The Security Forces Hospital Program in Saudi Arabia - Dissertation Example

? Research Proposal CSFs, Benefits and Barriers during the Implementation of ERP in the Security Forces Hospital Program (SFHP) from the Management Perspective Total Number of Words: 2,522 Chapter I – Introduction This aims to determine how the Security Forces Hospital Program (SFHP) in Saudi Arabia can successfully implement and maximize the benefits of the Enterprise Resource Planning (ERP) system. Aside from providing a short background on SFHP and the need to consider implementing ERP system, this paper will summarize the research aim, research objectives, research justification, research scope, summary of relevant literature, proposed research methodology, research ethics, and strategies that will be use in collecting data. The implementation of ERP system within a hospital setting is unique due to the fact that healthcare organization such as the case of a hospital is often divided into heterogeneous functional areas (i.e. Human Resources, Financial and Cost Management, Patient Care Management, and Clinical Management among others). To give the readers a better understanding of this subject matter, this study will first discuss what ERP is all about followed by identifying the hospital management benefits associated with the use of ERP system. Although the process of customizing the development of ERP will enable the healthcare administration of SFHP to incorporate specific hospital rules in the system, the implementation of ERP systems can lead to the development of organizational conflicts. Therefore, to increase the success rate of using ERP systems, this study will intentionally identify barriers that could make the implementation of ERP system unsuccessful followed by providing a list of recommendations on how to effectively manage these barriers. Background on the Security Forces Hospital Program (SFHP) and the Need to Consider Implementing ERP System Fully funded by the Ministry of Interior (MOI), SFHP is one of the major hospitals in Saudi Arabia that has more than 500-bed capacity that provides a wide-range of medical services (Security Forces Hospital Program 2012a). SFHP managed to excel in the provision of continuous care to their patients. By continuously utilizing the best available resources and improving team work of healthcare professionals, the SFHP will be able to deliver safe and high quality health services to the local people (Security Forces Hospital Program 2012b). To integrate internal and external information that are useful in making necessary business and management decisions, the ERP system involves the use of information technology (Bidgoli, 2004, p. 656). Although implementing ERP system can be useful in terms of integrating the hospital management system of SFHP, there will always be some challenges associated with the implementation of ERP system. Considering the future business benefits associated with the process of investing on the customization of ERP systems, this study will carefully examine how the development and implementation of ERP systems could further improve the quality of medical services provided by the healthcare professionals who are currently employed at SFHP. Research Aim This study aims to identify the CSFs and to examine the benefits and barriers and difficulties related to the possible implementation of ERP at SFHP. Research Objectives In relation to the research am, the following objectives will be used as a guide throughout the completion of this study: 1. To conduct a literature review with regards to the critical success factors (CSFs), benefits and barriers of a successful ERP implementation; 2. To determine how the SFHP can maximize the benefit of implementing a newly customized ERP system; 3. To establish if these CSFs exist at SFHP; 4. To identify potential benefits and barriers to a successful ERP implementation at SFHP; and 5. To provide a list of recommended actions when managing the barriers to a successful ERP system. Research Justification This is a shortage of ERP studies in Saudi. Despite a long list of management benefits associated with implementing an ERP system, several studies revealed that the implementation of a customized ERP system will not always be successful (Morton and Hu 2008, p. 391; Yongbeom, Lee and Gosain, 2005, p. 158). In fact, several studies revealed that the inability of the business managers to benefit from the ERP system is a total “waste of time and money” (Ganesh and Mehta, 2010, p. 55; Vilpola, 2008, p. 11). The actual investment behind the development of ERP system requires a large sum of money. Given the fact that not all business organizations are able to benefit from the use of ERP systems, it is crucial on the part of the researcher to learn more about the healthcare management benefits that the SFHP can receive out of investing on this particular information technology. In general, ERP software can be utilized in order to improve the SFHP’s hospital management and administration. To do so, Wagner and Newell (2006, p. 40) strongly suggest the need to control internal conflicts