Post on 13-Mar-2018
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Research Methods for Business and Management
Working title:
An investigation on effectiveness of Enterprise Resource Planning (ERP) in
enhancing organisational performance of a restaurant chain: A case study on Pizza
Hut, UK.
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Contents 1. Introduction ....................................................................................................................... 3
1.1. Significance of the study ............................................................................................. 3
1.2. Research aim ............................................................................................................. 4
1.3. Research objectives ................................................................................................... 4
1.4. Research questions .................................................................................................... 4
2. Literature review ............................................................................................................... 5
2.1. Enterprise resource planning ...................................................................................... 5
2.2. Need for ERP implementation in restaurant chains ..................................................... 5
2.3. Impact of ERP implementation on operations management........................................ 6
2.4. Impact of ERP implementation on customer service ................................................... 6
2.5. ERP in Pizza Hut and its impact on performance ........................................................ 7
2.6. Conceptual framework ................................................................................................ 8
3. Research design and methodology ................................................................................... 8
3.1. Types of investigation ................................................................................................. 8
3.1.1. Research philosophy ............................................................................................ 8
3.1.2. Research approach .............................................................................................. 9
3.1.3. Research strategy ................................................................................................ 9
3.1.4. Research design ................................................................................................ 10
3.2. Data collection methods ........................................................................................... 10
3.3. Sampling methods .................................................................................................... 12
3.4. Data analysis plan .................................................................................................... 12
3.5. Accessibility issues ................................................................................................... 13
3.6. Ethical issues ........................................................................................................... 13
3.7. Research limitations ................................................................................................. 13
4. Time table ....................................................................................................................... 14
References ......................................................................................................................... 16
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1. Introduction
In modern business organizations, communication and collaboration between
different departments is essential for effective organizational performance.
Enterprise Resource Planning (ERP) systems are used for this purpose in many
organizations (Maditinos, Chatzoudes and Tsairidis, 2011). Elragal and Al-Serafi
(2011) also observe that ERP implementation helps organizations in improving
performance. Halim, Kurniawan and Hartono (2014) on the other hand mention that
ERP implementation is a complex endeavour which sometimes negatively influences
organization performance. Zeng (2010) also point out that ERP systems are
expensive to implement and sometimes increase the complexity of existing process
of the organization. From these statements, it can be assimilated that ERP systems
can influence organizational performance either positively or negatively based on
how it is implemented in the organization. So in the present research, the
effectiveness of Enterprise Resource Planning (ERP) in enhancing organisational
performance in Pizza Hut which has used ERP systems on a wide scale in their
restaurants will be investigated.
1.1. Significance of the study
Pizza Hut has recently rolled out an ERP system to offer superior customer service
through social networking channels. As mentioned earlier ERP systems can
influence organizational performance either positively or negatively. As ERP
implementation is very expensive there is a need to assess its effectiveness in
improving organizational performance of Pizza Hut, UK.
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1.2. Research aim
The main aim of this research is to investigate the effectiveness of Enterprise
Resource Planning (ERP) in enhancing organisational performance of a restaurant
chain. For achieving this case study of Pizza Hut, UK will be carried out.
1.3. Research objectives
To assess the main objectives behind the implementation of ERP system by
organisations.
To assess the effectiveness of operations management after ERP
implementation at Pizza Hut, thereby leading to enhanced performance.
To investigate the efficiency in the customer service at Pizza Hut after ERP
implementation, thereby leading to enhanced performance.
To provide recommendations to Pizza Hut in terms of areas needing
improvement in the customer service.
1.4. Research questions
This research will also try to answer the following research questions.
1. What were the main challenges faced by Pizza Hut while implementing ERP
system in their restaurants?
2. How did ERP system in Pizza Hut influence the performance of employees?
3. To what extent was operations management in Pizza Hut influenced by ERP
system?
4. Was Pizza Hut able to improve the customer service in online channels
though ERP implementation?
