Erp Adoption by Public and Private Organizations – A Comparative Analysis of Successful Implementations

Abstract

The business environment has changed dramatically in the last years. The organizations are now more complex in terms of their structure and geographical dispersion. Daily, great amounts of information are produced and, to surpass these problems, organizations have invested in Enterprise Resource Planning systems (ERP). The same trends can be detected within the public sector. The interest generated by the ERP phenomenon is growing and the particularities of the public sector make specific studies necessary. Accordingly, the aim of this paper is to examine the adoption process of ERP systems by public and private organizations. Which ERP modules are mostly adopted? Which reasons legitimate ERP adoption? Using a survey research methodology, this study reveals that the need to increase the demand for real-time information, to obtain information for decision-making and the integration of applications appear as main reasons to implement an ERP system. Although the reasons given are the same for public and private organizations, the results of this study also show that the modules implemented are slightly different; the importance or dominance of each module may differ; and the deployment time is shorter in the public sector. Since comparative studies are relatively scarce, our work helps to reduce this knowledge gap.

The client-consultant relationship in the implementation of ERP in government

“…In this sense, private enterprise is more likely to use IT, especially ERP [50]. The complex political system and fragmented power heighten the challenge to achieve greater commitment from the administration [1]. Public agencies tend to be more politically than economically influenced, which leads to a short-term view, firm action in terms of accountability and tasks that are carried out under the watchful eye of the public [18], [38].…”

“…According to [1], the main motivators for the implementation of ERP in government include the integration of systems and the growing demand for information in real time. It is also true that the fact that citizens are demanding increasingly more technology cannot be ignored, and governments are pressed to meet these demands.…”

“…Public organizations tend to have more rigid and bureaucratic hierarchies and structures [18], in addition to actions covered by many legal aspects [39]. Consequently, ERP implementations in these organizations involve much greater teamwork than is seen in the private sector to meet all the requirements of the different departments and divisions [1].…”

“…Studies that compare implementation in private and public organizations have pinpointed some significant differences. These include culture, the complex political power system, organizational structure and investments in information technology [1], [38], [39], [50].…”

“…The interest that has been raised concerning this phenomenon in the public sector and the particular context of this sector means that specific studies are required [36], [38]. Some empirical studies [1], [38] have looked at the motivation behind ERP implementation in the public sector and found that public and private organizational conditions are different. The same solutions that are used successfully in the business world may not apply to the public sector owing to its unique characteristics.…”