which may arise out of implementing the use of the ERP system. By learning more about the possible barriers that could make the implementation of ERP system unsuccessful, the researcher will be able to provide a list of study recommendations which will enable the healthcare administration of SFHP minimize the risk of ERP implementation failure. Research Scope The scope of this study is to identify the CSFs behind a successful ERP implementation and possible barriers that could hinder a successful ERP implementation at SFHP. To determine how SFHP in Saudi Arabia can maximize the implementation of a customized ERP system, this study will gather the perspectives of SFHP’s top management only. (See Appendix III – Outline Research Strategies on page ) Summary of Relevant Literature Often utilized to integrate core business information (i.e. accounting and finance, sales and marketing, production, purchasing, human resources, etc.), ERP is classified as type III innovation on information system (Sambamurthy, Bharadwaj and Grover 2003, p. 237) In line with this. Escobar-Perez, Escobar-Rodriguez and Monge-Lozano (2010, p. 34) defined enterprise resource planning (ERP) is “a system that integrates information from different departments in one common database for an entire organization” to access. With the use of ERP system, the hospital administration staffs of SFHP can easily gain access not only to the patient’s healthcare information but also other sensitive information related to its day-to-day business transactions. One of the most obvious advantages of using ERP system is that this particular information technology will enable the hospital administration to easily gather and integrate business information related to accounting and finance, sales and marketing, production, purchasing, human resources, inventory and the actual demand for specific healthcare service among others. Using the ERP system, the hospital administration staff of SFHP can easily respond to the queries of each patient with regards to their prescribed medicine, treatment and care, exact date of confinement, name of physicians, and hospital bills among others. One of the main advantages of implementing the use of the ERP system is that the process of integrating hospital-related information on a 24/7 real-time basis. This will help the hospital administrator to improve the accuracy and efficiency of information which flows between and among the different organizational units of a hospital. Since the ERP system will make all business-related information available under a single database, Escobar and Escobar (2010, p. 104) revealed that investment on ERP system will help reduce the hospital’s fixed administrative cost in the long-run. In other words, investment on ERP system can increase the competitive advantage of a hospital as compared to other health care facilities without ERP system. To enable the hospital administration serve the healthcare needs of the people, a single IT structure such as the ERP can be used to integrate business processes and the major function of different healthcare departments. The information gathered from this system will provide the hospital administration with a more holistic view with regards to the healthcare organization’s profitability, daily operation performance, and the need to invest on new medical equipments (Kronbichler, Ostermann and Staudinger, 2010, p. 282). In maximizing the benefits of ERP system, Yongbeom, Lee and Gosain (2005, p. 158) strongly suggest the need to focus on the functional coordination of each staff when implementing the system. For instance, registered pharmacists who are currently working for a hospital can benefit from ERP system by making it easier for them to manage the inventory of medicines and other related equipments which can be use in the provision of treatment and care for the patients (Rubin 1999, p. 12). Furthermore, information coming from the ERP system will allow the registered pharmacists coordinate with the centralized purchasing department to avoid ordering specific drug more than its demanded quantity (Danas, Roudsari and Ketikidis 2006, p. 772). By carefully monitoring the available supply of drugs, the registered pharmacists will be able to avoid selling medicines that has reached the expiry date. There are quite a lot of barriers that will lead to unsuccessful ERP implementation. One of the most common barrier to a successful ERP is lack of coordination due to the presence of resistance-to-change (Yongbeom, Lee and Gosain 2005, pp. 159 – 160). Each time a healthcare organization implements the use of information technology; there will always be a small portion of the stakeholders who may show signs of negative attitude and behaviour. In most cases, the presence of negative attitude and behaviour towards the implementation of a new ERP system often impedes the success rate of implementing the system (Hussain and Hafeez, 2008, p. 490). When implementing the use of ERP system, it is expected that the hospital administration together with the human resource manager will have to modify the job function of each hospital