A stage maturity model for enterprise resource planning systems use

Abstract

Enterprise Resource Planning (ERP) systems dominate the information technology landscape of many companies. Organizations are at different stages in the implementation process ranging from the initial analysis of implementation options, through completed standard implementations and to the sophisticated exploitation of ERP systems using advanced knowledge management, customer relationship management and supply chain management systems. The authors present a maturity model for ERP systems that identifies three stages and this is illustrated using case data selected from the study which is based on 24 organizations in the US and Europe. In Stage 1, organizations are managing legacy systems and starting the ERP project. In Stage 2, implementation is complete and the functionality of the ERP system is being exploited across the organization. In Stage 3, organizations have normalised the ERP system into the organization and are engaged in the process of obtaining strategic value from the system by using additional systems such as customer relationship management, knowledge management and supply chain planning. It is shown that the organizations follow an S-shaped curve, and that most companies are in the middle stage. An analysis of the implications for organizations at each stage of the maturity model is presented which will be of value to practising managers. The implications are categorised as impacts on cost, entropy, complexity, flexibility and strategic competitiveness.