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Influence of an ERP system on the value chain process of multinational enterprises (mnes)( Télécharger le fichier original )par Bosombo Folo Ralph University of Johannesburg - Master in business administration (MBA) 2007 |
Information Management
35 Sutton (in Walters & Lancaster, 2000:162-3) proposes the market mechanism as a means to coordinate activities. It is suggested that the term "market co-ordination" be used for the situation in which specialisation is separate and where the value chain comprises a series of sequential individual activities under individual ownership. An alternative model is one in which more than one organisation"... seeks to combine two or more stages under single control and rely upon internal management to ensure co-ordination". Sutton uses the conventional term "vertical integration" for this structure. An organisation may also act as a contractor to co-ordinate the other links in the value chain but relies on external agreements rather than internal management. The vertical co-ordination comprises individual organisations having specific objectives but shared purpose (customer satisfaction) within the value chain. According to Sutton (in Walters & Lancaster, 2000:162-3), vertical integration has alternative structural options, namely breadth and depth. Breadth occurs in companies that rely on co-ordination of some activities while assuming ownership of others. Sutton (in Walters & Lancaster, 2000:162-3) suggests differentiation as breadth being the extent of co-ordination with vertical integration and depth the activities that are combined into one activity, given that the value chain is concerned with value maximisation and cost optimisation. Therefore, the availability of economies of scale and scope is important. These relate to the ability to specialise and gain cost advantages and/or to offer a limited range of specialist products and/or services that have significant impact on customer costs, for which much of the fixed costs are shared. 2.7.5 Value nets A traditional supply chain is designed to meet customer demand with a fixed product line, relatively undifferentiated, one-size-fits-all output and average service for average customers. In contrast a value net forms itself around its customers, who are at the centre. It captures their real choices in real time and transmits them digitally to other net participants. 36 Table 2.1: Key business design differences Old supply chain New value net
Firm Infrastructure
Human Resource Management
Technology Development
Procurement
Real-time integrated scheduling, shipping, warehouse management, demand management and planning, and advanced planning and scheduling across the company and its suppliers Inbound Logistics Web-distributed supply chain management Integrated information exchange, scheduling, and decision making in in-house plants, contract assemblers and components suppliers Real-time availableto-promise and capable-to-promise information available to the salesforce and channels Operations Real-time transaction of orders whether initiated by an end consumer, a salesperson, or a channel partner Automate customer-specific agreements and contract terms Customer and channel access to product development and delivery status Collaborative integration with customer forecasting systems Integrated channel management including information exchange, warranty claims, and contract management Outbound Logistics Real-time inside and outside access to customer information, product catalogs, dynamic pricing, inventory availability, online submission of quotes, and order entry Online sales channels including Web sites and marketplaces Online product configurators Customer-tailored marketing via customer profiling Push advertising Tailored online access Real-time customer feed-back through Web surveys, opt-in/- out marketing, and promotion response tracking Marketing and sales Customer self-service via Web sites and intelligent service request processing including updates to billing and shipping profiles Real-time field service access to customer account review, schematic review, parts availability and ordering, work-order Update, and service parts manage- ment Online support of customer service representative Through e-mail response management, billing integration, co-browse, chat, " call me now," voice-over IP, and uses of video streaming After-Sales Service
For effective value chain reconfiguration, the process of reconfiguring is necessary to an organisation's survival in a changing environment (Normann & Ramirez, 1998:99). Thus, having an offering code that enhances fit for potential value-creating activities between supplier and customer is necessary. This is where the concept of leverage comes in. According to Normann and Ramirez (1998:59), leverage explores
and exploits opportunities based 39 enabling the customer. Both concepts concern the configuration of activities as they are manifested in the relationship linking customer and supplier; that is, in the offering. 2.8 ERP system and e-business: An evolving relationship for value chain extension In the 1990s, software developers developed ERP software, a fuller "suite" of applications capable of linking all internal transactions. Since then the use of ERP software has exploded, and some advocates claim that it is the ultimate solution to information management. While traditional production management information systems have focused on the movement of information within an organisation, Web-based technology facilitates movement of information from business to business (B2B) and from business to consumer (B2C), as well as from consumer to business (Balls et al., 2000:2-3). According to Balls et al., (2000:2-3), research groups such as Forrester, Gartner and AMR all project incredible growth for e-business in the first five years of the new century. Some analysts in Balls et al., (2000:2-6) comment that in their rush to become an e-business, most organisations have decided against implementing an ERP system. Balls et al., (2000: 4-6) have discovered that some client companies are building e-business applications while largely ignoring ERP development, hoping someone, someday will integrate the back end. As a result, companies whose e-business applications have no order-fulfilment and order-status capabilities either lack data or need to recreate it. E-business simply does not work without clean internal processes and data. The choice, though, is not between developing e-business solutions or implementing ERP. Clearly, both are necessary. According to Balls et al., (2000:4-6), making ERP work most effectively in an e-business environment means shedding old notions of ERP. One such notion is whether ERP will always look the same. Balls et al., (2000:2-3) assert that ERP software in the next few years will certainly not look like ERP software designed in the 1990s. The delivery of ERP functionality will also change. For instance, a software vendor that today focuses on one front-end e-business application may in the future build into its products a transaction engine component that can then be attached to other organisations' front-ends. The other option is that ERP vendors will successfully make products more flexible and less difficult to implement, and they will either add e-business functionality or make their systems more compatible with third-party front-end e-business products. Why is this a 40 challenge for ERP vendors? Organisations use ERP software to enable processes that confer a competitive edge. Consequently, e-business is forcing ERP vendors to rethink their products' role within the enterprise. All are in some way looking to broaden ERP functionality to incorporate front-end technology and create trading communities through portals and joint ventures with Web-based technology and other vendors. For many organisations, ERP itself may be delivered over the Web through business application outsourcing undertaken by application service providers. In the future, it is clear that companies will work together in extended value chains. Those that are able to plug their internal IS into the information chain that parallels the physical goods value chain will prosper; those that are not will fail. Successful organisations will be part of a networked team of business partners dedicated to delivering customer value. Very few (if any) organisations will be able to compete single-handedly against such a team. The technology to "team" is available today, and strong teams are already beginning to form. In short, together, e-business technologies (the Internet, the Web, a host of e-enabling technologies) and ERP systems will provide companies with new options for raising profitability and creating substantial competitive advantage (Balls et al., 2000:7). Balls et al., (2000:7) realise that properly implementing e-business and ERP technologies in harmony truly creates a situation where synergism is created. Web-based technology puts life and breath into ERP technology that is large, technologically cumbersome and does not always easily reveal its value. While ERP organises information within the organisation, e-business disseminates that information far and wide. ERP and e-business technologies supercharge each other. The purpose of these new technologies (ERP and e-business) is to enable the extended value chain. 2.9 The value chain selected and customised for the purpose of this study This study involves Porter's value chain, Walters and Lancaster's value chain, the e-business value chain, the Scott value chain and the customer-centric value chain as discussed at the beginning of this chapter. The reasons for selecting these value chains respectively are given below.
Porter's value chain model is one of the foundation concepts on
which most ERP systems are built. 41 of Porter's value chain with Axapta Microsoft software modules and configuration as motivated in chapter 1.
CHAPTER 3: AN OVERVIEW OF ERP SYSTEMS
+ Web-enabled + 49 Source: Adapted from Blasis & Gunson (2002:17). For many users, an ERP system is a «do it all» that performs everything from sales orders to customer service. Others view it as a data bus with data storage and retrieval capability. In addition, Gardiner, Hanna and LaTour (in Shehab, Sharp, Supramaniam & Spedding, 2004:8) point out that an ERP system can be used as a tool to help improve the performance level of a supply chain network by helping to reduce cycle times. Boykin (in Shehab et al., 2004:8) argues that an ERP system is the price of entry for running a business and for being connected to other organisations in a network economy to create B2B and electronic commerce. ERP brought about the myriad of interconnections, which ensure that any other unit or department within the organisation can obtain information in one part of the business. This makes it simpler to see how the business as a whole is doing. ERP systems help people eliminate redundant actions, analyse data and make better decisions (Sweat in Gupta, 2000:115). An ERP system is the information pipeline system within an organisation which allows the organisation to move internal information efficiently so that it may be used for decision support inside the organisation and communicated via e-business technology to business partners throughout the value chain (Balls et al., 2000:186). In addition, Siriginidi (2000:378) defines ERP as an integrated suite of application software modules, providing operational, managerial and strategic information for organisations to improve productivity, quality and competitiveness. From the above definitions, it can be concluded that an ERP system can be regarded as an integrated organisation-wide software package that uses a modular structure to support a broad spectrum of key operational areas of the organisation. It provides a transactional backbone to the organisation that allows the capture of basic cost and revenue related movements of inventory. In so doing, ERP affords better access to management information concerning business activity, showing actual sales and cost of sales in a real-time fashion (Adam & Carton, 2003:22). The full installation of ERP software across an entire organisation connects the components of the organisation through a logical transmission and sharing of commonalties. Therefore, in this interface the data such as sales becomes available at any point in the business, and it courses its way through the software, which automatically calculates the effects of the transaction on areas such as manufacturing, inventory, procurement, invoicing and bookkeeping (Balls et al., 2000:12). Clemons and Simons 50 (2001:207) state that ERP is a term used to describe business software that is multifunctional in scope, integrated in nature and modular in structure. Indeed, ERP systems are designed for multisite, multinational companies, which require the ability to integrate business information, manage resources and accommodate diverse business practices and processes across the entire organisation. In support of the above view, Wood and Caldas (in Adam & Carton, 2003:22) found in their survey of 40 organisations that had implemented ERP that the main reason for doing so was the need to "integrate the organisation's processes and information". 3.4 The general model of an ERP system compared to a value chain system According to McAdam and McCormack (2001:116), the concept of integration within the functions of an organisation can be represented by Porter's value chain model as depicted in figure 2.1. Porter looked at the organisation as a collection of key functional activities that could be separated and identified as primary activities (inbound logistics, operations, outbound logistics, marketing and sales, and service) or support activities (infrastructure, human resource management, technology development and procurement). Porter arranged these activities in a value chain. Maximising the linkages between the activities increases the efficiency of the organisation and the marginal availability for increasing competitive advantage or for adding shareholder value. Integration occurs between the primary activities in each value chain, and is enabled by the support activities. It can also take place between activities in different organisations, and in some cases, the support activities also share resources. Thus, ERP systems aid the integration of these various functional processes within the organisation's value chain. Figure 3.2 below represents the general model of ERP systems and execution, integrated functionality and the global nature of present-day organisations in the different functional activities format of Porter's value chain model in figure 2.1. In figure 3.2, the circle at the centre represents the entities (organisation, payroll/employees, cost accounting, general ledger, job/project management, budgeting, logistics and materials, etc.) that constitute the central database shared by all functions of the organisation. The border represents the cross-enterprise functionality (multiplatform, multimode manufacturing, electronic data interchange, workflow automation, database creation, imaging, multilingual, etc.) that must be shared by all systems. The cross-organisation borders would be multifaceted, act as multifacilities and represent the capability required by the organisation to compete and succeed globally. It is important for the system's total solution to support multiple divisions or organisations under a 51 corporate banner and seamlessly integrate operating platforms as the corporate database that results in integrated management information (Siriginidi, 2000:379-80). The co-ordination performed by information system integration (ERP system) within the organisation's value chain enables more views to be shared, employee awareness to be broadened and customer expectations to be tracked and met (Bhatt, 2000:1331) Figure 3.2: The general model of an ERP system
Source: Adapted from Siriginidi (2000:380). The emphasis is further placed on the fact that the heart of any ERP exercise materialises in the creation of an integrated data model. Approaching it holistically, the ERP and execution model and its flexible set of integrated applications keep operations flowing efficiently. It should be looked upon as the acquisition of an asset, not as expenditure. An ERP system as a business tool seamlessly integrates the strategic initiatives and policies of the organisation with the operations, thus providing an effective means of translating strategic business goals to real-time planning and control. In order to achieve the integration of all the basic units of the business transaction, ERP systems rely on large central relational databases. This architecture represents a return to the 52 centralised control model of the 1960s and 1970s (Stirling, Petty & Travis, 2002:430), where access to computing resources and data was very much controlled by centralised IT departments. Therefore, ERP implementations are an inherent part of a general phenomenon of centralisation of control in large businesses back to a central corporate focal point (Clemons & Simons, 2001:207). 3.5 The role and benefits of an ERP system According to Ming, Fyun, Shihti & Chiu (2004:689-90), ERP systems have developed beyond their originally design intended to provide organisations with integrated, consistent and concurrent information that is available across the organisation. Integrated with electronic data interchange, it is used to streamline business processes in vertical markets, giving organisations the control and management of their resources. Furthermore, ERP systems provide a platform for integrating applications such as executive information system data mining, SCM, CRM and e-commerce systems. The real benefits of ERP systems currently are associated with the arrival of Web applications, which facilitate ERP systems to extend to electronic markets integrated with supply chains through B2B e-hubs. It further also extends to partners to integrate their own operations with other functions and to manage, monitor and execute all transactions in real time. An ERP system is considered to be the price of entry into B2B, e-market and other organisations in a network economy. Davenport (in Adam & Carton, 2003:24) shows the paradoxical impact of an ERP system on organisation and culture. ERP systems provide universal, real-time access to operating and financial data, and allow the organisations to streamline their management structures, creating flatter, more flexible and more democratic organisations. ERP systems also involve the centralisation of control over information and the standardisation of processes, which are qualities more consistent with hierarchical, command and control organisations with uniform cultures. Indeed, ERP systems help organisations in cross-organisation application integration, where the organisations can link their ERP systems directly to the disparate applications of their suppliers and customers. Therefore, such integration benefits the organisation in the following ways, which have been emphasised by Gupta (2000:115-6):
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CHAPTER 4: A CASE STUDY OF ERP SYSTEM - AXAPTA
MICROSOFT
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Source: Adapted from Axapta Microsoft software base study: available online.
4.6 The generic modules of Axapta Microsoft solution
The Axapta software solution offers the full breadth and functionality equivalent to other high-end products. A complete listing of Axapta's modules is provided below:
· Financial management - Comprehensive accounting, financial reporting and analysis. 81
· Business analysis - Helps an organisation to create, view and understand multidimensional reports.· Object server - Technology that minimises bandwidth requirements and offers secure client deployment.
· Tools - These allow almost every aspect of Axapta to be tailored, including user screens, reports, statements, tables and fields.
· Commerce gateway - Supply chain solution.
· Enterprise portal framework - Workflow is made smoother by allowing employees, customers, vendors and other business partners to interact directly with an organisation's ERP system.
· HR balanced scorecard - Business performance can be monitored based on key performance indicators.
· HR business process management - Business processes can be developed and managed by identifying and monitoring actions.
· Human resource management I - Helps gather and structure employee information.
· Human resource management II - Automated recruitment processes and employee absence analysis.
· Human resource management III - Resources can be developed to meet strategic goals.
· Logistics - Purchasing, production, customer demand, inventory and other key areas of other business can be streamlined.
· Master planning - Product forecasts are produced to project long-term needs for materials and capacity.
· Product builder - Web-based product configuration, allows for configuration of complex products.
· Production - Production I: Handles the material flow from suppliers, through production, to customers. Organisations can plan and execute routes, operations and do rough capacity planning. Includes operation management and detailed production scheduling.
· Shop floor control - Personnel and production can be managed. Tasks, time and material are registered via bar codes. Definitions of non-productive time are created and management can obtain an overview of who is doing what, and when.
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· Trade - Automated sales and purchasing, exchange sales and purchasing information electronically (in combination with the commerce gateway module). System automatically calculates tax and cheks inentory and customer credit information. Picking and receiving documentation is automatically generated. Automatic tracking of back orders. Automatic unit conversions.· Warehouse management - Warehouses can be managed according to individual needs. Warehouse layout is optimised to increase efficiency. The warehouse can be divided into zones to accommodate different storage needs. Warehouse locations can be specified on five levels: warehouse, aisle, rack, shelf and bin. Helps the organisation to find the optimal storage location.
· Project - Project I: Time, materials and supplies consumption is entered, and projects and financial follow-up are managed for shorter-term time and material projects and internal projects. Project II: Advanced financial management for longer-term time and material projects, internal project, and fixed-price projects.
· Marketing automation - Specific audiences are targeted. Prospect information can be used to segment organisation target audience into meaningful profiles. An organisation can add and remove targets to meet its exact requirements and import address lists.
· Questionnaires - Online surveys, such as customer or employee satisfaction, can be designed in a matter of minutes, without any technical experience. Searches can be done for survey participants in system by criteria, for example job title. Surveys and results are made available via intranet or public website.
· Sales management - Individuals, teams and the entire organisation can be managed and monitored. Sales targets for individuals, teams and the company can be defined. The system tracks progress of activities, including pending sales quotes and generate forecasts.
· Sales force automation - Contact management can be streamlined. One centralised place provides a quick status of customers, prospects, vendors and partners. The system automatically detects incoming phone numbers and finds the contact card. Transaction log gives the organisation an overview of who has been in contact with a prospect or customer and what has been done. The system supports mail merge files and group e-mails.
· Telemarketing - Telemarketing campaigns can be managed. Call lists are generated by selecting fields, such as sales district, revenue, relation types, segment and past sales behaviour. Call lists can be distributed to salespeople and telemarketing staff. Questionnaires and
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telemarketing scripts can be attached to call lists and call logs can be used to check the status of calls and create reports and future lists.
· Sales and marketing - Helps the organisation to access relevant sales information and instant cost-benefit analyses of revenue for executed campaigns. Gives the entire organisation access to contact information. Forecasts based on anticipated sales can be made.4.7 Conclusion
The Axapta Microsoft software discussed in this chapter will be compared with the literature review in chapters 2 and 3 in order to highlight the qualitative outcome of this study in chapter 6.
The next chapter (5) deals with the research methodology used in this study.
