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Assessing the benets of using an enterprise system in accounting information and management
Charalambos Spathis and John Ananiadis
Department of Economics, Aristotle University of Thessaloniki, Thessaloniki, Greece
Abstract
Purpose This paper examines the impact of decisions stemming from the new ERP system on the accounting information and management implemented at a large public university in Greece, based on perceived benets according to users expectations and perceptions. Design/methodology/approach Structured questionnaires were used in two measurement points (pre- and post-implementation) in the frame of longitudinal research. The statistical analysis methods employed factor analysis and Cronbachs alpha to evaluate the scale and t-test to assess the signicance of the means values between the two periods. Findings The results show that, one-year post-implementation, users perceptions are more positive compared with their expectations from the pre-implementation period. The empirical data conrm a number of benets derived from the new ERP system, particularly in relation to accounting information and management. The new ERP system signicantly contributes towards increased exibility in information provision, through effective monitoring and exploitation of the universitys assets and revenue-expenditure ow, and improved decision making. Originality/value The empirical evidence can help the university and other public organisations to establish the best way forward in fully exploiting the ERP systems potential as an innovative tool for management. Keywords Manufacturing resource planning, Expectation, Individual perception, Accounting information, Greece Paper type Research paper

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Introduction The widespread adoption of enterprise resource planning (ERP) system by large and medium-sized organisations, described as the ERP revolution (Ross, 1999), has been the source of particular interest in recent times. In many organisations, this has resulted in the replacement of a considerable number of information systems (IS) by one single ERP system. ERP systems are large and complex integrated software packages that support standard business activities (Oliver and Romm, 2002). Recently, universities have turned to ERP systems as a means of replacing existing management and administration computer systems. Since universities have problems common to a wide range of organisations, the standard tools of contemporary organisational analysis and institutional management that include computer systems used by large corporations around the world, such as ERP systems can be similarly applied in their case also (Pollock and Cornford, 2004).
The authors wish to thank the editor and the two anonymous referees of the Journal of Enterprise Information Management for their helpful comments and suggestions.

The Journal of Enterprise Information Management Vol. 18 No. 2, 2005 pp. 195-210 q Emerald Group Publishing Limited 1741-0398 DOI 10.1108/17410390510579918

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In order to put into effect the application of the double entry accounting system at a large public university in Northern Greece (an institution we will refer to as university), a new specic ERP system was installed, which involved the employees, operations and information related to the university. The main characteristic of an ERP system is that it deals primarily with the integration of the nancial operations of a public university, through the implementation of a hybrid double entry accounting system where public and nancial accounting function in parallel. The objectives of the university administration are to improve efciency by operating the ERP system and to full legal requirements as regards the application of a double entry accounting system. Despite the initial foreseen difculties and the objections of the personnel in relation to the ERP, it becomes obvious that the staff from the university accounting nancial sector responded positively to its use. The benets from the ERP system, according to users perceptions, focus on three dimensions in the following order: (1) managerial; (2) operational; and (3) information technology (IT) infrastructure. The purposes of this study are: . to provide empirical evidence, based on an analysis of users expectations/perceptions, on the impact of the ERP system implementation in improving efciency at the university, with particular emphasis on the accounting information and management; and . to check whether the theoretical sources of ERP systems benets were observable in our study. The empirical evidence presented in this paper, along with previous research, can then help the university and other public organisations to establish the best way forward in fully exploiting the ERP systems potential as an innovative tool for management. The paper is organized as follows: the rst section contains a review of the relevant literature. In the following sections, the research methodology and results are presented; and in the nal section, the conclusions and implications drawn from this research are discussed. A review of related literature ERP system benets Generic software packages, such as ERP systems, cover the fullest range of organisational activities and processes and are adopted with the aim of achieving substantial cost savings as well as improved access to tried and tested solutions; they also provide an opportunity to update procedures and align them with perceived examples of best practice (Pollock and Cornford, 2004). An ERP system encompasses a set of business applications (modules) used to carry out common business functions such as accounting, stock control, logistics etc. The essence of a complete ERP system is to automate business processes, share common data across the organisation but, most importantly, to produce real-time data (Nah et al., 2001; Themistocleous et al., 2001). Although conventional IS offer managers services in transaction processing, reporting and provide information for decision-making purposes, these functions appear insufcient in the new business environment where automation, effectiveness

