Critical successfactors forintegration

609

International Journal of Operations ampProduction Management

Vol 21 No 56 2001 pp 609-629 MCB University Press 0144-3577

Critical success factors forintegration of CADCAM

systems with ERP systemsFawzy Soliman and Stewart Clegg

University of Technology Sydney Australia and

Tarek TantoushUniversity of Dundee Scotland UK

Keywords E-commerce Knowledge management CADCAM Enterprise resource planning

Abstract Current advances in information technology and in particular computer-aideddesigncomputer-aided manufacturing (CADCAM) and enterprise resources planning (ERP)systems have led organisations to undertake significant investments in these systems Nextgeneration manufacturers require both systems to maintain or gain a competitive advantagereduce risks and improve productivity and viability In addition recent attention to theimplementation of CADCAM systems highlights their important role in automating complexdesign and next generation manufacturing processes In the next millennium moremanufacturers are likely to implement CADCAM and ERP systems and hence issues in theintegration of CADCAM with ERP systems must become a major concern Accordingly thispaper will explore the problems of integration of CADCAM systems with ERP systems studyhow the severity of these problems relates to CADCAM integration success propose a set ofcritical success factors (CSF) for the integration of CADCAM with ERP systems suggesthypotheses to study the relevance of these CSF for successful integration of CADCAM with ERPsystems In addition the paper also demonstrates the importance of successful integration ofCADCAM systems with other applications for next generation manufacturers These findingssuggest that integration of CADCAM systems with ERP systems is complex involving manyfactors

IntroductionIn 1985 Porter and Millar reported that organisations realise that traditionalapproaches to achieving and maintaining competitive advantage are no longersufficient One of the most important elements in competitive advantage theysuggested was information Recently Gustin et al (1994) recognised that thelink between information and competitive advantage is critical to achievingintegration They viewed information technology (IT) as resources to be usedby the firm in gaining competitive advantage in the marketplace In a similarvein Garcia (1997) and Phillips (1997) suggest that organisations need toconsider information and knowledge more generally as key business assetsand that enterprises should expend considerable effort in capturing theircollective knowledge Accordingly next generation manufacturers need tounderstand the issues related to the application of IT for gaining competitiveadvantage

It is widely accepted that heightened attention to the employment of IT inkey business functions is due in large part to the total quality management(TQM) and business process re-engineering (BPR) movements (Soliman 1996)

The current issue and full text archive of this journal is available at

httpwwwemerald-librarycomft

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Soliman and Youssef (1998) note that IT in particular enterprise resourcesplanning (ERP) systems is central to the success of the BPR method ERPsystems are systems that tie the organisationrsquos functional units and systemsand databases together The main objectives of this integration are of coursesharing information avoiding duplication of work reducing wasted effort andeliminating non-value added activities (Duff 1996 Mitskavich 1996)According to Fawcett (1992) ` integration of logistics into the design andmanagement of global manufacturing networks is critical to the success of aglobal manufacturing strategy Skilful management of logistics should beessential to time-based competitionrsquorsquo Soliman and Youssef (1998) identifiedthese as areas where enterprise-wide information systems could significantlysupport the strategic objectives of modern organisations and in particularnext generation manufacturers

Soliman (1998) observed that the manufacturing of products is usually madeup of a series of processes that contribute to the creation and the delivery ofthese products to customers One of these processes which is central to anymanufacturing operation is engineering design (ED) All down-streamproduction and procurement processes depend on the outcome of the EDprocess An efficient design process is likely to enhance the performance ofproduction and ultimately manufacturing processes DE is just one of the manyprocesses used in manufacturing and is therefore a critical part of theopportunity to delivery (OtoD) chain A typical OtoD chain would also includesales procurement production inspection and dispatch processes

Figure 1 illustrates a typical manufacturing process in an OtoD chain

Implementation of CADCAM systemsEffective implementation of CADCAM systems offers manufacturers anumber of benefits such as cutting design costs reducing cycle time reducingmatching time and improving information flow For firms that have alreadyimplemented CADCAM systems the rise in their productivity will alsocoincide with a marked decrease in design and production costs thus freeingvaluable staff time so that they can concentrate on pro-actively managingcustomersrsquo demands and value added activities There are two implementationscenarios to be considered

(1) Full scale implementation In this scenario the focus during theimplementation is on improving the business This approach is suitablewhen

y

Figure 1A typical order todelivery chain in amanufacturing setting

Critical successfactors forintegration

611

improvements in business processes are required

customization of CADCAM processes are necessary

different alternative strategies need to be evaluated

high level of integration between CADCAM and ERP system isrequired and

there is multiple site implementation

(2) Short-cut implementation In this scenario the focus during theimplementation is on technical migration with enhanced businessimprovements introduced at a later stage This approach is suitablewhen

improvements in business processes are not required immediately

the organisation has a firm decision-making process

organisation operating procedures are driven from its strategicplans and

there is one single site implementation

The success of a CADCAM implementation depends on how quickly thebenefits can be reaped from the system This necessitates rapidimplementation leading to shortened return on investment (ROI) periods (Clarkand Soliman 1997a b)

Traditional approaches to implementation typically carry out a BPRexercise and define a ` to bersquorsquo model before the CADCAM systemimplementation Although such a scenario has a theoretical appeal formanagement in reality it usually leads to mismatches between the proposedmodel and the CADCAM functionality The consequences of this can includeextension of the implementation time frames higher costs and loss of userconfidence

It is envisaged that next generation manufacturers would implementCADCAM systems in stages The usual starting point is with the missionstatement from which one derives the implementation plan in line with thestrategic plan of the next generation manufacturer This is necessary toavoid mismatch and to ensure that the investment in CADCAM systems isaligned with the business direction of the organisation (Clark and Soliman1999) According to Soliman (1997) in the 1990s and beyond IT and BPRwill be used in conjunction with each other and will emerge as importanttools to give next generation manufacturers a leading edge By their verydefinition most CADCAM systems reside in the servers of local areanetworks (LAN) Therefore they have their databases and produce outputusually in the form of drawings and bills of materials (BoM) for use byproduction and procurement departments Hence there is no shortage ofdata to use in achieving alignment

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CADCAM integration with ERP systemsOrganisations using ERP systems have two significant choices either of whichthey may follow

(1) Re-enter BoM and other relevant information into the ERP system forthe purpose of performing material requirement planning (MRP)calculations and for ordering materials from suppliers

(2) Integrate the CADCAM system so that the information it generates isautomatically passed on to the MRP procurement and other modules inthe ERP system without a great deal of effort

The integration between CADCAM systems and ERP systems cannot producemaximum results unless the data collection (interchange) is appropriate for thetask Traditional systems rely on a hierarchical top-down model that conformsto the host hardware-processing environment with extensive data interchangenetworks submitting transactions over a dedicated network In these systemstransaction verification must be performed at the host level leading to constantdisruptions and delays for users Therefore data interchange becomes aroadblock to effective CADERP integration With continual interruptions tothe host process the modern ERP system can be rendered ineffective Theseproblems and the inherent complexity of integration have led a movement ofhardware-driven improvement in data interchange systems (DIS) The result isthat modern DIS in next generation manufacturer will incorporate clientserverarchitecture extensive connectivity options multi-platform computabilitiesand modular construction These DIS must be deployed in accordance with theconnectivity requirement of both the CADCAM and ERP systems It should beremembered that the CADCAM connectivity requirement is normally for LANconnectivity while the ERP system requires wide area networks (WAN)connectivity In general this is because CADCAM systems run from LANplatforms while ERP systems run from WAN platforms

Figure 2 illustrates the interface between ERP systems and CADCAMsystems in next generation manufacturers The interface is accomplishedthrough DIS

From the above discussion it should be evident that the implementationissues involved in integrating CADCAM systems with ERP systems poseunique problems because of the following three decisive factors

(1) Databases The same type of database architecture is required at allplatforms

(2) Networks The existing network capabilities must be such that itsupports the large volume of data exchange between CADCAM andERP system through DIS

(3) Maintenance Consistency and validations of data could put additionalburden on maintenance

Critical successfactors forintegration

613

Critical success factors (CSF) for CADCAM integrationRockart (1979) originated the CSF approach and has popularised it throughhelping executives identify their information needs Rockartrsquos CSF approachwas based on that of D Ronald Daniel apparently the person first to discussthe concept of ` success factorsrsquorsquo in the management literature (Rockart 1979)Rockart defined CSF as the limited number of areas in which results if they aresatisfactory will ensure successful competitive performance for theorganisation They are the few key areas where ` things must go rightrsquorsquo for thebusiness to ` flourishrsquorsquo He argued that managers need appropriate informationon their management functions and that performance in each area should bemeasured continually It follows that such information should be madeavailable by organizations as necessary for enhanced managersrsquo performance(Soliman and Soar 1997)

Davis (1979 1980) criticised the use of the CSF approach because it relied onmanagersrsquo responses which may be incorrect incomplete or insufficient andare constrained by human behaviour According to Davis these constraints are` bounded rationally human ability to evaluate probabilities and to identifycausality and the biasing effect of availability of datarsquorsquo Thus in his view theCSF method will elicit the information that executives feel they need not theinformation that executives actually do need In other words managers mightunintentionally invent overlook or fail to mention CSF Davis (1980)recommended further research on the use of explicit models and implicitmodels to elicit information requirements Several researchers have responded

Figure 2Integration of CAD

CAM with ERP systemin a next generation

manufacturing setting

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to Davisrsquo comments and suggested ways to minimise these weaknesses(Munro 1983 Boynton and Zmud 1984)

Munro and Wheeler (1980) presented a general approach for identifying CSFwithin the context of corporate planning They analysed the process ofdetermining information requirements for organisational control purposes byinterviewing senior middle level managers in a training seminar Thoseprocesses include ` understand business unit objectives identify CSF andidentify the performance measures and standards for each CSF identify datarequired to measure performance and identify decisions and informationrequired implementing the planrsquorsquo From these processes they concluded that theCSF method and the performance measures and standards for each CSF canhelp management information systems by providing required managementinformation They also indicated that identifying CSF within the context oforganisation planning processes could overcome the potential difficulties notedby Davis

In response to Davisrsquos comments Munro (1983) compared the resultsobtained from Rockartrsquos CSF study (1982) and Martinrsquos CSF study (1982ab)Munro also examined both authorsrsquo articles in detail and compared the articlesrsquocitations and descriptions as well as their interviews with senior ITISmanagers He commented that the results from these two studies wereinterrelated and quite similar He also concluded that the results from CSFmethods are reasonable and that the CSF approach is a reliable techniquewhile acknowledging that the CSF approach could not be completely free fromthe bias of an interviewerrsquos interests and perceptions unless the interviewerswere skilful (Munro 1983)

In their 1984 study Boynton and Zmud concluded that the weaknessesidentified by Davies that may occur when using the CSF method can be largelyovercome through careful application of the technique They conducted twocase studies one is a study of a financial services firm while the other was astudy of a state university From their experience there are guidelines foreffective application of CSF

CSF are an excellent tool for information resource planning The CSFmethod seems particularly useful for organisations considering a moreaggressive IT posture

The use of a prototype is recommended as a means of productdevelopment

The individual managing the CSF effort should have a throughunderstanding of the organisation or should be literate in theorganisationrsquos principal area of business

It is useful to identify and cultivate a senior-level manager to championthe project

Their study suggests that organisations employing the CSF methodappropriately have many strengths The reliability of the CSF method can be

Critical successfactors forintegration

615

achieved when there is a structured design process using CADCAM systemsand that in ITIS planning Davisrsquo criticisms can be overcome by interviewingmanagers across a diagonal slice of the organisation

Benbasat (1984) suggested that the CSF approach could be considered in thesame classification as information based on a management by objectiveapproach He indicated that the CSF approach could be a system analysis toolfor eliciting executiversquos information requirements at the management controllevel CSF could be a means of supporting system planning and could grantsuccessful competitive performance for the organisation Since he did notexplicitly criticise the CSF method his support of the CSF approach iswarranted In addition Soliman and Clark (1996) concluded that the systemrsquosvalue is an important CSF for managing implementation of knowledge-basedsystems

Zahedi (1987) suggested and developed reliability as the measure ofinformation system success based on CSF He attempted to provide atheoretical framework for measuring information system success based onCSF His research used Rockartrsquos (1982) data to identify and build a hierarchicalconfiguration of the observed CSF of the MIS The study also used the datafrom Martinrsquos (1982ab) studies to verify the construction of the ITISconfiguration derived from Rockartrsquos data Zahedirsquos verification indicated thatthe developed CSF configuration could be applied to other sample data withsome minor modification Based on the derived CSF configuration Zahedigenerated a reliability measure for information systems defined as ` theprobability that the system works successfully in achieving its objectivesunder a given set of environmental conditionsrsquorsquo Zahedi also presentednumerical examples and demonstrated how reliability measures can be utilisedin evaluating IS projects in costbenefit analysis Based on the strengths of theCSF research approach mentioned above and methods for dealing with criticalcomments there appears to be some confidence and support for obtaining CSFfor integration of CADCAM systems with ERP systems

During the past decade more extensive studies have attempted to overcomethe weakness attributed to CSF and have broadened the concept to severaldifferent areas These applications could utilise CSF for

strategic guidelines at board of directorsrsquo level (Ferguson and Dickinson1982)

information requirements and corporate planning (Munro and Wheeler1980 Boynton and Zmud 1984)

management decision process (Rockart and Crescenzi 1984)

crises communications (Dilenschneider and Hyde 1985)

ITIS planning (Shank et al 1985)

information satisfaction in the small business environment (Dickinsonet al 1984 DeLone 1988 Montazemi 1988)

financial services (Miller and Doyle 1987) and

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information centres or ITIS organisations performance (Magal and Carr1988 Raghunathan et al 1989 Bergeron et al 1993)

Drawing from these studies we provide a research framework to identifyCSF for the integration of CADCAM systems with ERP systems Theliterature reviewed in this study is based on the idea that successfullymanaged integration of CADCAM systems with ERP systems depends onCADCAM management and the interactions among CADCAM resources(CADCAM staff hardware and application software) and users because` the success of the information system depends on the social structures andinteractions that prevail during and after the development processrsquorsquo(Lyytinen 1987)

We also review the literature related to ITIS managersrsquo perceptions ofimplementation success Several studies have examined the relationshipbetween CSF of IS managers and CSF of ITIS implementation success Theyassert that if a section of a proposed system being considered is very importantto the manager this section usually performs better than others Miller andDoyle (1987) also reported that all the identified performance measures weresignificantly related to the CSF of ITIS managers If this relationship holdstrue the ITIS managersrsquo perceptions of importance could indicate areas criticalfor information system performance

Statement of the problemMuch has been written over the past 20 years on the success of ITimplementation in organisations but nothing has been published on thesuccess of integration of CADCAM and ERP systems It is important toinvestigate if there is any relationship between the use of CADCAMsystems in manufacturing and the performance of manufacturers Amongthe research questions that need to be answered one must include thefollowing

Can CADCAM systems be used as strategic tools to improve thecompetitive position of organisations

Have organisations taken advantage of this potential or have theysquandered the opportunity

Are organisation users happy with the system installed

Is the installed system both safe to use and reliable

To answer these questions we propose to focus on two main performanceindicators namely

(1) Manufacturing costs

(2) Customer satisfaction in terms of quality and delivery time

To date there have not been any published surveys attempting to link theintegration of CADCAM systems with the performance of organisations

Critical successfactors forintegration

617

There are several questions to be answered about CADCAM integration withERP systems in manufacturing organisations In the research that we proposewe will investigate if

manufacturing companies who integrated CADCAM with ERP systemshave reduced their manufacturing costs

companies who integrated CADCAM with ERP systems are more likelyto increase their customersrsquo satisfaction in terms of quality and deliverytime

manufacturing companies who integrated CADCAM with ERP systemsare likely to improve their strategic advantage in terms ofmanufacturing costs and customers satisfaction

Grounded theory investigation (GTI)GTI in management can be extremely valuable (Tantoush 1998) A panel ofmanagement experts assisted in the constructions of the CSF for CADCAMintegration with ERP systems Members of the panel comprised one chiefengineer one engineering director two design engineers one productionmanager one quality control manager and one purchasing manager The chiefengineer takes the role of moderator of the group An effective group moderatorprepares a discussion guide to help ensure that the group covers all CSF ofinterest It is the moderatorrsquos job to make sure that everyone gets a chance tospeak and to ask questions to clarify topics (CSF and CADCAM integrationwith ERP systems) that have been introduced into the discussion Thecombined effort of the group is to achieve cost savings time-savings qualityand efficiency Using the grounded theory approach the group could beexpected to identify CSF for the successful integration of CADCAM with ERPsystems

Research modelThe research model used in this study is based on the CSF study of Rockart(1982) modified according to the studies of Martin (1982ab) DeLone (1988)Miller et al (1987) and Bergeron et al (1993)

Figure 3 shows a diagram summarising the proposed research modelThe variables in this model can be categorised into the following eight areas

that might determine the success of the integration of CADCAM with ERPsystems

(1) CADCAM usersrsquo appreciation of integration

(2) communication between design office and other users

(3) design office services and support functions

(4) management commitment and support

(5) organisational effectiveness

(6) training of CADCAM staff on ERP system

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(7) security of CADCAM interface and

(8) user friendliness of ERP systems

Due to the restricted application of CADCAM a large sample may not bepossible However this study will employ a survey for randomly selectedengineers and engineering managers in CADCAM offices Several empiricalstudies have found a positive relationship between IT success and managersrsquoperceptions The perceptions of engineers and engineering managers will bechosen because of their professional qualifications interest and theirknowledge concerning problems with the system

Significance of this researchThe results of this study may provide a contribution to both academic researchand manufacturing management for CSF studies as well as for the integrationof CADCAM with ERP systems Identifying CSF could help focus futureresearch on questions that have a significant impact on decisions in regard tothe integration of CADCAM with other systems Findings may help extend theexisting knowledge on CADCAM implementation research Based on theexpected findings the risk or dark side of CADCAM integration eg hiddenconversion cost data corruption caused by inconsistencies between ERPdatabases and the server database etc may also be identified in furtherstudies

Managers could be expected to utilise the identified integration CSF to adoptmore successful CADCAM implementation strategies in the future Theexpected CSF could also be used by production managers both as evaluationcriteria for system planning and control and as a facilitator of communicationbetween production departments and their users With better utilisation and

Figure 3The conceptual researchmodel

Critical successfactors forintegration

619

better understanding concerning the integrated CADCAM organisationsmight be better able to achieve cost savings time saving quality and efficiencyin their new systems Thus the benefits of successful integration couldimprove the corporate utilisation of information systems resources and assistin achieving a competitive advantage for organisations (Symon and Clegg1991)

Measuring performance and effectivenessTo evaluate the success of CADCAM integration one should measure systemsperformance and effectiveness Hamilton and Chervany (1981a) report the needfor performance measures for ITIS They claimed that ` Evaluating systemeffectiveness in meaningful terms has been the most difficult aspect of the ITISimplementation processrsquorsquo In their study Hamilton and Chervany (1981b)described and compared the effects of evaluator viewpoints on systemeffectiveness in terms of resources-oriented perspectives (or efficiency) andinfluences-oriented perspectives (or effectiveness) Some of their evaluationitems (for example MIS personnel productivity computer performance serviceand usersrsquo attitude) are identical to the components of CSF from Rockart (1982)Martin (1982ab) and later CSF studies Some of Hamilton and Chervanyrsquosevaluation items (productivity service usersrsquo attitude and computerperformance) will be included in the research instrument Zmud (1979)suggested that organisational factors ITIS usage top managementrsquos supportdecisions performance personal and interpersonal characteristics usersrsquoattitude ITIS staff characteristics and ITIS policies influence the success ofsystem implementation (Symon and Clegg 1991) Zmud suggests also thatresearch should examine system usage user satisfaction and user performancefor ITIS success All these factors will be included in the research instrument

Ginzberg (1981) attempted to track and manipulate the controllablevariables by developing tools for system designers and users He suggestedthat two management approaches can increase the effectiveness of the systemdevelopment process One approach is to identify those variables that are bothespecially important to the success of system development and controllable bythe user or the system designer The other approach is to manage thedevelopment process of the system designer and user by utilising developmenttools and procedures Ginzberg conducted a field study in a large US bank andconcluded ` the degree of realism of userrsquos pre-implementation expectationswas positively correlated with a range of project success measures bothattitudinal and behaviouralrsquorsquo

According to Rockart and Flanneryrsquos (1983) definition of end-users an ITISmanager could serve as a system designer and user as well FollowingGinzbergrsquos suggestion this study will also attempt to examine the ITISmanagerrsquos view of the importance of ITIS implementation success Thusengineers engineering managers and ITIS managers will be chosen as theresearch subject for this study (Tantoush 1998)

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Yaverbaum (1988) applied the ` job diagnostic surveyrsquorsquo to 84 end-users toinvestigate motivation and satisfaction in a computer environmentYaverbaumrsquos results indicate that task factors organisational factors(management support management activity and training program) and userfactors (cognitive differences users characteristics attitude age past trainingeducation job experience and user participation) affecting user satisfaction arecrucial to the success of information systems Since her results support Zmudrsquos(1979) study this study will also include organisational factors task factorsand user factors in the research instrument

MethodologyYin (1994) suggested that a case study approach is an appropriate choice ofresearch method for this type of problem This is particularly true when

the researcher has little control over the environment

the events under investigation are contemporary and

the context of the research is important

The researchers do not have any control over the CADCAM and ERPenvironments that organisations adopt In addition since the CADCAM andERP systems are at present widely used in industry the topic of research iscontemporary Furthermore there is no published research on this topic andthe outcome is likely to affect the investment and productivity of these systemsAccordingly a case study approach is suitable for this analysis

Hypotheses for this study can be grouped according to the expected CSF ofCADCAM integration with ERP Systems The hypotheses presented below arenumbered for identification on the basis of grounded theory approach

Statement of hypothesesThe development of hypotheses based on the expected CSF of the methods andprocedures used to assess the degree of success of CADCAM integration withERP systems

CADCAM usersrsquo appreciation of integrationA study by Ives and Olson (1984) reviewed 22 ITIS-related studies Only eightstudies claimed a positive relationship between user involvement and systemsuccess Seven studies claimed a negative relationship while the other sevenstudies claimed mixed results Of the seven studies that investigated therelationship between user involvement and userrsquos attitude toward the systemonly one study reported significant results with user involvement and userrsquosattitude Other studies by Baroudi et al (1986) Tait and Vessey (1988) andBarki and Hartwick (1994) point to a relationship between usersrsquo involvementand the success of integration of CADCAM systems with ERP systemsAccordingly this research proposes to examine the relationship of these two

Critical successfactors forintegration

621

variables (user involvement and usersrsquo attitude) and the success of CADCAMintegration with ERP systems

H1 User appreciation (user involvement and usersrsquo attitude) is positivelyrelated to the success of CADCAM integration with ERP systems

Communication between design office and other usersIn the case of integration of CADCAM with an ERP system the design officecould improve communication and assist users in communication with thedesign office Thus users could be less anxious and their attitude towardimplementation more favourable (Rainer et al 1992) In the environment ofCADCAM communication with users is more crucial and complex than in theclassical environment of computing Therefore this study stresses theimportance of communication between users and the design office andhypothesises that there will be a positive relationship of CADCAM integrationwith ERP system success

H2 Communication between users and the design office is positivelyrelated to the success of CADCAM integration with an ERP system

Design office services and support functionsThe basic function of the design office is to manage design and CADCAMresources and to co-ordinate and facilitate CADCAM functioning for users Aneffective design office provides drawings and Bills of materials (BoM) with acompetent design staff supporting production Services such as technicalsupport trouble shooting consulting and training are critical design officefunctions In their study Magal and Carr (1988) found that ITIS staffrsquosunderstanding of the usersrsquo business and problems plus standardisedhardware and software to be important factors for the quality of ITIS supportservices This study proposes a positive relationship between the success ofCADCAM integration with an ERP system and the support services of thedesign office

H3 The design office supporting services is positively related to thesuccess of CADCAM integration with an ERP system

Management commitment and supportThe success or failure of any business effort is often determined by the amountof top management support (Rockart 1982 Ives and Olson 1984) Engineeringand production managers actively participate in the organisationrsquos planningprocess with senior managers and top managers help engineering andproduction management and line management to overcome the problem ofunderstanding top managementrsquos objectives thus facilitating goodcommunications among management levels Engineering and productionmanagers who participate in the planning process also tend to promotecommunication and a favourable relationship with top management Thussuch managers will more likely perceive the changing business objectives andthus help engineering and production management to achieve the new business

IJOPM2156

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objectives Top management would thus acknowledge the importance of CADCAM integration and generate an appreciation of CADCAM managementissues Top management that is better able to understand the idea or theproblems of CADCAM management during the process of CADCAMintegration will have a better image of the CADCAM integration phenomenon

Ginzberg (1981) suggested that engineering and production managementpropose a strategic plan of CADCAM integration with an ERP system to topand line management including the reasons for the change its importance tothe organisation the impacts likely to result from it and the procedure forevaluating it Such criteria will be important in determining a userrsquos response toan ITIS change from the strategic plan studied and proposed by the ITISmanager Thus under these circumstances top and line management would bemore likely to commit to and support CADCAM objectives and offer co-operation for successful CADCAM integration with an ERP system Thisstudy examines this positive relationship

H4 Management commitment and support are positively related to thesuccess of CADCAM integration with ERP systems

Organisational effectivenessAny management task should be designed to achieve the organisationrsquosobjectives similarly CADCAM integration with ERP system should bedesigned to achieve an organisationrsquos objectives If CADCAM integrationimproves an organisationrsquos effectiveness then integration is more likely to beregarded as a success During such major organisational changes CADCAMsupport may ease the tedious maintenance of drawings BoM andspecifications thus improving the quality of managersrsquo decision making andeasing the management of change This study examines the relationshipbetween the success of CADCAM integration with an ERP system andorganisational effectiveness

H5 Organisational effectiveness is positively related to the success of CADCAM integration with an ERP system

Training of CADCAM staff on ERP systemsHylas et al (1989) indicated that not all systems applications are appropriatefor implementation Selection of the wrong business functional area or thewrong application or lack of adequate training can result in system failure Notonly lack of ITIS implementation experience can cause an ITIS manager tochoose an inappropriate application incompetent ITIS staff may havedifficulty recording or developing software for ITIS implementation while adeficiency of software packages for ITIS implementation can cause rigidityand difficulty for ITIS implementation (Hoffman 1992)

Lucas (1981) suggested that human factors affect the successfulimplementation of a new ITIS more obviously than do organisationalfactors In addition when applications are moving from the mainframe tothe desktop compatibility should be maintained To ensure software

Critical successfactors forintegration

623

compatibility the design office should review syntax ERP softwarefeatures and semantics and external behaviour and provide training to itsusers This study hypothesises a positive relationship between trainingCADCAM staff on ERP system and the success of CADCAM integrationwith an ERP system

H6 Training CADCAM staff on ERP systems is positively related to thesuccess of CADCAM integration with ERP systems

Security of CADCAM interfaceApplications should be acquired to solve business problems not make problemsData are interchanged between CADCAM system and other applications such asan ERP system through the interface Many older applications often employunique antiquated and somewhat incompatible software coupled withunsophisticated security protocols One of the design office functions is to useCADCAM systems to design products and create confidential design documentssuch as BoM Therefore the security of files and data bases used by the CADCAMsystem become a major concern Accordingly the interface and system integritywill be an integral component of ERP implementation The interface integritycomponent is needed to ensure an appropriate level of internal control into theCADCAM databases The systems integrity component is required to focus onestablishing an ERP-based robust environment in which the CADCAM-ERPinterface operates The development of the integrity environment needs to mitigatethe organisational risks and ensure that the controls implemented in the system donot encumber the business The interface between CADCAM and otherapplications needs to be designed specifically for cross-platform use This studyexamines the positive relationship between the security of the CADCAM interfaceand CADCAM integration success

H7 The security of the CADCAM interface is positively related to thesuccess of CADCAM integration with the ERP system

User friendliness of ERP systemsIf the ERP system chosen is a complicated system involving significantamounts of data manipulation this could be inadequate for successful CADCAM integration The reason for this inadequacy is that complicated ERPsystems may cause difficulties for users and hence communication with theCADCAM system The candidate application for ITIS implementation shouldbe simple familiar and based on an applicationrsquos basic merits not on its politics(Klein 1991) Accordingly organisations should carefully evaluate potentialERP systems for implementation This study examines the positiverelationship between the degree of ERP user friendliness and the success ofCADCAM integration with the ERP system

H8 The degree of ERP user friendliness is positively related to the successof CADCAM integration with the ERP system

IJOPM2156

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Research subjectsIn this study we used CADCAM users (engineers engineering managers) frombusiness organisations as subjects The reason for selecting these subjects wasthat ITIS system success measures have in past studies been significantlyrelated to the perceived CSF of ITIS managers The studies from Miller andDoyle (1987) and from Raghunathan et al (1989) both cited some other casestudies andor empirical studies that uphold this relationship Miller and Doyleand Raghunathan et al also have examined and supported this concept in theirstudies Therefore if an ITIS or CADCAM manager administers the CADCAM function corresponding to hisher CSF heshe can improve CADCAMperformance and effectiveness Thus this research will attempt to extract CSFfor CADCAM in next generation manufacturing organisations from a CADCAM usersrsquo perspective

Survey instrumentThis research used a survey-based field study of ED and production managersto investigate and test the above eight hypotheses Surveys and questionnaireswere used to facilitate collection of the required data lower sampling costspeed-up the time frame and make the required sampling size According toChurchill (1979) the research instrument must meet the requirements ofaccuracy and validity Several procedures were adopted to ensure and verifythese criteria These procedures are as follows

(1) Non-response bias Non-response bias was not found in the sampletested The non-response bias was calculated and tested by comparingthe survey results obtained from the respondents to the entire samplebecause of its availability at the designing stage of the questionnaire

(2) Reliability The instrument was found to be reliable because theCronbachrsquos coefficient alpha (not) for the instrument was found to beabove 06 (Churchill 1979 Nunnally 1978) Accordingly the reliability(stability and consistency of the measuring instrument) is assured

(3) Content validity Content validity examined the sampling adequacy ofthe instrument by

a complete and extensive inspection of the literature for all possibleitems to be included in the measurement

asking a group of academics consultants and executivesmanagers tocriticise the description and clarity of the questionnaire

the questionnaire was tested with members of the focus group prior tothe final survey The modification of the questionnaire was then basedon these expertsrsquo opinions

(4) Construct validity Construct validity tests were performed using a factoranalysis to

Critical successfactors forintegration

625

assess construct validity ie to determine the set of CSF by choosing aparticular factor loading pattern thus achieving content validity andconstruct validity

eliminate the unnecessary items from the instrument by checking thefactor loading and utilising factor extraction and rotation optionsunnecessary variables can be eliminated

(5) Practicality This criterion refers to economic factors convenience ofexecution and interpretability of data and the results (Emory andCooper 1991) This study considered the trade-off among researchvariables budget ease of management and estimated which researchinstrument best accommodated the objectives of this research study

ConclusionsA major problem with the integration of CADCAM with ERP systems is thatlittle is known about factors that contribute to or detract from its successKalakota (1997) argues that not all systems are ideal candidates forimplementation Selection of the wrong system or the wrong businessfunctional area can result not only in systems failure but can also cause tensionbetween departments and usersrsquo departments (Cronin 1996 Mougayar 1997Kalakota 1997) Many analysts believe that it is difficult to estimate the hiddencost and the staffrsquos attitude toward implementation (Kalakota 1997)

There are two situations when the organisation becomes concerned with theintegration of CADCAM with ERP systems These are

(1) when an organisation acquires CADCAM after it has already afunctioning ERP system or

(2) when the organisation implements the ERP system after it has a fullyoperational CADCAM system

In general these two situations generate two different sets of success factorsfor the integration of CADCAM with the ERP system Thus identifying CSFfor integration could help minimise risks associated with the integration andhelp promote the success of both CADCAM and ERP systems Therefore theidentification of strategies for integration of CADCAM with the ERP systemwill be the main purpose of this study

We propose that there is a significant direct relationship between theintegration of CADCAM with the ERP system and a number of CSF Severalbenefits and contributions are expected from establishing these CSF such as

Providing a checklist for integration of CADCAM with the ERP systemThat is from the findings managers can attend to what seems to be themost important activities and select an approach more likely to achievesuccess in integration of CADCAM with the ERP system

Providing a guideline for CADCAM and ERP resource managementManagers may be able to use the CSF findings of this research for better

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CADCAM and ERP resources management such as investment inhardware software and human resources

Identifying information needs The CSF may be useful for managers toidentify their information needs for CADCAM and ERP systems andhence understand more about the required support services that usersneed suggested by Rockart (1979 1982)

Evaluating the performance of the design office The CSF may be usefulas criteria for users executives and managers to evaluate theperformance of the design office

Furnishing a foundation for communication The CSF can provide afoundation for communication between the users of CADCAM and ERPsystems

Strengthening organisational goals CSF can help the wholeorganisation understand the most important criteria and enhance itscompetitive stance

Providing a base for the future research Further research can expand onthe findings from this study For example the eight hypothesesdeveloped here should be tested and the results should be madeavailable to researchers and practitioners in the field of manufacturingmanagement

Many organisations have integrated their CADCAM with ERP systemswithout theoretical or academic rationalisation Not all implementation effortshave been successful So this research aims to identify CSF for CADCAMintegration with ERP systems The research model is based on the classic CSFstudies by Rockart (1982) and Martin (1982a b) along with others identified inthe newer literature

As this research assesses the evolution of CADCAM integration with ERPthe results from this study will serve as a foundation for further researchAdditional research may provide a better understanding and thereby improveandor confirm the findings of this research

RecommendationsA possible future study could conduct a limited number of case studies tocompare clarify and evaluate the possible response bias from this study Thereis no guarantee that the selected CSF are complete and completeness is ajudgemental limitation of this research

The possible future study of failsuccess or riskreturn factors may be ofassistance to management of organisations with CADCAM and ERP systemsOther studies could compare the success of CADCAM and ERP integration bytype of organisations annual sales number of employees and years of usingthe two systems In other words different types of organisations different sizesof organisations and different experiences in CADCAM and ERP operationmay relevant to compare the success of CADCAM and ERP integration

Critical successfactors forintegration

627

References

Barki H and Hartwick J (1994) `Measuring user participation user involvement and userattitudersquorsquo MIS Quarterly Vol 13 No 1 pp 59-82

Baraudi JJ Olson MH and Ives B (1986) `An empirical study of the impact of userinvolvement on system usage and information satisfactionrsquorsquo Communications of the ACMVol 29 No 3 pp 232-8

Bergeron F Rivard S and Raymond L (1993) `Assessment of end-user computing froman organisational perspectiversquorsquo Information Resources Management Journal Winterpp 14-25

Boynton AC and Zmud RW (1984) `An assessment of critical success factorsrsquorsquo SloanManagement Review Vol 25 No 4 Summer pp 17-27

Churchill GA Jr (1979) `A paradigm for developing better measures of marketing constructsrsquorsquoJournal of Marketing Research February pp 67-73

Clark J and Soliman F (1996) `Appraising knowledge-based system investmentrsquorsquo Proceedingsof the 3d European Conference on the Evaluation of Information Technology BathUniversity Bath 29 November pp 143-254

Clark J and Soliman F (1999) `A graphical method for assessing knowledge-basedinvestmentsrsquorsquo Journal of Logistics and Information Management Vol 12 No 1

Cronin MJ (1996) Global Advantage on the Internet Van Nostrand Reinhold New York NY

Davis GB (1979) ` Comments on the critical success factors method for obtaining managementrequirements in article by John F Rockart `Chief executives define their own data needsrsquorsquorsquoHarvard Business Review Vol 57No 2 March-April pp 81-93

Davis GB (1980) ` Letter to the Editorrsquorsquo MIS Quarterly Vol 4 No 2 June pp 69-70

DeLone WH (1988) ` Determinants of success for computer usage in small businessrsquorsquo MISQuarterly Vol 12 No 1 March pp 51-61

Dickinson RA Ferguson CR and Sircar S (1984) ` Critical success factors and smallbusinessrsquorsquo American Journal of Small Business January-March Vol III pp 49-57

Dilenschneider RL and Hyde RC (1985) `Crisis communications planning for the unplannedrsquorsquoBusiness Horizons January-FebruaryVol 28 No 1 pp 35-8

Emory WC and Cooper DR (1991) Business Research Methods 4th ed Irwin Homewood IL

Ferguson CR and Dickinson R (1982) `Critical success factors for directors in the eightiesrsquorsquoBusiness Horizons May-June Vol 25 No 3 pp 14-18

Garcia MR (1997) ` Knowledge centralrsquorsquo InformationWeek Vol 649 pp 252-6

Ginzberg MJ (1981) ` Early diagnosis of MIS implementation failure promising results andunansweredquestionsrsquorsquo Management Science April Vol 27 No 4 pp 459-78

Gustin CM Stank TP and Daugherty PJ (1994) ` Computerization supporting integrationrsquorsquoInternational Journal of Physical Distribution and Logistic Management Vol 24 No 1pp 11-16

Hamilton S and Chervany NL (1981a) ` Evaluating information system effectiveness plusmn Part Icomparing evaluation approachesrsquorsquo MIS Quarterly September Vol 5 No 3 pp 55-69

Hamilton S and Chervany NL (1981b) ` Evaluating information system effectiveness plusmn Part IIcomparing evaluator viewpointsrsquorsquo MIS Quarterly DecemberVol 5 No 4 pp 79-86

Hoffman T (1992) ` Users share stories of downsizing pros consrsquorsquo Computerworld OctoberVol 5 p 7

Hylas RE Gordon B and Dinetz GR (1989) `The upside of downsized systemsrsquorsquo BestrsquosReview December pp 78-82

Critical successfactors forintegration

611

improvements in business processes are required

customization of CADCAM processes are necessary

different alternative strategies need to be evaluated

high level of integration between CADCAM and ERP system isrequired and

there is multiple site implementation

(2) Short-cut implementation In this scenario the focus during theimplementation is on technical migration with enhanced businessimprovements introduced at a later stage This approach is suitablewhen

improvements in business processes are not required immediately

the organisation has a firm decision-making process

organisation operating procedures are driven from its strategicplans and

there is one single site implementation

The success of a CADCAM implementation depends on how quickly thebenefits can be reaped from the system This necessitates rapidimplementation leading to shortened return on investment (ROI) periods (Clarkand Soliman 1997a b)

Traditional approaches to implementation typically carry out a BPRexercise and define a ` to bersquorsquo model before the CADCAM systemimplementation Although such a scenario has a theoretical appeal formanagement in reality it usually leads to mismatches between the proposedmodel and the CADCAM functionality The consequences of this can includeextension of the implementation time frames higher costs and loss of userconfidence

It is envisaged that next generation manufacturers would implementCADCAM systems in stages The usual starting point is with the missionstatement from which one derives the implementation plan in line with thestrategic plan of the next generation manufacturer This is necessary toavoid mismatch and to ensure that the investment in CADCAM systems isaligned with the business direction of the organisation (Clark and Soliman1999) According to Soliman (1997) in the 1990s and beyond IT and BPRwill be used in conjunction with each other and will emerge as importanttools to give next generation manufacturers a leading edge By their verydefinition most CADCAM systems reside in the servers of local areanetworks (LAN) Therefore they have their databases and produce outputusually in the form of drawings and bills of materials (BoM) for use byproduction and procurement departments Hence there is no shortage ofdata to use in achieving alignment

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612

CADCAM integration with ERP systemsOrganisations using ERP systems have two significant choices either of whichthey may follow

(1) Re-enter BoM and other relevant information into the ERP system forthe purpose of performing material requirement planning (MRP)calculations and for ordering materials from suppliers

(2) Integrate the CADCAM system so that the information it generates isautomatically passed on to the MRP procurement and other modules inthe ERP system without a great deal of effort

The integration between CADCAM systems and ERP systems cannot producemaximum results unless the data collection (interchange) is appropriate for thetask Traditional systems rely on a hierarchical top-down model that conformsto the host hardware-processing environment with extensive data interchangenetworks submitting transactions over a dedicated network In these systemstransaction verification must be performed at the host level leading to constantdisruptions and delays for users Therefore data interchange becomes aroadblock to effective CADERP integration With continual interruptions tothe host process the modern ERP system can be rendered ineffective Theseproblems and the inherent complexity of integration have led a movement ofhardware-driven improvement in data interchange systems (DIS) The result isthat modern DIS in next generation manufacturer will incorporate clientserverarchitecture extensive connectivity options multi-platform computabilitiesand modular construction These DIS must be deployed in accordance with theconnectivity requirement of both the CADCAM and ERP systems It should beremembered that the CADCAM connectivity requirement is normally for LANconnectivity while the ERP system requires wide area networks (WAN)connectivity In general this is because CADCAM systems run from LANplatforms while ERP systems run from WAN platforms

Figure 2 illustrates the interface between ERP systems and CADCAMsystems in next generation manufacturers The interface is accomplishedthrough DIS

From the above discussion it should be evident that the implementationissues involved in integrating CADCAM systems with ERP systems poseunique problems because of the following three decisive factors

(1) Databases The same type of database architecture is required at allplatforms

(2) Networks The existing network capabilities must be such that itsupports the large volume of data exchange between CADCAM andERP system through DIS

(3) Maintenance Consistency and validations of data could put additionalburden on maintenance

Critical successfactors forintegration

613

Critical success factors (CSF) for CADCAM integrationRockart (1979) originated the CSF approach and has popularised it throughhelping executives identify their information needs Rockartrsquos CSF approachwas based on that of D Ronald Daniel apparently the person first to discussthe concept of ` success factorsrsquorsquo in the management literature (Rockart 1979)Rockart defined CSF as the limited number of areas in which results if they aresatisfactory will ensure successful competitive performance for theorganisation They are the few key areas where ` things must go rightrsquorsquo for thebusiness to ` flourishrsquorsquo He argued that managers need appropriate informationon their management functions and that performance in each area should bemeasured continually It follows that such information should be madeavailable by organizations as necessary for enhanced managersrsquo performance(Soliman and Soar 1997)

Davis (1979 1980) criticised the use of the CSF approach because it relied onmanagersrsquo responses which may be incorrect incomplete or insufficient andare constrained by human behaviour According to Davis these constraints are` bounded rationally human ability to evaluate probabilities and to identifycausality and the biasing effect of availability of datarsquorsquo Thus in his view theCSF method will elicit the information that executives feel they need not theinformation that executives actually do need In other words managers mightunintentionally invent overlook or fail to mention CSF Davis (1980)recommended further research on the use of explicit models and implicitmodels to elicit information requirements Several researchers have responded

Figure 2Integration of CAD

CAM with ERP systemin a next generation

manufacturing setting

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614

to Davisrsquo comments and suggested ways to minimise these weaknesses(Munro 1983 Boynton and Zmud 1984)

Munro and Wheeler (1980) presented a general approach for identifying CSFwithin the context of corporate planning They analysed the process ofdetermining information requirements for organisational control purposes byinterviewing senior middle level managers in a training seminar Thoseprocesses include ` understand business unit objectives identify CSF andidentify the performance measures and standards for each CSF identify datarequired to measure performance and identify decisions and informationrequired implementing the planrsquorsquo From these processes they concluded that theCSF method and the performance measures and standards for each CSF canhelp management information systems by providing required managementinformation They also indicated that identifying CSF within the context oforganisation planning processes could overcome the potential difficulties notedby Davis

In response to Davisrsquos comments Munro (1983) compared the resultsobtained from Rockartrsquos CSF study (1982) and Martinrsquos CSF study (1982ab)Munro also examined both authorsrsquo articles in detail and compared the articlesrsquocitations and descriptions as well as their interviews with senior ITISmanagers He commented that the results from these two studies wereinterrelated and quite similar He also concluded that the results from CSFmethods are reasonable and that the CSF approach is a reliable techniquewhile acknowledging that the CSF approach could not be completely free fromthe bias of an interviewerrsquos interests and perceptions unless the interviewerswere skilful (Munro 1983)

In their 1984 study Boynton and Zmud concluded that the weaknessesidentified by Davies that may occur when using the CSF method can be largelyovercome through careful application of the technique They conducted twocase studies one is a study of a financial services firm while the other was astudy of a state university From their experience there are guidelines foreffective application of CSF

CSF are an excellent tool for information resource planning The CSFmethod seems particularly useful for organisations considering a moreaggressive IT posture

The use of a prototype is recommended as a means of productdevelopment

The individual managing the CSF effort should have a throughunderstanding of the organisation or should be literate in theorganisationrsquos principal area of business

It is useful to identify and cultivate a senior-level manager to championthe project

Their study suggests that organisations employing the CSF methodappropriately have many strengths The reliability of the CSF method can be

Critical successfactors forintegration

615

achieved when there is a structured design process using CADCAM systemsand that in ITIS planning Davisrsquo criticisms can be overcome by interviewingmanagers across a diagonal slice of the organisation

Benbasat (1984) suggested that the CSF approach could be considered in thesame classification as information based on a management by objectiveapproach He indicated that the CSF approach could be a system analysis toolfor eliciting executiversquos information requirements at the management controllevel CSF could be a means of supporting system planning and could grantsuccessful competitive performance for the organisation Since he did notexplicitly criticise the CSF method his support of the CSF approach iswarranted In addition Soliman and Clark (1996) concluded that the systemrsquosvalue is an important CSF for managing implementation of knowledge-basedsystems