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5.1 Introduction
In this chapter the methodology and research design utilised in this study are described. The type of research, the population, the data collection, as well as the sampling methodology and procedures, and data analysis used in this study is also outlined. Included in this chapter are the description of the methods used to collect the qualitative and quantitative data relating to the objectives and hypotheses formulated in this study.
5.2 Qualitative and quantitative study
This study involved both quantitative and qualitative research. Kruger and Welman (2002:191) stipulate that qualitative research is not concerned with the methods and techniques to obtain appropriate data for investigating the research hypothesis, as in the case of quantitative research. Qualitative data is based on meanings expressed through words and other symbols or metaphors. Qualitative studies can be used successfully in the description of groups (small) communities and organisations by studying cases that do not fit into particular theories. Thus, in this study qualitative research was applied to compare the different ways in the literature of linking strategy with IT through the value chain approach, and the general theory of ERP systems with the Axapta Microsoft software information. The quantitative research dealt with the factors associated with IT strategy, the ERP concept, usage and selection. This data was obtained through mail survey questionnaires in order to investigate some of the research objectives and hypotheses of this study (see table 5.2).
For the qualitative part of this research, the literature review dealt with the primary objective, as well as secondary objectives 1, 2, 3 and 4. For the empirical part of this research, the study involved a self-administered survey, which attempted to highlight the primary objective, as well as secondary objective 3 and hypotheses 1, 2, 4, 5 and 6 (H1, H2, H4, H5 and H6) to answer the overall hypothesis 3 (H3) of this study. Objective 5 is linked to chapter 7.
5.3 Research design
According to Kruger and Welman (2002:94), the design of a study concerns the plan to obtain
appropriate data for investigating the research hypothesis or question. Data collection tools for
surveys include interviews and questionnaires. In this study interviews allowed the researcher to85
clarify answers and follow up on interesting answers, while questionnaires were designed to be self-administered, since they can be mailed to a larger number of respondents. This short-dissertation was conducted using primarily a case study, which laid the foundation for the exploratory and empirical study. Interviews were used to explore the organisations using ERP systems, i.e. SAP software. Secondary to this, the researcher conducted an exhaustive literature review of the research topic. This involved the study of appropriate textbooks and conference papers, and the maximal use of Web-based documents that were used in the discussion of literature assessed in the case study. The study falls into the category of descriptive research, which aids in accommodating larger sample sizes, thus giving the research findings more generalisability than those of exploratory or qualitative designs (Hair, Buch & Ortinau, 2003:256).
Melville and Goddard (1996:44-5) point out that non-returns are a particular problem with questionnaires. Repeated follow-ups are most effective for reducing the non-response rate. Most research in the world is hampered by constraints of resources, subjects and time. Furthermore the researcher's work is complicated by many sources of bias and error that must each be dealt with as effectively as possible to ensure the high quality of the research (Bless & Higson-Smith, 1995:79). Thus, in this study, the researcher dealt with the non-response rate through the follows-ups. Non-respondents were contacted by telephone to remind them about the questionnaires that they had been asked to complete.
5.4 Methods of collecting quantitative data
The researcher chose self-administered surveys and structured telephone interviews to achieve the research objectives of this study. Hair et al., (2003:265) note that a self-administered survey is a data collection method where respondents read the survey questions and record their responses in the absence of a trained interviewer.
In this study, the researcher first conducted an exploratory telephone interview survey to identify the participants, especially the MNEs operating with any ERP system software. From that, the researcher contacted the key informants by telephone, most of them IT managers, to explain the purpose of this study. Respondents were also asked for their participation in the survey, which therefore allowed the researcher to compile the list of companies that use ERP software. These companies were used in the self-administered survey (see appendix E).
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The participants in the survey of this study were CEOs/CIOs, managers (general, senior, middle and junior) and the end-users in the MNEs that use ERP, i.e. SAP software. The questionnaires were distributed to the IT human resource department in the nominated companies. For some of the MNEs, questionnaires were distributed through the general human resource department.
In total, 11 MNEs using SAP software were identified during the preliminary structured telephone interview survey. Only five MNEs using SAP software in Gauteng were involved in the self-administered surveys. The limited number was owing to budget constraints (see appendices D and E).
The researcher chose Axapta Microsoft solution from the available ERP software to be included in the qualitative study for several reasons:
· Firstly, it is designed for MNEs and has the ability to integrate the value chain so that the organisation can act globally and increase competition.
· Secondly, it is one of the leading ERP software systems in the world for manufacturing and service organisations.
For the quantitative study, SAP software was selected owing to its popularity and utilisation in the MNEs randomly selected through the preliminary structured telephone interview survey conducted by the researcher, as indicated in table 5.1 below.
Table 5.1: The usage of ERP software in randomly selected MNEs
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Source: Obtained from the preliminary structured telephone interview survey conducted by the researcher.
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5.5 Sampling method and sample size
5.5.1 Sampling method
Sampling is defined as the selection of a small number of respondents from a larger defined target population, assuming that the information gathered from the small group will allow the researcher to make generalisations or judgements concerning the larger group (Hair et al., 2003:333). According to Kruger and Welman (2002:46), there are two sampling designs:
· The probability sample involving simple random samples, stratified random samples, systematic samples and cluster samples; and
· The non-probability sample involving accidental or incidental samples, purposive samples, quota samples and snowball samples.
In probability sampling, the probability that any element or member of the population will have to be included in the sample can be determined. This is not the case in non-probability sampling. Considering the advantages and disadvantages of the sampling methods discussed above, it was concluded that a probability sampling design involving simple random samples had to be implemented in this study to compile the representative samples of employees in the MNEs. The researcher selected five out of eleven MNEs from a random list of the organisations using SAP in Gauteng (appendix E). By focusing only on these organisations in one province, the sample constituted a good representation of the organisations operating in Gauteng with a total turnover of nearly R1 billion per annum. Most of these organisations have been classified in the sector of financial services and manufacturing.
5.5.2 The sample size
The sample size of this study consists of five MNEs. In total 75 self-administered surveys were issued to each MNE, with the total sample size (N) equal to 375 participants. (One self-administered survey targeted one CEO/CIO with N = 1; one self-administered survey targeted managers (general, senior, middle and juniors) in each MNE with N = 30, and 44 end-users of the IT department of each MNE, N= 44). See table 5.3 (Response rate to the self administered survey).
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5.6 Questionnaire design for the quantitative study
A questionnaire is a tool for collecting information to describe, compare or explain knowledge, attitudes, behaviours and/or socio-demographic characteristics of a particular target group (Rojas & Serpa, n.d.). The questionnaire used in this study to collect primary data was designed in accordance with the primary and some of the secondary objectives and research hypotheses proving the overall hypothesis 3 (H3) of this study, as will be discussed in more detail in chapter 6. The researcher compiled the questionnaire in accordance with seven basic principles of questionnaire design and layout (Dillon, Madden & Firtle, 1993:304).
The principles are as follows:
· Principle 1: Be clear and precise.
· Principle 2: Response choices should not overlap and should be exhaustive.
· Principle 3: Use natural and familiar language.
· Principle 4: Do not use words or phrases that show bias.
· Principle 5: Avoid double-barrelled questions.
· Principle 6: State explicit alternatives.
· Principle 7: Questions should meet criteria of validity and reliability.
The empirical data collection was structured and subdivided into two separate questionnaires (see appendices A and B).
· Firstly, a questionnaire was designed to target the CEOs or CIOs to get their views on the strategic part of the system within their organisation.
· Secondly, a questionnaire was designed to target the managers and the end-users in order to get
their views on the management and operational aspects of the system, its usage and awareness.Table 5.2 contains a summary of the objectives and hypotheses as linked to the questions used in the questionnaire.
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Table 5.2: Relationships between questions in self-administered questionnaire survey and the primary and secondary objectives and research hypotheses.
· Questions linked to the primary and secondary objectives
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· Questions linked to hypothesis
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5.7 Response rate
The three-page questionnaire was mailed to every participant (CEOs/CIOs, managers and end-users), resulting in a total of 375 questionnaires. Therefore each of the five MNEs received 75 questionnaires. In total only three MNEs returned the completed questionnaires, with a total response of 137 constituted of 3 CIOs, 61 managers and 73 end-users (In some of the statistical analysis in the chapter six, the missing value were found therefore N value vary between 134 and
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137). The total response rate therefore was 36.53 % of the sample (137 of the questionnaires returned out of 375 questionnaires issued).
Table 5.3: Response rate to the self-administered survey.
· Sample population
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5.8 Data analysis
The different measuring instruments of mean, mode, standard deviation and so on were used to analyse the data collected (see appendices G and H). Furthermore, statistical analysis through chi-square was conducted to test the relationships between the hypotheses formulated (H0 and H1) in cross-tabulation with the different questions formulated. Fisher's exact test exact significance (one-sided) value was used as the p-value in this study. In cases where the p-value was less than 0.05, the hypothesis was rejected. If the p-value was greater than 0.05, the hypothesis was accepted.
5.9 Conclusion
This chapter dealt with the various methods and techniques used to collect the data in this study. An overview of the self-administered questionnaire as the specific measuring instrument was also provided. Reference was made to the sample size, the population of this study, as well as the detail of the interdependence of the questionnaire and the primary and secondary objectives and hypotheses of this study for the empirical part of the research.
The chapter to follow (chapter 6) will provide the qualitative and quantitative findings of this study relating to the various hypotheses proposed in chapter 1.
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6.1 Introduction
While the previous chapter described the methodology and research design utilised in this study, this chapter outlines the finding of the qualitative study relating to the primary and some of the secondary objectives as indicated in the previsious chapter. The findings are related to the literature review (linking strategy with IT through a value chain approach, and the ERP system), with Axapta Microsoft software attributes given in the case study. The findings of the empirical study conducted through self-administered questionnaires are also represented in a similar order as given in the measuring instrument.
6.2 Qualitative findings
The findings of the qualitative study indicate that Axapta software is a value chain system that meets the requirements of a global ERP system due to its configuration and architecture under MNE strategy. It was found that its integrated status, which encompasses ERP system attributes and characteristics, its functionalities, modules and open system function with e-business mechanisms help to integrate, co-ordinate and leverage the MNEs' value chain. Cost leadership and differentiation strategy elements within Axapta software also position it as a strategic IT tool, which therefore supports the MNEs in crafting their business strategy to gain competitive advantage.
6.2.1 Axapta software integrates MNEs' value chain and supports MNEs' strategy
The Axapta Microsoft software is consistent with the concept of competitive business strategy as discussed by Turban et al., (2004a: 6) in section 2.2. These authors stipulate that IT can help any business to pursue competitive strategies by developing new market niches, locking in customers and suppliers by raising the cost of switching, providing unique products and services and helping organisations to provide products and services at a lower cost by reducing and distributing costs.
According to Ward and Griffiths (in Corboy, 2002:7) and Siriginidi (2000:376), IT can be used to gain competitive advantage because of its capabilities and status of linking the organisation to the customers and suppliers through EDI, VANs and extranets, creating effective integration of the use of information in a value-adding process, enabling the organisation to develop, produce, market and
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distribute new products or services and provide senior management with information to assist them to develop and implement strategies through knowledge management. See section 2.3.
Axapta software can be used as a strategic IT tool within MNE management because it improves co-ordination, collaboration and information sharing, both within and across the various organisation's sites, and integrates the management information processes and applications within the MNE's operations. (See sections 4.4, 4.5 and 4.6.)
· Axapta's various functionalities and the Internet allow MNEs to collaborate and connect with their customers, vendors, partners, or employees via the Web, Windows, WAP, wireless, VAN, LAN, XML and Microsoft BizTalk. It allows MNEs to exchange information with others through ERP software in their IT infrastructure, such as a parent company, subsidiary or supplier.
· The selected key features are speed, customisation options, multiple databases, worldwide features, all-in-one products, foreign language and foreign currency, built-in remote access and questionnaires.
· The generic modules of Axapta consist of Financial management, Business analysis, Object server, Tools, Commerce gateway, Enterprise portal framework, HR business process management, Human resource management I, II and III, Logistics, Master planning, Product builder, Production, Shop floor control, Trade, Warehouse and sales management, Project, Marketing automation, Questionnaires, Sales force automation, Telemarketing and Sales and marketing. The modules could be customised to suit the MNE structure and objectives.
Axapta attributes include programming language (Java-derivative with embedded SQL support), database (either Microsoft SQL server or Oracle database), source code (MorphX), Web applications and the commerce gateway that provides an XML interface to the Microsoft BizTalk server as discussed in section 4.3. These attributes classify Axapta software's generic capabilities as a transactional and geographical automation and an analytical, informational and sequential system for MNEs. Therefore Axapta software is truly an ERP system, which provides a platform for integrating MNE applications such as SCM, CRM, executive information system data mining and e-commerce systems. Axapta thus conforms to the view of Aladwani (2001:266) that an ERP system is an integrated set of programmes that provides support for core organisational activities. Blasis
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and Gunson (2002:16-7) state that an ERP system is a tool that grafts a solution for human resources, finance, logistics etc., and eventually to SCM and CRM, as discussed in section 3.3. Ming et al. (2004:690) and Davenport (in Adam & Carton, 2003:24) are of the opinion that an ERP system influences the cross-organisation application integration, where organisations can link their ERP systems directly to the disparate applications of their suppliers and customers. Such integration benefits the organisation due to its current associated trends. Axapta fulfils these requirements as well. (see section 3.5.)
Axapta software could support MNEs' value chain internationally since it has centralised, distributed and hybrid architecture as mentioned by Clemons and Simons, and Zrimsek and Prior (in Madapusi & D'souza, 2005:10). Axapta software can be configured and customised according to the MNE strategy at organisation, system and business process level (see sections 3.7.1 and 3.7.3). Thus, through the MNE's strategy, Axapta architecture is multifunctional and can be customised and parameterised to suit the MNE with distributed information architecture, a stand-alone local database and application as options.
6.2.2 Strategic factors of an ERP system evaluation
To meet the requirements of the MNE's value chain system, ERP software needs to be evaluated in terms of its modules and functionality. It must also be possible to configure the different ERP software systems with different modules, thereby making it look different from others (Sarkis & Sundarraj, 2000:205). A typical set of business functions supported by an ERP system as the supply chain factors for ERP software evaluation was summarised in section 3.8. Sarkis and Sundarraj (2000:205) have integrated those evaluation factors into one conceptual model, shown in figure 3.3, to explain the linkage and the relationship of all processes and functions within the supply chain through an ERP system, allowing communication between the different activities to take place. A comparison was made between Axapta software attributes and functional modules (section 4.6) and general ERP system modules and business functionality (section 3.8). Table 6.1 below indicates that Microsoft has made Axapta software with various functional modules in its package to meet the general conceptual model of an ERP system, which can be depicted in different activities and processes, standardised and customised to suit the MNE. An ERP system has a large central relational database, which allows the sharing of all the information within the MNE's departments through the execution, integrated functionality and global nature of the system. Other characteristics
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are the multiplatform, multimode manufacturing, electronic data interchange, work automation, database creation, imaging, multilingual and modules as noted by McAdam and McCormack (2001:116), Siriginidi, (2000:379-80), Bhatt (2000:1331), Stirling, Petty and Travis (2002:430) and Clemons and Simon (2001:207) in section 3.4. Thus, Axapta as an ERP system matches the view of Siriginidi (2000:379-80), who stipulate that the general model of an ERP system must be a system's total solution to support multiple divisions or organisations under a corporate banner and seamlessly integrate operating platforms as the corporate database that results in integrated management information. In addition, Axapta also corresponds with the views of Shehab et al., (2004:361) in section 3.6.2, who state that ERP systems are all based on a central, relational database, built on a client/server architecture and consist of various functional modules.
Table 6.1: General ERP system modules compared to Axapta software package modules
|
ERP system modules |
Axapta software modules |
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1. Business planning |
1. Axapta business planning |
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2. Enterprise performance measurement |
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3. Tools, Project I and HR business process management |
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4. Marketing and sales |
4. Marketing automation, Sales and marketing, Sales force automation and Sales management |
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5. Manufacturing |
5. Master planning, Production I and Shop floor control |
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6. Finance and accounting |
6. Financial management and Project II |
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7. Engineering |
7. Product builder |
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8. Human resources |
8. Human resource management I, II and III |
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9. Purchasing |
9. Trade |
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10. Logistics |
10. Logistics and Warehouse management |
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11. After-sales services |
11. Object server, Telemarketing and Questionnaires |
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12. Information technology |
12. Enterprise portal framework, Integrated and Web- enabled business logic, Internet, Commerce gateway and object server |
||
Source: Dykstra and Cornelison, and Olinger (in Sarkis & Sundarraj, 2000:206).
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6.2.3 Summary (sections 6.2.1 and 6.2.2) for hypothesis1 (H1)
With regard to hypothesis 1 (H1), and the questions asked in section 2.5 were whether Axapta software supports strategic management within the MNE and whether Microsoft has positioned Axapta competitively. These issues will assist MNE management in crafting a strategy aimed at establishing a sustained competitive strategy. The following can be stated:
Hypothesis 1 (H1) is not rejected and it can therefore be concluded that Axapta software is an ERP system with an integrated value chain system due to the elements discussed above (in section 6.2.1) and in sections 6.2.5.1-2, 6.2.5.3-4; 6.2.5.5 and 6.2.5.6 below. Axapta modules also suit the strategic factors of an ERP software evaluation as discussed in section 6.2.2. Furthermore, Axapta has various advantageous elements incorporated, as discussed in section 3.5.1, such as Y2K compliance, ease of use, integration of all functions, online communication with suppliers and customers, customisation, improvement of decision-making due to the availability of timely and appropriate information, improved process time and feasibility of administering pro facto control on the operations and Internet interface (Gupta, 2000:115-16). Axapta characteristics (in section 3.5.2) are that it is flexible, comprehensive, with modular and open systems, operating beyond the organisation, capable of simulating the reality and with a multiple environment.