and efciency in operations, plus real-time data are considered important factors for business success (Al-Mashari, 2001; Themistocleous et al., 2001). Furthermore, improved planning and control of operations are also the result of ERP applications. ERP systems are capable of producing real-time information for management to respond to, thus improving control and strategic decision-making (Spathis and Constantinides, 2003). Also ERP systems offer companies the ability to improve their business processes by integrating all the functional areas within an organisation. Determining the benets derived from the implementation of information systems has been an elusive goal for academics and practitioners alike. Irani and Love (2001) proposed a framework for the challenges associated with categorising benets. In a case study of a manufacturing resource planning (MRP) II investment, it was observed that, as one moves from strategically-oriented IS projects through tactical to operationally-oriented projects, the benets accrued go from those that are generally intangible and non-quantitative in nature to more tangible and quantitative ones. A comprehensive framework for assessing the benets of ERP systems is proposed in a study by Shang and Seddon (2000, 2002). This framework tries to classify the types of benet that organisations can gain by using ERP systems along ve dimensions: operational, managerial, strategic, IT infrastructure and organisational. The present study examines the benets related to accounting information and management on a short-term rather than on a long-term basis. That is why it focuses mainly on three of the ve dimensions (managerial, operational and IT infrastructure). Paradoxically, ERP projects are often considered to be strategic imperatives, but are usually justied using operational factors (Murphy and Simon, 2002). A study was conducted in Australia addressing the impact of an ERP system on accounting practices (Booth et al., 2000). The researchers evidence suggests that ERP systems have proved to be quite effective in transaction processing but less effective in reporting and decision support. Granlund and Malmi (2002) argue that a common organisation-wide information structure and integrated information system could produce signicant benets for global organisations. It has been found that ERP systems provide general benets in terms of increased transaction processing efciency, more accessible information of a higher quality and greater support for ad hoc reporting. Evidence from a survey on companies who have adopted ERP systems and their impact on management accounting practice conrms a number of such benets (Spathis and Constantinides, 2002). The most highly-rated perceived benets involve increased exibility in information generation, improved quality of reports, increased integration of accounts applications and improved decisions based on timely and reliable accounting information. Evidence suggests that businesses expect ERP systems to deliver improved company performance. More specically, ERP systems are expected to: . reduce costs by improving efciency through computerisation; and . enhance decision-making by providing accurate and updated organisation-wide information; both of which should then lead to improved company performance (Poston and Grabski, 2001). On the other hand, substantial cost and time overruns, plus organisational problems including employee resistance to change appear as important barriers for ERP system success (Nah et al., 2001, Themistocleous and Irani, 2001; Themistocleous et al., 2001).

