does size matter? enterprise system performance in small,medium and large organizations
TRANSCRIPT
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9/28/20109/28/2010 11Does Size Matter? Enterprise System Performance in Small Medium andDoes Size Matter? Enterprise System Performance in Small Medium andLarge OrganizationsLarge Organizations
Does Size Matter?
Enterprise System Performance in Small,
Medium and Large Organizations
Kanak Sood 06503877Kanak Sood 06503877
Shivang Jain 09609156Shivang Jain 09609156
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OrganizationsOrganizations 22
A brief introductionA brief introduction
An ideology of planning and managing the resources of an entire
organization in an efficient, productive, and profitable manner.
The ERP market, currently estimated at $38 billion, is predicted to reach
$50 billion by 2012
Traditionally restricted to large organizations, prompting some researchers
and practitioners to claim that ES are only suitable for large corporations
ES vendors focusing on Small and Medium Enterprises (SMEs) withscaled-down ES.
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Results of past studiesResults of past studies
Medium-sized organizations lack all three aspects: time, skills, and
resources compared to their larger counterparts.
lack of resources make small organizations more vulnerable to
environmental effects and misjudgments forcing them to allocate more time
to adjusting to, rather than devoting time on predicting and controlling.
Lack of resources hinder IT adoption and to negatively affect IS
implementation success and IT growth in Small and Medium Enterprises
(SME).
medium-size organizations are unable to balance ease-of-use with the
industry-specific requirements needed to effectively run the business
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Organization classificationOrganization classification
Researchers using the number of employees as the sole classification in
placing organizations in the small, medium, large continuum.
medium is defined as enterprises with less than 250 employees
organizations with less than 50 employees are classified as small.
organizations with more than 250 employees are classified as large
employing the number of user licenses to usefully classify organizations
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The survey instrumentThe survey instrument
System Quality Information Quality Individual Impact Organisational Impact
SQ1 Ease of use IQ1 vaila ility II1 Learning OI1 Organisational costs
SQ2 Ease of learning IQ2 Usa ility II2 wareness / ecall OI2 Staff requirements
SQ User requirements IQ Understanda ility II Decision effectiveness OI Cost reduction
SQ System features IQ elevance II Individual productivity OI Overall productivity
SQ System accuracy IQ Format OI Improved outcomes/outputs
SQ6 Flexi ility IQ6 Conciseness OI6 Increased capacity
SQ Sophistication OI e- usiness
SQ8 Integration OI8 Business Process Change
SQ9 Customisation
three additional criterion measures :-
Overall, the impact of SAP (Financials) on me has been positive.
Overall, the impact of SAP (Financials) on the agency has been positive.
Overall, SAP is satisfactory
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luster Analysisluster Analysis
Using the criterion item on Organizational Impact a cluster analysis wasconducted
These 3 classes compared with the demographic details gathered
through the survey based on:
200 or less SAP user licenses
200- 999 SAP user licenses
1000 or more SAP user licenses
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luster Analysisluster Analysis
The three classes and the three cluster variables were compared
Large (4), Medium (17), Small (6)
A B C D E
Cluster N% of
Total
Mean Values for
Criterion Items
# of User
Licenses
C1 C2 C3
1 Large 66 21.29
5.00 5.23 4.77 Greater than
1000
2
Medium 196 63.23
4.36 4.46 4.26 200 - 999
3 Small 4815.
48 4.6
74
.73 4
.48 Less than
199
Combined 310 100
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Organ ational Impact
Large
Large
Large
Large
Large
Large
Large
Large
Medium
Medium
Medium
Medium
Medium
Medium
Medium
Medium
Small
Small
Small
Small
Small
Small
Small
Small
. . .
oi1
oi2
oi
oi
oi
oi
oi
oi8
Measures
Scale
Organizational mpactOrganizational mpact
Overall Productivity
Cost Reductions
StaffReductions
Organizational Costs
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ndividual mpactndividual mpact
Ind v du Imp
Large
Large
Large
Large
Medium
Medium
Medium
Medium
Small
Small
Small
Small
2 8 2 8
ii1
ii2
ii
ii
u
Ind v du P odu v y
Aw n nd L n ng
D on Eff v n
Ind v du P odu v y
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Inf r t n Qualit
Large
Large
Large
Large
Large
Large
Medium
Medium
Medium
Medium
Medium
Medium
Small
Small
Small
Small
Small
Small
2 8 2 8
i 1
i 2
i
i
i
i
asurs
Scale
nformation ualitynformation uality
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ResultsResults
All organization types e hibit
strong correlation bet een the
success dimensions and
overall success
There is an inverserelationship bet een
organizational size and e tent
of correlation
Small Medium Large
System Quality 0.832 0.806 0.784
Information
Quality 0.795 0.696 0.686
Individual Impact 0.839 0.768 0.560
Organizational
Impact 0.823 0.806 0.636
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