Abstract
PhD. (Computer Science)
Enterprise resource planning (ERP) systems are implemented within organisations to enable
them to work more efficiently and enhance productivity. They also ensure that different levels
of information are available to managers within the organisation for strategic and tactical
decision-making. The implementation of ERP systems is often associated with great costs,
they are resource intensive and cover the whole organisation.
The implementation of ERP systems is perceived as a project that often fails owing to overrun
on cost and time. The return on investment (ROI) is also often questioned once an ERP
system has been implemented, since the organisation does not always see the benefits of the
ERP system versus the effort and cost of implementing it.
The purpose of this thesis is twofold: firstly it determines what an ERP system is and whether
it can be subdivided into different components. The focus of this section is on the operational
side of an ERP system to determine how it is managed and operated within an organisation.
The second focus is on the way that ERP systems are implemented and the management
that goes hand in hand with this implementation.
The first focus area is addressed by developing a model that explains ERP and the different
components within it. It describes the interactions between the different components and how
the ERP system affects the organisation. This model provides a better understanding of an
ERP system and shows the technology to be mature.
The second focus area is addressed by a framework that assists organisations in deriving
projects from the organisational vision. This ensures that the implementation of an ERP
system will directly support the organisation’s vision and strategies. This addresses the issue
of determining the value of the ERP system as well as ROI. The framework also provides
alternative ways and methods that can be used to implement ERP systems.
The value of this research is firstly that it provides a holistic model of what constitutes an ERP
system and its effect on the organisation. ERP systems change not only the financial
systems, but also the way the organisation operates. They introduce organisational change.
The value of the framework is that it can assist organisations in identifying and implementing
projects that will enable the implementation of the organisation’s vision and strategies. This
will eliminate any favoured projects that are not in support of the organisation’s vision and can
save the organisation’s scarce resources that would have been wasted on these projects.
The framework can also assist organisations in determining if they must implement an ERP
system and what value this implementation will have for the organisation.