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Some studies have tried to address this problem by identifying change management strategies that facilitate the success of ERP implementation (Pardo del Val and Fuentes, 2003). Fundamental sources of resistance to technological change in the form of an ERP system are: . perceived risk associated with decision to adopt the change; and . habit, which refers to current practices that one is routinely using. The present section introduced the topic of ERP system benets, specically as regards their importance in relation to accounting information and management. The framework of ERP system benets by Shang and Seddon (2002)) was chosen as the most representative example in order to assess the benets in accounting information and management, since no relevant framework exists to date in the accounting eld. The next section introduces the topic of expectations and perceptions of IT users. Expectations and perceptions of IT users Information technology (IT) user expectations are potentially an important factor affecting the perceived benets arising from the use of new information systems (IS) (Mahmood et al., 2000). Therefore, it is no surprise that managing user expectations has become a difcult but essential task. Managers who develop effective strategies along these lines can potentially enhance the success from the implementation of new IS (Staples et al., 2002). A recent meta-analysis of factors that inuence end-user satisfaction located several studies that examine the link between user expectations and user satisfaction (Mahmood et al., 2000); and a relative positive association was identied. This suggests that creating high expectations can result in achieving higher user satisfaction. One very signicant limitation of almost all these studies, as pointed out by the authors, was that they were cross-sectional (i.e. measured at one point in time). Expectations were measured following implementation. This method can introduce recollection errors (Lawrence and Loh, 1993), and does not assess the match between expectation and experience. Mahmood et al. (2000) conclude their meta-analysis by calling for more focused research via longitudinal studies at pre-implementation and post-implementation time periods. There are two eld-based studies that have examined the effect of expectations on perceived user benets by measuring expectations prior to the implementation of an IS and views on actual post-implementation use. Ginzberg carried out the rst study in 1981 and Marcolin the second in 1994. In both of these studies, the researchers found that unrealistically high expectations led to lower levels of user satisfaction. In the study by Marcolin (1994), the disconrmation theory, taken from literature on consumer satisfaction, was used to explain user satisfaction. The disconrmation model from marketing literature (Kennedy and Thirkell, 1988), proposed by Churchill and Surprenant (1982), used an individuals perceived expectations, perceived performance, and perceived disconrmation to predict consumer satisfaction. Conrmation of expectations can be made at three possible levels: (1) conrmed when the product performs as expected (expectations match perceived performance); (2) negatively disconrmed when the product performs worse than expected; and (3) positively disconrmed when the product performs better than expected (Oliver, 1980).

Marcolin (1994) compared pre-use expectations of an IS with post-use perceptions of system performance. She found that when the system performed worse than expected, the user satisfaction was lower than if the system had performed as expected. Therefore, as with Ginzbergs (1981) results, and in accordance with the disconrmation theory, Marcolin (1994) found that unrealistically high user expectations were associated with lower levels of satisfaction. Thus, there is stronger support in favour of using the disconrmation theory rather than the cognitive dissonance theory. Staples et al. (2002) have examined the relationship between pre-implementation expectations and their perceived benets based on post-implementation experience. They found that unrealistically high expectations would result in lower levels of perceived benet than those associated with realistic expectations. One set of ndings suggests that high expectations are good; another set of ndings suggests that managers should avoid creating expectations that are unrealistically high. Research questions The present study was undertaken after reviewing existing literature on ERP systems and in view of our experience as consultants for the new ERP system at the university. Its focus is to assess the extent to which the introduction of a new ERP system can assist a public organisation, such as the university, in achieving its aims, while focusing attention on improved efciency in the managerial, operational, and IT infrastructure eld. This study purports to examine the views of users who adopted the ERP system, by comparing pre-implementation expectations with post-implementation perceptions concerning the systems benets to the accounting information and management, as well as its impact on improved efciency at the university. The study was also intended to investigate the relation between how realistic initial expectations were and what their effect was on the perceptions related to the resulting benets from the use of the ERP system. Finally, the study aimed to diffuse the above-mentioned results in order to offer advice to managers and provide guidance for future research. This study examines the following research questions: . What are the perceived benets to the accounting information and management of a large public organisation that derive from the adoption of an ERP system? . How are the perceived benets grouped in relation to the various dimensions? . Are there differences between users expectations and perceptions, as regards the benets to the accounting information and management that are associated with the adoption of a new ERP system? Data In order to provide accurate information, the case study used structured questionnaires in two-measurement points (pre- and post-implementation) in the frame of longitudinal research. We were able to conduct a survey among IT users belonging to the university staff (in the nance and accounting sector), both one month prior to implementation (December 2001) and one year following implementation (January 2003) of the new ERP. To measure individual disconrmation values we required matched responses from university staff that had lled out both questionnaires. During the survey, the questionnaires were distributed, lled in and returned. Each questionnaire was

