Examining and analyzing a new model of correlation between implementing strategic planning , business process re-engineering , enterprise resource planning , and output of organization ( performance measurement ) in pioneer industries of Iran

Nowadays, organizations in rival space need to handle their resources by a productive and integrative system to rich variety and more quality and speedy in product and service's delivery. One of the best methods that gain this goal is enterprise resource planning (ERP) software solution. Doing performance measurement, efficiency and effectiveness of implemented system is catchable. Most critical factors that affect reaching ERP goals are strategic planning and top management supporting and believing themselves on projects. This manuscript studies business process reengineering (BPR) according to best practices of proportional ERP solution and prevents wasting the capital and inefficient using of the system. This paper, considering research method, posits that when both projects are supported with a correct strategic plan and management, there is a high correlation between positive result in company's performance measurement and their execution method. This new model confirmed by amount of literatures and develops a new contingency diagram about the sequence of BPR and ERP projects. Correlation was tested by factor analysis in Lisrel 8.3 and statistics population of three pioneer companies of Iran as a kind of mass-continuous producer.


INTRODUCTION
This research shows that in case of correct use of business process reengineering (BRP) based on distinct strategy of production, company will reach its goals by BRP project and implementing enterprise resources planning (ERP) and restrain probable loss.
In this model, by evaluating performance through qualitative questioning, organizational goals were examined, and strong correlation between results and strategic *Corresponding author.E-mail: ali.abdolkarimi34@gmail.com.Tel: +989122575906.planning related to goals were shown.The model presented here in this research is completely new and its goal is to show the correlation between implementing successful project of BPR and results of it in a way that indicates that strategic planning is strong enough and it is supported by superior manager.It is better to notify that BPR project in this research is implemented through using ERP and defined before or during it according to situation and structure of organization.
The process of this research can provide a situation to incorporate ERP and BPR projects simultaneously in order to make a commitment and agreement between two projects on determinate goals.

THEORETICAL PRINCIPLES OF RESEARCH
Most of internal and external papers (exactly ISI) about ERP and BPR support the subjects used in this model and researcher according to Iran's situation made some adjustments on questions.Then, we study 4 significances presented here respectively:

Strategic planning
Necessity of strategy to lead BPR approach is something that is mentioned by most of writers.Tinnila said that BPR should start with strategy, and strategy with desirable qualification is the best point to start redesigning with respect to improving performance.Edvard (1994Edvard ( -1998) ) indicated that reengineering includes natural relation with production strategy.
They suggested that reengineering could be like a bridge in order to convert the formulated strategic planning to the implementing in organization.In this case, BPR is known as a process which specifies structure of organization and enables it to focus on costumer's requirements.
The first part of the questionnaire which is about production strategy is gained from basic and acceptable criteria of competitive area.As Schonberger (1986) Skinner (1974) mentioned, there are 4 competition indicators: price, quality, flexibility and ability to respond.Garvin (1993) added delivery as a criterion including production speed and presenting services, and perpetuity to them.And as Slack suggests, we did study delivery.Costumer and staff's satisfaction as really sensitive criteria added to the other 5.

Business process reengineering
At first, Davenport and Short indicated that BPR is analysis, design and process of work and inside organization and between them.Hammer and Champy (1993) introduced BPR as vital rethinking and redesigning of organization's processes which can make the organization to progress in their indicators.Until 1990, academic society had presented several ways to lead BPR and then added some compatible items to it (Maclntosh [19]).Anyway, it is true that procedure of process is developed and generalized increasingly, and focus is mostly on BPR projects.Dr. Jamshid Nazemi, the head of IT Management group, Faculty of Management, Islamic Azad University, Science and Research Branch said: "companies must have done BPR every 5 years to the utmost; otherwise they will all go extinct".The second part of the questionnaire is according to review of BPR literature which includes communion of education's managers, group work of BPR project, harmony between information technology staff and results.