Zahedi (1987) suggested and developed reliability as the measure ofinformation system success based on CSF He attempted to provide atheoretical framework for measuring information system success based onCSF His research used Rockartrsquos (1982) data to identify and build a hierarchicalconfiguration of the observed CSF of the MIS The study also used the datafrom Martinrsquos (1982ab) studies to verify the construction of the ITISconfiguration derived from Rockartrsquos data Zahedirsquos verification indicated thatthe developed CSF configuration could be applied to other sample data withsome minor modification Based on the derived CSF configuration Zahedigenerated a reliability measure for information systems defined as ` theprobability that the system works successfully in achieving its objectivesunder a given set of environmental conditionsrsquorsquo Zahedi also presentednumerical examples and demonstrated how reliability measures can be utilisedin evaluating IS projects in costbenefit analysis Based on the strengths of theCSF research approach mentioned above and methods for dealing with criticalcomments there appears to be some confidence and support for obtaining CSFfor integration of CADCAM systems with ERP systems

During the past decade more extensive studies have attempted to overcomethe weakness attributed to CSF and have broadened the concept to severaldifferent areas These applications could utilise CSF for

strategic guidelines at board of directorsrsquo level (Ferguson and Dickinson1982)

information requirements and corporate planning (Munro and Wheeler1980 Boynton and Zmud 1984)

management decision process (Rockart and Crescenzi 1984)

crises communications (Dilenschneider and Hyde 1985)

ITIS planning (Shank et al 1985)

information satisfaction in the small business environment (Dickinsonet al 1984 DeLone 1988 Montazemi 1988)

financial services (Miller and Doyle 1987) and

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616

information centres or ITIS organisations performance (Magal and Carr1988 Raghunathan et al 1989 Bergeron et al 1993)

Drawing from these studies we provide a research framework to identifyCSF for the integration of CADCAM systems with ERP systems Theliterature reviewed in this study is based on the idea that successfullymanaged integration of CADCAM systems with ERP systems depends onCADCAM management and the interactions among CADCAM resources(CADCAM staff hardware and application software) and users because` the success of the information system depends on the social structures andinteractions that prevail during and after the development processrsquorsquo(Lyytinen 1987)

We also review the literature related to ITIS managersrsquo perceptions ofimplementation success Several studies have examined the relationshipbetween CSF of IS managers and CSF of ITIS implementation success Theyassert that if a section of a proposed system being considered is very importantto the manager this section usually performs better than others Miller andDoyle (1987) also reported that all the identified performance measures weresignificantly related to the CSF of ITIS managers If this relationship holdstrue the ITIS managersrsquo perceptions of importance could indicate areas criticalfor information system performance

Statement of the problemMuch has been written over the past 20 years on the success of ITimplementation in organisations but nothing has been published on thesuccess of integration of CADCAM and ERP systems It is important toinvestigate if there is any relationship between the use of CADCAMsystems in manufacturing and the performance of manufacturers Amongthe research questions that need to be answered one must include thefollowing

Can CADCAM systems be used as strategic tools to improve thecompetitive position of organisations

Have organisations taken advantage of this potential or have theysquandered the opportunity

Are organisation users happy with the system installed

Is the installed system both safe to use and reliable

To answer these questions we propose to focus on two main performanceindicators namely

(1) Manufacturing costs

(2) Customer satisfaction in terms of quality and delivery time

To date there have not been any published surveys attempting to link theintegration of CADCAM systems with the performance of organisations

Critical successfactors forintegration

617

There are several questions to be answered about CADCAM integration withERP systems in manufacturing organisations In the research that we proposewe will investigate if

manufacturing companies who integrated CADCAM with ERP systemshave reduced their manufacturing costs

companies who integrated CADCAM with ERP systems are more likelyto increase their customersrsquo satisfaction in terms of quality and deliverytime

manufacturing companies who integrated CADCAM with ERP systemsare likely to improve their strategic advantage in terms ofmanufacturing costs and customers satisfaction

Grounded theory investigation (GTI)GTI in management can be extremely valuable (Tantoush 1998) A panel ofmanagement experts assisted in the constructions of the CSF for CADCAMintegration with ERP systems Members of the panel comprised one chiefengineer one engineering director two design engineers one productionmanager one quality control manager and one purchasing manager The chiefengineer takes the role of moderator of the group An effective group moderatorprepares a discussion guide to help ensure that the group covers all CSF ofinterest It is the moderatorrsquos job to make sure that everyone gets a chance tospeak and to ask questions to clarify topics (CSF and CADCAM integrationwith ERP systems) that have been introduced into the discussion Thecombined effort of the group is to achieve cost savings time-savings qualityand efficiency Using the grounded theory approach the group could beexpected to identify CSF for the successful integration of CADCAM with ERPsystems

Research modelThe research model used in this study is based on the CSF study of Rockart(1982) modified according to the studies of Martin (1982ab) DeLone (1988)Miller et al (1987) and Bergeron et al (1993)

Figure 3 shows a diagram summarising the proposed research modelThe variables in this model can be categorised into the following eight areas

that might determine the success of the integration of CADCAM with ERPsystems

(1) CADCAM usersrsquo appreciation of integration

(2) communication between design office and other users

(3) design office services and support functions

(4) management commitment and support

(5) organisational effectiveness

(6) training of CADCAM staff on ERP system

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(7) security of CADCAM interface and

(8) user friendliness of ERP systems

Due to the restricted application of CADCAM a large sample may not bepossible However this study will employ a survey for randomly selectedengineers and engineering managers in CADCAM offices Several empiricalstudies have found a positive relationship between IT success and managersrsquoperceptions The perceptions of engineers and engineering managers will bechosen because of their professional qualifications interest and theirknowledge concerning problems with the system

Significance of this researchThe results of this study may provide a contribution to both academic researchand manufacturing management for CSF studies as well as for the integrationof CADCAM with ERP systems Identifying CSF could help focus futureresearch on questions that have a significant impact on decisions in regard tothe integration of CADCAM with other systems Findings may help extend theexisting knowledge on CADCAM implementation research Based on theexpected findings the risk or dark side of CADCAM integration eg hiddenconversion cost data corruption caused by inconsistencies between ERPdatabases and the server database etc may also be identified in furtherstudies

Managers could be expected to utilise the identified integration CSF to adoptmore successful CADCAM implementation strategies in the future Theexpected CSF could also be used by production managers both as evaluationcriteria for system planning and control and as a facilitator of communicationbetween production departments and their users With better utilisation and

Figure 3The conceptual researchmodel

Critical successfactors forintegration

619

better understanding concerning the integrated CADCAM organisationsmight be better able to achieve cost savings time saving quality and efficiencyin their new systems Thus the benefits of successful integration couldimprove the corporate utilisation of information systems resources and assistin achieving a competitive advantage for organisations (Symon and Clegg1991)

Measuring performance and effectivenessTo evaluate the success of CADCAM integration one should measure systemsperformance and effectiveness Hamilton and Chervany (1981a) report the needfor performance measures for ITIS They claimed that ` Evaluating systemeffectiveness in meaningful terms has been the most difficult aspect of the ITISimplementation processrsquorsquo In their study Hamilton and Chervany (1981b)described and compared the effects of evaluator viewpoints on systemeffectiveness in terms of resources-oriented perspectives (or efficiency) andinfluences-oriented perspectives (or effectiveness) Some of their evaluationitems (for example MIS personnel productivity computer performance serviceand usersrsquo attitude) are identical to the components of CSF from Rockart (1982)Martin (1982ab) and later CSF studies Some of Hamilton and Chervanyrsquosevaluation items (productivity service usersrsquo attitude and computerperformance) will be included in the research instrument Zmud (1979)suggested that organisational factors ITIS usage top managementrsquos supportdecisions performance personal and interpersonal characteristics usersrsquoattitude ITIS staff characteristics and ITIS policies influence the success ofsystem implementation (Symon and Clegg 1991) Zmud suggests also thatresearch should examine system usage user satisfaction and user performancefor ITIS success All these factors will be included in the research instrument

Ginzberg (1981) attempted to track and manipulate the controllablevariables by developing tools for system designers and users He suggestedthat two management approaches can increase the effectiveness of the systemdevelopment process One approach is to identify those variables that are bothespecially important to the success of system development and controllable bythe user or the system designer The other approach is to manage thedevelopment process of the system designer and user by utilising developmenttools and procedures Ginzberg conducted a field study in a large US bank andconcluded ` the degree of realism of userrsquos pre-implementation expectationswas positively correlated with a range of project success measures bothattitudinal and behaviouralrsquorsquo

According to Rockart and Flanneryrsquos (1983) definition of end-users an ITISmanager could serve as a system designer and user as well FollowingGinzbergrsquos suggestion this study will also attempt to examine the ITISmanagerrsquos view of the importance of ITIS implementation success Thusengineers engineering managers and ITIS managers will be chosen as theresearch subject for this study (Tantoush 1998)

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620

Yaverbaum (1988) applied the ` job diagnostic surveyrsquorsquo to 84 end-users toinvestigate motivation and satisfaction in a computer environmentYaverbaumrsquos results indicate that task factors organisational factors(management support management activity and training program) and userfactors (cognitive differences users characteristics attitude age past trainingeducation job experience and user participation) affecting user satisfaction arecrucial to the success of information systems Since her results support Zmudrsquos(1979) study this study will also include organisational factors task factorsand user factors in the research instrument

MethodologyYin (1994) suggested that a case study approach is an appropriate choice ofresearch method for this type of problem This is particularly true when

the researcher has little control over the environment

the events under investigation are contemporary and

the context of the research is important

The researchers do not have any control over the CADCAM and ERPenvironments that organisations adopt In addition since the CADCAM andERP systems are at present widely used in industry the topic of research iscontemporary Furthermore there is no published research on this topic andthe outcome is likely to affect the investment and productivity of these systemsAccordingly a case study approach is suitable for this analysis

Hypotheses for this study can be grouped according to the expected CSF ofCADCAM integration with ERP Systems The hypotheses presented below arenumbered for identification on the basis of grounded theory approach

Statement of hypothesesThe development of hypotheses based on the expected CSF of the methods andprocedures used to assess the degree of success of CADCAM integration withERP systems

CADCAM usersrsquo appreciation of integrationA study by Ives and Olson (1984) reviewed 22 ITIS-related studies Only eightstudies claimed a positive relationship between user involvement and systemsuccess Seven studies claimed a negative relationship while the other sevenstudies claimed mixed results Of the seven studies that investigated therelationship between user involvement and userrsquos attitude toward the systemonly one study reported significant results with user involvement and userrsquosattitude Other studies by Baroudi et al (1986) Tait and Vessey (1988) andBarki and Hartwick (1994) point to a relationship between usersrsquo involvementand the success of integration of CADCAM systems with ERP systemsAccordingly this research proposes to examine the relationship of these two

Critical successfactors forintegration

621

variables (user involvement and usersrsquo attitude) and the success of CADCAMintegration with ERP systems

H1 User appreciation (user involvement and usersrsquo attitude) is positivelyrelated to the success of CADCAM integration with ERP systems

Communication between design office and other usersIn the case of integration of CADCAM with an ERP system the design officecould improve communication and assist users in communication with thedesign office Thus users could be less anxious and their attitude towardimplementation more favourable (Rainer et al 1992) In the environment ofCADCAM communication with users is more crucial and complex than in theclassical environment of computing Therefore this study stresses theimportance of communication between users and the design office andhypothesises that there will be a positive relationship of CADCAM integrationwith ERP system success

H2 Communication between users and the design office is positivelyrelated to the success of CADCAM integration with an ERP system

Design office services and support functionsThe basic function of the design office is to manage design and CADCAMresources and to co-ordinate and facilitate CADCAM functioning for users Aneffective design office provides drawings and Bills of materials (BoM) with acompetent design staff supporting production Services such as technicalsupport trouble shooting consulting and training are critical design officefunctions In their study Magal and Carr (1988) found that ITIS staffrsquosunderstanding of the usersrsquo business and problems plus standardisedhardware and software to be important factors for the quality of ITIS supportservices This study proposes a positive relationship between the success ofCADCAM integration with an ERP system and the support services of thedesign office

H3 The design office supporting services is positively related to thesuccess of CADCAM integration with an ERP system

Management commitment and supportThe success or failure of any business effort is often determined by the amountof top management support (Rockart 1982 Ives and Olson 1984) Engineeringand production managers actively participate in the organisationrsquos planningprocess with senior managers and top managers help engineering andproduction management and line management to overcome the problem ofunderstanding top managementrsquos objectives thus facilitating goodcommunications among management levels Engineering and productionmanagers who participate in the planning process also tend to promotecommunication and a favourable relationship with top management Thussuch managers will more likely perceive the changing business objectives andthus help engineering and production management to achieve the new business

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622

objectives Top management would thus acknowledge the importance of CADCAM integration and generate an appreciation of CADCAM managementissues Top management that is better able to understand the idea or theproblems of CADCAM management during the process of CADCAMintegration will have a better image of the CADCAM integration phenomenon

Ginzberg (1981) suggested that engineering and production managementpropose a strategic plan of CADCAM integration with an ERP system to topand line management including the reasons for the change its importance tothe organisation the impacts likely to result from it and the procedure forevaluating it Such criteria will be important in determining a userrsquos response toan ITIS change from the strategic plan studied and proposed by the ITISmanager Thus under these circumstances top and line management would bemore likely to commit to and support CADCAM objectives and offer co-operation for successful CADCAM integration with an ERP system Thisstudy examines this positive relationship

H4 Management commitment and support are positively related to thesuccess of CADCAM integration with ERP systems

Organisational effectivenessAny management task should be designed to achieve the organisationrsquosobjectives similarly CADCAM integration with ERP system should bedesigned to achieve an organisationrsquos objectives If CADCAM integrationimproves an organisationrsquos effectiveness then integration is more likely to beregarded as a success During such major organisational changes CADCAMsupport may ease the tedious maintenance of drawings BoM andspecifications thus improving the quality of managersrsquo decision making andeasing the management of change This study examines the relationshipbetween the success of CADCAM integration with an ERP system andorganisational effectiveness

H5 Organisational effectiveness is positively related to the success of CADCAM integration with an ERP system

Training of CADCAM staff on ERP systemsHylas et al (1989) indicated that not all systems applications are appropriatefor implementation Selection of the wrong business functional area or thewrong application or lack of adequate training can result in system failure Notonly lack of ITIS implementation experience can cause an ITIS manager tochoose an inappropriate application incompetent ITIS staff may havedifficulty recording or developing software for ITIS implementation while adeficiency of software packages for ITIS implementation can cause rigidityand difficulty for ITIS implementation (Hoffman 1992)

Lucas (1981) suggested that human factors affect the successfulimplementation of a new ITIS more obviously than do organisationalfactors In addition when applications are moving from the mainframe tothe desktop compatibility should be maintained To ensure software

Critical successfactors forintegration

623

compatibility the design office should review syntax ERP softwarefeatures and semantics and external behaviour and provide training to itsusers This study hypothesises a positive relationship between trainingCADCAM staff on ERP system and the success of CADCAM integrationwith an ERP system

H6 Training CADCAM staff on ERP systems is positively related to thesuccess of CADCAM integration with ERP systems

Security of CADCAM interfaceApplications should be acquired to solve business problems not make problemsData are interchanged between CADCAM system and other applications such asan ERP system through the interface Many older applications often employunique antiquated and somewhat incompatible software coupled withunsophisticated security protocols One of the design office functions is to useCADCAM systems to design products and create confidential design documentssuch as BoM Therefore the security of files and data bases used by the CADCAMsystem become a major concern Accordingly the interface and system integritywill be an integral component of ERP implementation The interface integritycomponent is needed to ensure an appropriate level of internal control into theCADCAM databases The systems integrity component is required to focus onestablishing an ERP-based robust environment in which the CADCAM-ERPinterface operates The development of the integrity environment needs to mitigatethe organisational risks and ensure that the controls implemented in the system donot encumber the business The interface between CADCAM and otherapplications needs to be designed specifically for cross-platform use This studyexamines the positive relationship between the security of the CADCAM interfaceand CADCAM integration success

H7 The security of the CADCAM interface is positively related to thesuccess of CADCAM integration with the ERP system

User friendliness of ERP systemsIf the ERP system chosen is a complicated system involving significantamounts of data manipulation this could be inadequate for successful CADCAM integration The reason for this inadequacy is that complicated ERPsystems may cause difficulties for users and hence communication with theCADCAM system The candidate application for ITIS implementation shouldbe simple familiar and based on an applicationrsquos basic merits not on its politics(Klein 1991) Accordingly organisations should carefully evaluate potentialERP systems for implementation This study examines the positiverelationship between the degree of ERP user friendliness and the success ofCADCAM integration with the ERP system

H8 The degree of ERP user friendliness is positively related to the successof CADCAM integration with the ERP system

IJOPM2156

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Research subjectsIn this study we used CADCAM users (engineers engineering managers) frombusiness organisations as subjects The reason for selecting these subjects wasthat ITIS system success measures have in past studies been significantlyrelated to the perceived CSF of ITIS managers The studies from Miller andDoyle (1987) and from Raghunathan et al (1989) both cited some other casestudies andor empirical studies that uphold this relationship Miller and Doyleand Raghunathan et al also have examined and supported this concept in theirstudies Therefore if an ITIS or CADCAM manager administers the CADCAM function corresponding to hisher CSF heshe can improve CADCAMperformance and effectiveness Thus this research will attempt to extract CSFfor CADCAM in next generation manufacturing organisations from a CADCAM usersrsquo perspective

Survey instrumentThis research used a survey-based field study of ED and production managersto investigate and test the above eight hypotheses Surveys and questionnaireswere used to facilitate collection of the required data lower sampling costspeed-up the time frame and make the required sampling size According toChurchill (1979) the research instrument must meet the requirements ofaccuracy and validity Several procedures were adopted to ensure and verifythese criteria These procedures are as follows

(1) Non-response bias Non-response bias was not found in the sampletested The non-response bias was calculated and tested by comparingthe survey results obtained from the respondents to the entire samplebecause of its availability at the designing stage of the questionnaire

(2) Reliability The instrument was found to be reliable because theCronbachrsquos coefficient alpha (not) for the instrument was found to beabove 06 (Churchill 1979 Nunnally 1978) Accordingly the reliability(stability and consistency of the measuring instrument) is assured

(3) Content validity Content validity examined the sampling adequacy ofthe instrument by

a complete and extensive inspection of the literature for all possibleitems to be included in the measurement

asking a group of academics consultants and executivesmanagers tocriticise the description and clarity of the questionnaire

the questionnaire was tested with members of the focus group prior tothe final survey The modification of the questionnaire was then basedon these expertsrsquo opinions

(4) Construct validity Construct validity tests were performed using a factoranalysis to

Critical successfactors forintegration

625

assess construct validity ie to determine the set of CSF by choosing aparticular factor loading pattern thus achieving content validity andconstruct validity

eliminate the unnecessary items from the instrument by checking thefactor loading and utilising factor extraction and rotation optionsunnecessary variables can be eliminated

(5) Practicality This criterion refers to economic factors convenience ofexecution and interpretability of data and the results (Emory andCooper 1991) This study considered the trade-off among researchvariables budget ease of management and estimated which researchinstrument best accommodated the objectives of this research study

ConclusionsA major problem with the integration of CADCAM with ERP systems is thatlittle is known about factors that contribute to or detract from its successKalakota (1997) argues that not all systems are ideal candidates forimplementation Selection of the wrong system or the wrong businessfunctional area can result not only in systems failure but can also cause tensionbetween departments and usersrsquo departments (Cronin 1996 Mougayar 1997Kalakota 1997) Many analysts believe that it is difficult to estimate the hiddencost and the staffrsquos attitude toward implementation (Kalakota 1997)

There are two situations when the organisation becomes concerned with theintegration of CADCAM with ERP systems These are

(1) when an organisation acquires CADCAM after it has already afunctioning ERP system or

(2) when the organisation implements the ERP system after it has a fullyoperational CADCAM system

In general these two situations generate two different sets of success factorsfor the integration of CADCAM with the ERP system Thus identifying CSFfor integration could help minimise risks associated with the integration andhelp promote the success of both CADCAM and ERP systems Therefore theidentification of strategies for integration of CADCAM with the ERP systemwill be the main purpose of this study

We propose that there is a significant direct relationship between theintegration of CADCAM with the ERP system and a number of CSF Severalbenefits and contributions are expected from establishing these CSF such as

Providing a checklist for integration of CADCAM with the ERP systemThat is from the findings managers can attend to what seems to be themost important activities and select an approach more likely to achievesuccess in integration of CADCAM with the ERP system

Providing a guideline for CADCAM and ERP resource managementManagers may be able to use the CSF findings of this research for better

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CADCAM and ERP resources management such as investment inhardware software and human resources

Identifying information needs The CSF may be useful for managers toidentify their information needs for CADCAM and ERP systems andhence understand more about the required support services that usersneed suggested by Rockart (1979 1982)

Evaluating the performance of the design office The CSF may be usefulas criteria for users executives and managers to evaluate theperformance of the design office

Furnishing a foundation for communication The CSF can provide afoundation for communication between the users of CADCAM and ERPsystems

Strengthening organisational goals CSF can help the wholeorganisation understand the most important criteria and enhance itscompetitive stance

Providing a base for the future research Further research can expand onthe findings from this study For example the eight hypothesesdeveloped here should be tested and the results should be madeavailable to researchers and practitioners in the field of manufacturingmanagement

Many organisations have integrated their CADCAM with ERP systemswithout theoretical or academic rationalisation Not all implementation effortshave been successful So this research aims to identify CSF for CADCAMintegration with ERP systems The research model is based on the classic CSFstudies by Rockart (1982) and Martin (1982a b) along with others identified inthe newer literature

As this research assesses the evolution of CADCAM integration with ERPthe results from this study will serve as a foundation for further researchAdditional research may provide a better understanding and thereby improveandor confirm the findings of this research

RecommendationsA possible future study could conduct a limited number of case studies tocompare clarify and evaluate the possible response bias from this study Thereis no guarantee that the selected CSF are complete and completeness is ajudgemental limitation of this research

The possible future study of failsuccess or riskreturn factors may be ofassistance to management of organisations with CADCAM and ERP systemsOther studies could compare the success of CADCAM and ERP integration bytype of organisations annual sales number of employees and years of usingthe two systems In other words different types of organisations different sizesof organisations and different experiences in CADCAM and ERP operationmay relevant to compare the success of CADCAM and ERP integration

Critical successfactors forintegration

627

References

Barki H and Hartwick J (1994) `Measuring user participation user involvement and userattitudersquorsquo MIS Quarterly Vol 13 No 1 pp 59-82

Baraudi JJ Olson MH and Ives B (1986) `An empirical study of the impact of userinvolvement on system usage and information satisfactionrsquorsquo Communications of the ACMVol 29 No 3 pp 232-8

Bergeron F Rivard S and Raymond L (1993) `Assessment of end-user computing froman organisational perspectiversquorsquo Information Resources Management Journal Winterpp 14-25

Boynton AC and Zmud RW (1984) `An assessment of critical success factorsrsquorsquo SloanManagement Review Vol 25 No 4 Summer pp 17-27

Churchill GA Jr (1979) `A paradigm for developing better measures of marketing constructsrsquorsquoJournal of Marketing Research February pp 67-73

Clark J and Soliman F (1996) `Appraising knowledge-based system investmentrsquorsquo Proceedingsof the 3d European Conference on the Evaluation of Information Technology BathUniversity Bath 29 November pp 143-254

Clark J and Soliman F (1999) `A graphical method for assessing knowledge-basedinvestmentsrsquorsquo Journal of Logistics and Information Management Vol 12 No 1

Cronin MJ (1996) Global Advantage on the Internet Van Nostrand Reinhold New York NY

Davis GB (1979) ` Comments on the critical success factors method for obtaining managementrequirements in article by John F Rockart `Chief executives define their own data needsrsquorsquorsquoHarvard Business Review Vol 57No 2 March-April pp 81-93

Davis GB (1980) ` Letter to the Editorrsquorsquo MIS Quarterly Vol 4 No 2 June pp 69-70

DeLone WH (1988) ` Determinants of success for computer usage in small businessrsquorsquo MISQuarterly Vol 12 No 1 March pp 51-61

Dickinson RA Ferguson CR and Sircar S (1984) ` Critical success factors and smallbusinessrsquorsquo American Journal of Small Business January-March Vol III pp 49-57

Dilenschneider RL and Hyde RC (1985) `Crisis communications planning for the unplannedrsquorsquoBusiness Horizons January-FebruaryVol 28 No 1 pp 35-8

Emory WC and Cooper DR (1991) Business Research Methods 4th ed Irwin Homewood IL

Ferguson CR and Dickinson R (1982) `Critical success factors for directors in the eightiesrsquorsquoBusiness Horizons May-June Vol 25 No 3 pp 14-18

Garcia MR (1997) ` Knowledge centralrsquorsquo InformationWeek Vol 649 pp 252-6

Ginzberg MJ (1981) ` Early diagnosis of MIS implementation failure promising results andunansweredquestionsrsquorsquo Management Science April Vol 27 No 4 pp 459-78

Gustin CM Stank TP and Daugherty PJ (1994) ` Computerization supporting integrationrsquorsquoInternational Journal of Physical Distribution and Logistic Management Vol 24 No 1pp 11-16

Hamilton S and Chervany NL (1981a) ` Evaluating information system effectiveness plusmn Part Icomparing evaluation approachesrsquorsquo MIS Quarterly September Vol 5 No 3 pp 55-69

Hamilton S and Chervany NL (1981b) ` Evaluating information system effectiveness plusmn Part IIcomparing evaluator viewpointsrsquorsquo MIS Quarterly DecemberVol 5 No 4 pp 79-86

Hoffman T (1992) ` Users share stories of downsizing pros consrsquorsquo Computerworld OctoberVol 5 p 7

Hylas RE Gordon B and Dinetz GR (1989) `The upside of downsized systemsrsquorsquo BestrsquosReview December pp 78-82

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612

CADCAM integration with ERP systemsOrganisations using ERP systems have two significant choices either of whichthey may follow

(1) Re-enter BoM and other relevant information into the ERP system forthe purpose of performing material requirement planning (MRP)calculations and for ordering materials from suppliers

(2) Integrate the CADCAM system so that the information it generates isautomatically passed on to the MRP procurement and other modules inthe ERP system without a great deal of effort

The integration between CADCAM systems and ERP systems cannot producemaximum results unless the data collection (interchange) is appropriate for thetask Traditional systems rely on a hierarchical top-down model that conformsto the host hardware-processing environment with extensive data interchangenetworks submitting transactions over a dedicated network In these systemstransaction verification must be performed at the host level leading to constantdisruptions and delays for users Therefore data interchange becomes aroadblock to effective CADERP integration With continual interruptions tothe host process the modern ERP system can be rendered ineffective Theseproblems and the inherent complexity of integration have led a movement ofhardware-driven improvement in data interchange systems (DIS) The result isthat modern DIS in next generation manufacturer will incorporate clientserverarchitecture extensive connectivity options multi-platform computabilitiesand modular construction These DIS must be deployed in accordance with theconnectivity requirement of both the CADCAM and ERP systems It should beremembered that the CADCAM connectivity requirement is normally for LANconnectivity while the ERP system requires wide area networks (WAN)connectivity In general this is because CADCAM systems run from LANplatforms while ERP systems run from WAN platforms

Figure 2 illustrates the interface between ERP systems and CADCAMsystems in next generation manufacturers The interface is accomplishedthrough DIS

From the above discussion it should be evident that the implementationissues involved in integrating CADCAM systems with ERP systems poseunique problems because of the following three decisive factors

(1) Databases The same type of database architecture is required at allplatforms

(2) Networks The existing network capabilities must be such that itsupports the large volume of data exchange between CADCAM andERP system through DIS

(3) Maintenance Consistency and validations of data could put additionalburden on maintenance

Critical successfactors forintegration

613

Critical success factors (CSF) for CADCAM integrationRockart (1979) originated the CSF approach and has popularised it throughhelping executives identify their information needs Rockartrsquos CSF approachwas based on that of D Ronald Daniel apparently the person first to discussthe concept of ` success factorsrsquorsquo in the management literature (Rockart 1979)Rockart defined CSF as the limited number of areas in which results if they aresatisfactory will ensure successful competitive performance for theorganisation They are the few key areas where ` things must go rightrsquorsquo for thebusiness to ` flourishrsquorsquo He argued that managers need appropriate informationon their management functions and that performance in each area should bemeasured continually It follows that such information should be madeavailable by organizations as necessary for enhanced managersrsquo performance(Soliman and Soar 1997)

Davis (1979 1980) criticised the use of the CSF approach because it relied onmanagersrsquo responses which may be incorrect incomplete or insufficient andare constrained by human behaviour According to Davis these constraints are` bounded rationally human ability to evaluate probabilities and to identifycausality and the biasing effect of availability of datarsquorsquo Thus in his view theCSF method will elicit the information that executives feel they need not theinformation that executives actually do need In other words managers mightunintentionally invent overlook or fail to mention CSF Davis (1980)recommended further research on the use of explicit models and implicitmodels to elicit information requirements Several researchers have responded

Figure 2Integration of CAD

CAM with ERP systemin a next generation

manufacturing setting

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614

to Davisrsquo comments and suggested ways to minimise these weaknesses(Munro 1983 Boynton and Zmud 1984)

Munro and Wheeler (1980) presented a general approach for identifying CSFwithin the context of corporate planning They analysed the process ofdetermining information requirements for organisational control purposes byinterviewing senior middle level managers in a training seminar Thoseprocesses include ` understand business unit objectives identify CSF andidentify the performance measures and standards for each CSF identify datarequired to measure performance and identify decisions and informationrequired implementing the planrsquorsquo From these processes they concluded that theCSF method and the performance measures and standards for each CSF canhelp management information systems by providing required managementinformation They also indicated that identifying CSF within the context oforganisation planning processes could overcome the potential difficulties notedby Davis

In response to Davisrsquos comments Munro (1983) compared the resultsobtained from Rockartrsquos CSF study (1982) and Martinrsquos CSF study (1982ab)Munro also examined both authorsrsquo articles in detail and compared the articlesrsquocitations and descriptions as well as their interviews with senior ITISmanagers He commented that the results from these two studies wereinterrelated and quite similar He also concluded that the results from CSFmethods are reasonable and that the CSF approach is a reliable techniquewhile acknowledging that the CSF approach could not be completely free fromthe bias of an interviewerrsquos interests and perceptions unless the interviewerswere skilful (Munro 1983)

In their 1984 study Boynton and Zmud concluded that the weaknessesidentified by Davies that may occur when using the CSF method can be largelyovercome through careful application of the technique They conducted twocase studies one is a study of a financial services firm while the other was astudy of a state university From their experience there are guidelines foreffective application of CSF

CSF are an excellent tool for information resource planning The CSFmethod seems particularly useful for organisations considering a moreaggressive IT posture

The use of a prototype is recommended as a means of productdevelopment

The individual managing the CSF effort should have a throughunderstanding of the organisation or should be literate in theorganisationrsquos principal area of business

It is useful to identify and cultivate a senior-level manager to championthe project

Their study suggests that organisations employing the CSF methodappropriately have many strengths The reliability of the CSF method can be

Critical successfactors forintegration

615

achieved when there is a structured design process using CADCAM systemsand that in ITIS planning Davisrsquo criticisms can be overcome by interviewingmanagers across a diagonal slice of the organisation

Benbasat (1984) suggested that the CSF approach could be considered in thesame classification as information based on a management by objectiveapproach He indicated that the CSF approach could be a system analysis toolfor eliciting executiversquos information requirements at the management controllevel CSF could be a means of supporting system planning and could grantsuccessful competitive performance for the organisation Since he did notexplicitly criticise the CSF method his support of the CSF approach iswarranted In addition Soliman and Clark (1996) concluded that the systemrsquosvalue is an important CSF for managing implementation of knowledge-basedsystems

Zahedi (1987) suggested and developed reliability as the measure ofinformation system success based on CSF He attempted to provide atheoretical framework for measuring information system success based onCSF His research used Rockartrsquos (1982) data to identify and build a hierarchicalconfiguration of the observed CSF of the MIS The study also used the datafrom Martinrsquos (1982ab) studies to verify the construction of the ITISconfiguration derived from Rockartrsquos data Zahedirsquos verification indicated thatthe developed CSF configuration could be applied to other sample data withsome minor modification Based on the derived CSF configuration Zahedigenerated a reliability measure for information systems defined as ` theprobability that the system works successfully in achieving its objectivesunder a given set of environmental conditionsrsquorsquo Zahedi also presentednumerical examples and demonstrated how reliability measures can be utilisedin evaluating IS projects in costbenefit analysis Based on the strengths of theCSF research approach mentioned above and methods for dealing with criticalcomments there appears to be some confidence and support for obtaining CSFfor integration of CADCAM systems with ERP systems

During the past decade more extensive studies have attempted to overcomethe weakness attributed to CSF and have broadened the concept to severaldifferent areas These applications could utilise CSF for

strategic guidelines at board of directorsrsquo level (Ferguson and Dickinson1982)

information requirements and corporate planning (Munro and Wheeler1980 Boynton and Zmud 1984)

management decision process (Rockart and Crescenzi 1984)

crises communications (Dilenschneider and Hyde 1985)

ITIS planning (Shank et al 1985)

information satisfaction in the small business environment (Dickinsonet al 1984 DeLone 1988 Montazemi 1988)

financial services (Miller and Doyle 1987) and

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616

information centres or ITIS organisations performance (Magal and Carr1988 Raghunathan et al 1989 Bergeron et al 1993)

Drawing from these studies we provide a research framework to identifyCSF for the integration of CADCAM systems with ERP systems Theliterature reviewed in this study is based on the idea that successfullymanaged integration of CADCAM systems with ERP systems depends onCADCAM management and the interactions among CADCAM resources(CADCAM staff hardware and application software) and users because` the success of the information system depends on the social structures andinteractions that prevail during and after the development processrsquorsquo(Lyytinen 1987)

We also review the literature related to ITIS managersrsquo perceptions ofimplementation success Several studies have examined the relationshipbetween CSF of IS managers and CSF of ITIS implementation success Theyassert that if a section of a proposed system being considered is very importantto the manager this section usually performs better than others Miller andDoyle (1987) also reported that all the identified performance measures weresignificantly related to the CSF of ITIS managers If this relationship holdstrue the ITIS managersrsquo perceptions of importance could indicate areas criticalfor information system performance

Statement of the problemMuch has been written over the past 20 years on the success of ITimplementation in organisations but nothing has been published on thesuccess of integration of CADCAM and ERP systems It is important toinvestigate if there is any relationship between the use of CADCAMsystems in manufacturing and the performance of manufacturers Amongthe research questions that need to be answered one must include thefollowing

Can CADCAM systems be used as strategic tools to improve thecompetitive position of organisations

Have organisations taken advantage of this potential or have theysquandered the opportunity

Are organisation users happy with the system installed

Is the installed system both safe to use and reliable

To answer these questions we propose to focus on two main performanceindicators namely

(1) Manufacturing costs

(2) Customer satisfaction in terms of quality and delivery time

To date there have not been any published surveys attempting to link theintegration of CADCAM systems with the performance of organisations

Critical successfactors forintegration

617

There are several questions to be answered about CADCAM integration withERP systems in manufacturing organisations In the research that we proposewe will investigate if

manufacturing companies who integrated CADCAM with ERP systemshave reduced their manufacturing costs

companies who integrated CADCAM with ERP systems are more likelyto increase their customersrsquo satisfaction in terms of quality and deliverytime

manufacturing companies who integrated CADCAM with ERP systemsare likely to improve their strategic advantage in terms ofmanufacturing costs and customers satisfaction

Grounded theory investigation (GTI)GTI in management can be extremely valuable (Tantoush 1998) A panel ofmanagement experts assisted in the constructions of the CSF for CADCAMintegration with ERP systems Members of the panel comprised one chiefengineer one engineering director two design engineers one productionmanager one quality control manager and one purchasing manager The chiefengineer takes the role of moderator of the group An effective group moderatorprepares a discussion guide to help ensure that the group covers all CSF ofinterest It is the moderatorrsquos job to make sure that everyone gets a chance tospeak and to ask questions to clarify topics (CSF and CADCAM integrationwith ERP systems) that have been introduced into the discussion Thecombined effort of the group is to achieve cost savings time-savings qualityand efficiency Using the grounded theory approach the group could beexpected to identify CSF for the successful integration of CADCAM with ERPsystems

Research modelThe research model used in this study is based on the CSF study of Rockart(1982) modified according to the studies of Martin (1982ab) DeLone (1988)Miller et al (1987) and Bergeron et al (1993)

Figure 3 shows a diagram summarising the proposed research modelThe variables in this model can be categorised into the following eight areas

that might determine the success of the integration of CADCAM with ERPsystems

(1) CADCAM usersrsquo appreciation of integration

(2) communication between design office and other users

(3) design office services and support functions

(4) management commitment and support

(5) organisational effectiveness

(6) training of CADCAM staff on ERP system

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(7) security of CADCAM interface and

(8) user friendliness of ERP systems

Due to the restricted application of CADCAM a large sample may not bepossible However this study will employ a survey for randomly selectedengineers and engineering managers in CADCAM offices Several empiricalstudies have found a positive relationship between IT success and managersrsquoperceptions The perceptions of engineers and engineering managers will bechosen because of their professional qualifications interest and theirknowledge concerning problems with the system

Significance of this researchThe results of this study may provide a contribution to both academic researchand manufacturing management for CSF studies as well as for the integrationof CADCAM with ERP systems Identifying CSF could help focus futureresearch on questions that have a significant impact on decisions in regard tothe integration of CADCAM with other systems Findings may help extend theexisting knowledge on CADCAM implementation research Based on theexpected findings the risk or dark side of CADCAM integration eg hiddenconversion cost data corruption caused by inconsistencies between ERPdatabases and the server database etc may also be identified in furtherstudies

Managers could be expected to utilise the identified integration CSF to adoptmore successful CADCAM implementation strategies in the future Theexpected CSF could also be used by production managers both as evaluationcriteria for system planning and control and as a facilitator of communicationbetween production departments and their users With better utilisation and

Figure 3The conceptual researchmodel

Critical successfactors forintegration

619

better understanding concerning the integrated CADCAM organisationsmight be better able to achieve cost savings time saving quality and efficiencyin their new systems Thus the benefits of successful integration couldimprove the corporate utilisation of information systems resources and assistin achieving a competitive advantage for organisations (Symon and Clegg1991)

Measuring performance and effectivenessTo evaluate the success of CADCAM integration one should measure systemsperformance and effectiveness Hamilton and Chervany (1981a) report the needfor performance measures for ITIS They claimed that ` Evaluating systemeffectiveness in meaningful terms has been the most difficult aspect of the ITISimplementation processrsquorsquo In their study Hamilton and Chervany (1981b)described and compared the effects of evaluator viewpoints on systemeffectiveness in terms of resources-oriented perspectives (or efficiency) andinfluences-oriented perspectives (or effectiveness) Some of their evaluationitems (for example MIS personnel productivity computer performance serviceand usersrsquo attitude) are identical to the components of CSF from Rockart (1982)Martin (1982ab) and later CSF studies Some of Hamilton and Chervanyrsquosevaluation items (productivity service usersrsquo attitude and computerperformance) will be included in the research instrument Zmud (1979)suggested that organisational factors ITIS usage top managementrsquos supportdecisions performance personal and interpersonal characteristics usersrsquoattitude ITIS staff characteristics and ITIS policies influence the success ofsystem implementation (Symon and Clegg 1991) Zmud suggests also thatresearch should examine system usage user satisfaction and user performancefor ITIS success All these factors will be included in the research instrument

Ginzberg (1981) attempted to track and manipulate the controllablevariables by developing tools for system designers and users He suggestedthat two management approaches can increase the effectiveness of the systemdevelopment process One approach is to identify those variables that are bothespecially important to the success of system development and controllable bythe user or the system designer The other approach is to manage thedevelopment process of the system designer and user by utilising developmenttools and procedures Ginzberg conducted a field study in a large US bank andconcluded ` the degree of realism of userrsquos pre-implementation expectationswas positively correlated with a range of project success measures bothattitudinal and behaviouralrsquorsquo

According to Rockart and Flanneryrsquos (1983) definition of end-users an ITISmanager could serve as a system designer and user as well FollowingGinzbergrsquos suggestion this study will also attempt to examine the ITISmanagerrsquos view of the importance of ITIS implementation success Thusengineers engineering managers and ITIS managers will be chosen as theresearch subject for this study (Tantoush 1998)

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620

Yaverbaum (1988) applied the ` job diagnostic surveyrsquorsquo to 84 end-users toinvestigate motivation and satisfaction in a computer environmentYaverbaumrsquos results indicate that task factors organisational factors(management support management activity and training program) and userfactors (cognitive differences users characteristics attitude age past trainingeducation job experience and user participation) affecting user satisfaction arecrucial to the success of information systems Since her results support Zmudrsquos(1979) study this study will also include organisational factors task factorsand user factors in the research instrument

MethodologyYin (1994) suggested that a case study approach is an appropriate choice ofresearch method for this type of problem This is particularly true when

the researcher has little control over the environment

the events under investigation are contemporary and

the context of the research is important

The researchers do not have any control over the CADCAM and ERPenvironments that organisations adopt In addition since the CADCAM andERP systems are at present widely used in industry the topic of research iscontemporary Furthermore there is no published research on this topic andthe outcome is likely to affect the investment and productivity of these systemsAccordingly a case study approach is suitable for this analysis

Hypotheses for this study can be grouped according to the expected CSF ofCADCAM integration with ERP Systems The hypotheses presented below arenumbered for identification on the basis of grounded theory approach

Statement of hypothesesThe development of hypotheses based on the expected CSF of the methods andprocedures used to assess the degree of success of CADCAM integration withERP systems

CADCAM usersrsquo appreciation of integrationA study by Ives and Olson (1984) reviewed 22 ITIS-related studies Only eightstudies claimed a positive relationship between user involvement and systemsuccess Seven studies claimed a negative relationship while the other sevenstudies claimed mixed results Of the seven studies that investigated therelationship between user involvement and userrsquos attitude toward the systemonly one study reported significant results with user involvement and userrsquosattitude Other studies by Baroudi et al (1986) Tait and Vessey (1988) andBarki and Hartwick (1994) point to a relationship between usersrsquo involvementand the success of integration of CADCAM systems with ERP systemsAccordingly this research proposes to examine the relationship of these two

Critical successfactors forintegration

621

variables (user involvement and usersrsquo attitude) and the success of CADCAMintegration with ERP systems

H1 User appreciation (user involvement and usersrsquo attitude) is positivelyrelated to the success of CADCAM integration with ERP systems

Communication between design office and other usersIn the case of integration of CADCAM with an ERP system the design officecould improve communication and assist users in communication with thedesign office Thus users could be less anxious and their attitude towardimplementation more favourable (Rainer et al 1992) In the environment ofCADCAM communication with users is more crucial and complex than in theclassical environment of computing Therefore this study stresses theimportance of communication between users and the design office andhypothesises that there will be a positive relationship of CADCAM integrationwith ERP system success

H2 Communication between users and the design office is positivelyrelated to the success of CADCAM integration with an ERP system

Design office services and support functionsThe basic function of the design office is to manage design and CADCAMresources and to co-ordinate and facilitate CADCAM functioning for users Aneffective design office provides drawings and Bills of materials (BoM) with acompetent design staff supporting production Services such as technicalsupport trouble shooting consulting and training are critical design officefunctions In their study Magal and Carr (1988) found that ITIS staffrsquosunderstanding of the usersrsquo business and problems plus standardisedhardware and software to be important factors for the quality of ITIS supportservices This study proposes a positive relationship between the success ofCADCAM integration with an ERP system and the support services of thedesign office

H3 The design office supporting services is positively related to thesuccess of CADCAM integration with an ERP system

Management commitment and supportThe success or failure of any business effort is often determined by the amountof top management support (Rockart 1982 Ives and Olson 1984) Engineeringand production managers actively participate in the organisationrsquos planningprocess with senior managers and top managers help engineering andproduction management and line management to overcome the problem ofunderstanding top managementrsquos objectives thus facilitating goodcommunications among management levels Engineering and productionmanagers who participate in the planning process also tend to promotecommunication and a favourable relationship with top management Thussuch managers will more likely perceive the changing business objectives andthus help engineering and production management to achieve the new business

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622

objectives Top management would thus acknowledge the importance of CADCAM integration and generate an appreciation of CADCAM managementissues Top management that is better able to understand the idea or theproblems of CADCAM management during the process of CADCAMintegration will have a better image of the CADCAM integration phenomenon

Ginzberg (1981) suggested that engineering and production managementpropose a strategic plan of CADCAM integration with an ERP system to topand line management including the reasons for the change its importance tothe organisation the impacts likely to result from it and the procedure forevaluating it Such criteria will be important in determining a userrsquos response toan ITIS change from the strategic plan studied and proposed by the ITISmanager Thus under these circumstances top and line management would bemore likely to commit to and support CADCAM objectives and offer co-operation for successful CADCAM integration with an ERP system Thisstudy examines this positive relationship

H4 Management commitment and support are positively related to thesuccess of CADCAM integration with ERP systems