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accompanied by a cover letter from the university nancial manager asking the recipient to complete the said questionnaire. The same procedure was used during both time periods to collect questionnaires from the same users. The users were asked to express their views on the questionnaire. Questionnaires were sent out to a randomly selected set of 61 users, 43 of which nally agreed to participate in the survey concerning their expectations and perceptions of the new ERP system. This amounted to only about 70.49 per cent of the subjects in the department, since the nancial sector university staff also wanted information related to views of the current system being used. The sample characteristics are summarised in Table I. The questionnaire consisted of three parts: the rst part contained statements (20 items) about the benets of ERP systems to the accounting information and management, based on perceptions and expectations taken from related literature and modied by the authors to suit the university case. A seven-point Likert scale (1 not at all, 7 excellent degree) was created for this study based on three of the ve dimensions linked to ERP system benets (Shang and Seddon, 2000). The second part aimed at building a demographic prole of ERP system users. The third part contained views on training, implementation problems and re-engineering needs related to the ERP system. In order to arrive at estimates of the match between expectations and actual use, we calculated the difference between the respondents post-implementation evaluation of the construct measures and their responses on pre-implementation expectations.
Number A. Personal A1. Gender Male Female A2. Age 25-34 years 35-44 45-54 55-65 A3. Education Secondary School Graduate University Graduate B. Perceptions B1. Training benets Yes No I did not participate B2. ERP system implementation problems Yes No I do not know B3. Re-engineering needs Yes No Per cent

20 23 5 14 20 4 23 20

46.5 53.5 11.6 32.6 46.5 9.30 53.5 46.5

31 7 5 26 5 12 42 1

72.1 16.3 11.6 60.5 11.6 27.9 97.7 2.3

Table I. Users demographic characteristics and perceptions

To establish readability along with face and content validity, the questionnaire was pilot-tested in collaboration with the ERP provider (whom we will refer to as provider) at ve different public organisations prior to implementation. Feedback from pilot-study testing was used to rene the format of the questionnaire items by addition, removal, or rephrasing of items as necessary. The scale was tested for various validity and reliability properties. Construct validity was assessed by both convergent and discriminant validity using factor analysis (principal component analysis with varimax rotation). Discriminant validity was assessed by examining the rotated component matrix to ensure that items did not cross load on multiple factors. Reliability analysis was assessed using Cronbachs alpha. Based on an extensive examination of the psychometric properties of the scale, we can conclude that each variable represented a reliable and valid construct. The statistical analysis methods employed were: . factor analysis to evaluate the scale of measurement related to benets for the university from the ERP system; it was used to combine the characteristics into a smaller number of principal factors and to control the structure and validity of the proposed questionnaire; . Cronbachs alpha was used to assess the reliability of the scale, which provides an indication of the internal consistency of the items measuring the same construct; and . t-test (paired samples) to assess the signicance of the mean values by variable between the two periods (Hair et al., 1992; Zikmund, 1994). Research methodology There is a strong case study tradition in the academic eld of IS management. The case study methodology, which is an umbrella term, does not impose any specic research technique, but rather denes a context (Bell, 1993). Case study is now accepted as a valid research strategy within the IS research community (Klein and Myers, 1999). Case research moves away from rigour towards practicality, which may suggest more relevance for practitioners. The natural setting gives case researchers the opportunity to conduct situational and in-depth studies of complex phenomena that are not always possible because of the restrictions on studies conducted under laboratory conditions. In natural settings, researchers are able to explain more clearly the causal links through real-life interventions, describe the real-life context in which an intervention occurred and explore those situations in which the intervention being evaluated has no clear, single set of outcomes (Yin, 1994). The purpose of a case study is to illuminate a decision or a set of decisions, which conform to the direction of the said research. Universities were chosen for the case study for a number of reasons: universities are substantial and experienced users of IT and a signicant number have emerged as purchasers of ERP systems (Oliver and Romm, 2002); Rands (1992) argued that the requirements for software acquisition vary considerably across different industries. Universities are a specic vertical market targeted by ERP vendors; which conveniently identies stability on the supply side as well as on the demand side. Studies on the implications of ERP systems for universities have been carried out (Scott and Wagner, 2004; Pollock and Cornford, 2004). Cunningham et al. (1998) mention the potential use of ERP in reshaping organisational aspects. Heiskanen et al.