5. How can customer service in Pizza Hut be further improved using ERP
system?
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2. Literature review
2.1. Enterprise resource planning
Enterprise Resource Planning (ERP) is a system which is constituted of wide range
of integrated applications that help an organization in collecting, managing,
interpreting and sharing information of business activities across different functions
of the firm (Seo, 2013).ERP systems in restaurant chains is mainly used for
accounting, purchasing, sales, delivery management, employee management etc.,
reports Business Wire (2011).
2.2. Need for ERP implementation in restaurant chains
Tsekouropoulos et al. (2014) lists out two main reasons for adoption of ERP systems
in organizations i.e. technical gains such as replacement of existing systems and
business gains such as improvement in organizational performance.Halim,
Kurniawan and Hartono (2014) point out that restaurant chains mainly adopt ERP
system for reengineering and automating business processes. They also mention
that today’s restaurants cater to customers through multiple channels and provide
diverse products and services. This requires high level of automation in the business
processes of the organization. This is achieved through ERP systems.
Federici (2009) observes that ERP systems improve information availability and
organisational management and also enhance employee collaboration. Reduction in
cost and operation time is also expected from ERP systems. Seo (2013) argue that
ERP systems lead to information integration in the organization and thus improve
organization performance and thereby indirectly help in increasing customer
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satisfaction. From this discussion, it can be observed that organizations seek to
implement ERP systems for achieving many objectives.
2.3. Impact of ERP implementation on operations management
Elragal and Al-Serafi (2011) observe that ERP implementation has positive impact
on performance management due increase in collaboration between different
departments of the company. Huang et al. (2009) also provides similar views. They
mention found that ERP systems reduce costs, facilitate business processes and
improve information management and thereby improve operations management. On
the other hand, Rao and Mandal (2011) opine that ERP systems sometimes
negatively influence productivity in the organization especially when ERP
implementation changes the existing process. Federici (2009) asserts that ERP
systems positively influence the overall business performance but at the same
disrupt some operations of the organization. Esteves (2009) ERP has positive impact
on the performance of an organization in the long term but in the short term it keeps
performance as-is.
2.4. Impact of ERP implementation on customer service
As per Elragal and Al-Serafi (2011), ERP systems help in faster fulfilment of
customer orders and thereby improve customer service. Similalry, Halim, Kurniawan
and Hartono (2014) observe that ERP systems influence customer experience in
restaurants by reducing the time taken for product delivery. This is crucial in
restaurants as customers expect products to be delivered faster. Rao and Mandal
(2011) asserts that the positive correlation between ERP systems and increase
service quality is undeniable even if ERP has no major impact on financial
performance of the company. They also point out that over time employees become
familiar with ERP and hence are able to provide improved services. Based on these
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observations, it can be concluded that ERP system has a definite positive impact on
customer service in organizations.
2.5. ERP in Pizza Hut and its impact on performance
Pizza Hut is one of the leading restaurant chains in UK with more than 700 stores.
The business model of Pizza Hut has two main revenue streams i.e. restaurant and
home delivery. Pizza Hut achieves integration between these two business units
using ERP systems (Pizza Hut, 2015). Pizza Hut was one of the early adopters of
ERP systems and these systems have contributed greatly in the development of
Pizza Hut as a global brand (He, Zha and Li, 2013).
About 30% of Pizza Hut’s home delivery comes from its website. Due to this Pizza
Hut has recently implemented a cloud based ERP that linked its website with other
operations and thereby improving the performance of the company (Pizza Hut,
2015). 30 minutes delivery guarantee is an important part of customer experience
with Pizza Hut. In order to achieve this high level of collaboration among different
business units is necessary. This is also achieved through ERP (He, Zha and Li,
2013).
