An Empirical Study of Operational Performance Parity Following Enterprise System Deployment

Mark J. Cotteleer

Production and Operations Management, 2006, vol. 15, issue 1, 74-87

Abstract: This paper presents an empirical investigation into whether the implementation of packaged Enterprise Systems (ES) leads to parity in operational performance. Performance change and parity in operational performance are investigated in three geographically defined operating regions of a single firm. Order lead time, the elapsed time between receipt of an order and shipment to a customer, is used as a measure of operational performance. A single ES installation was deployed across all regions of the subject firm's operations. Findings illustrate parity as an immediate consequence of ES deployment. However, differences in rates of performance improvement following deployment eventually result in significant (albeit smaller than pre‐deployment) performance differences. An additional consequence of deployment seems to be an increased synchronization of performance across the formerly independent regions.

Date: 2006
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