ERP Business Speed – A Measuring Framework

A major business problem nowadays is how adequate and appropriate the ERP system used is for growing business needs, the ever-changing complexity of the business environment, the growing global scale competition, and as a result - the growing speed of business. The purpose of this research is to make the benchmark for an ERP system business speed (performance from a business operations point of view), i.e. how fast the business operations executed are with the used ERP. A literature analysis is conducted for framing and defining the concept of ERP business speed as an important and crucial factor for business success. Then a measurement framework for testing ERP systems in terms of business operations and ERP business performance is proposed and tested. Metrics for measuring ERP business speed are defined by conducting focused interviews with experts in ERP implementation and maintenance. The measurement framework has been empirically tested in 6 business organizations, first to validate the selected KPIs and second to formulate some average business speed indications of the KPIs as part of the business speed of ERP. The research contributes by providing a framework measurement tool for testing business speed of ERP systems. The study can also serve as a benchmark in further measuring of ERP business speed. From theory perspective, this study provides a definition and an explanation of the term ERP business speed for the first time in the literature.