staff. Since most of the hospital staffs are unfamiliar with the management benefits of ERP system, the process of modifying the job function of each hospital staff can lead to confusion and/or fear of losing their job. In some cases, hospital staff may feel that the implementation of the ERP system will make his/her individually assigned tasks and obligations become obsolete or unnecessary (Gundogar, Aydin, and Sunter et al. 2010, 87). As a result, the hospital staff’s weak acceptance and unwillingness to participate or collaborate are among the common attitude and behaviour which can be noticed when resistance-to-change is present during the implementation of the ERP system. Values and CSFs are crucial to the success of ERP implementation. In line with this, Akkermans and Helden (2002, p. 35) explained that the presence of inter-departmental collaboration and two-way communication among different departments is necessary when implementing a customized ERP system. Since resistance-to-change serve as a barrier the success of implementing ERP system, several studies mentioned that the success of implementing the ERP system is highly dependent on the top management’s support and commitment towards the integration of information and different functions within the hospital setting (Escobar and Escobar 2010, p. 104; Berchet and Habchi 2005, p. 588). To be able to effectively persuade the rest of the hospital staff to support the implementation of ERP system, the hospital administration together with the project manager and software developers should all demonstrate a positive attitude with regards to the implementation of ERP (Escobar and Escobar 2010, p. 104). It is expected that most of the hospital staffs are unfamiliar with the management benefits of ERP system. To make the hospital staffs learn more about the advantages and proper use of the ERP system, Escobar and Escobar (2010, p. 104) strongly suggest the need to provide necessary awareness campaign and future training development programme. By doing so, the hospital administration and its human resource manager could easily control the presence of resistance-to-change. Furthermore, several studies clearly explained that the provision of proper education through trainings will convert the hospital staff’s fear of losing their current employment into a sense of new hope particularly when it comes to improving the quality of the organization’s healthcare services (Escobar and Escobar 2010, p. 104; Glouberman and Mintzberg 2001, p. 70). Proposed Research Methodology The attitude and point-of-views of SFHP’s managers with regards to the implementation of ERP system can significantly affect the success or failure of implementing the system. Therefore, to determine how SFHP in Saudi Arabia can maximize the implementation of a customized ERP system, this study will conduct a research interview with two top management officials and distribute research survey questionnaires to department managers. (See Appendix I – Summary of the Explanatory Non-Experimental Research Survey Questionnaire on page 15) In conducting the research interviews, a semi-structured research questionnaire was created for this study (Bryman and Bell, 2003, p. 13). Regardless of age, gender, and nationality, the census of the qualified interviewees for the research interview are the assistant director general for medical affairs and assistant director general for executive affairs of SFHP with some knowledge on ERPs. To increase the success rate of research findings and analysis, this study will compare the research interview results with the gathered literature review. (See Appendix II – Summary of the Semi-Structured Research Interview Questionnaire on page 16) In analyzing the quantitative data, the researcher will use Excel spreadsheet to compute for descriptive statistics (i.e. frequencies and percentage). In line with this, Bryman and Bell (2003, p. 265) described a descriptive statistics as a method used in summarizing a set of samples being observed in the actual research study. Because of the limited sample size used in the actual quantitative research study, the researcher will purposely analyze the quantitative research findings together with the gathered literature review and some of the descriptive explanations provided by the qualified research interviewees. Sources of Data To increase the success rate and validity of the literature review, this study will gather data coming from ERP assessment related journal articles, RM’s articles and books, ERP’s CSFs related up-to-date journal articles in the healthcare sector, medical and management journals. Using key words such as enterprise resource planning system, ERP implementation, ERP critical success factors, ERP barriers, and ERP health care institution, this study will utilize the university’s library together with some online databases such as emeraldinsight, palgrave macmillan, and SpringerLink among others. As part of gathering peer reviewed journals, this study will make use of journals that has been published between 2001 – 2012. For the primary research study, data will come directly