ERP system implementation costs and selection factors of an implementation approach

  • Authors:

  • Bjorn Johansson;Frantisek Sudzina;Mike Newman

  • Affiliations:

  • Department of Informatics, School of Economics and Management, Lund University, Ole Romers vag 6, SE-/223 63 Lund, Sweden.;Center for Applied ICT, Copenhagen Business School, Howitzvej 60, DK-/2000 Frederiksberg, Denmark.;Norwegian School of Economics and Business Administration, Bergen, Norway/ Manchester Accounting and Finance Group, University of Manchester, M29, Crawford House, Manchester M13 9PL, UK

  • Venue:
  • International Journal of Business Information Systems
  • Year:
  • 2011

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Abstract

Different approaches on implementation of enterprise resource planning (ERPs) systems exist. In this article, we investigate relationship between factors influencing selection of implementation approach and companies' ability to stay within budget when implementing ERPs. The question is: do factors, which influence the implementation approach in an ERP project, cause also an increase of the project cost in a European context? Our survey was conducted in Denmark, Slovakia and Slovenia and focused on this issue. Our main findings are that: 1) the number of implemented modules influences selection of an implementation approach; 2) companies with information strategies are more likely to stay within budget regarding ERP systems implementation. However, we also found that: 3) implementation approach does not significantly influence ability to stay within budget; 4) a clear relationship between factors influencing selection of implementation approach and ability to stay within budget for ERP implementation could not be found.