Enterprise resources planning project
The main and important item in the ERP projects and effective use of them in organizations is its successful implementation and prevention of failure.A report of group study on implementing ERP revealed that these projects have 178% extra budget averagely, last 2.5 times more than determined time and its profit is just 30% of the profit we guaranteed (Densley, 1999).
In order to implement ERP in a company successfully and if manager wants to achieve his goals, 4 principles should be done.
1. Make changes in culture, human resource skills, and structure of organizational management (organizational change management).2. Make changes in equipments, plants, and processes which are compatible with ERP package (technology change management).3. Make changes in substructures of IT and software (organization management) in order to have ability to implement ERP. 4. Considering the suitable time to select and use ERP, coordination between standard solutions of ERP and reengineering processes.Hammer (1990), Davenport and Short (1990) in recently published texts emphasized the importance of measuring performance in BPR.During the last 10 years, focus on it has been increased (Neely, 1998;1999).Measuring performance especially in production section has been controlled through price calculation systems and financial reports in order to represent the capitalists and stockholders (Maskel;1991), (Kaplan and Norton, 1996).These measurements reflected costumer's satisfaction (Davenport and Short, 1990).Kuwaiti and Kay (2000) were invented tools for measuring performance in BPR (according to the new work of Dikson Neli and Wellman; Hayes, 1994).They said that measuring performance systems related to BPR, considered staff working in a team and producing finished products just for the costumer.For that reason, performance measuring system should balance some dimensions in order to be successful.In the fourth part of the questionnaire, there are sentences which are related to performance measurement and measuring tools which were chosen mostly from neely's papers (Neely and Najjar;2006), (Neely et al, 2000), (Neely et al, 1995), (O'Neil and Sohal, 1998), Kuwaiti and Kay (2000), De Toni and Tonchia (2001), Hudson et al. (2001), Slack and Lewis (2002), Franco-Santos et al. (2007).

Measuring performance
RESEARCHING METHODOLOGY Natasha et al. (2007) in their recent papers which is related to our research, after studying about 100 sources with same context, selected some questions.These questions were changed a little in Iran according to the country's situation in order to evaluate BPR production strategy and measure performance.Kamhawi (2008) had done the same research in Egypt and asked questions which were provided by authentic sources to implement ERP and evaluate the election and mentioned them in his paper.Our paper presented some questions as an independent variable in order to implement ERP and some questions as a dependent variable for results of ERP project.New version of research is shown in Figure 1.Because of lack of time in finding tentative group, there is no tentative research (it lasts about 5 years).In addition to scarce number of organizations with ERP which do not have enough homogeneity and that it lasts a life to achieve a result in order to have an authentic research, we ignored scientific-comparative because our statistic society is really small; thus positive or negative groups are not distinguishable.Research method is descriptive-survey and according to variables, it is implementing potential analysis in LISREL 8.3 environment.
Justifiability of contents of questions is approved with considering the authenticity of question's source [22], [6] which is result of studies and conclusion of more than ten papers.In spite of that supervisors and authors' advisors had approved it, managers of ERP projects in zob Ahan (Isfahan), Saina (Abhar), Goltash (Isfahan) and so Paxan (Tehran) approved the universality and accuracy of it.In order to evaluate the perpetuity of questions after implementing Q-Q pilot, eliminating astray data and replacing average data with missing ones, Cronbach's alpha was done in SPSS 15 environment and the result on all questions was 0.957 and none of 69 variables made changes in factor which this is a desirable conclusion.Structures' Alpha's result was also 0.922 and likewise eliminating none of variables except "ERP result" made improvement.In cutting the variables by half method, equivalence and inequality factor of Brown-Spearman covariance was 0.905 and Gutman covariance was 0.883 which both are desirable.
Then potential discovery analysis in SPSS was used and with considering 5 basic factors with special amount of more than 1, structures of 4 groups from the beginning are meaningful which is shown in Table 1.Fifth factor was eliminated in potential analysis and its reason was that ERP project was not successful in companies according to research time.Rotation factor is orthogonal as a kind of Varimax.Main test was in Lisrel by using covariance matrix and correlation between structures which was estimated through potential analysis test.The evolution number in this test is 250 to the utmost, in this research it was 14 times and that was really low in numbers which showed that data were sound.Correlation between structures was shown in Table 2, while in Table 3, correlation between basic ideas of paper is presented.
Strategy 9 means stability in delivery time because of weak but acceptable correlation which was eliminated at first step and price factor was eliminated according to performance measurement because of the same reason as well.And this indicated that company's performance was tensional according to number of orders and they did not work on ability of ERP long term planning in order to manage orders.Implementing ERP did not affect finished price and this plan was used mostly for planning and organizing customers' orders in order to decide and determined the last factor named "success of ERP project" which was the only one which was eliminated by unacceptable standard coefficient.
Most of the calculated indicators according to Table 4 were either in suitable domain or supreme value and this indicated that the model is valid and the process is without problem.