from the research interviews with SFHP’s top management officials. Research Ethics It is important not to disrespect the target research respondents by not violating their dignity, autonomy and privacy. Furthermore, Bryman and Bell (2003, p. 512) mentioned that disclosing a confidential information is a breach of confidentiality. To avoid legal sanctions, the researcher will not reveal the personal information (i.e. name, address, contact number) of the research survey respondents to the public (Biggs 2010, p. 101). Rather than interpreting the actual research findings per person, the researcher will purposely analyze the gathered research information using a more generalized analysis approach. It is also unethical to manipulate the research study results (Bryman and Bell, 2003, p. 39). To avoid falsifying and/or misrepresenting the research interview results, the researcher will record the conversation with the highly qualified research interviewees to ensure that all data provided is available when analyzing the research findings. In respect to informed consent, a signed consent form will be attached in this study to prove that the researcher was able to receive permission from the SFHP administration. Dissertation Timescale To ensure that the proposed research study will be completed on a timely basis, the following proposed dissertation timescale will be used in monitoring the development and progress of key research activities: Schedule Research Activities April to May Draft research aims, objectives, and proposed methodology Conduct the actual literature review Formulate research interview questionnaire Formulate research survey questionnaire Seek permission from SFHP administration June to July Search for highly qualified research interviewees Set interview schedule Conduct the actual research interviews August to September Conduct the actual research survey study October Analyze the gathered data November Draft research study conclusion and recommendation December Submit and revise final draft Finalize research study based on supervisor’s feedback References Akkermans, H., & VanHelden, K. (2002). Vicious and virtous cycles in ERP implementation: a case study of interrelations between critical success factors. European Journal of Information System, 11, 35-46. Berchet, C., & Habchi, G. (2005). The implementation and development of an ERP system: An industrial case study. Computer in Industry, 56, 588-605. Bidgoli, H. (2004). The Internet Encyclopedia. Volume 2. John Wiley & Sons. Biggs, H. (2010). Healthcare Research Ethics And Law: Regulation, Review And Responsibility. 1st Edition. OX: Routledge. Bryman, A., & Bell, E. (2003). Business Research Methods. NY: Oxford University Press. Danas, K., Roudsari, A., & Ketikidis, P. (2006). The applicability of a multi-attribute classification framework in the healthcare industry. Journal of Manufacturing Technology Management, 17(6), 772-785. Escobar, B., & Escobar, T. (2010). ERP Systems In Hospitals: A Case Study. Global Journal of Management and Business, 10(2), 104-112. Escobar-Perez, B., Escobar-Rodriguez, T., & Monge-Lozano, P. (2010). ERP Systems in Hospitals: A Case Study. Journal of Information Technology Research (JITR), 3(4), 104-112. Ganesh, L., & Mehta, A. (2010). Critical failure factors in enterprise resource planning implementation at. Asian Journal of management Reearch. ISSN 2229 3795. 44-57. Gattiker, T., & Goodhue, D. (2004). Understanding the local-level costs and benefits of ERP through organizational information processing theory. Information and Management, 41(4), 431–443. Glouberman, S., & Mintzberg, H. (2001). Managing the Care of Health and the Cure of Disease - Part II: Integration. Health Care Management Review, 26(1), 70-84. Grabski, S., Leech, S., & Lu, B. (2001). Risks and Controls in the Implementation of ERP Systems. The International Journal of Digital Accounting Research, 1(1), 47-68. Gundogar, E., Aydin, A., Sunter, H., & Arici, S. (2010). An ERP Application In A Non-Profit Organization: Turkish Red Crescent Society. International Journal of Management & Information Systems, 14(5), 87-97. Hussain, Z., & Hafeez, K. (2008). Changing Attitudes and Behavior of Stakeholders During an Information Systems-Led Organizational Change. Journal of Applied Behavioral Science, 44(4), 490-513 . Kronbichler, S., Ostermann, H., & Staudinger, R. (2010). A comparison of erp-success measurement approaches. Journal of Information Systems and Technology Management, 7(2), 281-310. Morton, N., & Hu, Q. (2008). Implications of the fit between organizational structure and ERP: A structural contingency theory perspective. International Journal of Information Management 28, 391-402. Newell, S., Huang, J., & Tansley, C. (2002). Social capital in ERP projects: the differential source and effects of bridging and bonding. In Proceedings of the 23rd International Conference on Inforamtion Systems Association for Information Systems, Barcelona, Spain. 