A FCM-Based Dynamic Modeling of ERP Implementation Critical Failure Factors

2014 ◽  
Vol 10 (1) ◽  
pp. 32-52 ◽  
Author(s):  
Ahad Zare Ravasan ◽  
Taha Mansouri

Implementation of Enterprise Resource Planning systems (ERPs) is a complex and costly process which usually results in serious failures. Numerous factors affect these projects implementation due to their size, complexity and high chance of failure. Therefore, identifying these factors in ERP projects is a critical issue. The majority of previous studies and research projects have been conducted in identifying ERP Critical Success Factors (CSFs) rather than Critical Failure Factors (CFFs). In order to help practitioners, this paper studies the CFFs in this kind of projects. Unfortunately, the implications of interdependency among failure factors are usually underestimated by project managers and decision makers since they are difficult to model and analyze. With this in mind, the authors have built Fuzzy Cognitive Maps (FCMs) of failure factors in ERP implementation projects. The main advantage of FCM lies in them being capable of modeling complex phenomena based on the experts' perceptions. This tool models uncertainty and related events, imitating human reasoning. Moreover, FCMs enable the developing of forecasting exercises through simulations. Practitioners would thus assess the joint influence of ERP implementation failure factors on project outcomes. The results make known to practitioners which problems will arise if the failure factors are not treated, and how these will impact on the outcomes of projects. Therefore, the tool proposed would help them to manage ERP implementation projects in a more effective and proactive way.

2019 ◽  
Vol 8 (2) ◽  
pp. 1144-1149

This paper is aimed at reviewing present state of the art (1998-March 2019) on the impact of Enterprise Resource Planning (ERP) implementation in Small and Medium Enterprises (SMEs). It includes critical success factors and critical failure factors.The technique depends on writing survey for optional information gathering. It characterizes the expressions that are utilized to get explore papers from databases and advanced studies on the ERP implementation in SMEs. It additionally incorporates the consideration and prohibition criteria to improve nature of papers. At that point methodical audit is made on the accessible papers to research the effect of ERP usage in SMEs.Critical factors are identified for success and failure of ERP implementations and actual impact of the same on SMEs (add actual success and failure factors here besides impact). The research found in this paper has limitations in terms of the period of which research papers have been reviewed. An implicit limitation is that it does not consider an empirical study except focusing on the state of the art found in the research area. However, its insights will have potential benefits and the directions for future work helps in further scope of the research. This paper contributes to the research on the impact of ERP implementation on SMEs either positively or negatively. It discovers critical success factors, critical failure factors and impact through secondary data collection method. The insights will help SMEs and stakeholders of SMEs and ERP service providers to know the reasons for failure or success and take necessary course of action.


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):  
Anuradha Jayakody ◽  
E.M.M.N. Samaranayake ◽  
Punchihewa N.N.W.G ◽  
B.V.R. Jeewantha ◽  
H.N.I. Wijesiri

Enterprise Resource Planning system is a software that suitable for the user to earn more ROI by involving business activities. By the way, most organizations are still afraid to adopt this to their organizations. The reason is the high-cost wastage, and also bankruptcy. But it is not true at all the time. ERP can implement to small and medium-sized organizations too. To clarify these points, the paper focuses on the critical factors that affect the success of an ERP implementation process. It will do by a conceptual framework. It review and assertion of 15 hypotheses will carry out using "structural equation modeling technique". The definition of multi-variable technology used since the ability to check multiple linear connections at once simultaneously depends on one or more variables dependently and independently.


2021 ◽  
Vol 4 (1) ◽  
pp. 54
Author(s):  
Adjeng Kartika Rizkiana ◽  
Hamzah Ritchi ◽  
Zaldy Adrianto

One of the technologies that can optimize the data management system in Higher Education is the Enterprise Resource Planning (ERP) information system. However, in its implementation, failures often occur. This research was conducted to formulate the key factors for the successful implementation of ERP systems in universities. The research method used is descriptive qualitative through case studies on 4 campuses in West Java. The 20 key factors taken are the result of iterations of 32 works of literature in the 2016-2019 timeframe. The results of the study provide an overview of the key success factors that have emerged at each college and university.


Author(s):  
L. Ganesh ◽  
Arpita Mehta

Many quantitative and qualitative studies have been conducted on Enterprise Resource Planning (ERP) implementation in Large Enterprise (LEs) and Small and Medium-size Enterprises (SMEs) to capture the full benefits of ERP systems, but a survey instrument for identification of the Critical Success Factors (CSFs) that contribute in the success of ERP implementation at Indian SMEs still does not exist. This paper develops an ERP implementation success survey instrument (questionnaire) by identifying thirty CSFs for the success of ERP implementation at Indian SMEs. This paper proposes a framework in terms of one scenario to explore the 30 CSFs that determine the success of ERP implementation at Indian SMEs. A quantitative survey based method was used to collect the data from the Indian ERP consultants (respondents). The data collected were analyzed using statistical techniques. Respondents are required to respond to each item (statement) on a Likert five point scale of agreement and disagreement. Whole questionnaire is divided in to five parts Cover Letter, General Proforma, Conceptual Framework, Survey Items and One open ended question supported by thank you letter. Findings are discussed for the future work to bridge the current literature gap and provide practical advice for both ERP academics and practitioners.


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.


2015 ◽  
Vol 8 (1) ◽  
pp. 36
Author(s):  
Wahyu Agus Winarno

Enterprise Resource Planning (ERP) are information systems that destined for firm manufacturing and also service that gets role to integrate and automates business process that is engaged operation aspect, production, and distribution at firm. ERP systems is a packaged business software system that enables a company to manage the efficient and effective use of resources and providing a total integrated solution for the organization's information-processing needs. But, ERP systems success own is not easily to be reached, because ERP software is not something that while is assembled/ implementation gets to walk success by itself. In this article tries to identify critical success factors (CSFs) ERP implementation. There are 14 CSFs and 10 failure factors that shall be regarded in the ERP Implementation. Keywords: ERP; ERP Implementation; critical success factors.


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