Reengineering for Enterprise Resource Planning (ERP) Systems Implementation

Author(s):  
C. Annamalai ◽  
T. Ramayah

Reengineering is a concept that is applicable to all industries, particularly information and communication technology (ICT) projects regardless of organizational type, size, culture, or location. The enterprise resource planning (ERP) system frequently requires organizations to change their existing business processes to harmonize them its functional activities. 72% of the ERP implementation failures reported worldwide (Eric, 2010) because of the various critical success factors (CSFs). A Critical Success Factor (CSF) is defined as a factor needed to implement ERP system successfully. Assessing the importance of CSFs of Enterprise Resource Planning systems has always remained an important concern for academicians and researchers. This study explores and assesses the CSFs affecting the ERP implementation success. Long term Top management Support (LTS), Perceived ERP benefits (PEB), ERP in-house Training (EIT), Project Tracking (PTG), Visible Project Phases (VPP), Project Phase Update (PPU), Interdepartmental Cooperation (IDP), Strategic IT planning (STP), ERP vendor Support (EVS), and Data Analysis and Conversion (DAC) were found dominant critical factors for the success of the ERP implementation in the manufacturing sector. This study investigates how many CSFs are strongly correlated with each other for the success of ERP projects in the manufacturing sector. Furthermore, this study also tests empirically using the Statistical Package for Social Science Analysis of Moment on Structures (SPSS AMOS 18.0) to justify the level of CSFs among the local and joint-venture companies using a t-test analysis.

2012 ◽  
pp. 791-806
Author(s):  
C. Annamalai ◽  
T. Ramayah

Reengineering is a concept that is applicable to all industries, particularly information and communication technology (ICT) projects regardless of organizational type, size, culture, or location. The enterprise resource planning (ERP) system frequently requires organizations to change their existing business processes to harmonize them its functional activities. 72% of the ERP implementation failures reported worldwide (Eric, 2010) because of the various critical success factors (CSFs). A Critical Success Factor (CSF) is defined as a factor needed to implement ERP system successfully. Assessing the importance of CSFs of Enterprise Resource Planning systems has always remained an important concern for academicians and researchers. This study explores and assesses the CSFs affecting the ERP implementation success. Long term Top management Support (LTS), Perceived ERP benefits (PEB), ERP in-house Training (EIT), Project Tracking (PTG), Visible Project Phases (VPP), Project Phase Update (PPU), Interdepartmental Cooperation (IDP), Strategic IT planning (STP), ERP vendor Support (EVS), and Data Analysis and Conversion (DAC) were found dominant critical factors for the success of the ERP implementation in the manufacturing sector. This study investigates how many CSFs are strongly correlated with each other for the success of ERP projects in the manufacturing sector. Furthermore, this study also tests empirically using the Statistical Package for Social Science Analysis of Moment on Structures (SPSS AMOS 18.0) to justify the level of CSFs among the local and joint-venture companies using a t-test analysis.


Organizacija ◽  
2010 ◽  
Vol 43 (4) ◽  
pp. 186-196 ◽  
Author(s):  
Franc Ravnikar

The Impact of Managers on Successful ERP ImplementationLately, Enterprise Resource Planning (ERP) has been implemented in public organizations and organizations without competition in the marketplace. It is the ERP system that is almost as badly needed for the competitiveness and success of those organizations in the marketplace. The main reason lies in the fact that operating costs have to be reduced and the optimization of business processes is an option which nowadays is normally implemented together with new ERP. The success rate of ERP implementation remains very low with up to a 90% failure rate, as it is quoted in a lot of researches. Critical success factors (CSF) which influence successful ERP implementation are identical in all organizations. The main goal of this research is to find out the managers' impact on the critical success factors and thus their impact on the successful ERP implementation. Top management support is the most important critical success factor for successful ERP implementation, regardless of the fact whether the organization is on the market or not.


Author(s):  
Hsin-Ju Wei ◽  
Chia-Liang Wei

Enterprise Resource Planning (ERP) has become the core of successful information management and is also the foundation of corporate information systems for treating with everything related to corporate processes. The ERP implementation has been considered a complicated process because introducing process is involved with different potential conditions and factors so that they may affect the ultimate performance of ERP systems. The aim of this study is to analyze success factors of introducing SAP system for ERP implementation in small and midsized firms. The authors first found out past critical factors affecting the ERP implementation by means of literature review in order to understand results of past studies. Next, the authors widely collected the critical success factors from previous studies and sifted out representative factors to make up a questionnaire. Through the pilot study and questionnaire revision, the authors identified the content of the questionnaire and started interviewing job. When interviewing activities were finished, they began to study and analyze the data. Survey results indicate that three of the most important factors affecting ERP implementation are “top management support and commitment”, “project manager’s competence” and “communication and coordination effectiveness”.