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2.6. Conceptual framework
Figure 2.1: Conceptual framework
Source: Created by the author
3. Research design and methodology
3.1. Types of investigation
3.1.1. Research philosophy
According to Williams (2011) research philosophy is the initial step and an essential
segment of research methodology which enable the researcher to obtain information
in an efficient and proper way. The three different terminologies of research
philosophy are: Positivism, interpretivism and realism. Positivism philosophy relies
on highly organized methodology to provide quantifiable observations and to analyse
the findings by using statistical tools. Whilst interpretivism is based on believes and
meaning of simple phenomenon and appropriate for almost every research issue. On
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the other hand realism is based on the existence of purposive and external reality
that affects individual’s social behaviour.
Justification: The research tries to find out the effectiveness of Enterprise Resource
Planning (ERP) in enhancing the profitability of fast-food industry, taking Pizza Hut,
UK as cases study. Thus the research philosophy will be positivism as it helps the
researcher to perform the study without biasing it with respect to researcher’s
judgments (Williams, 2011).
3.1.2. Research approach
Research approaches are the actions and tactics for a research study (Crowther and
Lancaster, 2009). The two types of research approaches are deductive and
inductive. In deductive approach, a hypothesis is implemented based on present
theory and then a method is designed to test the hypothesis whereas in inductive
approach a new theory is formed depending upon the research observations
(Mertens, 2009).
Justification: The researcher will be opting for inductive approach for exploring past
studies from a different perspective (Crowther and Lancaster, 2009). The present
research will explore the effectiveness of ERP in increasing the profitability of an
organization which has been researched by several scholars from a distinct
perspective. Thus the researcher will be using inductive approach in this study.
3.1.3. Research strategy
Research strategy provides a path that lead the research in an organized way
towards the research objectives and it can be exploratory, explanatory and
descriptive (Kumar, 2010). Exploratory strategy is adopted when the study aims to
find out “what is happening”, to ask questions, to evaluate findings form a different
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perspective. Descriptive strategy aims to find out answers to what, where, who and
how of the research topic whereas explanatory strategy aims to develop accurate
theory which will be adopted to describe practical generalizations.
Justification: The researcher intends to use exploratory strategy as the study aims to
build up new proposals for future studies (Kumar, 2010). As the present study
investigate the effectiveness of ERP in increasing profitability from a new
perspective, exploratory research will help the researcher to investigate and
elucidate the situation in the research in a more detailed way.
3.1.4. Research design
According to Carsrud and Brannback (2014), research design is a detailed outline of
how a study will be performed and it can be an experiment, survey, action research,
case study, narrative enquiry, grounded theory and ethnography.
Justification: The research will be using survey design as it is highly efficient in
gathering precise information from a large population in a time and cost efficient
manner (Carsrud and Brannback, 2014). Moreover, as stated by Mertens (2009), the
data gathered through survey will be simple to analyze and will enable the
researcher to understand the staff’s opinion on the effectiveness of Pizza Hut’s ERP
in enhancing profitability of the firm.
3.2. Data collection methods
Data collection is the most important process in a research and it includes two types:
primary and secondary data collection methods (Lim and Ting, 2013). Secondary
data collection method evolves the collection of data which are source materials
previously obtained by some other researchers for the study purpose. Secondary
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data’s are collected quickly through referring sources like online articles, books,
journals etc.
As per stated by Khan (2011) primary data collection methods helps the researcher
to do more efficient analysis of the research through collecting fresh information
related to the research matter and it can be qualitative or quantitative. Quantitative
research is an objective and organized process that evaluates the relationship
between variables and translate data into digits for statistical evaluation. Methods
such as case studies, surveys, interviewsetc; used to collect quantitative information.
Justification: The researcher will be using both primary and secondary methods for
exploring the research topic. Secondary data collection method will enable the
researcher to collect information related to ERP and profitability that has already
been gathered by any other researchers for any other purpose. The researcher will
be referring secondary sources such as books, websites, journals etc; to get
secondary information.
