A roadmap to an ES benefits realization plan: Realizing benefits with an Enterprise System implementation

Jong, Amanda de (2009) A roadmap to an ES benefits realization plan: Realizing benefits with an Enterprise System implementation.

Abstract:An enterprise system (ES) can provide many benefits for an organization, but because of the different issues during an ES implementation, the target is often changed to get the system operational instead of realizing the (initial determined) goals and benefits. Almost 70% of all ES implementations fail in delivering the desired benefits. Goal of this research is therefore to improve the benefits realization during and after ES implementations. Most (ES) implementation researches and methodologies are concentrated on realizing a working ES, but lack in focus on benefits realization. This research addresses this gap by presenting guidelines by means of a roadmap, for the development of an ES benefits realization plan. Recommendations This research presents a roadmap for developing an ES benefits realization plan (ES BRP). This plan can be used during and after an ES implementation by the line organization in order to realize benefits from their ES. The roadmap to an ES benefits realization plan exists of seven steps; The first four steps serve as input for the ES BRP, which is brought together in step five. The last two steps ensure that the plan can be executed and take critical factors into account to increase the chances on ES implementation success so benefits can be obtained from the ES. This is not a linear process, because the information will become more detailed and clearer during the process. For example, during the gap analysis (step 4) it will become more clear which benefits can be realized or not, which is considered in the previous step. This means that (if necessary) a step back can be taken to improve the ES BRP. An ES BRP should be developed in the initiating and planning phase of an ES implementation project. The ES BRP can then be used during the implementation to enable the realization of benefits after the go-live stage. Nevertheless, the ES BRP has to be monitored during the whole ES implementation and changed when necessary, e.g. when it becomes more obvious which benefits can and cannot be realized and in which way. Besides, the ES BRP can be used after the implementation as an evaluation tool to reveal which of the desired benefits are, or still need to be realized. Argumentation The steps of the roadmap to an ES BRP are based on practices for the first two phases of the benefits management process, identify and structure benefits and benefits realization planning (Ward, Daniel & Peppard, 2006; Ashurst 2008). This is a process for general IT-projects, but made ES specific by applying ES specific models like ES implementation drivers, ES benefits classification framework and critical factors for ES implementations. Although it is assumed that more benefits can be realized when the complete benefits management process is executed during an ES lifecycle, the main focus of this roadmap is on planning the ES benefits. From the case study and literature review is concluded that in order to realize benefits from an ES, benefits management and critical factors for ES implementation success have to be considered. When critical factors for an ES implementation are taken into account, this increases the chance on ES implementation success; a working ES. This is a pre-condition to realize benefits from an ES. When benefits management is applied during an ES implementation, there is more attention focused on benefits and improves the realization of benefits. In this research is concluded that most critical factors are taken into account in the practices of benefits management, especially in the planning phase of the benefit management process. Thus by applying the roadmap for the ES BRP, most critical factors are considered and the benefits realization in ES implementations can be improved. Limitations and further research This research focuses only on the planning phase of the ES benefit management process. It is assumed that more benefits can be realized if the complete ES benefit management process is executed during the ES lifecycle, in example after an ES implementation and initial benefit realization, more benefits are exploited. Therefore, it is suggested that the ES benefit management process should be further developed. This research also lists 21 critical factors for ES implementation success, and although this and other researches point out that these are of importance with benefits realization, it is still uncertain what their exact relationship is, and if all critical factors are evenly important for all benefits to be realized. For further research is suggested to give a critical review on the relationship between benefits and critical factors.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Industrial Engineering and Management MSc (60029)
Link to this item:http://purl.utwente.nl/essays/60690
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