Background of the Study

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The Study Context

In 1983, the Queensland Government Financial Management System (QGFMS) was successfully implemented to provide a common financial management system to all Queensland government agencies. Over the years, the Government reaffirmed strong support for central coordination of financial information systems as a fundamental strategy underpinning sound financial management in the government budget sector. These activities created benefits associated with improved coordination and economies of scale. They include the provision of timely, current information on a government- or sector-wide basis and cost savings in the areas of training, relocation of staff, single-point market investigation, development, and support (Financial Management Strategy, 1994).

Nevertheless, QGFMS must continually evolve to support new initiatives aimed at improving the budget sector's effectiveness. Three related initiatives that continue to shape the Queensland Government budget sector environment are: program management, accrual accounting, and accrual output budgeting. These initiatives are being implemented across the departments under guidelines of Managing for Outcomes (MFO)-an integrated planning, budgeting, and performance management framework (Financial Management Strategy, 1998).

In 1995 an ERP system, SAP Financials, was chosen to become the "new generation" of QGFMS. The SAP system was selected based on the following requirements: the ability to quickly and easily adapt to changes in organizational structures and business environments; and the need for cash, accrual accounting, and year 2000 compliance. By the end of 1999 most Queensland Government agencies had completed their initial SAP Financials implementation.

Motivation for the Study

Although SAP Financials have now been established in some agencies for a considerable period, new issues associated with the system's ongoing support and evolution continue to arise. A standard accounting environment driven by central government (Treasury) regulation, combined with other centrally driven reporting requirements, as well as the same software (SAP) existing across all agencies, provided an excellent opportunity to study ERP-related issues. All key players (software vendors, implementation partners, and user organizations) involved in ERP life cycle implementation, management, and support can potentially benefit from a better understanding of these issues. ERP software vendors seek to redress negative perceptions that ERP implementation duration and costs are difficult to manage, and to improve ongoing customer support and satisfaction. Consulting firms seek to streamline implementation and share in the savings with clients. Both software vendors and consultants seek to increase the size of the ERP market through reduced costs and increased benefits to clients. Also, when software vendors and their implementation partners are more attuned to the issues identified, they will be well placed to further support clients throughout the ERP life cycle. Potential benefits to clients from identifying and analyzing ERP life cycle-related issues include: rationalised and more effective support from both the software vendor and implementation partner; improved ability to react to a changing environment; lower costs; and ERP systems that more accurately reflect business needs.

Information systems management community members (e.g., professional societies, educators, trainers, researchers), who seek to effectively serve their community, must also be aware of major ERP life cycle issues. Professional societies serve the community by arranging conferences, sponsoring guest lectures, and disseminating information through their publications. Educators and trainers need information on key issues to develop graduates with the necessary skills to address these concerns. Furthermore, researchers will be more successful in attracting sponsorship if they undertake studies that are closely aligned to the concerns of the marketplace.

Clearly there is a need for research aimed at identifying and explicating the specific client-centerd ERP life cycle implementation, management, and support issues experienced by different individuals in organizations in order to understand where the organization should focus their resources so that they will able to avoid, minimise, or eliminate these issues. The extensive deployment of ERP in private and public sector and the rapidly growing and changing portfolio of software applications on which the Queensland Government is dependent, magnify the imperative.

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