Changes in the Use of ERP Systems Supporting Enterprise Logistics in Poland Sectoral Analysis

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1 A. Mesjasz-Lech Changes in he Use of ERP Sysems Supporing Enerprise Logisics in Poland Secoral Changes in he Use of ERP Sysems Supporing Enerprise Logisics in Poland Secoral Agaa Mesjasz-Lech Czesochowa Universiy of Technology, Poland Absrac: Markes globalizaion, consumer behaviour and fas developmen of producs forced changes ino running a business. Cooperaion wihin supply chains, srenghening bonds wih cusomers and opimal resource planning are fundamenal o he funcioning of businesses. The realizaion of hese aciviies is possle hrough informaion echnologies, especially hose supporing businesses in erms of logisics. The level of complexiy of logisic processes is conneced wih a paricular secor. The goal of his work is o deermine he scale of Enerprise Resource Planning (ERP) sysems use in enerprises across individual secors. The shif-share analysis is used. The analysis embraces he years The number of companies using ERP sysems aced as variables and he daa were shown by secors. The resuls of he shif share analysis poin o he growing rends in he number of businesses using ERP sysems. Relaively speaking, he bigges poenial in erms of he analyzed variable was observed in he indusrial processing and rade and repair secors, alhough hese secors are a he same ime less compeiive ha he ohers. We can conclude, herefore, ha hese secors are no he domineering ones in erms of complexiy and he inensiy of he realizaion of processes suppored by ERP sysems. Keywords: logisics, shif-share analysis, ERP sysems 1 Inroducion The developmen of informaion echnologies (IT) brough major changes ino operaing a business. The phrase informaion echnologies denoes mechanisms whose goal is o improve he funcioning of complex supply chains and he coordinaion of processes realized wihin hem (Naivi and Lee, 2012, p. 366, Ko, 2013, p. 51). They are necessary in he managemen of supply chains (Li e al., 2009, p. 125) mainaining relaions wih cliens (Srzelecka, 2012, pp ), and maximizaion of business benefis (Szaj, 2006). Informaion echnologies have differen influence on he aciviy of businesses as hey can lead 181

2 Managemen, Enerprise and Benchmarking in he 21 s Cenury Budapes, 2016 o: Developmen of creaiviy, Corporaion sraegy suppor, Organizaion ransformaion, Creaion of an organizaion or increase of is value, Shaping he planning process and oher business processes, Knowledge inegraion, Organizaional inegraion (Besson and Rowe, 2012, pp ). Informaion echnologies supporing he inegraion of logisics processes include Enerprise Resource Planning (ERP) sysems which ac as sources of up-o-dae informaion in an enerprise managemen. And ha is how he sysems suppor he logisics of an enerprise. Invesmens ino IT are ofen conneced wih he implemenaion of ERP sysems (Thompson e al., 2014, p. 109). The sysems are used in order o increase he effeciveness of an enerprise (Keramai e al., 2013, p. S29) which is possle hrough he roles he ERP sysems play in an enerprise. Enerprise resource planning sysem is an informaion sysem supporing and inegraing he funcioning of many business areas wihin an enerprise (Parhasarahy and Sharma, 2014, p. 1009, Ruivo e all., 2014, p. 167, Lepisö, 2014, p. 194, Madapusi and D Souza, 2012, p. 24). The implemenaion of he sysem resuls in a beer disruion of resources and he increase of effeciveness of enerprise managemen (Tasevska e al., 2014, p. 529). In conras o classic enerprise managemen sysems, ERP sysems were designed o suppor business processes beween muliple cooperaing enerprises in he firs place. The inensiy of he cooperaion and he need for ERP sysems use ofen depends on a paricular secor in which a company operaes. Belonging o a given secor deermines he ype of processes realized in an enerprise. The goal of he aricle is o deermine he scale of enerprise resource planning sysems use in enerprises across individual secors. The aricle pus forward he following hese: he naure of changes in he use of ERP sysems is varied depending on belonging o a paricular secor. 2 Research Mehodology To examine he diversiy across secors we used he shif-share analysis. This mehod allows o analyze he level of economic developmen on a given area juxaposed wih a reference area in he conex of he level of developmen of individual secors and changes in ha developmen (Suchecki, 2010). The mehod assumes a decomposiional approach which allows o assess he influence of he individual componens on he final assessmen of he posiion of a given secor wih reference o he whole area, and allows o diagnose he sources of change in secors. In order o carry ou a shif-share analysis he following elemens were specified: 182