Organisational effectivenessAny management task should be designed to achieve the organisationrsquosobjectives similarly CADCAM integration with ERP system should bedesigned to achieve an organisationrsquos objectives If CADCAM integrationimproves an organisationrsquos effectiveness then integration is more likely to beregarded as a success During such major organisational changes CADCAMsupport may ease the tedious maintenance of drawings BoM andspecifications thus improving the quality of managersrsquo decision making andeasing the management of change This study examines the relationshipbetween the success of CADCAM integration with an ERP system andorganisational effectiveness

H5 Organisational effectiveness is positively related to the success of CADCAM integration with an ERP system

Training of CADCAM staff on ERP systemsHylas et al (1989) indicated that not all systems applications are appropriatefor implementation Selection of the wrong business functional area or thewrong application or lack of adequate training can result in system failure Notonly lack of ITIS implementation experience can cause an ITIS manager tochoose an inappropriate application incompetent ITIS staff may havedifficulty recording or developing software for ITIS implementation while adeficiency of software packages for ITIS implementation can cause rigidityand difficulty for ITIS implementation (Hoffman 1992)

Lucas (1981) suggested that human factors affect the successfulimplementation of a new ITIS more obviously than do organisationalfactors In addition when applications are moving from the mainframe tothe desktop compatibility should be maintained To ensure software

Critical successfactors forintegration

623

compatibility the design office should review syntax ERP softwarefeatures and semantics and external behaviour and provide training to itsusers This study hypothesises a positive relationship between trainingCADCAM staff on ERP system and the success of CADCAM integrationwith an ERP system

H6 Training CADCAM staff on ERP systems is positively related to thesuccess of CADCAM integration with ERP systems

Security of CADCAM interfaceApplications should be acquired to solve business problems not make problemsData are interchanged between CADCAM system and other applications such asan ERP system through the interface Many older applications often employunique antiquated and somewhat incompatible software coupled withunsophisticated security protocols One of the design office functions is to useCADCAM systems to design products and create confidential design documentssuch as BoM Therefore the security of files and data bases used by the CADCAMsystem become a major concern Accordingly the interface and system integritywill be an integral component of ERP implementation The interface integritycomponent is needed to ensure an appropriate level of internal control into theCADCAM databases The systems integrity component is required to focus onestablishing an ERP-based robust environment in which the CADCAM-ERPinterface operates The development of the integrity environment needs to mitigatethe organisational risks and ensure that the controls implemented in the system donot encumber the business The interface between CADCAM and otherapplications needs to be designed specifically for cross-platform use This studyexamines the positive relationship between the security of the CADCAM interfaceand CADCAM integration success

H7 The security of the CADCAM interface is positively related to thesuccess of CADCAM integration with the ERP system

User friendliness of ERP systemsIf the ERP system chosen is a complicated system involving significantamounts of data manipulation this could be inadequate for successful CADCAM integration The reason for this inadequacy is that complicated ERPsystems may cause difficulties for users and hence communication with theCADCAM system The candidate application for ITIS implementation shouldbe simple familiar and based on an applicationrsquos basic merits not on its politics(Klein 1991) Accordingly organisations should carefully evaluate potentialERP systems for implementation This study examines the positiverelationship between the degree of ERP user friendliness and the success ofCADCAM integration with the ERP system

H8 The degree of ERP user friendliness is positively related to the successof CADCAM integration with the ERP system

IJOPM2156

624

Research subjectsIn this study we used CADCAM users (engineers engineering managers) frombusiness organisations as subjects The reason for selecting these subjects wasthat ITIS system success measures have in past studies been significantlyrelated to the perceived CSF of ITIS managers The studies from Miller andDoyle (1987) and from Raghunathan et al (1989) both cited some other casestudies andor empirical studies that uphold this relationship Miller and Doyleand Raghunathan et al also have examined and supported this concept in theirstudies Therefore if an ITIS or CADCAM manager administers the CADCAM function corresponding to hisher CSF heshe can improve CADCAMperformance and effectiveness Thus this research will attempt to extract CSFfor CADCAM in next generation manufacturing organisations from a CADCAM usersrsquo perspective

Survey instrumentThis research used a survey-based field study of ED and production managersto investigate and test the above eight hypotheses Surveys and questionnaireswere used to facilitate collection of the required data lower sampling costspeed-up the time frame and make the required sampling size According toChurchill (1979) the research instrument must meet the requirements ofaccuracy and validity Several procedures were adopted to ensure and verifythese criteria These procedures are as follows

(1) Non-response bias Non-response bias was not found in the sampletested The non-response bias was calculated and tested by comparingthe survey results obtained from the respondents to the entire samplebecause of its availability at the designing stage of the questionnaire

(2) Reliability The instrument was found to be reliable because theCronbachrsquos coefficient alpha (not) for the instrument was found to beabove 06 (Churchill 1979 Nunnally 1978) Accordingly the reliability(stability and consistency of the measuring instrument) is assured

(3) Content validity Content validity examined the sampling adequacy ofthe instrument by

a complete and extensive inspection of the literature for all possibleitems to be included in the measurement

asking a group of academics consultants and executivesmanagers tocriticise the description and clarity of the questionnaire

the questionnaire was tested with members of the focus group prior tothe final survey The modification of the questionnaire was then basedon these expertsrsquo opinions

(4) Construct validity Construct validity tests were performed using a factoranalysis to

Critical successfactors forintegration

625

assess construct validity ie to determine the set of CSF by choosing aparticular factor loading pattern thus achieving content validity andconstruct validity

eliminate the unnecessary items from the instrument by checking thefactor loading and utilising factor extraction and rotation optionsunnecessary variables can be eliminated

(5) Practicality This criterion refers to economic factors convenience ofexecution and interpretability of data and the results (Emory andCooper 1991) This study considered the trade-off among researchvariables budget ease of management and estimated which researchinstrument best accommodated the objectives of this research study

ConclusionsA major problem with the integration of CADCAM with ERP systems is thatlittle is known about factors that contribute to or detract from its successKalakota (1997) argues that not all systems are ideal candidates forimplementation Selection of the wrong system or the wrong businessfunctional area can result not only in systems failure but can also cause tensionbetween departments and usersrsquo departments (Cronin 1996 Mougayar 1997Kalakota 1997) Many analysts believe that it is difficult to estimate the hiddencost and the staffrsquos attitude toward implementation (Kalakota 1997)

There are two situations when the organisation becomes concerned with theintegration of CADCAM with ERP systems These are

(1) when an organisation acquires CADCAM after it has already afunctioning ERP system or

(2) when the organisation implements the ERP system after it has a fullyoperational CADCAM system

In general these two situations generate two different sets of success factorsfor the integration of CADCAM with the ERP system Thus identifying CSFfor integration could help minimise risks associated with the integration andhelp promote the success of both CADCAM and ERP systems Therefore theidentification of strategies for integration of CADCAM with the ERP systemwill be the main purpose of this study

We propose that there is a significant direct relationship between theintegration of CADCAM with the ERP system and a number of CSF Severalbenefits and contributions are expected from establishing these CSF such as

Providing a checklist for integration of CADCAM with the ERP systemThat is from the findings managers can attend to what seems to be themost important activities and select an approach more likely to achievesuccess in integration of CADCAM with the ERP system

Providing a guideline for CADCAM and ERP resource managementManagers may be able to use the CSF findings of this research for better

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CADCAM and ERP resources management such as investment inhardware software and human resources

Identifying information needs The CSF may be useful for managers toidentify their information needs for CADCAM and ERP systems andhence understand more about the required support services that usersneed suggested by Rockart (1979 1982)

Evaluating the performance of the design office The CSF may be usefulas criteria for users executives and managers to evaluate theperformance of the design office

Furnishing a foundation for communication The CSF can provide afoundation for communication between the users of CADCAM and ERPsystems

Strengthening organisational goals CSF can help the wholeorganisation understand the most important criteria and enhance itscompetitive stance

Providing a base for the future research Further research can expand onthe findings from this study For example the eight hypothesesdeveloped here should be tested and the results should be madeavailable to researchers and practitioners in the field of manufacturingmanagement

Many organisations have integrated their CADCAM with ERP systemswithout theoretical or academic rationalisation Not all implementation effortshave been successful So this research aims to identify CSF for CADCAMintegration with ERP systems The research model is based on the classic CSFstudies by Rockart (1982) and Martin (1982a b) along with others identified inthe newer literature

As this research assesses the evolution of CADCAM integration with ERPthe results from this study will serve as a foundation for further researchAdditional research may provide a better understanding and thereby improveandor confirm the findings of this research

RecommendationsA possible future study could conduct a limited number of case studies tocompare clarify and evaluate the possible response bias from this study Thereis no guarantee that the selected CSF are complete and completeness is ajudgemental limitation of this research

The possible future study of failsuccess or riskreturn factors may be ofassistance to management of organisations with CADCAM and ERP systemsOther studies could compare the success of CADCAM and ERP integration bytype of organisations annual sales number of employees and years of usingthe two systems In other words different types of organisations different sizesof organisations and different experiences in CADCAM and ERP operationmay relevant to compare the success of CADCAM and ERP integration

Critical successfactors forintegration

627

References

Barki H and Hartwick J (1994) `Measuring user participation user involvement and userattitudersquorsquo MIS Quarterly Vol 13 No 1 pp 59-82

Baraudi JJ Olson MH and Ives B (1986) `An empirical study of the impact of userinvolvement on system usage and information satisfactionrsquorsquo Communications of the ACMVol 29 No 3 pp 232-8

Bergeron F Rivard S and Raymond L (1993) `Assessment of end-user computing froman organisational perspectiversquorsquo Information Resources Management Journal Winterpp 14-25

Boynton AC and Zmud RW (1984) `An assessment of critical success factorsrsquorsquo SloanManagement Review Vol 25 No 4 Summer pp 17-27

Churchill GA Jr (1979) `A paradigm for developing better measures of marketing constructsrsquorsquoJournal of Marketing Research February pp 67-73

Clark J and Soliman F (1996) `Appraising knowledge-based system investmentrsquorsquo Proceedingsof the 3d European Conference on the Evaluation of Information Technology BathUniversity Bath 29 November pp 143-254

Clark J and Soliman F (1999) `A graphical method for assessing knowledge-basedinvestmentsrsquorsquo Journal of Logistics and Information Management Vol 12 No 1

Cronin MJ (1996) Global Advantage on the Internet Van Nostrand Reinhold New York NY

Davis GB (1979) ` Comments on the critical success factors method for obtaining managementrequirements in article by John F Rockart `Chief executives define their own data needsrsquorsquorsquoHarvard Business Review Vol 57No 2 March-April pp 81-93

Davis GB (1980) ` Letter to the Editorrsquorsquo MIS Quarterly Vol 4 No 2 June pp 69-70

DeLone WH (1988) ` Determinants of success for computer usage in small businessrsquorsquo MISQuarterly Vol 12 No 1 March pp 51-61

Dickinson RA Ferguson CR and Sircar S (1984) ` Critical success factors and smallbusinessrsquorsquo American Journal of Small Business January-March Vol III pp 49-57

Dilenschneider RL and Hyde RC (1985) `Crisis communications planning for the unplannedrsquorsquoBusiness Horizons January-FebruaryVol 28 No 1 pp 35-8

Emory WC and Cooper DR (1991) Business Research Methods 4th ed Irwin Homewood IL

Ferguson CR and Dickinson R (1982) `Critical success factors for directors in the eightiesrsquorsquoBusiness Horizons May-June Vol 25 No 3 pp 14-18

Garcia MR (1997) ` Knowledge centralrsquorsquo InformationWeek Vol 649 pp 252-6

Ginzberg MJ (1981) ` Early diagnosis of MIS implementation failure promising results andunansweredquestionsrsquorsquo Management Science April Vol 27 No 4 pp 459-78

Gustin CM Stank TP and Daugherty PJ (1994) ` Computerization supporting integrationrsquorsquoInternational Journal of Physical Distribution and Logistic Management Vol 24 No 1pp 11-16

Hamilton S and Chervany NL (1981a) ` Evaluating information system effectiveness plusmn Part Icomparing evaluation approachesrsquorsquo MIS Quarterly September Vol 5 No 3 pp 55-69

Hamilton S and Chervany NL (1981b) ` Evaluating information system effectiveness plusmn Part IIcomparing evaluator viewpointsrsquorsquo MIS Quarterly DecemberVol 5 No 4 pp 79-86

Hoffman T (1992) ` Users share stories of downsizing pros consrsquorsquo Computerworld OctoberVol 5 p 7

Hylas RE Gordon B and Dinetz GR (1989) `The upside of downsized systemsrsquorsquo BestrsquosReview December pp 78-82

Critical successfactors forintegration

613

Critical success factors (CSF) for CADCAM integrationRockart (1979) originated the CSF approach and has popularised it throughhelping executives identify their information needs Rockartrsquos CSF approachwas based on that of D Ronald Daniel apparently the person first to discussthe concept of ` success factorsrsquorsquo in the management literature (Rockart 1979)Rockart defined CSF as the limited number of areas in which results if they aresatisfactory will ensure successful competitive performance for theorganisation They are the few key areas where ` things must go rightrsquorsquo for thebusiness to ` flourishrsquorsquo He argued that managers need appropriate informationon their management functions and that performance in each area should bemeasured continually It follows that such information should be madeavailable by organizations as necessary for enhanced managersrsquo performance(Soliman and Soar 1997)

Davis (1979 1980) criticised the use of the CSF approach because it relied onmanagersrsquo responses which may be incorrect incomplete or insufficient andare constrained by human behaviour According to Davis these constraints are` bounded rationally human ability to evaluate probabilities and to identifycausality and the biasing effect of availability of datarsquorsquo Thus in his view theCSF method will elicit the information that executives feel they need not theinformation that executives actually do need In other words managers mightunintentionally invent overlook or fail to mention CSF Davis (1980)recommended further research on the use of explicit models and implicitmodels to elicit information requirements Several researchers have responded

Figure 2Integration of CAD

CAM with ERP systemin a next generation

manufacturing setting

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614

to Davisrsquo comments and suggested ways to minimise these weaknesses(Munro 1983 Boynton and Zmud 1984)

Munro and Wheeler (1980) presented a general approach for identifying CSFwithin the context of corporate planning They analysed the process ofdetermining information requirements for organisational control purposes byinterviewing senior middle level managers in a training seminar Thoseprocesses include ` understand business unit objectives identify CSF andidentify the performance measures and standards for each CSF identify datarequired to measure performance and identify decisions and informationrequired implementing the planrsquorsquo From these processes they concluded that theCSF method and the performance measures and standards for each CSF canhelp management information systems by providing required managementinformation They also indicated that identifying CSF within the context oforganisation planning processes could overcome the potential difficulties notedby Davis

In response to Davisrsquos comments Munro (1983) compared the resultsobtained from Rockartrsquos CSF study (1982) and Martinrsquos CSF study (1982ab)Munro also examined both authorsrsquo articles in detail and compared the articlesrsquocitations and descriptions as well as their interviews with senior ITISmanagers He commented that the results from these two studies wereinterrelated and quite similar He also concluded that the results from CSFmethods are reasonable and that the CSF approach is a reliable techniquewhile acknowledging that the CSF approach could not be completely free fromthe bias of an interviewerrsquos interests and perceptions unless the interviewerswere skilful (Munro 1983)

In their 1984 study Boynton and Zmud concluded that the weaknessesidentified by Davies that may occur when using the CSF method can be largelyovercome through careful application of the technique They conducted twocase studies one is a study of a financial services firm while the other was astudy of a state university From their experience there are guidelines foreffective application of CSF

CSF are an excellent tool for information resource planning The CSFmethod seems particularly useful for organisations considering a moreaggressive IT posture

The use of a prototype is recommended as a means of productdevelopment

The individual managing the CSF effort should have a throughunderstanding of the organisation or should be literate in theorganisationrsquos principal area of business

It is useful to identify and cultivate a senior-level manager to championthe project

Their study suggests that organisations employing the CSF methodappropriately have many strengths The reliability of the CSF method can be

Critical successfactors forintegration

615

achieved when there is a structured design process using CADCAM systemsand that in ITIS planning Davisrsquo criticisms can be overcome by interviewingmanagers across a diagonal slice of the organisation

Benbasat (1984) suggested that the CSF approach could be considered in thesame classification as information based on a management by objectiveapproach He indicated that the CSF approach could be a system analysis toolfor eliciting executiversquos information requirements at the management controllevel CSF could be a means of supporting system planning and could grantsuccessful competitive performance for the organisation Since he did notexplicitly criticise the CSF method his support of the CSF approach iswarranted In addition Soliman and Clark (1996) concluded that the systemrsquosvalue is an important CSF for managing implementation of knowledge-basedsystems

Zahedi (1987) suggested and developed reliability as the measure ofinformation system success based on CSF He attempted to provide atheoretical framework for measuring information system success based onCSF His research used Rockartrsquos (1982) data to identify and build a hierarchicalconfiguration of the observed CSF of the MIS The study also used the datafrom Martinrsquos (1982ab) studies to verify the construction of the ITISconfiguration derived from Rockartrsquos data Zahedirsquos verification indicated thatthe developed CSF configuration could be applied to other sample data withsome minor modification Based on the derived CSF configuration Zahedigenerated a reliability measure for information systems defined as ` theprobability that the system works successfully in achieving its objectivesunder a given set of environmental conditionsrsquorsquo Zahedi also presentednumerical examples and demonstrated how reliability measures can be utilisedin evaluating IS projects in costbenefit analysis Based on the strengths of theCSF research approach mentioned above and methods for dealing with criticalcomments there appears to be some confidence and support for obtaining CSFfor integration of CADCAM systems with ERP systems

During the past decade more extensive studies have attempted to overcomethe weakness attributed to CSF and have broadened the concept to severaldifferent areas These applications could utilise CSF for

strategic guidelines at board of directorsrsquo level (Ferguson and Dickinson1982)

information requirements and corporate planning (Munro and Wheeler1980 Boynton and Zmud 1984)

management decision process (Rockart and Crescenzi 1984)

crises communications (Dilenschneider and Hyde 1985)

ITIS planning (Shank et al 1985)

information satisfaction in the small business environment (Dickinsonet al 1984 DeLone 1988 Montazemi 1988)

financial services (Miller and Doyle 1987) and

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616

information centres or ITIS organisations performance (Magal and Carr1988 Raghunathan et al 1989 Bergeron et al 1993)

Drawing from these studies we provide a research framework to identifyCSF for the integration of CADCAM systems with ERP systems Theliterature reviewed in this study is based on the idea that successfullymanaged integration of CADCAM systems with ERP systems depends onCADCAM management and the interactions among CADCAM resources(CADCAM staff hardware and application software) and users because` the success of the information system depends on the social structures andinteractions that prevail during and after the development processrsquorsquo(Lyytinen 1987)

We also review the literature related to ITIS managersrsquo perceptions ofimplementation success Several studies have examined the relationshipbetween CSF of IS managers and CSF of ITIS implementation success Theyassert that if a section of a proposed system being considered is very importantto the manager this section usually performs better than others Miller andDoyle (1987) also reported that all the identified performance measures weresignificantly related to the CSF of ITIS managers If this relationship holdstrue the ITIS managersrsquo perceptions of importance could indicate areas criticalfor information system performance

Statement of the problemMuch has been written over the past 20 years on the success of ITimplementation in organisations but nothing has been published on thesuccess of integration of CADCAM and ERP systems It is important toinvestigate if there is any relationship between the use of CADCAMsystems in manufacturing and the performance of manufacturers Amongthe research questions that need to be answered one must include thefollowing

Can CADCAM systems be used as strategic tools to improve thecompetitive position of organisations

Have organisations taken advantage of this potential or have theysquandered the opportunity

Are organisation users happy with the system installed

Is the installed system both safe to use and reliable

To answer these questions we propose to focus on two main performanceindicators namely

(1) Manufacturing costs

(2) Customer satisfaction in terms of quality and delivery time

To date there have not been any published surveys attempting to link theintegration of CADCAM systems with the performance of organisations

Critical successfactors forintegration

617

There are several questions to be answered about CADCAM integration withERP systems in manufacturing organisations In the research that we proposewe will investigate if

manufacturing companies who integrated CADCAM with ERP systemshave reduced their manufacturing costs

companies who integrated CADCAM with ERP systems are more likelyto increase their customersrsquo satisfaction in terms of quality and deliverytime

manufacturing companies who integrated CADCAM with ERP systemsare likely to improve their strategic advantage in terms ofmanufacturing costs and customers satisfaction

Grounded theory investigation (GTI)GTI in management can be extremely valuable (Tantoush 1998) A panel ofmanagement experts assisted in the constructions of the CSF for CADCAMintegration with ERP systems Members of the panel comprised one chiefengineer one engineering director two design engineers one productionmanager one quality control manager and one purchasing manager The chiefengineer takes the role of moderator of the group An effective group moderatorprepares a discussion guide to help ensure that the group covers all CSF ofinterest It is the moderatorrsquos job to make sure that everyone gets a chance tospeak and to ask questions to clarify topics (CSF and CADCAM integrationwith ERP systems) that have been introduced into the discussion Thecombined effort of the group is to achieve cost savings time-savings qualityand efficiency Using the grounded theory approach the group could beexpected to identify CSF for the successful integration of CADCAM with ERPsystems

Research modelThe research model used in this study is based on the CSF study of Rockart(1982) modified according to the studies of Martin (1982ab) DeLone (1988)Miller et al (1987) and Bergeron et al (1993)

Figure 3 shows a diagram summarising the proposed research modelThe variables in this model can be categorised into the following eight areas

that might determine the success of the integration of CADCAM with ERPsystems

(1) CADCAM usersrsquo appreciation of integration

(2) communication between design office and other users

(3) design office services and support functions

(4) management commitment and support

(5) organisational effectiveness

(6) training of CADCAM staff on ERP system

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(7) security of CADCAM interface and

(8) user friendliness of ERP systems

Due to the restricted application of CADCAM a large sample may not bepossible However this study will employ a survey for randomly selectedengineers and engineering managers in CADCAM offices Several empiricalstudies have found a positive relationship between IT success and managersrsquoperceptions The perceptions of engineers and engineering managers will bechosen because of their professional qualifications interest and theirknowledge concerning problems with the system

Significance of this researchThe results of this study may provide a contribution to both academic researchand manufacturing management for CSF studies as well as for the integrationof CADCAM with ERP systems Identifying CSF could help focus futureresearch on questions that have a significant impact on decisions in regard tothe integration of CADCAM with other systems Findings may help extend theexisting knowledge on CADCAM implementation research Based on theexpected findings the risk or dark side of CADCAM integration eg hiddenconversion cost data corruption caused by inconsistencies between ERPdatabases and the server database etc may also be identified in furtherstudies

Managers could be expected to utilise the identified integration CSF to adoptmore successful CADCAM implementation strategies in the future Theexpected CSF could also be used by production managers both as evaluationcriteria for system planning and control and as a facilitator of communicationbetween production departments and their users With better utilisation and

Figure 3The conceptual researchmodel

Critical successfactors forintegration

619

better understanding concerning the integrated CADCAM organisationsmight be better able to achieve cost savings time saving quality and efficiencyin their new systems Thus the benefits of successful integration couldimprove the corporate utilisation of information systems resources and assistin achieving a competitive advantage for organisations (Symon and Clegg1991)

Measuring performance and effectivenessTo evaluate the success of CADCAM integration one should measure systemsperformance and effectiveness Hamilton and Chervany (1981a) report the needfor performance measures for ITIS They claimed that ` Evaluating systemeffectiveness in meaningful terms has been the most difficult aspect of the ITISimplementation processrsquorsquo In their study Hamilton and Chervany (1981b)described and compared the effects of evaluator viewpoints on systemeffectiveness in terms of resources-oriented perspectives (or efficiency) andinfluences-oriented perspectives (or effectiveness) Some of their evaluationitems (for example MIS personnel productivity computer performance serviceand usersrsquo attitude) are identical to the components of CSF from Rockart (1982)Martin (1982ab) and later CSF studies Some of Hamilton and Chervanyrsquosevaluation items (productivity service usersrsquo attitude and computerperformance) will be included in the research instrument Zmud (1979)suggested that organisational factors ITIS usage top managementrsquos supportdecisions performance personal and interpersonal characteristics usersrsquoattitude ITIS staff characteristics and ITIS policies influence the success ofsystem implementation (Symon and Clegg 1991) Zmud suggests also thatresearch should examine system usage user satisfaction and user performancefor ITIS success All these factors will be included in the research instrument

Ginzberg (1981) attempted to track and manipulate the controllablevariables by developing tools for system designers and users He suggestedthat two management approaches can increase the effectiveness of the systemdevelopment process One approach is to identify those variables that are bothespecially important to the success of system development and controllable bythe user or the system designer The other approach is to manage thedevelopment process of the system designer and user by utilising developmenttools and procedures Ginzberg conducted a field study in a large US bank andconcluded ` the degree of realism of userrsquos pre-implementation expectationswas positively correlated with a range of project success measures bothattitudinal and behaviouralrsquorsquo

According to Rockart and Flanneryrsquos (1983) definition of end-users an ITISmanager could serve as a system designer and user as well FollowingGinzbergrsquos suggestion this study will also attempt to examine the ITISmanagerrsquos view of the importance of ITIS implementation success Thusengineers engineering managers and ITIS managers will be chosen as theresearch subject for this study (Tantoush 1998)

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620

Yaverbaum (1988) applied the ` job diagnostic surveyrsquorsquo to 84 end-users toinvestigate motivation and satisfaction in a computer environmentYaverbaumrsquos results indicate that task factors organisational factors(management support management activity and training program) and userfactors (cognitive differences users characteristics attitude age past trainingeducation job experience and user participation) affecting user satisfaction arecrucial to the success of information systems Since her results support Zmudrsquos(1979) study this study will also include organisational factors task factorsand user factors in the research instrument

MethodologyYin (1994) suggested that a case study approach is an appropriate choice ofresearch method for this type of problem This is particularly true when

the researcher has little control over the environment

the events under investigation are contemporary and

the context of the research is important

The researchers do not have any control over the CADCAM and ERPenvironments that organisations adopt In addition since the CADCAM andERP systems are at present widely used in industry the topic of research iscontemporary Furthermore there is no published research on this topic andthe outcome is likely to affect the investment and productivity of these systemsAccordingly a case study approach is suitable for this analysis

Hypotheses for this study can be grouped according to the expected CSF ofCADCAM integration with ERP Systems The hypotheses presented below arenumbered for identification on the basis of grounded theory approach

Statement of hypothesesThe development of hypotheses based on the expected CSF of the methods andprocedures used to assess the degree of success of CADCAM integration withERP systems

CADCAM usersrsquo appreciation of integrationA study by Ives and Olson (1984) reviewed 22 ITIS-related studies Only eightstudies claimed a positive relationship between user involvement and systemsuccess Seven studies claimed a negative relationship while the other sevenstudies claimed mixed results Of the seven studies that investigated therelationship between user involvement and userrsquos attitude toward the systemonly one study reported significant results with user involvement and userrsquosattitude Other studies by Baroudi et al (1986) Tait and Vessey (1988) andBarki and Hartwick (1994) point to a relationship between usersrsquo involvementand the success of integration of CADCAM systems with ERP systemsAccordingly this research proposes to examine the relationship of these two

Critical successfactors forintegration

621

variables (user involvement and usersrsquo attitude) and the success of CADCAMintegration with ERP systems

H1 User appreciation (user involvement and usersrsquo attitude) is positivelyrelated to the success of CADCAM integration with ERP systems

Communication between design office and other usersIn the case of integration of CADCAM with an ERP system the design officecould improve communication and assist users in communication with thedesign office Thus users could be less anxious and their attitude towardimplementation more favourable (Rainer et al 1992) In the environment ofCADCAM communication with users is more crucial and complex than in theclassical environment of computing Therefore this study stresses theimportance of communication between users and the design office andhypothesises that there will be a positive relationship of CADCAM integrationwith ERP system success

H2 Communication between users and the design office is positivelyrelated to the success of CADCAM integration with an ERP system

Design office services and support functionsThe basic function of the design office is to manage design and CADCAMresources and to co-ordinate and facilitate CADCAM functioning for users Aneffective design office provides drawings and Bills of materials (BoM) with acompetent design staff supporting production Services such as technicalsupport trouble shooting consulting and training are critical design officefunctions In their study Magal and Carr (1988) found that ITIS staffrsquosunderstanding of the usersrsquo business and problems plus standardisedhardware and software to be important factors for the quality of ITIS supportservices This study proposes a positive relationship between the success ofCADCAM integration with an ERP system and the support services of thedesign office

H3 The design office supporting services is positively related to thesuccess of CADCAM integration with an ERP system

Management commitment and supportThe success or failure of any business effort is often determined by the amountof top management support (Rockart 1982 Ives and Olson 1984) Engineeringand production managers actively participate in the organisationrsquos planningprocess with senior managers and top managers help engineering andproduction management and line management to overcome the problem ofunderstanding top managementrsquos objectives thus facilitating goodcommunications among management levels Engineering and productionmanagers who participate in the planning process also tend to promotecommunication and a favourable relationship with top management Thussuch managers will more likely perceive the changing business objectives andthus help engineering and production management to achieve the new business

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622

objectives Top management would thus acknowledge the importance of CADCAM integration and generate an appreciation of CADCAM managementissues Top management that is better able to understand the idea or theproblems of CADCAM management during the process of CADCAMintegration will have a better image of the CADCAM integration phenomenon

Ginzberg (1981) suggested that engineering and production managementpropose a strategic plan of CADCAM integration with an ERP system to topand line management including the reasons for the change its importance tothe organisation the impacts likely to result from it and the procedure forevaluating it Such criteria will be important in determining a userrsquos response toan ITIS change from the strategic plan studied and proposed by the ITISmanager Thus under these circumstances top and line management would bemore likely to commit to and support CADCAM objectives and offer co-operation for successful CADCAM integration with an ERP system Thisstudy examines this positive relationship

H4 Management commitment and support are positively related to thesuccess of CADCAM integration with ERP systems

Organisational effectivenessAny management task should be designed to achieve the organisationrsquosobjectives similarly CADCAM integration with ERP system should bedesigned to achieve an organisationrsquos objectives If CADCAM integrationimproves an organisationrsquos effectiveness then integration is more likely to beregarded as a success During such major organisational changes CADCAMsupport may ease the tedious maintenance of drawings BoM andspecifications thus improving the quality of managersrsquo decision making andeasing the management of change This study examines the relationshipbetween the success of CADCAM integration with an ERP system andorganisational effectiveness

H5 Organisational effectiveness is positively related to the success of CADCAM integration with an ERP system

Training of CADCAM staff on ERP systemsHylas et al (1989) indicated that not all systems applications are appropriatefor implementation Selection of the wrong business functional area or thewrong application or lack of adequate training can result in system failure Notonly lack of ITIS implementation experience can cause an ITIS manager tochoose an inappropriate application incompetent ITIS staff may havedifficulty recording or developing software for ITIS implementation while adeficiency of software packages for ITIS implementation can cause rigidityand difficulty for ITIS implementation (Hoffman 1992)

Lucas (1981) suggested that human factors affect the successfulimplementation of a new ITIS more obviously than do organisationalfactors In addition when applications are moving from the mainframe tothe desktop compatibility should be maintained To ensure software

Critical successfactors forintegration

623

compatibility the design office should review syntax ERP softwarefeatures and semantics and external behaviour and provide training to itsusers This study hypothesises a positive relationship between trainingCADCAM staff on ERP system and the success of CADCAM integrationwith an ERP system

H6 Training CADCAM staff on ERP systems is positively related to thesuccess of CADCAM integration with ERP systems

Security of CADCAM interfaceApplications should be acquired to solve business problems not make problemsData are interchanged between CADCAM system and other applications such asan ERP system through the interface Many older applications often employunique antiquated and somewhat incompatible software coupled withunsophisticated security protocols One of the design office functions is to useCADCAM systems to design products and create confidential design documentssuch as BoM Therefore the security of files and data bases used by the CADCAMsystem become a major concern Accordingly the interface and system integritywill be an integral component of ERP implementation The interface integritycomponent is needed to ensure an appropriate level of internal control into theCADCAM databases The systems integrity component is required to focus onestablishing an ERP-based robust environment in which the CADCAM-ERPinterface operates The development of the integrity environment needs to mitigatethe organisational risks and ensure that the controls implemented in the system donot encumber the business The interface between CADCAM and otherapplications needs to be designed specifically for cross-platform use This studyexamines the positive relationship between the security of the CADCAM interfaceand CADCAM integration success

H7 The security of the CADCAM interface is positively related to thesuccess of CADCAM integration with the ERP system

User friendliness of ERP systemsIf the ERP system chosen is a complicated system involving significantamounts of data manipulation this could be inadequate for successful CADCAM integration The reason for this inadequacy is that complicated ERPsystems may cause difficulties for users and hence communication with theCADCAM system The candidate application for ITIS implementation shouldbe simple familiar and based on an applicationrsquos basic merits not on its politics(Klein 1991) Accordingly organisations should carefully evaluate potentialERP systems for implementation This study examines the positiverelationship between the degree of ERP user friendliness and the success ofCADCAM integration with the ERP system

H8 The degree of ERP user friendliness is positively related to the successof CADCAM integration with the ERP system

IJOPM2156

624

Research subjectsIn this study we used CADCAM users (engineers engineering managers) frombusiness organisations as subjects The reason for selecting these subjects wasthat ITIS system success measures have in past studies been significantlyrelated to the perceived CSF of ITIS managers The studies from Miller andDoyle (1987) and from Raghunathan et al (1989) both cited some other casestudies andor empirical studies that uphold this relationship Miller and Doyleand Raghunathan et al also have examined and supported this concept in theirstudies Therefore if an ITIS or CADCAM manager administers the CADCAM function corresponding to hisher CSF heshe can improve CADCAMperformance and effectiveness Thus this research will attempt to extract CSFfor CADCAM in next generation manufacturing organisations from a CADCAM usersrsquo perspective

Survey instrumentThis research used a survey-based field study of ED and production managersto investigate and test the above eight hypotheses Surveys and questionnaireswere used to facilitate collection of the required data lower sampling costspeed-up the time frame and make the required sampling size According toChurchill (1979) the research instrument must meet the requirements ofaccuracy and validity Several procedures were adopted to ensure and verifythese criteria These procedures are as follows

(1) Non-response bias Non-response bias was not found in the sampletested The non-response bias was calculated and tested by comparingthe survey results obtained from the respondents to the entire samplebecause of its availability at the designing stage of the questionnaire

(2) Reliability The instrument was found to be reliable because theCronbachrsquos coefficient alpha (not) for the instrument was found to beabove 06 (Churchill 1979 Nunnally 1978) Accordingly the reliability(stability and consistency of the measuring instrument) is assured

(3) Content validity Content validity examined the sampling adequacy ofthe instrument by

a complete and extensive inspection of the literature for all possibleitems to be included in the measurement

asking a group of academics consultants and executivesmanagers tocriticise the description and clarity of the questionnaire

the questionnaire was tested with members of the focus group prior tothe final survey The modification of the questionnaire was then basedon these expertsrsquo opinions

(4) Construct validity Construct validity tests were performed using a factoranalysis to

Critical successfactors forintegration

625

assess construct validity ie to determine the set of CSF by choosing aparticular factor loading pattern thus achieving content validity andconstruct validity

eliminate the unnecessary items from the instrument by checking thefactor loading and utilising factor extraction and rotation optionsunnecessary variables can be eliminated

(5) Practicality This criterion refers to economic factors convenience ofexecution and interpretability of data and the results (Emory andCooper 1991) This study considered the trade-off among researchvariables budget ease of management and estimated which researchinstrument best accommodated the objectives of this research study

ConclusionsA major problem with the integration of CADCAM with ERP systems is thatlittle is known about factors that contribute to or detract from its successKalakota (1997) argues that not all systems are ideal candidates forimplementation Selection of the wrong system or the wrong businessfunctional area can result not only in systems failure but can also cause tensionbetween departments and usersrsquo departments (Cronin 1996 Mougayar 1997Kalakota 1997) Many analysts believe that it is difficult to estimate the hiddencost and the staffrsquos attitude toward implementation (Kalakota 1997)

There are two situations when the organisation becomes concerned with theintegration of CADCAM with ERP systems These are

(1) when an organisation acquires CADCAM after it has already afunctioning ERP system or

(2) when the organisation implements the ERP system after it has a fullyoperational CADCAM system

In general these two situations generate two different sets of success factorsfor the integration of CADCAM with the ERP system Thus identifying CSFfor integration could help minimise risks associated with the integration andhelp promote the success of both CADCAM and ERP systems Therefore theidentification of strategies for integration of CADCAM with the ERP systemwill be the main purpose of this study

We propose that there is a significant direct relationship between theintegration of CADCAM with the ERP system and a number of CSF Severalbenefits and contributions are expected from establishing these CSF such as

Providing a checklist for integration of CADCAM with the ERP systemThat is from the findings managers can attend to what seems to be themost important activities and select an approach more likely to achievesuccess in integration of CADCAM with the ERP system

Providing a guideline for CADCAM and ERP resource managementManagers may be able to use the CSF findings of this research for better

IJOPM2156

626

CADCAM and ERP resources management such as investment inhardware software and human resources

Identifying information needs The CSF may be useful for managers toidentify their information needs for CADCAM and ERP systems andhence understand more about the required support services that usersneed suggested by Rockart (1979 1982)

Evaluating the performance of the design office The CSF may be usefulas criteria for users executives and managers to evaluate theperformance of the design office

Furnishing a foundation for communication The CSF can provide afoundation for communication between the users of CADCAM and ERPsystems

Strengthening organisational goals CSF can help the wholeorganisation understand the most important criteria and enhance itscompetitive stance

Providing a base for the future research Further research can expand onthe findings from this study For example the eight hypothesesdeveloped here should be tested and the results should be madeavailable to researchers and practitioners in the field of manufacturingmanagement

Many organisations have integrated their CADCAM with ERP systemswithout theoretical or academic rationalisation Not all implementation effortshave been successful So this research aims to identify CSF for CADCAMintegration with ERP systems The research model is based on the classic CSFstudies by Rockart (1982) and Martin (1982a b) along with others identified inthe newer literature

As this research assesses the evolution of CADCAM integration with ERPthe results from this study will serve as a foundation for further researchAdditional research may provide a better understanding and thereby improveandor confirm the findings of this research

RecommendationsA possible future study could conduct a limited number of case studies tocompare clarify and evaluate the possible response bias from this study Thereis no guarantee that the selected CSF are complete and completeness is ajudgemental limitation of this research

The possible future study of failsuccess or riskreturn factors may be ofassistance to management of organisations with CADCAM and ERP systemsOther studies could compare the success of CADCAM and ERP integration bytype of organisations annual sales number of employees and years of usingthe two systems In other words different types of organisations different sizesof organisations and different experiences in CADCAM and ERP operationmay relevant to compare the success of CADCAM and ERP integration

Critical successfactors forintegration

627

References

Barki H and Hartwick J (1994) `Measuring user participation user involvement and userattitudersquorsquo MIS Quarterly Vol 13 No 1 pp 59-82

Baraudi JJ Olson MH and Ives B (1986) `An empirical study of the impact of userinvolvement on system usage and information satisfactionrsquorsquo Communications of the ACMVol 29 No 3 pp 232-8

Bergeron F Rivard S and Raymond L (1993) `Assessment of end-user computing froman organisational perspectiversquorsquo Information Resources Management Journal Winterpp 14-25

Boynton AC and Zmud RW (1984) `An assessment of critical success factorsrsquorsquo SloanManagement Review Vol 25 No 4 Summer pp 17-27

Churchill GA Jr (1979) `A paradigm for developing better measures of marketing constructsrsquorsquoJournal of Marketing Research February pp 67-73

Clark J and Soliman F (1996) `Appraising knowledge-based system investmentrsquorsquo Proceedingsof the 3d European Conference on the Evaluation of Information Technology BathUniversity Bath 29 November pp 143-254

Clark J and Soliman F (1999) `A graphical method for assessing knowledge-basedinvestmentsrsquorsquo Journal of Logistics and Information Management Vol 12 No 1

Cronin MJ (1996) Global Advantage on the Internet Van Nostrand Reinhold New York NY

Davis GB (1979) ` Comments on the critical success factors method for obtaining managementrequirements in article by John F Rockart `Chief executives define their own data needsrsquorsquorsquoHarvard Business Review Vol 57No 2 March-April pp 81-93

Davis GB (1980) ` Letter to the Editorrsquorsquo MIS Quarterly Vol 4 No 2 June pp 69-70

DeLone WH (1988) ` Determinants of success for computer usage in small businessrsquorsquo MISQuarterly Vol 12 No 1 March pp 51-61

Dickinson RA Ferguson CR and Sircar S (1984) ` Critical success factors and smallbusinessrsquorsquo American Journal of Small Business January-March Vol III pp 49-57

Dilenschneider RL and Hyde RC (1985) `Crisis communications planning for the unplannedrsquorsquoBusiness Horizons January-FebruaryVol 28 No 1 pp 35-8

Emory WC and Cooper DR (1991) Business Research Methods 4th ed Irwin Homewood IL

Ferguson CR and Dickinson R (1982) `Critical success factors for directors in the eightiesrsquorsquoBusiness Horizons May-June Vol 25 No 3 pp 14-18

Garcia MR (1997) ` Knowledge centralrsquorsquo InformationWeek Vol 649 pp 252-6

Ginzberg MJ (1981) ` Early diagnosis of MIS implementation failure promising results andunansweredquestionsrsquorsquo Management Science April Vol 27 No 4 pp 459-78

Gustin CM Stank TP and Daugherty PJ (1994) ` Computerization supporting integrationrsquorsquoInternational Journal of Physical Distribution and Logistic Management Vol 24 No 1pp 11-16

Hamilton S and Chervany NL (1981a) ` Evaluating information system effectiveness plusmn Part Icomparing evaluation approachesrsquorsquo MIS Quarterly September Vol 5 No 3 pp 55-69

Hamilton S and Chervany NL (1981b) ` Evaluating information system effectiveness plusmn Part IIcomparing evaluator viewpointsrsquorsquo MIS Quarterly DecemberVol 5 No 4 pp 79-86

Hoffman T (1992) ` Users share stories of downsizing pros consrsquorsquo Computerworld OctoberVol 5 p 7

Hylas RE Gordon B and Dinetz GR (1989) `The upside of downsized systemsrsquorsquo BestrsquosReview December pp 78-82

IJOPM2156

614

to Davisrsquo comments and suggested ways to minimise these weaknesses(Munro 1983 Boynton and Zmud 1984)

Munro and Wheeler (1980) presented a general approach for identifying CSFwithin the context of corporate planning They analysed the process ofdetermining information requirements for organisational control purposes byinterviewing senior middle level managers in a training seminar Thoseprocesses include ` understand business unit objectives identify CSF andidentify the performance measures and standards for each CSF identify datarequired to measure performance and identify decisions and informationrequired implementing the planrsquorsquo From these processes they concluded that theCSF method and the performance measures and standards for each CSF canhelp management information systems by providing required managementinformation They also indicated that identifying CSF within the context oforganisation planning processes could overcome the potential difficulties notedby Davis

In response to Davisrsquos comments Munro (1983) compared the resultsobtained from Rockartrsquos CSF study (1982) and Martinrsquos CSF study (1982ab)Munro also examined both authorsrsquo articles in detail and compared the articlesrsquocitations and descriptions as well as their interviews with senior ITISmanagers He commented that the results from these two studies wereinterrelated and quite similar He also concluded that the results from CSFmethods are reasonable and that the CSF approach is a reliable techniquewhile acknowledging that the CSF approach could not be completely free fromthe bias of an interviewerrsquos interests and perceptions unless the interviewerswere skilful (Munro 1983)

In their 1984 study Boynton and Zmud concluded that the weaknessesidentified by Davies that may occur when using the CSF method can be largelyovercome through careful application of the technique They conducted twocase studies one is a study of a financial services firm while the other was astudy of a state university From their experience there are guidelines foreffective application of CSF

CSF are an excellent tool for information resource planning The CSFmethod seems particularly useful for organisations considering a moreaggressive IT posture

The use of a prototype is recommended as a means of productdevelopment

The individual managing the CSF effort should have a throughunderstanding of the organisation or should be literate in theorganisationrsquos principal area of business

It is useful to identify and cultivate a senior-level manager to championthe project

Their study suggests that organisations employing the CSF methodappropriately have many strengths The reliability of the CSF method can be

Critical successfactors forintegration

615

achieved when there is a structured design process using CADCAM systemsand that in ITIS planning Davisrsquo criticisms can be overcome by interviewingmanagers across a diagonal slice of the organisation

Benbasat (1984) suggested that the CSF approach could be considered in thesame classification as information based on a management by objectiveapproach He indicated that the CSF approach could be a system analysis toolfor eliciting executiversquos information requirements at the management controllevel CSF could be a means of supporting system planning and could grantsuccessful competitive performance for the organisation Since he did notexplicitly criticise the CSF method his support of the CSF approach iswarranted In addition Soliman and Clark (1996) concluded that the systemrsquosvalue is an important CSF for managing implementation of knowledge-basedsystems

Zahedi (1987) suggested and developed reliability as the measure ofinformation system success based on CSF He attempted to provide atheoretical framework for measuring information system success based onCSF His research used Rockartrsquos (1982) data to identify and build a hierarchicalconfiguration of the observed CSF of the MIS The study also used the datafrom Martinrsquos (1982ab) studies to verify the construction of the ITISconfiguration derived from Rockartrsquos data Zahedirsquos verification indicated thatthe developed CSF configuration could be applied to other sample data withsome minor modification Based on the derived CSF configuration Zahedigenerated a reliability measure for information systems defined as ` theprobability that the system works successfully in achieving its objectivesunder a given set of environmental conditionsrsquorsquo Zahedi also presentednumerical examples and demonstrated how reliability measures can be utilisedin evaluating IS projects in costbenefit analysis Based on the strengths of theCSF research approach mentioned above and methods for dealing with criticalcomments there appears to be some confidence and support for obtaining CSFfor integration of CADCAM systems with ERP systems

