scholarly journals An Analysis of the Importance of the Success Factors in Operation Stage of ERP System

2016 ◽  
Vol 6 (4) ◽  
pp. 35-45
Author(s):  
Seon Gyu Yi
2016 ◽  
Vol 8 (12) ◽  
pp. 21 ◽  
Author(s):  
Omar Mohamed Bukamal ◽  
Rami Mohammad Abu Wadi

<p>This study aims empirically to analyze the critical factors that impact the success of ERP system implementation in the public sector in the Kingdom of Bahrain and to clarify the benefits gained from the implementation. The study used a detailed questionnaire as a measuring instrument across the sample group to measure two main variables, the first being critical success factors (CSFs), and the second whether ERP implementation was successful or not. The CSFs are top management commitment and support, ERP system matching organization, business process re-engineering, vendor support, and training users.</p>Those factors found to have a significant impact on ERP system implementation and the results illuminate the high level of success in implementing ERP systems. While simultaneously demonstrating that an organization with a functioning ERP system does not achieve the desired benefits by default, but rather the organization requires certain Critical Success Factors (CSFs) to be present and in effect for those benefits to be achieved.


2014 ◽  
Vol 30 (5) ◽  
pp. 1407 ◽  
Author(s):  
Abdesamad Zouine ◽  
Pierre Fenies

Many articles have been written on enterprise resource planning success in the last two decades in both the public and private sector. An important number of empirical studies attempt to delineate the steps of ERP project integration and their specificities. These research works can be divided into two principal phases: the implementation and the post-implementation. The complex nature of the ERP system and its implementation stages lead us to investigate about the critical success factors mentioned in both phases of integration. Recently, several studies have tried to assess the success of ERP system and highlight the CSFs based on some theoretical models. This study uses a meta-analysis methodology to highlight the principal factors leading to ERP success, and it evaluates the weight of CSFs in the process of implementing the ERP project. Based on the best studies published in the last years about ERP success, we conduct this research to determine the most important factors highly correlated with the ERP success. Eleven CSFs are identified in our meta-analysis and classified according to their significant importance based on the correlation coefficients finding in 32 articles focus only on the ERP system. Some criteria were selected to choose studies such as: Sample size, the availability of correlation coefficient finding (quantitative empirical data), the availability of reliable constructs (Cronbachs alpha), and the measurement scale of each factor.


Author(s):  
Muhammad Shaikh ◽  
Libi Shen

Enterprise resource planning (ERP) systems are considered, by many, to be extremely solid, while giving organizations the ability to quickly capture and manage data across diverse sectors. Because the successful employment of an ERP system depends upon skillful implementation, specific factors contributing to successful ERP implementation are essential. What are the critical factors in the implementation of ERP system? How do company administrators and IT professionals perceive the critical successful factors for the effective implementation of the ERP? How are critical successful factors defined? How do IT professionals perceive the influence of critical factors on the effective implementation of ERP in a Phoenix company? In this chapter, the critical successful factors in the implementation of ERP systems will be explored. A single case study was conducted, and the interview data were gathered from 15 IT professionals in a Phoenix, Arizona company. Problems, solutions, recommendations, and future research direction will be presented.


Author(s):  
Joseph R. Muscatello ◽  
Diane H. Parente ◽  
Matthew Swinarski

This paper examines the alignment success factors necessary to improve logistics cost when implementing an ERP system taking a work system theoretical perspective. Organizations attempting to decrease logistics costs via an ERP implementation must consider the processes and activities involved in aligning participants, information, technology, and business process in these ERP implementations. We used a two-step approach, conducting a confirmatory factor analysis (CFA) to assess the psychometric properties of our measures and then conducting an independent sample t-test between two groups, one which experienced decreased logistic costs and the second which experienced the same or increasing logistic costs. This research has provided more insight into the practice of ERP implementations and has reemphasized the need to judge ERP success relative to impact on firm performance.


