A post-implementation analysis of ERP systems in Maltese companies

Abstract

PURPOSE: The study investigates, on an ex-post basis, ERP systems and how Maltese businesses have been impacted by their implementation. It particularly focuses on changes that have occurred in the company, both inside and outside the finance department, and questions whether and how the ERP has helped businesses reach their objectives. DESIGN: The research takes the form of a qualitative study. Information is sourced through semi-structured interviews with a variety of end-user companies and their suppliers. FINDINGS: The findings show that even though businesses embark on an ERP project primarily as a result of a business need, the finance department plays a crucial role in its successful implementation. Accounting methodologies at a high level were found to be perfectly adequate, and ERPs allow for a shift from routine to more value-added work in all sections of the business. It was also found that generally, no post-implementation reviews are carried out. CONCLUSIONS: The increasing dominance of ERPs marks a paradigm shift, where accounting is not just done because of tradition and legal requirements, but instead to make a difference in the business and to be an integral part of the decision-making process. IMPLICATIONS/VALUE: The study shows that companies in Malta, while making strides to fully adopt ERP systems in their business, will struggle to obtain maximum value out of their investment, purely due to lack of scale. As the level of maturity (both for top management and lower-level employees) grows, businesses will learn to quickly overcome change resistance and fully harness the potential of the ERP.