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(2000) have conducted a detailed study of the use of software packages but conclude that such industry standard systems are inappropriate in such a setting, as universities constitute a unique type of organisation. Pollock and Cornford, (2004) suggest that the signicance of these systems would be better appreciated and understood, if we were to resist viewing universities (or, for that matter, computer systems) as stable entities. The case The university under study is today the largest public institute of higher education in Greece and one of the largest in Europe. It consists of 38 departments, comprising ten faculties (schools), with an additional three functioning as independent departments. Its active student population is estimated to be over 60,000. The university also has schools in other parts of the country, which constitute separate universities. According to legislation, all public legal entities, such as the university, must apply the double entry accounting system. This includes the obligation to: (1) Keep corresponding ledgers and issue the proper documentation. (2) Prepare a specic accounting plan that includes three accounting cycles, each functioning autonomously but also in parallel with the other two: . nancial accounting; . cost and management accounting; and . budget accounting. (3) Issue nancial statements, i.e. balance sheet, prot loss accounts, prot distribution and annex. All the above-mentioned procedures should be carried out in conformity with the relevant laws regarding the observance of a specic accounting plan and the issuing of nancial statements by public organisations. Spathis and Ananiadis (2004) have examined the new accounting system in relation to the ERP system reform at the university. More specically, they have examined the allocation of resources to faculties by the university management team using specic criteria (a fund distribution formula), and the measurement of performance indicators, with the accounting contribution emphasized in relation to expenditure over a 12-year period. According to their ndings, the introduction of the new double entry accounting system has resulted in a more equitable allocation of resources at the university, the improvement of productivity in the accounting-nancial departments and upgraded information provision to the university management team. With the application of the new double-entry public accounting system at the university at the end of 2001, a new specic ERP system was installed and operates to date by integrating all accounting and nancial operations. It was the rst time that a large Greek university installed a specialized ERP system and its implementation has become a standard for other universities in the country. The provider, which was assigned the development, installation and support of the ERP system for integrated nancial management, was one of the main Greek software houses, with extensive experience in installing systems within private companies and public organisations. The authors of the present paper also participated in the workgroup. Furthermore, the provider undertook the task of personnel training in collaboration with the university. Because of the inherent nature of ERP packages, training users is critical (Bingi et al.

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1999), since one of the greatest advantages of ERP systems, i.e. the integration of data, can become a double-edged sword when errors are introduced into the system. The university management was strongly in favour of the introduction and effective operation of the new ERP system, and also provided support throughout all phases of implementation leading to successful results. In addition, the management of the nancial department fully comprehended the systems signicant contribution to the accounting process and encouraged the personnel by creating positive expectations as regards subsequent improvements to the public organisations performance. They stated that the new ERP system would encourage the development of procedures and practices more commonly followed in large organisations and known as best business practice:
I think the reason why all larger universities are beginning to move towards ERP systems, is the existing complex environment, which in essence drives large organisations towards the establishment of highly decentralised structures. The operation of the new enterprise system will improve the exploitation of nancial resources and improve all nancial and managerial operations in the university (interview with the universitys nancial director).

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The modules of the ERP system include the following three main categories: (1) Accounting nancial. Double entry accounting system, cost and management accounting, public budget accounting. (2) Procurements of the purchase ofce. Purchase schedule, management of suppliers, offers and contracts. (3) Management information system. Active reports, OLAP online analytical processing, hierarchical data views, query viewer, graph reports. The implementation stage took into account the basic preconditions of entering a minimum of required information on a one-off basis, the particular functional properties of a public organisation, and the needs of management and university faculties as regards information provision. This empirical study focused on IT users among the university staff, since the benets from ERP adoption are directly linked to that user group. The acquisition of new skills, greater job satisfaction and empowerment were presented as the benets from ERP adoption. It was suggested that by participating in the ERP project or working in areas that make use of new administrative systems, staff would acquire new skills for enhancing employment or promotion prospects, as well as job security. It was also suggested that staff empowerment would also be a consequence of the need for more varied and responsible roles required in the implementation of revised business processes. Results and discussion Table I shows the sample distribution as related to personal characteristics and perceptions from the pre-implementation period. Concerning the issue of user perceptions, the majority (72.1 per cent) of users say they have beneted from the ERP system training. As regards ERP system implementation problems, the majority (60.5 per cent) recognizes that these do exist, since the operation of the ERP system is still at the pre-implementation stage. An overwhelming majority, i.e. 42 out of 43 ERP system

