Benefit realisation modelling for ERP systems using system dynamics

Abstract

Achieving success for ERP systems is not only concerned with deploying the technology on time and on budget but also concerned with the level of achieving targeted benefits from the system. This level of achieving targeted benefits can be managed indirectly through managing the organisational attitude toward the new system. Thus, the aim of this paper is to use the System Dynamics (SD) to reveal how managing organisational attitude leads to an increase in the level of system use and, therefore, leads to a decrease in the level of resistance to change to new system for achieving high level of performance. SD is used to investigate the causal loops of organisational attitude, perceptions, behaviours, and policies taken to achieve desired benefits. The ability to manage an organisational attitude toward ERP is an important factor for achieving desired levels of benefits is the main conclusion of this research.