During the past decade more extensive studies have attempted to overcomethe weakness attributed to CSF and have broadened the concept to severaldifferent areas These applications could utilise CSF for

strategic guidelines at board of directorsrsquo level (Ferguson and Dickinson1982)

information requirements and corporate planning (Munro and Wheeler1980 Boynton and Zmud 1984)

management decision process (Rockart and Crescenzi 1984)

crises communications (Dilenschneider and Hyde 1985)

ITIS planning (Shank et al 1985)

information satisfaction in the small business environment (Dickinsonet al 1984 DeLone 1988 Montazemi 1988)

financial services (Miller and Doyle 1987) and

IJOPM2156

616

information centres or ITIS organisations performance (Magal and Carr1988 Raghunathan et al 1989 Bergeron et al 1993)

Drawing from these studies we provide a research framework to identifyCSF for the integration of CADCAM systems with ERP systems Theliterature reviewed in this study is based on the idea that successfullymanaged integration of CADCAM systems with ERP systems depends onCADCAM management and the interactions among CADCAM resources(CADCAM staff hardware and application software) and users because` the success of the information system depends on the social structures andinteractions that prevail during and after the development processrsquorsquo(Lyytinen 1987)

We also review the literature related to ITIS managersrsquo perceptions ofimplementation success Several studies have examined the relationshipbetween CSF of IS managers and CSF of ITIS implementation success Theyassert that if a section of a proposed system being considered is very importantto the manager this section usually performs better than others Miller andDoyle (1987) also reported that all the identified performance measures weresignificantly related to the CSF of ITIS managers If this relationship holdstrue the ITIS managersrsquo perceptions of importance could indicate areas criticalfor information system performance

Statement of the problemMuch has been written over the past 20 years on the success of ITimplementation in organisations but nothing has been published on thesuccess of integration of CADCAM and ERP systems It is important toinvestigate if there is any relationship between the use of CADCAMsystems in manufacturing and the performance of manufacturers Amongthe research questions that need to be answered one must include thefollowing

Can CADCAM systems be used as strategic tools to improve thecompetitive position of organisations

Have organisations taken advantage of this potential or have theysquandered the opportunity

Are organisation users happy with the system installed

Is the installed system both safe to use and reliable

To answer these questions we propose to focus on two main performanceindicators namely

(1) Manufacturing costs

(2) Customer satisfaction in terms of quality and delivery time

To date there have not been any published surveys attempting to link theintegration of CADCAM systems with the performance of organisations

Critical successfactors forintegration

617

There are several questions to be answered about CADCAM integration withERP systems in manufacturing organisations In the research that we proposewe will investigate if

manufacturing companies who integrated CADCAM with ERP systemshave reduced their manufacturing costs

companies who integrated CADCAM with ERP systems are more likelyto increase their customersrsquo satisfaction in terms of quality and deliverytime

manufacturing companies who integrated CADCAM with ERP systemsare likely to improve their strategic advantage in terms ofmanufacturing costs and customers satisfaction

Grounded theory investigation (GTI)GTI in management can be extremely valuable (Tantoush 1998) A panel ofmanagement experts assisted in the constructions of the CSF for CADCAMintegration with ERP systems Members of the panel comprised one chiefengineer one engineering director two design engineers one productionmanager one quality control manager and one purchasing manager The chiefengineer takes the role of moderator of the group An effective group moderatorprepares a discussion guide to help ensure that the group covers all CSF ofinterest It is the moderatorrsquos job to make sure that everyone gets a chance tospeak and to ask questions to clarify topics (CSF and CADCAM integrationwith ERP systems) that have been introduced into the discussion Thecombined effort of the group is to achieve cost savings time-savings qualityand efficiency Using the grounded theory approach the group could beexpected to identify CSF for the successful integration of CADCAM with ERPsystems

Research modelThe research model used in this study is based on the CSF study of Rockart(1982) modified according to the studies of Martin (1982ab) DeLone (1988)Miller et al (1987) and Bergeron et al (1993)

Figure 3 shows a diagram summarising the proposed research modelThe variables in this model can be categorised into the following eight areas

that might determine the success of the integration of CADCAM with ERPsystems

(1) CADCAM usersrsquo appreciation of integration

(2) communication between design office and other users

(3) design office services and support functions

(4) management commitment and support

(5) organisational effectiveness

(6) training of CADCAM staff on ERP system

IJOPM2156

618

(7) security of CADCAM interface and

(8) user friendliness of ERP systems

Due to the restricted application of CADCAM a large sample may not bepossible However this study will employ a survey for randomly selectedengineers and engineering managers in CADCAM offices Several empiricalstudies have found a positive relationship between IT success and managersrsquoperceptions The perceptions of engineers and engineering managers will bechosen because of their professional qualifications interest and theirknowledge concerning problems with the system

Significance of this researchThe results of this study may provide a contribution to both academic researchand manufacturing management for CSF studies as well as for the integrationof CADCAM with ERP systems Identifying CSF could help focus futureresearch on questions that have a significant impact on decisions in regard tothe integration of CADCAM with other systems Findings may help extend theexisting knowledge on CADCAM implementation research Based on theexpected findings the risk or dark side of CADCAM integration eg hiddenconversion cost data corruption caused by inconsistencies between ERPdatabases and the server database etc may also be identified in furtherstudies

Managers could be expected to utilise the identified integration CSF to adoptmore successful CADCAM implementation strategies in the future Theexpected CSF could also be used by production managers both as evaluationcriteria for system planning and control and as a facilitator of communicationbetween production departments and their users With better utilisation and

Figure 3The conceptual researchmodel

Critical successfactors forintegration

619

better understanding concerning the integrated CADCAM organisationsmight be better able to achieve cost savings time saving quality and efficiencyin their new systems Thus the benefits of successful integration couldimprove the corporate utilisation of information systems resources and assistin achieving a competitive advantage for organisations (Symon and Clegg1991)

Measuring performance and effectivenessTo evaluate the success of CADCAM integration one should measure systemsperformance and effectiveness Hamilton and Chervany (1981a) report the needfor performance measures for ITIS They claimed that ` Evaluating systemeffectiveness in meaningful terms has been the most difficult aspect of the ITISimplementation processrsquorsquo In their study Hamilton and Chervany (1981b)described and compared the effects of evaluator viewpoints on systemeffectiveness in terms of resources-oriented perspectives (or efficiency) andinfluences-oriented perspectives (or effectiveness) Some of their evaluationitems (for example MIS personnel productivity computer performance serviceand usersrsquo attitude) are identical to the components of CSF from Rockart (1982)Martin (1982ab) and later CSF studies Some of Hamilton and Chervanyrsquosevaluation items (productivity service usersrsquo attitude and computerperformance) will be included in the research instrument Zmud (1979)suggested that organisational factors ITIS usage top managementrsquos supportdecisions performance personal and interpersonal characteristics usersrsquoattitude ITIS staff characteristics and ITIS policies influence the success ofsystem implementation (Symon and Clegg 1991) Zmud suggests also thatresearch should examine system usage user satisfaction and user performancefor ITIS success All these factors will be included in the research instrument

Ginzberg (1981) attempted to track and manipulate the controllablevariables by developing tools for system designers and users He suggestedthat two management approaches can increase the effectiveness of the systemdevelopment process One approach is to identify those variables that are bothespecially important to the success of system development and controllable bythe user or the system designer The other approach is to manage thedevelopment process of the system designer and user by utilising developmenttools and procedures Ginzberg conducted a field study in a large US bank andconcluded ` the degree of realism of userrsquos pre-implementation expectationswas positively correlated with a range of project success measures bothattitudinal and behaviouralrsquorsquo

According to Rockart and Flanneryrsquos (1983) definition of end-users an ITISmanager could serve as a system designer and user as well FollowingGinzbergrsquos suggestion this study will also attempt to examine the ITISmanagerrsquos view of the importance of ITIS implementation success Thusengineers engineering managers and ITIS managers will be chosen as theresearch subject for this study (Tantoush 1998)

IJOPM2156

620

Yaverbaum (1988) applied the ` job diagnostic surveyrsquorsquo to 84 end-users toinvestigate motivation and satisfaction in a computer environmentYaverbaumrsquos results indicate that task factors organisational factors(management support management activity and training program) and userfactors (cognitive differences users characteristics attitude age past trainingeducation job experience and user participation) affecting user satisfaction arecrucial to the success of information systems Since her results support Zmudrsquos(1979) study this study will also include organisational factors task factorsand user factors in the research instrument

MethodologyYin (1994) suggested that a case study approach is an appropriate choice ofresearch method for this type of problem This is particularly true when

the researcher has little control over the environment

the events under investigation are contemporary and

the context of the research is important

The researchers do not have any control over the CADCAM and ERPenvironments that organisations adopt In addition since the CADCAM andERP systems are at present widely used in industry the topic of research iscontemporary Furthermore there is no published research on this topic andthe outcome is likely to affect the investment and productivity of these systemsAccordingly a case study approach is suitable for this analysis

Hypotheses for this study can be grouped according to the expected CSF ofCADCAM integration with ERP Systems The hypotheses presented below arenumbered for identification on the basis of grounded theory approach

Statement of hypothesesThe development of hypotheses based on the expected CSF of the methods andprocedures used to assess the degree of success of CADCAM integration withERP systems

CADCAM usersrsquo appreciation of integrationA study by Ives and Olson (1984) reviewed 22 ITIS-related studies Only eightstudies claimed a positive relationship between user involvement and systemsuccess Seven studies claimed a negative relationship while the other sevenstudies claimed mixed results Of the seven studies that investigated therelationship between user involvement and userrsquos attitude toward the systemonly one study reported significant results with user involvement and userrsquosattitude Other studies by Baroudi et al (1986) Tait and Vessey (1988) andBarki and Hartwick (1994) point to a relationship between usersrsquo involvementand the success of integration of CADCAM systems with ERP systemsAccordingly this research proposes to examine the relationship of these two

Critical successfactors forintegration

621

variables (user involvement and usersrsquo attitude) and the success of CADCAMintegration with ERP systems

H1 User appreciation (user involvement and usersrsquo attitude) is positivelyrelated to the success of CADCAM integration with ERP systems

Communication between design office and other usersIn the case of integration of CADCAM with an ERP system the design officecould improve communication and assist users in communication with thedesign office Thus users could be less anxious and their attitude towardimplementation more favourable (Rainer et al 1992) In the environment ofCADCAM communication with users is more crucial and complex than in theclassical environment of computing Therefore this study stresses theimportance of communication between users and the design office andhypothesises that there will be a positive relationship of CADCAM integrationwith ERP system success

H2 Communication between users and the design office is positivelyrelated to the success of CADCAM integration with an ERP system

Design office services and support functionsThe basic function of the design office is to manage design and CADCAMresources and to co-ordinate and facilitate CADCAM functioning for users Aneffective design office provides drawings and Bills of materials (BoM) with acompetent design staff supporting production Services such as technicalsupport trouble shooting consulting and training are critical design officefunctions In their study Magal and Carr (1988) found that ITIS staffrsquosunderstanding of the usersrsquo business and problems plus standardisedhardware and software to be important factors for the quality of ITIS supportservices This study proposes a positive relationship between the success ofCADCAM integration with an ERP system and the support services of thedesign office

H3 The design office supporting services is positively related to thesuccess of CADCAM integration with an ERP system

Management commitment and supportThe success or failure of any business effort is often determined by the amountof top management support (Rockart 1982 Ives and Olson 1984) Engineeringand production managers actively participate in the organisationrsquos planningprocess with senior managers and top managers help engineering andproduction management and line management to overcome the problem ofunderstanding top managementrsquos objectives thus facilitating goodcommunications among management levels Engineering and productionmanagers who participate in the planning process also tend to promotecommunication and a favourable relationship with top management Thussuch managers will more likely perceive the changing business objectives andthus help engineering and production management to achieve the new business

IJOPM2156

622

objectives Top management would thus acknowledge the importance of CADCAM integration and generate an appreciation of CADCAM managementissues Top management that is better able to understand the idea or theproblems of CADCAM management during the process of CADCAMintegration will have a better image of the CADCAM integration phenomenon

Ginzberg (1981) suggested that engineering and production managementpropose a strategic plan of CADCAM integration with an ERP system to topand line management including the reasons for the change its importance tothe organisation the impacts likely to result from it and the procedure forevaluating it Such criteria will be important in determining a userrsquos response toan ITIS change from the strategic plan studied and proposed by the ITISmanager Thus under these circumstances top and line management would bemore likely to commit to and support CADCAM objectives and offer co-operation for successful CADCAM integration with an ERP system Thisstudy examines this positive relationship

H4 Management commitment and support are positively related to thesuccess of CADCAM integration with ERP systems

Organisational effectivenessAny management task should be designed to achieve the organisationrsquosobjectives similarly CADCAM integration with ERP system should bedesigned to achieve an organisationrsquos objectives If CADCAM integrationimproves an organisationrsquos effectiveness then integration is more likely to beregarded as a success During such major organisational changes CADCAMsupport may ease the tedious maintenance of drawings BoM andspecifications thus improving the quality of managersrsquo decision making andeasing the management of change This study examines the relationshipbetween the success of CADCAM integration with an ERP system andorganisational effectiveness

H5 Organisational effectiveness is positively related to the success of CADCAM integration with an ERP system

Training of CADCAM staff on ERP systemsHylas et al (1989) indicated that not all systems applications are appropriatefor implementation Selection of the wrong business functional area or thewrong application or lack of adequate training can result in system failure Notonly lack of ITIS implementation experience can cause an ITIS manager tochoose an inappropriate application incompetent ITIS staff may havedifficulty recording or developing software for ITIS implementation while adeficiency of software packages for ITIS implementation can cause rigidityand difficulty for ITIS implementation (Hoffman 1992)

Lucas (1981) suggested that human factors affect the successfulimplementation of a new ITIS more obviously than do organisationalfactors In addition when applications are moving from the mainframe tothe desktop compatibility should be maintained To ensure software

Critical successfactors forintegration

623

compatibility the design office should review syntax ERP softwarefeatures and semantics and external behaviour and provide training to itsusers This study hypothesises a positive relationship between trainingCADCAM staff on ERP system and the success of CADCAM integrationwith an ERP system

H6 Training CADCAM staff on ERP systems is positively related to thesuccess of CADCAM integration with ERP systems

Security of CADCAM interfaceApplications should be acquired to solve business problems not make problemsData are interchanged between CADCAM system and other applications such asan ERP system through the interface Many older applications often employunique antiquated and somewhat incompatible software coupled withunsophisticated security protocols One of the design office functions is to useCADCAM systems to design products and create confidential design documentssuch as BoM Therefore the security of files and data bases used by the CADCAMsystem become a major concern Accordingly the interface and system integritywill be an integral component of ERP implementation The interface integritycomponent is needed to ensure an appropriate level of internal control into theCADCAM databases The systems integrity component is required to focus onestablishing an ERP-based robust environment in which the CADCAM-ERPinterface operates The development of the integrity environment needs to mitigatethe organisational risks and ensure that the controls implemented in the system donot encumber the business The interface between CADCAM and otherapplications needs to be designed specifically for cross-platform use This studyexamines the positive relationship between the security of the CADCAM interfaceand CADCAM integration success

H7 The security of the CADCAM interface is positively related to thesuccess of CADCAM integration with the ERP system

User friendliness of ERP systemsIf the ERP system chosen is a complicated system involving significantamounts of data manipulation this could be inadequate for successful CADCAM integration The reason for this inadequacy is that complicated ERPsystems may cause difficulties for users and hence communication with theCADCAM system The candidate application for ITIS implementation shouldbe simple familiar and based on an applicationrsquos basic merits not on its politics(Klein 1991) Accordingly organisations should carefully evaluate potentialERP systems for implementation This study examines the positiverelationship between the degree of ERP user friendliness and the success ofCADCAM integration with the ERP system

H8 The degree of ERP user friendliness is positively related to the successof CADCAM integration with the ERP system

IJOPM2156

624

Research subjectsIn this study we used CADCAM users (engineers engineering managers) frombusiness organisations as subjects The reason for selecting these subjects wasthat ITIS system success measures have in past studies been significantlyrelated to the perceived CSF of ITIS managers The studies from Miller andDoyle (1987) and from Raghunathan et al (1989) both cited some other casestudies andor empirical studies that uphold this relationship Miller and Doyleand Raghunathan et al also have examined and supported this concept in theirstudies Therefore if an ITIS or CADCAM manager administers the CADCAM function corresponding to hisher CSF heshe can improve CADCAMperformance and effectiveness Thus this research will attempt to extract CSFfor CADCAM in next generation manufacturing organisations from a CADCAM usersrsquo perspective

Survey instrumentThis research used a survey-based field study of ED and production managersto investigate and test the above eight hypotheses Surveys and questionnaireswere used to facilitate collection of the required data lower sampling costspeed-up the time frame and make the required sampling size According toChurchill (1979) the research instrument must meet the requirements ofaccuracy and validity Several procedures were adopted to ensure and verifythese criteria These procedures are as follows

(1) Non-response bias Non-response bias was not found in the sampletested The non-response bias was calculated and tested by comparingthe survey results obtained from the respondents to the entire samplebecause of its availability at the designing stage of the questionnaire

(2) Reliability The instrument was found to be reliable because theCronbachrsquos coefficient alpha (not) for the instrument was found to beabove 06 (Churchill 1979 Nunnally 1978) Accordingly the reliability(stability and consistency of the measuring instrument) is assured

(3) Content validity Content validity examined the sampling adequacy ofthe instrument by

a complete and extensive inspection of the literature for all possibleitems to be included in the measurement

asking a group of academics consultants and executivesmanagers tocriticise the description and clarity of the questionnaire

the questionnaire was tested with members of the focus group prior tothe final survey The modification of the questionnaire was then basedon these expertsrsquo opinions

(4) Construct validity Construct validity tests were performed using a factoranalysis to

Critical successfactors forintegration

625

assess construct validity ie to determine the set of CSF by choosing aparticular factor loading pattern thus achieving content validity andconstruct validity

eliminate the unnecessary items from the instrument by checking thefactor loading and utilising factor extraction and rotation optionsunnecessary variables can be eliminated

(5) Practicality This criterion refers to economic factors convenience ofexecution and interpretability of data and the results (Emory andCooper 1991) This study considered the trade-off among researchvariables budget ease of management and estimated which researchinstrument best accommodated the objectives of this research study

ConclusionsA major problem with the integration of CADCAM with ERP systems is thatlittle is known about factors that contribute to or detract from its successKalakota (1997) argues that not all systems are ideal candidates forimplementation Selection of the wrong system or the wrong businessfunctional area can result not only in systems failure but can also cause tensionbetween departments and usersrsquo departments (Cronin 1996 Mougayar 1997Kalakota 1997) Many analysts believe that it is difficult to estimate the hiddencost and the staffrsquos attitude toward implementation (Kalakota 1997)

There are two situations when the organisation becomes concerned with theintegration of CADCAM with ERP systems These are

(1) when an organisation acquires CADCAM after it has already afunctioning ERP system or

(2) when the organisation implements the ERP system after it has a fullyoperational CADCAM system

In general these two situations generate two different sets of success factorsfor the integration of CADCAM with the ERP system Thus identifying CSFfor integration could help minimise risks associated with the integration andhelp promote the success of both CADCAM and ERP systems Therefore theidentification of strategies for integration of CADCAM with the ERP systemwill be the main purpose of this study

We propose that there is a significant direct relationship between theintegration of CADCAM with the ERP system and a number of CSF Severalbenefits and contributions are expected from establishing these CSF such as

Providing a checklist for integration of CADCAM with the ERP systemThat is from the findings managers can attend to what seems to be themost important activities and select an approach more likely to achievesuccess in integration of CADCAM with the ERP system

Providing a guideline for CADCAM and ERP resource managementManagers may be able to use the CSF findings of this research for better

IJOPM2156

626

CADCAM and ERP resources management such as investment inhardware software and human resources

Identifying information needs The CSF may be useful for managers toidentify their information needs for CADCAM and ERP systems andhence understand more about the required support services that usersneed suggested by Rockart (1979 1982)

Evaluating the performance of the design office The CSF may be usefulas criteria for users executives and managers to evaluate theperformance of the design office

Furnishing a foundation for communication The CSF can provide afoundation for communication between the users of CADCAM and ERPsystems

Strengthening organisational goals CSF can help the wholeorganisation understand the most important criteria and enhance itscompetitive stance

Providing a base for the future research Further research can expand onthe findings from this study For example the eight hypothesesdeveloped here should be tested and the results should be madeavailable to researchers and practitioners in the field of manufacturingmanagement

Many organisations have integrated their CADCAM with ERP systemswithout theoretical or academic rationalisation Not all implementation effortshave been successful So this research aims to identify CSF for CADCAMintegration with ERP systems The research model is based on the classic CSFstudies by Rockart (1982) and Martin (1982a b) along with others identified inthe newer literature

As this research assesses the evolution of CADCAM integration with ERPthe results from this study will serve as a foundation for further researchAdditional research may provide a better understanding and thereby improveandor confirm the findings of this research

RecommendationsA possible future study could conduct a limited number of case studies tocompare clarify and evaluate the possible response bias from this study Thereis no guarantee that the selected CSF are complete and completeness is ajudgemental limitation of this research

The possible future study of failsuccess or riskreturn factors may be ofassistance to management of organisations with CADCAM and ERP systemsOther studies could compare the success of CADCAM and ERP integration bytype of organisations annual sales number of employees and years of usingthe two systems In other words different types of organisations different sizesof organisations and different experiences in CADCAM and ERP operationmay relevant to compare the success of CADCAM and ERP integration

Critical successfactors forintegration

627

References

Barki H and Hartwick J (1994) `Measuring user participation user involvement and userattitudersquorsquo MIS Quarterly Vol 13 No 1 pp 59-82

Baraudi JJ Olson MH and Ives B (1986) `An empirical study of the impact of userinvolvement on system usage and information satisfactionrsquorsquo Communications of the ACMVol 29 No 3 pp 232-8

Bergeron F Rivard S and Raymond L (1993) `Assessment of end-user computing froman organisational perspectiversquorsquo Information Resources Management Journal Winterpp 14-25

Boynton AC and Zmud RW (1984) `An assessment of critical success factorsrsquorsquo SloanManagement Review Vol 25 No 4 Summer pp 17-27

Churchill GA Jr (1979) `A paradigm for developing better measures of marketing constructsrsquorsquoJournal of Marketing Research February pp 67-73

Clark J and Soliman F (1996) `Appraising knowledge-based system investmentrsquorsquo Proceedingsof the 3d European Conference on the Evaluation of Information Technology BathUniversity Bath 29 November pp 143-254

Clark J and Soliman F (1999) `A graphical method for assessing knowledge-basedinvestmentsrsquorsquo Journal of Logistics and Information Management Vol 12 No 1

Cronin MJ (1996) Global Advantage on the Internet Van Nostrand Reinhold New York NY

Davis GB (1979) ` Comments on the critical success factors method for obtaining managementrequirements in article by John F Rockart `Chief executives define their own data needsrsquorsquorsquoHarvard Business Review Vol 57No 2 March-April pp 81-93

Davis GB (1980) ` Letter to the Editorrsquorsquo MIS Quarterly Vol 4 No 2 June pp 69-70

DeLone WH (1988) ` Determinants of success for computer usage in small businessrsquorsquo MISQuarterly Vol 12 No 1 March pp 51-61

Dickinson RA Ferguson CR and Sircar S (1984) ` Critical success factors and smallbusinessrsquorsquo American Journal of Small Business January-March Vol III pp 49-57

Dilenschneider RL and Hyde RC (1985) `Crisis communications planning for the unplannedrsquorsquoBusiness Horizons January-FebruaryVol 28 No 1 pp 35-8

Emory WC and Cooper DR (1991) Business Research Methods 4th ed Irwin Homewood IL

Ferguson CR and Dickinson R (1982) `Critical success factors for directors in the eightiesrsquorsquoBusiness Horizons May-June Vol 25 No 3 pp 14-18

Garcia MR (1997) ` Knowledge centralrsquorsquo InformationWeek Vol 649 pp 252-6

Ginzberg MJ (1981) ` Early diagnosis of MIS implementation failure promising results andunansweredquestionsrsquorsquo Management Science April Vol 27 No 4 pp 459-78

Gustin CM Stank TP and Daugherty PJ (1994) ` Computerization supporting integrationrsquorsquoInternational Journal of Physical Distribution and Logistic Management Vol 24 No 1pp 11-16

Hamilton S and Chervany NL (1981a) ` Evaluating information system effectiveness plusmn Part Icomparing evaluation approachesrsquorsquo MIS Quarterly September Vol 5 No 3 pp 55-69

Hamilton S and Chervany NL (1981b) ` Evaluating information system effectiveness plusmn Part IIcomparing evaluator viewpointsrsquorsquo MIS Quarterly DecemberVol 5 No 4 pp 79-86

Hoffman T (1992) ` Users share stories of downsizing pros consrsquorsquo Computerworld OctoberVol 5 p 7

Hylas RE Gordon B and Dinetz GR (1989) `The upside of downsized systemsrsquorsquo BestrsquosReview December pp 78-82

Critical successfactors forintegration

615

achieved when there is a structured design process using CADCAM systemsand that in ITIS planning Davisrsquo criticisms can be overcome by interviewingmanagers across a diagonal slice of the organisation

Benbasat (1984) suggested that the CSF approach could be considered in thesame classification as information based on a management by objectiveapproach He indicated that the CSF approach could be a system analysis toolfor eliciting executiversquos information requirements at the management controllevel CSF could be a means of supporting system planning and could grantsuccessful competitive performance for the organisation Since he did notexplicitly criticise the CSF method his support of the CSF approach iswarranted In addition Soliman and Clark (1996) concluded that the systemrsquosvalue is an important CSF for managing implementation of knowledge-basedsystems

Zahedi (1987) suggested and developed reliability as the measure ofinformation system success based on CSF He attempted to provide atheoretical framework for measuring information system success based onCSF His research used Rockartrsquos (1982) data to identify and build a hierarchicalconfiguration of the observed CSF of the MIS The study also used the datafrom Martinrsquos (1982ab) studies to verify the construction of the ITISconfiguration derived from Rockartrsquos data Zahedirsquos verification indicated thatthe developed CSF configuration could be applied to other sample data withsome minor modification Based on the derived CSF configuration Zahedigenerated a reliability measure for information systems defined as ` theprobability that the system works successfully in achieving its objectivesunder a given set of environmental conditionsrsquorsquo Zahedi also presentednumerical examples and demonstrated how reliability measures can be utilisedin evaluating IS projects in costbenefit analysis Based on the strengths of theCSF research approach mentioned above and methods for dealing with criticalcomments there appears to be some confidence and support for obtaining CSFfor integration of CADCAM systems with ERP systems

During the past decade more extensive studies have attempted to overcomethe weakness attributed to CSF and have broadened the concept to severaldifferent areas These applications could utilise CSF for

strategic guidelines at board of directorsrsquo level (Ferguson and Dickinson1982)

information requirements and corporate planning (Munro and Wheeler1980 Boynton and Zmud 1984)

management decision process (Rockart and Crescenzi 1984)

crises communications (Dilenschneider and Hyde 1985)

ITIS planning (Shank et al 1985)

information satisfaction in the small business environment (Dickinsonet al 1984 DeLone 1988 Montazemi 1988)

financial services (Miller and Doyle 1987) and

IJOPM2156

616

information centres or ITIS organisations performance (Magal and Carr1988 Raghunathan et al 1989 Bergeron et al 1993)

Drawing from these studies we provide a research framework to identifyCSF for the integration of CADCAM systems with ERP systems Theliterature reviewed in this study is based on the idea that successfullymanaged integration of CADCAM systems with ERP systems depends onCADCAM management and the interactions among CADCAM resources(CADCAM staff hardware and application software) and users because` the success of the information system depends on the social structures andinteractions that prevail during and after the development processrsquorsquo(Lyytinen 1987)

We also review the literature related to ITIS managersrsquo perceptions ofimplementation success Several studies have examined the relationshipbetween CSF of IS managers and CSF of ITIS implementation success Theyassert that if a section of a proposed system being considered is very importantto the manager this section usually performs better than others Miller andDoyle (1987) also reported that all the identified performance measures weresignificantly related to the CSF of ITIS managers If this relationship holdstrue the ITIS managersrsquo perceptions of importance could indicate areas criticalfor information system performance

Statement of the problemMuch has been written over the past 20 years on the success of ITimplementation in organisations but nothing has been published on thesuccess of integration of CADCAM and ERP systems It is important toinvestigate if there is any relationship between the use of CADCAMsystems in manufacturing and the performance of manufacturers Amongthe research questions that need to be answered one must include thefollowing

Can CADCAM systems be used as strategic tools to improve thecompetitive position of organisations

Have organisations taken advantage of this potential or have theysquandered the opportunity

Are organisation users happy with the system installed

Is the installed system both safe to use and reliable

To answer these questions we propose to focus on two main performanceindicators namely

(1) Manufacturing costs

(2) Customer satisfaction in terms of quality and delivery time

To date there have not been any published surveys attempting to link theintegration of CADCAM systems with the performance of organisations

Critical successfactors forintegration

617

There are several questions to be answered about CADCAM integration withERP systems in manufacturing organisations In the research that we proposewe will investigate if

manufacturing companies who integrated CADCAM with ERP systemshave reduced their manufacturing costs

companies who integrated CADCAM with ERP systems are more likelyto increase their customersrsquo satisfaction in terms of quality and deliverytime

manufacturing companies who integrated CADCAM with ERP systemsare likely to improve their strategic advantage in terms ofmanufacturing costs and customers satisfaction

Grounded theory investigation (GTI)GTI in management can be extremely valuable (Tantoush 1998) A panel ofmanagement experts assisted in the constructions of the CSF for CADCAMintegration with ERP systems Members of the panel comprised one chiefengineer one engineering director two design engineers one productionmanager one quality control manager and one purchasing manager The chiefengineer takes the role of moderator of the group An effective group moderatorprepares a discussion guide to help ensure that the group covers all CSF ofinterest It is the moderatorrsquos job to make sure that everyone gets a chance tospeak and to ask questions to clarify topics (CSF and CADCAM integrationwith ERP systems) that have been introduced into the discussion Thecombined effort of the group is to achieve cost savings time-savings qualityand efficiency Using the grounded theory approach the group could beexpected to identify CSF for the successful integration of CADCAM with ERPsystems

Research modelThe research model used in this study is based on the CSF study of Rockart(1982) modified according to the studies of Martin (1982ab) DeLone (1988)Miller et al (1987) and Bergeron et al (1993)

Figure 3 shows a diagram summarising the proposed research modelThe variables in this model can be categorised into the following eight areas

that might determine the success of the integration of CADCAM with ERPsystems

(1) CADCAM usersrsquo appreciation of integration

(2) communication between design office and other users

(3) design office services and support functions

(4) management commitment and support

(5) organisational effectiveness

(6) training of CADCAM staff on ERP system

IJOPM2156

618

(7) security of CADCAM interface and

(8) user friendliness of ERP systems

Due to the restricted application of CADCAM a large sample may not bepossible However this study will employ a survey for randomly selectedengineers and engineering managers in CADCAM offices Several empiricalstudies have found a positive relationship between IT success and managersrsquoperceptions The perceptions of engineers and engineering managers will bechosen because of their professional qualifications interest and theirknowledge concerning problems with the system

Significance of this researchThe results of this study may provide a contribution to both academic researchand manufacturing management for CSF studies as well as for the integrationof CADCAM with ERP systems Identifying CSF could help focus futureresearch on questions that have a significant impact on decisions in regard tothe integration of CADCAM with other systems Findings may help extend theexisting knowledge on CADCAM implementation research Based on theexpected findings the risk or dark side of CADCAM integration eg hiddenconversion cost data corruption caused by inconsistencies between ERPdatabases and the server database etc may also be identified in furtherstudies

Managers could be expected to utilise the identified integration CSF to adoptmore successful CADCAM implementation strategies in the future Theexpected CSF could also be used by production managers both as evaluationcriteria for system planning and control and as a facilitator of communicationbetween production departments and their users With better utilisation and

Figure 3The conceptual researchmodel

Critical successfactors forintegration

619

better understanding concerning the integrated CADCAM organisationsmight be better able to achieve cost savings time saving quality and efficiencyin their new systems Thus the benefits of successful integration couldimprove the corporate utilisation of information systems resources and assistin achieving a competitive advantage for organisations (Symon and Clegg1991)

Measuring performance and effectivenessTo evaluate the success of CADCAM integration one should measure systemsperformance and effectiveness Hamilton and Chervany (1981a) report the needfor performance measures for ITIS They claimed that ` Evaluating systemeffectiveness in meaningful terms has been the most difficult aspect of the ITISimplementation processrsquorsquo In their study Hamilton and Chervany (1981b)described and compared the effects of evaluator viewpoints on systemeffectiveness in terms of resources-oriented perspectives (or efficiency) andinfluences-oriented perspectives (or effectiveness) Some of their evaluationitems (for example MIS personnel productivity computer performance serviceand usersrsquo attitude) are identical to the components of CSF from Rockart (1982)Martin (1982ab) and later CSF studies Some of Hamilton and Chervanyrsquosevaluation items (productivity service usersrsquo attitude and computerperformance) will be included in the research instrument Zmud (1979)suggested that organisational factors ITIS usage top managementrsquos supportdecisions performance personal and interpersonal characteristics usersrsquoattitude ITIS staff characteristics and ITIS policies influence the success ofsystem implementation (Symon and Clegg 1991) Zmud suggests also thatresearch should examine system usage user satisfaction and user performancefor ITIS success All these factors will be included in the research instrument

Ginzberg (1981) attempted to track and manipulate the controllablevariables by developing tools for system designers and users He suggestedthat two management approaches can increase the effectiveness of the systemdevelopment process One approach is to identify those variables that are bothespecially important to the success of system development and controllable bythe user or the system designer The other approach is to manage thedevelopment process of the system designer and user by utilising developmenttools and procedures Ginzberg conducted a field study in a large US bank andconcluded ` the degree of realism of userrsquos pre-implementation expectationswas positively correlated with a range of project success measures bothattitudinal and behaviouralrsquorsquo

According to Rockart and Flanneryrsquos (1983) definition of end-users an ITISmanager could serve as a system designer and user as well FollowingGinzbergrsquos suggestion this study will also attempt to examine the ITISmanagerrsquos view of the importance of ITIS implementation success Thusengineers engineering managers and ITIS managers will be chosen as theresearch subject for this study (Tantoush 1998)

IJOPM2156

620

Yaverbaum (1988) applied the ` job diagnostic surveyrsquorsquo to 84 end-users toinvestigate motivation and satisfaction in a computer environmentYaverbaumrsquos results indicate that task factors organisational factors(management support management activity and training program) and userfactors (cognitive differences users characteristics attitude age past trainingeducation job experience and user participation) affecting user satisfaction arecrucial to the success of information systems Since her results support Zmudrsquos(1979) study this study will also include organisational factors task factorsand user factors in the research instrument

MethodologyYin (1994) suggested that a case study approach is an appropriate choice ofresearch method for this type of problem This is particularly true when

the researcher has little control over the environment

the events under investigation are contemporary and

the context of the research is important

The researchers do not have any control over the CADCAM and ERPenvironments that organisations adopt In addition since the CADCAM andERP systems are at present widely used in industry the topic of research iscontemporary Furthermore there is no published research on this topic andthe outcome is likely to affect the investment and productivity of these systemsAccordingly a case study approach is suitable for this analysis

Hypotheses for this study can be grouped according to the expected CSF ofCADCAM integration with ERP Systems The hypotheses presented below arenumbered for identification on the basis of grounded theory approach

Statement of hypothesesThe development of hypotheses based on the expected CSF of the methods andprocedures used to assess the degree of success of CADCAM integration withERP systems

CADCAM usersrsquo appreciation of integrationA study by Ives and Olson (1984) reviewed 22 ITIS-related studies Only eightstudies claimed a positive relationship between user involvement and systemsuccess Seven studies claimed a negative relationship while the other sevenstudies claimed mixed results Of the seven studies that investigated therelationship between user involvement and userrsquos attitude toward the systemonly one study reported significant results with user involvement and userrsquosattitude Other studies by Baroudi et al (1986) Tait and Vessey (1988) andBarki and Hartwick (1994) point to a relationship between usersrsquo involvementand the success of integration of CADCAM systems with ERP systemsAccordingly this research proposes to examine the relationship of these two

Critical successfactors forintegration

621

variables (user involvement and usersrsquo attitude) and the success of CADCAMintegration with ERP systems

H1 User appreciation (user involvement and usersrsquo attitude) is positivelyrelated to the success of CADCAM integration with ERP systems

Communication between design office and other usersIn the case of integration of CADCAM with an ERP system the design officecould improve communication and assist users in communication with thedesign office Thus users could be less anxious and their attitude towardimplementation more favourable (Rainer et al 1992) In the environment ofCADCAM communication with users is more crucial and complex than in theclassical environment of computing Therefore this study stresses theimportance of communication between users and the design office andhypothesises that there will be a positive relationship of CADCAM integrationwith ERP system success

H2 Communication between users and the design office is positivelyrelated to the success of CADCAM integration with an ERP system

Design office services and support functionsThe basic function of the design office is to manage design and CADCAMresources and to co-ordinate and facilitate CADCAM functioning for users Aneffective design office provides drawings and Bills of materials (BoM) with acompetent design staff supporting production Services such as technicalsupport trouble shooting consulting and training are critical design officefunctions In their study Magal and Carr (1988) found that ITIS staffrsquosunderstanding of the usersrsquo business and problems plus standardisedhardware and software to be important factors for the quality of ITIS supportservices This study proposes a positive relationship between the success ofCADCAM integration with an ERP system and the support services of thedesign office

H3 The design office supporting services is positively related to thesuccess of CADCAM integration with an ERP system

Management commitment and supportThe success or failure of any business effort is often determined by the amountof top management support (Rockart 1982 Ives and Olson 1984) Engineeringand production managers actively participate in the organisationrsquos planningprocess with senior managers and top managers help engineering andproduction management and line management to overcome the problem ofunderstanding top managementrsquos objectives thus facilitating goodcommunications among management levels Engineering and productionmanagers who participate in the planning process also tend to promotecommunication and a favourable relationship with top management Thussuch managers will more likely perceive the changing business objectives andthus help engineering and production management to achieve the new business

IJOPM2156

622

objectives Top management would thus acknowledge the importance of CADCAM integration and generate an appreciation of CADCAM managementissues Top management that is better able to understand the idea or theproblems of CADCAM management during the process of CADCAMintegration will have a better image of the CADCAM integration phenomenon

Ginzberg (1981) suggested that engineering and production managementpropose a strategic plan of CADCAM integration with an ERP system to topand line management including the reasons for the change its importance tothe organisation the impacts likely to result from it and the procedure forevaluating it Such criteria will be important in determining a userrsquos response toan ITIS change from the strategic plan studied and proposed by the ITISmanager Thus under these circumstances top and line management would bemore likely to commit to and support CADCAM objectives and offer co-operation for successful CADCAM integration with an ERP system Thisstudy examines this positive relationship

H4 Management commitment and support are positively related to thesuccess of CADCAM integration with ERP systems

Organisational effectivenessAny management task should be designed to achieve the organisationrsquosobjectives similarly CADCAM integration with ERP system should bedesigned to achieve an organisationrsquos objectives If CADCAM integrationimproves an organisationrsquos effectiveness then integration is more likely to beregarded as a success During such major organisational changes CADCAMsupport may ease the tedious maintenance of drawings BoM andspecifications thus improving the quality of managersrsquo decision making andeasing the management of change This study examines the relationshipbetween the success of CADCAM integration with an ERP system andorganisational effectiveness

H5 Organisational effectiveness is positively related to the success of CADCAM integration with an ERP system

Training of CADCAM staff on ERP systemsHylas et al (1989) indicated that not all systems applications are appropriatefor implementation Selection of the wrong business functional area or thewrong application or lack of adequate training can result in system failure Notonly lack of ITIS implementation experience can cause an ITIS manager tochoose an inappropriate application incompetent ITIS staff may havedifficulty recording or developing software for ITIS implementation while adeficiency of software packages for ITIS implementation can cause rigidityand difficulty for ITIS implementation (Hoffman 1992)

Lucas (1981) suggested that human factors affect the successfulimplementation of a new ITIS more obviously than do organisationalfactors In addition when applications are moving from the mainframe tothe desktop compatibility should be maintained To ensure software

Critical successfactors forintegration

623

compatibility the design office should review syntax ERP softwarefeatures and semantics and external behaviour and provide training to itsusers This study hypothesises a positive relationship between trainingCADCAM staff on ERP system and the success of CADCAM integrationwith an ERP system

H6 Training CADCAM staff on ERP systems is positively related to thesuccess of CADCAM integration with ERP systems

Security of CADCAM interfaceApplications should be acquired to solve business problems not make problemsData are interchanged between CADCAM system and other applications such asan ERP system through the interface Many older applications often employunique antiquated and somewhat incompatible software coupled withunsophisticated security protocols One of the design office functions is to useCADCAM systems to design products and create confidential design documentssuch as BoM Therefore the security of files and data bases used by the CADCAMsystem become a major concern Accordingly the interface and system integritywill be an integral component of ERP implementation The interface integritycomponent is needed to ensure an appropriate level of internal control into theCADCAM databases The systems integrity component is required to focus onestablishing an ERP-based robust environment in which the CADCAM-ERPinterface operates The development of the integrity environment needs to mitigatethe organisational risks and ensure that the controls implemented in the system donot encumber the business The interface between CADCAM and otherapplications needs to be designed specifically for cross-platform use This studyexamines the positive relationship between the security of the CADCAM interfaceand CADCAM integration success

H7 The security of the CADCAM interface is positively related to thesuccess of CADCAM integration with the ERP system

User friendliness of ERP systemsIf the ERP system chosen is a complicated system involving significantamounts of data manipulation this could be inadequate for successful CADCAM integration The reason for this inadequacy is that complicated ERPsystems may cause difficulties for users and hence communication with theCADCAM system The candidate application for ITIS implementation shouldbe simple familiar and based on an applicationrsquos basic merits not on its politics(Klein 1991) Accordingly organisations should carefully evaluate potentialERP systems for implementation This study examines the positiverelationship between the degree of ERP user friendliness and the success ofCADCAM integration with the ERP system

H8 The degree of ERP user friendliness is positively related to the successof CADCAM integration with the ERP system

IJOPM2156

624

Research subjectsIn this study we used CADCAM users (engineers engineering managers) frombusiness organisations as subjects The reason for selecting these subjects wasthat ITIS system success measures have in past studies been significantlyrelated to the perceived CSF of ITIS managers The studies from Miller andDoyle (1987) and from Raghunathan et al (1989) both cited some other casestudies andor empirical studies that uphold this relationship Miller and Doyleand Raghunathan et al also have examined and supported this concept in theirstudies Therefore if an ITIS or CADCAM manager administers the CADCAM function corresponding to hisher CSF heshe can improve CADCAMperformance and effectiveness Thus this research will attempt to extract CSFfor CADCAM in next generation manufacturing organisations from a CADCAM usersrsquo perspective

Survey instrumentThis research used a survey-based field study of ED and production managersto investigate and test the above eight hypotheses Surveys and questionnaireswere used to facilitate collection of the required data lower sampling costspeed-up the time frame and make the required sampling size According toChurchill (1979) the research instrument must meet the requirements ofaccuracy and validity Several procedures were adopted to ensure and verifythese criteria These procedures are as follows

(1) Non-response bias Non-response bias was not found in the sampletested The non-response bias was calculated and tested by comparingthe survey results obtained from the respondents to the entire samplebecause of its availability at the designing stage of the questionnaire

(2) Reliability The instrument was found to be reliable because theCronbachrsquos coefficient alpha (not) for the instrument was found to beabove 06 (Churchill 1979 Nunnally 1978) Accordingly the reliability(stability and consistency of the measuring instrument) is assured

(3) Content validity Content validity examined the sampling adequacy ofthe instrument by

a complete and extensive inspection of the literature for all possibleitems to be included in the measurement

asking a group of academics consultants and executivesmanagers tocriticise the description and clarity of the questionnaire

the questionnaire was tested with members of the focus group prior tothe final survey The modification of the questionnaire was then basedon these expertsrsquo opinions

(4) Construct validity Construct validity tests were performed using a factoranalysis to

Critical successfactors forintegration

625

assess construct validity ie to determine the set of CSF by choosing aparticular factor loading pattern thus achieving content validity andconstruct validity

eliminate the unnecessary items from the instrument by checking thefactor loading and utilising factor extraction and rotation optionsunnecessary variables can be eliminated

(5) Practicality This criterion refers to economic factors convenience ofexecution and interpretability of data and the results (Emory andCooper 1991) This study considered the trade-off among researchvariables budget ease of management and estimated which researchinstrument best accommodated the objectives of this research study