The integrated configuration and the e-commerce functionality as core competence within Axapta software could support the MNE's strategy management due to its cost leadership and differentiation strategy, local hardware requirements, the involvement of maximum use of LANs and minimal use of WANs, the autonomy of each local unit, and headquarter linkage, which occurs primarily through financial reporting structures (section 3.7.3). Axapta software could influence the MNE to integrate the business process activities across its value chain functions, enabling the implementation of all variations of best business practices with a view towards enhancing productivity, operation efficiency, sharing common data and practices across the entire organisation to reduce errors, produce and access information in a real-time environment to facilitate rapid and better decisions and cost reduction (see section 3.6.2).
As mentioned in section 2.5, Turban et al.,
(2004a: 16) discuss the cost leadership and
differentiation strategies. A
cost leadership strategy focuses the organisation's attention
on
manufacturing scale and efficiency that exhibit the capital investment,
process engineering skills,
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intense supervision, design for manufacturing, low-cost distribution systems, tight cost controls, frequent and detailed cost reports, high specialisation and incentives based on quotas for organisation management. Differentiation strategies focus on select product or service attributes that customers deem important and create value by supplying products and/or services with the desired attributes. To achieve success with a differentiation strategy, an organisation must differentiate between product or a service attribute different from those chosen by industry rivals (Porter, 1998:10). Therefore, a differentiation strategy is most likely to produce an alternative and lasting competitive edge when it is based on technical superiority, quality, giving customers more support services and the appeal of more value for money (Thompson & Strickland, 1987:110).
In answer to the question asked at the start of this summary section, Microsoft has indeed positioned Axapta software with cost leadership and differentiation strategies due to the attributes incorporated in the Axapta package (sections 4.2, 4.3, 4.4, 4.5 and 4.6). Axapta is a low-cost leader software among the different ERP system software in the market. It has also differentiated itself from other software in its value proposition (the quality, competitive price and the product and service attributes) and key success factors such as customer value distributors as shown in Walters and Lancaster's value chain below (section 6.2.5.2). These strategic elements constitute the forces that contribute to the MNE's competitive position and that persuade the MNE management to perform the activities differently than the competitors and link those activities in the value chain to craft its strategies for competitive advantage.
However, behind the cost leadership and differentiation strategies, other strategic elements are associated with Axapta software (section 2.5); elements which could support the MNE's strategy to gain competitive advantage. These are:
· The niche strategy: Axapta has a niche market with a quality product, low-cost price, fast, multiple databases and other selected key features.
· The alliance strategy: alliance is achieved through Microsoft SQL server or the Oracle database.
· The innovation strategy: Axapta has key features to meet the current global ERP system requirements and MNE growth.
· The locked-in customer or suppliers strategy: Axapta software links customers and suppliers through integrative modules in its module package.
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· The entry-barriers strategy: Axapta has created barriers to prohibit entry to other MNEs.In practical terms, Microsoft has increased the switching cost for Axapta software and thus created a barrier prohibiting entry to any competitor. This offers the MNEs the opportunity to expand their business and decrease supply costs, increase cost efficiency, build relationships with suppliers and customers within the MNEs and replace and add applications to meet the organisation's growth and changing partners. In this way Axapta attributes could assist MNE management in crafting strategy accordingly.
6.2.4 Axapta's software evaluation
A strategic IT plan is a decision-making process that should be undertaken with care, systematically and within an organisation's understanding of the business context (see section 2.4). Therefore, by applying Axapta software attributes as discussed in chapter 4 through strategic IT plan evaluation, the MNE management could achieve efficiency in the overall management operation in the same context as noted by Peppard (in Corboy, 2002:6), namely by establishing entry barriers which affect the cost of switching operations, differentiating products/services, limiting access to distribution channels, ensuring competitive pricing, decreasing supply cost, increasing cost efficiency, using information as a product and building closer relationships with suppliers and customers.
6.2.5 Axapta's value chain system
In chapter 1 (section 1.1.3) it was pointed out that the value chain model can be used to evaluate relative position, identifying an organisation's distinctive competence(s) and directions for developing competitive advantage. In addition, IS has an impact on an organisation's individual value chain and on how the integration between the value systems of the various contributors or activities could be strengthened, as well as on the cost/value of the product (Axapta), users (MNEs), manufacturer (Microsoft) and customers. The value chain can be used to evaluate a company's process and competencies, and investigate whether IT supports add value, while simultaneously enabling managers to assess the information intensity and role of IT. Thus, the value chain approach was positioned as an evaluative tool to assess Axapta's attributes (as the product) and MNEs (as the user), and Microsoft (as the manufacturer) in order to answer the hypothesis formulated in the introduction and scope of this study.
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In chapter 2, the theory behind the value chain system was analysed relating to the different models. This led the researcher to suggest that most ERP systems, including Axapta software, were built on the value chain concept. A value chain assists management in crafting a strategy (section 2.6). It was concluded that the value chain is based on the linkage, co-ordination and interrelationships among the activities within the system. Thus, Axapta could be assessed by means of the value chain approach to test if its attributes and architecture suit the different value chains in the MNE strategy context. The customised value chain (section 2.9) led to the following findings:
6.2.5.1 Porter's value chain and Axapta's value chain architecture
The primary activities of Porter's value chain are inbound logistics, operations, outbound logistics, marketing, sales and service. The support elements are procurement, technology development, human resource management and infrastructure (see figure 2.1 in section 2.7.1). The key features of Axapta, namely manufacturing, distribution, SCM, project management, financial management, CRM, human resource management, business analysis, global solution and technology, can be compared with the activities of the Porter value chain (section 4.5), as well as Axapta's generic module activities.
Figure 6.1: The module activities of Axapta depicted in the Porter value chain
Secondary activities
Firm infrastructure
(Accounting, Finance, General management, Business analysis and tools)
Technology development
(Product builder, Web-enabled application, ERP, Internet, Commerce gateway, etc.)
Human resources management
(Employee information and registration, recruitment processes, etc.)Procurement
(Supply chain, Electronic information exchange)
Value
Inbound
logisticsOperations
Outbound
logistics(Warehouse management, Logistics, Distribution)
Services
Marketing and
sales
(Master planning,
Shop floor control,
Project I)(Productions, Manufacturing)
(Global solution, Service management, Object serve, Distribution)
(CRM, Sales force marketing, Automation, Customer self-service, websites Sales management)
Primary activities Primary activities
Upstream value activities Downstream value activities
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Source: Adapted from Porter ' value chain in Turban et al., (2004a: 11).
The depiction of Axapta activities shown in brackets in figure 6.1 above proves indeed that Microsoft has incorporated Axapta's value chain system with its different activity processes and modules in Porter's value chain in order to strengthen, support and position the MNE's value chain activities to operate efficiently (see section 4.6).
6.2.5.2 Walters and Lancaster's value chain and Axapta's attributes
The reason for assessing the Axapta software value/cost drivers using Walters and Lancaster's value chain model and components (see figure 2.5 in section 2.7.4) was to analyse Axapta's capability, attributes, key features and functionality modules (see sections 4.2, 4.3, 4.4, 4.5 and 4.6). Microsoft as the manufacturer associated Axapta with the key success factors supporting the MNE supply chain integration and co-ordination in an MNE's operation activities. This maximises the customer and distributor values criteria and minimises customer acquisition costs.
As shown in figure 6.2 below, Axapta software has the value/cost drivers that enhance MNE business processes and integrate the different applications within the supply chain. It co-ordinates and strengthens the different activities in relationships to improve productivity and enable the MNE to operate globally and communicate efficiently. The elements associated with Axapta software are value/cost driver, logistics management, strong integrated company/dealer and supply network, cost management, service (distributors), service (customers), marketing automation, telemarketing, self-service website, Internet, customer and supplier involvement, management knowledge and CRM. Other elements that Axapta software has are global reach and online service, worldwide coverage, technologies applications, time responses and accuracy. Axapta relationship management elements are software support, management and staff development, open communication with providers, suppliers, dealers/company and co-ordination. Thus, Axapta information and relationship management creates the value strategy and positioning, which is linked with the value production and criteria that encompass both Axapta operations and organisation structure management.
In organisation structure management, the Axapta elements that assist MNEs in operating
efficiently and effectively are the control of manufacturing and service, the supply chain, staff
training, the partnerships with customers, suppliers and dealers, the integration of supply, selective101
outsourcing and ongoing customer surveys. In the operations structure and management, both production and logistics play an important role. The Axapta production drives include elements such as maintenance and repair, material requirement planning, the bill of material, capacity planning, job scheduling and sequencing, and IT-driven design and manufacturing. In Axapta logistics drives, the elements are global communication, IRIS information system, and supply chain integration, remote serviceability monitoring and quick response.
Figure 6.2: Axapta cost/value drivers depicted in Walters and Lancaster's value chain
Organisation
structure
management
Customer value criteria
· Brand name
· Competitive prices
· Flexible response (languages, time, culture)
· Reliable, easy to use
· Module selection,
customisation
Customer acquisition costs
· Easy installation
· Switching cost
· Worldwide distribution
· Servicing, consultant
possibility· Product reliability
Customer
value
(Distributor)
· Global reach
· "Online" service
· Worldwide coverage
· Technologies applications
· Time response
· Accuracy
· Software support
· Management and staff development
· Open communication with providers, suppliers, dealers, company
· Provider = company, i.e. long-term continuity
· Co-ordination
Information management
Value
strategy
and
positioning
Relationship
management
Value
production and
criteria
· Control of manufacturing, service, and the supply chain
· Staff training
· Partnerships with customers, suppliers and dealers
· Integrated
supply· Selective outsourcing
· Integrated
supply· Ongoing customer surveys
· Maintenance and
repair· MRPII, BOM
· Capacity planning
· Job scheduling and
sequencing· IT-driven design and manufacturing
· Global communication
· IRIS information
system· Supply chain integration
· Remote serviceability monitoring
· Quick response
Operations structure
and management
Production
Logistics
Value/
cost
drivers
Customer
value
Distributor/customer cost
criteria
· Customer field
support
· Company/distributor/ customer liaison: product and service
Value proposition
(product/service
attributes)
· Module differentiation
· Software customisation
· Flexibility
· Product substitution
· Service/advice
· Transaction convenience
· User capacity maximisation
· Quality, consistent costs and service
· Speed
· Integrated CRM
· Cost leadership
Distributor/customer value
criteria· Internationally recognised brand
· Company support: service and sales
· Worldwide response network
· Product market development
Key success factors
· Vertically integrated
supply chain· Innovation
· Economies of scale
· Strong marketing component modules
· Responsiveness,
speed· Integrated CRM, customer and supplier application strategy
· Cost-effectiveness
· Technical expertise
· Flexibility in manufacturing
· E-business components
· Supply chain and logistics management
· Strong integrated company/dealer and supply network
· Cost management: IT-controlled manufacturing activities and service
· Service (distributors): database and business analyses
· Service (customers): customised software, and low-cost
service
· Marketing automation and telemarketing
· Self-service website, Internet
· Customer and supplier involvement
· Management Knowledge, CRM
"Corporate value"
· Productivity
· Profitability
· Knowledge
· Cash flow
Source: Adapted from Walters and Lancaster (2000:163).
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The value proposition of Axapta (product and service attributes) consists of modules of differentiation, which are incorporated in its package, software customisation capability, flexibility, product substitution, service/advice, transaction convenience, user capacity maximisation, quality, consistent costs and service, speed, integrative and the cost leadership. The Axapta corporate value consists of productivity, profitability, knowledge and cash flow. The key success factors (the vertically integrated supply chain, innovation, economies of scale, strong marketing component modules, responsiveness, speed, integrated CRM, customer and supply application strategy, cost-effectiveness, technical expertise, flexibility in manufacturing, e-business components) are the strategic elements enhancing the MNE's strategy. In the Axapta distributor customer cost criteria, Microsoft as the manufacturer and provider could assist the user (MNE) in customer field support and company/distributor/customer liaison. In addition to the Axapta distributor/customer value criteria, Microsoft is one of the top companies worldwide due to its internationally recognised brand, company support in service and sales, worldwide response network and product market development.
Customer value contributes to the key success factors of Axapta software. Axapta positions itself as one of the top ERP software systems in the market due to both customer value criteria and customer acquisition costs. The customer value criteria element of Axapta include reliance on the brand name, competitive prices, flexible responses (in languages, time and culture), reliability, easy to use, module selection with a customisation option, customer acquisition costs, installation, switching cost and worldwide distribution, servicing, consultant possibility and product reliability.
6.2.5.3 The customer-centric value chain and Axapta software
According to Slywotzky and Morrison (1997:17) (see section 2.7.2), customer-centric thinking is based on the identification of customer priorities and therefore constructs business designs to match them. Axapta software incorporates this customer-centric value chain approach. Microsoft has incorporated into Axapta software architecture features such as CRM, SCM, collaboration functionality and the distribution channel capabilities, shown in table 4.1. The Commerce gateway module promotes supply chain solutions and the Enterprise portal framework module allows customers to interact with some of the functions in the organisation's value chain via other modules (see section 4.6). Thus, Axapta software can allow any MNE to apply a customer-centric approach
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due to the Product builder-Web-based product configuration, which allows configuring complex products to meet the customers' wants and needs.
6.2.5.4 Scott's value chain and Axapta software
The core elements of Scott's value chain as discussed in section 2.7.3 comprise seven areas: operation strategy, marketing sales and service strategy, innovation strategy, financial strategy, human resource strategy, information technology strategy and lobbying position with government. In the Scott value chain, co-ordination across the value chain is essential. To strategise its plans well, an MNE needs compatible ERP software with the various modules to support its objectives. Axapta software has different modules, as discussed in section 4.6, which can strategically enhance the MNE's business management. These modules are Operation strategy, Production, Logistics, Master planning, Shop floor control and HR balanced scorecard. For the marketing sales and service strategy, Axapta has the Trade and Commerce gateway, Marketing automation and Sales management, sales force automation, Sales marketing and Questionnaire modules.
To enhance innovation strategy, Axapta software includes Product builder and the financial management module to enhance the financial strategy. To enhance the human resource strategy within the MNE, Axapta has the modules of Human resource management I, II and III, which can help to gather and structure employee information, automate recruitment processes and employee absence analysis and develop resources to meet strategic goals. To enhance the IT strategy within the organisation, Axapta has incorporated HR business process management, which develops and manages business processes by identifying and monitoring actions, as well as the Tools and Enterprise portal framework modules. The modules are co-ordinated through Web applications, Commerce gateway provides an XML interface to the Microsoft BizTalk server, and the integrated e-commerce applications facilitate the relationships between the MNE's value chain activities across its SBUs. Axapta software configuration indeed meets the requirements of Scott's value chain.
6.2.5.5 Value nets and Axapta software value chain architecture
According to Bovet and Martha (2000:2-6), a value net forms itself around its customers, who are at the centre. It captures their real choices in real time and transmits them digitally to other net participants. It views every customer as unique and allows customers to choose the product/service attributes they value most (see section 2.7.5). With regard to Axapta software, Microsoft has built
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Axapta software architecture and configuration in such a way that an MNE using it can customise the software in any way it wants, and co-ordinate its departments to work in relationships through digital collaborative system mechanisms due to Axapta key features such as speed, multiple databases, scalability, intercompany trade and electronic information exchange (see section 4.5). Thus, Axapta software is a value net (customer-aligned, collaborative and systemic, agile and scalable, fast-flowing and digital).
6.2.5.6 The e-business value chain model and Axapta software architecture
As seen above, the Axapta value chain system meets the requirements of Porter's value chain, its software is a value net and its software attributes and applications as discussed in chapter 4 enable MNEs to extend their value chain to all business partners due to e-business mechanisms. These mechanisms include e-commerce applications, the intranet and extranet, Web-based procurement and the Internet, user portals and supply chain automation. These factors influence the collaboration between organisations through e-marketplaces, in addition to improving SCM and CRM processes. Thus, the Axapta value chain lowers MNE costs and increases value in activity co-ordination and integration due to the adoption of e-commerce strategies. Axapta is therefore a virtual or electronic value chain (see figure 2.7). This strengthens the MNE's value chain system activities and processes due to the Internet-prominent application.
6.2.6 Summary (sections 6.2.3 to 6.2.4) for hypotheses 2, 4 and 5 (H2, H4 and H5)
Hypotheses 2, 4 and 5 (H2, H4 and H5) are not rejected and it can therefore be concluded that Microsoft has made Axapta software with all the modules, functionalities and key features discussed in sections 4.4, 4.5 and 4.6. It meets the requirements necessary for the basic foundation of an ERP system as pointed out in sections 6.2.1 and 6.2.2. In addition, the value chain concept architecture with IT mechanisms integrate the different applications as a net value digital system. This means that MNEs using Axapta can align their strategies with organisation management due to the IT capabilities within their value chain. This strengthens the processes and the relationships within the overall value chain locally and globally.
Axapta assessment through the value chain approach indicates
that Axapta value chain activities as
depicted in figure 6.1 of
section 6.2.3 are similar to Porter's value chain approach
(see section
2.7.1). This indicates that Microsoft has
positioned Axapta software with components and options
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that are well structured to help MNEs to co-operate efficiently with their separate operating sites, and to integrate its various applications and modules. This strengthens MNEs' value chain processes and means that MNEs can act globally and respond quickly to a demand.
As seen above (section 6.2.3), value/cost drivers have been incorporated in Axapta software (section 2.7.4). This positions Axapta as a competitive ERP software tool due to its value proposition, and product and service attributes play a big role in terms of software standardisation, operation effectiveness and quality service promotion in the MNE by integrating and strengthening the different activities in its value chain system. Thus, Microsoft has made Axapta software capable of co-ordinating the raw material from supply to the transformation process, and to delivering the product or service to the customers. Axapta is able to integrate the supply chain and automation, and enhance logistics, which contributes to the effectiveness of the procurement and operation system, the knowledge of partnerships and the know-how of the provider. Microsoft also supports MNEs with training support and technical expertise, and substitution components to meet MNEs' changing and growth needs.
The assessment of Axapta software through Scott's value chain theory discussed in section 2.7.3, along with section 6.2.3 reveals that the software architecture favours the relationship between the MNE's value chain and its SBUs due to its customisation module, which could allow each of the MNE's SBUs to configure its activities.