Author(s):  
Kalinga Jagoda ◽  
Premaratne Samaranayake

Purpose The purpose of this paper is to propose an alternative integrated approach based on the stage-gate method to implement enterprise resource planning (ERP) systems which will enhance the effectiveness of ERP projects. Design/methodology/approach A literature review was conducted on ERP system implementation and its effectiveness. The need for improving implementation approaches and methodologies was examined. Based on the insights gained, a conceptual framework for ERP system implementation is presented by combining the state-gate approach with the pre-implementation roadmap. Findings The proposed framework aims to enhance the overall ERP implementation outcomes, ensuring critical success factors and eliminating common causes of failures. A pre-implementation roadmap is identified as a key element for eliminating many causes of failure including lack of organisations’ readiness for ERP. The post-implementation stage can be used for further improvements to the system through internal research and development. Research limitations/implications The development of the framework is an attempt to contribute to improving ERP implementation. This research is expected to motivate researchers to work in this area, and it will be beneficial to practicing managers in the identification of opportunities for improvements in ERP systems. Case studies will be valuable to refine and validate the proposed model. Originality/value This paper explores research in a needy area and offers a framework to help researchers and practitioners in improving ERP implementation. This framework is expected to reduce the implementation project duration, strengthen critical success factors and minimise common problems of ERP implementation projects.


2021 ◽  
Author(s):  
Paul Hankin ◽  
Mohammed Almanei ◽  
Konstantinos Salonitis

Enterprise Resource Planning (ERP) offers many benefits in aligning business operations. However, these implementations can be problematic and prone to failure. Critical success factors (CSF) which can improve the success rates of implementation have been researched and an interpretive structural modelling (ISM) was conducted to identify the interrelationships between factors. An ISM based model was created and this was achieved by completing the self-interaction matrix (SSIM), reachability matrix and level partitioning. This led to an ISM-based model being created followed by a cross-impact matrix multiplication (MICMAC) analysis to identify the factor’s relative driving power and level of dependence. The project revealed that top management support was the strongest CSF with a high driving power and low dependence. In addition, fourteen other factors displayed strong driving power with high dependence. The findings from the project were summarized into a recommended framework for manufacturing organizations to follow to increase the likelihood of a successful ERP implementation.


Author(s):  
Wissam EL Hajj ◽  
Ali serhan

Abstract The world boundaries are broken with the advancement of technology and the emergence of digitized industries where economies are connected via the cloud. As a result, effective management of information internally and externally is needed to cope with the quick changes in markets. For a long time, Enterprise Resource Planning (ERP) systems have been used to streamline company processes data, and hierarchy. ERP’s are capable of managing big data, integrating business processes and providing effective communication channels within the entire organization. ERP’s provide many benefits to businesses if implemented right. However, an alarming 70% of ERP implementations fail. The failure can very well bankrupt the organization and at the same time affect the vendors very negatively. The aim of this paper is to discuss the critical success factors in ERP implementations from the employees, management, consultants and vendors perspectives. Prior research has identified critical success factors for ERP implementations but none classified them according to the above perspectives (employees, management, consultants and vendors). Surveys were conducted with 60 ERP project participants including senior managers, employees and vendors. A regression analysis was made to investigate the relation between the success of ERP implementations (dependent variable) and the contributions of employees, management, consultants and vendors (independent variables). The study shows that there exists a positive relation between successful ERP implementation and the following: management support, employees’ motivation, training, management, vision, and professional consultants. Add to that, the study aids managers and ERP participants to identify the major success factors that must be implemented for the objective of having successful ERP deployment.


Enterprise Resource Planning (ERP) systems are pervasive information systems that have been fundamental in organisations for the past two decades. ERP systems may well count as the most important development in technology in the 1990s. There are many ERP success stories; equally there are as many failure stories. However, organisations encounter obstacles when implementing ERP systems. This chapter intends to explore some of the problems that occur throughout the implementation of an ERP system.Through the exploration of the literature a framework is constructed considering human, organisational and technical considerations adjoined with critical success factors when implementing ERP. Drawing on empirical evidences from a UK SME, this study then discusses and analyses each problem identified in the framework and its affect on the implementation of their ERP system. The findings of this chapter suggests the fundamental challenge of ERP implementation is not technology but organisational and human problems, which, if not fully understood and addressed, can lead to ERP failure. Finally, this chapter considers the critical success factors that resulted in the failure of the ERP at the case company in the chartering phase of the implementation.It is hoped this chapter will assist in understanding that human, organisational and technical considerations adjoined with critical success factors will encourage practitioners to address these problems and increase their chance of success during ERP implementation.


2018 ◽  
Vol 7 (3.27) ◽  
pp. 447
Author(s):  
Srinivasan Lakshmanan ◽  
S Edmund Christopher ◽  
D Kinslin

The aim of this study is to investigate Critical Success Factors (CSFs) for Enterprise Resource Planning (ERP) Implementation in Automobile Ancillary Industries (AAIs). Therefore. An in-depth and systematic literature review is done to find out the existing reviews of CSFs. Based on the review, several Discussions, Interviews and Benchmarking with experienced ERP consultants and Project management team with ERP implementations in AAIs. Thus, we showed that all factors found in the literature also affected the success of ERP projects in AAIs. CSFs Training and development, Top Management Support and commitment and Project Management, Advanced Hardware and Software and Change Management will optimize the business Process and improve the business performance and make success of the ERP Implementation. Friedman’s ranking analysis and correlation analysis were applied and detailed analysis were submitted on this study However, within those projects, Advanced Hardware and Software gained much more importance compared to the factors that most influence the success of ERP Implementation in AAIs, factors like Training and Development and Top Management Support and Commitment were even more important than Change Management and which were the most important factors in Success of the ERP Projects. This practical guidance will be helpful for the company owners, senior executives, managers and ERP consultants to be more proactive, efficient and better prepared for making Successful implementation of ERP with their limited resources especially in AAIs.  


