Cluster Analysis Examples
shows an example of a cluster analysis from a
survey carried out by Statistical Information Solutions
on the IT industry on behalf of a client. In this case
there are 5 clusters of businesses. The question here
refers to whether their business failed in the
implementation of their ERPS IT systems.
We were able to
identify what kinds of business were most likely to fail
in their implementation and describe them as in the
3, We donít want ERP boss!
of the 9 of these companies in this cluster had serious
problems with organisational resistance to the
introduction of ERP. Although these companies have not
suffered much effect on their competitive edge they are
very likely to have failed in implementation and get low
efficiency from their ERP. These companies are all
smaller, sized 50-250 users, and have a lower turnover.
They are more likely to customise their system. They do
not publicise their use of ERP. Retrospectively they
think that a clearly defined mission is important in
implementation suggesting that their implementation may
have suffered from a lack of direction. However, they do
tend to get a lot of internal business knowledge from
their ERP system that was not there before.
could also find clusters that showed examples of best
1, The ERP Enthusiasts: These
companies tend to be users of top end ERP packages. ERPS
has no effect on these companies competitive edge. Their
implementation does not tend to go over budget. Their
ERP system increases control of their staff and ERP
causes large changes in staff structure. These
organisations publicise their use of ERP. When
implementing ERP they think planning is very important.
Although these companies score high on the efficiency
factor they are not high on the manufacturing efficiency
factor. When these companies do fail at implementation
it is more likely to be for technical reasons.
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