A value net begins with customers, allowing them to self-design products and builds them to satisfy actual demand. Thus, Axapta software was positioned as a value net due to its digital, fast and flexible system that is aligned with and driven by customer choice mechanisms. In section 6.2.3, it was demonstrated that Axapta software has been modernised as a truly global ERP system due to the incorporation of the Internet applications within it, with the front-end e-business application for third parties. Thus, the Axapta software value chain will position MNEs to operate in the e-business environment. In addition, Axapta's attributes and requirements allow MNEs to incorporate front-end technology in their business operation, create trading communities through portals and take on joint ventures with Web-based technology in expanding the MNEs' value chain, thus benefiting all global users, suppliers, customers and organisation partners.
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6.2.7 Axapta as an IT integrative tool for MNEs' value chain systems
Sections 6.2.1, 6.2.2, 6.2.3 and 6.2.4 revealed that Axapta is strategically IT tool, an integrative ERP software system and a value chain system due to its attributes and modules, which have functional and international architecture and configuration. This enables MNEs to integrate and enhance their supply chain operation more efficiently and effectively, resulting in greater value for the end-customer. Consequently, the tangible and intangible benefits of this value chain integration through Axapta software will be enormous for MNEs, as they allow the real-time synchronisation of supply and demand. The benefits will further be to provide support to an MNE in its efforts to become part of an extended organisation, operating beyond the electronic SCM environment. This has the effect of positioning the MNE to develop collaborative business systems and processes that can span across multiple organisational boundaries (Balls et al., 2000:82-4).
6.2.8 Summary (section 6.2.5) for hypothesis 6 (H6)
The question asked in section 2.11 was "Is Axapta software a value chain system with IT mechanisms, which facilitate the integration and the co-ordination of other ERP system applications?"
Hypothesis 6 (H6) is not rejected and it can therefore be concluded that Axapta software is an ERP system, which encompasses the e-business mechanism, as concluded in section 6.2.5.6. MNEs using Axapta software will streamline business processes in vertical markets as pointed out by Zeng and Pathak (in Ming, Fyun, Shihti & Chiu, 2004:690), and harness and tighten global co-ordination (Adam & Carton, 2003:22).
Because of Axapta's outsourcing application and electronic data interchange, the ability to share information with customers and suppliers and the production of real-time data shared across the organisation, business processes and applications are integrated and automated (Ming et al., 2004:690). Thus, e-business elements are capable of co-ordinating activities within the value chain due to Web-based procurement, Internet and integrated supply chain through B2B e-hubs for supply chain partners and the integration of manufacturing and marketing functions. Indeed, through the e-business mechanism Axapta software facilitates the vertical integration of networks for MNEs' value chains, and through the collaborative mechanism, extends the MNEs' supply chains locally and globally.
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6.3 The findings of the empirical study for hypothesis 3 (H3)
In this section the findings of the empirical study will be reported, as detailed in chapter 5, in accordance with the research problem, primary and some of the secondary objectives and hypotheses. All tables and statistical summaries used in this section are given in full, in appendices F, G and H.
6.3.1 Section A: Demographics
6.3.1.1 Organisation profile
The three organisations involved in the survey have used SAP software for at least 10 but less than 20 years (100.0%), as is evident from table 6.3. The numbers of full-time employees for those three organisations were 701 employees or more. The MNEs consulted operated mainly in more than 20 countries (33.3% each).
Table 6.2: Organisation profile
|
Demographics profile No. of years of SAP software use |
Number |
% |
|
|
At least 10 but less than 20 years |
3 |
100.0 |
|
|
Full-time employees |
|||
|
701 employees or more |
3 |
100.0 |
|
|
Geographical region |
% |
||
|
The organisation geographical sites of operation for the first MNE |
20 |
33.3 |
100.0 |
|
The organisation geographical sites of operation for the second MNE |
25 |
33.3 |
|
|
The organisation geographical sites of operation for the third MNE |
23 |
33.3 |
|
Source: Section A: Questions a3, a4 and a5.
6.3.1.2 CEO/CIO profile
Three out of three questionnaires were returned, which is a response rate of 100% (see table 5.3: the response rate). As is evident from table 6.2, the respondents were CIOs and they have been operating SAP software for ten years or more (100.0%).
108
Table 6.3: CEO/CIO profile
|
Demographics profile Capacity |
Number |
% |
|
|
CEO |
0 |
00.0 |
|
|
CIO |
3 |
100.0 |
|
|
Years of SAP software operation by CIO |
|||
|
10 years or more |
3 |
100.0 |
Source: Section A: Questions a1 and a2.
6.3.1.3 Manager profile
In this study, the total of 61 out of 150 questionnaires were returned, which is a response rate of 46.6% (see table 5.3: the response rate). As is evident from table 6.4, all the respondents involved in this survey were managers from general, senior, middle and junior management level. The managers had been using SAP software at least five but less than ten years (43.7%), at least three but less than five years (28.1%) and at least one year but less than five years (8.9%). Furthermore a few of the managers had used the SAP software for less than one year (5.9%) compared to managers who had used it for at least ten but less than 20 years (13.3%).
The job levels of the managers in this study were senior and middle (9.0% and 8.2%, respectively). General managers and junior managers constituted 3.0% and 25.3%, respectively. The majority of the MNE managers (39.5%) had a post-school diploma or certificate(s), closely followed by 37.3% of the respondents that had a Grade 12 (Matric) and 15.7% with an undergraduate or equivalent degree(s). Some 1.5% had a postgraduate degree(s) and 6.0% had a high school qualification. The minimum age for the MNE respondents varied from 26 to 30 years (32.6%), 31 to 35 years (27.4%), followed by 36 to 40 years (18.5%), 20 to 25 years (13.3%), 41 to 45 years (5.2%), younger than 20 (2.2%) and 46 to 50 years (0.7%).
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Table 6.4: Manager profile
|
Manager profile Number of years of using SAP software |
Number |
% |
|
|
Less than 1 year |
8 |
5.9 |
|
|
At least 1 year but less than 3 years |
12 |
8.9 |
|
|
At least 3 but less than 5 years |
38 |
28.1 |
|
|
At least 5 but less than 10 years |
59 |
43.7 |
|
|
At least 10 but less than 20 years |
18 |
13.3 |
|
|
Total |
135 |
100.0 |
|
|
Current job level |
|||
|
General manager |
4 |
6.5 |
|
|
Senior manager |
12 |
19.6 |
|
|
Middle manager |
11 |
18.2 |
|
|
Junior manager |
34 |
55.7 |
|
|
Total |
61 |
100.0 |
|
|
Age group |
|||
|
Younger than 20 |
3 |
2.2 |
|
|
20 to 25 years |
18 |
13.3 |
|
|
26 to 30 years |
44 |
32.6 |
|
|
31 to 35 years |
37 |
27.4 |
|
|
36 to 40 years |
25 |
18.5 |
|
|
41 to 45 years |
7 |
5.2 |
|
|
46 to 50 years |
1 |
.8 |
|
|
Total |
135 |
100.0 |
|
|
Education |
|||
|
A high school qualification |
8 |
6.0 |
|
|
Grade 12 (Matric) |
50 |
37.3 |
|
|
Post-school diploma(s) or certificate(s) |
53 |
39.5 |
|
|
Undergraduate or equivalent degree(s) |
21 |
15.7 |
|
|
Postgraduate degree(s) |
2 |
2.5 |
|
|
Total |
134 |
100.0 |
Source: Section A: Questions a1, a2, a3 and a4.
When respondents were asked how many full-time employees reported to them, an overwhelming
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79.0% of the users (106) responded that no one report to them, compared to 10.0% of the users (13) who responded that between 1 and 10 employees reported to them, as is evident from figure 6.3. Some 4.0% of the users (6) responded that between 11 and 20 employees reported to them, and 2.0% of the users (3) responded that between 21 and 30 employees reported to them. Only 2.0% of the users (2) responded that between 31 and 40 employees reported to them, compared with 3.0% of the users (4) who responded that more than 40 employees reported to them.
Figure 6.3: Full-time employees reporting
Full-time employees reporting
40%
20%
80%
70%
60%
50%
30%
10%
0%
|
Between 1 |
B etween |
B etween |
B etween |
M ore than |
|
|
0 |
|||||
|
and 10 |
11 and 20 |
21 and 30 |
31 and 40 |
40 |
|
|
79% |
10% |
4% |
2% |
2% |
3% |
79%
10%
4% 2% 2% 3%
Per cent
Source: Section A: Question a5.
6.3.1.4 End-user profile
In this study, the total of 73 out of 220 questionnaires were returned, which is a response rate of 33.18% (see table 5.3: the response rate). As is evident from table 6.5, most end-users had been using SAP software for at least 5 but less than 10 years (43.7%), closely followed by at least 3 but less than 5 years (28.1%), at least 10 but less than 20 years (13.3%) and at least 1 year but less than 3 years (8.9% percent). The job level for the employees in this study was end-user (54.1%) and manager (45.9%).
The majority of the MNEs' end-users (39.5%) were in possession
of a post-school diploma or
certificate(s), closely followed by 37.3% of the
respondents who had a Grade 12 (Matric) and
111
15.7% with an undergraduate or equivalent degree(s). On other hand 6.0% of end-users had some high school qualification and 1.5% had a postgraduate degree. The minimum age of the MNE respondents varied from 26 to 30 years (32.6%) and 31 to 35 years (27.%), closely followed by 36 to 40 years (18.5%), 20 to 25 years (13.3%), 41 to 45 years (5.2%), 46 to 50 years (0.7%) and younger than 20 (2.2%).
Table 6.5: End-user profile
|
Demographics profile Number of years of using SAP software |
Number |
% |
|
|
Less than 1 year |
8 |
5.9 |
|
|
At least 1 year but less than 3 years |
12 |
8.9 |
|
|
At least 3 but less than 5 years |
38 |
28.1 |
|
|
At least 5 but less than 10 years |
59 |
43.7 |
|
|
At least 10 but less than 20 years |
18 |
13.4 |
|
|
Total |
135 |
100.0 |
|
|
Age group |
|||
|
Younger than 20 |
3 |
2.2 |
|
|
20 to 25 years |
18 |
13.3 |
|
|
26 to 30 years |
44 |
32.6 |
|
|
31 to 35 years |
37 |
27.4 |
|
|
36 to 40 years |
25 |
18.5 |
|
|
41 to 45 years |
7 |
5.2 |
|
|
46 to 50 years |
1 |
.8 |
|
|
Total |
135 |
100.0 |
|
|
Education |
|||
|
A high school qualification |
8 |
6.0 |
|
|
Grade 12 (Matric) |
51 |
37.3 |
|
|
Post-school diploma(s) or certificate(s) |
53 |
39.5 |
|
|
Undergraduate or equivalent degree(s) |
21 |
15.7 |
|
|
Post-graduate degree(s) |
2 |
1.5 |
|
|
Total |
134 |
100.0 |
Source: Section A: Questions a1, a2, a3 and a4.
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6.3.2 Section B: Views of CEOs/CIOs on strategic management, SAP and training
6.3.2.1 SAP software and training profile
The CIOs involved in this survey indicated that the SAP computer systems specialists (100.0%) attended training in their organisation and also underwent training on the job with experienced employees (100.0%).
As is evident from table 6.6, the CIOs believed that SAP software was used to a large extent (100.0%) as a strategic management tool within their organisation. They also indicated that SAP software was customised in their organisations.
Table 6.6: Views of CEOs/CIOs on strategic management, SAP and training
|
View of the CIOs Responsible for SAP training within the organisation |
Number |
% |
|
The SAP computer systems specialists |
3 |
100.0 |
|
The training is done on the job with experienced employees |
3 |
100.0 |
|
SAP is used as a strategic management tool |
||
|
Large extent |
3 |
100.0 |
|
The acquisition of the SAP software |
||
|
The software was customised for my organisation |
3 |
100.0 |
Source: Section B: Questions b6, b7 and b8.
In response to question 9, all of the CIOs (100.0%) involved in the survey strongly disagreed that the implementation of the SAP system within their organisation was a waste of money. Furthermore two (67.0%) strongly disagreed that the SAP system hampered internal organisation of processes, and one simply disagreed (33.0%) with this statement.
When asked if it was complex to implement the SAP software, one CIO (33.0%) strongly agreed and two (67.0%) agreed. However, all three (100.0%) strongly agreed that the SAP system effectively integrates different applications and that the multifunctionality of the SAP software is of strategic importance to any organisation.
113
From the overall statements in question 9, it is evident that the issues surrounding the capabilities, characteristics and efficiency of ERP system software rely mainly on the integration status of the different applications, the modular capability and the multifunctionality of the software.
6.3.2.2 Section C: Strategic management, SAP system and value chain
All three CIOs (100.0%) involved in the survey strongly agreed with all five statements formulated in question 10.
From the overall statements in question 10, it is noted that all the CIOs were aware of the role of ERP system software in the value chain, and the importance of a strategic IT
plan in order to succeed in ERP project implementation.
6.3.2.3 Section D: General information
For question 11 (d11.1, d11.2, d11.3, d11.4 and d11.5), all three CIOs (100.0%) involved in the survey strongly agreed that the acquisition of ERP software was valuable to their organisation. Furthermore two (67.0%) strongly agreed that in their organisation the most effective ERP system had been implemented, while one disagreed (33.0%).
Regarding whether the ERP system was effectively customised for their organisation, all CIOs (100.0%) strongly agreed with this statement. Two of the CIOs (67.0%) strongly agreed that employees in their organisation made effective use of the SAP system and one (33.0%) agreed. To the question of whether SAP software users were knowledgeable about the system, two CIOs (67.0%) involved in the survey strongly agreed and one (33.0%) agreed.
From the overall statements in question 11, it can be seen that the most important factor of ERP system software is the ability to customise the system to suit the organisation structure and objectives. Furthermore the three CIOs involved in this survey pointed out that the acquisition of ERP software within their organisation was valuable.
6.3.3 Section B: Views of managers and end-users
In this study, 76.0% of the managers and end-users involved in
this survey rated SAP software as an
excellent IT tool within their
organisation, as indicated in figure 6.4. On other side 17.0% of the
114
participants rated the system as good and 5.0% as moderate. Contrary to this only 2% rated the system as very poor.
Figure 6.4: Views of managers and end-users of SAP software efficiency
17%
Excellent Good Moderate Very poor
5% 2%
SAP software efficiency
76%
Source: Section B: Question b 6.
When asked how the organisation acquired the SAP software, an overwhelming 69.6% (94 users) pointed out that the SAP software had been customised in the organisation, followed by 11.9% (16 users) who pointed out that the vendor had supplied the software with some modifications. On other side 9.6% (13 users) stated that the vendor had supplied the software with little or no modifications, and 8.1% pointed out that the vendor had supplied the software with major modifications (11 users). See table 6.7.
Table 6.7: Views of managers and end-users of the acquisition of SAP software
Vendor supplied the software with some modifications
Vendor supplied the software with little or no modifications
The acquisition of the SAP software
View of the manager and end-user
Number
16
13
11.9
9.6
%
115
|
Vendor supplied the software with major modifications |
12 |
8.9 |
|
|
The software was customised for my organisation |
94 |
69.6 |
|
|
Total |
135 |
100.0 |
Source: Section B: Question b7.
Figures 6.5 and 6.6 reflect the training in SAP software in the organisations surveyed (Responded and non-responded). Most of the 119 users (88.0%) responded, while only 16 users (12.0%) did not responded that training was done on the job with experienced employees. On other side 98 users (73.0%) responded, while only 37 users (27.0%) did not responded that training in SAP software was done by the computer systems specialist in their organisation. In addition, 20 users (15.0%) responded, while 115 users (85.0%) did not respond that independent external clients did training in SAP software. When asked who is responsible for SAP training, 2 users (2.0%) responded, while 133 users (98. 0%) indicated `other' for the provision of training.
Figure 6.5: Responsible for SAP software training (Responded)
Responsible for SAP training
b8.4 Other
b8.3 The training is done on the job with
experienced
employees
b8.2 The SAP computer systems specialists
b8.1 Independent external clients
2%
15%
73%
88%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Per cent
Marked
Source: Section B: Question b8.
116
Figure 6.6: Responsible for SAP software training (Not responded)
120%
100%
40%
20%
80%
60%
0%
b8.1
Independent
external
clients
85%
b8.2 The SAP
computer
systems
specialists
27%
Responsible for SAP training
Statement
b8.3 The training is done on t he job with experienced employees
12%
b8.4 Other
98%
Not marked
Source: Section B: Question b8.
Figure 6.7 below relates to question 9. An overwhelming 68.0 % of the users consulted in this survey strongly agreed that SAP software supported the department's objectives. Only 25.0 % of the users agreed, and 4.0 % were neutral, while 2.0 % strongly disagreed and 1.0 % disagreed. When asked if they were consulted regarding the selection of ERP software used in their organisation, 32.0 % of the users, especially the senior managers, agreed, 23.0 % strongly agreed, follows by 29.0 % of them remained neutral, and 8.0 % strongly disagreed and 8.0 % disagreed. For the end-users 29.0 % agreed, 16.0 % strongly agreed, 27.0 % remained neutral, 15.0 % strongly disagreed and 13.0 % disagreed. The majority of respondents, 55.0 % of them (the users) strongly agreed that the implementation of SAP software added value to their customers, 36.0 % agreed, 7.0 % remained neutral and 2.0 % strongly disagreed. 38.0 % of the respondents strongly agreed that sufficient funds were made available to train employees in SAP software usage, 35.0 % agreed and 19.0 % remained neutral. 7.0 % users strongly disagreed and 1.0 % of the respondent disagreed with this statement.
Respondents were asked about whether a strategic IT plan was followed in their department. An
117
overwhelming 47.0 % of the respondents strongly agreed and 34.0 % agreed, follows by 17.0 % respondents, which remained neutral and 2.0 % strongly disagreed that a strategic plan was followed in their department. In the context of the overall organisation, only 45.0 % of the respondents strongly agreed, 34.0 % of the respondents agreed, 17. 0 % remained neutral and 2.0 % strongly disagreed that a strategic plan was followed in their organisation.
