The critical success factors for ERP implementation: an organizational fit perspective

Since early 1990s, many firms around the world have shifted their information technology (IT) strategy from developing information systems in-house to purchasing application software such as enterprise resource planning (ERP) systems. IT managers responsible for managing their organization’s ERP implementation view their ERP systems as their organizations’ most strategic computing platform. However, despite such strategic importance, ERP projects report an unusually high failure rate, sometimes jeopardizing the core operations of the implementing organization. This study explores the root of such high failure rate from an “organizational fit of ERP” perspective. Based on the relevant literature, we define the concept of organizational fit of ERP and examine its impact on ERP implementation, together with ERP implementation contingencies. The results from our field survey of 34 organizations show that ERP implementation success significantly depends on the organizational fit of ERP and certain implementation contingencies.     

A practical model on controlling the ERP implementation risks

Although ERP systems were already introduced many years back and were implemented in different organizations, there are still companies who hesitate to decide about establishing ERP systems in their structure. This hesitation will itself result in the projects to go in vain. On the other hand, taking into account the Iranian organizations, the unfamiliarity with these systems is obviously comprehended, something that stems from the lack of information in decision-makers and managers concerning the above-mentioned issue, together with the feeling of fear and inconvenience with this novel technology.     

Relationships among ERP post-implementation success constructs: An analysis at the organizational level

Enterprise resource planning (ERP) systems implementation success factors have been widely researched; however, few have investigated ERP post-implementation success in organizational contexts. The paucity of research into ERP system success evaluations partly motivates this research. To that end, the objective of this study is twofold. First, it primarily investigates the relationships among six constructs or dimensions in a respecified ERP system success measurement model, which was developed from prior relevant frameworks. Second, this research adds to the body of knowledge in the information system (IS) success evaluation domain, especially with its focus on ERP packages. The extended ERP system success model was tested using data collected in a cross-sectional field survey of 109 firms in two European countries. Structural equation modeling (SEM) was used to test six relevant hypotheses. The SEM results showed that five out of the six hypotheses have significant, positive associations. Namely, the constructs of System Quality, Service Quality, Individual Impact, Workgroup Impact, and Organizational Impact have strong relevance in ERP success conceptualization, whereas Information Quality does not, at least, in the context of our data. The pertinence of the study’s findings for IS success evaluation as well as its implications for practice and research are discussed.     

A step-by-step performance assessment and improvement method for ERP implementation: Action case studies in Chinese companies

The implementation of enterprise resource planning (ERP) is a complex process, and the failure rate remains very high. The literature has reported over 80 critical success factors for ERP implementation, but companies typically do not know to exploit them. In this article, a step-by-step assessment and improvement method for ERP implementation is proposed and applied in three companies. First, a five-stage ERP implementation model is proposed. Second, about 80 critical success factors (CSFs) from the literature are elaborated into key performance indices (KPIs), which are associated with each stage of ERP implementation by ten local ERP experts. Third, the weights of the KPIs are calculated using the Dumpster–Shafer method and the evaluation of ten experts. During the implementation process, performance is measured at each stage and remedial actions are identified if the performance is below expectation. An implementation flowchart is developed based on a five-stage model and the philosophy of continuous improvement. Three action cases in Chinese manufacturing companies are conducted to illustrate the effects of the assessment model, which is also currently being used by a consulting company specialising in ERP implementation. With further evaluation by local experts, the model has the potential to serve as a guideline for ERP implementation in other countries.     

Rethinking ERP success: A new perspective from knowledge management and continuous improvement

Most IS research about ERP implementation stops short at system start-up and seldom addresses post-implementation issues. However, ERP implementation is a continuous improvement effort and continued efforts after system start-up will influence the ultimate success of an ERP implemented system. We defined a four-phase ERP refinement model that incorporated knowledge management (KM) into each major implementation phase. This knowledge-enhanced ERP implementation model adds insights when used to investigate ERP success. It also provides practitioners with a guideline for incorporation of KM into their ERP strategy to improve success rates of ERP systems.     

The ERP Revolution: Surviving vs. Thriving

This paper presents preliminary findings from a research project that examined how firms are generating business value from their investments in enterprise resource planning (ERP) systems. The research, which was done jointly with Benchmarking Partners, describes the stages of ERP implementation, the obstacles that firms encountered in generating benefits from the systems, and some critical success factors for getting business value from the implementation of an ERP system in business.     

ERP systems adoption: An exploratory study of the organizational factors and impacts of ERP success

We examined the relationships between the success of ERP system adoption, extent of business process improvement (BPI), and organizational performance and investigated the associations between the outcomes of these initiatives and such organizational factors as strategic intent, senior management support, and the status of the IT function within a company. A correlation analysis of 96 firms was made to test our hypothesis that the strategic intent to use ERP was closely related to the success of BPI, ERP, and organizational performance. The results also demonstrated that CEO-IT distance may have little direct bearing on the outcomes of ERP and BPI initiatives. A closer CEO-IT reporting relationship, however, was found to be associated with higher levels of senior management support for both types of enterprise projects. This empirical evidence reinforced the long-held assumption that organization-level benefits, BPI, and ERP success were closely related; and that these relationships were subject to the influence of the organizational variables.     

