Determination of Key Performance Indicators with Enterprise Resource Planning Systems in Engineering Construction Firms

Abstract

The study focuses on developing a unified approach to define information specificities for key performance indicators (KPIs). Borrowing from the time-system theory, the paper defines different types of KPI and identifies that a KPI has two dimensions—knowledge specificity and time specificity. Different approaches are presented to analyze knowledge and time sensitivities. This paper addresses a key question related to enterprise resource planning (ERP) systems applications in the engineering construction industry: what are the areas of business processes within the engineering construction industry where ERP cannot be used to collect KPIs related to business processes? The writers review empirical and specialized processes within the construction industry to identify business processes not covered by existing ERP systems. A survey focused on qualitative aspects of ERP systems implementation in engineering construction firms was conducted among ERP-enablers in the construction industry and provided a basis for the presented case study. Data collected are from major engineering and construction firms in the United States and therefore the results are relevant for researchers and industry practitioners concerned with application of enterprise management systems in the respective firms.