The researcher will be using qualitative and quantitative methods for gathering
primary information. Qualitative method will explore the research matter in a
subjective way whilst quantitative method will explore the research subject from an
objective perspective (Lim and Ting, 2013). The researcher will be using qualitative
method ‘interview’ which will enable the researcher to recognize the viewpoint of
mangers of Pizza Hut related to the companies ERP and profitability as they are
highly aware about this. The quantitative method ‘survey’ will be adopted by the
researcher to collect big amount of information from the staffs of Pizza Hut and also
will help to know about their perception about the research matter.
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3.3. Sampling methods
Sampling methods are adapted to choose a group of representative units from a
population, observes Lim and Ting (2013). Probability and non-probability are the
two sampling methods used in research studies. In probability sampling each
individual in the population has equivalent chances of being included in the sample
whereas in non-probability sampling individuals do not have identical chances of
being included (Levy and Lemeshow, 2013). Probability sampling is divided into
simple random, cluster, systematic and stratified random sampling. On the other
hand, non-probability sampling is classified into convenience, quota and purposive
sampling.
Justification: The researcher will be adopting stratified random sampling method for
interviewing 4 managers and 60 staffs of Pizza Hut, UK. As observed by Levy and
Lemeshow (2013) stratified sampling will extend the scope of the study by collecting
distinct opinions of the participants on the research topic and also will reduces the
chances of unreliable sample from large population.
3.4. Data analysis plan
Both primary and secondary methods will be adopted by the researcher to gather
research data. The researcher will be acquiring secondary information by referring
data sources like articles, journals, books etc; related to ERP, current online ordering
channels and their effectiveness in increasing the profitability of fast food
organizations. This analysis will enable the researcher to create proper
questionnaires for primary data collection.
The primary data will be gathered using qualitative and quantitative methods.
Analysis of qualitative data will be carried out manually and the analysis of
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quantitative data will be performed with the help of pie charts, tables and bar charts
as this will help the researcher in presenting obtained information in a simple and
understandable manner. Moreover, Microsoft-Excel worksheet will be using for
entering quantitative information.
3.5. Accessibility issues
In this research, the researcher will be facing constraints related to the accessibility
of both primary and secondary information. The issue in primary data accessing will
be related to interviewing managers and surveying staffs of Pizza Hut. Since, Pizza
Hut is a multinational organization; it will be difficult for the researcher to obtain
access to the managers and staffs as they will be busy in peak hours. This will in
turn affect the preciseness of data and in such cases the researcher will conduct
primary data collection at a faster rate with respect to participant’s convenience.
3.6. Ethical issues
The researcher will strictly follow the research ethics and will respect and give equal
importance to all the participants in the research. Prior to the commencement of the
research, the researcher will be providing a detailed outline of the research and will
not force any person to participate in the analysis. Moreover, the researcher will also
keep the confidentiality and privacy of collected data as well as details of the
participants.
3.7. Research limitations
According to Denscombe (2010), constraints related to time and cost are frequent in
any research. Due to lack of cost and time, the sample size is reduced and there is a
possibility to miss the viewpoints of entire Pizza Hut’s functioning on a global scale,
which will in turn impact the accuracy of information. Since the research focus on
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evaluating the subject matter from a distinct perspective, the scope of the research
will also be limited.
4. Time table
No. Works/
Duration
April-
2015
May-
2015
June-
2015
July-
2015
August-
2015
Septemb
er-
2015
Weeks 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5
1. Selectin
g
appropri
ate
research
topic
2. Researc
h
proposal
preparati
on and
submissi
on
3. Chapter
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1:
Introduct
ion
4. Chapter
2:
Literatur
e review
5. Chapter
3:
Researc
h
methodo
logy
6. Chapter
4:
Data
collectio
n
7. Chapter
5:
Data
analysis
8. Chapter
6:
Conclusi
16
ons and
recomm
endation
s
9. Creating
table of
contents
,
abstract,
acknowl
edgeme
nt and
referenc
e
10. Review
and
submissi
on
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