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Unpacking the ERP investment decision: an empirical assessment of the benefits and risks

Conference Paper


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Abstract


  • Most leading organizations, in all sectors of industry, commerce and government are dependent upon

    ERP for their organizational survival. Yet despite the importance of the decision to adopt ERP and its

    impact on the entire firm’s performance the IT literature has been in the large part silent on the nature

    of the ERP investment decision. This study is the first of its kind to determine the preference structure

    of senior managers around the organizational benefits and risks of adopting ERP. We present the

    results which provide interesting insights into how managers’ perceive the benefit and risk factors

    salient to the organization’s adoption decision. In line with prior research we found that improved

    productivity, and information and planning are important drivers of the ERP adoption decision.

    Moreover our findings reveal that the benefits of ERP are weighted almost twice as important as the

    risks when making an ERP investment decision. However when it comes to risk, interestingly

    managers consider issues such as top management commitment and vendor support as more

    important than financial risks.

Publication Date


  • 2009

Citation


  • Keating, B., Coltman, T., Michael, K. & Baker, V. (2009). Unpacking the ERP investment decision: an empirical assessment of the benefits and risks. 17th European Conference on Information Systems, ECIS 2009 (pp. 1-13). Verona: University of Verona.

Scopus Eid


  • 2-s2.0-84870683229

Ro Full-text Url


  • http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1813&context=commpapers

Ro Metadata Url


  • http://ro.uow.edu.au/commpapers/765

Start Page


  • 1

End Page


  • 13

Place Of Publication


  • http://www.ecis2009.it/programme.htm

Abstract


  • Most leading organizations, in all sectors of industry, commerce and government are dependent upon

    ERP for their organizational survival. Yet despite the importance of the decision to adopt ERP and its

    impact on the entire firm’s performance the IT literature has been in the large part silent on the nature

    of the ERP investment decision. This study is the first of its kind to determine the preference structure

    of senior managers around the organizational benefits and risks of adopting ERP. We present the

    results which provide interesting insights into how managers’ perceive the benefit and risk factors

    salient to the organization’s adoption decision. In line with prior research we found that improved

    productivity, and information and planning are important drivers of the ERP adoption decision.

    Moreover our findings reveal that the benefits of ERP are weighted almost twice as important as the

    risks when making an ERP investment decision. However when it comes to risk, interestingly

    managers consider issues such as top management commitment and vendor support as more

    important than financial risks.

Publication Date


  • 2009

Citation


  • Keating, B., Coltman, T., Michael, K. & Baker, V. (2009). Unpacking the ERP investment decision: an empirical assessment of the benefits and risks. 17th European Conference on Information Systems, ECIS 2009 (pp. 1-13). Verona: University of Verona.

Scopus Eid


  • 2-s2.0-84870683229

Ro Full-text Url


  • http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1813&context=commpapers

Ro Metadata Url


  • http://ro.uow.edu.au/commpapers/765

Start Page


  • 1

End Page


  • 13

Place Of Publication


  • http://www.ecis2009.it/programme.htm