The Impact of ERP Upgrades on Employee Productivity: An Empirical Study in South African Higher Education Institution

This study aims to explore the productivity impact of ERP upgrades, focusing on the service quality of the updated system during a specific pivotal time. Data was collected through a questionnaire distributed among ERP system users across departments such as Expenditure, Revenue, Payroll, HR, and ICS. Respondents were selected from the study population using a purposive sampling technique. The collected data was analysed using descriptive statistics and structural equation modelling techniques facilitated by SPSS software. The results indicated that while most respondents acknowledged improvements in the Oracle system’s user-friendliness and reporting capabilities, there were significant concerns regarding the adequacy of training provided, the ease of completing year-end reporting tasks, and the overall impact on productivity during the upgrade period. Specifically, 60% of respondents found it challenging to submit work reports on time, and 73.3% were dissatisfied with the upgraded system’s impact on productivity. Furthermore, 53.3% felt highly inconvenienced due to the disruptions caused by the upgrade. Based on these findings, the study recommends that future ERP upgrades involve more comprehensive planning and communication, adequate training sessions before and after the upgrade, and better timing of upgrades to avoid critical reporting periods. Additionally, involving end users in the testing phase and providing ongoing support can enhance system acceptance and minimise productivity losses. These steps can help HEIs and other organisations optimise their ERP upgrade processes, ensuring smoother transitions and improved outcomes.