257-265. Robey, D., Ross, J., & Boudreau, M. (2002). Learning to implement enterprise systems: An exploratory study of the dialectics of change. Journal of Management Information Systems, 19(1), 17-46. Rubin, P. (1999). The right stuff... meeting your customer needs. Hospital Material Management Quarterly, 21(2), 12-17. Sambamurthy, V., Bharadwaj, A., & Grover, V. (2003). Shaping agility through digital options: Reconceptualizing the role of information technology in contemporary firms. MIS Quarterly, 27(2), 237-263. Security Forces Hospital Program (2012a). About SFHP: Historical Information. Retrieved April 14, 2012, from Security Forces Hospital Program website: http://www.sfh.med.sa/English/GeneralInfo/Pages/AboutSFHP.aspx Security Forces Hospital Program (2012b). SFHP: Mission & Vision Statement. Retrieved April 14, 2012, from Security Forces Hospital Program website: http://www.sfh.med.sa/English/GeneralInfo/Pages/MissionVision.aspx Sheu, C., Yen, H., & Krumwiede, D. (2003). The effect of national differences on multinational ERP implementation: an exploratory study. TQM & Busines Excellence, 14(6), 641-657. Shrader-Frechette, K. (1994). Ethics of scientific research. Rowman & Littlefield Publishers Inc. Vilpola, I. (2008, June). Applying user-centred design in ERP implementation requirements analysis. Retrieved April 14, 2012, from Tampere University of Technology: http://dspace.cc.tut.fi/dpub/bitstream/handle/123456789/4/vilpola.pdf Wagner, E., & Newell, S. (2006). Repairing ERP Producing Social Order to Create a Working Information System. Journal of Applied Behavioral Science, 42(1), 40-57. Yongbeom, K., Lee, Z., & Gosain, S. (2005). Impediments to successful ERP implementation process. Business Process Management Journal, 11(2), 158-170. Appendix I – Summary of the Explanatory Non-Experimental Research Survey Questionnaire 1 How old are you? ___ 50 – 55 ___ 56 – 60 ___ 61 – 65 ___ 66 – 70 2 What is your gender? ___ Male ___ Female 3 What is your civil status? ___ Single ___ Married ___ Divorced/Separated 4 Are you currently employed at the Security Forces Hospital Program in Saudi Arabia? ___ Yes ___ No Note: If yes, kindly proceed to the next question. 5 How long have you been employed at the Security Forces Hospital Program? ___ between 1 – 5 years; ___ between 11 – 15 years; ___ between 6 – 10 hrs; ___ more than 15 years. 6 What is your current job at the Security Forces Hospital Program? ___ doctor/physician ___ administrative staff / hospital administrator ___ nurse ___ dietician / nutritionist ___ pharmacist ___ physical therapist ___ hospital engineer, maintenance, technician (i.e. radiology/x-ray technician) ___ Others 7 Are you familiar with ERP system? ___ Yes ___ No Enterprise resource planning (ERP) is “a system that integrates information from different departments in one common database for an entire organization” to access (Escobar-Perez, Escobar-Rodriguez and Monge-Lozano 2010). 8 Do you believe that investment on ERP system could increase the quality of healthcare services offered by the Security Forces Hospital Program to the public? ___ Yes ___ No; Why? __________________________________________________________________ ________________________________________________________________________________________________________________________________________________ 12 Would you support the implementation of ERP system at the Security Forces Hospital Program? ___ Yes ___ No; Why? ____________________________________________ ________________________________________________________________________________________________________________________________________________ *** Thank you! *** Appendix II – Summary of the Semi-Structured Research Interview Questionnaire 1. Good morning/afternoon sir/madam. I am here to conduct a research interview with regards to the possibility of implementing ERP system in SFHP aside from identifying critical success factors and barriers that can lead to a failed ERP implementation. 2. Can you briefly describe your profession at SFHP and your knowledge about the ERP system? 3. To what extent is your knowledge about ERP system? (i.e. What do you know about the ERP implementation) 4. Do you think that the implementation of ERP system can further improve the hospital management in SFHP? 5. Have you ever had any experience (possibly in your previous job) on implementing ERP system? Kindly share with me your personal experience with regards to the application and implementation of ERP system. 6. What do you think are the success factors of implementing ERP system? 7. Can you identify some barriers that can lead to a failed ERP implementation? 8. Thank you for participating in this study. Appendix III – Outline Research Strategies The following research strategies will be used in this study: 1. Literature review to identify CSFs, benefits and barriers to a successful ERP implementation; 2. Produce a research survey questionnaire for the quantitative study; 3. Produce a semi-structured interview questionnaire to ensure all necessary questions are asked from the qualified research interviewees on a timely basis; 4. Analyze the gathered research interview results with the gathered literature review; and 5. Develop valid and reliable study conclusions and recommendations. Read More