ConclusionsA major problem with the integration of CADCAM with ERP systems is thatlittle is known about factors that contribute to or detract from its successKalakota (1997) argues that not all systems are ideal candidates forimplementation Selection of the wrong system or the wrong businessfunctional area can result not only in systems failure but can also cause tensionbetween departments and usersrsquo departments (Cronin 1996 Mougayar 1997Kalakota 1997) Many analysts believe that it is difficult to estimate the hiddencost and the staffrsquos attitude toward implementation (Kalakota 1997)

There are two situations when the organisation becomes concerned with theintegration of CADCAM with ERP systems These are

(1) when an organisation acquires CADCAM after it has already afunctioning ERP system or

(2) when the organisation implements the ERP system after it has a fullyoperational CADCAM system

In general these two situations generate two different sets of success factorsfor the integration of CADCAM with the ERP system Thus identifying CSFfor integration could help minimise risks associated with the integration andhelp promote the success of both CADCAM and ERP systems Therefore theidentification of strategies for integration of CADCAM with the ERP systemwill be the main purpose of this study

We propose that there is a significant direct relationship between theintegration of CADCAM with the ERP system and a number of CSF Severalbenefits and contributions are expected from establishing these CSF such as

Providing a checklist for integration of CADCAM with the ERP systemThat is from the findings managers can attend to what seems to be themost important activities and select an approach more likely to achievesuccess in integration of CADCAM with the ERP system

Providing a guideline for CADCAM and ERP resource managementManagers may be able to use the CSF findings of this research for better

IJOPM2156

626

CADCAM and ERP resources management such as investment inhardware software and human resources

Identifying information needs The CSF may be useful for managers toidentify their information needs for CADCAM and ERP systems andhence understand more about the required support services that usersneed suggested by Rockart (1979 1982)

Evaluating the performance of the design office The CSF may be usefulas criteria for users executives and managers to evaluate theperformance of the design office

Furnishing a foundation for communication The CSF can provide afoundation for communication between the users of CADCAM and ERPsystems

Strengthening organisational goals CSF can help the wholeorganisation understand the most important criteria and enhance itscompetitive stance

Providing a base for the future research Further research can expand onthe findings from this study For example the eight hypothesesdeveloped here should be tested and the results should be madeavailable to researchers and practitioners in the field of manufacturingmanagement

Many organisations have integrated their CADCAM with ERP systemswithout theoretical or academic rationalisation Not all implementation effortshave been successful So this research aims to identify CSF for CADCAMintegration with ERP systems The research model is based on the classic CSFstudies by Rockart (1982) and Martin (1982a b) along with others identified inthe newer literature

As this research assesses the evolution of CADCAM integration with ERPthe results from this study will serve as a foundation for further researchAdditional research may provide a better understanding and thereby improveandor confirm the findings of this research

RecommendationsA possible future study could conduct a limited number of case studies tocompare clarify and evaluate the possible response bias from this study Thereis no guarantee that the selected CSF are complete and completeness is ajudgemental limitation of this research

The possible future study of failsuccess or riskreturn factors may be ofassistance to management of organisations with CADCAM and ERP systemsOther studies could compare the success of CADCAM and ERP integration bytype of organisations annual sales number of employees and years of usingthe two systems In other words different types of organisations different sizesof organisations and different experiences in CADCAM and ERP operationmay relevant to compare the success of CADCAM and ERP integration

Critical successfactors forintegration

627

References

Barki H and Hartwick J (1994) `Measuring user participation user involvement and userattitudersquorsquo MIS Quarterly Vol 13 No 1 pp 59-82

Baraudi JJ Olson MH and Ives B (1986) `An empirical study of the impact of userinvolvement on system usage and information satisfactionrsquorsquo Communications of the ACMVol 29 No 3 pp 232-8

Bergeron F Rivard S and Raymond L (1993) `Assessment of end-user computing froman organisational perspectiversquorsquo Information Resources Management Journal Winterpp 14-25

Boynton AC and Zmud RW (1984) `An assessment of critical success factorsrsquorsquo SloanManagement Review Vol 25 No 4 Summer pp 17-27

Churchill GA Jr (1979) `A paradigm for developing better measures of marketing constructsrsquorsquoJournal of Marketing Research February pp 67-73

Clark J and Soliman F (1996) `Appraising knowledge-based system investmentrsquorsquo Proceedingsof the 3d European Conference on the Evaluation of Information Technology BathUniversity Bath 29 November pp 143-254

Clark J and Soliman F (1999) `A graphical method for assessing knowledge-basedinvestmentsrsquorsquo Journal of Logistics and Information Management Vol 12 No 1

Cronin MJ (1996) Global Advantage on the Internet Van Nostrand Reinhold New York NY

Davis GB (1979) ` Comments on the critical success factors method for obtaining managementrequirements in article by John F Rockart `Chief executives define their own data needsrsquorsquorsquoHarvard Business Review Vol 57No 2 March-April pp 81-93

Davis GB (1980) ` Letter to the Editorrsquorsquo MIS Quarterly Vol 4 No 2 June pp 69-70

DeLone WH (1988) ` Determinants of success for computer usage in small businessrsquorsquo MISQuarterly Vol 12 No 1 March pp 51-61

Dickinson RA Ferguson CR and Sircar S (1984) ` Critical success factors and smallbusinessrsquorsquo American Journal of Small Business January-March Vol III pp 49-57

Dilenschneider RL and Hyde RC (1985) `Crisis communications planning for the unplannedrsquorsquoBusiness Horizons January-FebruaryVol 28 No 1 pp 35-8

Emory WC and Cooper DR (1991) Business Research Methods 4th ed Irwin Homewood IL

Ferguson CR and Dickinson R (1982) `Critical success factors for directors in the eightiesrsquorsquoBusiness Horizons May-June Vol 25 No 3 pp 14-18

Garcia MR (1997) ` Knowledge centralrsquorsquo InformationWeek Vol 649 pp 252-6

Ginzberg MJ (1981) ` Early diagnosis of MIS implementation failure promising results andunansweredquestionsrsquorsquo Management Science April Vol 27 No 4 pp 459-78

Gustin CM Stank TP and Daugherty PJ (1994) ` Computerization supporting integrationrsquorsquoInternational Journal of Physical Distribution and Logistic Management Vol 24 No 1pp 11-16

Hamilton S and Chervany NL (1981a) ` Evaluating information system effectiveness plusmn Part Icomparing evaluation approachesrsquorsquo MIS Quarterly September Vol 5 No 3 pp 55-69

Hamilton S and Chervany NL (1981b) ` Evaluating information system effectiveness plusmn Part IIcomparing evaluator viewpointsrsquorsquo MIS Quarterly DecemberVol 5 No 4 pp 79-86

Hoffman T (1992) ` Users share stories of downsizing pros consrsquorsquo Computerworld OctoberVol 5 p 7

Hylas RE Gordon B and Dinetz GR (1989) `The upside of downsized systemsrsquorsquo BestrsquosReview December pp 78-82

IJOPM2156

616

information centres or ITIS organisations performance (Magal and Carr1988 Raghunathan et al 1989 Bergeron et al 1993)

Drawing from these studies we provide a research framework to identifyCSF for the integration of CADCAM systems with ERP systems Theliterature reviewed in this study is based on the idea that successfullymanaged integration of CADCAM systems with ERP systems depends onCADCAM management and the interactions among CADCAM resources(CADCAM staff hardware and application software) and users because` the success of the information system depends on the social structures andinteractions that prevail during and after the development processrsquorsquo(Lyytinen 1987)

We also review the literature related to ITIS managersrsquo perceptions ofimplementation success Several studies have examined the relationshipbetween CSF of IS managers and CSF of ITIS implementation success Theyassert that if a section of a proposed system being considered is very importantto the manager this section usually performs better than others Miller andDoyle (1987) also reported that all the identified performance measures weresignificantly related to the CSF of ITIS managers If this relationship holdstrue the ITIS managersrsquo perceptions of importance could indicate areas criticalfor information system performance

Statement of the problemMuch has been written over the past 20 years on the success of ITimplementation in organisations but nothing has been published on thesuccess of integration of CADCAM and ERP systems It is important toinvestigate if there is any relationship between the use of CADCAMsystems in manufacturing and the performance of manufacturers Amongthe research questions that need to be answered one must include thefollowing

Can CADCAM systems be used as strategic tools to improve thecompetitive position of organisations

Have organisations taken advantage of this potential or have theysquandered the opportunity

Are organisation users happy with the system installed

Is the installed system both safe to use and reliable

To answer these questions we propose to focus on two main performanceindicators namely

(1) Manufacturing costs

(2) Customer satisfaction in terms of quality and delivery time

To date there have not been any published surveys attempting to link theintegration of CADCAM systems with the performance of organisations

Critical successfactors forintegration

617

There are several questions to be answered about CADCAM integration withERP systems in manufacturing organisations In the research that we proposewe will investigate if

manufacturing companies who integrated CADCAM with ERP systemshave reduced their manufacturing costs

companies who integrated CADCAM with ERP systems are more likelyto increase their customersrsquo satisfaction in terms of quality and deliverytime

manufacturing companies who integrated CADCAM with ERP systemsare likely to improve their strategic advantage in terms ofmanufacturing costs and customers satisfaction

Grounded theory investigation (GTI)GTI in management can be extremely valuable (Tantoush 1998) A panel ofmanagement experts assisted in the constructions of the CSF for CADCAMintegration with ERP systems Members of the panel comprised one chiefengineer one engineering director two design engineers one productionmanager one quality control manager and one purchasing manager The chiefengineer takes the role of moderator of the group An effective group moderatorprepares a discussion guide to help ensure that the group covers all CSF ofinterest It is the moderatorrsquos job to make sure that everyone gets a chance tospeak and to ask questions to clarify topics (CSF and CADCAM integrationwith ERP systems) that have been introduced into the discussion Thecombined effort of the group is to achieve cost savings time-savings qualityand efficiency Using the grounded theory approach the group could beexpected to identify CSF for the successful integration of CADCAM with ERPsystems

Research modelThe research model used in this study is based on the CSF study of Rockart(1982) modified according to the studies of Martin (1982ab) DeLone (1988)Miller et al (1987) and Bergeron et al (1993)

Figure 3 shows a diagram summarising the proposed research modelThe variables in this model can be categorised into the following eight areas

that might determine the success of the integration of CADCAM with ERPsystems

(1) CADCAM usersrsquo appreciation of integration

(2) communication between design office and other users

(3) design office services and support functions

(4) management commitment and support

(5) organisational effectiveness

(6) training of CADCAM staff on ERP system

IJOPM2156

618

(7) security of CADCAM interface and

(8) user friendliness of ERP systems

Due to the restricted application of CADCAM a large sample may not bepossible However this study will employ a survey for randomly selectedengineers and engineering managers in CADCAM offices Several empiricalstudies have found a positive relationship between IT success and managersrsquoperceptions The perceptions of engineers and engineering managers will bechosen because of their professional qualifications interest and theirknowledge concerning problems with the system

Significance of this researchThe results of this study may provide a contribution to both academic researchand manufacturing management for CSF studies as well as for the integrationof CADCAM with ERP systems Identifying CSF could help focus futureresearch on questions that have a significant impact on decisions in regard tothe integration of CADCAM with other systems Findings may help extend theexisting knowledge on CADCAM implementation research Based on theexpected findings the risk or dark side of CADCAM integration eg hiddenconversion cost data corruption caused by inconsistencies between ERPdatabases and the server database etc may also be identified in furtherstudies

Managers could be expected to utilise the identified integration CSF to adoptmore successful CADCAM implementation strategies in the future Theexpected CSF could also be used by production managers both as evaluationcriteria for system planning and control and as a facilitator of communicationbetween production departments and their users With better utilisation and

Figure 3The conceptual researchmodel

Critical successfactors forintegration

619

better understanding concerning the integrated CADCAM organisationsmight be better able to achieve cost savings time saving quality and efficiencyin their new systems Thus the benefits of successful integration couldimprove the corporate utilisation of information systems resources and assistin achieving a competitive advantage for organisations (Symon and Clegg1991)

Measuring performance and effectivenessTo evaluate the success of CADCAM integration one should measure systemsperformance and effectiveness Hamilton and Chervany (1981a) report the needfor performance measures for ITIS They claimed that ` Evaluating systemeffectiveness in meaningful terms has been the most difficult aspect of the ITISimplementation processrsquorsquo In their study Hamilton and Chervany (1981b)described and compared the effects of evaluator viewpoints on systemeffectiveness in terms of resources-oriented perspectives (or efficiency) andinfluences-oriented perspectives (or effectiveness) Some of their evaluationitems (for example MIS personnel productivity computer performance serviceand usersrsquo attitude) are identical to the components of CSF from Rockart (1982)Martin (1982ab) and later CSF studies Some of Hamilton and Chervanyrsquosevaluation items (productivity service usersrsquo attitude and computerperformance) will be included in the research instrument Zmud (1979)suggested that organisational factors ITIS usage top managementrsquos supportdecisions performance personal and interpersonal characteristics usersrsquoattitude ITIS staff characteristics and ITIS policies influence the success ofsystem implementation (Symon and Clegg 1991) Zmud suggests also thatresearch should examine system usage user satisfaction and user performancefor ITIS success All these factors will be included in the research instrument

Ginzberg (1981) attempted to track and manipulate the controllablevariables by developing tools for system designers and users He suggestedthat two management approaches can increase the effectiveness of the systemdevelopment process One approach is to identify those variables that are bothespecially important to the success of system development and controllable bythe user or the system designer The other approach is to manage thedevelopment process of the system designer and user by utilising developmenttools and procedures Ginzberg conducted a field study in a large US bank andconcluded ` the degree of realism of userrsquos pre-implementation expectationswas positively correlated with a range of project success measures bothattitudinal and behaviouralrsquorsquo

According to Rockart and Flanneryrsquos (1983) definition of end-users an ITISmanager could serve as a system designer and user as well FollowingGinzbergrsquos suggestion this study will also attempt to examine the ITISmanagerrsquos view of the importance of ITIS implementation success Thusengineers engineering managers and ITIS managers will be chosen as theresearch subject for this study (Tantoush 1998)

IJOPM2156

620

Yaverbaum (1988) applied the ` job diagnostic surveyrsquorsquo to 84 end-users toinvestigate motivation and satisfaction in a computer environmentYaverbaumrsquos results indicate that task factors organisational factors(management support management activity and training program) and userfactors (cognitive differences users characteristics attitude age past trainingeducation job experience and user participation) affecting user satisfaction arecrucial to the success of information systems Since her results support Zmudrsquos(1979) study this study will also include organisational factors task factorsand user factors in the research instrument

MethodologyYin (1994) suggested that a case study approach is an appropriate choice ofresearch method for this type of problem This is particularly true when

the researcher has little control over the environment

the events under investigation are contemporary and

the context of the research is important

The researchers do not have any control over the CADCAM and ERPenvironments that organisations adopt In addition since the CADCAM andERP systems are at present widely used in industry the topic of research iscontemporary Furthermore there is no published research on this topic andthe outcome is likely to affect the investment and productivity of these systemsAccordingly a case study approach is suitable for this analysis

Hypotheses for this study can be grouped according to the expected CSF ofCADCAM integration with ERP Systems The hypotheses presented below arenumbered for identification on the basis of grounded theory approach

Statement of hypothesesThe development of hypotheses based on the expected CSF of the methods andprocedures used to assess the degree of success of CADCAM integration withERP systems

CADCAM usersrsquo appreciation of integrationA study by Ives and Olson (1984) reviewed 22 ITIS-related studies Only eightstudies claimed a positive relationship between user involvement and systemsuccess Seven studies claimed a negative relationship while the other sevenstudies claimed mixed results Of the seven studies that investigated therelationship between user involvement and userrsquos attitude toward the systemonly one study reported significant results with user involvement and userrsquosattitude Other studies by Baroudi et al (1986) Tait and Vessey (1988) andBarki and Hartwick (1994) point to a relationship between usersrsquo involvementand the success of integration of CADCAM systems with ERP systemsAccordingly this research proposes to examine the relationship of these two

Critical successfactors forintegration

621

variables (user involvement and usersrsquo attitude) and the success of CADCAMintegration with ERP systems

H1 User appreciation (user involvement and usersrsquo attitude) is positivelyrelated to the success of CADCAM integration with ERP systems

Communication between design office and other usersIn the case of integration of CADCAM with an ERP system the design officecould improve communication and assist users in communication with thedesign office Thus users could be less anxious and their attitude towardimplementation more favourable (Rainer et al 1992) In the environment ofCADCAM communication with users is more crucial and complex than in theclassical environment of computing Therefore this study stresses theimportance of communication between users and the design office andhypothesises that there will be a positive relationship of CADCAM integrationwith ERP system success

H2 Communication between users and the design office is positivelyrelated to the success of CADCAM integration with an ERP system

Design office services and support functionsThe basic function of the design office is to manage design and CADCAMresources and to co-ordinate and facilitate CADCAM functioning for users Aneffective design office provides drawings and Bills of materials (BoM) with acompetent design staff supporting production Services such as technicalsupport trouble shooting consulting and training are critical design officefunctions In their study Magal and Carr (1988) found that ITIS staffrsquosunderstanding of the usersrsquo business and problems plus standardisedhardware and software to be important factors for the quality of ITIS supportservices This study proposes a positive relationship between the success ofCADCAM integration with an ERP system and the support services of thedesign office

H3 The design office supporting services is positively related to thesuccess of CADCAM integration with an ERP system

Management commitment and supportThe success or failure of any business effort is often determined by the amountof top management support (Rockart 1982 Ives and Olson 1984) Engineeringand production managers actively participate in the organisationrsquos planningprocess with senior managers and top managers help engineering andproduction management and line management to overcome the problem ofunderstanding top managementrsquos objectives thus facilitating goodcommunications among management levels Engineering and productionmanagers who participate in the planning process also tend to promotecommunication and a favourable relationship with top management Thussuch managers will more likely perceive the changing business objectives andthus help engineering and production management to achieve the new business

IJOPM2156

622

objectives Top management would thus acknowledge the importance of CADCAM integration and generate an appreciation of CADCAM managementissues Top management that is better able to understand the idea or theproblems of CADCAM management during the process of CADCAMintegration will have a better image of the CADCAM integration phenomenon

Ginzberg (1981) suggested that engineering and production managementpropose a strategic plan of CADCAM integration with an ERP system to topand line management including the reasons for the change its importance tothe organisation the impacts likely to result from it and the procedure forevaluating it Such criteria will be important in determining a userrsquos response toan ITIS change from the strategic plan studied and proposed by the ITISmanager Thus under these circumstances top and line management would bemore likely to commit to and support CADCAM objectives and offer co-operation for successful CADCAM integration with an ERP system Thisstudy examines this positive relationship

H4 Management commitment and support are positively related to thesuccess of CADCAM integration with ERP systems

Organisational effectivenessAny management task should be designed to achieve the organisationrsquosobjectives similarly CADCAM integration with ERP system should bedesigned to achieve an organisationrsquos objectives If CADCAM integrationimproves an organisationrsquos effectiveness then integration is more likely to beregarded as a success During such major organisational changes CADCAMsupport may ease the tedious maintenance of drawings BoM andspecifications thus improving the quality of managersrsquo decision making andeasing the management of change This study examines the relationshipbetween the success of CADCAM integration with an ERP system andorganisational effectiveness

H5 Organisational effectiveness is positively related to the success of CADCAM integration with an ERP system

Training of CADCAM staff on ERP systemsHylas et al (1989) indicated that not all systems applications are appropriatefor implementation Selection of the wrong business functional area or thewrong application or lack of adequate training can result in system failure Notonly lack of ITIS implementation experience can cause an ITIS manager tochoose an inappropriate application incompetent ITIS staff may havedifficulty recording or developing software for ITIS implementation while adeficiency of software packages for ITIS implementation can cause rigidityand difficulty for ITIS implementation (Hoffman 1992)

Lucas (1981) suggested that human factors affect the successfulimplementation of a new ITIS more obviously than do organisationalfactors In addition when applications are moving from the mainframe tothe desktop compatibility should be maintained To ensure software

Critical successfactors forintegration

623

compatibility the design office should review syntax ERP softwarefeatures and semantics and external behaviour and provide training to itsusers This study hypothesises a positive relationship between trainingCADCAM staff on ERP system and the success of CADCAM integrationwith an ERP system

H6 Training CADCAM staff on ERP systems is positively related to thesuccess of CADCAM integration with ERP systems

Security of CADCAM interfaceApplications should be acquired to solve business problems not make problemsData are interchanged between CADCAM system and other applications such asan ERP system through the interface Many older applications often employunique antiquated and somewhat incompatible software coupled withunsophisticated security protocols One of the design office functions is to useCADCAM systems to design products and create confidential design documentssuch as BoM Therefore the security of files and data bases used by the CADCAMsystem become a major concern Accordingly the interface and system integritywill be an integral component of ERP implementation The interface integritycomponent is needed to ensure an appropriate level of internal control into theCADCAM databases The systems integrity component is required to focus onestablishing an ERP-based robust environment in which the CADCAM-ERPinterface operates The development of the integrity environment needs to mitigatethe organisational risks and ensure that the controls implemented in the system donot encumber the business The interface between CADCAM and otherapplications needs to be designed specifically for cross-platform use This studyexamines the positive relationship between the security of the CADCAM interfaceand CADCAM integration success

H7 The security of the CADCAM interface is positively related to thesuccess of CADCAM integration with the ERP system

User friendliness of ERP systemsIf the ERP system chosen is a complicated system involving significantamounts of data manipulation this could be inadequate for successful CADCAM integration The reason for this inadequacy is that complicated ERPsystems may cause difficulties for users and hence communication with theCADCAM system The candidate application for ITIS implementation shouldbe simple familiar and based on an applicationrsquos basic merits not on its politics(Klein 1991) Accordingly organisations should carefully evaluate potentialERP systems for implementation This study examines the positiverelationship between the degree of ERP user friendliness and the success ofCADCAM integration with the ERP system

H8 The degree of ERP user friendliness is positively related to the successof CADCAM integration with the ERP system

IJOPM2156

624

Research subjectsIn this study we used CADCAM users (engineers engineering managers) frombusiness organisations as subjects The reason for selecting these subjects wasthat ITIS system success measures have in past studies been significantlyrelated to the perceived CSF of ITIS managers The studies from Miller andDoyle (1987) and from Raghunathan et al (1989) both cited some other casestudies andor empirical studies that uphold this relationship Miller and Doyleand Raghunathan et al also have examined and supported this concept in theirstudies Therefore if an ITIS or CADCAM manager administers the CADCAM function corresponding to hisher CSF heshe can improve CADCAMperformance and effectiveness Thus this research will attempt to extract CSFfor CADCAM in next generation manufacturing organisations from a CADCAM usersrsquo perspective

Survey instrumentThis research used a survey-based field study of ED and production managersto investigate and test the above eight hypotheses Surveys and questionnaireswere used to facilitate collection of the required data lower sampling costspeed-up the time frame and make the required sampling size According toChurchill (1979) the research instrument must meet the requirements ofaccuracy and validity Several procedures were adopted to ensure and verifythese criteria These procedures are as follows

(1) Non-response bias Non-response bias was not found in the sampletested The non-response bias was calculated and tested by comparingthe survey results obtained from the respondents to the entire samplebecause of its availability at the designing stage of the questionnaire

(2) Reliability The instrument was found to be reliable because theCronbachrsquos coefficient alpha (not) for the instrument was found to beabove 06 (Churchill 1979 Nunnally 1978) Accordingly the reliability(stability and consistency of the measuring instrument) is assured

(3) Content validity Content validity examined the sampling adequacy ofthe instrument by

a complete and extensive inspection of the literature for all possibleitems to be included in the measurement

asking a group of academics consultants and executivesmanagers tocriticise the description and clarity of the questionnaire

the questionnaire was tested with members of the focus group prior tothe final survey The modification of the questionnaire was then basedon these expertsrsquo opinions

(4) Construct validity Construct validity tests were performed using a factoranalysis to

Critical successfactors forintegration

625

assess construct validity ie to determine the set of CSF by choosing aparticular factor loading pattern thus achieving content validity andconstruct validity

eliminate the unnecessary items from the instrument by checking thefactor loading and utilising factor extraction and rotation optionsunnecessary variables can be eliminated

(5) Practicality This criterion refers to economic factors convenience ofexecution and interpretability of data and the results (Emory andCooper 1991) This study considered the trade-off among researchvariables budget ease of management and estimated which researchinstrument best accommodated the objectives of this research study

ConclusionsA major problem with the integration of CADCAM with ERP systems is thatlittle is known about factors that contribute to or detract from its successKalakota (1997) argues that not all systems are ideal candidates forimplementation Selection of the wrong system or the wrong businessfunctional area can result not only in systems failure but can also cause tensionbetween departments and usersrsquo departments (Cronin 1996 Mougayar 1997Kalakota 1997) Many analysts believe that it is difficult to estimate the hiddencost and the staffrsquos attitude toward implementation (Kalakota 1997)

There are two situations when the organisation becomes concerned with theintegration of CADCAM with ERP systems These are

(1) when an organisation acquires CADCAM after it has already afunctioning ERP system or

(2) when the organisation implements the ERP system after it has a fullyoperational CADCAM system

In general these two situations generate two different sets of success factorsfor the integration of CADCAM with the ERP system Thus identifying CSFfor integration could help minimise risks associated with the integration andhelp promote the success of both CADCAM and ERP systems Therefore theidentification of strategies for integration of CADCAM with the ERP systemwill be the main purpose of this study

We propose that there is a significant direct relationship between theintegration of CADCAM with the ERP system and a number of CSF Severalbenefits and contributions are expected from establishing these CSF such as

Providing a checklist for integration of CADCAM with the ERP systemThat is from the findings managers can attend to what seems to be themost important activities and select an approach more likely to achievesuccess in integration of CADCAM with the ERP system

Providing a guideline for CADCAM and ERP resource managementManagers may be able to use the CSF findings of this research for better

IJOPM2156

626

CADCAM and ERP resources management such as investment inhardware software and human resources

Identifying information needs The CSF may be useful for managers toidentify their information needs for CADCAM and ERP systems andhence understand more about the required support services that usersneed suggested by Rockart (1979 1982)

Evaluating the performance of the design office The CSF may be usefulas criteria for users executives and managers to evaluate theperformance of the design office

Furnishing a foundation for communication The CSF can provide afoundation for communication between the users of CADCAM and ERPsystems

Strengthening organisational goals CSF can help the wholeorganisation understand the most important criteria and enhance itscompetitive stance

Providing a base for the future research Further research can expand onthe findings from this study For example the eight hypothesesdeveloped here should be tested and the results should be madeavailable to researchers and practitioners in the field of manufacturingmanagement

Many organisations have integrated their CADCAM with ERP systemswithout theoretical or academic rationalisation Not all implementation effortshave been successful So this research aims to identify CSF for CADCAMintegration with ERP systems The research model is based on the classic CSFstudies by Rockart (1982) and Martin (1982a b) along with others identified inthe newer literature

As this research assesses the evolution of CADCAM integration with ERPthe results from this study will serve as a foundation for further researchAdditional research may provide a better understanding and thereby improveandor confirm the findings of this research

RecommendationsA possible future study could conduct a limited number of case studies tocompare clarify and evaluate the possible response bias from this study Thereis no guarantee that the selected CSF are complete and completeness is ajudgemental limitation of this research

The possible future study of failsuccess or riskreturn factors may be ofassistance to management of organisations with CADCAM and ERP systemsOther studies could compare the success of CADCAM and ERP integration bytype of organisations annual sales number of employees and years of usingthe two systems In other words different types of organisations different sizesof organisations and different experiences in CADCAM and ERP operationmay relevant to compare the success of CADCAM and ERP integration

Critical successfactors forintegration

627

References

Barki H and Hartwick J (1994) `Measuring user participation user involvement and userattitudersquorsquo MIS Quarterly Vol 13 No 1 pp 59-82

Baraudi JJ Olson MH and Ives B (1986) `An empirical study of the impact of userinvolvement on system usage and information satisfactionrsquorsquo Communications of the ACMVol 29 No 3 pp 232-8

Bergeron F Rivard S and Raymond L (1993) `Assessment of end-user computing froman organisational perspectiversquorsquo Information Resources Management Journal Winterpp 14-25

Boynton AC and Zmud RW (1984) `An assessment of critical success factorsrsquorsquo SloanManagement Review Vol 25 No 4 Summer pp 17-27

Churchill GA Jr (1979) `A paradigm for developing better measures of marketing constructsrsquorsquoJournal of Marketing Research February pp 67-73

Clark J and Soliman F (1996) `Appraising knowledge-based system investmentrsquorsquo Proceedingsof the 3d European Conference on the Evaluation of Information Technology BathUniversity Bath 29 November pp 143-254

Clark J and Soliman F (1999) `A graphical method for assessing knowledge-basedinvestmentsrsquorsquo Journal of Logistics and Information Management Vol 12 No 1

Cronin MJ (1996) Global Advantage on the Internet Van Nostrand Reinhold New York NY

Davis GB (1979) ` Comments on the critical success factors method for obtaining managementrequirements in article by John F Rockart `Chief executives define their own data needsrsquorsquorsquoHarvard Business Review Vol 57No 2 March-April pp 81-93

Davis GB (1980) ` Letter to the Editorrsquorsquo MIS Quarterly Vol 4 No 2 June pp 69-70

DeLone WH (1988) ` Determinants of success for computer usage in small businessrsquorsquo MISQuarterly Vol 12 No 1 March pp 51-61

Dickinson RA Ferguson CR and Sircar S (1984) ` Critical success factors and smallbusinessrsquorsquo American Journal of Small Business January-March Vol III pp 49-57

Dilenschneider RL and Hyde RC (1985) `Crisis communications planning for the unplannedrsquorsquoBusiness Horizons January-FebruaryVol 28 No 1 pp 35-8

Emory WC and Cooper DR (1991) Business Research Methods 4th ed Irwin Homewood IL

Ferguson CR and Dickinson R (1982) `Critical success factors for directors in the eightiesrsquorsquoBusiness Horizons May-June Vol 25 No 3 pp 14-18

Garcia MR (1997) ` Knowledge centralrsquorsquo InformationWeek Vol 649 pp 252-6

Ginzberg MJ (1981) ` Early diagnosis of MIS implementation failure promising results andunansweredquestionsrsquorsquo Management Science April Vol 27 No 4 pp 459-78

Gustin CM Stank TP and Daugherty PJ (1994) ` Computerization supporting integrationrsquorsquoInternational Journal of Physical Distribution and Logistic Management Vol 24 No 1pp 11-16

Hamilton S and Chervany NL (1981a) ` Evaluating information system effectiveness plusmn Part Icomparing evaluation approachesrsquorsquo MIS Quarterly September Vol 5 No 3 pp 55-69

Hamilton S and Chervany NL (1981b) ` Evaluating information system effectiveness plusmn Part IIcomparing evaluator viewpointsrsquorsquo MIS Quarterly DecemberVol 5 No 4 pp 79-86

Hoffman T (1992) ` Users share stories of downsizing pros consrsquorsquo Computerworld OctoberVol 5 p 7

Hylas RE Gordon B and Dinetz GR (1989) `The upside of downsized systemsrsquorsquo BestrsquosReview December pp 78-82

Critical successfactors forintegration

617

There are several questions to be answered about CADCAM integration withERP systems in manufacturing organisations In the research that we proposewe will investigate if

manufacturing companies who integrated CADCAM with ERP systemshave reduced their manufacturing costs

companies who integrated CADCAM with ERP systems are more likelyto increase their customersrsquo satisfaction in terms of quality and deliverytime

manufacturing companies who integrated CADCAM with ERP systemsare likely to improve their strategic advantage in terms ofmanufacturing costs and customers satisfaction

Grounded theory investigation (GTI)GTI in management can be extremely valuable (Tantoush 1998) A panel ofmanagement experts assisted in the constructions of the CSF for CADCAMintegration with ERP systems Members of the panel comprised one chiefengineer one engineering director two design engineers one productionmanager one quality control manager and one purchasing manager The chiefengineer takes the role of moderator of the group An effective group moderatorprepares a discussion guide to help ensure that the group covers all CSF ofinterest It is the moderatorrsquos job to make sure that everyone gets a chance tospeak and to ask questions to clarify topics (CSF and CADCAM integrationwith ERP systems) that have been introduced into the discussion Thecombined effort of the group is to achieve cost savings time-savings qualityand efficiency Using the grounded theory approach the group could beexpected to identify CSF for the successful integration of CADCAM with ERPsystems

Research modelThe research model used in this study is based on the CSF study of Rockart(1982) modified according to the studies of Martin (1982ab) DeLone (1988)Miller et al (1987) and Bergeron et al (1993)

Figure 3 shows a diagram summarising the proposed research modelThe variables in this model can be categorised into the following eight areas

that might determine the success of the integration of CADCAM with ERPsystems

(1) CADCAM usersrsquo appreciation of integration

(2) communication between design office and other users

(3) design office services and support functions

(4) management commitment and support

(5) organisational effectiveness

(6) training of CADCAM staff on ERP system

IJOPM2156

618

(7) security of CADCAM interface and

(8) user friendliness of ERP systems

Due to the restricted application of CADCAM a large sample may not bepossible However this study will employ a survey for randomly selectedengineers and engineering managers in CADCAM offices Several empiricalstudies have found a positive relationship between IT success and managersrsquoperceptions The perceptions of engineers and engineering managers will bechosen because of their professional qualifications interest and theirknowledge concerning problems with the system

Significance of this researchThe results of this study may provide a contribution to both academic researchand manufacturing management for CSF studies as well as for the integrationof CADCAM with ERP systems Identifying CSF could help focus futureresearch on questions that have a significant impact on decisions in regard tothe integration of CADCAM with other systems Findings may help extend theexisting knowledge on CADCAM implementation research Based on theexpected findings the risk or dark side of CADCAM integration eg hiddenconversion cost data corruption caused by inconsistencies between ERPdatabases and the server database etc may also be identified in furtherstudies

Managers could be expected to utilise the identified integration CSF to adoptmore successful CADCAM implementation strategies in the future Theexpected CSF could also be used by production managers both as evaluationcriteria for system planning and control and as a facilitator of communicationbetween production departments and their users With better utilisation and

Figure 3The conceptual researchmodel

Critical successfactors forintegration

619

better understanding concerning the integrated CADCAM organisationsmight be better able to achieve cost savings time saving quality and efficiencyin their new systems Thus the benefits of successful integration couldimprove the corporate utilisation of information systems resources and assistin achieving a competitive advantage for organisations (Symon and Clegg1991)

Measuring performance and effectivenessTo evaluate the success of CADCAM integration one should measure systemsperformance and effectiveness Hamilton and Chervany (1981a) report the needfor performance measures for ITIS They claimed that ` Evaluating systemeffectiveness in meaningful terms has been the most difficult aspect of the ITISimplementation processrsquorsquo In their study Hamilton and Chervany (1981b)described and compared the effects of evaluator viewpoints on systemeffectiveness in terms of resources-oriented perspectives (or efficiency) andinfluences-oriented perspectives (or effectiveness) Some of their evaluationitems (for example MIS personnel productivity computer performance serviceand usersrsquo attitude) are identical to the components of CSF from Rockart (1982)Martin (1982ab) and later CSF studies Some of Hamilton and Chervanyrsquosevaluation items (productivity service usersrsquo attitude and computerperformance) will be included in the research instrument Zmud (1979)suggested that organisational factors ITIS usage top managementrsquos supportdecisions performance personal and interpersonal characteristics usersrsquoattitude ITIS staff characteristics and ITIS policies influence the success ofsystem implementation (Symon and Clegg 1991) Zmud suggests also thatresearch should examine system usage user satisfaction and user performancefor ITIS success All these factors will be included in the research instrument

Ginzberg (1981) attempted to track and manipulate the controllablevariables by developing tools for system designers and users He suggestedthat two management approaches can increase the effectiveness of the systemdevelopment process One approach is to identify those variables that are bothespecially important to the success of system development and controllable bythe user or the system designer The other approach is to manage thedevelopment process of the system designer and user by utilising developmenttools and procedures Ginzberg conducted a field study in a large US bank andconcluded ` the degree of realism of userrsquos pre-implementation expectationswas positively correlated with a range of project success measures bothattitudinal and behaviouralrsquorsquo

According to Rockart and Flanneryrsquos (1983) definition of end-users an ITISmanager could serve as a system designer and user as well FollowingGinzbergrsquos suggestion this study will also attempt to examine the ITISmanagerrsquos view of the importance of ITIS implementation success Thusengineers engineering managers and ITIS managers will be chosen as theresearch subject for this study (Tantoush 1998)

IJOPM2156

620

Yaverbaum (1988) applied the ` job diagnostic surveyrsquorsquo to 84 end-users toinvestigate motivation and satisfaction in a computer environmentYaverbaumrsquos results indicate that task factors organisational factors(management support management activity and training program) and userfactors (cognitive differences users characteristics attitude age past trainingeducation job experience and user participation) affecting user satisfaction arecrucial to the success of information systems Since her results support Zmudrsquos(1979) study this study will also include organisational factors task factorsand user factors in the research instrument

MethodologyYin (1994) suggested that a case study approach is an appropriate choice ofresearch method for this type of problem This is particularly true when

the researcher has little control over the environment

the events under investigation are contemporary and

the context of the research is important

The researchers do not have any control over the CADCAM and ERPenvironments that organisations adopt In addition since the CADCAM andERP systems are at present widely used in industry the topic of research iscontemporary Furthermore there is no published research on this topic andthe outcome is likely to affect the investment and productivity of these systemsAccordingly a case study approach is suitable for this analysis

Hypotheses for this study can be grouped according to the expected CSF ofCADCAM integration with ERP Systems The hypotheses presented below arenumbered for identification on the basis of grounded theory approach

Statement of hypothesesThe development of hypotheses based on the expected CSF of the methods andprocedures used to assess the degree of success of CADCAM integration withERP systems

CADCAM usersrsquo appreciation of integrationA study by Ives and Olson (1984) reviewed 22 ITIS-related studies Only eightstudies claimed a positive relationship between user involvement and systemsuccess Seven studies claimed a negative relationship while the other sevenstudies claimed mixed results Of the seven studies that investigated therelationship between user involvement and userrsquos attitude toward the systemonly one study reported significant results with user involvement and userrsquosattitude Other studies by Baroudi et al (1986) Tait and Vessey (1988) andBarki and Hartwick (1994) point to a relationship between usersrsquo involvementand the success of integration of CADCAM systems with ERP systemsAccordingly this research proposes to examine the relationship of these two

Critical successfactors forintegration

621

variables (user involvement and usersrsquo attitude) and the success of CADCAMintegration with ERP systems

H1 User appreciation (user involvement and usersrsquo attitude) is positivelyrelated to the success of CADCAM integration with ERP systems

Communication between design office and other usersIn the case of integration of CADCAM with an ERP system the design officecould improve communication and assist users in communication with thedesign office Thus users could be less anxious and their attitude towardimplementation more favourable (Rainer et al 1992) In the environment ofCADCAM communication with users is more crucial and complex than in theclassical environment of computing Therefore this study stresses theimportance of communication between users and the design office andhypothesises that there will be a positive relationship of CADCAM integrationwith ERP system success

H2 Communication between users and the design office is positivelyrelated to the success of CADCAM integration with an ERP system

Design office services and support functionsThe basic function of the design office is to manage design and CADCAMresources and to co-ordinate and facilitate CADCAM functioning for users Aneffective design office provides drawings and Bills of materials (BoM) with acompetent design staff supporting production Services such as technicalsupport trouble shooting consulting and training are critical design officefunctions In their study Magal and Carr (1988) found that ITIS staffrsquosunderstanding of the usersrsquo business and problems plus standardisedhardware and software to be important factors for the quality of ITIS supportservices This study proposes a positive relationship between the success ofCADCAM integration with an ERP system and the support services of thedesign office

H3 The design office supporting services is positively related to thesuccess of CADCAM integration with an ERP system

Management commitment and supportThe success or failure of any business effort is often determined by the amountof top management support (Rockart 1982 Ives and Olson 1984) Engineeringand production managers actively participate in the organisationrsquos planningprocess with senior managers and top managers help engineering andproduction management and line management to overcome the problem ofunderstanding top managementrsquos objectives thus facilitating goodcommunications among management levels Engineering and productionmanagers who participate in the planning process also tend to promotecommunication and a favourable relationship with top management Thussuch managers will more likely perceive the changing business objectives andthus help engineering and production management to achieve the new business

IJOPM2156

622

objectives Top management would thus acknowledge the importance of CADCAM integration and generate an appreciation of CADCAM managementissues Top management that is better able to understand the idea or theproblems of CADCAM management during the process of CADCAMintegration will have a better image of the CADCAM integration phenomenon

Ginzberg (1981) suggested that engineering and production managementpropose a strategic plan of CADCAM integration with an ERP system to topand line management including the reasons for the change its importance tothe organisation the impacts likely to result from it and the procedure forevaluating it Such criteria will be important in determining a userrsquos response toan ITIS change from the strategic plan studied and proposed by the ITISmanager Thus under these circumstances top and line management would bemore likely to commit to and support CADCAM objectives and offer co-operation for successful CADCAM integration with an ERP system Thisstudy examines this positive relationship

H4 Management commitment and support are positively related to thesuccess of CADCAM integration with ERP systems

Organisational effectivenessAny management task should be designed to achieve the organisationrsquosobjectives similarly CADCAM integration with ERP system should bedesigned to achieve an organisationrsquos objectives If CADCAM integrationimproves an organisationrsquos effectiveness then integration is more likely to beregarded as a success During such major organisational changes CADCAMsupport may ease the tedious maintenance of drawings BoM andspecifications thus improving the quality of managersrsquo decision making andeasing the management of change This study examines the relationshipbetween the success of CADCAM integration with an ERP system andorganisational effectiveness

H5 Organisational effectiveness is positively related to the success of CADCAM integration with an ERP system

Training of CADCAM staff on ERP systemsHylas et al (1989) indicated that not all systems applications are appropriatefor implementation Selection of the wrong business functional area or thewrong application or lack of adequate training can result in system failure Notonly lack of ITIS implementation experience can cause an ITIS manager tochoose an inappropriate application incompetent ITIS staff may havedifficulty recording or developing software for ITIS implementation while adeficiency of software packages for ITIS implementation can cause rigidityand difficulty for ITIS implementation (Hoffman 1992)

Lucas (1981) suggested that human factors affect the successfulimplementation of a new ITIS more obviously than do organisationalfactors In addition when applications are moving from the mainframe tothe desktop compatibility should be maintained To ensure software

Critical successfactors forintegration

623

compatibility the design office should review syntax ERP softwarefeatures and semantics and external behaviour and provide training to itsusers This study hypothesises a positive relationship between trainingCADCAM staff on ERP system and the success of CADCAM integrationwith an ERP system

H6 Training CADCAM staff on ERP systems is positively related to thesuccess of CADCAM integration with ERP systems

Security of CADCAM interfaceApplications should be acquired to solve business problems not make problemsData are interchanged between CADCAM system and other applications such asan ERP system through the interface Many older applications often employunique antiquated and somewhat incompatible software coupled withunsophisticated security protocols One of the design office functions is to useCADCAM systems to design products and create confidential design documentssuch as BoM Therefore the security of files and data bases used by the CADCAMsystem become a major concern Accordingly the interface and system integritywill be an integral component of ERP implementation The interface integritycomponent is needed to ensure an appropriate level of internal control into theCADCAM databases The systems integrity component is required to focus onestablishing an ERP-based robust environment in which the CADCAM-ERPinterface operates The development of the integrity environment needs to mitigatethe organisational risks and ensure that the controls implemented in the system donot encumber the business The interface between CADCAM and otherapplications needs to be designed specifically for cross-platform use This studyexamines the positive relationship between the security of the CADCAM interfaceand CADCAM integration success

H7 The security of the CADCAM interface is positively related to thesuccess of CADCAM integration with the ERP system

User friendliness of ERP systemsIf the ERP system chosen is a complicated system involving significantamounts of data manipulation this could be inadequate for successful CADCAM integration The reason for this inadequacy is that complicated ERPsystems may cause difficulties for users and hence communication with theCADCAM system The candidate application for ITIS implementation shouldbe simple familiar and based on an applicationrsquos basic merits not on its politics(Klein 1991) Accordingly organisations should carefully evaluate potentialERP systems for implementation This study examines the positiverelationship between the degree of ERP user friendliness and the success ofCADCAM integration with the ERP system

H8 The degree of ERP user friendliness is positively related to the successof CADCAM integration with the ERP system

IJOPM2156

624

Research subjectsIn this study we used CADCAM users (engineers engineering managers) frombusiness organisations as subjects The reason for selecting these subjects wasthat ITIS system success measures have in past studies been significantlyrelated to the perceived CSF of ITIS managers The studies from Miller andDoyle (1987) and from Raghunathan et al (1989) both cited some other casestudies andor empirical studies that uphold this relationship Miller and Doyleand Raghunathan et al also have examined and supported this concept in theirstudies Therefore if an ITIS or CADCAM manager administers the CADCAM function corresponding to hisher CSF heshe can improve CADCAMperformance and effectiveness Thus this research will attempt to extract CSFfor CADCAM in next generation manufacturing organisations from a CADCAM usersrsquo perspective

Survey instrumentThis research used a survey-based field study of ED and production managersto investigate and test the above eight hypotheses Surveys and questionnaireswere used to facilitate collection of the required data lower sampling costspeed-up the time frame and make the required sampling size According toChurchill (1979) the research instrument must meet the requirements ofaccuracy and validity Several procedures were adopted to ensure and verifythese criteria These procedures are as follows