Figure 6.7: Level of agreement
Level of agr eement
The IT strategic plan in our or ganisation inf luences the
extent to which SAP software
can be successf ully implemented
In my or ganisation the IT strategic plan is followed
In my
depar tment, the str ategic plan is followed
Suf f icient f unds were made
available to tr ain employees in SAP software usage
The implementation of
the SAP software adds value for to customer s
|
47% |
33% |
17% 2%01% |
||||
|
45% |
36% |
16% 2%01% |
||||
|
47% |
34% |
17% 2%0 |
||||
|
38% |
35% |
19% |
7%1%0 |
|||
|
54% |
36% |
7% 2%01% |
||||
|
16% |
29% |
27% |
15% |
13% 0 |
||
|
23% |
32% |
29% |
8% 8% 0 |
|||
|
68% |
25% |
4%2%1%0 |
||||
The end-users were consulted r egar ding the selection of the ERP software used in my
organisation
Senior manager s were consulted r egar ding the selection of
the ERP software used in my
organisation
SAP software supports my depar tment's objectives
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Str ongly agr ee Agree Neutral Str ongly disagr ee Disagree No r esponse
Source: Section B: Question b9.
118
For the question whether the strategic IT plan in their organisation influenced the extent to which SAP software could be successfully implemented, an overwhelming 47.0 % of the users strongly agreed, 33.0 % of the users agreed, follows by 17.0 % of the users remained neutral and 2.0 % strongly disagreed.
From figure 6.7 it is evident that issues surrounding the success of ERP system implementation and usage in the MNEs relate to strategy management through the value chain approach. The reason is that an ERP system relies heavily on the factors highlighted below:
· Sufficient funds to train the employees;
· The involvement of the manager and end-users in the selection of ERP software; and
· The application of a strategic IT plan.
6.3.4 Section C: Views of managers and end-users on strategic management, SAP and training Figure 6.8, relates to question c10. An overwhelming 59.0 % of the users consulted in this survey strongly agreed that SAP software facilitates effective decision-making, follows by the 34.0 % agreed, 5.0 % remained neutral and 2.0 % strongly disagreed. When asked if the SAP software being facilitated improved productivity, 61. 0 % of the users strongly agreed, 33.0 % agreed, 4.0 % remained neutral and 2.0 %) strongly disagreed.
The majority of respondents, 47.0 % of the users strongly agreed that they received sufficient training on the usage of SAP software, 30. 0 % agreed, 16.0 % remained neutral, 3.0 % strongly disagreed and 4.0 % disagreed. 46. 0 % of the users strongly agreed that the value-adding activities were communicated to them, 44.0 % agreed, 6.0 % remained neutral, 2.0 % strongly disagreed and 2.0 % disagreed. Furthermore, when asked if their performance had been evaluated against predetermined criteria, only 50.0 % of the users strongly agreed, follows by 44.0 % agreed, and 4.0 % remained neutral and 2.0 % strongly disagreed with the statement.
From figure 6.8 below it is evident that the ERP system facilitates effective decision making and improves productivity. In addition, to operate SAP software, users must have sufficient training.
119
Figure 6.8: General information/ statement
Generalinformation/statement
Disagree
Strongly
disagree50%
46%
Neutral
Agree
5%
2%
59%
34%
|
|
|
|
|
||||||
|
||||||||||
100%
70%
40%
20%
90%
80%
60%
50%
30%
10%
0%
50%
46%
47%
61%
59%
Strongly
agree47%
30%
16%
3%
61%
33%
4%
2%
44%
4%
44%
6%
2%
2%
2%
4%
c10.5Myperformancehasbeenevaluatedagainst predeterminedcriteria.
c10.4Valueaddingactivitiesarecommunicatedto me.
c10.3Ireceivedsufficienttraininginthe usage ofthe SAP software.
c10.2The SAP software facilitatesimproved productivity.
c10.1The SAP software facilitateseffective
decision-making.
c10.2The SAP software facilitates improvedproductivity.
c10.5Myperformance hasbeen evaluatedagainstpredetermined criteria.
c10.4Valueaddingactivitiesare communicatedtome.
c10.3Ireceivedsufficient traininginthe usage ofthe SAP software.
c10.1The SAP software facilitates effective decision-making.
Source: Section C, Question c10.
6.3.5 Results of statistical testing
Cross-tabulations were performed on each of the variables as indicated in tables 6.8, 6.9, 6.10, 6.11 and 6.12 (Refer to appendix F). The chi-square test was used to test the significance of the stated hypothesis and was significant at the 0.05 level. However, in this statistical testing, the Fisher's exact test value in the exact significance (one-sided) column is assumed as the significance (p-value). Therefore if the p-value was lower than 0.05, the hypothesis was rejected. If the p-value was higher than 0.05, then the hypothesis was not rejected. In the cases where the hypothesis was not rejected, the relationship between the variables was investigated further.
120
6.3.5.1 Job level/full-time employees cross-tabulation
To accurately determine if there is a relationship between employees at the job level surveyed and the full-time employees who report to them, a chi-square hypothesis test as listed in table 6.8 is performed.
Ho: There is no relation between job level (a2) and the full-time employee's (a5) (i.e. they are independent).
H1: There is a relation (i.e. they are not independent).
From table 6.8, since the p-value (Fisher's exact test = .000) is less than 0.05, the hypothesis is rejected and it can therefore be concluded that there is no relation between a2 and a5. This indicates that only managers have the chance that full-time employees will report to them.
Table 6.8: Cross-tabulation: a2 with a5
a2: What is your current job level?
a5: How many full-time employees report to you?
|
|
||||||
|
|||||||
|
|
|
|
|
|||
|
|
|
|||||
|
|
|
|
||||
|
|
|
|
||||
|
|
|
|
||||
|
|
|
|||||
Chi-square tests
|
|
|
|
|
|
||
|
|
||||||
121
6.3.5.2 Departmental objectives/strategic IT plan cross-tabulation
To accurately determine a relationship between the support of SAP software of departmental objectives and the extent to which a strategic IT plan influences successful SAP software implementation, a chi-square hypothesis test as listed in table 6.9 is performed.
Ho: There is no relation between SAP software supporting departmental objectives (b9.1) and the extent to which a strategic IT plan influences successful SAP software implementation (b9.8) (i.e. they are independent).
H1: There is a relation (i.e. they are not independent).
From table 6.9, the p-value (Fisher's exact test = .013) is less than 0.05, so the hypothesis is rejected and it can therefore be concluded that there is no relation between b9.1 and b9.8.
Table 6.9: Cross-tabulation: b9.1 with b9.8
b9.1 SAP software supports my department's objectives.
b9.8 The strategic IT plan in our organisation influences the extent to which SAP software can be successfully implemented.
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6.3.5.3 SAP software selection cross-tabulation
To accurately determine if there is a relationship between SAP software's support of departmental objectives (b9.1) and whether the senior managers were consulted regarding the selection of ERP software used in their organisation (b9.2), a chi-square hypothesis test as listed in table 6.10 is performed.
Ho: There is no relation between SAP software's support of departmental objectives and whether senior managers were consulted regarding the selection of ERP software used in their organisation (i.e. they are independent).
H1: There is a relation (i.e. they are not independent).
From table 6.10, the p-value (Fisher's exact test = .008) is less than 0.05, so the hypothesis is rejected and it can therefore be concluded that there is no relation between b9.1 and b9.2.
Table 6.10: Cross-tabulation: b9.1 with b9.2
b9.1 SAP software supports my department's objectives.
b9.2 Senior managers were consulted regarding the selection of the ERP software used in my organisation.
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6.3.5.4 Awareness of training cross-tabulation
To accurately determine if there is a relationship between whether sufficient funds were made available to train employees in SAP software usage (b9.5) and whether they received sufficient training in the usage of SAP software (c10.3), a chi-square hypothesis test as listed in table 6.11 is performed.
Ho: There is no relation between whether sufficient funds were made available to train employees in SAP software usage and whether they received sufficient training in the usage of the SAP software (i.e. they are independent).
H1: There is a relation (i.e. they are not independent).
From table 6.11, the p-value (Fisher's exact test = .000) is less than 0.05, so the hypothesis is rejected and it can therefore be concluded that there is no relation between b9.5 and c10.3.
Table 6.11: Cross-tabulation b9.5 with c10.3
b9.5 Sufficient funds were made available to train employees in SAP software usage. c10.3 I received sufficient training in the usage of the SAP software.
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6.3.5.5 Training/responsible for the training cross-tabulation
To accurately determine if there is a relationship between whether users received sufficient training in the usage of SAP software (c10.3) and whether the training was done on the job with experienced employees (b8.3), a chi-square hypothesis test as listed in table 6.12 is performed.
Ho: There is no relation between whether users received sufficient training in the usage of SAP software and whether the training was done on the job with experienced employees (i.e. they are independent).
H1: There is a relation (i.e. they are not independent).
From table 6.12, the p-value (Fisher's exact test = .495) is more than 0.05, so the hypothesis is not rejected and it can therefore be concluded that there is relation between c10.3 and b8.3. This indicates that the efficient use of SAP software in any organisation depends on employee training.
Table 6.12: Cross-tabulation: c10.3 with b8.3
c10.3 I received sufficient training in the usage of the SAP software. b8.3 The training is done on the job with experienced employees.
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In this empirical section, the aim was to test hypothesis H3, which stipulated that users, managers and CEOs/CIOs were positive about ERP system matters relating to strategic management and the value chain concept. Regarding the outcome of the self-administered survey conducted, given in sections 6.3.1, 6.3.2, 6.3.3 and 6.3.4 involving the CEOs/CIOs, the managers and the end-users, it can be concluded that hypothesis 3 (H3) is not rejected. Therefore the employers and employees are knowledgeable about, trained in and aware of the ERP system in their organisation.
6.4 Conclusion
In this chapter the qualitative study was reported on. Responses from those surveyed in this study were organised by demographic profile of the participants (CEOs/CIOs, managers and end-users), the organisation's (MNE's) profile, and the various issues relating to the value chain integration through the ERP system, IT strategic plan and strategy management. Frequency distributions were analysed, interpreted and graphically represented where appropriate. The results of the statistical tests, which included significance and association testing, were reported.
In chapter 7 the conclusions and recommendations of this study will be discussed.
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7.1 Introduction
While the previous chapter described both the qualitative and empirical results of this study, this chapter will focus on the main contribution of this descriptive study. Final conclusions are drawn on the factors of an ERP software influencing the MNEs' value chain system, as well as general recommendations for future research.
The overall goal of this study was to assess ERP systems through the value chain approach in order to link both concepts technically and strategically, and to equip any MNE or corporation with the necessary knowledge and skills about an ERP system before its implementation. The different objectives of this study were achieved qualitatively, through the literature review of ERP system theory in relation to the value chain approach. This allowed the researcher to assess Axapta software attributes discussed in the case study according to the value chain approach and ERP system. The issues highlighted in the study were supply chain factors which facilitate the evaluation of ERP software and the positioning of the value chain approach as an integrative tool to assess ERP software architecture and configuration. It was found that ERP systems and the value chain approach strengthen and integrate the business processes of MNEs.
Through this study the value chain system and ERP systems were linked. This empowered the researcher with the knowledge to compile a methodical approach of ERP system requirements in order to achieve objective 5 of this study, as discussed later in this chapter. The value of this study is that it will assist any organisations that are migrating towards ERP system software with a technical assessment during the selection and evaluation phases of ERP systems. This methodical approach will allow organisations to obtain compatible and suitable ERP system software that relates to their objectives, structure and type before the ERP system life cycle (adoption decision, acquisition, implementation, use and maintenance, evolution and retirement) starts, as discussed in section 3.9 by Esteves and Pastor (in Bernroider & Tang, 2003:5). The empirical study was conducted to test the knowledge of the employers and employees of ERP software, strategy and the value chain. The conclusion reached relating to the self-administered survey is that the employees and employers of the organisations in this study were aware of ERP systems due to education programmes and sufficient funding being made available for the training.
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7.2 Achievement of the objectives
7.2.1 Primary objective
The primary objective was to determine the extent to which ERP software could facilitate integration in the MNE value chain process. This was achieved through the assessment of an ERP system, i.e. the Axapta software value chain system as an integrative IT tool relating to the value chain approaches in accordance with ERP system theory. The elements that were investigated as part of the primary objective include:
· An ERP system that relates to the value chain system architecture and configuration;
· Integration, multifunctionality and modular capability;
· E-business components; and
· ERP system characteristics and database server.
From the findings, it can be concluded that all the elements mentioned above are very important in order for ERP system software to integrate an MNE's value chain. Thus, ERP systems, i.e. Axapta software, conform to the different value chain approaches discussed in sections 6.2.5.1 to 6.2.5.6. Moreover, in accordance with the overall approach of the value chain discussed in chapter 2, the various elements of ERP system theory discussed in chapter 3 were linked under sections 3.5.1, 3.5.2, 3.6.2 and 3.7.1. This constitutes the basis of the outcome of this study as shown in sections 6.2.1 and 6.2.5, and answers the hypotheses 1, 4, 5 and 6 (H1, H4, H5 and H6) of this study.
In light of the above, MNEs considering implementing an ERP system should seriously consider the statements below:
· ERP software architecture and configuration selected for the adoption must be built on the MNE's strategy, thus allowing the organisation to align its strategy with the ERP system.
· The ERP system selected must be multifunctional, flexible, open and modular.
· The ERP system selected must be a value chain system, which encompasses within it the generic modules and activities of the different value chain approaches. These could be tailored, customised and parameterised to suit the organisation structure, objectives, type and value chain.
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· The ERP system selected must have a programming language and client/server architecture.· The ERP system adopted must be incorporated with the e-business components, such as the Internet, to allow the organisation to collaborate and connect with customers, vendors, partners, or employees and SBUs via the Web, Windows, WAP, Wireless, VAN, LAN and XML.
· The ERP system selected must have multiple databases, it must be an all-in-one product and have foreign language and foreign currency capabilities. These could position an organisation to operate in any of the geographical areas.
· The ERP system selected must include an outsourcing application and electronic data interchange.
7.2.2 Secondary objectives
The secondary objectives of this study cover the technical part of this research, i.e. positioning the value chain approach as a strategic IT tool for ERP software assessment. In addition to the strategic supply chain, factors need to be considered in the evaluation of an ERP system that relate to the value chain's functional activities before adoption and acquisition. To achieve the secondary objectives of this study, the use of a strategic IT plan was discussed along with the value chain approach in chapter 2, linking ERP system theory in chapter 3 with the comparison of Axapta software attributes in a case study in chapter 4.
The elements that were investigated as part of the secondary objectives 1, 2, 4 and 5 included:
· The use of a strategic IT plan;
· The cost and differentiation, niche and other strategy elements of ERP software;
· The strategic capabilities of ERP software as a strategic IT tool; and
· The value chain approach as a strategic assessment tool.
From the findings, it can be concluded that all the elements mentioned above are very important in order to assess ERP software strategically and technically. This was tested based on Axapta software attributes in accordance with the theory given in chapters 2 and 3. The findings were given in sections 6.2.1 and 6.2.2, and 6.2.3, and answers hypotheses 2 and 4 (H2 and H4) which showed that Axapta is a low-cost software leader in the market due to its cost-effective leadership,
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differentiation, niche, alliance, innovation, the lock-in of customers or suppliers and the entry-barriers strategy as discussed by Turban et al., (2004a: 16) and Thompson and Strickland (1987:110) in section 2.5. The importance of using a strategic IT plan was discussed in section 2.4 according to Bakehouse and Doyle (2002:1) and Peppard (in Corboy, 2001:6). MNEs could use IT or ERP system capabilities, which would have an enormous impact on them in the areas of transactional issues, geographical issues, automation, analytical, informational and sequential matters, knowledge management and disintermediation to gain competitive advantage (Siriginidi, 2000:376, in section 2.3).
IT plays a vital role in improving co-ordination, collaboration and information sharing, both inside and across organisational boundaries. It allows more effective management of task interdependence and facilitates the creation of integrated management information, while simultaneously offering new possibilities for MNEs. This concurs with the different theories presented in sections 6.2.1 and 6.2.5 in accordance with the overall approach discussed in chapters 2 and 3. Thus, in view of the above elements, the researcher recommends that any MNE using an ERP system implement a strategic IT plan. MNEs should also view the value chain approach as an evaluative tool to assess the activities that will persuade them to acquire suitable ERP software.
The empirical study was conducted to test the knowledge of employers and employees surveyed in this study of ERP software, strategy management and the value chain approach relating to the objective 3, and answers the hypothesis 3 (H3) of this study. Therefore the elements that were investigated as part of this study included:
· Demographic profiles of the participants;
· The view of participants on the training in ERP software within their organisation;
· The view of participants on value chain integration through an ERP system;
· The use of a strategic IT plan; and
· The beneficial impact of ERP implementation on users, customers and supply partners.
From the findings in sections 6.3.1.2, 3.4 and 6.3.5, it can be concluded that the employees and
employers involved in this empirical study were well trained in using ERP software and had more130
knowledge about the system. Therefore theThe most important factor emphasised in this empirical section was the customisation of an ERP system, i.e. SAP software, by most organisations that participated in the survey.
7.3 The value and the contribution of the study
The fifth objective of this study was to produce a model that would facilitate any MNE to assess ERP software technically and strategically before the implementation. Therefore the main contribution and the value of this study obviously is to assist MNEs or any other organisation in the process of migrating business systems towards ERP with a model called a methodical approach. This approach allows the organisation management to acquire fit and compatible ERP software, which will enable them to meet their objectives and growth targets.
7.4 The methodical approach for ERP software assessment
As figure 7.1 indicates, an MNE in the process of migrating its business systems toward ERP implementation it has to first formulate its business objectives, decomposing its value chain modular activities in order to assess the value chain architecture and configuration. Thereafter, MNE management have to ask what the motives of the organisation are in investing in an ERP system implementation project. They need to ask whether there is an opportunity to expand the business due to organisation growth and whether there is a competitive challenge to the organisation or simply problems within the organisation's business systems.