3 A. Mesjasz-Lech Changes in he Use of ERP Sysems Supporing Enerprise Logisics in Poland Secoral 1. Analyzed area poenial (AAP) naional share which deermines he changes of he analyzed variable in secors wih he assumpion ha hey develop in a empo similar o he reference area. 2. Enerprises srucure (ES) indusrial mix which characerizes he porion of changes which comes from he general endency wih he analyzed feaure, and where a posiive value means a beer srucure in he examined area han in he reference area. 3. Analyzed area compeiiveness (AAC) regional shif which descres changes in erms of he analyzed feaure caused by a compeiive posiion of enerprises in secors and, hereby, indicaes he difference beween he increase index in he analyzed area compared o he reference area. The following formulas were used (1)-(3) (Sanarek and Szerenos, 2006): AAP AAC E 1 E 1 E Er r 1 1 E Eir 1 E Eir 1 (3). (1), ES E 1 Eir E 1 Eir Er E r number of enerprises using compuers in heir aciviy in he reference area r (Poland), E ir number of enerprises in erms of he analyzed variable in he reference area r in he group i according o he cross-secional division, E number of enerprises in erms of he analyzed variable in he reference area b (individual secors) in he group i according o he cross-secional division, -1 he firs year in he analyzed period, he las year in he analyzed period. The division is consisen wih he classic shif-share model (Knudsen, 2000, Zaccomer, 2006). The sum of he componens AAP, ES and AAC is he so called oal shif (TS) which represens he acual change of a given variable in he year compared o he year -1. The analysis embraced he years The daa come from he Polish Cenral Saisical Office (GUS, 2015). The analysis involves he number of companies using ERP sofware packages for ransmiing informaion beween differen deparmens (e.g., accouning, markeing, producion). The enerprises were divided according o differen secions: S1 indusrial processing, S2 - producion and he supply of elecriciy, gas, seam and ho waer, S3 - waer supply, sewerage and wase managemen, remediaion, S4 - consrucion, S5 rade and repair, S6 - ranspor and sorage, S7 - accommodaion and caering, S8 - informaion and communicaion, S9 - financial and insurance aciviies, S10 - real esae, S11 - professional, scienific and echnical aciviies, S12 - adminisraion and suppor service aciviies, S13 - repair and mainenance of compuers and communicaion equipmen, S14 ICT secor. r 1 (2), 183

4 Managemen, Enerprise and Benchmarking in he 21 s Cenury Budapes, Research findings As far as he number of enerprises using ERP sysems for he decision making process suppor is concerned, in Poland we observe significan change dynamics. In he whole period here was an annual average increase of he number of enerprises using ERP sysems. The changes visle in he number of all companies using ERP sofware packages for ransmiing informaion beween differen deparmen (on annual average by 17.57%) were conneced wih changes in small enerprises (on annual average by 22.51%). The scale of use of ERP sysems in Poland is conneced wih he size of a business and a paricular secor. ERP sysems are mos ofen used by big enerprises and leas ofen by small ones. Profiabiliy of using he sysems in large businesses is conneced wih he greaer scale of business aciviy, broad cooperaion and he complexiy of processes realized wih he help of informaion echnologies. In Poland, however, he use of ERP sysems is generally limied as only 21% of enerprises. Leading secors in erms of using ERP sofware packages for ransmiing informaion beween differen deparmens (e.g., accouning, markeing, producion) are indusrial processing and rade and repair % of all enerprises using ERP sysems belong o hese secors. Shif-share analysis allowed o cas some ligh on o wha exen, if a all, he resuls of individual secors in erms of using ERP and CRM sysems are differen, and if hey also differ from general processes aking place in Polish businesses which use compuers. The analysis covers he period of The resuls are presened in able

5 A. Mesjasz-Lech Changes in he Use of ERP Sysems Supporing Enerprise Logisics in Poland Secoral Secor The level of componens Real change AAP ES AAC TS S S S S S S S S S S S S S S Toal Table 1 Componens of shif-share analysis for he number of companies using ERP sofware packages for ransmiing informaion beween differen deparmens (e.g., accouning, markeing, producion) in Poland in he period Source: own elaboraion. The resuls show an upward rend in he number of companies using ERP sofware packages for ransmiing informaion beween differen deparmens (ab. 1.). In 2015 naionwide, he number was higher by han in Individual analysis componens perain o differen change aspecs. The firs one reveals changes resuling from he general economic condiion of he counry and confirms he expeced change (increase or decrease) in he number of enerprises using ERP sysems wih he assumpion ha he growh in his respec in individual secors is comparable wih he developmen of Polish enerprises using compuers in general. AAP value exhis a growing pace of he naional increase in he number of companies using compuers, bu he growh is more han eigh imes smaller han he growh in he use of ERP sysems. Posiive AAP value in all secors means ha ERP sysems use has a growing endency. Assuming a similar pace of change in he use of ERP sysems in secors and compuers in he counry in general, each secor should see an increase in he number of enerprises using ERP sysems which was rue wih all analyzed secors (posiive TS value). Indusrial processing and rade and repair secors were relaively he mos poen secors in erms of he analyzed area. The number of enerprises could be poenially increased by and respecively (i.e. by 34.6% and 33.2%). No oher secor came close o his kind of poenial. Ranked 185

