Success; ERP success; DEMATEL; Analysing; measurement; Fuzzy Cognitive Mapping (FCM)
Subject Areas : Management Information Systems
Atefe Naderifard
1
,
Mehrdad Kazerooni
2
*
1 - Mechanical Engineering Dept. , Production and manufacturing Eng., K.N.Toosi University of Technology, Tehran, Iran
2 - Assistant Professor of Mechanical Engineering, K. N. Toosi University of Technology
Keywords: Success, ERP success, DEMATEL, Analysing, measurement, Fuzzy Cognitive Mapping (FCM),
Abstract :
Implementing enterprise resource planning (ERP) systems can be a complex and costly endeavour prone to failure. Hence, it is crucial to identify and manage effective measurement criteria to prevent failure and mitigate negative outcomes during implementation. This study aims to analyse the causal relationships among success measurement criteria within a company engaged in steam boiler construction and production by employing the Decision-Making Trial and Evaluation Laboratory (DEMATEL) method. The paper integrates theoretical frameworks with practical applications. The authors extracted 15 ERP success measurement criteria through literature review, interviews, and questionnaires. Subsequently, they utilized the DEMATEL method to assess the importance of these criteria and develop causal interrelationships. Utilizing DEMATEL, it categorizes these metrics into cause and effect clusters. Factors like Enterprise Architecture Improvement, Business Process Improvement, and Employee Involvement are deemed causal, while Customer Service Improvement, Workgroup Improvement, and Competitive Model Improvement are categorized as effects. "Enterprise Architecture Improvement" emerges as the most influential criterion. Understanding these metrics and their relationships aids organizations in enhancing ERP capabilities. This research pioneers categorizing ERP success criteria, facilitating more effective implementation. Valuable insights are provided for ERP implementers, consultants, and researchers involved in ERP projects.
[1] T. Febrianto and D. Soediantono, (2022), "Enterprise Resource Planning (ERP) and Implementation Suggestion to the Defense Industry: A Literature Review.," Journal of Industrial Engineering & Management Research, vol. 3, no. 3, pp. 1-16. 10.7777/jiemar.v3i3.278
[2] P. Faghihi and M. Kazerooni, (2023), "Multi-Agent Enterprise Resource Planning Production Control (MAERPPC) Methodology Based on Personnel Health Monitoring.," Scientia Iranica. 10.24200/sci.2023.60788.7137
[3] N. Alsharari, (2022), "The Implementation of Enterprise Resource Planning (Erp) in the United Arab Emirates: a Case of Musanada Corporation.," International Journal of Technology, Innovation and Management (IJTIM), vol. 2, no. 1, 10.54489/ijtim.v2i1.57.
[4] S. Rouhani and A. Z. Ravasan, (2013), "ERP success prediction: An artificial neural network approach," Scientia Iranica, vol. 20, no. 3, pp. 992-1001, 10.1016/j.scient.2012.12.006.
[5] S. Rouhani, M. Ghazanfari and M. Jafari, (2012), "Evaluation model of business intelligence for enterprise systems using fuzzy TOPSIS," Expert Systems with Applications, vol. 39, no. 3, pp. 3764-3771, 10.1016/j.eswa.2011.09.074.
[6] K. Hansen, M. Haddara and M. Langseth, (2023), "Exploring Multi-Criteria Decision-Making Methods in ERP Selection," Procedia Computer Science,, vol. 219, pp. 879-888, 10.1016/j.procs.2023.01.363.
[7] F. Mahmood, A. Z. Khan and R. H. Bokhari, (2019), "ERP issues and challenges: a research synthesis.," Kybernetes, 10.1108/K-12-2018-0699.
[8] M. Alsayat and M. Alenezi, (2018), "ERP Implementation Failures in Saudi Arabia: Key Findings.," International Business Management, vol. 12, no. 1, pp. 10-22,.
[9] M. Malik and N. Khan, (2021), "Analysis of ERP implementation to develop a strategy for its success in developing countries," Production Planning & Control, vol. 32, no. 12, pp. 1020-1035,.
10.1080/09537287.2020.1784481
[10] A. Chofreh, F. Goni, J. Klemeš and M. Malik, (2020), "Development of guidelines for the implementation of sustainable enterprise resource planning systems.," Journal of Cleaner Production, vol. 244, p. 118655. 10.1016/j.jclepro.2019.118655
[11] B. Zendehdel Nobari, A. Azar, M. Kazerooni and P. Yang, "Revisiting enterprise resource planning (ERP) risk factors over the past two decades: defining parameters and providing comprehensive classification," International Journal of Information Technology, pp. 1-16, 2020. 10.1007/s41870-020-00502-z
[12] B. Zendehdel Nobari, A. Azar, M. H. Rahmati, M. H., M. Kazerooni and A. R. Ghasemi, "Identifying National effective parameters in ERP Implementation Risk Factors in Iran by Multi Grounded Approach.," Public Management Researches, vol. 11, no. 41, pp. 5-28, 2018. 10.22111/jmr.2018.4376
[13] R. K. Behera and S. K. Dhal, (2020), "A meta-analysis of impact of ERP implementation," in In Advances in Data Science and Management: Proceedings of ICDSM 2019, Springer Singapore, 10.1007/978-981-15-0978-0_12
[14] E. Coşkun, B. Gezici, M. Aydos and A. K. Tarhan, (2022), "ERP failure: A systematic mapping of the literature," Data & Knowledge Engineering, vol. 142, p. 102090, 10.1016/j.datak.2022.102090.