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users, also considers that a re-engineering and re-organisation of their departments is essential, within the framework of the new ERP system operation. With the use of factor analysis, we examine the main dimensions that formulate the impact perceptions of ERP system benets to the accounting information and management. As can be seen in Table II, principal component analysis and Varimax with Kaiser normalisation rotation methods pointed to a total of three factors, which explain 74.334 per cent of the total variance. This percentage is particularly high and is considered very satisfactory. The evaluation of the number of factors was carried out using the eigenvalue criterion, which was greater than the unitary (Hair et al., 1992). The analysis revealed a clear structure between the factors and the loadings of the corresponding variables. The Kaiser-Meyer-Olkin measure of sampling adequacy is high, suggesting that factor analysis is appropriate for this data set. Bartletts test of sphericity is large and the associated signicance level is small (zero), therefore it is unlikely that the population matrix is an identity. With regard to the reliability of the scale

Dimensions and items of ERP system benets Factor 1: Managerial benets Q2. Improved follow-up of assets Q1. Improved exploitation of nancial resources Q10. Increased exibility in information provision Q9. Improved cash control liquidity Q15. Improved decision making after timely provision of reliable information Q17. Easier handling of the new programme Q8. Increased effectiveness of internal control Q19. Improved services of suppliers Q20. Increased clarity of nancial management Q14. Necessary integration of functions among departments Factor 2: Operational benets Q6. Improved quality of reports payment orders Q5. Less time for issuing reports payment orders Q4. Less time for document entry Q7. Fewer errors on data entry Q3. Less time for annual closing of accounts Factor 3: IT infrastructure benets Q13. Decreased total operational costs Q12. Personnel re-organisation Q18. Improved maintenance of common databases Q11. Improved document circulation Q16. Improved communication between employees and management Total variance explained (%) KMO Bartletts test of sphericity Approx. Chi-Square df Sig.

Loadings 0.888 0.864 0.757 0.755 0.735 0.728 0.703 0.666 0.650 0.493

Per cent of Cronbachs variance alpha 32.570 0.947

21.069 0.876 0.828 0.817 0.671 0.602 20.695 0.862 0.743 0.717 0.604 0.570 74.334 0.810 843.881 190 0.000

