Nowadays, companies have been struggling to comply with radical changes of business environments and expand their competitiveness through pouring out their efforts and trials to be innovative. Especially, as information and communication technologies...
Nowadays, companies have been struggling to comply with radical changes of business environments and expand their competitiveness through pouring out their efforts and trials to be innovative. Especially, as information and communication technologies have been developed recently, information delivery transcending time and space became available. Followed by this phenomena, local companies have more relationships with international ones, and the business scope is not limited to local, but going through the borders of countries. In addition, the trading size has been increased day by day. Thus, companies have been pursuing their systems to be radicalized and enhancing productivity and effectiveness by automatization of each department.
Enterprise Resource Planning (ERP) is one of the tools to manage human and physical resources, thus this is not just about recording, but about active utilization of information to apply it on site. Especially, to secure the clients in food industries, it is important to reevaluate clients' recognition toward brand name, change earning systems, effectively manage cost price and active marketing for being independent in finance.
Therefore, this study aims at analyzing on what determining factors of ERP system, the system invested with great resources and technologies, in food industry companies affect to success and what the result is. Also, the relationship between the determining factors, success and satisfaction levels of users will be evaluated, so that it helps to suggest effective operation agenda and management skills for food industry companies intending to adopt ERP system.
For the sampling method of this study, convenient extraction method being one of the nonprobability sampling has been applied. The study subject is employees working in L, S, P, M and H which adopted ERP system and located in Seoul and Kyounggi-do. The research period started on July 15, 2010, and it lasted for a month.
To put results into statistics, SPSS 17.0 has been employed to analyze frequency, causes, credibility, relationship and regression. The results for empirical analysis are as follows.
First, for the result of analysis on the relationship between ERP system determining factors and the success, communication is proved to be the most important factor. In the order of timeliness, chief executive officers(CEO)' support, system's conveniency, education and training, it shows decreased level of relevancy. Also, for the externality and communication, in the order of CEOs' support level, timeliness of information and system's conveniency, it indicated decreased relevancy.
Therefore, to produce internal and external success after adopting ERP system, it indicates that smooth communication between ERP system users and managers, users and information system departments and among users is crucial. Moreover, CEO's support, consecutive care and prompt decision making are required.
Second, as a result of relationship analysis for ERP system adoption and satisfaction level, while internality and causes affect to satisfaction level, externality and causes fail to give meaningful impact.
Therefore, it indicates that internal success is connected to satisfaction level after the use of ERP system.
Third, as a result of analysis for relationship between ERP system's success and satisfaction level, communication, system's conveniency and timeliness of information affect to satisfaction level. On the other hand, education, training support CEO's support fail to give meaningful support.
The study results of empirical analysis are as follows,
It is crucial to apprehend what affected ERP systems' success and build environments effectively operating the system by users. Also, from the entry level of ERP system, it is important to build the system which integrates the interests of board of directors, related workers, system suppliers, users and organization members.
Moreover, to enhance effectiveness of ERP system, both economic and constructive planning to benefit food industry companies and the efforts for them are required.