Title: Critical evaluation of ERP implementation on firm performance: a case study of AT&T

Authors: Xin Chan; Yui-yip Lau; Jim Mi Jimmy Ng

Addresses: International Trade Services, North Asia District Office, UPS Parcel Delivery Service Limited, 35/F, 9 Wing Hong Street, Cheung Sha Wan, Kowloon, Hong Kong ' MacGregor Education Services Limited, 8/F, Chow Tai Fook Centre, 580A Nathan Road, Mongkok, Kowloon, Honk Kong ' Department of Logistics and Maritime Studies, The Hong Kong Polytechnic University, M601, Li Ka Shing Tower, Hung Hom, Kowloon, Hong Kong

Abstract: Firms have recently faced the twofold challenges of the abrupt deterioration of the global economy and continual rise in customer demands and expectations. Enterprise Resource Planning (ERP) benefits a firm in cost minimisation and service level enhancement. American Telephone and Telegraph Company (AT&T), the largest telecom service provider in the USA, is selected to be studied in this paper. We investigate the critical elements of their ERP implementation process. We also illustrate comprehensive approaches such as Cost-Benefit Analysis (CBA), Multiple Linear Regression and Intensity Indices to evaluate ERP performance. Findings show that ERP implementation decreases dependence on capital investment, but not for operating expenses. This study also found that AT&T reacted faster than the market average in terms of IT investment, and the Intensity Indices have shed some light on how this trend is derived.

Keywords: ERP; enterprise resource planning; cost-benefit analysis; multiple linear regression; intensity indices; firm performance; AT&T; telecommunications industry; American Telephone and Telegraph Company; USA; United States; multinational corporations; MNCs; economic deterioration; global economy; customer demands; customer expectations; cost minimisation; service level enhancement; telecom services; critical elements; implementation processes; dependence; capital investment; operating expenses; reaction speeds; market averages; ICT; information technology; communications technology; logistics systems; logistics management.

DOI: 10.1504/IJLSM.2012.047058

International Journal of Logistics Systems and Management, 2012 Vol.12 No.1, pp.52 - 69

Published online: 28 Nov 2014 *

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