0.895

0.875

Table II. Factor analysis and reliability scores of ERP system benets

measurements in relation to the variables composing each factor, the alpha-Cronbach coefcients were calculated and judged satisfactory between 0.947 and 0.875. High values of Cronbachs alpha indicate high internal consistency of the multiple items measuring each construct and, hence, high reliability of the individual constructs. The rst factor refers to the managerial benets from the ERP system including all relevant items. The item with the higher loading is improved follow-up of assets and is followed by improved exploitation of nancial resources. According to the results, the second most important factor affecting perceptions on operational benets is the impact of the ERP system. The items with the highest loading refer to improved quality of reports and payment orders, and to the decrease in the time needed for issuing reports and providing input. The introduction of the new ERP system results in a substantial reduction of errors, as well as time needed for the annual closing of accounts. The above-mentioned results are incorporated within the important support and exibility structure that the ERP system provides, as well as in the reduction of respective IT costs. The third factor refers to the IT infrastructure benets from the ERP system. The items with the highest loadings refer to the decreased total operational costs, personnel re-organisation and improved maintenance of common databases. The users perceptions presented above point towards a reduction of university operational costs through increased productivity, and a reduction in personnel, as a result of the re-organisation and functional re-engineering that will be required. Table III compares pre-implementation expectations with post-implementation perceptions. In all 20 items, users perceptions during the post-implementation period receive a higher level of mean values compared to those of the pre-implementation period. When applying the test on the paired differences between the mean scores of the two periods, it is noted that in all 20 items, the differences were statistically signicant at the p , 0:000 and p , 0:001 levels. The difference between the two periods can be explained as a result of the great technological void that exists between the old IS and the new ERP system. Based on Windows technology, the new ERP system offers numerous operational solutions and facilitates the work of users when compared to the previous system. Furthermore, resistance to technological change due to habit made the public university users quite reserved, despite the relevant training that took place. The new ERP system contributes signicantly towards increased exibility in information provision; effective monitoring and exploitation of the universitys assets and revenue-expenditure ow, and improved decision-making. Moreover, the quality and reliability of nancial statements is improved, along with the relevant information used to calculate respective indicators. The results as regards the benets of the ERP system agree with the classication of Shang and Seddon (2000, 2002) on this issue. Moreover, they agree with research carried out by Spathis and Constantinides (2002, 2003) and Booth et al. (2000) on the impacts of ERP on accounting processes and contradict Staples et al. (2002), whose users expectations outweighed their nal perceptions. Researchers have often attributed many implementation problems to users resistance to change (Pardo del Val and Fuentes, 2003). Issues related to user expectations thus need to be addressed, since the university has illustrated how instead of increased efciency, there was initially a drop in productivity amongst university staff, as a result of time spent learning about the new system. In this study, one year post implementation, the users perceptions were more positive. The effective training

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ERP system benets 1. Improved exploitation of nancial resources 2. Improved follow-up of assets 3. Less time for annual closing of accounts 4. Less time for document entry 5. Less time for issuing reports payment orders 6. Improved quality of reports payment orders 7. Fewer errors on data entry 8. Increased effectiveness of internal control 9. Improved cash control liquidity 10. Increased exibility on information provision 11. Improved document circulation 12. Personnel re-organisation 13. Decreased total operational cost 14. Necessary integration of functions among departments 15. Improved decision making after timely provision of reliable information 16. Improved communication between the employees and management 17. Easier handling of the new programme 18. Improved maintenance of common databases 19. Improved services of suppliers 20. Increased clarity of nancial management

Preimplementation Mean SD 5.05 5.26 4.40 3.19 3.33 4.09 4.49 4.77 5.07 5.26 4.37 4.21 3.91 4.88 5.07 4.88 4.40 4.70 4.53 5.33 1.73 1.59 1.64 1.74 1.74 1.54 1.39 1.51 1.47 1.63 1.57 1.64 1.66 0.96 1.47 1.45 1.64 1.37 1.65 1.29

Postimplementation Mean SD 5.42 5.56 5.00 4.07 4.21 4.67 5.05 5.21 5.47 5.53 4.91 5.07 4.91 5.35 5.44 5.33 5.05 5.28 5.28 5.98 1.63 1.47 1.60 1.65 1.63 1.55 1.21 1.30 1.32 1.47 1.52 1.39 1.46 1.00 1.18 1.34 1.45 1.22 1.44 1.20

t-testa 2 4.989** 2 3.862** 2 5.444** 2 9.268** 2 8.751** 2 6.089** 2 4.435** 2 4.914** 2 5.240** 2 3.634* 2 5.257** 2 7.598** 2 6.557** 2 4.571** 2 3.722** 2 3.641* 2 4.627** 2 7.638** 2 7.416** 2 6.565**

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Table III. Comparisons of mean values with t-test of pre-implementation expectations and post-implementation period perceptions (paired samples)