Author(s):  
Leopoldo Colmenares

An enterprise resource planning (ERP) system is an integrated set of programs that provides support for core organizational activities. ERP is a software infrastructure embedded with “best practices,” or best ways to do business based on common business practices or academic theory. The aim is to improve the cooperation and interaction between all the organizations’ departments, such as the products planning, manufacturing, purchasing, marketing and customer service department. ERP systems is a fine expression of the inseparability of IT and business. As an enabling key technology as well as an effective managerial tool, ERP systems allow companies to integrate at all levels and utilize important ERP systems applications, such as supply-chain management, financials and accounting applications, human resource management and customer relationship management (Boubekri, 2001). ERP systems hold the promise of improving processes and decreasing costs. Furthermore, two important new frontiers for ERP systems are electronic business (e-business) and supply-chain management (Wang and Nah, 2001). The systems can connect with suppliers, distributors, and customers, facilitating the flow, the product and information. ERP systems implementation is costly and complex. In many cases, an ERP system is the largest single investment in any corporate-wide project. The software is expensive, and the consulting costs even more. Meta Group found that the average ERP systems implementation takes 23 months with total owners’ cost of $12 million (Stewart, 2000). The ERP systems implementation is the process where business process and ERP system match each other. Usually the firm has to change the business process per ERP systems. Sometimes most positions have to be redesigned according to the ERP systems. Thus the difficulties and high failure rate in implementing ERP systems have been widely cited in the literature (Davenport, 1998; Kim, Lee, & Gosain, 2005)). The failure percentage of ERP systems was determined by one study as ranging from 40 to 60% and from another study as between 60 and 90% (Langernwalter, 2000; Ptak and Schragenheim, 2000; Yingjie, 2005). Although the failure rates of these ERP implementations have been highly publicized, this has not distracted companies from investing large sums of money on ERP systems (Somers & Nelson, 2004). ERP systems provide companies with the means of integrating their business functions into a unified and integrated business process. As companies implement more enterprise based systems throughout their organizations, the need for integration of these systems becomes even more paramount. Expanding from the functional areas of accounting, human resources, and shop floor control to an enterprise-wide system has become a format for producing full organization integration. Over the past few years, limited research has been conducted about ERP implementation issues: mainly case studies in individual organizations have been reported. That is a motivation toward conducting empirical studies to explore critical factors that affect ERP systems implementation. This study presents the results of an empirical study that surveyed managers from seven corporations, who were identified as having a key role in ERP systems implementation, in order to assess empirically which CSFs are critical in leading a successful implementation of ERP systems. A factor analysis solution was used to derive factors affecting successful ERP implementation. These factors are: ERP implementation management, users aptitudes and communication and technical knowledge. The study reveals that about 81.5 % of the variances in ERP systems implementation were explained by the critical factors identified in the study. The remainder of this article is organized in four sections. First ERP-related literature is reviewed. The next section introduces the research methodology, followed by the presentation of the results. The paper ends with the conclusions and implications for future research and practice.


2011 ◽  
pp. 758-765
Author(s):  
Leopoldo E. Colmenares ◽  
Jim O. Otieno

An enterprise resource planning (ERP) system is an integrated set of programs that provides support for core organizational activities, such as manufacturing and logistics, finance and accounting, sales and marketing, and human resources. An ERP system helps the different parts of an organization share data and knowledge, reduce costs, and improve management of business processes. In spite of their benefits, many ERP systems fail (Stratman & Roth, 1999). Implementing an ERP system is a major undertaking. About 90% of ERP implementations are late or over budget (Martin, 1998), and the success rate of ERP systems implementation is only about 33% (Zhang et al., 2003).


Author(s):  
Leopoldo E. Colmenares ◽  
Jim O. Otieno

An enterprise resource planning (ERP) system is an integrated set of programs that provides support for core organizational activities, such as manufacturing and logistics, finance and accounting, sales and marketing, and human resources. An ERP system helps the different parts of an organization share data and knowledge, reduce costs, and improve management of business processes. In spite of their benefits, many ERP systems fail (Stratman & Roth, 1999). Implementing an ERP system is a major undertaking. About 90% of ERP implementations are late or over budget (Martin, 1998), and the success rate of ERP systems implementation is only about 33% (Zhang et al., 2003).


2018 ◽  
Vol 30 (3) ◽  
pp. 285-310 ◽  
Author(s):  
Ewout Reitsma ◽  
Per Hilletofth

Purpose The purpose of this study is to evaluate critical success factors (CSFs) for the implementation of an enterprise resource planning (ERP) system from a user perspective. Design/methodology/approach The research was conducted in two successive steps. First, a literature review was conducted to derive CSFs for ERP system implementation. Second, a survey was conducted to evaluate the importance of these CSFs from a user perspective. Data were collected through a questionnaire that was distributed within a German manufacturer and was developed based on the CSFs found in the literature. Gray relational analysis (GRA) was used to rank the CSFs in order of importance from a user perspective. Findings The findings reveal that users regard 11 of the 13 CSFs found in the literature as important for ERP system implementation. Seven of the CFSs were classified as the most important from a user perspective, namely, project team, technical possibilities, strategic decision-making, training and education, minimum customization, software testing and performance measurement. Users regarded 2 of the 13 CSFs as not important when implementing an ERP system, including organizational change management and top management involvement. Research limitations/implications One limitation of this study is that the respondents originate from one organization, industry and country. The findings may differ in other contexts, and thus, future research should be expanded to include more organizations, industries and countries. Another limitation is that this study only evaluates existing CSFs from a user perspective rather than identifying new ones and/or the underlying reasons using more qualitative research. Practical implications A better understanding of the user perspective toward CSFs for ERP system implementation promises to contribute to the design of more effective ERP systems, a more successful implementation and a more effective operation. When trying to successfully implement an ERP system, the project team may use the insights from the user perspective. Originality/value Even though researchers highlight the important role users play during ERP system implementation, their perspective toward the widely discussed CSFs for ERP system implementation has not been investigated comprehensively. This study aims to fill this gap by evaluating CSFs derived from the literature from a user perspective.


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