[15] M. Taghipour, M. Shabrang, M. H. Habibi and N. Shamami, (2020), "Assessment and Analysis of Risk Associated with the Implementation of Enterprise Resource Planning (ERP) Project Using FMEA Technique.," Management, vol. 3, no. 1, pp. 29-46, 10.31058/j.mana.2020.32002.
[16] N. Hasan, S. J. Miah, Y. Bao, Y. and M. R. Hoque, (2019), "Factors affecting post-implementation success of enterprise resource planning systems: a perspective of business process performance.," Enterprise Information Systems, vol. 13, no. 9, pp. 1217-1244, 10.1080/17517575.2019.1612099.
[17] J. Gavidia , . I. Junglas and C. Chou , (2023), "An integrated model of ERP success: the critical role of task-context alignment.," Enterprise Information Systems, vol. 17, no. 1, p. 1931460, 10.1080/17517575.2021.1931460.
[18] N. Mehta, S. Chauhan and I. Kaur, (2022), "Extending the story of IS success: a meta-analytic investigation of contingency factors at individual and organisational levels.," European Journal of Information Systems, vol. 31, no. 5, pp. 617-640, 10.1080/0960085X.2021.1907233.
[19] W. H. DeLone and E. R. McLean, (2003), "The DeLone and McLean model of information systems success: a ten-year update," Journal of management information systems, vol. 19, no. 4, pp. 9-30, 10.1080/07421222.2003.11045748.
[20] M. Mkhonto and T. Zuva, (2023) "A Critical Review of Success Models for Measuring Information System.," in In Computer Science On-line Conference. , 10.1007/978-3-031-35317-8_35.
[21] U. Jayawickrama, S. Liu and M. H. Smith, (2016), "Empirical evidence of an integrative knowledge competence framework for ERP systems implementation in UK industries.," Computers in Industry, vol. 82, pp. 205-223., 10.1016/j.compind.2016.07.005.
[22] R. O. Ahmed and D. K. Mahalik, (2021), "Measuring ERP System Success: Success Indicators and Structural Equation Modelling Approach," Turkish Journal of Computer and Mathematics Education, vol. 12, no. 3, pp. 3736-3746.
[23] P. Ifinedo, B. Rapp, A. Ifinedo and K. Sundberg, (2010), "Relationships among ERP post-implementation success constructs: An analysis at the organizational level," Computers in Human Behavior, vol. 26, p. 1136–1148, 10.1016/j.chb.2010.03.020.
[24] A. Duval, E. Fontela and A. Gabus, (1974), DEMATEL report.Cross-impact: A handbook on concepts and applications., Batelle Geneva Research Center.
[25] D. Bandil, V. Agrawal and R. P. Mohanty, (2023), "Assessing the kid's behaviour with factors of social media advertising: DEMATEL application.," Journal of Advances in Management Research., 10.1108/JAMR-07-2022-0130 .
[26] M. Dalvi-Esfahani, A. Niknafs, D. Kuss, M. Nilashi and S. Afrough, (2019), "Social media addiction: Applying the DEMATEL approach.," Telematics and Informatics, vol. 43, p. 101250, 10.1016/j.tele.2019.101250.
[27] I. Braga, F. Ferreira, J. Ferreira, R. Correia, L. Pereira and P. Falcão, (2021), "A DEMATEL analysis of smart city determinants," Technology in Society, vol. 66, p. 101687, 10.1016/j.techsoc.2021.101687.
[28] S. Si, X. You, H. Liu and P. Zhang, (2018), "DEMATEL technique: A systematic review of the state-of-the-art literature on methodologies and applications," Mathematical Problems in Engineering, pp. 1-33, 10.1155/2018/3696457.
[29] P. Drumond, I. P. de Araújo Costa, M. Â. L. Moreira, M. dos Santos, C. F. Gomes and S. M. do Nascimento Maêda, (2022), "Strategy study to prioritize marketing criteria: an approach in the light of the DEMATEL method," Procedia Computer Science, vol. 199, pp. 448-455., 10.1016/j.procs.2022.01.054.