The second step will be for the organisation to compile a benchmark list of the different ERP software on the market. The third step involves two processes: Firstly, to assess and display the organisation's value chain modular or functional activities and secondly, to assess and display the value chain of the ERP software selected through its modular or functional activities. This allows the MNE to compare its value chain activities with the pre-adopted ERP software functional and modular activities. Once these have been matched, the next step will be to evaluate the selected ERP software through the supply chain factors, ERP characteristics and global requirements. The assessment will result in the MNE adopting suitable and compatible ERP software with a value chain system architecture and configuration that suits the organisation's value chain activities, architecture and configuration, thus positioning the organisation to customise and meet its objectives and growth targets.
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Assess and decompose the organisation's
value chain modular activities
Figure 7.1: The methodical approach
Step 1
Set the business objectives
Organisation
Assess and display the value chain of
the ER!' software through its modular
and functional activitiesAssess and display the organisation's
value chain modular or functional
activitiesAre motives, opportunities, competitive challenges, or problems behind the reason for the
organisation implementing an ER!' project?Set a benchmark list of the ER!' software selected
Adopt the ER!' system if its software value chain functional and modular activities,
architecture, and configuration are compatible with and suitable for the
organisation's value chain functional and modular activities, architecture, and
configurationIf the answer is Yes
Compare the organisation's value
chain activities to the selected ER!'
software's functional and modular
activitiesEvaluate the selected ER!'
software through the
supply chain factorsStep 2
Step 3
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Source: Compiled by the researcher of this study.
Consequently the ERP software adopted will have the following influence on the organisation's value chain:
· The integration and strengthening of the different applications, activities and business processes in the value chain system (total enterprise integration);
· The availability of the necessary information and data across the entire organisation's systems;
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· The relationships and co-operation of the users
across the different sites (locally and
internationally) of the organisation, the partners, the supplies and the customers; and
· Accurate information, quick accesses to information,
business analysis, and product
development and service efficiency.
7.5 Conclusion and recommendation
This study highlights the importance of the value chain integration through ERP software as a strategic tool that will support the MNE to extend its value chain globally and operate efficiently and effectively for competitive advantage. Furthermore it highlights the use of ERP software as a tool to support decision-making. In this regard, ERP is considered as a powerful competitive weapon, especially when its adoption is aligned with MNE strategy. Consequently, organisations using ERP systems must have a strategic IT plan in order to derive the benefits from it.
The attributes, specifications, architecture and configuration of an ERP system, i.e. Axapta, were evaluated through the strategic, technical planning of the value chain models. They were compared to the general theory on ERP systems, especially the supply chain factors for ERP software evaluation. This exercise proved that Axapta solution software is a strategic IT tool, with an e-business mechanism capable of integrating the different applications in the organisation's value chain in order to operate globally. Thus, Axapta solution software has been positioned as a value chain system and modern ERP system software.
Based on the discussion of the different issues associated with the implementation of an ERP system in this study, it is advisable and recommendable to any MNE that wants to implement ERP software to seriously consider the critical success factors affecting the implementation process as discussed in section 3.9.1. The two strategic approaches of ERP implementation, namely the re-engineering of the business process to accommodate functionality, and the customisation of the software to fit the existing process as discussed in section 3.9.2 must be also considered. It is also recommended that MNEs apply the methodical approach of this study as discussed in section 7.2.
7.6 Areas for future research
Finally, some possible issues to be studied in the future are highlighted next.
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It would be biased for this study to conclude that Axapta software is generally really good ERP software for all MNEs without testing and applying it in an MNE practically. In this study, the researcher assessed Axapta software value chain modular activities in comparison with the different value chain approaches, along with ERP system theory. The findings show that technically Axapta's architecture and configuration fundamentally meet the requirements of the value chain system and those of global ERP system characteristics, architecture and configuration. Therefore Axapta is a value chain system and truly ERP software. However, the question to be asked is whether ERP software can integrate a multinational enterprise's value chain. More research is needed to answer the above question. In this context the methodical approach formulated by the researcher in this study could be applied as a tool to assess the requirements of a selected ERP software value chain together with the organisation's value chain in order to test both compatibility and suitability.
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141
APPENDIX A, B, C, D, E, F, G and H:Appendix A: Self-administered survey for CEOs/ CIOs |
142
This MBA Dissertation conducted at the University of Johannesburg attempts to evaluate the perceived technical and strategic influence of an ERP system on the value chain process of multinational enterprises (MNEs).
Please complete each of the following questions by ticking the box corresponding to your answer or by filling in your response. The questionnaire will be treated as strictly confidential at all times. Neither your name nor that of your organisation will in any way be connected to the findings of this study. We only wish to establish your views on various issues on the strategy part of IT, the value chain concept, and implementation of the ERP System i.e. SAP software under utilisation within your organisation.
SECTION A: Demographics
Please answer each question by crossing (X) the number corresponding to your response
1. Specify in which capacity are you completing this questionnaire.
|
CEO |
CIO |
|
1 |
2 |
2. How long have you been operating the SAP software?
|
Less than 1 year |
1 |
|
|
At least 1 year, but less than 3 years |
2 |
|
|
At least 3 years, but less than 5 years |
3 |
|
|
At least 5 years, but less than 10 years |
4 |
|
|
10 years or more |
5 |
3. How long has your organisation used the SAP Software?
|
Less than One year |
At least one year but less than 3 years |
At least three but less than 5 years |
At least five but less than 10 years |
At least ten but less than 20 years |
Twenty years or more |
|
1 |
2 |
3 |
4 |
5 |
6 |
4. How many full-time employees are in your organisation?
|
1 to 200 employees |
201 to 700 employees |
701 employees or more |
|
1 |
2 |
3 |
5. In how many countries, excluding South Africa, is your organisation operating? Please enter the number.
143
SECTION B: Your view on the SAP Software and Training
6. Who is/was responsible for SAP training in your organisation? Please mark all applicable
|
|
|
|
||
7. To what extent, do you believe the SAP Software is used as a strategic management tool in your organisation?
4
No Extent
|
|
|
|
|
|
8. How did your organisation acquire the SAP Software?
The software was customised for my organisation
Vendor supplied the software with some modifications
|
|
|
|
|
|
|
9. Please indicate to what extent you agree/ disagree with the following statements. 1 = Strongly Agree (SA), 2 = Agree (A), 3 = Neutral (N), 4 = Strong disagree (SD), 5 =Disagree (D).
|
IN MY |
ORGANISATION |
SA |
A |
N |
SD |
D |
|
The implementation of the SAP system was a waste of money. |
1 |
2 |
3 |
4 |
5 |
|
|
The SAP System hampers internal organisation of processes. |
1 |
2 |
3 |
4 |
5 |
|
|
It is a complex to implement the SAP System software. |
1 |
2 |
3 |
4 |
5 |
|
|
SAP System effectively integrates different applications. |
1 |
2 |
3 |
4 |
5 |
|
|
The multifunctionality of the SAP software is of strategic importance to my organisation. |
1 |
2 |
3 |
4 |
5 |
|
|
The modular capability of SAP software is of strategic importance to my organisation. |
1 |
2 |
3 |
4 |
5 |
144
SECTION C: Strategic management, SAP system and value chain
10. Please indicate to what extent you agree/ disagree with the following statements. 1 = Strongly Agree (SA), 2 = Agree (A), 3 = Neutral (N), 4 = Strong disagree (SD), 5 =Disagree (D).
|
|
|
|
|
|
|||
|
|
|
|
|
|
|||
|
|
|
|
|
|
|||
|
|
|
|
|
|
|||
|
|
|
|
|
|
|||
|
|
|
|
|
|
|||
SECTION D: General information
11. Please indicate to what extent you agree/ disagree with the following statements. 1 = Strongly Agree (SA), 2 = Agree (A), 3 = Neutral (N), 4 = Strong disagree (SD), 5 =Disagree (D).
|
IN MY |
ORGANISATION The acquisition of ERP Software is valuable to my |
SA |
A |
N |
SD |
D |
|
organisation. |
1 |
2 |
3 |
4 |
5 |
|
|
In my organisation the most effective ERP System was implemented. |
1 |
2 |
3 |
4 |
5 |
|
|
The ERP System was effectively customised for my |
||||||
|
organisation. |
1 |
2 |
3 |
4 |
5 |
|
|
Employees in my organisation make effective use of the |
||||||
|
SAP System. |
1 |
2 |
3 |
4 |
5 |
|
|
SAP Software users are knowledgeable about the system. |
1 |
2 |
3 |
4 |
5 |
Your participation in this research is appreciated.
145
This MBA Dissertation conducted at the University of Johannesburg attempts to evaluate the perceived technical and strategic influence of an ERP system on the value chain process of multinational enterprises (MNEs).
Please complete each of the following questions by ticking the box corresponding to your answer or by filling in your response. The questionnaire will be treated as strictly confidential at all times. Neither your name nor that of your organisation will in any way be connected to the findings of this study. We only wish to establish your views on various issues on the strategic management and operational, and the usage and training, awareness of the ERP System i.e. SAP software under utilisation within your organisation.
SECTION A: Demographics
Please answer each question by crossing (X) the number corresponding to your response
1. How long have you been using the SAP Software?
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
2. What is your current job level?
3
General Manager
|
Senior Manager |
Middle Manager |
Junior Manager |
End user |
|
|
1 |
2 |
4 |
5 |
3. What is your age group?
|
Younger than 20 |
1 |
|
|
20 to 25 years |
2 |
|
|
26 to 30 years |
3 |
|
|
31 to 35 years |
4 |
|
|
36 to 40 years |
5 |
|
|
41 to 45 years |
6 |
|
|
46 to 50 years |
7 |
|
|
Older than 50 years |
8 |
146
4. What is your highest level of education?
|
No formal schooling |
1 |
|
|
Some Primary School |
2 |
|
|
Some High School |
3 |
|
|
Grade 12 (Matric) |
4 |
|
|
Post School Diploma (s) or certificate (s) |
5 |
|
|
Undergraduate or equivalent degree (s) |
6 |
|
|
Post Graduate Degree (s) |
7 |
5. How many full time employees report to you?
|
0 |
Between |
Between 11 and 20 |
Between 21 to 30 |
Between 31 to 40 |
More than 40 |
|
0 |
1 |
2 |
3 |
4 |
5 |
SECTION B: Strategic management, SAP operational, and training
6. How would you rate your SAP Software efficiency?
|
Excellent |
1 |
|
|
Good |
2 |
|
|
Moderate |
3 |
|
|
Poor |
4 |
|
|
Very Poor |
5 |
7. How did your organisation acquire the SAP Software?
|
Vendor supplied the software with some modifications |
Vendor supplied the software with little or no modifications |
Vendor supplied the software with major modifications |
The software was customised for my organisation |
|
1 |
2 |
3 |
4 |
8. Who is/was responsible for SAP training in your organisation? Please mark all applicable
|
Independent external consultants |
The SAP computer |
The training is done on-the job with experienced employees |
Other. (specify) |
9. Please indicate your level of agreement with each of following statements using the scale as indicated?
1 = Strongly Agree (SA), 2 = Agree (A), 3 = Neutral (N), 4 = Strong disagree (SD), 5 =Disagree (D).
147
|
IN MY ORGANISATION SAP Software supports my department's objectives. |
SA 1 |
A 2 |
N 3 |
SD 4 |
D 5 |
|
|
Senior managers were consulted regarding the selection of the ERP Software used in my organisation. |
1 |
2 |
3 |
4 |
5 |
|
|
The end users were consulted regarding the selection of the ERP Software used in your organisation. |
1 |
2 |
3 |
4 |
5 |
|
|
The implementation of the SAP Software adds value for our customers. |
1 |
2 |
3 |
4 |
5 |
|
|
Sufficient funds were made available to train employees in SAP Software usage. |
1 |
2 |
3 |
4 |
5 |
|
|
In my department, the strategic plan is followed. |
1 |
2 |
3 |
4 |
5 |
|
|
In my organisation the IT Strategic plan is followed. |
1 |
2 |
3 |
4 |
5 |
|
|
The IT Strategy plan in our organisation influences the extent to which SAP Software can be successfully implemented. |
1 |
2 |
3 |
4 |
5 |
SECTION C: General information
10. Please indicate your level of agreement with each of the following statements using the scale as indicated?
1 = Strongly Agree (SA), 2 = Agree (A), 3 = Neutral (N), 4 = Strong disagree (SD), 5 =Disagree (D).
|
IN MY ORGANISATION |
SA |
A |
N |
SD |
D |
|
|
The SAP Software facilitates effective decision-making. |
1 |
2 |
3 |
4 |
5 |
|
|
The SAP Software facilitates improved productivity. |
1 |
2 |
3 |
4 |
5 |
|
|
I received sufficient training on the usage of the SAP |
1 |
2 |
3 |
4 |
5 |
|
|
Software. |
||||||
|
Value adding activities are communicated to me. |
1 |
2 |
3 |
4 |
5 |
|
|
My performance has been evaluated against predetermined criteria. |
1 |
2 |
3 |
4 |
5 |
Your participation in this research is appreciated.
148
APPENDIX C: COVER LETTER FOR QUESTIONNAIRES TO MNEs
From: Folo - Ralph Bosombo
Student Number: 809505439
P.0 Box: 1887
Rosettenville
Johannesburg, 2130
To MNE
Johannesburg
South Africa
06 June 2006
Application for permission to conduct a self-administered survey in your organisation
To Whom It May Concern:
I am writing to you to solicit permission to conduct a self-administered survey in your organisation concerning my research dissertation on ERP system I.e. SAP software as part of my MBA dissertation at the University of Johannesburg entitled " The influence of an ERP system on the value chain process of multinational enterprises (MNEs) ".
Primary, the research involved a qualitative study, which focused on an analysis of ERP systems based on a literature study. It is the objective of the empirical study to assess the general view of the employees in selected companies about the ERP system i.e. SAP software.
You have been selected as a multinational enterprise (MNE) operating in the Gauteng province through the preliminary telephonic interview conducted by the researcher, during which it was confirmed that your organisation used SAP software. Your participation in this study is critical in order to determine the influence of ERP software such as SAP on the value chain process of MNEs.
Your response to the questionnaire will be treated as strictly confidential at all times. Neither your name nor that of your organisation will in any way be connected to the findings of this study.
I look forward to hear from you and appreciate your willingness to participate in this research. Please write, or e-mail me, should you have any questions. My e-mail address is [visionkisang.zaco @ webmail.co.za]
Yours sincerely H.B Klopper
Folo - Ralph Bosombo Study supervisor
149
APPENDIX D: LIST OF ORGANISATIONS CONSULTED IN PRELIMINARY
TELEPHONIC SURVEY
Table1: List of organisations consulted in preliminary telephonic survey.
|
Organisation |
Telephone |
Email address |
Category |
Size |
Software |
|
|
Anchor Yeast |
Multinational |
Medium |
ERP (other) |
|||
|
KMPG |
Multinational |
Large |
Oracle |
|||
|
Ingwe |
Multinational |
Medium |
SAP software |
|||
|
ABSA |
Local |
Large |
SAP & Oracle |
|||
|
Standard Bank |
Local, Mult |
Medium |
SAP & Oracle |
|||
|
Pick'n Pay |
Local |
Large |
(Migrating) SAP |
in |
||
|
Toyota SA |
011 444 6182 |
Multinational |
Medium |
SAP |
||
|
Sasol Ltd |
Local, Mult |
Medium |
SAP |
|||
|
Philips |
Multinational |
Medium |
SAP |
|||
|
Oracle Corpor |
Multinational |
Medium |
Oracle |
|||
|
Nordberg Ltd |
Multinational |
Large |
ERP (other) |
|||
|
KSB Pumps SA |
Multinational |
Medium |
SAP |
|||
|
JD Edwards SA |
Multinational |
Medium |
JD Edward |
|||
|
Eskom SA Ltd |
Local |
Large |
SAP |
|||
|
Dell Computer |
Multinational |
Large |
Oracle |
|||
|
ABI Ltd |
Multinational |
Medium |
JD Edward, SAP |
|||
|
SAB Miller |
Multinational |
Medium |
JD Edward, SAP |
|||
|
Adcock-Ingram |
Multinational |
Medium |
JD Edward, SAP |
150
APPENDIX E: LIST OF ORGANISATIONS INCLUDED IN THE SELF-ADMINISTERED
SURVEYS
Table1: List of organisations included in the self-administered surveys.