(1) Non-response bias Non-response bias was not found in the sampletested The non-response bias was calculated and tested by comparingthe survey results obtained from the respondents to the entire samplebecause of its availability at the designing stage of the questionnaire

(2) Reliability The instrument was found to be reliable because theCronbachrsquos coefficient alpha (not) for the instrument was found to beabove 06 (Churchill 1979 Nunnally 1978) Accordingly the reliability(stability and consistency of the measuring instrument) is assured

(3) Content validity Content validity examined the sampling adequacy ofthe instrument by

a complete and extensive inspection of the literature for all possibleitems to be included in the measurement

asking a group of academics consultants and executivesmanagers tocriticise the description and clarity of the questionnaire

the questionnaire was tested with members of the focus group prior tothe final survey The modification of the questionnaire was then basedon these expertsrsquo opinions

(4) Construct validity Construct validity tests were performed using a factoranalysis to

Critical successfactors forintegration

625

assess construct validity ie to determine the set of CSF by choosing aparticular factor loading pattern thus achieving content validity andconstruct validity

eliminate the unnecessary items from the instrument by checking thefactor loading and utilising factor extraction and rotation optionsunnecessary variables can be eliminated

(5) Practicality This criterion refers to economic factors convenience ofexecution and interpretability of data and the results (Emory andCooper 1991) This study considered the trade-off among researchvariables budget ease of management and estimated which researchinstrument best accommodated the objectives of this research study

ConclusionsA major problem with the integration of CADCAM with ERP systems is thatlittle is known about factors that contribute to or detract from its successKalakota (1997) argues that not all systems are ideal candidates forimplementation Selection of the wrong system or the wrong businessfunctional area can result not only in systems failure but can also cause tensionbetween departments and usersrsquo departments (Cronin 1996 Mougayar 1997Kalakota 1997) Many analysts believe that it is difficult to estimate the hiddencost and the staffrsquos attitude toward implementation (Kalakota 1997)

There are two situations when the organisation becomes concerned with theintegration of CADCAM with ERP systems These are

(1) when an organisation acquires CADCAM after it has already afunctioning ERP system or

(2) when the organisation implements the ERP system after it has a fullyoperational CADCAM system

In general these two situations generate two different sets of success factorsfor the integration of CADCAM with the ERP system Thus identifying CSFfor integration could help minimise risks associated with the integration andhelp promote the success of both CADCAM and ERP systems Therefore theidentification of strategies for integration of CADCAM with the ERP systemwill be the main purpose of this study

We propose that there is a significant direct relationship between theintegration of CADCAM with the ERP system and a number of CSF Severalbenefits and contributions are expected from establishing these CSF such as

Providing a checklist for integration of CADCAM with the ERP systemThat is from the findings managers can attend to what seems to be themost important activities and select an approach more likely to achievesuccess in integration of CADCAM with the ERP system

Providing a guideline for CADCAM and ERP resource managementManagers may be able to use the CSF findings of this research for better

IJOPM2156

626

CADCAM and ERP resources management such as investment inhardware software and human resources

Identifying information needs The CSF may be useful for managers toidentify their information needs for CADCAM and ERP systems andhence understand more about the required support services that usersneed suggested by Rockart (1979 1982)

Evaluating the performance of the design office The CSF may be usefulas criteria for users executives and managers to evaluate theperformance of the design office

Furnishing a foundation for communication The CSF can provide afoundation for communication between the users of CADCAM and ERPsystems

Strengthening organisational goals CSF can help the wholeorganisation understand the most important criteria and enhance itscompetitive stance

Providing a base for the future research Further research can expand onthe findings from this study For example the eight hypothesesdeveloped here should be tested and the results should be madeavailable to researchers and practitioners in the field of manufacturingmanagement

Many organisations have integrated their CADCAM with ERP systemswithout theoretical or academic rationalisation Not all implementation effortshave been successful So this research aims to identify CSF for CADCAMintegration with ERP systems The research model is based on the classic CSFstudies by Rockart (1982) and Martin (1982a b) along with others identified inthe newer literature

As this research assesses the evolution of CADCAM integration with ERPthe results from this study will serve as a foundation for further researchAdditional research may provide a better understanding and thereby improveandor confirm the findings of this research

RecommendationsA possible future study could conduct a limited number of case studies tocompare clarify and evaluate the possible response bias from this study Thereis no guarantee that the selected CSF are complete and completeness is ajudgemental limitation of this research

The possible future study of failsuccess or riskreturn factors may be ofassistance to management of organisations with CADCAM and ERP systemsOther studies could compare the success of CADCAM and ERP integration bytype of organisations annual sales number of employees and years of usingthe two systems In other words different types of organisations different sizesof organisations and different experiences in CADCAM and ERP operationmay relevant to compare the success of CADCAM and ERP integration

Critical successfactors forintegration

627

References

Barki H and Hartwick J (1994) `Measuring user participation user involvement and userattitudersquorsquo MIS Quarterly Vol 13 No 1 pp 59-82

Baraudi JJ Olson MH and Ives B (1986) `An empirical study of the impact of userinvolvement on system usage and information satisfactionrsquorsquo Communications of the ACMVol 29 No 3 pp 232-8

Bergeron F Rivard S and Raymond L (1993) `Assessment of end-user computing froman organisational perspectiversquorsquo Information Resources Management Journal Winterpp 14-25

Boynton AC and Zmud RW (1984) `An assessment of critical success factorsrsquorsquo SloanManagement Review Vol 25 No 4 Summer pp 17-27

Churchill GA Jr (1979) `A paradigm for developing better measures of marketing constructsrsquorsquoJournal of Marketing Research February pp 67-73

Clark J and Soliman F (1996) `Appraising knowledge-based system investmentrsquorsquo Proceedingsof the 3d European Conference on the Evaluation of Information Technology BathUniversity Bath 29 November pp 143-254

Clark J and Soliman F (1999) `A graphical method for assessing knowledge-basedinvestmentsrsquorsquo Journal of Logistics and Information Management Vol 12 No 1

Cronin MJ (1996) Global Advantage on the Internet Van Nostrand Reinhold New York NY

Davis GB (1979) ` Comments on the critical success factors method for obtaining managementrequirements in article by John F Rockart `Chief executives define their own data needsrsquorsquorsquoHarvard Business Review Vol 57No 2 March-April pp 81-93

Davis GB (1980) ` Letter to the Editorrsquorsquo MIS Quarterly Vol 4 No 2 June pp 69-70

DeLone WH (1988) ` Determinants of success for computer usage in small businessrsquorsquo MISQuarterly Vol 12 No 1 March pp 51-61

Dickinson RA Ferguson CR and Sircar S (1984) ` Critical success factors and smallbusinessrsquorsquo American Journal of Small Business January-March Vol III pp 49-57

Dilenschneider RL and Hyde RC (1985) `Crisis communications planning for the unplannedrsquorsquoBusiness Horizons January-FebruaryVol 28 No 1 pp 35-8

Emory WC and Cooper DR (1991) Business Research Methods 4th ed Irwin Homewood IL

Ferguson CR and Dickinson R (1982) `Critical success factors for directors in the eightiesrsquorsquoBusiness Horizons May-June Vol 25 No 3 pp 14-18

Garcia MR (1997) ` Knowledge centralrsquorsquo InformationWeek Vol 649 pp 252-6

Ginzberg MJ (1981) ` Early diagnosis of MIS implementation failure promising results andunansweredquestionsrsquorsquo Management Science April Vol 27 No 4 pp 459-78

Gustin CM Stank TP and Daugherty PJ (1994) ` Computerization supporting integrationrsquorsquoInternational Journal of Physical Distribution and Logistic Management Vol 24 No 1pp 11-16

Hamilton S and Chervany NL (1981a) ` Evaluating information system effectiveness plusmn Part Icomparing evaluation approachesrsquorsquo MIS Quarterly September Vol 5 No 3 pp 55-69

Hamilton S and Chervany NL (1981b) ` Evaluating information system effectiveness plusmn Part IIcomparing evaluator viewpointsrsquorsquo MIS Quarterly DecemberVol 5 No 4 pp 79-86

Hoffman T (1992) ` Users share stories of downsizing pros consrsquorsquo Computerworld OctoberVol 5 p 7

Hylas RE Gordon B and Dinetz GR (1989) `The upside of downsized systemsrsquorsquo BestrsquosReview December pp 78-82

IJOPM2156

618

(7) security of CADCAM interface and

(8) user friendliness of ERP systems

Due to the restricted application of CADCAM a large sample may not bepossible However this study will employ a survey for randomly selectedengineers and engineering managers in CADCAM offices Several empiricalstudies have found a positive relationship between IT success and managersrsquoperceptions The perceptions of engineers and engineering managers will bechosen because of their professional qualifications interest and theirknowledge concerning problems with the system

Significance of this researchThe results of this study may provide a contribution to both academic researchand manufacturing management for CSF studies as well as for the integrationof CADCAM with ERP systems Identifying CSF could help focus futureresearch on questions that have a significant impact on decisions in regard tothe integration of CADCAM with other systems Findings may help extend theexisting knowledge on CADCAM implementation research Based on theexpected findings the risk or dark side of CADCAM integration eg hiddenconversion cost data corruption caused by inconsistencies between ERPdatabases and the server database etc may also be identified in furtherstudies

Managers could be expected to utilise the identified integration CSF to adoptmore successful CADCAM implementation strategies in the future Theexpected CSF could also be used by production managers both as evaluationcriteria for system planning and control and as a facilitator of communicationbetween production departments and their users With better utilisation and

Figure 3The conceptual researchmodel

Critical successfactors forintegration

619

better understanding concerning the integrated CADCAM organisationsmight be better able to achieve cost savings time saving quality and efficiencyin their new systems Thus the benefits of successful integration couldimprove the corporate utilisation of information systems resources and assistin achieving a competitive advantage for organisations (Symon and Clegg1991)

Measuring performance and effectivenessTo evaluate the success of CADCAM integration one should measure systemsperformance and effectiveness Hamilton and Chervany (1981a) report the needfor performance measures for ITIS They claimed that ` Evaluating systemeffectiveness in meaningful terms has been the most difficult aspect of the ITISimplementation processrsquorsquo In their study Hamilton and Chervany (1981b)described and compared the effects of evaluator viewpoints on systemeffectiveness in terms of resources-oriented perspectives (or efficiency) andinfluences-oriented perspectives (or effectiveness) Some of their evaluationitems (for example MIS personnel productivity computer performance serviceand usersrsquo attitude) are identical to the components of CSF from Rockart (1982)Martin (1982ab) and later CSF studies Some of Hamilton and Chervanyrsquosevaluation items (productivity service usersrsquo attitude and computerperformance) will be included in the research instrument Zmud (1979)suggested that organisational factors ITIS usage top managementrsquos supportdecisions performance personal and interpersonal characteristics usersrsquoattitude ITIS staff characteristics and ITIS policies influence the success ofsystem implementation (Symon and Clegg 1991) Zmud suggests also thatresearch should examine system usage user satisfaction and user performancefor ITIS success All these factors will be included in the research instrument

Ginzberg (1981) attempted to track and manipulate the controllablevariables by developing tools for system designers and users He suggestedthat two management approaches can increase the effectiveness of the systemdevelopment process One approach is to identify those variables that are bothespecially important to the success of system development and controllable bythe user or the system designer The other approach is to manage thedevelopment process of the system designer and user by utilising developmenttools and procedures Ginzberg conducted a field study in a large US bank andconcluded ` the degree of realism of userrsquos pre-implementation expectationswas positively correlated with a range of project success measures bothattitudinal and behaviouralrsquorsquo

According to Rockart and Flanneryrsquos (1983) definition of end-users an ITISmanager could serve as a system designer and user as well FollowingGinzbergrsquos suggestion this study will also attempt to examine the ITISmanagerrsquos view of the importance of ITIS implementation success Thusengineers engineering managers and ITIS managers will be chosen as theresearch subject for this study (Tantoush 1998)

IJOPM2156

620

Yaverbaum (1988) applied the ` job diagnostic surveyrsquorsquo to 84 end-users toinvestigate motivation and satisfaction in a computer environmentYaverbaumrsquos results indicate that task factors organisational factors(management support management activity and training program) and userfactors (cognitive differences users characteristics attitude age past trainingeducation job experience and user participation) affecting user satisfaction arecrucial to the success of information systems Since her results support Zmudrsquos(1979) study this study will also include organisational factors task factorsand user factors in the research instrument

MethodologyYin (1994) suggested that a case study approach is an appropriate choice ofresearch method for this type of problem This is particularly true when

the researcher has little control over the environment

the events under investigation are contemporary and

the context of the research is important

The researchers do not have any control over the CADCAM and ERPenvironments that organisations adopt In addition since the CADCAM andERP systems are at present widely used in industry the topic of research iscontemporary Furthermore there is no published research on this topic andthe outcome is likely to affect the investment and productivity of these systemsAccordingly a case study approach is suitable for this analysis

Hypotheses for this study can be grouped according to the expected CSF ofCADCAM integration with ERP Systems The hypotheses presented below arenumbered for identification on the basis of grounded theory approach

Statement of hypothesesThe development of hypotheses based on the expected CSF of the methods andprocedures used to assess the degree of success of CADCAM integration withERP systems

CADCAM usersrsquo appreciation of integrationA study by Ives and Olson (1984) reviewed 22 ITIS-related studies Only eightstudies claimed a positive relationship between user involvement and systemsuccess Seven studies claimed a negative relationship while the other sevenstudies claimed mixed results Of the seven studies that investigated therelationship between user involvement and userrsquos attitude toward the systemonly one study reported significant results with user involvement and userrsquosattitude Other studies by Baroudi et al (1986) Tait and Vessey (1988) andBarki and Hartwick (1994) point to a relationship between usersrsquo involvementand the success of integration of CADCAM systems with ERP systemsAccordingly this research proposes to examine the relationship of these two

Critical successfactors forintegration

621

variables (user involvement and usersrsquo attitude) and the success of CADCAMintegration with ERP systems

H1 User appreciation (user involvement and usersrsquo attitude) is positivelyrelated to the success of CADCAM integration with ERP systems

Communication between design office and other usersIn the case of integration of CADCAM with an ERP system the design officecould improve communication and assist users in communication with thedesign office Thus users could be less anxious and their attitude towardimplementation more favourable (Rainer et al 1992) In the environment ofCADCAM communication with users is more crucial and complex than in theclassical environment of computing Therefore this study stresses theimportance of communication between users and the design office andhypothesises that there will be a positive relationship of CADCAM integrationwith ERP system success

H2 Communication between users and the design office is positivelyrelated to the success of CADCAM integration with an ERP system

Design office services and support functionsThe basic function of the design office is to manage design and CADCAMresources and to co-ordinate and facilitate CADCAM functioning for users Aneffective design office provides drawings and Bills of materials (BoM) with acompetent design staff supporting production Services such as technicalsupport trouble shooting consulting and training are critical design officefunctions In their study Magal and Carr (1988) found that ITIS staffrsquosunderstanding of the usersrsquo business and problems plus standardisedhardware and software to be important factors for the quality of ITIS supportservices This study proposes a positive relationship between the success ofCADCAM integration with an ERP system and the support services of thedesign office

H3 The design office supporting services is positively related to thesuccess of CADCAM integration with an ERP system

Management commitment and supportThe success or failure of any business effort is often determined by the amountof top management support (Rockart 1982 Ives and Olson 1984) Engineeringand production managers actively participate in the organisationrsquos planningprocess with senior managers and top managers help engineering andproduction management and line management to overcome the problem ofunderstanding top managementrsquos objectives thus facilitating goodcommunications among management levels Engineering and productionmanagers who participate in the planning process also tend to promotecommunication and a favourable relationship with top management Thussuch managers will more likely perceive the changing business objectives andthus help engineering and production management to achieve the new business

IJOPM2156

622

objectives Top management would thus acknowledge the importance of CADCAM integration and generate an appreciation of CADCAM managementissues Top management that is better able to understand the idea or theproblems of CADCAM management during the process of CADCAMintegration will have a better image of the CADCAM integration phenomenon

Ginzberg (1981) suggested that engineering and production managementpropose a strategic plan of CADCAM integration with an ERP system to topand line management including the reasons for the change its importance tothe organisation the impacts likely to result from it and the procedure forevaluating it Such criteria will be important in determining a userrsquos response toan ITIS change from the strategic plan studied and proposed by the ITISmanager Thus under these circumstances top and line management would bemore likely to commit to and support CADCAM objectives and offer co-operation for successful CADCAM integration with an ERP system Thisstudy examines this positive relationship

H4 Management commitment and support are positively related to thesuccess of CADCAM integration with ERP systems

Organisational effectivenessAny management task should be designed to achieve the organisationrsquosobjectives similarly CADCAM integration with ERP system should bedesigned to achieve an organisationrsquos objectives If CADCAM integrationimproves an organisationrsquos effectiveness then integration is more likely to beregarded as a success During such major organisational changes CADCAMsupport may ease the tedious maintenance of drawings BoM andspecifications thus improving the quality of managersrsquo decision making andeasing the management of change This study examines the relationshipbetween the success of CADCAM integration with an ERP system andorganisational effectiveness

H5 Organisational effectiveness is positively related to the success of CADCAM integration with an ERP system

Training of CADCAM staff on ERP systemsHylas et al (1989) indicated that not all systems applications are appropriatefor implementation Selection of the wrong business functional area or thewrong application or lack of adequate training can result in system failure Notonly lack of ITIS implementation experience can cause an ITIS manager tochoose an inappropriate application incompetent ITIS staff may havedifficulty recording or developing software for ITIS implementation while adeficiency of software packages for ITIS implementation can cause rigidityand difficulty for ITIS implementation (Hoffman 1992)

Lucas (1981) suggested that human factors affect the successfulimplementation of a new ITIS more obviously than do organisationalfactors In addition when applications are moving from the mainframe tothe desktop compatibility should be maintained To ensure software

Critical successfactors forintegration

623

compatibility the design office should review syntax ERP softwarefeatures and semantics and external behaviour and provide training to itsusers This study hypothesises a positive relationship between trainingCADCAM staff on ERP system and the success of CADCAM integrationwith an ERP system

H6 Training CADCAM staff on ERP systems is positively related to thesuccess of CADCAM integration with ERP systems

Security of CADCAM interfaceApplications should be acquired to solve business problems not make problemsData are interchanged between CADCAM system and other applications such asan ERP system through the interface Many older applications often employunique antiquated and somewhat incompatible software coupled withunsophisticated security protocols One of the design office functions is to useCADCAM systems to design products and create confidential design documentssuch as BoM Therefore the security of files and data bases used by the CADCAMsystem become a major concern Accordingly the interface and system integritywill be an integral component of ERP implementation The interface integritycomponent is needed to ensure an appropriate level of internal control into theCADCAM databases The systems integrity component is required to focus onestablishing an ERP-based robust environment in which the CADCAM-ERPinterface operates The development of the integrity environment needs to mitigatethe organisational risks and ensure that the controls implemented in the system donot encumber the business The interface between CADCAM and otherapplications needs to be designed specifically for cross-platform use This studyexamines the positive relationship between the security of the CADCAM interfaceand CADCAM integration success

H7 The security of the CADCAM interface is positively related to thesuccess of CADCAM integration with the ERP system

User friendliness of ERP systemsIf the ERP system chosen is a complicated system involving significantamounts of data manipulation this could be inadequate for successful CADCAM integration The reason for this inadequacy is that complicated ERPsystems may cause difficulties for users and hence communication with theCADCAM system The candidate application for ITIS implementation shouldbe simple familiar and based on an applicationrsquos basic merits not on its politics(Klein 1991) Accordingly organisations should carefully evaluate potentialERP systems for implementation This study examines the positiverelationship between the degree of ERP user friendliness and the success ofCADCAM integration with the ERP system

H8 The degree of ERP user friendliness is positively related to the successof CADCAM integration with the ERP system

IJOPM2156

624

Research subjectsIn this study we used CADCAM users (engineers engineering managers) frombusiness organisations as subjects The reason for selecting these subjects wasthat ITIS system success measures have in past studies been significantlyrelated to the perceived CSF of ITIS managers The studies from Miller andDoyle (1987) and from Raghunathan et al (1989) both cited some other casestudies andor empirical studies that uphold this relationship Miller and Doyleand Raghunathan et al also have examined and supported this concept in theirstudies Therefore if an ITIS or CADCAM manager administers the CADCAM function corresponding to hisher CSF heshe can improve CADCAMperformance and effectiveness Thus this research will attempt to extract CSFfor CADCAM in next generation manufacturing organisations from a CADCAM usersrsquo perspective

Survey instrumentThis research used a survey-based field study of ED and production managersto investigate and test the above eight hypotheses Surveys and questionnaireswere used to facilitate collection of the required data lower sampling costspeed-up the time frame and make the required sampling size According toChurchill (1979) the research instrument must meet the requirements ofaccuracy and validity Several procedures were adopted to ensure and verifythese criteria These procedures are as follows

(1) Non-response bias Non-response bias was not found in the sampletested The non-response bias was calculated and tested by comparingthe survey results obtained from the respondents to the entire samplebecause of its availability at the designing stage of the questionnaire

(2) Reliability The instrument was found to be reliable because theCronbachrsquos coefficient alpha (not) for the instrument was found to beabove 06 (Churchill 1979 Nunnally 1978) Accordingly the reliability(stability and consistency of the measuring instrument) is assured

(3) Content validity Content validity examined the sampling adequacy ofthe instrument by

a complete and extensive inspection of the literature for all possibleitems to be included in the measurement

asking a group of academics consultants and executivesmanagers tocriticise the description and clarity of the questionnaire

the questionnaire was tested with members of the focus group prior tothe final survey The modification of the questionnaire was then basedon these expertsrsquo opinions

(4) Construct validity Construct validity tests were performed using a factoranalysis to

Critical successfactors forintegration

625

assess construct validity ie to determine the set of CSF by choosing aparticular factor loading pattern thus achieving content validity andconstruct validity

eliminate the unnecessary items from the instrument by checking thefactor loading and utilising factor extraction and rotation optionsunnecessary variables can be eliminated

(5) Practicality This criterion refers to economic factors convenience ofexecution and interpretability of data and the results (Emory andCooper 1991) This study considered the trade-off among researchvariables budget ease of management and estimated which researchinstrument best accommodated the objectives of this research study

ConclusionsA major problem with the integration of CADCAM with ERP systems is thatlittle is known about factors that contribute to or detract from its successKalakota (1997) argues that not all systems are ideal candidates forimplementation Selection of the wrong system or the wrong businessfunctional area can result not only in systems failure but can also cause tensionbetween departments and usersrsquo departments (Cronin 1996 Mougayar 1997Kalakota 1997) Many analysts believe that it is difficult to estimate the hiddencost and the staffrsquos attitude toward implementation (Kalakota 1997)

There are two situations when the organisation becomes concerned with theintegration of CADCAM with ERP systems These are

(1) when an organisation acquires CADCAM after it has already afunctioning ERP system or

(2) when the organisation implements the ERP system after it has a fullyoperational CADCAM system

In general these two situations generate two different sets of success factorsfor the integration of CADCAM with the ERP system Thus identifying CSFfor integration could help minimise risks associated with the integration andhelp promote the success of both CADCAM and ERP systems Therefore theidentification of strategies for integration of CADCAM with the ERP systemwill be the main purpose of this study

We propose that there is a significant direct relationship between theintegration of CADCAM with the ERP system and a number of CSF Severalbenefits and contributions are expected from establishing these CSF such as

Providing a checklist for integration of CADCAM with the ERP systemThat is from the findings managers can attend to what seems to be themost important activities and select an approach more likely to achievesuccess in integration of CADCAM with the ERP system

Providing a guideline for CADCAM and ERP resource managementManagers may be able to use the CSF findings of this research for better

IJOPM2156

626

CADCAM and ERP resources management such as investment inhardware software and human resources

Identifying information needs The CSF may be useful for managers toidentify their information needs for CADCAM and ERP systems andhence understand more about the required support services that usersneed suggested by Rockart (1979 1982)

Evaluating the performance of the design office The CSF may be usefulas criteria for users executives and managers to evaluate theperformance of the design office

Furnishing a foundation for communication The CSF can provide afoundation for communication between the users of CADCAM and ERPsystems

Strengthening organisational goals CSF can help the wholeorganisation understand the most important criteria and enhance itscompetitive stance

Providing a base for the future research Further research can expand onthe findings from this study For example the eight hypothesesdeveloped here should be tested and the results should be madeavailable to researchers and practitioners in the field of manufacturingmanagement

Many organisations have integrated their CADCAM with ERP systemswithout theoretical or academic rationalisation Not all implementation effortshave been successful So this research aims to identify CSF for CADCAMintegration with ERP systems The research model is based on the classic CSFstudies by Rockart (1982) and Martin (1982a b) along with others identified inthe newer literature

As this research assesses the evolution of CADCAM integration with ERPthe results from this study will serve as a foundation for further researchAdditional research may provide a better understanding and thereby improveandor confirm the findings of this research

RecommendationsA possible future study could conduct a limited number of case studies tocompare clarify and evaluate the possible response bias from this study Thereis no guarantee that the selected CSF are complete and completeness is ajudgemental limitation of this research

The possible future study of failsuccess or riskreturn factors may be ofassistance to management of organisations with CADCAM and ERP systemsOther studies could compare the success of CADCAM and ERP integration bytype of organisations annual sales number of employees and years of usingthe two systems In other words different types of organisations different sizesof organisations and different experiences in CADCAM and ERP operationmay relevant to compare the success of CADCAM and ERP integration

Critical successfactors forintegration

627

References

Barki H and Hartwick J (1994) `Measuring user participation user involvement and userattitudersquorsquo MIS Quarterly Vol 13 No 1 pp 59-82

Baraudi JJ Olson MH and Ives B (1986) `An empirical study of the impact of userinvolvement on system usage and information satisfactionrsquorsquo Communications of the ACMVol 29 No 3 pp 232-8

Bergeron F Rivard S and Raymond L (1993) `Assessment of end-user computing froman organisational perspectiversquorsquo Information Resources Management Journal Winterpp 14-25

Boynton AC and Zmud RW (1984) `An assessment of critical success factorsrsquorsquo SloanManagement Review Vol 25 No 4 Summer pp 17-27

Churchill GA Jr (1979) `A paradigm for developing better measures of marketing constructsrsquorsquoJournal of Marketing Research February pp 67-73

Clark J and Soliman F (1996) `Appraising knowledge-based system investmentrsquorsquo Proceedingsof the 3d European Conference on the Evaluation of Information Technology BathUniversity Bath 29 November pp 143-254

Clark J and Soliman F (1999) `A graphical method for assessing knowledge-basedinvestmentsrsquorsquo Journal of Logistics and Information Management Vol 12 No 1

Cronin MJ (1996) Global Advantage on the Internet Van Nostrand Reinhold New York NY

Davis GB (1979) ` Comments on the critical success factors method for obtaining managementrequirements in article by John F Rockart `Chief executives define their own data needsrsquorsquorsquoHarvard Business Review Vol 57No 2 March-April pp 81-93

Davis GB (1980) ` Letter to the Editorrsquorsquo MIS Quarterly Vol 4 No 2 June pp 69-70

DeLone WH (1988) ` Determinants of success for computer usage in small businessrsquorsquo MISQuarterly Vol 12 No 1 March pp 51-61

Dickinson RA Ferguson CR and Sircar S (1984) ` Critical success factors and smallbusinessrsquorsquo American Journal of Small Business January-March Vol III pp 49-57

Dilenschneider RL and Hyde RC (1985) `Crisis communications planning for the unplannedrsquorsquoBusiness Horizons January-FebruaryVol 28 No 1 pp 35-8

Emory WC and Cooper DR (1991) Business Research Methods 4th ed Irwin Homewood IL

Ferguson CR and Dickinson R (1982) `Critical success factors for directors in the eightiesrsquorsquoBusiness Horizons May-June Vol 25 No 3 pp 14-18

Garcia MR (1997) ` Knowledge centralrsquorsquo InformationWeek Vol 649 pp 252-6

Ginzberg MJ (1981) ` Early diagnosis of MIS implementation failure promising results andunansweredquestionsrsquorsquo Management Science April Vol 27 No 4 pp 459-78

Gustin CM Stank TP and Daugherty PJ (1994) ` Computerization supporting integrationrsquorsquoInternational Journal of Physical Distribution and Logistic Management Vol 24 No 1pp 11-16

Hamilton S and Chervany NL (1981a) ` Evaluating information system effectiveness plusmn Part Icomparing evaluation approachesrsquorsquo MIS Quarterly September Vol 5 No 3 pp 55-69

Hamilton S and Chervany NL (1981b) ` Evaluating information system effectiveness plusmn Part IIcomparing evaluator viewpointsrsquorsquo MIS Quarterly DecemberVol 5 No 4 pp 79-86

Hoffman T (1992) ` Users share stories of downsizing pros consrsquorsquo Computerworld OctoberVol 5 p 7

Hylas RE Gordon B and Dinetz GR (1989) `The upside of downsized systemsrsquorsquo BestrsquosReview December pp 78-82

Critical successfactors forintegration

619

better understanding concerning the integrated CADCAM organisationsmight be better able to achieve cost savings time saving quality and efficiencyin their new systems Thus the benefits of successful integration couldimprove the corporate utilisation of information systems resources and assistin achieving a competitive advantage for organisations (Symon and Clegg1991)

Measuring performance and effectivenessTo evaluate the success of CADCAM integration one should measure systemsperformance and effectiveness Hamilton and Chervany (1981a) report the needfor performance measures for ITIS They claimed that ` Evaluating systemeffectiveness in meaningful terms has been the most difficult aspect of the ITISimplementation processrsquorsquo In their study Hamilton and Chervany (1981b)described and compared the effects of evaluator viewpoints on systemeffectiveness in terms of resources-oriented perspectives (or efficiency) andinfluences-oriented perspectives (or effectiveness) Some of their evaluationitems (for example MIS personnel productivity computer performance serviceand usersrsquo attitude) are identical to the components of CSF from Rockart (1982)Martin (1982ab) and later CSF studies Some of Hamilton and Chervanyrsquosevaluation items (productivity service usersrsquo attitude and computerperformance) will be included in the research instrument Zmud (1979)suggested that organisational factors ITIS usage top managementrsquos supportdecisions performance personal and interpersonal characteristics usersrsquoattitude ITIS staff characteristics and ITIS policies influence the success ofsystem implementation (Symon and Clegg 1991) Zmud suggests also thatresearch should examine system usage user satisfaction and user performancefor ITIS success All these factors will be included in the research instrument

Ginzberg (1981) attempted to track and manipulate the controllablevariables by developing tools for system designers and users He suggestedthat two management approaches can increase the effectiveness of the systemdevelopment process One approach is to identify those variables that are bothespecially important to the success of system development and controllable bythe user or the system designer The other approach is to manage thedevelopment process of the system designer and user by utilising developmenttools and procedures Ginzberg conducted a field study in a large US bank andconcluded ` the degree of realism of userrsquos pre-implementation expectationswas positively correlated with a range of project success measures bothattitudinal and behaviouralrsquorsquo

According to Rockart and Flanneryrsquos (1983) definition of end-users an ITISmanager could serve as a system designer and user as well FollowingGinzbergrsquos suggestion this study will also attempt to examine the ITISmanagerrsquos view of the importance of ITIS implementation success Thusengineers engineering managers and ITIS managers will be chosen as theresearch subject for this study (Tantoush 1998)

IJOPM2156

620

Yaverbaum (1988) applied the ` job diagnostic surveyrsquorsquo to 84 end-users toinvestigate motivation and satisfaction in a computer environmentYaverbaumrsquos results indicate that task factors organisational factors(management support management activity and training program) and userfactors (cognitive differences users characteristics attitude age past trainingeducation job experience and user participation) affecting user satisfaction arecrucial to the success of information systems Since her results support Zmudrsquos(1979) study this study will also include organisational factors task factorsand user factors in the research instrument

MethodologyYin (1994) suggested that a case study approach is an appropriate choice ofresearch method for this type of problem This is particularly true when

the researcher has little control over the environment

the events under investigation are contemporary and

the context of the research is important

The researchers do not have any control over the CADCAM and ERPenvironments that organisations adopt In addition since the CADCAM andERP systems are at present widely used in industry the topic of research iscontemporary Furthermore there is no published research on this topic andthe outcome is likely to affect the investment and productivity of these systemsAccordingly a case study approach is suitable for this analysis

Hypotheses for this study can be grouped according to the expected CSF ofCADCAM integration with ERP Systems The hypotheses presented below arenumbered for identification on the basis of grounded theory approach

Statement of hypothesesThe development of hypotheses based on the expected CSF of the methods andprocedures used to assess the degree of success of CADCAM integration withERP systems

CADCAM usersrsquo appreciation of integrationA study by Ives and Olson (1984) reviewed 22 ITIS-related studies Only eightstudies claimed a positive relationship between user involvement and systemsuccess Seven studies claimed a negative relationship while the other sevenstudies claimed mixed results Of the seven studies that investigated therelationship between user involvement and userrsquos attitude toward the systemonly one study reported significant results with user involvement and userrsquosattitude Other studies by Baroudi et al (1986) Tait and Vessey (1988) andBarki and Hartwick (1994) point to a relationship between usersrsquo involvementand the success of integration of CADCAM systems with ERP systemsAccordingly this research proposes to examine the relationship of these two

Critical successfactors forintegration

621

variables (user involvement and usersrsquo attitude) and the success of CADCAMintegration with ERP systems

H1 User appreciation (user involvement and usersrsquo attitude) is positivelyrelated to the success of CADCAM integration with ERP systems

Communication between design office and other usersIn the case of integration of CADCAM with an ERP system the design officecould improve communication and assist users in communication with thedesign office Thus users could be less anxious and their attitude towardimplementation more favourable (Rainer et al 1992) In the environment ofCADCAM communication with users is more crucial and complex than in theclassical environment of computing Therefore this study stresses theimportance of communication between users and the design office andhypothesises that there will be a positive relationship of CADCAM integrationwith ERP system success

H2 Communication between users and the design office is positivelyrelated to the success of CADCAM integration with an ERP system

Design office services and support functionsThe basic function of the design office is to manage design and CADCAMresources and to co-ordinate and facilitate CADCAM functioning for users Aneffective design office provides drawings and Bills of materials (BoM) with acompetent design staff supporting production Services such as technicalsupport trouble shooting consulting and training are critical design officefunctions In their study Magal and Carr (1988) found that ITIS staffrsquosunderstanding of the usersrsquo business and problems plus standardisedhardware and software to be important factors for the quality of ITIS supportservices This study proposes a positive relationship between the success ofCADCAM integration with an ERP system and the support services of thedesign office

H3 The design office supporting services is positively related to thesuccess of CADCAM integration with an ERP system

Management commitment and supportThe success or failure of any business effort is often determined by the amountof top management support (Rockart 1982 Ives and Olson 1984) Engineeringand production managers actively participate in the organisationrsquos planningprocess with senior managers and top managers help engineering andproduction management and line management to overcome the problem ofunderstanding top managementrsquos objectives thus facilitating goodcommunications among management levels Engineering and productionmanagers who participate in the planning process also tend to promotecommunication and a favourable relationship with top management Thussuch managers will more likely perceive the changing business objectives andthus help engineering and production management to achieve the new business

IJOPM2156

622

objectives Top management would thus acknowledge the importance of CADCAM integration and generate an appreciation of CADCAM managementissues Top management that is better able to understand the idea or theproblems of CADCAM management during the process of CADCAMintegration will have a better image of the CADCAM integration phenomenon

Ginzberg (1981) suggested that engineering and production managementpropose a strategic plan of CADCAM integration with an ERP system to topand line management including the reasons for the change its importance tothe organisation the impacts likely to result from it and the procedure forevaluating it Such criteria will be important in determining a userrsquos response toan ITIS change from the strategic plan studied and proposed by the ITISmanager Thus under these circumstances top and line management would bemore likely to commit to and support CADCAM objectives and offer co-operation for successful CADCAM integration with an ERP system Thisstudy examines this positive relationship

H4 Management commitment and support are positively related to thesuccess of CADCAM integration with ERP systems

Organisational effectivenessAny management task should be designed to achieve the organisationrsquosobjectives similarly CADCAM integration with ERP system should bedesigned to achieve an organisationrsquos objectives If CADCAM integrationimproves an organisationrsquos effectiveness then integration is more likely to beregarded as a success During such major organisational changes CADCAMsupport may ease the tedious maintenance of drawings BoM andspecifications thus improving the quality of managersrsquo decision making andeasing the management of change This study examines the relationshipbetween the success of CADCAM integration with an ERP system andorganisational effectiveness

H5 Organisational effectiveness is positively related to the success of CADCAM integration with an ERP system

Training of CADCAM staff on ERP systemsHylas et al (1989) indicated that not all systems applications are appropriatefor implementation Selection of the wrong business functional area or thewrong application or lack of adequate training can result in system failure Notonly lack of ITIS implementation experience can cause an ITIS manager tochoose an inappropriate application incompetent ITIS staff may havedifficulty recording or developing software for ITIS implementation while adeficiency of software packages for ITIS implementation can cause rigidityand difficulty for ITIS implementation (Hoffman 1992)

Lucas (1981) suggested that human factors affect the successfulimplementation of a new ITIS more obviously than do organisationalfactors In addition when applications are moving from the mainframe tothe desktop compatibility should be maintained To ensure software

Critical successfactors forintegration

623

compatibility the design office should review syntax ERP softwarefeatures and semantics and external behaviour and provide training to itsusers This study hypothesises a positive relationship between trainingCADCAM staff on ERP system and the success of CADCAM integrationwith an ERP system

H6 Training CADCAM staff on ERP systems is positively related to thesuccess of CADCAM integration with ERP systems

Security of CADCAM interfaceApplications should be acquired to solve business problems not make problemsData are interchanged between CADCAM system and other applications such asan ERP system through the interface Many older applications often employunique antiquated and somewhat incompatible software coupled withunsophisticated security protocols One of the design office functions is to useCADCAM systems to design products and create confidential design documentssuch as BoM Therefore the security of files and data bases used by the CADCAMsystem become a major concern Accordingly the interface and system integritywill be an integral component of ERP implementation The interface integritycomponent is needed to ensure an appropriate level of internal control into theCADCAM databases The systems integrity component is required to focus onestablishing an ERP-based robust environment in which the CADCAM-ERPinterface operates The development of the integrity environment needs to mitigatethe organisational risks and ensure that the controls implemented in the system donot encumber the business The interface between CADCAM and otherapplications needs to be designed specifically for cross-platform use This studyexamines the positive relationship between the security of the CADCAM interfaceand CADCAM integration success

H7 The security of the CADCAM interface is positively related to thesuccess of CADCAM integration with the ERP system

User friendliness of ERP systemsIf the ERP system chosen is a complicated system involving significantamounts of data manipulation this could be inadequate for successful CADCAM integration The reason for this inadequacy is that complicated ERPsystems may cause difficulties for users and hence communication with theCADCAM system The candidate application for ITIS implementation shouldbe simple familiar and based on an applicationrsquos basic merits not on its politics(Klein 1991) Accordingly organisations should carefully evaluate potentialERP systems for implementation This study examines the positiverelationship between the degree of ERP user friendliness and the success ofCADCAM integration with the ERP system

H8 The degree of ERP user friendliness is positively related to the successof CADCAM integration with the ERP system

IJOPM2156

624

Research subjectsIn this study we used CADCAM users (engineers engineering managers) frombusiness organisations as subjects The reason for selecting these subjects wasthat ITIS system success measures have in past studies been significantlyrelated to the perceived CSF of ITIS managers The studies from Miller andDoyle (1987) and from Raghunathan et al (1989) both cited some other casestudies andor empirical studies that uphold this relationship Miller and Doyleand Raghunathan et al also have examined and supported this concept in theirstudies Therefore if an ITIS or CADCAM manager administers the CADCAM function corresponding to hisher CSF heshe can improve CADCAMperformance and effectiveness Thus this research will attempt to extract CSFfor CADCAM in next generation manufacturing organisations from a CADCAM usersrsquo perspective

Survey instrumentThis research used a survey-based field study of ED and production managersto investigate and test the above eight hypotheses Surveys and questionnaireswere used to facilitate collection of the required data lower sampling costspeed-up the time frame and make the required sampling size According toChurchill (1979) the research instrument must meet the requirements ofaccuracy and validity Several procedures were adopted to ensure and verifythese criteria These procedures are as follows

(1) Non-response bias Non-response bias was not found in the sampletested The non-response bias was calculated and tested by comparingthe survey results obtained from the respondents to the entire samplebecause of its availability at the designing stage of the questionnaire

(2) Reliability The instrument was found to be reliable because theCronbachrsquos coefficient alpha (not) for the instrument was found to beabove 06 (Churchill 1979 Nunnally 1978) Accordingly the reliability(stability and consistency of the measuring instrument) is assured

(3) Content validity Content validity examined the sampling adequacy ofthe instrument by

a complete and extensive inspection of the literature for all possibleitems to be included in the measurement

asking a group of academics consultants and executivesmanagers tocriticise the description and clarity of the questionnaire

the questionnaire was tested with members of the focus group prior tothe final survey The modification of the questionnaire was then basedon these expertsrsquo opinions

(4) Construct validity Construct validity tests were performed using a factoranalysis to

Critical successfactors forintegration

625

assess construct validity ie to determine the set of CSF by choosing aparticular factor loading pattern thus achieving content validity andconstruct validity

eliminate the unnecessary items from the instrument by checking thefactor loading and utilising factor extraction and rotation optionsunnecessary variables can be eliminated

(5) Practicality This criterion refers to economic factors convenience ofexecution and interpretability of data and the results (Emory andCooper 1991) This study considered the trade-off among researchvariables budget ease of management and estimated which researchinstrument best accommodated the objectives of this research study

ConclusionsA major problem with the integration of CADCAM with ERP systems is thatlittle is known about factors that contribute to or detract from its successKalakota (1997) argues that not all systems are ideal candidates forimplementation Selection of the wrong system or the wrong businessfunctional area can result not only in systems failure but can also cause tensionbetween departments and usersrsquo departments (Cronin 1996 Mougayar 1997Kalakota 1997) Many analysts believe that it is difficult to estimate the hiddencost and the staffrsquos attitude toward implementation (Kalakota 1997)

There are two situations when the organisation becomes concerned with theintegration of CADCAM with ERP systems These are

(1) when an organisation acquires CADCAM after it has already afunctioning ERP system or

(2) when the organisation implements the ERP system after it has a fullyoperational CADCAM system

In general these two situations generate two different sets of success factorsfor the integration of CADCAM with the ERP system Thus identifying CSFfor integration could help minimise risks associated with the integration andhelp promote the success of both CADCAM and ERP systems Therefore theidentification of strategies for integration of CADCAM with the ERP systemwill be the main purpose of this study

We propose that there is a significant direct relationship between theintegration of CADCAM with the ERP system and a number of CSF Severalbenefits and contributions are expected from establishing these CSF such as

Providing a checklist for integration of CADCAM with the ERP systemThat is from the findings managers can attend to what seems to be themost important activities and select an approach more likely to achievesuccess in integration of CADCAM with the ERP system

Providing a guideline for CADCAM and ERP resource managementManagers may be able to use the CSF findings of this research for better

IJOPM2156

626

CADCAM and ERP resources management such as investment inhardware software and human resources

Identifying information needs The CSF may be useful for managers toidentify their information needs for CADCAM and ERP systems andhence understand more about the required support services that usersneed suggested by Rockart (1979 1982)

Evaluating the performance of the design office The CSF may be usefulas criteria for users executives and managers to evaluate theperformance of the design office

Furnishing a foundation for communication The CSF can provide afoundation for communication between the users of CADCAM and ERPsystems

Strengthening organisational goals CSF can help the wholeorganisation understand the most important criteria and enhance itscompetitive stance

Providing a base for the future research Further research can expand onthe findings from this study For example the eight hypothesesdeveloped here should be tested and the results should be madeavailable to researchers and practitioners in the field of manufacturingmanagement

Many organisations have integrated their CADCAM with ERP systemswithout theoretical or academic rationalisation Not all implementation effortshave been successful So this research aims to identify CSF for CADCAMintegration with ERP systems The research model is based on the classic CSFstudies by Rockart (1982) and Martin (1982a b) along with others identified inthe newer literature

As this research assesses the evolution of CADCAM integration with ERPthe results from this study will serve as a foundation for further researchAdditional research may provide a better understanding and thereby improveandor confirm the findings of this research

RecommendationsA possible future study could conduct a limited number of case studies tocompare clarify and evaluate the possible response bias from this study Thereis no guarantee that the selected CSF are complete and completeness is ajudgemental limitation of this research

The possible future study of failsuccess or riskreturn factors may be ofassistance to management of organisations with CADCAM and ERP systemsOther studies could compare the success of CADCAM and ERP integration bytype of organisations annual sales number of employees and years of usingthe two systems In other words different types of organisations different sizesof organisations and different experiences in CADCAM and ERP operationmay relevant to compare the success of CADCAM and ERP integration

Critical successfactors forintegration

627

References

Barki H and Hartwick J (1994) `Measuring user participation user involvement and userattitudersquorsquo MIS Quarterly Vol 13 No 1 pp 59-82

Baraudi JJ Olson MH and Ives B (1986) `An empirical study of the impact of userinvolvement on system usage and information satisfactionrsquorsquo Communications of the ACMVol 29 No 3 pp 232-8

