Health Informatics

Enterprise resource planning systems (ERPs) are systems offering the integration of a number of organizational activities into one accounting information system (Romney and Steinbart, 2000). ERPs are a fast-growing section of overall information technology (IT) investments, with annual sales estimated in excess of $21 billion (Brown, 2001). ERPs present an organization with operational and technical advantages, as well as a set of tangible and intangible financial benefits (Sandoe et al., 2001). Although commonly considered the domain of large publicly-traded organizations, ERPs provide solutions to both large and small organizations (Mabert et al., 2000). In addition, ERP vendors provide services to a broad range of industries, including health care (Bergman, 1995; Moltzen, 1996). Investing in information systems positively contributes to productivity within the health care industry (Menon et al., 2000). Building on the concept of success factors introduced by Daniel (1961), Rockart (1979) presented critical success factors (CSFs) as an aid to help management focus its time and effort by monitoring results in those areas that are most important in helping attain organizational goals. When CSFs are The current issue and full text archive of this journal is available at appropriately identified, they represent areas in which excellent performance is essential to continued organizational success. Monitoring CSFs is a form of ‘‘management by objective’’ – monitoring those objectives or activities that have been identified as being essential to the continued wellbeing of the entity. Hospitals must be able to identify their CSFs (Kamter, 1983) as well as monitor performance and measure results in activities directly related to the CSFs. Identification of CSFs is essential for the continued survival of an entity. Being able to monitor performance in the areas identified as vital for continued survival should be a high-priority task for management. ERP systems, if appropriately designed, can provide management with the information needed to monitor performance and measure results in meeting entity goals. In addition to the benefit of CSFs in identifying areas on which to focus projects, CSFs also play a role in the implementation of ERPs (Holland and Light, 1999).Tillal Eldabi, Zahir Irani and Ray J. Paul Previously published in: Journal of Management in Medicine, Volume 16, Number 2/3, 2002