Share This Article:

Research on Economic Benefit from Y Software Company’s ERP Users

Full-Text HTML Download Download as PDF (Size:149KB) PP. 161-167
DOI: 10.4236/jssm.2009.23019    4,299 Downloads   7,875 Views   Citations

ABSTRACT

ERP (Enterprise Resources Planning) users often refuse to pay off the balance of payment because they think the software vendors fail to complete the targets, for which the true reason is that the boundaries or standards on the effectiveness and economic benefits of ERP is not clear. So it is necessary and important to effectively measure the benefits brought by ERP to the users, which is favorable for both users and software vendors. This paper adopts an empirical research method and analyzes on the information of ERP users of a Chinese well-known software company from Shanghai and Shenzhen Stock Exchange. The study finds that the corporations who introduce the ERP system are generally better in performance than non-ERP users. The study also finds that the total assets of the ERP users in tested group are increased and the asset-liability ration is stable after introducing ERP and, meanwhile, the total assets of the non-ERP users in controlled group are not increased and the assetliability ration is decreased. It might show that ERP can help users maintain and strengthen their business strength. However, the study finds that both of inventory turnover and account payable turnover of the ERP users have been slowed down instead of speeding up in the first two years after introducing ERP. The decrease of inventory turnover represents that ERP system might need a long time for running-in. The reasons for account payable turnover decreasing might be two. One is that ERP is in the stage of running-in. The other probably is that ERP helps the users become stronger so that they can defer the payments to vendors in order to making use of more non-cost funds.

Conflicts of Interest

The authors declare no conflicts of interest.

Cite this paper

S. CHEN and L. LIU, "Research on Economic Benefit from Y Software Company’s ERP Users," Journal of Service Science and Management, Vol. 2 No. 3, 2009, pp. 161-167. doi: 10.4236/jssm.2009.23019.

References

[1] M. L. Markus, C. Tanis, and F. P. Van, “Multi-site ERP implementations,” Communications of the ACM, Vol. 43, No. 4, pp. 42-46, 2000.
[2] J. E. Hunton, B. Lippincott, and J. L. Reck, “Enterprise resource planning ERP systems: Comparing firm performance of adopters and non-adopters,” International Journal of Accounting Information Systems, Vol. 4, No. 3, pp. 165-184, 2003.
[3] A. I. Nicolaou, T. D. Stratopoulos, and B. Dehning, “Financial analysis of potential benefits from ERP systems adoption,” Journal of Business and Information Technology, Vol. 2, No. 1, pp. 40-50, 2003.
[4] L. Y. Wang and J. D. Zhang, “Research on the performance of listed companies with exposure on implementation of ERP-evidence from listed companies 2003,” Management World, Vol. 15, No. 3, pp. 116-121, 2007.
[5] W. H. DeLone and E. R. McLean, “Information system success: The quest for the dependent variable,” Information Systems Research, Vol. 3, No. 1, pp. 60-95, 1992.
[6] W. H. DeLone and E. R. McLean, “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, 2003.
[7] J. H. Huang and C. Yang, “Measuring satisfaction with business-to-employee systems,” Computer in Human Behavior, No. 1, pp. 17-35, 2004.
[8] F. Calisir and F. Calisir, “The relation of interface usability characteristics, perceived usefulness, and perceived ease of use to end-user satisfaction with enterprise resource planning ERP system,” Computer in Human Behavior, Vol. 20, No. 4, pp. 505-515, 2004.
[9] J. H. Wu and Y. M. Wang, “Measuring ERP success: The key-users’ viewpoint of the ERP to produce a viable IS in the organization,” Computers in Human Behavior, No. 6, pp. 1582-1596, 2007.
[10] Z. P. Matolcsy, P. Booth, and B. Wieder, “Economic benefits of enterprise resource planning systems: Some em-pirical evidence,” Accounting and Finance, Vol. 45, No. 3, pp. 439-456, 2005.
[11] R. Poston and S. Grabski, “Financial impacts of enter-prise resource planning implementations,” International Journal of Accounting Information Systems, Vol. 2, pp. 271-294, 2001.
[12] B. Dehning and V. J. Richardson, “Returns on investments in information technology: A research synthesis,” Journal of Information Systems, No. 16, pp. 7-30, 2002.
[13] M. E. Porter, “Competitive advantage,” Free Press, New York/London, 1985.
[14] T. H. Davenport, J. G. Harris, and S. Cantrell, “The return of enterprise solutions: The director’s cut,” Accenture Institute for High Performance Business, 2002.
[15] S. C. Gardiner, J. B. Hanna, and M. S. LaTour, “ERP and the reengineering of industrial marketing processes: A prescriptive overview for the new-age marketing manager,” Industrial Marketing Management, No. 31, pp. 357 -336, 2002.
[16] S. S. Shang and P. B. Seddon, “Comprehensive framework for classifying the benefits of ERP system,” in Proceedings of the Americas Conference on Information Systems, Long Beach California, pp. 1005-1014, 2000.

  
comments powered by Disqus

Copyright © 2018 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.