Bergeron F Rivard S and Raymond L (1993) `Assessment of end-user computing froman organisational perspectiversquorsquo Information Resources Management Journal Winterpp 14-25

Boynton AC and Zmud RW (1984) `An assessment of critical success factorsrsquorsquo SloanManagement Review Vol 25 No 4 Summer pp 17-27

Churchill GA Jr (1979) `A paradigm for developing better measures of marketing constructsrsquorsquoJournal of Marketing Research February pp 67-73

Clark J and Soliman F (1996) `Appraising knowledge-based system investmentrsquorsquo Proceedingsof the 3d European Conference on the Evaluation of Information Technology BathUniversity Bath 29 November pp 143-254

Clark J and Soliman F (1999) `A graphical method for assessing knowledge-basedinvestmentsrsquorsquo Journal of Logistics and Information Management Vol 12 No 1

Cronin MJ (1996) Global Advantage on the Internet Van Nostrand Reinhold New York NY

Davis GB (1979) ` Comments on the critical success factors method for obtaining managementrequirements in article by John F Rockart `Chief executives define their own data needsrsquorsquorsquoHarvard Business Review Vol 57No 2 March-April pp 81-93

Davis GB (1980) ` Letter to the Editorrsquorsquo MIS Quarterly Vol 4 No 2 June pp 69-70

DeLone WH (1988) ` Determinants of success for computer usage in small businessrsquorsquo MISQuarterly Vol 12 No 1 March pp 51-61

Dickinson RA Ferguson CR and Sircar S (1984) ` Critical success factors and smallbusinessrsquorsquo American Journal of Small Business January-March Vol III pp 49-57

Dilenschneider RL and Hyde RC (1985) `Crisis communications planning for the unplannedrsquorsquoBusiness Horizons January-FebruaryVol 28 No 1 pp 35-8

Emory WC and Cooper DR (1991) Business Research Methods 4th ed Irwin Homewood IL

Ferguson CR and Dickinson R (1982) `Critical success factors for directors in the eightiesrsquorsquoBusiness Horizons May-June Vol 25 No 3 pp 14-18

Garcia MR (1997) ` Knowledge centralrsquorsquo InformationWeek Vol 649 pp 252-6

Ginzberg MJ (1981) ` Early diagnosis of MIS implementation failure promising results andunansweredquestionsrsquorsquo Management Science April Vol 27 No 4 pp 459-78

Gustin CM Stank TP and Daugherty PJ (1994) ` Computerization supporting integrationrsquorsquoInternational Journal of Physical Distribution and Logistic Management Vol 24 No 1pp 11-16

Hamilton S and Chervany NL (1981a) ` Evaluating information system effectiveness plusmn Part Icomparing evaluation approachesrsquorsquo MIS Quarterly September Vol 5 No 3 pp 55-69

Hamilton S and Chervany NL (1981b) ` Evaluating information system effectiveness plusmn Part IIcomparing evaluator viewpointsrsquorsquo MIS Quarterly DecemberVol 5 No 4 pp 79-86

Hoffman T (1992) ` Users share stories of downsizing pros consrsquorsquo Computerworld OctoberVol 5 p 7

Hylas RE Gordon B and Dinetz GR (1989) `The upside of downsized systemsrsquorsquo BestrsquosReview December pp 78-82

IJOPM2156

620

Yaverbaum (1988) applied the ` job diagnostic surveyrsquorsquo to 84 end-users toinvestigate motivation and satisfaction in a computer environmentYaverbaumrsquos results indicate that task factors organisational factors(management support management activity and training program) and userfactors (cognitive differences users characteristics attitude age past trainingeducation job experience and user participation) affecting user satisfaction arecrucial to the success of information systems Since her results support Zmudrsquos(1979) study this study will also include organisational factors task factorsand user factors in the research instrument

MethodologyYin (1994) suggested that a case study approach is an appropriate choice ofresearch method for this type of problem This is particularly true when

the researcher has little control over the environment

the events under investigation are contemporary and

the context of the research is important

The researchers do not have any control over the CADCAM and ERPenvironments that organisations adopt In addition since the CADCAM andERP systems are at present widely used in industry the topic of research iscontemporary Furthermore there is no published research on this topic andthe outcome is likely to affect the investment and productivity of these systemsAccordingly a case study approach is suitable for this analysis

Hypotheses for this study can be grouped according to the expected CSF ofCADCAM integration with ERP Systems The hypotheses presented below arenumbered for identification on the basis of grounded theory approach

Statement of hypothesesThe development of hypotheses based on the expected CSF of the methods andprocedures used to assess the degree of success of CADCAM integration withERP systems

CADCAM usersrsquo appreciation of integrationA study by Ives and Olson (1984) reviewed 22 ITIS-related studies Only eightstudies claimed a positive relationship between user involvement and systemsuccess Seven studies claimed a negative relationship while the other sevenstudies claimed mixed results Of the seven studies that investigated therelationship between user involvement and userrsquos attitude toward the systemonly one study reported significant results with user involvement and userrsquosattitude Other studies by Baroudi et al (1986) Tait and Vessey (1988) andBarki and Hartwick (1994) point to a relationship between usersrsquo involvementand the success of integration of CADCAM systems with ERP systemsAccordingly this research proposes to examine the relationship of these two

Critical successfactors forintegration

621

variables (user involvement and usersrsquo attitude) and the success of CADCAMintegration with ERP systems

H1 User appreciation (user involvement and usersrsquo attitude) is positivelyrelated to the success of CADCAM integration with ERP systems

Communication between design office and other usersIn the case of integration of CADCAM with an ERP system the design officecould improve communication and assist users in communication with thedesign office Thus users could be less anxious and their attitude towardimplementation more favourable (Rainer et al 1992) In the environment ofCADCAM communication with users is more crucial and complex than in theclassical environment of computing Therefore this study stresses theimportance of communication between users and the design office andhypothesises that there will be a positive relationship of CADCAM integrationwith ERP system success

H2 Communication between users and the design office is positivelyrelated to the success of CADCAM integration with an ERP system

Design office services and support functionsThe basic function of the design office is to manage design and CADCAMresources and to co-ordinate and facilitate CADCAM functioning for users Aneffective design office provides drawings and Bills of materials (BoM) with acompetent design staff supporting production Services such as technicalsupport trouble shooting consulting and training are critical design officefunctions In their study Magal and Carr (1988) found that ITIS staffrsquosunderstanding of the usersrsquo business and problems plus standardisedhardware and software to be important factors for the quality of ITIS supportservices This study proposes a positive relationship between the success ofCADCAM integration with an ERP system and the support services of thedesign office

H3 The design office supporting services is positively related to thesuccess of CADCAM integration with an ERP system

Management commitment and supportThe success or failure of any business effort is often determined by the amountof top management support (Rockart 1982 Ives and Olson 1984) Engineeringand production managers actively participate in the organisationrsquos planningprocess with senior managers and top managers help engineering andproduction management and line management to overcome the problem ofunderstanding top managementrsquos objectives thus facilitating goodcommunications among management levels Engineering and productionmanagers who participate in the planning process also tend to promotecommunication and a favourable relationship with top management Thussuch managers will more likely perceive the changing business objectives andthus help engineering and production management to achieve the new business

IJOPM2156

622

objectives Top management would thus acknowledge the importance of CADCAM integration and generate an appreciation of CADCAM managementissues Top management that is better able to understand the idea or theproblems of CADCAM management during the process of CADCAMintegration will have a better image of the CADCAM integration phenomenon

Ginzberg (1981) suggested that engineering and production managementpropose a strategic plan of CADCAM integration with an ERP system to topand line management including the reasons for the change its importance tothe organisation the impacts likely to result from it and the procedure forevaluating it Such criteria will be important in determining a userrsquos response toan ITIS change from the strategic plan studied and proposed by the ITISmanager Thus under these circumstances top and line management would bemore likely to commit to and support CADCAM objectives and offer co-operation for successful CADCAM integration with an ERP system Thisstudy examines this positive relationship

H4 Management commitment and support are positively related to thesuccess of CADCAM integration with ERP systems

Organisational effectivenessAny management task should be designed to achieve the organisationrsquosobjectives similarly CADCAM integration with ERP system should bedesigned to achieve an organisationrsquos objectives If CADCAM integrationimproves an organisationrsquos effectiveness then integration is more likely to beregarded as a success During such major organisational changes CADCAMsupport may ease the tedious maintenance of drawings BoM andspecifications thus improving the quality of managersrsquo decision making andeasing the management of change This study examines the relationshipbetween the success of CADCAM integration with an ERP system andorganisational effectiveness

H5 Organisational effectiveness is positively related to the success of CADCAM integration with an ERP system

Training of CADCAM staff on ERP systemsHylas et al (1989) indicated that not all systems applications are appropriatefor implementation Selection of the wrong business functional area or thewrong application or lack of adequate training can result in system failure Notonly lack of ITIS implementation experience can cause an ITIS manager tochoose an inappropriate application incompetent ITIS staff may havedifficulty recording or developing software for ITIS implementation while adeficiency of software packages for ITIS implementation can cause rigidityand difficulty for ITIS implementation (Hoffman 1992)

Lucas (1981) suggested that human factors affect the successfulimplementation of a new ITIS more obviously than do organisationalfactors In addition when applications are moving from the mainframe tothe desktop compatibility should be maintained To ensure software

Critical successfactors forintegration

623

compatibility the design office should review syntax ERP softwarefeatures and semantics and external behaviour and provide training to itsusers This study hypothesises a positive relationship between trainingCADCAM staff on ERP system and the success of CADCAM integrationwith an ERP system

H6 Training CADCAM staff on ERP systems is positively related to thesuccess of CADCAM integration with ERP systems

Security of CADCAM interfaceApplications should be acquired to solve business problems not make problemsData are interchanged between CADCAM system and other applications such asan ERP system through the interface Many older applications often employunique antiquated and somewhat incompatible software coupled withunsophisticated security protocols One of the design office functions is to useCADCAM systems to design products and create confidential design documentssuch as BoM Therefore the security of files and data bases used by the CADCAMsystem become a major concern Accordingly the interface and system integritywill be an integral component of ERP implementation The interface integritycomponent is needed to ensure an appropriate level of internal control into theCADCAM databases The systems integrity component is required to focus onestablishing an ERP-based robust environment in which the CADCAM-ERPinterface operates The development of the integrity environment needs to mitigatethe organisational risks and ensure that the controls implemented in the system donot encumber the business The interface between CADCAM and otherapplications needs to be designed specifically for cross-platform use This studyexamines the positive relationship between the security of the CADCAM interfaceand CADCAM integration success

H7 The security of the CADCAM interface is positively related to thesuccess of CADCAM integration with the ERP system

User friendliness of ERP systemsIf the ERP system chosen is a complicated system involving significantamounts of data manipulation this could be inadequate for successful CADCAM integration The reason for this inadequacy is that complicated ERPsystems may cause difficulties for users and hence communication with theCADCAM system The candidate application for ITIS implementation shouldbe simple familiar and based on an applicationrsquos basic merits not on its politics(Klein 1991) Accordingly organisations should carefully evaluate potentialERP systems for implementation This study examines the positiverelationship between the degree of ERP user friendliness and the success ofCADCAM integration with the ERP system

H8 The degree of ERP user friendliness is positively related to the successof CADCAM integration with the ERP system

IJOPM2156

624

Research subjectsIn this study we used CADCAM users (engineers engineering managers) frombusiness organisations as subjects The reason for selecting these subjects wasthat ITIS system success measures have in past studies been significantlyrelated to the perceived CSF of ITIS managers The studies from Miller andDoyle (1987) and from Raghunathan et al (1989) both cited some other casestudies andor empirical studies that uphold this relationship Miller and Doyleand Raghunathan et al also have examined and supported this concept in theirstudies Therefore if an ITIS or CADCAM manager administers the CADCAM function corresponding to hisher CSF heshe can improve CADCAMperformance and effectiveness Thus this research will attempt to extract CSFfor CADCAM in next generation manufacturing organisations from a CADCAM usersrsquo perspective

Survey instrumentThis research used a survey-based field study of ED and production managersto investigate and test the above eight hypotheses Surveys and questionnaireswere used to facilitate collection of the required data lower sampling costspeed-up the time frame and make the required sampling size According toChurchill (1979) the research instrument must meet the requirements ofaccuracy and validity Several procedures were adopted to ensure and verifythese criteria These procedures are as follows

(1) Non-response bias Non-response bias was not found in the sampletested The non-response bias was calculated and tested by comparingthe survey results obtained from the respondents to the entire samplebecause of its availability at the designing stage of the questionnaire

(2) Reliability The instrument was found to be reliable because theCronbachrsquos coefficient alpha (not) for the instrument was found to beabove 06 (Churchill 1979 Nunnally 1978) Accordingly the reliability(stability and consistency of the measuring instrument) is assured

(3) Content validity Content validity examined the sampling adequacy ofthe instrument by

a complete and extensive inspection of the literature for all possibleitems to be included in the measurement

asking a group of academics consultants and executivesmanagers tocriticise the description and clarity of the questionnaire

the questionnaire was tested with members of the focus group prior tothe final survey The modification of the questionnaire was then basedon these expertsrsquo opinions

(4) Construct validity Construct validity tests were performed using a factoranalysis to

Critical successfactors forintegration

625

assess construct validity ie to determine the set of CSF by choosing aparticular factor loading pattern thus achieving content validity andconstruct validity

eliminate the unnecessary items from the instrument by checking thefactor loading and utilising factor extraction and rotation optionsunnecessary variables can be eliminated

(5) Practicality This criterion refers to economic factors convenience ofexecution and interpretability of data and the results (Emory andCooper 1991) This study considered the trade-off among researchvariables budget ease of management and estimated which researchinstrument best accommodated the objectives of this research study

ConclusionsA major problem with the integration of CADCAM with ERP systems is thatlittle is known about factors that contribute to or detract from its successKalakota (1997) argues that not all systems are ideal candidates forimplementation Selection of the wrong system or the wrong businessfunctional area can result not only in systems failure but can also cause tensionbetween departments and usersrsquo departments (Cronin 1996 Mougayar 1997Kalakota 1997) Many analysts believe that it is difficult to estimate the hiddencost and the staffrsquos attitude toward implementation (Kalakota 1997)

There are two situations when the organisation becomes concerned with theintegration of CADCAM with ERP systems These are

(1) when an organisation acquires CADCAM after it has already afunctioning ERP system or

(2) when the organisation implements the ERP system after it has a fullyoperational CADCAM system

In general these two situations generate two different sets of success factorsfor the integration of CADCAM with the ERP system Thus identifying CSFfor integration could help minimise risks associated with the integration andhelp promote the success of both CADCAM and ERP systems Therefore theidentification of strategies for integration of CADCAM with the ERP systemwill be the main purpose of this study

We propose that there is a significant direct relationship between theintegration of CADCAM with the ERP system and a number of CSF Severalbenefits and contributions are expected from establishing these CSF such as

Providing a checklist for integration of CADCAM with the ERP systemThat is from the findings managers can attend to what seems to be themost important activities and select an approach more likely to achievesuccess in integration of CADCAM with the ERP system

Providing a guideline for CADCAM and ERP resource managementManagers may be able to use the CSF findings of this research for better

IJOPM2156

626

CADCAM and ERP resources management such as investment inhardware software and human resources

Identifying information needs The CSF may be useful for managers toidentify their information needs for CADCAM and ERP systems andhence understand more about the required support services that usersneed suggested by Rockart (1979 1982)

Evaluating the performance of the design office The CSF may be usefulas criteria for users executives and managers to evaluate theperformance of the design office

Furnishing a foundation for communication The CSF can provide afoundation for communication between the users of CADCAM and ERPsystems

Strengthening organisational goals CSF can help the wholeorganisation understand the most important criteria and enhance itscompetitive stance

Providing a base for the future research Further research can expand onthe findings from this study For example the eight hypothesesdeveloped here should be tested and the results should be madeavailable to researchers and practitioners in the field of manufacturingmanagement

Many organisations have integrated their CADCAM with ERP systemswithout theoretical or academic rationalisation Not all implementation effortshave been successful So this research aims to identify CSF for CADCAMintegration with ERP systems The research model is based on the classic CSFstudies by Rockart (1982) and Martin (1982a b) along with others identified inthe newer literature

As this research assesses the evolution of CADCAM integration with ERPthe results from this study will serve as a foundation for further researchAdditional research may provide a better understanding and thereby improveandor confirm the findings of this research

RecommendationsA possible future study could conduct a limited number of case studies tocompare clarify and evaluate the possible response bias from this study Thereis no guarantee that the selected CSF are complete and completeness is ajudgemental limitation of this research

The possible future study of failsuccess or riskreturn factors may be ofassistance to management of organisations with CADCAM and ERP systemsOther studies could compare the success of CADCAM and ERP integration bytype of organisations annual sales number of employees and years of usingthe two systems In other words different types of organisations different sizesof organisations and different experiences in CADCAM and ERP operationmay relevant to compare the success of CADCAM and ERP integration

Critical successfactors forintegration

627

References

Barki H and Hartwick J (1994) `Measuring user participation user involvement and userattitudersquorsquo MIS Quarterly Vol 13 No 1 pp 59-82

Baraudi JJ Olson MH and Ives B (1986) `An empirical study of the impact of userinvolvement on system usage and information satisfactionrsquorsquo Communications of the ACMVol 29 No 3 pp 232-8

Bergeron F Rivard S and Raymond L (1993) `Assessment of end-user computing froman organisational perspectiversquorsquo Information Resources Management Journal Winterpp 14-25

Boynton AC and Zmud RW (1984) `An assessment of critical success factorsrsquorsquo SloanManagement Review Vol 25 No 4 Summer pp 17-27

Churchill GA Jr (1979) `A paradigm for developing better measures of marketing constructsrsquorsquoJournal of Marketing Research February pp 67-73

Clark J and Soliman F (1996) `Appraising knowledge-based system investmentrsquorsquo Proceedingsof the 3d European Conference on the Evaluation of Information Technology BathUniversity Bath 29 November pp 143-254

Clark J and Soliman F (1999) `A graphical method for assessing knowledge-basedinvestmentsrsquorsquo Journal of Logistics and Information Management Vol 12 No 1

Cronin MJ (1996) Global Advantage on the Internet Van Nostrand Reinhold New York NY

Davis GB (1979) ` Comments on the critical success factors method for obtaining managementrequirements in article by John F Rockart `Chief executives define their own data needsrsquorsquorsquoHarvard Business Review Vol 57No 2 March-April pp 81-93

Davis GB (1980) ` Letter to the Editorrsquorsquo MIS Quarterly Vol 4 No 2 June pp 69-70

DeLone WH (1988) ` Determinants of success for computer usage in small businessrsquorsquo MISQuarterly Vol 12 No 1 March pp 51-61

Dickinson RA Ferguson CR and Sircar S (1984) ` Critical success factors and smallbusinessrsquorsquo American Journal of Small Business January-March Vol III pp 49-57

Dilenschneider RL and Hyde RC (1985) `Crisis communications planning for the unplannedrsquorsquoBusiness Horizons January-FebruaryVol 28 No 1 pp 35-8

Emory WC and Cooper DR (1991) Business Research Methods 4th ed Irwin Homewood IL

Ferguson CR and Dickinson R (1982) `Critical success factors for directors in the eightiesrsquorsquoBusiness Horizons May-June Vol 25 No 3 pp 14-18

Garcia MR (1997) ` Knowledge centralrsquorsquo InformationWeek Vol 649 pp 252-6

Ginzberg MJ (1981) ` Early diagnosis of MIS implementation failure promising results andunansweredquestionsrsquorsquo Management Science April Vol 27 No 4 pp 459-78

Gustin CM Stank TP and Daugherty PJ (1994) ` Computerization supporting integrationrsquorsquoInternational Journal of Physical Distribution and Logistic Management Vol 24 No 1pp 11-16

Hamilton S and Chervany NL (1981a) ` Evaluating information system effectiveness plusmn Part Icomparing evaluation approachesrsquorsquo MIS Quarterly September Vol 5 No 3 pp 55-69

Hamilton S and Chervany NL (1981b) ` Evaluating information system effectiveness plusmn Part IIcomparing evaluator viewpointsrsquorsquo MIS Quarterly DecemberVol 5 No 4 pp 79-86

Hoffman T (1992) ` Users share stories of downsizing pros consrsquorsquo Computerworld OctoberVol 5 p 7

Hylas RE Gordon B and Dinetz GR (1989) `The upside of downsized systemsrsquorsquo BestrsquosReview December pp 78-82

Critical successfactors forintegration

621

variables (user involvement and usersrsquo attitude) and the success of CADCAMintegration with ERP systems

H1 User appreciation (user involvement and usersrsquo attitude) is positivelyrelated to the success of CADCAM integration with ERP systems

Communication between design office and other usersIn the case of integration of CADCAM with an ERP system the design officecould improve communication and assist users in communication with thedesign office Thus users could be less anxious and their attitude towardimplementation more favourable (Rainer et al 1992) In the environment ofCADCAM communication with users is more crucial and complex than in theclassical environment of computing Therefore this study stresses theimportance of communication between users and the design office andhypothesises that there will be a positive relationship of CADCAM integrationwith ERP system success

H2 Communication between users and the design office is positivelyrelated to the success of CADCAM integration with an ERP system

Design office services and support functionsThe basic function of the design office is to manage design and CADCAMresources and to co-ordinate and facilitate CADCAM functioning for users Aneffective design office provides drawings and Bills of materials (BoM) with acompetent design staff supporting production Services such as technicalsupport trouble shooting consulting and training are critical design officefunctions In their study Magal and Carr (1988) found that ITIS staffrsquosunderstanding of the usersrsquo business and problems plus standardisedhardware and software to be important factors for the quality of ITIS supportservices This study proposes a positive relationship between the success ofCADCAM integration with an ERP system and the support services of thedesign office

H3 The design office supporting services is positively related to thesuccess of CADCAM integration with an ERP system

Management commitment and supportThe success or failure of any business effort is often determined by the amountof top management support (Rockart 1982 Ives and Olson 1984) Engineeringand production managers actively participate in the organisationrsquos planningprocess with senior managers and top managers help engineering andproduction management and line management to overcome the problem ofunderstanding top managementrsquos objectives thus facilitating goodcommunications among management levels Engineering and productionmanagers who participate in the planning process also tend to promotecommunication and a favourable relationship with top management Thussuch managers will more likely perceive the changing business objectives andthus help engineering and production management to achieve the new business

IJOPM2156

622

objectives Top management would thus acknowledge the importance of CADCAM integration and generate an appreciation of CADCAM managementissues Top management that is better able to understand the idea or theproblems of CADCAM management during the process of CADCAMintegration will have a better image of the CADCAM integration phenomenon

Ginzberg (1981) suggested that engineering and production managementpropose a strategic plan of CADCAM integration with an ERP system to topand line management including the reasons for the change its importance tothe organisation the impacts likely to result from it and the procedure forevaluating it Such criteria will be important in determining a userrsquos response toan ITIS change from the strategic plan studied and proposed by the ITISmanager Thus under these circumstances top and line management would bemore likely to commit to and support CADCAM objectives and offer co-operation for successful CADCAM integration with an ERP system Thisstudy examines this positive relationship

H4 Management commitment and support are positively related to thesuccess of CADCAM integration with ERP systems

Organisational effectivenessAny management task should be designed to achieve the organisationrsquosobjectives similarly CADCAM integration with ERP system should bedesigned to achieve an organisationrsquos objectives If CADCAM integrationimproves an organisationrsquos effectiveness then integration is more likely to beregarded as a success During such major organisational changes CADCAMsupport may ease the tedious maintenance of drawings BoM andspecifications thus improving the quality of managersrsquo decision making andeasing the management of change This study examines the relationshipbetween the success of CADCAM integration with an ERP system andorganisational effectiveness

H5 Organisational effectiveness is positively related to the success of CADCAM integration with an ERP system

Training of CADCAM staff on ERP systemsHylas et al (1989) indicated that not all systems applications are appropriatefor implementation Selection of the wrong business functional area or thewrong application or lack of adequate training can result in system failure Notonly lack of ITIS implementation experience can cause an ITIS manager tochoose an inappropriate application incompetent ITIS staff may havedifficulty recording or developing software for ITIS implementation while adeficiency of software packages for ITIS implementation can cause rigidityand difficulty for ITIS implementation (Hoffman 1992)

Lucas (1981) suggested that human factors affect the successfulimplementation of a new ITIS more obviously than do organisationalfactors In addition when applications are moving from the mainframe tothe desktop compatibility should be maintained To ensure software

Critical successfactors forintegration

623

compatibility the design office should review syntax ERP softwarefeatures and semantics and external behaviour and provide training to itsusers This study hypothesises a positive relationship between trainingCADCAM staff on ERP system and the success of CADCAM integrationwith an ERP system

H6 Training CADCAM staff on ERP systems is positively related to thesuccess of CADCAM integration with ERP systems

Security of CADCAM interfaceApplications should be acquired to solve business problems not make problemsData are interchanged between CADCAM system and other applications such asan ERP system through the interface Many older applications often employunique antiquated and somewhat incompatible software coupled withunsophisticated security protocols One of the design office functions is to useCADCAM systems to design products and create confidential design documentssuch as BoM Therefore the security of files and data bases used by the CADCAMsystem become a major concern Accordingly the interface and system integritywill be an integral component of ERP implementation The interface integritycomponent is needed to ensure an appropriate level of internal control into theCADCAM databases The systems integrity component is required to focus onestablishing an ERP-based robust environment in which the CADCAM-ERPinterface operates The development of the integrity environment needs to mitigatethe organisational risks and ensure that the controls implemented in the system donot encumber the business The interface between CADCAM and otherapplications needs to be designed specifically for cross-platform use This studyexamines the positive relationship between the security of the CADCAM interfaceand CADCAM integration success

H7 The security of the CADCAM interface is positively related to thesuccess of CADCAM integration with the ERP system

User friendliness of ERP systemsIf the ERP system chosen is a complicated system involving significantamounts of data manipulation this could be inadequate for successful CADCAM integration The reason for this inadequacy is that complicated ERPsystems may cause difficulties for users and hence communication with theCADCAM system The candidate application for ITIS implementation shouldbe simple familiar and based on an applicationrsquos basic merits not on its politics(Klein 1991) Accordingly organisations should carefully evaluate potentialERP systems for implementation This study examines the positiverelationship between the degree of ERP user friendliness and the success ofCADCAM integration with the ERP system

H8 The degree of ERP user friendliness is positively related to the successof CADCAM integration with the ERP system

IJOPM2156

624

Research subjectsIn this study we used CADCAM users (engineers engineering managers) frombusiness organisations as subjects The reason for selecting these subjects wasthat ITIS system success measures have in past studies been significantlyrelated to the perceived CSF of ITIS managers The studies from Miller andDoyle (1987) and from Raghunathan et al (1989) both cited some other casestudies andor empirical studies that uphold this relationship Miller and Doyleand Raghunathan et al also have examined and supported this concept in theirstudies Therefore if an ITIS or CADCAM manager administers the CADCAM function corresponding to hisher CSF heshe can improve CADCAMperformance and effectiveness Thus this research will attempt to extract CSFfor CADCAM in next generation manufacturing organisations from a CADCAM usersrsquo perspective

Survey instrumentThis research used a survey-based field study of ED and production managersto investigate and test the above eight hypotheses Surveys and questionnaireswere used to facilitate collection of the required data lower sampling costspeed-up the time frame and make the required sampling size According toChurchill (1979) the research instrument must meet the requirements ofaccuracy and validity Several procedures were adopted to ensure and verifythese criteria These procedures are as follows

(1) Non-response bias Non-response bias was not found in the sampletested The non-response bias was calculated and tested by comparingthe survey results obtained from the respondents to the entire samplebecause of its availability at the designing stage of the questionnaire

(2) Reliability The instrument was found to be reliable because theCronbachrsquos coefficient alpha (not) for the instrument was found to beabove 06 (Churchill 1979 Nunnally 1978) Accordingly the reliability(stability and consistency of the measuring instrument) is assured

(3) Content validity Content validity examined the sampling adequacy ofthe instrument by

a complete and extensive inspection of the literature for all possibleitems to be included in the measurement

asking a group of academics consultants and executivesmanagers tocriticise the description and clarity of the questionnaire

the questionnaire was tested with members of the focus group prior tothe final survey The modification of the questionnaire was then basedon these expertsrsquo opinions

(4) Construct validity Construct validity tests were performed using a factoranalysis to

Critical successfactors forintegration

625

assess construct validity ie to determine the set of CSF by choosing aparticular factor loading pattern thus achieving content validity andconstruct validity

eliminate the unnecessary items from the instrument by checking thefactor loading and utilising factor extraction and rotation optionsunnecessary variables can be eliminated

(5) Practicality This criterion refers to economic factors convenience ofexecution and interpretability of data and the results (Emory andCooper 1991) This study considered the trade-off among researchvariables budget ease of management and estimated which researchinstrument best accommodated the objectives of this research study

ConclusionsA major problem with the integration of CADCAM with ERP systems is thatlittle is known about factors that contribute to or detract from its successKalakota (1997) argues that not all systems are ideal candidates forimplementation Selection of the wrong system or the wrong businessfunctional area can result not only in systems failure but can also cause tensionbetween departments and usersrsquo departments (Cronin 1996 Mougayar 1997Kalakota 1997) Many analysts believe that it is difficult to estimate the hiddencost and the staffrsquos attitude toward implementation (Kalakota 1997)

There are two situations when the organisation becomes concerned with theintegration of CADCAM with ERP systems These are

(1) when an organisation acquires CADCAM after it has already afunctioning ERP system or

(2) when the organisation implements the ERP system after it has a fullyoperational CADCAM system

In general these two situations generate two different sets of success factorsfor the integration of CADCAM with the ERP system Thus identifying CSFfor integration could help minimise risks associated with the integration andhelp promote the success of both CADCAM and ERP systems Therefore theidentification of strategies for integration of CADCAM with the ERP systemwill be the main purpose of this study

We propose that there is a significant direct relationship between theintegration of CADCAM with the ERP system and a number of CSF Severalbenefits and contributions are expected from establishing these CSF such as

Providing a checklist for integration of CADCAM with the ERP systemThat is from the findings managers can attend to what seems to be themost important activities and select an approach more likely to achievesuccess in integration of CADCAM with the ERP system

Providing a guideline for CADCAM and ERP resource managementManagers may be able to use the CSF findings of this research for better

IJOPM2156

626

CADCAM and ERP resources management such as investment inhardware software and human resources

Identifying information needs The CSF may be useful for managers toidentify their information needs for CADCAM and ERP systems andhence understand more about the required support services that usersneed suggested by Rockart (1979 1982)

Evaluating the performance of the design office The CSF may be usefulas criteria for users executives and managers to evaluate theperformance of the design office

Furnishing a foundation for communication The CSF can provide afoundation for communication between the users of CADCAM and ERPsystems

Strengthening organisational goals CSF can help the wholeorganisation understand the most important criteria and enhance itscompetitive stance

Providing a base for the future research Further research can expand onthe findings from this study For example the eight hypothesesdeveloped here should be tested and the results should be madeavailable to researchers and practitioners in the field of manufacturingmanagement

Many organisations have integrated their CADCAM with ERP systemswithout theoretical or academic rationalisation Not all implementation effortshave been successful So this research aims to identify CSF for CADCAMintegration with ERP systems The research model is based on the classic CSFstudies by Rockart (1982) and Martin (1982a b) along with others identified inthe newer literature

As this research assesses the evolution of CADCAM integration with ERPthe results from this study will serve as a foundation for further researchAdditional research may provide a better understanding and thereby improveandor confirm the findings of this research

RecommendationsA possible future study could conduct a limited number of case studies tocompare clarify and evaluate the possible response bias from this study Thereis no guarantee that the selected CSF are complete and completeness is ajudgemental limitation of this research

The possible future study of failsuccess or riskreturn factors may be ofassistance to management of organisations with CADCAM and ERP systemsOther studies could compare the success of CADCAM and ERP integration bytype of organisations annual sales number of employees and years of usingthe two systems In other words different types of organisations different sizesof organisations and different experiences in CADCAM and ERP operationmay relevant to compare the success of CADCAM and ERP integration

Critical successfactors forintegration

627

References

Barki H and Hartwick J (1994) `Measuring user participation user involvement and userattitudersquorsquo MIS Quarterly Vol 13 No 1 pp 59-82

Baraudi JJ Olson MH and Ives B (1986) `An empirical study of the impact of userinvolvement on system usage and information satisfactionrsquorsquo Communications of the ACMVol 29 No 3 pp 232-8

Bergeron F Rivard S and Raymond L (1993) `Assessment of end-user computing froman organisational perspectiversquorsquo Information Resources Management Journal Winterpp 14-25

Boynton AC and Zmud RW (1984) `An assessment of critical success factorsrsquorsquo SloanManagement Review Vol 25 No 4 Summer pp 17-27

Churchill GA Jr (1979) `A paradigm for developing better measures of marketing constructsrsquorsquoJournal of Marketing Research February pp 67-73

Clark J and Soliman F (1996) `Appraising knowledge-based system investmentrsquorsquo Proceedingsof the 3d European Conference on the Evaluation of Information Technology BathUniversity Bath 29 November pp 143-254

Clark J and Soliman F (1999) `A graphical method for assessing knowledge-basedinvestmentsrsquorsquo Journal of Logistics and Information Management Vol 12 No 1

Cronin MJ (1996) Global Advantage on the Internet Van Nostrand Reinhold New York NY

Davis GB (1979) ` Comments on the critical success factors method for obtaining managementrequirements in article by John F Rockart `Chief executives define their own data needsrsquorsquorsquoHarvard Business Review Vol 57No 2 March-April pp 81-93

Davis GB (1980) ` Letter to the Editorrsquorsquo MIS Quarterly Vol 4 No 2 June pp 69-70

DeLone WH (1988) ` Determinants of success for computer usage in small businessrsquorsquo MISQuarterly Vol 12 No 1 March pp 51-61

Dickinson RA Ferguson CR and Sircar S (1984) ` Critical success factors and smallbusinessrsquorsquo American Journal of Small Business January-March Vol III pp 49-57

Dilenschneider RL and Hyde RC (1985) `Crisis communications planning for the unplannedrsquorsquoBusiness Horizons January-FebruaryVol 28 No 1 pp 35-8

Emory WC and Cooper DR (1991) Business Research Methods 4th ed Irwin Homewood IL

Ferguson CR and Dickinson R (1982) `Critical success factors for directors in the eightiesrsquorsquoBusiness Horizons May-June Vol 25 No 3 pp 14-18

Garcia MR (1997) ` Knowledge centralrsquorsquo InformationWeek Vol 649 pp 252-6

Ginzberg MJ (1981) ` Early diagnosis of MIS implementation failure promising results andunansweredquestionsrsquorsquo Management Science April Vol 27 No 4 pp 459-78

Gustin CM Stank TP and Daugherty PJ (1994) ` Computerization supporting integrationrsquorsquoInternational Journal of Physical Distribution and Logistic Management Vol 24 No 1pp 11-16

Hamilton S and Chervany NL (1981a) ` Evaluating information system effectiveness plusmn Part Icomparing evaluation approachesrsquorsquo MIS Quarterly September Vol 5 No 3 pp 55-69

Hamilton S and Chervany NL (1981b) ` Evaluating information system effectiveness plusmn Part IIcomparing evaluator viewpointsrsquorsquo MIS Quarterly DecemberVol 5 No 4 pp 79-86

Hoffman T (1992) ` Users share stories of downsizing pros consrsquorsquo Computerworld OctoberVol 5 p 7

Hylas RE Gordon B and Dinetz GR (1989) `The upside of downsized systemsrsquorsquo BestrsquosReview December pp 78-82

IJOPM2156

622

objectives Top management would thus acknowledge the importance of CADCAM integration and generate an appreciation of CADCAM managementissues Top management that is better able to understand the idea or theproblems of CADCAM management during the process of CADCAMintegration will have a better image of the CADCAM integration phenomenon

Ginzberg (1981) suggested that engineering and production managementpropose a strategic plan of CADCAM integration with an ERP system to topand line management including the reasons for the change its importance tothe organisation the impacts likely to result from it and the procedure forevaluating it Such criteria will be important in determining a userrsquos response toan ITIS change from the strategic plan studied and proposed by the ITISmanager Thus under these circumstances top and line management would bemore likely to commit to and support CADCAM objectives and offer co-operation for successful CADCAM integration with an ERP system Thisstudy examines this positive relationship

H4 Management commitment and support are positively related to thesuccess of CADCAM integration with ERP systems

Organisational effectivenessAny management task should be designed to achieve the organisationrsquosobjectives similarly CADCAM integration with ERP system should bedesigned to achieve an organisationrsquos objectives If CADCAM integrationimproves an organisationrsquos effectiveness then integration is more likely to beregarded as a success During such major organisational changes CADCAMsupport may ease the tedious maintenance of drawings BoM andspecifications thus improving the quality of managersrsquo decision making andeasing the management of change This study examines the relationshipbetween the success of CADCAM integration with an ERP system andorganisational effectiveness

H5 Organisational effectiveness is positively related to the success of CADCAM integration with an ERP system

Training of CADCAM staff on ERP systemsHylas et al (1989) indicated that not all systems applications are appropriatefor implementation Selection of the wrong business functional area or thewrong application or lack of adequate training can result in system failure Notonly lack of ITIS implementation experience can cause an ITIS manager tochoose an inappropriate application incompetent ITIS staff may havedifficulty recording or developing software for ITIS implementation while adeficiency of software packages for ITIS implementation can cause rigidityand difficulty for ITIS implementation (Hoffman 1992)

Lucas (1981) suggested that human factors affect the successfulimplementation of a new ITIS more obviously than do organisationalfactors In addition when applications are moving from the mainframe tothe desktop compatibility should be maintained To ensure software

Critical successfactors forintegration

623

compatibility the design office should review syntax ERP softwarefeatures and semantics and external behaviour and provide training to itsusers This study hypothesises a positive relationship between trainingCADCAM staff on ERP system and the success of CADCAM integrationwith an ERP system

H6 Training CADCAM staff on ERP systems is positively related to thesuccess of CADCAM integration with ERP systems

Security of CADCAM interfaceApplications should be acquired to solve business problems not make problemsData are interchanged between CADCAM system and other applications such asan ERP system through the interface Many older applications often employunique antiquated and somewhat incompatible software coupled withunsophisticated security protocols One of the design office functions is to useCADCAM systems to design products and create confidential design documentssuch as BoM Therefore the security of files and data bases used by the CADCAMsystem become a major concern Accordingly the interface and system integritywill be an integral component of ERP implementation The interface integritycomponent is needed to ensure an appropriate level of internal control into theCADCAM databases The systems integrity component is required to focus onestablishing an ERP-based robust environment in which the CADCAM-ERPinterface operates The development of the integrity environment needs to mitigatethe organisational risks and ensure that the controls implemented in the system donot encumber the business The interface between CADCAM and otherapplications needs to be designed specifically for cross-platform use This studyexamines the positive relationship between the security of the CADCAM interfaceand CADCAM integration success

H7 The security of the CADCAM interface is positively related to thesuccess of CADCAM integration with the ERP system

User friendliness of ERP systemsIf the ERP system chosen is a complicated system involving significantamounts of data manipulation this could be inadequate for successful CADCAM integration The reason for this inadequacy is that complicated ERPsystems may cause difficulties for users and hence communication with theCADCAM system The candidate application for ITIS implementation shouldbe simple familiar and based on an applicationrsquos basic merits not on its politics(Klein 1991) Accordingly organisations should carefully evaluate potentialERP systems for implementation This study examines the positiverelationship between the degree of ERP user friendliness and the success ofCADCAM integration with the ERP system

H8 The degree of ERP user friendliness is positively related to the successof CADCAM integration with the ERP system

IJOPM2156

624

Research subjectsIn this study we used CADCAM users (engineers engineering managers) frombusiness organisations as subjects The reason for selecting these subjects wasthat ITIS system success measures have in past studies been significantlyrelated to the perceived CSF of ITIS managers The studies from Miller andDoyle (1987) and from Raghunathan et al (1989) both cited some other casestudies andor empirical studies that uphold this relationship Miller and Doyleand Raghunathan et al also have examined and supported this concept in theirstudies Therefore if an ITIS or CADCAM manager administers the CADCAM function corresponding to hisher CSF heshe can improve CADCAMperformance and effectiveness Thus this research will attempt to extract CSFfor CADCAM in next generation manufacturing organisations from a CADCAM usersrsquo perspective

Survey instrumentThis research used a survey-based field study of ED and production managersto investigate and test the above eight hypotheses Surveys and questionnaireswere used to facilitate collection of the required data lower sampling costspeed-up the time frame and make the required sampling size According toChurchill (1979) the research instrument must meet the requirements ofaccuracy and validity Several procedures were adopted to ensure and verifythese criteria These procedures are as follows

(1) Non-response bias Non-response bias was not found in the sampletested The non-response bias was calculated and tested by comparingthe survey results obtained from the respondents to the entire samplebecause of its availability at the designing stage of the questionnaire

(2) Reliability The instrument was found to be reliable because theCronbachrsquos coefficient alpha (not) for the instrument was found to beabove 06 (Churchill 1979 Nunnally 1978) Accordingly the reliability(stability and consistency of the measuring instrument) is assured

(3) Content validity Content validity examined the sampling adequacy ofthe instrument by

a complete and extensive inspection of the literature for all possibleitems to be included in the measurement

asking a group of academics consultants and executivesmanagers tocriticise the description and clarity of the questionnaire

the questionnaire was tested with members of the focus group prior tothe final survey The modification of the questionnaire was then basedon these expertsrsquo opinions

(4) Construct validity Construct validity tests were performed using a factoranalysis to

Critical successfactors forintegration

625

assess construct validity ie to determine the set of CSF by choosing aparticular factor loading pattern thus achieving content validity andconstruct validity

eliminate the unnecessary items from the instrument by checking thefactor loading and utilising factor extraction and rotation optionsunnecessary variables can be eliminated

(5) Practicality This criterion refers to economic factors convenience ofexecution and interpretability of data and the results (Emory andCooper 1991) This study considered the trade-off among researchvariables budget ease of management and estimated which researchinstrument best accommodated the objectives of this research study

ConclusionsA major problem with the integration of CADCAM with ERP systems is thatlittle is known about factors that contribute to or detract from its successKalakota (1997) argues that not all systems are ideal candidates forimplementation Selection of the wrong system or the wrong businessfunctional area can result not only in systems failure but can also cause tensionbetween departments and usersrsquo departments (Cronin 1996 Mougayar 1997Kalakota 1997) Many analysts believe that it is difficult to estimate the hiddencost and the staffrsquos attitude toward implementation (Kalakota 1997)

There are two situations when the organisation becomes concerned with theintegration of CADCAM with ERP systems These are

(1) when an organisation acquires CADCAM after it has already afunctioning ERP system or

(2) when the organisation implements the ERP system after it has a fullyoperational CADCAM system

In general these two situations generate two different sets of success factorsfor the integration of CADCAM with the ERP system Thus identifying CSFfor integration could help minimise risks associated with the integration andhelp promote the success of both CADCAM and ERP systems Therefore theidentification of strategies for integration of CADCAM with the ERP systemwill be the main purpose of this study

We propose that there is a significant direct relationship between theintegration of CADCAM with the ERP system and a number of CSF Severalbenefits and contributions are expected from establishing these CSF such as

Providing a checklist for integration of CADCAM with the ERP systemThat is from the findings managers can attend to what seems to be themost important activities and select an approach more likely to achievesuccess in integration of CADCAM with the ERP system

Providing a guideline for CADCAM and ERP resource managementManagers may be able to use the CSF findings of this research for better

IJOPM2156

626

CADCAM and ERP resources management such as investment inhardware software and human resources

Identifying information needs The CSF may be useful for managers toidentify their information needs for CADCAM and ERP systems andhence understand more about the required support services that usersneed suggested by Rockart (1979 1982)

Evaluating the performance of the design office The CSF may be usefulas criteria for users executives and managers to evaluate theperformance of the design office

Furnishing a foundation for communication The CSF can provide afoundation for communication between the users of CADCAM and ERPsystems

Strengthening organisational goals CSF can help the wholeorganisation understand the most important criteria and enhance itscompetitive stance

Providing a base for the future research Further research can expand onthe findings from this study For example the eight hypothesesdeveloped here should be tested and the results should be madeavailable to researchers and practitioners in the field of manufacturingmanagement

Many organisations have integrated their CADCAM with ERP systemswithout theoretical or academic rationalisation Not all implementation effortshave been successful So this research aims to identify CSF for CADCAMintegration with ERP systems The research model is based on the classic CSFstudies by Rockart (1982) and Martin (1982a b) along with others identified inthe newer literature

As this research assesses the evolution of CADCAM integration with ERPthe results from this study will serve as a foundation for further researchAdditional research may provide a better understanding and thereby improveandor confirm the findings of this research

RecommendationsA possible future study could conduct a limited number of case studies tocompare clarify and evaluate the possible response bias from this study Thereis no guarantee that the selected CSF are complete and completeness is ajudgemental limitation of this research

The possible future study of failsuccess or riskreturn factors may be ofassistance to management of organisations with CADCAM and ERP systemsOther studies could compare the success of CADCAM and ERP integration bytype of organisations annual sales number of employees and years of usingthe two systems In other words different types of organisations different sizesof organisations and different experiences in CADCAM and ERP operationmay relevant to compare the success of CADCAM and ERP integration

