Impact of strategic factors on enterprise resource planning implementations

Abstract. Deciding on the Enterprise Resource Planning system, determining the business needs and determining the Enterprise Resource Planning strategies is a very important issue. The fact that the strategies created by the businesses are simple and understandable to all employees, also has a critical prescription on the success of the Enterprise Resource Planning system implementation. It is very useful for the continuity of the system to conduct a model study on the necessity of Enterprise Resource Planning (ERP) system of enterprises. However, success factors that are important during the election phase may be useful on the success of the system throughout the implementation process. This study aimed to investigate the strategic factors during and after the implementation of ERP system by using survey method. Before the implementation of ERP systems, tactical decisions of the vendor selection, the employee training, determination of the project manager, and the method implementation should be taken. Selection of the method of implementation is very important step. Ignoring this step will reduce the probability of success in the ERP implementation.Keywords. Enterprise resource planning system, Enterprises, Strategic factors.JEL. M11, M13, M15

Critical success factors for the acquisition of enterprise resource planning (ERP): Empirical validation

Implementing an Enterprise Resource Planning (ERP) system project is a difficult and high cost proposition as it places tremendous demands on organization\u27s time and resources. The ERP implementation literature contains many case studies of organizations that have implemented ERP systems successfully. However, many organizations do not achieve success in their ERP implementation projects. Much has been written about implementation and the critical success factors for ERP implementation projects. But there very few studies have scientifically developed and tested constructs that represent critical success factors of ERP implementation projects. Based on a survey of 53 organizations in Australia, the results suggest that a 65 item instrument that measures seven dimensions of ERP implementation is well validated. It is argued that model proposed in the paper is valuable to researchers and practitioners interested in implementing Enterprise Resource Planning systems

CRITICAL SUCCESS FACTORS FOR THE IMPLEMENTATION OF ENTERPRISE RESOURCE PLANNING (ERP): EMPIRICAL VALIDATION

Implementing an Enterprise Resource Planning (ERP) system project is a difficult and high cost proposition as it places tremendous demands on organization\u27s time and resources. The ERP implementation literature contains many case studies of organizations that have implemented ERP systems successfully. However, many organizations do not achieve success in their ERP implementation projects. Much has been written about implementation and the critical success factors for ERP implementation projects. But there very few studies have scientifically developed and tested constructs that represent critical success factors of ERP implementation projects. Based on a survey of 53 organizations in Australia, the results suggest that a 65 item instrument that measures seven dimensions of ERP implementation is well validated. It is argued that model proposed in the paper is valuable to researchers and practitioners interested in implementing Enterprise Resource Planning systems

ERP implementation planning : a critical success factors (CSFs) approach

Enterprise Resource Planning (ERP) is an integrated set of software modules which are linked to a common database to handle basic corporate functions such as planning, manufacturing, sales, marketing, accounting, distribution, human resource and inventory. When ERP is implemented successfully, it can reduce operating costs, increase productivity, and improve customer services. However, ERP fails to deliver the promised benefits in many companies due to the poor implementation planning. A successful ERP implementation requires a careful thinking, good planning from a strategic perspective. It is difficult to measure the success of an extremely complex information system such as ERP as it involves almost every aspect of business operations. Different people from different perspectives will have different views about the success of ERP implementation. Therefore, we adopted Critical Success Factors (CSFs) approach. We identified the critical success factors for the success implementation of ERP based on literature review. A model is developed with assumption that there is Relative Importance (RI) among these critical success factors. The data collected in Chinese Mainland manufacturing companies were analyzed on Structural Equation Modeling by LISREL. Six critical success factors were identified by the survey as the relative important critical success factors. They are (1) Business Process Reengineering management, (2) change readiness, (3) software competence and IT skills, (4) departmental communication, (5) top management support, and (6) hardware and equipments. Understanding the importance of these factors will help managers to make a good planning for ERP implementation. It is suggested to set high priority to these critical success factors, which can help managers to have a better control of the activities in the process of ERP implementation. Hopefully, it will increase the chance to implement ERP successfully

Exploring the Path to ERP Implementation Success: In Retrospect after Rollout

Whereas numerous studies have examined critical success factors (CSFs) for Enterprise Resource Planning (ERP) implementation, little work has investigated the underlying causal links in the form of conceptual models. This study develops a casual model for ERP implementation success, using a two-stage approach. In Stage one, 27 online publications on ERP implementation in China were collected, and analyzed based on the grounded theory approach, to identify critical events and activities in the process of ERP implementation. In Stage two, a focus group study was conducted to create paths to ERP implementation success in the form of a conceptual model. The 48 critical factors identified in Stage one were mapped onto goals of ERP implementation, following the soft systems methodology (SSM). The result is a model including five high-order concepts: organizational impact, data quality, Normalization of processes, continuous improvement, and fit between business process and ERP systems