6 Managemen, Enerprise and Benchmarking in he 21 s Cenury Budapes, 2016 hird, he consrucion secor, displayed a value five imes smaller. The leas desirable oucome was observed wih he repair and mainenance of compuers and communicaion equipmen secor where he poenial increase of he number of businesses using ERP sysems was only The srucural componen (ES) of he oal shif shows he changes in he number of enerprises using ERP sysems in comparison o he reference area, i.e. he whole counry. These changes come from he differences beween he dynamics of he increase in he number of businesses using ERP sysems in secors and he dynamics of he increase in he number of Polish enerprises using compuers in general. This shif-share analysis elemen had he bigges influence on he posiive oal shif. The componen reached is highes value in he secors: indusrial processing and rade and repair, and is lowes value in he secors: repair and mainenance of compuers and communicaion equipmen. The hird componen (AAC) shows eiher a decrease or increase of he analyzed variable caused by a compeiive posiion of enerprises in secors, and for ha reason i is reaed as an indicaor of he secor economy srengh or weakness. Looking a he posiive AAC value we can conclude ha here is a sronger secor compeiiveness among enerprises using ERP sysems when compared o companies using compuers in Poland. The same resul repeaed in nine secors. Unforunaely he lowes AAC value occurred in he secors wih he bigges acual change (highes TS value) which means ha he compeiive posiion in hese secors in erms of he analyzed variable is weaker han in he case of he counry. This is due o he fac ha here are secors where he use of ERP sysems is more desirable because of some business processes, e.g. in he secors: informaion and communicaion, ranspor and sorage. These secors realize ypical logisic processes, and he subjec lieraure ofen calls hem he logisics secor. Conclusions Implemening informaion echnologies makes enerprises more responsive o he changing environmen. And if applied o he supply chain, IT improve companies resisance o malfuncioning of any of heir parners and allow o conrol he level of resources a individual parners opimally. The need for he implemenaion of ERP sysems, which suppor he realizaion of logisic processes, resuls direcly from he aciviy of an enerprise. The main aciviy of a business, which influences he complexiy of logisic processes, is he key deerminer of which secor i belongs o. In he period here was a dynamic increase in he number of enerprises using ERP sysems. The bigges annual average increase was observed in he case of small companies which are 186

7 A. Mesjasz-Lech Changes in he Use of ERP Sysems Supporing Enerprise Logisics in Poland Secoral he fases developing eniies in his respec. However, his significan increase in he use of ERP sysems in small companies can be parly due o he annual average increase in he number of such enerprises in Poland in he years and a simulaneous average annual drop in he number of medium and large enerprises. Ye sill, in Poland i is medium and large sized enerprises ha implemen ERP sysems mos ofen because using advanced informaion echnologies for logisic processes is profiable. The scale of hese processes in medium and large sized enerprises is much bigger han in small ones. The shif-share analysis resuls indicae growing rends in he number of companies using ERP sofware packages for ransmiing informaion beween differen deparmens. Relaively, he bigges poenial in erms of he analyzed daa was observed in he indusrial processing and rade and repair which is conneced wih he fac ha hese secors conain he larges number of enerprises using ERP sysems. A he same ime, hough, hese secors are characerized by a weak compeiive posiion in comparison o he oher secors and he counry. I means ha hey do no dominae in erms of he complexiy and he inensiy of he realizaion of processes suppored by ERP sysems. In Polish enerprises logisics is sill hough of as conneced wih ranspor and warehousing. Ye markes globalizaion and compeiiveness increase render cusomer service, auomaion and simplifying cusomer communicaion imporan which will resul in cusomer s saisfacion and loyaly. References [1] Besson Paric, Rowe Franz: Sraegizing informaion sysems-enabled organizaional ransformaion: A ransdisciplinary review and new direcions, Journal of Sraegic Informaion Sysems, Vol. 21, 2012, pp [2] Wykorzysanie echnologii informacyjno-(ele)komunikacyjnych w przedsiębiorswach i gospodarswach domowych, hp://sa.gov.pl/obszary-emayczne/nauka-i-echnika-spoleczenswoinformacyjne/spoleczenswo-informacyjne/wykorzysanie-echnologiiinformacyjno-elekomunikacyjnych-w-przedsiebiorswach-igospodarswach-domowych-w-2012-r-,3,11.hml, GUS, Accessed: [3] Keramai Abbas, Nazari-Shirkouhi Salman, Moshki H., Afshari-Mofrad Masoud, Bernei Eisa Maleki: A novel mehodology for evaluaing he risk of CRM projecs in fuzzy environmen, Neural Compuing and Applicaions, Vol. 23, Suppl. 1, 2013, pp. S29 S53 [4] Knudsen Daniel C.: Shif-share analysis: furher examinaion of models for he descripion of economic change, Socio-Economic Planning Sciences, Vol. 34, 2000, pp

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10 Managemen, Enerprise and Benchmarking in he 21 s Cenury Budapes,