2010 ◽  
Vol 11 (4) ◽  
pp. 533-549 ◽  
Author(s):  
Saumyendu Ghosh ◽  
Mirosław J. Skibniewski

The purpose of this paper is to investigate current literature on critical success factors (CSF) and risk factors (RF) of enterprise resource planning (ERP) system implementation and provide a systemic explanation of complexities involved in such implementation. This study will compile literature that highlighted possible references to CSFs of ERP implementations, definition of complex projects and ERP are compared with project management and project governance impacts. By analyzing highly likely CFS and RFs mentioned in literature, CSF and RFs will be mapped to project complexities involved in any ERP implementation. This is an exploratory study as it is based on literature review to understand ERP implementation and validations. The future research needs to include data collection from ERP adopters and longitudinal analyses of trends based on advances in ERP project management and governance capabilities in different ERP implementations. This article will be significant contribution to current body of knowledge because it helps us understand ERP application implementation as a complex project instead of linear system as currently documented in the literature. This article has outlined the conceptual revisions needed to extend the new project management approach from its current linear way of looking into project management of ERP projects. The article suggests that ERP project management is best understood within the context of environmental complexities. This paper is the first attempt to explore ERP implementations based on current enterprise environment and how to meet those CSF and RFs from complexity perspective. Santrauka Straipsnio tikslas – išnagrineti dabartinius literatūros šaltinius apie imones ištekliu planavimo sistemos igyvendinimo kritinius sekmes ir rizikos veiksnius, pateikti sistemiška kliūčiu, su kuriomis galima susidurti igyvendinant sistema, paaiškinima. Ši analize grindžiama tokiais literatūros šaltiniais, kuriuose kalbama ar užsimenama apie kritinius imones ištekliu planavimo sekmes veiksnius, sudetiniu projektu apibrežima, o imones ištekliu planavimas lyginamas su projektu valdymo poveikiais. Labiausiai tiketini analizuojamieji kritines sekmes ir rizikos veiksniai, mineti literatūroje, bus atvaizduojami tarp projektu kliūčiu, itrauktu bet kuriame imones ištekliu planavimo igyvendinimo etape. Tai yra aiškinamasis tyrimas, nes grindžiamas literatūros apžvalga imones ištekliu planavimo ir valdymo klausimais. Tolesniam tyrimui reikia surinkti duomenis iš ištekliu planavimo sistema idiegusiu imoniu ir atlikti ilgalaike pažangos tendenciju analize, valdant ištekliu planavimo projektus, bei ivertinti skirtingu imones ištekliu valdymo planu igyvendinimo galimybes. Šiame straipsnyje pateikiama daug žiniu apie imoniu ištekliu planavimo sistemos igyvendinima kaip kompleksini projekta, o ne šiuo metu literatūroje pateikiama linijine sistema. Straipsnyje numatyti konceptualūs taisymai, norint nuo dabartinio linijinio požiūrio pereiti prie naujojo imones ištekliu planavimo projektu valdymo požiūrio. Pažymeta, kad ištekliu planavimo projektu valdymas geriausiai suvokiamas aplinkos sudetingumo kontekste. Šis straipsnis – tai pirmasis meginimas ištirti imones ištekliu planavimo igyvendinima esamoje imones aplinkoje ir bandymas susidoroti su kritiniais sekmes ir rizikos veiksniais atsižvelgiant i kylančias kliūtis.


2021 ◽  
Vol 12 (1) ◽  
pp. 33-43
Author(s):  
Mahaning Indrawaty Wijaya ◽  
Suzanna - ◽  
Diana Utomo

The current low success level of Enterprise Resource Planning (ERP) implementation stimulates the rise of research to find the critical success factor of it. One of the challenges of ERP implementation is to find a ‘fit’ between business and system requirements. It is claimed that standardizing business processes to follow the ERP system will positively impact organizations to follow the best practice process. However, there is another challenge that organization should not reengineer their business process to fit the ERP system, but rather modify or customize the ERP system to match their business process. This belief argues that standardizing business processes is not the right solution that applies to every organization since it can degrade an organization’s competitive advantages. Based on the background, the research aimed to construct a comprehensive review to succeed in implementing an ERP system, particularly on ERP modification, using a systematic literature review method. It was done by collecting and analyzing scientific publications related to ERP critical success factors with special attention to system modification. The literature review results in a comprehensive explanation of ERP modification. It includes elaborating on different types of misfit and customization to cultivate the understanding of ERP modification, a flowchart to analyze misfit to help the organization to evaluate modification requests, and critical success factors of modified ERP implementation.


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