|
Organisations |
Telephone |
Email address |
Category |
Size |
Software |
||
|
Multinational |
Medium |
SAP software |
||||
|
Local, Mult |
Large |
SAP & Oracle |
||||
|
Local, Mult |
Medium |
SAP & Oracle |
||||
|
011 444 6182 |
Multinational |
Medium |
SAP |
|||
|
Local, Mult |
Medium |
SAP |
||||
|
Multinational |
Medium |
SAP |
||||
|
Multinational |
Medium |
SAP |
||||
|
|
|
|
|
|
|
|
|
Multinational |
Medium |
JD Edward, SAP |
|||||
|
Multinational |
Medium |
JD Edward, SAP |
||||
|
Multinational |
Medium |
JD Edward, SAP |
||||
151
APPENDIX F: STATISTICAL ANALYSIS
a2
|
Frequency |
Percent |
||
|
Valid |
Manager |
61 |
45.2 |
|
End user |
73 |
54.1 |
|
|
Total |
134 |
99.3 |
|
|
Missing |
System |
1 |
.7 |
|
Total |
135 |
100.0 |
|
a5
|
Frequency |
Percent |
||
|
Valid |
0 |
106 |
78.5 |
|
More than 0 |
28 |
20.7 |
|
|
Total |
134 |
99.3 |
|
|
Missing |
System |
1 |
.7 |
|
Total |
135 |
100.0 |
|
Please indicate your level of agreement with each of the following statements
|
Agree |
Neutral |
Disagree |
Total |
||
|
b9.1 SAP Software supports my department's objectives. |
Count |
126 |
6 |
3 |
135 |
|
% |
93.3% |
4.4% |
2.2% |
100.0% |
|
|
b9.2 Senior managers were consulted regarding the selection of the ERP Software used in my organisation. |
Count |
74 |
39 |
22 |
135 |
|
% |
54.8% |
28.9% |
16.3% |
100.0% |
|
|
b9.3 The end users were consulted regarding the selection of the ERP Software used in your organisation. |
Count |
61 |
36 |
38 |
135 |
|
% |
45.2% |
26.7% |
28.1% |
100.0% |
|
|
b9.4 The implementation of the SAP Software adds value for our customers. |
Count |
123 |
9 |
2 |
134 |
|
% |
91.8% |
6.7% |
1.5% |
100.0% |
|
|
b9.5 Sufficient funds were made available to train employees in SAP Software usage. |
Count |
99 |
25 |
11 |
135 |
|
% |
73.3% |
18.5% |
8.1% |
100.0% |
|
|
b9.6 In my department, the strategic plan is followed. |
Count |
110 |
23 |
2 |
135 |
|
% |
81.5% |
17.0% |
1.5% |
100.0% |
|
|
b9.7 In my organisation the IT Strategic plan is followed. |
Count |
110 |
22 |
3 |
135 |
|
% |
81.5% |
16.3% |
2.2% |
100.0% |
|
|
b9.8 The IT Strategic plan in our |
Count |
109 |
23 |
3 |
135 |
|
% |
80.7% |
17.0% |
2.2% |
100.0% |
152
Please indicate your level of agreement with each of the following statements
|
Agree |
Neutral |
Disagree |
Total |
||
|
c10.1 The SAP Software facilitates effective decision-making. |
Count |
126 |
7 |
2 |
135 |
|
% |
93.3% |
5.2% |
1.5% |
100.0% |
|
|
c10.2 The SAP Software facilitates improved productivity. |
Count |
128 |
5 |
2 |
135 |
|
% |
94.8% |
3.7% |
1.5% |
100.0% |
|
|
c10.3 I received sufficient training on the usage of the SAP Software. |
Count |
105 |
21 |
9 |
135 |
|
% |
77.8% |
15.6% |
6.7% |
100.0% |
|
|
c10.4 Value adding activities are communicated to me. |
Count |
123 |
8 |
4 |
135 |
|
% |
91.1% |
5.9% |
3.0% |
100.0% |
|
|
c10.5 My performance has been evaluated against predetermined criteria. |
Count |
127 |
6 |
2 |
135 |
|
% |
94.1% |
4.4% |
1.5% |
100.0% |
Further Recoding
Please indicate your level
of agreement with each of the following statements
|
Agree |
Neutral / Disagree |
Total |
||
|
b9.1 SAP Software supports my department's objectives. |
Count |
126 |
9 |
135 |
|
% |
93.3% |
6.7% |
100.0% |
|
|
b9.2 Senior managers were consulted regarding the selection of the ERP Software used in my organisation. |
Count |
74 |
61 |
135 |
|
% |
54.8% |
45.2% |
100.0% |
|
|
b9.3 The end users were consulted regarding the selection of the ERP Software used in your organisation. |
Count |
61 |
74 |
135 |
|
% |
45.2% |
54.8% |
100.0% |
|
|
b9.4 The implementation of the SAP Software adds value for our customers. |
Count |
123 |
11 |
134 |
|
% |
91.8% |
8.2% |
100.0% |
|
|
b9.5 Sufficient funds were made available to train employees in SAP Software usage. |
Count |
99 |
36 |
135 |
|
% |
73.3% |
26.7% |
100.0% |
|
|
b9.6 In my department, the strategic plan is followed. |
Count |
110 |
25 |
135 |
|
% |
81.5% |
18.5% |
100.0% |
|
|
b9.7 In my organisation the IT Strategic plan is followed. |
Count |
110 |
25 |
135 |
|
% |
81.5% |
18.5% |
100.0% |
|
|
b9.8 The IT Strategic plan in our organisation influences the extent to which SAP Software can be successfully implemented. |
Count |
109 |
26 |
135 |
|
% |
80.7% |
19.3% |
100.0% |
153
Please indicate your level of agreement with each of the following statements
|
Agree |
Neutral / Disagree |
Total |
||
|
c10.1 The SAP Software facilitates effective decision-making. |
Count |
126 |
9 |
135 |
|
% |
93.3% |
6.7% |
100.0% |
|
|
c10.2 The SAP Software facilitates improved productivity. |
Count |
128 |
7 |
135 |
|
% |
94.8% |
5.2% |
100.0% |
|
|
c10.3 I received sufficient training on the usage of the SAP Software. |
Count |
105 |
30 |
135 |
|
% |
77.8% |
22.2% |
100.0% |
|
|
c10.4 Value adding activities are communicated to me. |
Count |
123 |
12 |
135 |
|
% |
91.1% |
8.9% |
100.0% |
|
|
c10.5 My performance has been evaluated against predetermined criteria. |
Count |
127 |
8 |
135 |
|
% |
94.1% |
5.9% |
100.0% |
Crosstabulations
a2 * a5 Crosstabulation a2 * a5
Crosstabulation
|
a5 |
Total |
||||
|
0 |
More than 0 |
||||
|
a2 |
Manager |
Count |
32 |
28 |
60 |
|
% within a2 |
53.3% |
46.7% |
100.0% |
||
|
End user |
Count |
73 |
0 |
73 |
|
|
% within a2 |
100.0% |
.0% |
100.0% |
||
|
Total |
Count |
105 |
28 |
133 |
|
|
% within a2 |
78.9% |
21.1% |
100.0% |
||
Chi-Square Tests
|
Value |
df |
Asymp. Sig. (2- |
Exact Sig. (2- |
Exact Sig. (1- |
|
|
Pearson Chi-Square |
43.151(b) |
1 |
.000 |
||
|
Continuity |
40.389 |
1 |
.000 |
||
|
Likelihood Ratio |
53.987 |
1 |
.000 |
||
|
Fisher's Exact Test |
.000 |
.000 |
|||
|
Linear-by-Linear |
42.827 |
1 |
.000 |
||
|
N of Valid Cases |
133 |
||||
|
a Computed only for a 2x2 table |
|||||
|
b 0 cells (.0%) have expected count less than 5. The minimum expected count is 12.63. |
|||||
154
Symmetric Measures
|
Value |
Approx. Sig. |
||
|
Nominal by Nominal |
Phi |
-.570 |
.000 |
|
Cramer's V |
.570 |
.000 |
|
|
N of Valid Cases |
133 |
||
|
a Not assuming the null hypothesis. |
|||
|
b Using the asymptotic standard error assuming the null hypothesis. |
|||
b9.1 * b9.8 Crosstabulationb9.1 * b9.8 Crosstabulation
|
b9.8 |
Total |
||||
|
Agree |
Neutral / Disagree |
||||
|
b9.1 |
Agree |
Count |
105 |
21 |
126 |
|
% within b9.1 |
83.3% |
16.7% |
100.0% |
||
|
Neutral / Disagree |
Count |
4 |
5 |
9 |
|
|
% within b9.1 |
44.4% |
55.6% |
100.0% |
||
|
Total |
Count |
109 |
26 |
135 |
|
|
% within b9.1 |
80.7% |
19.3% |
100.0% |
||
Chi-Square Tests
|
Value |
df |
Asymp. Sig. (2- |
Exact Sig. (2- |
Exact Sig. (1- |
|
|
Pearson Chi-Square |
8.170(b) |
1 |
.004 |
||
|
Continuity |
5.860 |
1 |
.015 |
||
|
Likelihood Ratio |
6.383 |
1 |
.012 |
||
|
Fisher's Exact Test |
.013 |
.013 |
|||
|
Linear-by-Linear |
8.109 |
1 |
.004 |
||
|
N of Valid Cases |
135 |
||||
|
a Computed only for a 2x2 table |
|||||
|
b 1 cells (25.0%) have expected count less than 5. The minimum expected count is 1.73. |
|||||
155
Symmetric Measures
|
Value |
Approx. Sig. |
||
|
Nominal by Nominal |
Phi |
.246 |
.004 |
|
Cramer's V |
.246 |
.004 |
|
|
N of Valid Cases |
135 |
||
|
a Not assuming the null hypothesis. |
|||
|
b Using the asymptotic standard error assuming the null hypothesis. |
|||
b9.1 * b9.2 Crosstabulationb9.1 * b9.2 Crosstabulation
|
b9.2 |
Total |
||||
|
Agree |
Neutral / Disagree |
||||
|
b9.1 |
Agree |
Count |
73 |
53 |
126 |
|
% within b9.1 |
57.9% |
42.1% |
100.0% |
||
|
Neutral / Disagree |
Count |
1 |
8 |
9 |
|
|
% within b9.1 |
11.1% |
88.9% |
100.0% |
||
|
Total |
Count |
74 |
61 |
135 |
|
|
% within b9.1 |
54.8% |
45.2% |
100.0% |
||
Chi-Square Tests
|
Value |
df |
Asymp. Sig. (2- |
Exact Sig. (2- |
Exact Sig. (1- |
|
|
Pearson Chi-Square |
7.436(b) |
1 |
.006 |
||
|
Continuity |
5.666 |
1 |
.017 |
||
|
Likelihood Ratio |
8.132 |
1 |
.004 |
||
|
Fisher's Exact Test |
.011 |
.008 |
|||
|
Linear-by-Linear |
7.381 |
1 |
.007 |
||
|
N of Valid Cases |
135 |
||||
|
a Computed only for a 2x2 table |
|||||
|
b 2 cells (50.0%) have expected count less than 5. The minimum expected count is 4.07. |
|||||
156
Symmetric Measures
|
Value |
Approx. Sig. |
||
|
Nominal by Nominal |
Phi |
.235 |
.006 |
|
Cramer's V |
.235 |
.006 |
|
|
N of Valid Cases |
135 |
||
|
a Not assuming the null hypothesis. |
|||
|
b Using the asymptotic standard error assuming the null hypothesis. |
|||
b9.6 * b9.7 Crosstabulationb9.6 * b9.7 Crosstabulation
|
b9.7 |
Total |
||||
|
Agree |
Neutral / Disagree |
||||
|
b9.6 |
Agree |
Count |
108 |
2 |
110 |
|
% within b9.6 |
98.2% |
1.8% |
100.0% |
||
|
Neutral / Disagree |
Count |
2 |
23 |
25 |
|
|
% within b9.6 |
8.0% |
92.0% |
100.0% |
||
|
Total |
Count |
110 |
25 |
135 |
|
|
% within b9.6 |
81.5% |
18.5% |
100.0% |
||
Chi-Square Tests
|
Value |
df |
Asymp. Sig. (2- |
Exact Sig. (2- |
Exact Sig. (1- |
|
|
Pearson Chi-Square |
109.792(b) |
1 |
.000 |
||
|
Continuity |
103.897 |
1 |
.000 |
||
|
Likelihood Ratio |
95.444 |
1 |
.000 |
||
|
Fisher's Exact Test |
.000 |
.000 |
|||
|
Linear-by-Linear |
108.979 |
1 |
.000 |
||
|
N of Valid Cases |
135 |
||||
|
a Computed only for a 2x2 table |
|||||
|
b 1 cells (25.0%) have expected count less than 5. The minimum expected count is 4.63. |
|||||
157
Symmetric Measures
|
Value |
Approx. Sig. |
||
|
Nominal by Nominal |
Phi |
.902 |
.000 |
|
Cramer's V |
.902 |
.000 |
|
|
N of Valid Cases |
135 |
||
|
a Not assuming the null hypothesis. |
|||
|
b Using the asymptotic standard error assuming the null hypothesis. |
|||
b9.5 * c10.3 Crosstabulationb9.5 * c10.3 Crosstabulation
|
c10.3 |
Total |
||||
|
Agree |
Neutral / Disagree |
||||
|
b9.5 |
Agree |
Count |
86 |
13 |
99 |
|
% within b9.5 |
86.9% |
13.1% |
100.0% |
||
|
Neutral / Disagree |
Count |
19 |
17 |
36 |
|
|
% within b9.5 |
52.8% |
47.2% |
100.0% |
||
|
Total |
Count |
105 |
30 |
135 |
|
|
% within b9.5 |
77.8% |
22.2% |
100.0% |
||
Chi-Square Tests
|
Value |
df |
Asymp. Sig. (2- |
Exact Sig. (2- |
Exact Sig. (1- |
|
|
Pearson Chi-Square |
17.752(b) |
1 |
.000 |
||
|
Continuity |
15.834 |
1 |
.000 |
||
|
Likelihood Ratio |
16.228 |
1 |
.000 |
||
|
Fisher's Exact Test |
.000 |
.000 |
|||
|
Linear-by-Linear |
17.620 |
1 |
.000 |
||
|
N of Valid Cases |
135 |
||||
|
a Computed only for a 2x2 table |
|||||
|
b 0 cells (.0%) have expected count less than 5. The minimum expected count is 8.00. |
|||||
158
Symmetric Measures
|
Value |
Approx. Sig. |
||
|
Nominal by Nominal |
Phi |
.363 |
.000 |
|
Cramer's V |
.363 |
.000 |
|
|
N of Valid Cases |
135 |
||
|
a Not assuming the null hypothesis. |
|||
|
b Using the asymptotic standard error assuming the null hypothesis. |
|||
c10.4 * c10.5 Crosstabulationc10.4 * c10.5 Crosstabulation
|
c10.5 |
Total |
||||
|
Agree |
Neutral / Disagree |
||||
|
c10.4 |
Agree |
Count |
122 |
1 |
123 |
|
% within c10.4 |
99.2% |
.8% |
100.0% |
||
|
Neutral / Disagree |
Count |
5 |
7 |
12 |
|
|
% within c10.4 |
41.7% |
58.3% |
100.0% |
||
|
Total |
Count |
127 |
8 |
135 |
|
|
% within c10.4 |
94.1% |
5.9% |
100.0% |
||
Chi-Square Tests
|
Value |
df |
Asymp. Sig. (2- |
Exact Sig. (2- |
Exact Sig. (1- |
|
|
Pearson Chi-Square |
64.889(b) |
1 |
.000 |
||
|
Continuity |
54.981 |
1 |
.000 |
||
|
Likelihood Ratio |
32.813 |
1 |
.000 |
||
|
Fisher's Exact Test |
.000 |
.000 |
|||
|
Linear-by-Linear |
64.408 |
1 |
.000 |
||
|
N of Valid Cases |
135 |
||||
|
a Computed only for a 2x2 table |
|||||
|
b 1 cells (25.0%) have expected count less than 5. The minimum expected count is .71. |
|||||
159
Symmetric Measures
|
Value |
Approx. Sig. |
||
|
Nominal by Nominal |
Phi |
.693 |
.000 |
|
Cramer's V |
.693 |
.000 |
|
|
N of Valid Cases |
135 |
||
|
a Not assuming the null hypothesis. |
|||
|
b Using the asymptotic standard error assuming the null hypothesis. |
|||
b9.4 * c10.2 Crosstabulationb9.4 * c10.2 Crosstabulation
|
c10.2 |
Total |
||||
|
Agree |
Neutral / Disagree |
||||
|
b9.4 |
Agree |
Count |
122 |
1 |
123 |
|
% within b9.4 |
99.2% |
.8% |
100.0% |
||
|
Neutral / Disagree |
Count |
5 |
6 |
11 |
|
|
% within b9.4 |
45.5% |
54.5% |
100.0% |
||
|
Total |
Count |
127 |
7 |
134 |
|
|
% within b9.4 |
94.8% |
5.2% |
100.0% |
||
Chi-Square Tests
|
Value |
df |
Asymp. Sig. (2- |
Exact Sig. (2- |
Exact Sig. (1- |
|
|
Pearson Chi-Square |
58.881(b) |
1 |
.000 |
||
|
Continuity |
48.528 |
1 |
.000 |
||
|
Likelihood Ratio |
28.180 |
1 |
.000 |
||
|
Fisher's Exact Test |
.000 |
.000 |
|||
|
Linear-by-Linear |
58.441 |
1 |
.000 |
||
|
N of Valid Cases |
134 |
||||
|
a Computed only for a 2x2 table |
|||||
|
b 1 cells (25.0%) have expected count less than 5. The minimum expected count is .57. |
|||||
160
Symmetric Measures
|
Value |
Approx. Sig. |
||
|
Nominal by Nominal |
Phi |
.663 |
.000 |
|
Cramer's V |
.663 |
.000 |
|
|
N of Valid Cases |
134 |
||
|
a Not assuming the null hypothesis. |
|||
|
b Using the asymptotic standard error assuming the null hypothesis. |
|||
c10.3 * b8.3 Crosstabulationc10.3 * b8.3 Crosstabulation
|
b8.3 |
Total |
||||
|
Not Marked |
Marked |
||||
|
c10.3 |
Agree |
Count |
12 |
93 |
105 |
|
% within c10.3 |
11.4% |
88.6% |
100.0% |
||
|
Neutral / Disagree |
Count |
4 |
26 |
30 |
|
|
% within c10.3 |
13.3% |
86.7% |
100.0% |
||
|
Total |
Count |
16 |
119 |
135 |
|
|
% within c10.3 |
11.9% |
88.1% |
100.0% |
||
Chi-Square Tests
|
Value |
df |
Asymp. Sig. (2- |
Exact Sig. (2- |
Exact Sig. (1- |
|
|
Pearson Chi-Square |
.081(b) |
1 |
.776 |
||
|
Continuity |
.000 |
1 |
1.000 |
||
|
Likelihood Ratio |
.079 |
1 |
.779 |
||
|
Fisher's Exact Test |
.754 |
.495 |
|||
|
Linear-by-Linear |
.080 |
1 |
.777 |
||
|
N of Valid Cases |
135 |
||||
|
a Computed only for a 2x2 table |
|||||
|
b 1 cells (25.0%) have expected count less than 5. The minimum expected count is 3.56. |
|||||
161
Symmetric Measures
|
Value |
Approx. Sig. |
||
|
Nominal by Nominal |
Phi |
-.024 |
.776 |
|
Cramer's V |
.024 |
.776 |
|
|
N of Valid Cases |
135 |
||
|
a Not assuming the null hypothesis. |
|||
|
b Using the asymptotic standard error assuming the null hypothesis. |
|||
162
APPENDIX G
Frequencies and descriptives data
for the CEOs/CIOs
SECTION A: Demographics
a1 Specify in which capacity
are you completing this questionnaire?
