ERP End-User Business Productivity: A Field Study of SAP & Microsoft

ERP End-User Business Productivity:
A Field Study of SAP & Microsoft
ERP End-User Business Productivity: Page 1 of 12A Field Study of SAP & Microsoft March 2007Contents
Executive Summary 3Study Overview 3Background 3Business Productivity Framework 4Summary of Findings 5
Methodology 6Survey Administration and Scoring 6Survey Instrument and Measurement Framework Development 6Sample Questions 7
Detailed Findings and Implications 8Usability 8Familiarity 9Transactional Effi ciency 9Flexibility 10Business Insight 10Collaboration 11
Conclusion 12
About Keystone Strategy 12
About Dr. Marco Iansiti 12
ERP End-User Business Productivity: Page 2 of 12A Field Study of SAP & Microsoft March 2007Executive SummaryStudy OverviewIn this white paper, we measure how end users of Enterprise Resource Planning (ERP) applications describe the impact of Microsoft and SAP applications on their business productivity. This research found that Microsoft Dynamics end users on average rated their experience with Microsoft applications more favorably than SAP users rated their experience with SAP. These fi ndings are based on a business productivity measurement framework developed by Keystone Strategy, working under the direction of Dr. Marco Iansiti, the David Sarnoff Professor of Business Administration at the Harvard Business School, and sponsored by Microsoft.
BackgroundKeystone's research fi ts within the context of several recent studies exploring the impact of software applications on business productivity, beyond traditional measures such as the level of information technology (IT) investment or feature/function comparisons.1A study from AMR Research fi nds that only 15% of employees are licensed to use their company's ERP system and furthermore that 46% of licensed ERP seats go unused. Logical follow-on questions to these fi ndings include: How can an application have a deep impact on productivity at a company when such a limited set of employees has access to the system? Why would an investment in a tool as powerful as an ERP system and with such potential to boost business performance be limited to such a small set of employees? Of the already limited number of licenses purchased, why do nearly half go unused?
In a separate study, Forrester concludes that "poorly designed user interfaces can profoundly affect the bottom line. The expenses associated with a bad UI, over the course of the application's lifetime, may end up being many times the cost of the application itself." The report continues on to explain the costly implications of a bad UI, including 2increased new user training times, a decrease in productivity, and poor user adoption.
Against the background provided by AMR and Forrester, Keystone Strategy has initiated a broader research program to analyze the interrelationships between IT and business productivity. Previously, Keystone has found that fi rms with the highest deployed IT capabilities in their peer groups have been best able to profi tably grow their 3 4revenues. This fi nding has been true of both enterprise and midsized businesses.
In this white paper, we extend our previous research to investigate how enterprise applications, such as ERP systems, affect business performance - in particular end-user productivity. We believe this approach yields particular insight. If IT leads to more profi table sales growth as we have found, which factors drive the productivity of individual users? Which applications are most satisfying to users? And, which applications hold the potential to be more utilized, benefi ting the fi rm's scalability? In short, what is behind the end user's experience with the applications they use, and how do those interactions positively or negatively impact business productivity?
To answer these and other related questions, we evaluate the extent to which end users of ERP applications in production environments feel software makes them productive in ways relevant to them in their day-to-day responsibilities. Does the software help users with the tasks they do every day in a way that is intuitive to them? Does, for example, a warehouse manager feel like this ERP application was designed by a warehouse manager, for a warehouse manager? Is critical business information readily and broadly available to all employees who will benefi t from it? Through this research, we argue that end-user productivity is b... [download for more]