Notes: a All paired differences are signicant (two-tailed) at * p , 0:001; ** p , 0:000 Scale: 1 Not at all; 2 Very low degree; 3 Low degree; 4 Average degree; 5 High degree; 6 Very high degree, 7 Excellent degree

that preceded it played a decisive role in familiarizing users with the new ERP system. Managing these particular types of expectation during the early stages of the project should have the most positive benet on user perceptions once the system is implemented. Problems were observed in the implementation of ERP systems in other universities. The main cause was the pressure on staff to rethink many of the existing procedures and concepts according to new business process terms and enterprise terminology, even when this caused confusion and irritation (Pollock and Cornford, 2004; Scott and Wagner, 2004). It is also clear that changes in processes also bring about organisational reforms. That is why ERP systems for universities need to be specically designed to meet their particular requirements and operations. In Greece, this is the rst time that the benets of the ERP system on the accounting information and management of a public organisation (such as a university) have been studied. This case provides a useful illustration of good practice and sets forth the framework for benets related to the accounting processes and management of a public organisation, when ERP is applied. Following the successful implementation of the ERP system at the university, the installation of the same version followed in other Greek universities also. The universitys experience in ERP implementation thus offered a learning opportunity for all those universities seeking a competitive advantage through technology management.

Conclusions and implications The research that was conducted, aimed at locating the dimensions that had an effect on the accounting process and management of the university following the introduction of the new ERP system. The latter was deemed necessary along with the simultaneous application of the double entry accounting system at the university. Thus, the technique of assessing users perceptions was selected, for the reason that the ERP system operation is still in a pre- and post-implementation phase and there is not yet any numerical data available to compare with past situations. The structure of the distributed questionnaire was based on a careful study of the international literature on the subject. According to the results, the benets from the introduction and operation of the new ERP system on the accounting information and management of university were identied according to the perceptions of users from the accounting and other nancial departments. The factor analysis of the benets from the implementation of the ERP system show that managerial benets come rst, operational benets follows, while IT infrastructure benets are in the third position. The university should exploit the above-mentioned positive impacts and use them in order to ensure effective exploitation of its resources, and in relation to its decision-making processes following the direct supply of valid and reliable information. The above case involves a number of managerial implications concerning ERP systems, which are substantiated by the research literature. This study has implications both for public sector organisations and IT professionals, in that it provides some explanation of factors that involve benets to accounting information and management. These results can help the management of public organisations to establish the best way forward in fully exploiting the potential of future ERP applications. This case illustrates how the public sector reforms effectuated for the application of the double entry accounting system at the university have had a radical impact on accounting processes and management. In relation to these changes, the universitys strategic response identied exibility and time (speed) as the main parameters affected. ERP systems are thus now becoming an essential tool for organisations wishing to remain competitive in the education sector, i.e. universities. Nonetheless, ERP systems also offer the opportunity for organisations to re-engineer their activities and revamp their information systems and accounting practices. For the staff, clearly opportunities arise to acquire marketable skills related to the process of installing and using new technology. The ability of a university to teach and conduct research more effectively as an indirect result of installing these systems is also postulated. This suggests that the adoption of ERP systems may, to some degree, be conducive in attaining broad-reaching goals beyond the immediate impact zone of the system itself. Such issues relating to the nature of work and the attainment of strategic institutional goals are important in every institutional context, not just in universities. Several limitations of the study should be addressed. One of these is its relatively small size. The responses can be compared more condently because all survey respondents represent the same level of analysis. This enhances the internal validity of the study. The nding that some potential benets from the ERP system have not been highly rated might be attributed not only to the infancy of these systems but also, to the fact that not all functional areas were integrated yet. In any case, the complexity of

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ERP systems suggests that benets are accrued in the long-term (Poston and Grabski, 2001). It is worth noting that the results of this study pertain to a public university and cannot be compared directly with the respective results of private companies. Future research could focus on other dimensions of ERP system benets such as the organisational and strategic eld. A future study with nancial data could compare the efciency ratios before and after the ERP systems operation at the university in order to evaluate the calculated benets from its implementation. Future research may further examine expected as opposed to actual benets derived from ERP applications (on an individual basis), as well as the impact of technical, organisational and nancial problems in fully exploiting ERP systems within an accounting context. It is plausible that, ERP system implementations require a reformulation of business processes and organisational structures but most importantly a change of management style and culture. Furthermore, collaboration within the organisation and between the organisation and the ERP provider also appears as a critical success factor in ERP applications. In addition, the importance of top management support, including employee training/participation should not be underestimated.
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