Strategic predictors of successful enterprise system deployment

Abstract

PurposeThe delivered wisdom to date has enterprise system purchase and implementation as one of the most hazardous projects any organization can undertake. The aim was to reduce this risk by both theoretically and empirically finding those key predictors of a successful enterprise system deployment.Design/methodology/approachA representative sample of 60 firms drawn from the Fortune 1000 that had recently (1999‐2000) adopted enterprise resource planning (ERP) systems was used to test a model of adoption performance with significant results.FindingsLeadership (social learning theory), business process re‐engineering (change the company not the technology) and acquisition strategy (buy, do not make) were found to be significant predictors of adoption performance (final model R2=43 percent, F=5.5, p<0.001, df=7.52), controlling for industry (manufacturing versus service), project start date and scale (sales). Electronic data interchange (EDI) usage was found to be inversely and significantly related to adoption performance which supports the notion that prior company investments in earlier generations of technology for integration might inhibit adoption of later, more radical or complex alternatives. We validated these results with a focused follow‐up study (2005) using mailed and interview protocols identical to the first questionnaire and 20 new cases of ERP deployment. We found near perfect agreement (p<0.001 binomial test) with our initial findings.Originality/valueThe “four factor” model we validate is a robust predictor of ERP adoption success and can be used by any organization to audit plans and progress for this undertaking.