Assessing enterprise resource planning systems success: An empirical study

Enterprise Resource Planning (ERP) systems continue to represent one of the largest IT investments in organization and increasingly becoming one of the prerequisites for doing business in many industries. Many companies worldwide have adopted ERP systems for variety of reasons, including cost reduction, integration of business processes and faster information transactions. ERP Implementation and critical success factors have been extensively researched but few studies have investigated the success of the system. This study develops a model based on the information system\u27s research to identify success measures

AN INVESTIGATION INTO ENTERPRISE RESOURCE PLANNING IMPLEMENTATION SUCCESS: EVIDENCE FROM PRIVATE AND PUBLIC SECTOR ORGANIZATIONS

Enterprise resource planning systems are adopted to improve productivity and overall business performance in organizations. Implementation of these systems requires considerable financial and labour investment and therefore, the managers must understand the benefits of the system and the aspects of the system which need improvement. An approach to evaluate and track an ERP system’s success in corporate organizations is therefore, important. In this study, the success of ERP system is measured through the Ifinedo model and a comparison between private and public organizations is made. Interviews conducted by the researchers introduce factors influencing ERP implementation success in organizations. In addition, to understand why some organizations have achieved more ERP success than others, questionnaire responses to some identified critical success factors for ERP implementation are analyzed

CRITICAL SUCCESS FACTORS OF GLOBAL ENTERPRISE RESOURCE PLANNING PROGRAMMES: AN EMPIRICAL MODEL BASED ON EXPERT INTERVIEWS

The number of companies operating globally is constantly increasing. In order for these companies to operate globally, they require a global view of processes and their implementation in global enterprise resource planning (ERP) systems. These ERP systems allow to integrate an organization’s information sources and to harmonize its processes across multiple sites and countries. But, not all global ERP programmes are successfully implemented. Some implementation projects fail in terms of classical project tracking, e.g. slippage of roll-out dates, budget overruns or missed qualitative objectives, while others fail more severely in their business impact, e.g. intended business benefits are not achieved including process standardization, process automation and asset carrying cost reduction. To reduce the number of failed ERP programs, their critical success factors have been investigated but reports of these are not sufficiently comprehensive for global programmes as multi-national operations generate aspects that need to be addressed for success. This study explores the critical success factors of global ERP programmes and derives a predictive model of success. Use of this model may aid companies in developing effective global ERP programmes

Hospital information systems implementation framework: critical success factors for Malaysian public hospitals

The delivery of high quality health services is among the most important government policies in healthcare; it is demonstrated via the significant investment committed to expand the sector. In order to provide quality health services, Hospital Information Systems (HIS) development and adoption has to be initiated; though evidence has shown that implementing HIS is not easy. To ensure continuous successful implementation, the understanding and determination of HIS implementation factors has become a crucial consideration for health providers. This study, instigated to alleviate this problem, identified critical factors that influence HIS implementation and examined structured indicators to measure HIS implementation.Based on the critical success factors (CSFs) and DeLone and McLean’s Information Systems success model, the research study developed an implementation framework comprised of essential elements to guide HIS implementation. In the framework, the DeLone and McLean IS success measures were adapted and presented as a reflective second order factor to capture the multifaceted nature of success. A total of 500 questionnaires were distributed to six public hospitals in Malaysia and 213 were used for analysis. This reflects a high response rate of 42.6 percent. To evaluate the extent of success, the partial least squares (PLS) based structural equation modeling (SEM) approach was employed. The findings of the study revealed that the CSFs in Malaysia differ from studies in developed countries. Three out of seven success factors namely system selection, enterprise-wide communication and team composition proved to be significant. Key implementation factors such as top management support, business planning, project management and change management were found to be insignificant.The study is among the few that have tested empirically an implementation framework in the Malaysian settings; as such, it contributes significantly to theoretical, methodological and practical aspects of research. Theoretically, it established a new classification of CSFs that could influence HIS implementation. This new categorization is a significant effort to provide a practical list of CSFs that allows practitioners to focus on key areas during system implementation.Additionally, the study presents a new model that suggests links or correlations between the CSFs and how these factors should be implemented.With regard to research methodology, the study collected data from Malaysian public hospitals having a Total Hospital Information System (THIS) implementation; the type of data is rare considering the complex procedures involved. Also, the quantitative approach employed is suitable to attest the effectiveness of the implementation model. This study also utilized the SEM component-based or PLS analysis for assessing the implementation model. At present, it is still uncommon to find HIS implementation studies that utilize PLS analysis in Malaysia.In terms of a practical contribution, the study provides guidelines for managers in decision-making and planning future HIS implementation. The risks of failures for HIS implementation could be reduced as the study also proposed the approach on how the CSFs should be implemented. Most importantly, this study has established a model that could assists practitioners and researchers in understanding the implementation process of HIS, specifically for Malaysian public hospitals. Additionally, its contribution can be used in analogous domains such as information systems (IS), enterprise resource planning (ERP) and enterprise systems (ES)