Title page for ETD etd-04042011-191035

Document Type Master's Dissertation
Author De Jager, Daniel Christiaan
URN etd-04042011-191035
Document Title ERP value determination in South African companies
Degree MBA
Department Gordon Institute of Business Science
Advisor Name Title
Mr R Page-Shipp Supervisor
  • critical success factors
  • key metrics
  • post purchase analysis
  • business value
Date 2011-04-20
Availability unrestricted

The theme of this research is to establish how South African companies evaluate the benefits of a capital investment, in terms of ERP implementations, to the organisation. The question of whether determinable value can be quantified and the methods used to calculate such value is explored. A search is conducted for critical success factors for successful ERP implementations, key metrics used for monitoring results, and the approach of South African companies to determining benefits.

The research is designed to establish what post purchase analyses of completed projects are conducted and what percentage of completed implementations are considered successful in the South African environment, as well as the possible reasons for those successes and failures.

The research consists of firstly a qualitative study of the goals of value creation of ERP decisions, which included a couple of interviews with IT and Process Engineering consultants to form a basis of knowledge for why companies implement ERP systems in the first place, followed by a quantitative descriptive study of the implementation success factors and post implementation analysis, by means of a survey of South African companies.

The outcome of the research shows that ERP in South Africa has matured to a level where the majority of projects are judged by the key decision makers to be successful, in contrast to expectations created by the literature review performed. It also highlights that, in the capital budgeting decision making processes followed by companies of different sizes, qualitative factors play a slightly bigger role than quantitative factors in the motivation of an ERP implementation. In addition, this research concludes that companies who identify a clear business value goal with the proposed ERP implementation, ensures buy-in from top management, perform proper planning before embarking on the project, as well as follow some kind of rigorous measurement framework, experience higher levels of ERP success than those who do not.

Copyright 2010, University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria.

Please cite as follows:

De Jager, DC 2010, ERP value determination in South African companies, MBA dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://upetd.up.ac.za/thesis/available/etd-04042011-191035/ >


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