Critical successfactors forintegration

627

References

Barki H and Hartwick J (1994) `Measuring user participation user involvement and userattitudersquorsquo MIS Quarterly Vol 13 No 1 pp 59-82

Baraudi JJ Olson MH and Ives B (1986) `An empirical study of the impact of userinvolvement on system usage and information satisfactionrsquorsquo Communications of the ACMVol 29 No 3 pp 232-8

Bergeron F Rivard S and Raymond L (1993) `Assessment of end-user computing froman organisational perspectiversquorsquo Information Resources Management Journal Winterpp 14-25

Boynton AC and Zmud RW (1984) `An assessment of critical success factorsrsquorsquo SloanManagement Review Vol 25 No 4 Summer pp 17-27

Churchill GA Jr (1979) `A paradigm for developing better measures of marketing constructsrsquorsquoJournal of Marketing Research February pp 67-73

Clark J and Soliman F (1996) `Appraising knowledge-based system investmentrsquorsquo Proceedingsof the 3d European Conference on the Evaluation of Information Technology BathUniversity Bath 29 November pp 143-254

Clark J and Soliman F (1999) `A graphical method for assessing knowledge-basedinvestmentsrsquorsquo Journal of Logistics and Information Management Vol 12 No 1

Cronin MJ (1996) Global Advantage on the Internet Van Nostrand Reinhold New York NY

Davis GB (1979) ` Comments on the critical success factors method for obtaining managementrequirements in article by John F Rockart `Chief executives define their own data needsrsquorsquorsquoHarvard Business Review Vol 57No 2 March-April pp 81-93

Davis GB (1980) ` Letter to the Editorrsquorsquo MIS Quarterly Vol 4 No 2 June pp 69-70

DeLone WH (1988) ` Determinants of success for computer usage in small businessrsquorsquo MISQuarterly Vol 12 No 1 March pp 51-61

Dickinson RA Ferguson CR and Sircar S (1984) ` Critical success factors and smallbusinessrsquorsquo American Journal of Small Business January-March Vol III pp 49-57

Dilenschneider RL and Hyde RC (1985) `Crisis communications planning for the unplannedrsquorsquoBusiness Horizons January-FebruaryVol 28 No 1 pp 35-8

Emory WC and Cooper DR (1991) Business Research Methods 4th ed Irwin Homewood IL

Ferguson CR and Dickinson R (1982) `Critical success factors for directors in the eightiesrsquorsquoBusiness Horizons May-June Vol 25 No 3 pp 14-18

Garcia MR (1997) ` Knowledge centralrsquorsquo InformationWeek Vol 649 pp 252-6

Ginzberg MJ (1981) ` Early diagnosis of MIS implementation failure promising results andunansweredquestionsrsquorsquo Management Science April Vol 27 No 4 pp 459-78

Gustin CM Stank TP and Daugherty PJ (1994) ` Computerization supporting integrationrsquorsquoInternational Journal of Physical Distribution and Logistic Management Vol 24 No 1pp 11-16

Hamilton S and Chervany NL (1981a) ` Evaluating information system effectiveness plusmn Part Icomparing evaluation approachesrsquorsquo MIS Quarterly September Vol 5 No 3 pp 55-69

Hamilton S and Chervany NL (1981b) ` Evaluating information system effectiveness plusmn Part IIcomparing evaluator viewpointsrsquorsquo MIS Quarterly DecemberVol 5 No 4 pp 79-86

Hoffman T (1992) ` Users share stories of downsizing pros consrsquorsquo Computerworld OctoberVol 5 p 7

Hylas RE Gordon B and Dinetz GR (1989) `The upside of downsized systemsrsquorsquo BestrsquosReview December pp 78-82

Critical successfactors forintegration

623

compatibility the design office should review syntax ERP softwarefeatures and semantics and external behaviour and provide training to itsusers This study hypothesises a positive relationship between trainingCADCAM staff on ERP system and the success of CADCAM integrationwith an ERP system

H6 Training CADCAM staff on ERP systems is positively related to thesuccess of CADCAM integration with ERP systems

Security of CADCAM interfaceApplications should be acquired to solve business problems not make problemsData are interchanged between CADCAM system and other applications such asan ERP system through the interface Many older applications often employunique antiquated and somewhat incompatible software coupled withunsophisticated security protocols One of the design office functions is to useCADCAM systems to design products and create confidential design documentssuch as BoM Therefore the security of files and data bases used by the CADCAMsystem become a major concern Accordingly the interface and system integritywill be an integral component of ERP implementation The interface integritycomponent is needed to ensure an appropriate level of internal control into theCADCAM databases The systems integrity component is required to focus onestablishing an ERP-based robust environment in which the CADCAM-ERPinterface operates The development of the integrity environment needs to mitigatethe organisational risks and ensure that the controls implemented in the system donot encumber the business The interface between CADCAM and otherapplications needs to be designed specifically for cross-platform use This studyexamines the positive relationship between the security of the CADCAM interfaceand CADCAM integration success

H7 The security of the CADCAM interface is positively related to thesuccess of CADCAM integration with the ERP system

User friendliness of ERP systemsIf the ERP system chosen is a complicated system involving significantamounts of data manipulation this could be inadequate for successful CADCAM integration The reason for this inadequacy is that complicated ERPsystems may cause difficulties for users and hence communication with theCADCAM system The candidate application for ITIS implementation shouldbe simple familiar and based on an applicationrsquos basic merits not on its politics(Klein 1991) Accordingly organisations should carefully evaluate potentialERP systems for implementation This study examines the positiverelationship between the degree of ERP user friendliness and the success ofCADCAM integration with the ERP system

H8 The degree of ERP user friendliness is positively related to the successof CADCAM integration with the ERP system

IJOPM2156

624

Research subjectsIn this study we used CADCAM users (engineers engineering managers) frombusiness organisations as subjects The reason for selecting these subjects wasthat ITIS system success measures have in past studies been significantlyrelated to the perceived CSF of ITIS managers The studies from Miller andDoyle (1987) and from Raghunathan et al (1989) both cited some other casestudies andor empirical studies that uphold this relationship Miller and Doyleand Raghunathan et al also have examined and supported this concept in theirstudies Therefore if an ITIS or CADCAM manager administers the CADCAM function corresponding to hisher CSF heshe can improve CADCAMperformance and effectiveness Thus this research will attempt to extract CSFfor CADCAM in next generation manufacturing organisations from a CADCAM usersrsquo perspective

Survey instrumentThis research used a survey-based field study of ED and production managersto investigate and test the above eight hypotheses Surveys and questionnaireswere used to facilitate collection of the required data lower sampling costspeed-up the time frame and make the required sampling size According toChurchill (1979) the research instrument must meet the requirements ofaccuracy and validity Several procedures were adopted to ensure and verifythese criteria These procedures are as follows

(1) Non-response bias Non-response bias was not found in the sampletested The non-response bias was calculated and tested by comparingthe survey results obtained from the respondents to the entire samplebecause of its availability at the designing stage of the questionnaire

(2) Reliability The instrument was found to be reliable because theCronbachrsquos coefficient alpha (not) for the instrument was found to beabove 06 (Churchill 1979 Nunnally 1978) Accordingly the reliability(stability and consistency of the measuring instrument) is assured

(3) Content validity Content validity examined the sampling adequacy ofthe instrument by

a complete and extensive inspection of the literature for all possibleitems to be included in the measurement

asking a group of academics consultants and executivesmanagers tocriticise the description and clarity of the questionnaire

the questionnaire was tested with members of the focus group prior tothe final survey The modification of the questionnaire was then basedon these expertsrsquo opinions

(4) Construct validity Construct validity tests were performed using a factoranalysis to

Critical successfactors forintegration

625

assess construct validity ie to determine the set of CSF by choosing aparticular factor loading pattern thus achieving content validity andconstruct validity

eliminate the unnecessary items from the instrument by checking thefactor loading and utilising factor extraction and rotation optionsunnecessary variables can be eliminated

(5) Practicality This criterion refers to economic factors convenience ofexecution and interpretability of data and the results (Emory andCooper 1991) This study considered the trade-off among researchvariables budget ease of management and estimated which researchinstrument best accommodated the objectives of this research study

ConclusionsA major problem with the integration of CADCAM with ERP systems is thatlittle is known about factors that contribute to or detract from its successKalakota (1997) argues that not all systems are ideal candidates forimplementation Selection of the wrong system or the wrong businessfunctional area can result not only in systems failure but can also cause tensionbetween departments and usersrsquo departments (Cronin 1996 Mougayar 1997Kalakota 1997) Many analysts believe that it is difficult to estimate the hiddencost and the staffrsquos attitude toward implementation (Kalakota 1997)

There are two situations when the organisation becomes concerned with theintegration of CADCAM with ERP systems These are

(1) when an organisation acquires CADCAM after it has already afunctioning ERP system or

(2) when the organisation implements the ERP system after it has a fullyoperational CADCAM system

In general these two situations generate two different sets of success factorsfor the integration of CADCAM with the ERP system Thus identifying CSFfor integration could help minimise risks associated with the integration andhelp promote the success of both CADCAM and ERP systems Therefore theidentification of strategies for integration of CADCAM with the ERP systemwill be the main purpose of this study

We propose that there is a significant direct relationship between theintegration of CADCAM with the ERP system and a number of CSF Severalbenefits and contributions are expected from establishing these CSF such as

Providing a checklist for integration of CADCAM with the ERP systemThat is from the findings managers can attend to what seems to be themost important activities and select an approach more likely to achievesuccess in integration of CADCAM with the ERP system

Providing a guideline for CADCAM and ERP resource managementManagers may be able to use the CSF findings of this research for better

IJOPM2156

626

CADCAM and ERP resources management such as investment inhardware software and human resources

Identifying information needs The CSF may be useful for managers toidentify their information needs for CADCAM and ERP systems andhence understand more about the required support services that usersneed suggested by Rockart (1979 1982)

Evaluating the performance of the design office The CSF may be usefulas criteria for users executives and managers to evaluate theperformance of the design office

Furnishing a foundation for communication The CSF can provide afoundation for communication between the users of CADCAM and ERPsystems

Strengthening organisational goals CSF can help the wholeorganisation understand the most important criteria and enhance itscompetitive stance

Providing a base for the future research Further research can expand onthe findings from this study For example the eight hypothesesdeveloped here should be tested and the results should be madeavailable to researchers and practitioners in the field of manufacturingmanagement

Many organisations have integrated their CADCAM with ERP systemswithout theoretical or academic rationalisation Not all implementation effortshave been successful So this research aims to identify CSF for CADCAMintegration with ERP systems The research model is based on the classic CSFstudies by Rockart (1982) and Martin (1982a b) along with others identified inthe newer literature

As this research assesses the evolution of CADCAM integration with ERPthe results from this study will serve as a foundation for further researchAdditional research may provide a better understanding and thereby improveandor confirm the findings of this research

RecommendationsA possible future study could conduct a limited number of case studies tocompare clarify and evaluate the possible response bias from this study Thereis no guarantee that the selected CSF are complete and completeness is ajudgemental limitation of this research

The possible future study of failsuccess or riskreturn factors may be ofassistance to management of organisations with CADCAM and ERP systemsOther studies could compare the success of CADCAM and ERP integration bytype of organisations annual sales number of employees and years of usingthe two systems In other words different types of organisations different sizesof organisations and different experiences in CADCAM and ERP operationmay relevant to compare the success of CADCAM and ERP integration

Critical successfactors forintegration

627

References

Barki H and Hartwick J (1994) `Measuring user participation user involvement and userattitudersquorsquo MIS Quarterly Vol 13 No 1 pp 59-82

Baraudi JJ Olson MH and Ives B (1986) `An empirical study of the impact of userinvolvement on system usage and information satisfactionrsquorsquo Communications of the ACMVol 29 No 3 pp 232-8

Bergeron F Rivard S and Raymond L (1993) `Assessment of end-user computing froman organisational perspectiversquorsquo Information Resources Management Journal Winterpp 14-25

Boynton AC and Zmud RW (1984) `An assessment of critical success factorsrsquorsquo SloanManagement Review Vol 25 No 4 Summer pp 17-27

Churchill GA Jr (1979) `A paradigm for developing better measures of marketing constructsrsquorsquoJournal of Marketing Research February pp 67-73

Clark J and Soliman F (1996) `Appraising knowledge-based system investmentrsquorsquo Proceedingsof the 3d European Conference on the Evaluation of Information Technology BathUniversity Bath 29 November pp 143-254

Clark J and Soliman F (1999) `A graphical method for assessing knowledge-basedinvestmentsrsquorsquo Journal of Logistics and Information Management Vol 12 No 1

Cronin MJ (1996) Global Advantage on the Internet Van Nostrand Reinhold New York NY

Davis GB (1979) ` Comments on the critical success factors method for obtaining managementrequirements in article by John F Rockart `Chief executives define their own data needsrsquorsquorsquoHarvard Business Review Vol 57No 2 March-April pp 81-93

Davis GB (1980) ` Letter to the Editorrsquorsquo MIS Quarterly Vol 4 No 2 June pp 69-70

DeLone WH (1988) ` Determinants of success for computer usage in small businessrsquorsquo MISQuarterly Vol 12 No 1 March pp 51-61

Dickinson RA Ferguson CR and Sircar S (1984) ` Critical success factors and smallbusinessrsquorsquo American Journal of Small Business January-March Vol III pp 49-57

Dilenschneider RL and Hyde RC (1985) `Crisis communications planning for the unplannedrsquorsquoBusiness Horizons January-FebruaryVol 28 No 1 pp 35-8

Emory WC and Cooper DR (1991) Business Research Methods 4th ed Irwin Homewood IL

Ferguson CR and Dickinson R (1982) `Critical success factors for directors in the eightiesrsquorsquoBusiness Horizons May-June Vol 25 No 3 pp 14-18

Garcia MR (1997) ` Knowledge centralrsquorsquo InformationWeek Vol 649 pp 252-6

Ginzberg MJ (1981) ` Early diagnosis of MIS implementation failure promising results andunansweredquestionsrsquorsquo Management Science April Vol 27 No 4 pp 459-78

Gustin CM Stank TP and Daugherty PJ (1994) ` Computerization supporting integrationrsquorsquoInternational Journal of Physical Distribution and Logistic Management Vol 24 No 1pp 11-16

Hamilton S and Chervany NL (1981a) ` Evaluating information system effectiveness plusmn Part Icomparing evaluation approachesrsquorsquo MIS Quarterly September Vol 5 No 3 pp 55-69

Hamilton S and Chervany NL (1981b) ` Evaluating information system effectiveness plusmn Part IIcomparing evaluator viewpointsrsquorsquo MIS Quarterly DecemberVol 5 No 4 pp 79-86

Hoffman T (1992) ` Users share stories of downsizing pros consrsquorsquo Computerworld OctoberVol 5 p 7

Hylas RE Gordon B and Dinetz GR (1989) `The upside of downsized systemsrsquorsquo BestrsquosReview December pp 78-82

IJOPM2156

624

Research subjectsIn this study we used CADCAM users (engineers engineering managers) frombusiness organisations as subjects The reason for selecting these subjects wasthat ITIS system success measures have in past studies been significantlyrelated to the perceived CSF of ITIS managers The studies from Miller andDoyle (1987) and from Raghunathan et al (1989) both cited some other casestudies andor empirical studies that uphold this relationship Miller and Doyleand Raghunathan et al also have examined and supported this concept in theirstudies Therefore if an ITIS or CADCAM manager administers the CADCAM function corresponding to hisher CSF heshe can improve CADCAMperformance and effectiveness Thus this research will attempt to extract CSFfor CADCAM in next generation manufacturing organisations from a CADCAM usersrsquo perspective

Survey instrumentThis research used a survey-based field study of ED and production managersto investigate and test the above eight hypotheses Surveys and questionnaireswere used to facilitate collection of the required data lower sampling costspeed-up the time frame and make the required sampling size According toChurchill (1979) the research instrument must meet the requirements ofaccuracy and validity Several procedures were adopted to ensure and verifythese criteria These procedures are as follows

(1) Non-response bias Non-response bias was not found in the sampletested The non-response bias was calculated and tested by comparingthe survey results obtained from the respondents to the entire samplebecause of its availability at the designing stage of the questionnaire

(2) Reliability The instrument was found to be reliable because theCronbachrsquos coefficient alpha (not) for the instrument was found to beabove 06 (Churchill 1979 Nunnally 1978) Accordingly the reliability(stability and consistency of the measuring instrument) is assured

(3) Content validity Content validity examined the sampling adequacy ofthe instrument by

a complete and extensive inspection of the literature for all possibleitems to be included in the measurement

asking a group of academics consultants and executivesmanagers tocriticise the description and clarity of the questionnaire

the questionnaire was tested with members of the focus group prior tothe final survey The modification of the questionnaire was then basedon these expertsrsquo opinions

(4) Construct validity Construct validity tests were performed using a factoranalysis to

Critical successfactors forintegration

625

assess construct validity ie to determine the set of CSF by choosing aparticular factor loading pattern thus achieving content validity andconstruct validity

eliminate the unnecessary items from the instrument by checking thefactor loading and utilising factor extraction and rotation optionsunnecessary variables can be eliminated

(5) Practicality This criterion refers to economic factors convenience ofexecution and interpretability of data and the results (Emory andCooper 1991) This study considered the trade-off among researchvariables budget ease of management and estimated which researchinstrument best accommodated the objectives of this research study

ConclusionsA major problem with the integration of CADCAM with ERP systems is thatlittle is known about factors that contribute to or detract from its successKalakota (1997) argues that not all systems are ideal candidates forimplementation Selection of the wrong system or the wrong businessfunctional area can result not only in systems failure but can also cause tensionbetween departments and usersrsquo departments (Cronin 1996 Mougayar 1997Kalakota 1997) Many analysts believe that it is difficult to estimate the hiddencost and the staffrsquos attitude toward implementation (Kalakota 1997)

There are two situations when the organisation becomes concerned with theintegration of CADCAM with ERP systems These are

(1) when an organisation acquires CADCAM after it has already afunctioning ERP system or

(2) when the organisation implements the ERP system after it has a fullyoperational CADCAM system

In general these two situations generate two different sets of success factorsfor the integration of CADCAM with the ERP system Thus identifying CSFfor integration could help minimise risks associated with the integration andhelp promote the success of both CADCAM and ERP systems Therefore theidentification of strategies for integration of CADCAM with the ERP systemwill be the main purpose of this study

We propose that there is a significant direct relationship between theintegration of CADCAM with the ERP system and a number of CSF Severalbenefits and contributions are expected from establishing these CSF such as

Providing a checklist for integration of CADCAM with the ERP systemThat is from the findings managers can attend to what seems to be themost important activities and select an approach more likely to achievesuccess in integration of CADCAM with the ERP system

Providing a guideline for CADCAM and ERP resource managementManagers may be able to use the CSF findings of this research for better

IJOPM2156

626

CADCAM and ERP resources management such as investment inhardware software and human resources

Identifying information needs The CSF may be useful for managers toidentify their information needs for CADCAM and ERP systems andhence understand more about the required support services that usersneed suggested by Rockart (1979 1982)

Evaluating the performance of the design office The CSF may be usefulas criteria for users executives and managers to evaluate theperformance of the design office

Furnishing a foundation for communication The CSF can provide afoundation for communication between the users of CADCAM and ERPsystems

Strengthening organisational goals CSF can help the wholeorganisation understand the most important criteria and enhance itscompetitive stance

Providing a base for the future research Further research can expand onthe findings from this study For example the eight hypothesesdeveloped here should be tested and the results should be madeavailable to researchers and practitioners in the field of manufacturingmanagement

Many organisations have integrated their CADCAM with ERP systemswithout theoretical or academic rationalisation Not all implementation effortshave been successful So this research aims to identify CSF for CADCAMintegration with ERP systems The research model is based on the classic CSFstudies by Rockart (1982) and Martin (1982a b) along with others identified inthe newer literature

As this research assesses the evolution of CADCAM integration with ERPthe results from this study will serve as a foundation for further researchAdditional research may provide a better understanding and thereby improveandor confirm the findings of this research

RecommendationsA possible future study could conduct a limited number of case studies tocompare clarify and evaluate the possible response bias from this study Thereis no guarantee that the selected CSF are complete and completeness is ajudgemental limitation of this research

The possible future study of failsuccess or riskreturn factors may be ofassistance to management of organisations with CADCAM and ERP systemsOther studies could compare the success of CADCAM and ERP integration bytype of organisations annual sales number of employees and years of usingthe two systems In other words different types of organisations different sizesof organisations and different experiences in CADCAM and ERP operationmay relevant to compare the success of CADCAM and ERP integration

Critical successfactors forintegration

627

References

Barki H and Hartwick J (1994) `Measuring user participation user involvement and userattitudersquorsquo MIS Quarterly Vol 13 No 1 pp 59-82

Baraudi JJ Olson MH and Ives B (1986) `An empirical study of the impact of userinvolvement on system usage and information satisfactionrsquorsquo Communications of the ACMVol 29 No 3 pp 232-8

Bergeron F Rivard S and Raymond L (1993) `Assessment of end-user computing froman organisational perspectiversquorsquo Information Resources Management Journal Winterpp 14-25

Boynton AC and Zmud RW (1984) `An assessment of critical success factorsrsquorsquo SloanManagement Review Vol 25 No 4 Summer pp 17-27

Churchill GA Jr (1979) `A paradigm for developing better measures of marketing constructsrsquorsquoJournal of Marketing Research February pp 67-73

Clark J and Soliman F (1996) `Appraising knowledge-based system investmentrsquorsquo Proceedingsof the 3d European Conference on the Evaluation of Information Technology BathUniversity Bath 29 November pp 143-254

Clark J and Soliman F (1999) `A graphical method for assessing knowledge-basedinvestmentsrsquorsquo Journal of Logistics and Information Management Vol 12 No 1

Cronin MJ (1996) Global Advantage on the Internet Van Nostrand Reinhold New York NY

Davis GB (1979) ` Comments on the critical success factors method for obtaining managementrequirements in article by John F Rockart `Chief executives define their own data needsrsquorsquorsquoHarvard Business Review Vol 57No 2 March-April pp 81-93

Davis GB (1980) ` Letter to the Editorrsquorsquo MIS Quarterly Vol 4 No 2 June pp 69-70

DeLone WH (1988) ` Determinants of success for computer usage in small businessrsquorsquo MISQuarterly Vol 12 No 1 March pp 51-61

Dickinson RA Ferguson CR and Sircar S (1984) ` Critical success factors and smallbusinessrsquorsquo American Journal of Small Business January-March Vol III pp 49-57

Dilenschneider RL and Hyde RC (1985) `Crisis communications planning for the unplannedrsquorsquoBusiness Horizons January-FebruaryVol 28 No 1 pp 35-8

Emory WC and Cooper DR (1991) Business Research Methods 4th ed Irwin Homewood IL

Ferguson CR and Dickinson R (1982) `Critical success factors for directors in the eightiesrsquorsquoBusiness Horizons May-June Vol 25 No 3 pp 14-18

Garcia MR (1997) ` Knowledge centralrsquorsquo InformationWeek Vol 649 pp 252-6

Ginzberg MJ (1981) ` Early diagnosis of MIS implementation failure promising results andunansweredquestionsrsquorsquo Management Science April Vol 27 No 4 pp 459-78

Gustin CM Stank TP and Daugherty PJ (1994) ` Computerization supporting integrationrsquorsquoInternational Journal of Physical Distribution and Logistic Management Vol 24 No 1pp 11-16

Hamilton S and Chervany NL (1981a) ` Evaluating information system effectiveness plusmn Part Icomparing evaluation approachesrsquorsquo MIS Quarterly September Vol 5 No 3 pp 55-69

Hamilton S and Chervany NL (1981b) ` Evaluating information system effectiveness plusmn Part IIcomparing evaluator viewpointsrsquorsquo MIS Quarterly DecemberVol 5 No 4 pp 79-86

Hoffman T (1992) ` Users share stories of downsizing pros consrsquorsquo Computerworld OctoberVol 5 p 7

Hylas RE Gordon B and Dinetz GR (1989) `The upside of downsized systemsrsquorsquo BestrsquosReview December pp 78-82

Critical successfactors forintegration

625

assess construct validity ie to determine the set of CSF by choosing aparticular factor loading pattern thus achieving content validity andconstruct validity

eliminate the unnecessary items from the instrument by checking thefactor loading and utilising factor extraction and rotation optionsunnecessary variables can be eliminated

(5) Practicality This criterion refers to economic factors convenience ofexecution and interpretability of data and the results (Emory andCooper 1991) This study considered the trade-off among researchvariables budget ease of management and estimated which researchinstrument best accommodated the objectives of this research study

ConclusionsA major problem with the integration of CADCAM with ERP systems is thatlittle is known about factors that contribute to or detract from its successKalakota (1997) argues that not all systems are ideal candidates forimplementation Selection of the wrong system or the wrong businessfunctional area can result not only in systems failure but can also cause tensionbetween departments and usersrsquo departments (Cronin 1996 Mougayar 1997Kalakota 1997) Many analysts believe that it is difficult to estimate the hiddencost and the staffrsquos attitude toward implementation (Kalakota 1997)

There are two situations when the organisation becomes concerned with theintegration of CADCAM with ERP systems These are

(1) when an organisation acquires CADCAM after it has already afunctioning ERP system or

(2) when the organisation implements the ERP system after it has a fullyoperational CADCAM system

In general these two situations generate two different sets of success factorsfor the integration of CADCAM with the ERP system Thus identifying CSFfor integration could help minimise risks associated with the integration andhelp promote the success of both CADCAM and ERP systems Therefore theidentification of strategies for integration of CADCAM with the ERP systemwill be the main purpose of this study

We propose that there is a significant direct relationship between theintegration of CADCAM with the ERP system and a number of CSF Severalbenefits and contributions are expected from establishing these CSF such as

Providing a checklist for integration of CADCAM with the ERP systemThat is from the findings managers can attend to what seems to be themost important activities and select an approach more likely to achievesuccess in integration of CADCAM with the ERP system

Providing a guideline for CADCAM and ERP resource managementManagers may be able to use the CSF findings of this research for better

IJOPM2156

626

CADCAM and ERP resources management such as investment inhardware software and human resources

Identifying information needs The CSF may be useful for managers toidentify their information needs for CADCAM and ERP systems andhence understand more about the required support services that usersneed suggested by Rockart (1979 1982)

Evaluating the performance of the design office The CSF may be usefulas criteria for users executives and managers to evaluate theperformance of the design office

Furnishing a foundation for communication The CSF can provide afoundation for communication between the users of CADCAM and ERPsystems

Strengthening organisational goals CSF can help the wholeorganisation understand the most important criteria and enhance itscompetitive stance

Providing a base for the future research Further research can expand onthe findings from this study For example the eight hypothesesdeveloped here should be tested and the results should be madeavailable to researchers and practitioners in the field of manufacturingmanagement

Many organisations have integrated their CADCAM with ERP systemswithout theoretical or academic rationalisation Not all implementation effortshave been successful So this research aims to identify CSF for CADCAMintegration with ERP systems The research model is based on the classic CSFstudies by Rockart (1982) and Martin (1982a b) along with others identified inthe newer literature

As this research assesses the evolution of CADCAM integration with ERPthe results from this study will serve as a foundation for further researchAdditional research may provide a better understanding and thereby improveandor confirm the findings of this research

RecommendationsA possible future study could conduct a limited number of case studies tocompare clarify and evaluate the possible response bias from this study Thereis no guarantee that the selected CSF are complete and completeness is ajudgemental limitation of this research

The possible future study of failsuccess or riskreturn factors may be ofassistance to management of organisations with CADCAM and ERP systemsOther studies could compare the success of CADCAM and ERP integration bytype of organisations annual sales number of employees and years of usingthe two systems In other words different types of organisations different sizesof organisations and different experiences in CADCAM and ERP operationmay relevant to compare the success of CADCAM and ERP integration

Critical successfactors forintegration

627

References

Barki H and Hartwick J (1994) `Measuring user participation user involvement and userattitudersquorsquo MIS Quarterly Vol 13 No 1 pp 59-82

Baraudi JJ Olson MH and Ives B (1986) `An empirical study of the impact of userinvolvement on system usage and information satisfactionrsquorsquo Communications of the ACMVol 29 No 3 pp 232-8

Bergeron F Rivard S and Raymond L (1993) `Assessment of end-user computing froman organisational perspectiversquorsquo Information Resources Management Journal Winterpp 14-25

Boynton AC and Zmud RW (1984) `An assessment of critical success factorsrsquorsquo SloanManagement Review Vol 25 No 4 Summer pp 17-27

Churchill GA Jr (1979) `A paradigm for developing better measures of marketing constructsrsquorsquoJournal of Marketing Research February pp 67-73

Clark J and Soliman F (1996) `Appraising knowledge-based system investmentrsquorsquo Proceedingsof the 3d European Conference on the Evaluation of Information Technology BathUniversity Bath 29 November pp 143-254

Clark J and Soliman F (1999) `A graphical method for assessing knowledge-basedinvestmentsrsquorsquo Journal of Logistics and Information Management Vol 12 No 1

Cronin MJ (1996) Global Advantage on the Internet Van Nostrand Reinhold New York NY

Davis GB (1979) ` Comments on the critical success factors method for obtaining managementrequirements in article by John F Rockart `Chief executives define their own data needsrsquorsquorsquoHarvard Business Review Vol 57No 2 March-April pp 81-93

Davis GB (1980) ` Letter to the Editorrsquorsquo MIS Quarterly Vol 4 No 2 June pp 69-70

DeLone WH (1988) ` Determinants of success for computer usage in small businessrsquorsquo MISQuarterly Vol 12 No 1 March pp 51-61

Dickinson RA Ferguson CR and Sircar S (1984) ` Critical success factors and smallbusinessrsquorsquo American Journal of Small Business January-March Vol III pp 49-57

Dilenschneider RL and Hyde RC (1985) `Crisis communications planning for the unplannedrsquorsquoBusiness Horizons January-FebruaryVol 28 No 1 pp 35-8

Emory WC and Cooper DR (1991) Business Research Methods 4th ed Irwin Homewood IL

Ferguson CR and Dickinson R (1982) `Critical success factors for directors in the eightiesrsquorsquoBusiness Horizons May-June Vol 25 No 3 pp 14-18

Garcia MR (1997) ` Knowledge centralrsquorsquo InformationWeek Vol 649 pp 252-6

Ginzberg MJ (1981) ` Early diagnosis of MIS implementation failure promising results andunansweredquestionsrsquorsquo Management Science April Vol 27 No 4 pp 459-78

Gustin CM Stank TP and Daugherty PJ (1994) ` Computerization supporting integrationrsquorsquoInternational Journal of Physical Distribution and Logistic Management Vol 24 No 1pp 11-16

Hamilton S and Chervany NL (1981a) ` Evaluating information system effectiveness plusmn Part Icomparing evaluation approachesrsquorsquo MIS Quarterly September Vol 5 No 3 pp 55-69

Hamilton S and Chervany NL (1981b) ` Evaluating information system effectiveness plusmn Part IIcomparing evaluator viewpointsrsquorsquo MIS Quarterly DecemberVol 5 No 4 pp 79-86

Hoffman T (1992) ` Users share stories of downsizing pros consrsquorsquo Computerworld OctoberVol 5 p 7

Hylas RE Gordon B and Dinetz GR (1989) `The upside of downsized systemsrsquorsquo BestrsquosReview December pp 78-82

IJOPM2156

626

CADCAM and ERP resources management such as investment inhardware software and human resources

Identifying information needs The CSF may be useful for managers toidentify their information needs for CADCAM and ERP systems andhence understand more about the required support services that usersneed suggested by Rockart (1979 1982)

Evaluating the performance of the design office The CSF may be usefulas criteria for users executives and managers to evaluate theperformance of the design office

Furnishing a foundation for communication The CSF can provide afoundation for communication between the users of CADCAM and ERPsystems

Strengthening organisational goals CSF can help the wholeorganisation understand the most important criteria and enhance itscompetitive stance

Providing a base for the future research Further research can expand onthe findings from this study For example the eight hypothesesdeveloped here should be tested and the results should be madeavailable to researchers and practitioners in the field of manufacturingmanagement

Many organisations have integrated their CADCAM with ERP systemswithout theoretical or academic rationalisation Not all implementation effortshave been successful So this research aims to identify CSF for CADCAMintegration with ERP systems The research model is based on the classic CSFstudies by Rockart (1982) and Martin (1982a b) along with others identified inthe newer literature

As this research assesses the evolution of CADCAM integration with ERPthe results from this study will serve as a foundation for further researchAdditional research may provide a better understanding and thereby improveandor confirm the findings of this research

RecommendationsA possible future study could conduct a limited number of case studies tocompare clarify and evaluate the possible response bias from this study Thereis no guarantee that the selected CSF are complete and completeness is ajudgemental limitation of this research

The possible future study of failsuccess or riskreturn factors may be ofassistance to management of organisations with CADCAM and ERP systemsOther studies could compare the success of CADCAM and ERP integration bytype of organisations annual sales number of employees and years of usingthe two systems In other words different types of organisations different sizesof organisations and different experiences in CADCAM and ERP operationmay relevant to compare the success of CADCAM and ERP integration

Critical successfactors forintegration

627

References

Barki H and Hartwick J (1994) `Measuring user participation user involvement and userattitudersquorsquo MIS Quarterly Vol 13 No 1 pp 59-82

Baraudi JJ Olson MH and Ives B (1986) `An empirical study of the impact of userinvolvement on system usage and information satisfactionrsquorsquo Communications of the ACMVol 29 No 3 pp 232-8

Bergeron F Rivard S and Raymond L (1993) `Assessment of end-user computing froman organisational perspectiversquorsquo Information Resources Management Journal Winterpp 14-25

Boynton AC and Zmud RW (1984) `An assessment of critical success factorsrsquorsquo SloanManagement Review Vol 25 No 4 Summer pp 17-27

Churchill GA Jr (1979) `A paradigm for developing better measures of marketing constructsrsquorsquoJournal of Marketing Research February pp 67-73

Clark J and Soliman F (1996) `Appraising knowledge-based system investmentrsquorsquo Proceedingsof the 3d European Conference on the Evaluation of Information Technology BathUniversity Bath 29 November pp 143-254

Clark J and Soliman F (1999) `A graphical method for assessing knowledge-basedinvestmentsrsquorsquo Journal of Logistics and Information Management Vol 12 No 1

Cronin MJ (1996) Global Advantage on the Internet Van Nostrand Reinhold New York NY

Davis GB (1979) ` Comments on the critical success factors method for obtaining managementrequirements in article by John F Rockart `Chief executives define their own data needsrsquorsquorsquoHarvard Business Review Vol 57No 2 March-April pp 81-93

Davis GB (1980) ` Letter to the Editorrsquorsquo MIS Quarterly Vol 4 No 2 June pp 69-70

DeLone WH (1988) ` Determinants of success for computer usage in small businessrsquorsquo MISQuarterly Vol 12 No 1 March pp 51-61

Dickinson RA Ferguson CR and Sircar S (1984) ` Critical success factors and smallbusinessrsquorsquo American Journal of Small Business January-March Vol III pp 49-57

Dilenschneider RL and Hyde RC (1985) `Crisis communications planning for the unplannedrsquorsquoBusiness Horizons January-FebruaryVol 28 No 1 pp 35-8

Emory WC and Cooper DR (1991) Business Research Methods 4th ed Irwin Homewood IL

Ferguson CR and Dickinson R (1982) `Critical success factors for directors in the eightiesrsquorsquoBusiness Horizons May-June Vol 25 No 3 pp 14-18

Garcia MR (1997) ` Knowledge centralrsquorsquo InformationWeek Vol 649 pp 252-6

Ginzberg MJ (1981) ` Early diagnosis of MIS implementation failure promising results andunansweredquestionsrsquorsquo Management Science April Vol 27 No 4 pp 459-78

Gustin CM Stank TP and Daugherty PJ (1994) ` Computerization supporting integrationrsquorsquoInternational Journal of Physical Distribution and Logistic Management Vol 24 No 1pp 11-16

Hamilton S and Chervany NL (1981a) ` Evaluating information system effectiveness plusmn Part Icomparing evaluation approachesrsquorsquo MIS Quarterly September Vol 5 No 3 pp 55-69

Hamilton S and Chervany NL (1981b) ` Evaluating information system effectiveness plusmn Part IIcomparing evaluator viewpointsrsquorsquo MIS Quarterly DecemberVol 5 No 4 pp 79-86

Hoffman T (1992) ` Users share stories of downsizing pros consrsquorsquo Computerworld OctoberVol 5 p 7

Hylas RE Gordon B and Dinetz GR (1989) `The upside of downsized systemsrsquorsquo BestrsquosReview December pp 78-82

Critical successfactors forintegration

627

References

Barki H and Hartwick J (1994) `Measuring user participation user involvement and userattitudersquorsquo MIS Quarterly Vol 13 No 1 pp 59-82

Baraudi JJ Olson MH and Ives B (1986) `An empirical study of the impact of userinvolvement on system usage and information satisfactionrsquorsquo Communications of the ACMVol 29 No 3 pp 232-8

Bergeron F Rivard S and Raymond L (1993) `Assessment of end-user computing froman organisational perspectiversquorsquo Information Resources Management Journal Winterpp 14-25

Boynton AC and Zmud RW (1984) `An assessment of critical success factorsrsquorsquo SloanManagement Review Vol 25 No 4 Summer pp 17-27

Churchill GA Jr (1979) `A paradigm for developing better measures of marketing constructsrsquorsquoJournal of Marketing Research February pp 67-73

Clark J and Soliman F (1996) `Appraising knowledge-based system investmentrsquorsquo Proceedingsof the 3d European Conference on the Evaluation of Information Technology BathUniversity Bath 29 November pp 143-254

Clark J and Soliman F (1999) `A graphical method for assessing knowledge-basedinvestmentsrsquorsquo Journal of Logistics and Information Management Vol 12 No 1

Cronin MJ (1996) Global Advantage on the Internet Van Nostrand Reinhold New York NY

Davis GB (1979) ` Comments on the critical success factors method for obtaining managementrequirements in article by John F Rockart `Chief executives define their own data needsrsquorsquorsquoHarvard Business Review Vol 57No 2 March-April pp 81-93

Davis GB (1980) ` Letter to the Editorrsquorsquo MIS Quarterly Vol 4 No 2 June pp 69-70

DeLone WH (1988) ` Determinants of success for computer usage in small businessrsquorsquo MISQuarterly Vol 12 No 1 March pp 51-61

Dickinson RA Ferguson CR and Sircar S (1984) ` Critical success factors and smallbusinessrsquorsquo American Journal of Small Business January-March Vol III pp 49-57

Dilenschneider RL and Hyde RC (1985) `Crisis communications planning for the unplannedrsquorsquoBusiness Horizons January-FebruaryVol 28 No 1 pp 35-8

Emory WC and Cooper DR (1991) Business Research Methods 4th ed Irwin Homewood IL

Ferguson CR and Dickinson R (1982) `Critical success factors for directors in the eightiesrsquorsquoBusiness Horizons May-June Vol 25 No 3 pp 14-18

Garcia MR (1997) ` Knowledge centralrsquorsquo InformationWeek Vol 649 pp 252-6

Ginzberg MJ (1981) ` Early diagnosis of MIS implementation failure promising results andunansweredquestionsrsquorsquo Management Science April Vol 27 No 4 pp 459-78

Gustin CM Stank TP and Daugherty PJ (1994) ` Computerization supporting integrationrsquorsquoInternational Journal of Physical Distribution and Logistic Management Vol 24 No 1pp 11-16

Hamilton S and Chervany NL (1981a) ` Evaluating information system effectiveness plusmn Part Icomparing evaluation approachesrsquorsquo MIS Quarterly September Vol 5 No 3 pp 55-69

Hamilton S and Chervany NL (1981b) ` Evaluating information system effectiveness plusmn Part IIcomparing evaluator viewpointsrsquorsquo MIS Quarterly DecemberVol 5 No 4 pp 79-86

Hoffman T (1992) ` Users share stories of downsizing pros consrsquorsquo Computerworld OctoberVol 5 p 7

Hylas RE Gordon B and Dinetz GR (1989) `The upside of downsized systemsrsquorsquo BestrsquosReview December pp 78-82

IJOPM2156

628

Ives B and Olson H (1984) ` User involvement and MIS success a review of researchrsquorsquoManagement Science Vol 30 No 5 May pp 586-603

Kalakota R (1997) Debunking Myths About Internet Commerce University of RochesterRochester NY

Klein TP (1991) `Thinking of downsizingrsquorsquo CIO Julypp 20-1

Lyytinen K (1987) ` Different perspectives on information systems problems and solutionsrsquorsquoACM Computing Surveys Vol 19 No 1 March pp 5-42

Magal SR and Carr HH (1988) `An investigation of the effects of age size and hardwareoption on the critical success factors applicable to information centersrsquorsquo Journal ofManagement Information Systems Vol 4 No 4 Spring pp 60-76

Martin EW (1982a) `Critical success factors of chief MISDP executivesrsquorsquo MIS Quarterly Vol 6No 2 June pp 1-19

Martin EW (1982b) ` Critical success factors of chief executives plusmn an addendumrsquorsquo MISQuarterly Vol 6 No 4 December pp 79-81

Miller J and Doyle BA (1987) `Measuring the effectiveness of computer-based informationsystems in the financial services sectorrsquorsquo MIS Quarterly Vol 11 No 1 March pp 107-24

Montazemi AR (1988) ` Factors affecting information satisfaction in the context of the smallbusiness environmentrsquorsquo MIS Quarterly Vol 12 No 2 June pp 239-56

Mougayar W (1997) Opening Digital Markets Cyber Management Toronto

Munro MC (1983) `An opinion comment on critical success factors workrsquorsquo MIS QuarterlyVol 7 No 3 September pp 67-8

Munro MC and Wheeler BR (1980) ` Planning critical success factors and managementrsquosinformation requirementsrsquorsquo MIS Quarterly December Vol 4 No 4 pp 27-38

Nunnally JC (1978) Psychometric Methods McGraw-Hill New York NY

Phillips JT (1997) `Whatrsquos in that data warehousersquorsquo Records Management Quarterly Vol 31No 2 pp 54-6

Porter ME and Millar VE (1985) `How information gives competitive advantagersquorsquo HarvardBusiness Review July-August Vol 63 No 4 pp 110-18

Raghunathan TS Gupta YP and Sundararaghavan PS (1989) `Assessing the impact of ISexecutivesrsquo critical success factors on the performance of IS organisationsrsquorsquo Informationand Management Vol 17 pp 157-68

Rainer RK Jr Carr H and Magal S (1992) ` Trends in information centersrsquorsquo InformationResources Management Journal Summer pp 5-14

Rockart JF (1979) ` Chief executives define their own data needsrsquorsquo Harvard Business ReviewVol 57 No 2 March-April pp 81-93

Rockart JF (1982) ` The changing role of the information systems executive a critical successfactors perspectiversquorsquo Sloan Management Review Vol 23 No 1 Fall pp 3-13

Rockart JF and Crescenzi AD (1984) `Engaging top management in information technologyrsquorsquoSloan Management Review Vol 25 No 4 Summer pp 3-16

Rockart JF and Flannery LS (1983) ` The management of end user computingrsquorsquoCommunications of the ACM Vol 26 No 10 October pp 776-84

Shank ME Boynton AC and Zmud RW (1985) ` Critical success factor analysis as amethodology for MIS planningrsquorsquo MIS Quarterly Vol 9 No 2 June pp 121-9

Soliman F (1996) ` IT role as a facilitator in global business process re-engineeringrsquorsquo Proceedingsof World Conference on Globalisation and Entrepreneurship ENDEC SingaporeDecember 5-7 pp 733-41

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Soliman F (1997) ` Intelligent business process re-engineeringrsquorsquo Proceedings of SMART97Darling Harbour Sydney 15-16 April pp 229-35

Soliman F (1998) `Optimum level of process mapping and least cost business processre-engineeringrsquorsquo International Journal of Operations amp Production Management Vol 18No 910 pp 810-16

Soliman F and Soar J (1997) ` Physician clinical communication systems plusmn an Australianperspectiversquorsquo Journal of Medical Systems Vol 21 No 2 April pp 99-106

Soliman F and Youssef M (1998) ` The role of SAP software in business processre-engineeringrsquorsquo International Journal of Operations amp Production Management Vol 18No 910 pp 886-95

Symon G and Clegg C (1991) ` Technology-led change a study of the implementation of CADCAMrsquorsquo Journal of Occupational Psychology Vol 6 No 4 pp 273-90

Tait P and Vessey I (1988) ` The effect of user involvement on system success a contingencyapproachrsquorsquo MIS Quarterly March Vol 12 No 1 pp 91-108

Tantoush T (1998) ` The implementation and integration of CADCAM in manufacturingorganisations grounded theory investigationrsquorsquo PhD dissertation Department ofManagement University of St Andrews Fife

Yaverbaum GJ (1988) `Critical factors in the user environment an experimental study of usersorganisations and tasksrsquorsquo MIS Quarterly Vol 12 No 1 March pp 75-88

Yin R (1994) Case Study Research Design and Methods 2nd ed Sage Publications NewburyPark CA

Zahedi F (1987) ` Reliability of information systems based on the critical success factors-formulationrsquorsquo MIS Quarterly Vol 11 No 2 June pp 187-203

Zmud RW (1979) ` Individual differences and MIS success a review of the empirical literaturersquorsquoManagement Science Vol 25 No 10 October pp 966-79