[30] S. M. Lin, (2011), "Marketing mix (7P) and performance assessment of western fast food industry in Taiwan: An application by associating DEMATEL and ANP," African Journal of Business Management, vol. 5, no. 26, pp. 10634-10644, 10.5897/AJBM11.894.
[31] A. Mentes, H. Akyildiz and I. H. Helvacioglu, (2014), "A grey based DEMATEL technique for risk assessment of cargo ships," in In Proceedings of the 2nd International Conference on Maritime Technology, ICMT .
[32] S. Seker and E. K. Zavadskas, (2017), "Application of fuzzy DEMATEL method for analyzing occupational risks on construction sites.," Sustainability, vol. 9, no. 11, p. 2083, 10.3390/su9112083.
[33] S. Seker, F. Recal and H. Basligil, (2017), "A combined DEMATEL and grey system theory approach for analyzing occupational risks: A case study in Turkish shipbuilding industry. Human and Ecological Risk Assessment," Human and Ecological Risk Assessment: An International Journal, vol. 23, no. 6, pp. 1340-1372, 10.1080/10807039.2017.1308815.
[34] Y. Li, K. Zhao and F. Zhang, (2023), "Identification of key influencing factors to Chinese coal power enterprises transition in the context of carbon neutrality: A modified fuzzy DEMATEL approach," Energy, vol. 263, p. 125427, 10.1016/j.energy.2022.125427.
[35] M. Yadegari and M. Tarokh, (2022), "Using fuzzy DEMATEL technique to ranking knowledge management strategies.," Iranian Journal of Information Processing and Management, vol. 32, no. 3, pp. 761-788, 10.35050/JIPM010.2017.037.
[36] H. Li, W. Wang, L. Fan, Q. Li and X. Chen, (2020), "A novel hybrid MCDM model for machine tool selection using fuzzy DEMATEL, entropy weighting and later defuzzification VIKOR," Applied Soft Computing, vol. 91, p. 106207, 10.1016/j.asoc.2020.106207.
[37] S. Singh, S. Singh and S. C. Misra, (2023), "Post-implementation challenges of ERP system in pharmaceutical companies.," International Journal of Quality & Reliability Management, vol. 40, no. 4, pp. 889-921, 10.1108/IJQRM-10-2020-0333.
[38] C. Gayathri, V. Kamala, M. S. Gajanand and S. Yamin, (2022), "Analysis of operational and financial performance of ports: an integrated fuzzy DEMATEL-TOPSIS approach.," Benchmarking: An International Journal, vol. 29, no. 3, pp. 1046-1066, 10.1108/BIJ-03-2020-0123.
[39] M. Khanzadi, F. Nasirzadeh and M. S. Dashti, (2018), "Fuzzy cognitive map approach to analyze causes of change orders in construction projects," Journal of Construction Engineering and Management, vol. 144, no. 2, p. 04017111, 10.1061/(ASCE)CO.1943-7862.0001430.
[40] M. Landry, J. Malouin and M. Oral, (1983), "Model validation in operations research," European Journal of operational research, vol. 14, no. 3, pp. 207-220, 10.1016/0377-2217(83)90257-6.
[41] M. Pidd, (2010), "Why modelling and model use matter?," Journal of the operational Research Society, vol. 61, no. 1, pp. 14-24,. doi.org/10.1057/jors.2009.141.
[42] C. Lopez and J. L. Salmeron, (2012), "Dynamic risks modelling in ERP maintenance projects with FCM," Information Sciences, vol. 256, pp. 25-45, 2014. 10.1016/j.ins.05.026.
[43] F. Nasirzadeh, M. Rostamnezhad, D. G. Carmichael, A. Khosravi and B. Aisbett, (2022), "Labour productivity in Australian building construction projects: a roadmap for improvement," International journal of construction management, vol. 22, no. 11, pp. 2079-2088,. 10.1080/15623599.2020.1765286.
[44] T. E. Erkan, U. Baç and B. D. Rouyendegh, (2012), "Effects of BPR on ERP Implementation Success and Supply Chain Performance," in In 3rd International Conference on Information Management and Evaluation, Ankara/Turkey,.
[45] M. Qureshi, (2022), "Evaluating Enterprise Resource Planning (ERP) Implementation for Sustainable Supply Chain Management.," Sustainability, vol. 14, no. 22, p. 14779,. 10.3390/su142214779.
[46] S. Patage, K. Mhetre, A. Shelar and S. Yadav, (2020) "Study on Business Process Re-engineering (BPR) and its Importance in ERP Implementation.," Mathematical Statistician and Engineering Applications, vol. 69, no. 1, pp. 603-609,. 10.17762/msea.v69i1.2635.
[47] W. H. &. M. E. R. DeLone, (2002) "Information systems success revisited," in Proceedings of the 35th Annual Hawaii International Conference on System Sciences. IEEE,. 10.1109/HICSS.2002.994345.