DISCUSSION, CONCLUSION AND PRESENTING SUGGESTIONS FOR FUTURE
Highest standard correlation coefficient between two concepts: performance measurement and production strategy is 0.90 which is contrary to what abroad papers showed and this indicated that if we want to have optimal performance in Iran, we should start with having a really effective and strong manufacturing strategy which is compatible with organization and market.After that the    highest correlation between performance measurement and ERP project is 0.89 (close to last one).And this is due to influence of a good choice and successful implementation of ERP package.There is a correlation between ERP project and production strategy about 0.88 which is indicated that compatibility between ERP package and organizational goals must be really strong.
Other correlations between 4 concepts mentioned in this research are strong too but a little lower, especially correlation between BPR and strategy, due to situation of plants in Iran in which BPR project is one of ERP project's phases and never is used as an independent project in any firms.
The important thing is the discussion among academic and industrial society which is: "Does BPR project have priority over ERP project?"Researcher by presenting an invented table (Figure 2) for the first time, according to necessary condition of company from the viewpoint of size of company, first days of installment, improvement period using successful industrial experiences (Mansoori, 2006) and with reference to related papers, put an end to this paper.
One of the strengths of this paper is complete conformity with methodology and scientific research, its process was mentioned and some of valid information was used in this paper.The writer maintained that the model of this research, according to similar papers' process (mostly had been done in Management Faculty of Tehran University and Tarbiat modarres University) and expanse of concepts is extraordinary at least in the Islamic Republic of Iran, and suggested that more work be done on represented table in order to select implementation strategy for ERP and BPR and the possibility of it.Secondly, this research's model can be reviewed by low number of tools (such as BSC to measure the profitability of company and compare the results to foresighted goals in business production strategy).Also, students who like this subject can organize a method to convert organization's strategic planning approach to new processes used in BPR by using ARENA and C++.First, because industrial men will be sure about the correlation between current processes and strategies; and second, it will prevent them from spending a lot of money on implementing unsuccessful ERP projects which is not compatible with internal needs of organization and customers, and will be able to study and pay attention on selecting ERP modules which none of the processes will not eliminate, modify, or invent in this way.Moreover, organization will be able to optimally utilize experiences of ERP software packages which is possible through cultural, structural, and environmental study.

Improvement period of company
(a) Strategic planning (b) Reengineering and process of organization (c) Selecting and implementing software solution of ERP (d) Evaluating performance

Figure 1 .
Figure 1.Main model of research by using approved factor analysis (standard coefficient) in a very meaningful way in structured Lisrel 8.3 and relation between main concepts of research and composing factors.

Table 1 .
Main components were composed of factors after Orthogonal rotation as a kind of Varimax (table shows that main attained components of each has concept and this shows the validity of model).

Table 2 .
Quantities of standard coefficient which is result of implementing model in Lisrel environment by factor analysis, factors description coefficient (validity of factors), T-value (factor loading), and determined variance (R2)

Table 3 .
Results of approved factor analysis between 4 main research concepts in Lisrel (95% of confidence interval).

Table 4 .
Description of compatibility indicators which is gained through factor analysis in Lisrel.