The Research Of ERP System Evaluation To The Effectiveness In Business Operations

The ERP system is a kind of critical information system used for businessoperational management. However, the businesses are usually concerned withthe deployment and application of ERP systems because of complicatedtechnologies, long-term implemented cycle, and costly investment, etc.Meanwhile, the industries normally suspect the effectiveness and valuation ofERP systems even if they deploy the systems successfully. Based on thecharacteristics and essence of information technology, this thesis will analyzethe effectiveness that ERP systems present to the businesses and figure outthe methodology used to evaluate the effectiveness.In the thesis, it firstly reviews the related researches and arguments about thevaluation of applied information technology in the past20years byintroducing the characteristics of ERP systems and a survey report regardingthe effectiveness of ERP systems according to a marketing facility.Afterwards, the thesis analyzes the normal methodologies currently used forthe ERP system evaluation to the effectiveness in business operations, and then points out the main problems and weakness. On the basis of aboveanalyses, the thesis propounds the risk-based theory and methodology used toevaluate the effectiveness of an ERP system in terms of operational riskmanagement. Finally, referring to a real case, the thesis illustrates how toapply the risk-based methodology to evaluate the effectiveness of an ERPsystem. Over the course of stating the detailed procedure of evaluation, thethesis uses the model of system dynamics as qualitative and quantitative riskanalysis, and then concludes the evaluation according to the results ofsimulation used in this case.