERP as “an
accounting-oriented computer information system
that assists enterprises to define and plan on the
resources required during the operation process
of purchase, production, distribution and strategic
planning to satisfy customers' orders” (Lo, Tsai &
Li, 2005, pp. 13). Deloitte Consulting (1999) refers
to ERP systems as a packaged business solution
that is designed to automate and integrate business
processes, share common data and practices across
the enterprise and provide access to information
in a real time environment.
The previous definitions present a link between
PIS and ERP systems, where the operation and
production are closely linked through both types
of systems. Thus, this study will visit literature
related to ERP systems that might built a better
picture of users' adoption of these systems.
ERP developers claim that their systems are
claimed to increase firms' productivity, improve
operational efficiency, improve communica-
tion and collaboration, grant better control on
processes, enhance scalability and performance,
leverage IT infrastructure, and reduce cost (SSA
Report, 2006). ERP systems expand the processes
of operations to reach external partners as well as
internal firm constituents (Microsoft, 2003) and
increase the level of automation and the value of
business (SAP, 2006). Oracle proposed an enter-
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