ERP Benefits Capability Framework: Orchestration Theory Perspective

ERP benefits can be classified as automation, planning and innovation benefits. This research aims to answer two research questions: (1) what are the ERP resources and organizational complementary resources (OCRs) required to achieve each group of benefits? and (2) on the basis of its resources, when should an organization invest more in ERP resources and/or OCRs so that the potential value of its ERP is realised? Evidence from studying 12 organizations in different countries and validating the results with 8 consultants has been drawn upon to develop the ERP Benefits Realisation Capability Framework, showing (1) that each group of benefits requires ERP resources (classified into features, attached technologies and IT department competences) and OCRs (classified into practices, attitudes, culture, skills and organizational characteristics) and (2) that leaping ahead to gain innovation benefits before being mature enough in realising a firm’s planning and automation capabilities could be a waste of time and effort. This research can be used as a benchmark for designing the various blueprints required to achieve different groups of benefits from ERP investments.