Measuring Utilization of ERP Systems Usage in SMEs - Enterprise Information Systems Design, Implementation and Management: Organizational Applications - page 292

reseArch ModeL integrated system within the organization, thereby

making use of master data. The ERP breadth
gives us an idea about whether the organization
is trying to get rid of bottlenecks in the informa-
tion flow, or whether the ERP is thought of as an
exclusive functional support for a certain type of
business process, such as production. ERP breadth
is measured by three items: 1) share of business
processes that use master data, 2) degree of internal
business processes integrated through the ERP,
and 3) degree of business processes integrated
with external partners.
The third dimension, ERP diversity, represents
the extent to which different types of business pro-
cesses are supported through ERP. The diversity of
ERP in business processes is measured by mapping
the number of core and support processes that are
supported by ERP. This measurement is connected
to the many different types of functionality that
ERP should support. Diversity is measured by
eight items indicating that the business processes
are supported by ERP: 1) Sales, 2) Marketing, 3)
Production, 4) Service, 5) Procurement, 6) R&D,
7) HR, and 8) Finance.
ERP depth represents the extent to which a
firm's business processes are supported by ERP
on different hierarchical levels. This also points
to the integrated system and the use of master
data. The ERP depth informs us whether the or-
ganization believes that an ERP can be useful in
all hierarchical parts of the organization and for
all processes. The final dimension is measured
by three items used at the hierarchical levels: 1)
Strategic, 2) Tactical, and 3) Operational.
Table 1 summarizes the four dimensions and
the associated items. From the discussion thus far,
a model for measuring ERP systems utilization
impact on benefits is depicted in Figure 1.
The model suggests that if organizations in-
crease the use of ERP described as ERP systems
utilization , then perceived net benefits increase.
ERP systems utilization is measured by the four
dimensions proposed by Massetti and Zmud
(1996): volume, breadth, diversity and depth.

The vast functionality and organizational coverage
of an ERP requires a comprehensive way to mea-
sure utilization (Hedman, 2003). In our literature
survey, no operationalization of measurement on
ERP systems utilization was found. The closest
models were those of Grover et al. (1998) and Teng
et al. (2002); however, they both measured diffu-
sion through a single measurement. Another model
is presented in the work by Massetti and Zmud
(1996) which develops an instrument of measur-
ing extent of EDI usage in organizations. Their
measurement instrument includes the following
four dimensions: volume, breadth, diversity, and
depth. From Massetti and Zmud's description, we
transform: volume, breadth, diversity, and depth
from an EDI context to an ERP context. We now
describe in greater detail our interpretation of
Massetti and Zmud's concepts in an ERP context.
Volume represents the extent to which a firm's
business processes and users are supported through
ERP. The volume of ERP in business processes is
determined by mapping the extent to which the
ERP supports the core and support processes. The
volume of users is determined by comparing the
number of employees that could benefit from the
ERP with the number of current ERP users in the
organization. Also, for the total number of IS in
the organization, the percentage of IS defined as
ERP is determined. The ERP volume shows if
the organization is willing to support a large part
of the users and processes with ERP. Volume is
measured by four items: 1) degree of ERP users
(number of current ERP users / maximum num-
ber of potential ERP users, 2) ERP share of all
computer based IS, 3) ERP support of primary
business processes (sales/marketing/production/
service), and 4) ERP support of secondary business
processes (procurement, R&D, HR, and finance).
ERP breadth, the second dimension, represents
the extent to which a firm has integrated ERP
connections with each of its business processes.
This shows to what degree the ERP is used as an