|
Frequency |
Percent |
||
|
Valid |
CIO |
3 |
100.0 |
a2 How long have you been operating the SAP software?
|
Frequency |
Percent |
||
|
Valid |
10 years or more |
3 |
100.0 |
a3 How long has your organisation used the SAP software?
|
Frequency |
Percent |
||
|
Valid |
At least ten but less than 20 years |
3 |
100.0 |
a4 How many full-time employees are in your organisation
|
Frequency |
Percent |
||
|
Valid |
701 employees or more |
3 |
100.0 |
a5 In how many countries, excluding South Africa, is your organisation operating?
|
Frequency |
Percent |
Valid Percent |
||
|
Valid |
20 |
1 |
33.3 |
50.0 |
|
25 |
1 |
33.3 |
50.0 |
|
|
Total |
2 |
66.7 |
100.0 |
|
|
Missing |
System |
1 |
33.3 |
|
|
Total |
3 |
100.0 |
||
SECTION B: Your view on the SAP Software and Training
163
Who is/was responsible for SAP training in your oraganisation?
|
Not Marked |
Marked |
Total |
||
|
b6.1 Independent external consultants |
Count |
2 |
1 |
3 |
|
% |
66.7% |
33.3% |
100.0% |
|
|
b6.2 The SAP computer systems specialists |
Count |
3 |
3 |
|
|
% |
100.0% |
100.0% |
||
|
b6.3 The training is done on-the-job with experienced employees |
Count |
3 |
3 |
|
|
% |
100.0% |
100.0% |
||
|
b6.4 Other |
Count |
3 |
3 |
|
|
% |
100.0% |
100.0% |
b7 To what extent, do you believe the SAP Software is
used as a strategic management tool in your
organisation?
|
Frequency |
Percent |
||
|
Valid |
Large Extent |
3 |
100.0 |
b8 How did your organisation acquire the SAP Software?
|
Frequency |
Percent |
||
|
Valid |
The software was customised for my organisation |
3 |
100.0 |
To what extent do you agree/disagree with the following statement?
|
Strongly |
Agree |
Strongly |
Disagree |
Total |
||
|
b9.1 The implementation of the SAP system was a waste of money. |
Count |
3 |
3 |
|||
|
% |
100.0% |
100.0% |
||||
|
b9.2 The SAP System hampers internal organisation of processes. |
Count |
2 |
1 |
3 |
||
|
% |
66.7% |
33.3% |
100.0% |
164
|
b9.3 It is a complex to implement the SAP System software. |
Count |
1 |
2 |
3 |
||
|
% |
33.3% |
66.7% |
100.0% |
|||
|
b9.4 SAP System effectively integrates different applications. |
Count |
3 |
3 |
|||
|
% |
100.0% |
100.0% |
||||
|
b9.5 The multifunctionality of the SAP software is of strategic importance to my organisation. |
Count |
3 |
3 |
|||
|
% |
100.0% |
100.0% |
||||
|
b9.6 The modular capability of SAP software is of strategic importance to my organisation. |
Count |
3 |
3 |
|||
|
% |
100.0% |
100.0% |
Statistics
|
Mean |
Median |
Std. |
|
|
b9.1 The implementation of the SAP system was a waste
of |
4.00 |
4.00 |
.000 |
|
b9.2 The SAP System hampers internal organisation
of |
4.33 |
4.00 |
.577 |
|
b9.3 It is a complex to implement the SAP System software. |
1.67 |
2.00 |
.577 |
|
b9.4 SAP System effectively integrates different applications. |
1.00 |
1.00 |
.000 |
|
b9.5 The multifunctionality of the SAP software is of
strategic |
1.00 |
1.00 |
.000 |
|
b9.6 The modular capability of SAP software is of
strategic |
1.00 |
1.00 |
.000 |
SECTION C: Strategic management, SAP system and value
chain
To what extent do you agree/disagree with the following
statement?
|
Strongly Agree |
Total |
||
|
c10.1 In our organisation the SAP Software is integrated in the supply chain. |
Count |
3 |
3 |
|
% |
100.0% |
100.0% |
|
|
c10.2 In our organisation the SAP Software adds value in the supply chain. |
Count |
3 |
3 |
|
% |
100.0% |
100.0% |
|
|
c10.3 The SAP System supports the objectives of
our |
Count |
3 |
3 |
|
% |
100.0% |
100.0% |
|
|
c10.4 The IT Strategy plan in our organisation |
Count |
3 |
3 |
165
|
influences the extent to which SAP Software can be |
|||
|
successfully implemented. |
% |
100.0% |
100.0% |
|
c10.5 In my organisation the IT Strategic plan is |
Count |
3 |
3 |
|
followed. |
% |
100.0% |
100.0% |
Statistics
|
Mean |
Median |
Std. |
|
|
c10.1 In our organisation the SAP Software is integrated in the supply chain. |
1.00 |
1.00 |
.000 |
|
c10.2 In our organisation the SAP Software adds value in the supply chain. |
1.00 |
1.00 |
.000 |
|
c10.3 The SAP System supports the objectives of our organisation. |
1.00 |
1.00 |
.000 |
|
c10.4 The IT Strategy plan in our organisation influences the extent to which SAP Software can be successfully implemented. |
1.00 |
1.00 |
.000 |
|
c10.5 In my organisation the IT Strategic plan is followed. |
1.00 |
1.00 |
.000 |
SECTION D: General Information
To what
extent do you agree/disagree with the following statement?
|
Strongly Agree |
Agree |
Disagree |
Total |
||
|
d11.1 The acquisition of ERP Software is valuable to my organisation. |
Count |
3 |
3 |
||
|
% |
100.0% |
100.0% |
|||
|
d11.2 In my organisation the most effective ERP System was implemented. |
Count |
2 |
1 |
3 |
|
|
% |
66.7% |
33.3% |
100.0% |
||
|
d11.3 The ERP System was effectively customised for my organisation. |
Count |
3 |
3 |
||
|
% |
100.0% |
100.0% |
|||
|
d11.4 Employees in my organisation make effective use of the SAP System. |
Count |
2 |
1 |
3 |
|
|
% |
66.7% |
33.3% |
100.0% |
||
|
d11.5 SAP Software users are |
Count |
2 |
1 |
3 |
|
|
% |
66.7% |
33.3% |
100.0% |
166
Statistics
|
Mean |
Median |
Std. Deviation |
|
|
d11.1 The acquisition of ERP Software is valuable to my organisation. |
1.00 |
1.00 |
.000 |
|
d11.2 In my organisation the most effective ERP System was implemented. |
2.33 |
1.00 |
2.309 |
|
d11.3 The ERP System was effectively customised for my organisation. |
1.00 |
1.00 |
.000 |
|
d11.4 Employees in my organisation make effective use of the SAP System. |
1.33 |
1.00 |
.577 |
|
d11.5 SAP Software users are knowledgeable about the system. |
1.33 |
1.00 |
.577 |
167
APPENDIX H
Frequencies and descriptives data
of end-users and Managers
SECTION A: Demographics
a1 How long have you been
using the SAP Software?
|
Frequency |
Percent |
||
|
Valid |
Less than One year |
8 |
5.9 |
|
At least One year but less than 3 years |
12 |
8.9 |
|
|
At least three but less than 5 years |
38 |
28.1 |
|
|
At least 5 but less than 10 years |
59 |
43.7 |
|
|
At least ten but less than 20 years |
18 |
13.3 |
|
|
Total |
135 |
100.0 |
a2 What is your current job level?
|
Frequency |
Per cent |
Valid Per cent |
||
|
Valid |
General Manager |
4 |
3.0 |
3.0 |
|
Senior Manager |
12 |
8.9 |
9.0 |
|
|
Middle Manager |
11 |
8.1 |
8.2 |
|
|
Junior Manager |
34 |
25.2 |
25.4 |
|
|
End user |
73 |
54.1 |
54.5 |
|
|
Total |
134 |
99.3 |
100.0 |
|
|
Missing |
System |
1 |
.7 |
|
|
Total |
135 |
100.0 |
||
a3 What is your age group?
|
Frequency |
Per cent |
||
|
Valid |
Younger than 20 |
3 |
2.2 |
|
20 to 25 years |
18 |
13.3 |
|
|
26 to 30 years |
44 |
32.6 |
|
|
31 to 35 years |
37 |
27.4 |
|
|
36 to 40 years |
25 |
18.5 |
|
|
41 to 45 years |
7 |
5.2 |
|
|
1 |
.7 |
||
|
Total |
135 |
100.0 |
168
a4 What is your highest level of education?
|
Frequency |
Per cent |
Valid Per cent |
||
|
Valid |
Some High School |
8 |
5.9 |
6.0 |
|
Grade 12 (Matric) |
50 |
37.0 |
37.3 |
|
|
Post School Diploma(s) or certificate(s) |
53 |
39.3 |
39.6 |
|
|
Undergraduate or equivalent degree(s) |
21 |
15.6 |
15.7 |
|
|
Post Graduate Degree(s) |
2 |
1.5 |
1.5 |
|
|
Total |
134 |
99.3 |
100.0 |
|
|
Missing |
System |
1 |
.7 |
|
|
Total |
135 |
100.0 |
||
a5 How many full time employees report to you?
|
Frequency |
Per cent |
Valid Per cent |
||
|
Valid |
0 |
106 |
78.5 |
79.1 |
|
Between 1 and 10 |
13 |
9.6 |
9.7 |
|
|
Between 11 and 20 |
6 |
4.4 |
4.5 |
|
|
Between 21 and 30 |
3 |
2.2 |
2.2 |
|
|
Between 31 and 40 |
2 |
1.5 |
1.5 |
|
|
More than 40 |
4 |
3.0 |
3.0 |
|
|
Total |
134 |
99.3 |
100.0 |
|
|
Missing |
System |
1 |
.7 |
|
|
Total |
135 |
100.0 |
||
a2 What is your current job level? * a5 How many full
time employees report to you?
Crosstabulation
Count
|
a5 How many full time employees report to you? |
Tota |
|||||||
|
0 |
Between 1 |
Between |
Between |
Between |
More than |
|||
|
a2 What is your |
General |
0 |
0 |
0 |
0 |
1 |
3 |
4 |
|
Senior |
0 |
3 |
4 |
3 |
1 |
1 |
12 |
|
|
Middle |
3 |
6 |
2 |
0 |
0 |
0 |
11 |
|
169
|
Junior |
||||||||
|
Manager |
29 |
4 |
0 |
0 |
0 |
0 |
33 |
|
|
End user |
73 |
0 |
0 |
0 |
0 |
0 |
73 |
|
|
Total |
105 |
13 |
6 |
3 |
2 |
4 |
133 |
|
SECTION B: Strategic management, SAP operational, and
training
b6 How would you rate your SAP Software efficiency?
|
Frequency |
Percent |
||
|
Valid |
Excellent |
103 |
76.3 |
|
Good |
23 |
17.0 |
|
|
Moderate |
7 |
5.2 |
|
|
Very Poor |
2 |
1.5 |
|
|
Total |
135 |
100.0 |
How did your organisation acquire the SAP Software?
|
Not Marked |
Marked |
Total |
||
|
b7.1 Vendor supplied the software with some modifications |
Count |
119 |
16 |
135 |
|
% |
88.1% |
11.9% |
100.0% |
|
|
b7.2 Vendor supplied the software with little or no modifications |
Count |
122 |
13 |
135 |
|
% |
90.4% |
9.6% |
100.0% |
|
|
b7.3 Vendor supplied the software with major modifications |
Count |
124 |
11 |
135 |
|
% |
91.9% |
8.1% |
100.0% |
|
|
b7.4 The software was customised for my organisation |
Count |
41 |
94 |
135 |
|
% |
30.4% |
69.6% |
100.0% |
Who is/was responsible for SAP training in your oraganisation?
|
Not Marked |
Marked |
Total |
||
|
b8.1 Independent external clients |
Count |
115 |
20 |
135 |
|
% |
85.2% |
14.8% |
100.0% |
|
|
b8.2 The SAP computer systems specialists |
Count |
37 |
98 |
135 |
|
% |
27.4% |
72.6% |
100.0% |
|
|
b8.3 The training is done on-the-job with experienced employees |
Count |
16 |
119 |
135 |
|
% |
11.9% |
88.1% |
100.0% |
|
|
b8.4 Other |
Count |
133 |
2 |
135 |
|
% |
98.5% |
1.5% |
100.0% |
170
Please indicate your level of agreement with each of the following statements
|
Strongly |
Agree |
Neutral |
Strongly |
Disagree |
No |
Total |
||
|
b9.1 SAP Software supports my department's objectives. |
Count |
92 |
34 |
6 |
2 |
1 |
135 |
|
|
% |
68.1% |
25.2% |
4.4% |
1.5% |
.7% |
100.0% |
||
|
b9.2 Senior managers were consulted regarding the selection of the ERP Software used in my organisation. |
Count |
31 |
43 |
39 |
11 |
11 |
135 |
|
|
% |
23.0% |
31.9% |
28.9% |
8.1% |
8.1% |
100.0% |
||
|
b9.3 The end users were consulted regarding the selection of the ERP Software used in your organisation. |
Count |
22 |
39 |
36 |
20 |
18 |
135 |
|
|
% |
16.3% |
28.9% |
26.7% |
14.8% |
13.3% |
100.0% |
||
|
b9.4 The implementation of the SAP Software adds value for our customers. |
Count |
74 |
49 |
9 |
2 |
1 |
135 |
|
|
% |
54.8% |
36.3% |
6.7% |
1.5% |
.7% |
100.0% |
||
|
b9.5 Sufficient funds were made available to train employees in SAP Software usage. |
Count |
52 |
47 |
25 |
10 |
1 |
135 |
|
|
% |
38.5% |
34.8% |
18.5% |
7.4% |
.7% |
100.0% |
||
|
b9.6 In my department,the strategic plan is followed. |
Count |
64 |
46 |
23 |
2 |
135 |
||
|
% |
47.4% |
34.1% |
17.0% |
1.5% |
100.0% |
|||
|
b9.7 In my organisation the IT Strategic plan is followed. |
Count |
61 |
49 |
22 |
3 |
135 |
||
|
% |
45.2% |
36.3% |
16.3% |
2.2% |
100.0% |
|||
|
b9.8 The IT Strategic plan in our organisation influences the extent to which SAP Software can be successfully implemented. |
Count |
64 |
45 |
23 |
3 |
135 |
||
|
% |
47.4% |
33.3% |
17.0% |
2.2% |
100.0% |
171
Statistics
|
N |
Mean |
Median |
Std. |
Skewness |
Kurtosis |
|
|
Missing |
||||||
|
SAP Software supports my department's objectives. |
0 |
1.41 |
1.00 |
.716 |
2.159 |
5.796 |
|
Senior managers were consulted regarding the selection of the ERP Software used in my organisation. |
0 |
2.47 |
2.00 |
1.171 |
.577 |
-.314 |
|
The end users were consulted regarding the selection of the ERP Software used in your organisation. |
0 |
2.80 |
3.00 |
1.263 |
.294 |
-.887 |
|
The implementation of the SAP Software adds value for our customers. |
1 |
1.54 |
1.00 |
.690 |
1.164 |
1.165 |
|
Sufficient funds were made available to train employees in SAP Software usage. |
0 |
1.97 |
2.00 |
.969 |
.759 |
-.166 |
|
In my department, the strategic plan is followed. |
0 |
1.73 |
2.00 |
.796 |
.715 |
-.497 |
|
In my organisation the IT Strategic plan is followed. |
0 |
1.76 |
2.00 |
.805 |
.735 |
-.306 |
|
The IT Strategic plan in our organisation influences the extent to which SAP Software can be successfully implemented. |
0 |
1.74 |
2.00 |
.819 |
.762 |
-.374 |
SECTION C: General Information
Please
indicate your level of agreement with each of the following statements
|
Strongly |
Agree |
Neutral |
Strongly |
Disagree |
Total |
||
|
c10.1 The SAP Software facilitates effective decision-making. |
Count |
80 |
46 |
7 |
2 |
135 |
|
|
% |
59.3% |
34.1% |
5.2% |
1.5% |
100.0% |
||
|
c10.2 The SAP Software facilitates improved productivity. |
Count |
84 |
44 |
5 |
2 |
135 |
|
|
% |
62.2% |
32.6% |
3.7% |
1.5% |
100.0% |
||
|
c10.3 I received sufficient |
Count |
64 |
41 |
21 |
4 |
5 |
135 |
172
|
training on the usage of the SAP Software. |
% |
47.4% |
30.4% |
15.6% |
3.0% |
3.7% |
100.0% |
|
c10.4 Value adding activities are |
Count |
64 |
59 |
8 |
2 |
2 |
135 |
|
communicated to me. |
% |
47.4% |
43.7% |
5.9% |
1.5% |
1.5% |
100.0% |
|
c10.5 My performance has been evaluated against predetermined criteria. |
Count |
67 |
60 |
6 |
2 |
135 |
|
|
% |
49.6% |
44.4% |
4.4% |
1.5% |
100.0% |
Statistics
|
Mean |
Median |
Std. |
Skewness |
Kurtosis |
|
|
The SAP Software facilitates effective decision-making. |
1.49 |
1.00 |
.668 |
1.339 |
1.791 |
|
The SAP Software facilitates improved productivity. |
1.44 |
1.00 |
.643 |
1.495 |
2.518 |
|
I received sufficient training on the usage of the SAP Software. |
1.85 |
2.00 |
1.033 |
1.291 |
1.360 |
|
Value adding activities are communicated to me. |
1.66 |
2.00 |
.784 |
1.628 |
4.125 |
|
My performance has been evaluated against predetermined criteria. |
1.58 |
2.00 |
.652 |
1.020 |
1.375 |
173