Strategic alignment of ERP implementation stages: An empirical investigation

We applied the notion of strategic alignment to ERP system implementation and used a balanced scorecard approach to analyze business performance. The PLS analysis showed a positive association between realized strategic alignment, shorter and more cost efficient ERP projects, faster reaction times to business events, and the benefits of ERP systems. While each stage of ERP implementation has its inherent intricacies, we concluded that there was a substantial interdependency between the stages of ERP implementation and the success factors in one stage influencing the success of another.     

协同软件与ERP综述

该文在分析协同软件和ERP的特点和关键技术的基础上，介绍并讨论了协同软件和ERP的之间许多方面的不同。提出了企业信息化存在的关键问题，预测了以后的研究方向。     

The effects of organizational citizenship behaviors on ERP system success

Although the research on organizational citizenship behaviors (OCBs) has increased dramatically in diverse fields during the past decade, little is known about the OCBs in the information systems area. The purpose of this study was to explore the effect of OCBs on enterprise resource planning (ERP) system success. In order to perform empirical analyses, measurements on the OCBs constructs based on the five dimensions of [Organ, D.W. (1988). Organizational citizenship behavior: The “Good Soldier” syndrome. MA: Lexington Books]: altruism, conscientiousness, courtesy, civic virtue, and sportsmanship were developed, and the research model including the relationships between the OCBs constructs and ERP system success variables of information quality, work efficiency, and intention of IT innovation was proposed and empirically analyzed using structural equation modeling.     

The impact of EDI implementation commitment and implementation success on competitive advantage and firm performance

Abstract. Electronic Data Interchange Systems (EDI) are increasingly being used by business firms to improve operations and customer service. One of the major motivations for business organizations using EDI is to gain a strategic advantage in the marketplace. Although EDI has been implemented by many organizations, unfortunately not all have gained the same level of expected advantage or envisioned benefits.
In this study we focus on the impact of EDI implementation commitment and implementation success on competitive advantage and firm performance. We study two categories of companies: companies that initiate the development of EDI and are known as hub companies and those that are their non-hub counterparts. Findings indicate that non-hub firms may not reap the same level of expected benefits resulting from EDI technology adoption and implementation as hub firms.     

Post-implementation practices of ERP systems and their relationship to financial performance

Using econometric analysis, this study provides empirical evidence to support a cause-and-effect relationship of managerial actions to financial performance in a post-ERP implementation stage. Senior information systems managers reveal the state of affairs, providing a snapshot reference during that time period. Financial figures were collected for firms who were matched to our survey instrument. Regression analysis establishes that increased technological competence affects net sales, relationships with outside experts affect earnings, return-on-assets and return-on-investment, top management support affects net sales and net income, long-range planning negatively affects earnings, and the sharing of information between departments affects net income, return-on-assets and return-on-investments.     

ERP战略对传统企业财务管理的挑战

ERP作为一种利用信息技术全面整合企业内外资源的管理模式,日益受到生产企业的关注,而财务信息系统一直是各个企业实施ERP时关注的重点。随着企业外部经营环境和内部管理模式的不断变化,对财务管理功能提出了更高的要求,出现了新的应用。该文分析了ERP系统的管理思想,比较了ERP软件与一般财务管理软件的异同,并着重探讨了ERP中财务管理系统的功能,就传统企业财务管理应对ERP战略的挑战提出了几点建议。     

Project preparedness and the emergence of implementation problems in ERP projects

The problems that organizations face in implementing an enterprise-wide ERP project are linked to their level of understanding of what is involved in such an endeavor and how it influences their initial preparations. We sought to demonstrate empirically the causal relationship between the organization's preparedness and the emergence of implementation problems. We examined four case studies to extract insight into the criticality of certain factors and the type of problems created when no moderating measures were taken by project managers. Consequently, we developed a predictor-outcome model mapping a lack of preparedness with implementation problems.     

Moderating effects of localization differences on ERP use: A socio-technical systems perspective

Despite the promised benefits of Enterprise Resource Planning (ERP) systems, more than two thirds of ERP system projects result in failure. In this study, we investigate some plausible reasons for their failure from the user’s perspective. Particularly, we propose the socio-technical factors that affect ERP system use. This study has two research objectives. First, it introduces and tests a theoretical model that views ERP systems as both an organizational change driver and a sophisticated information system to explain the phenomenon of ERP system use. For this purpose, the proposed model includes attitude toward change and computer self-efficacy; this may affect ERP system use behavior through perceived usefulness for the systems. Second, this paper attempts to shed some light on how the localization differences of ERP systems may affect users’ intention to use the ERP systems. The results based on survey data using subjects from two different ERP systems support the proposed research model. It identifies the moderating effect of the localization differences. Theoretical and practical implications of the study are discussed along with its limitations.     

Identification and classification of ERP critical failure factors in Iranian industries

Implementation of Enterprise Resource Planning systems (ERPs) is a complex and costly process, which usually results in serious failures. The majority of previous studies and research projects have been conducted in identifying ERP Critical Success Factors (CSFs) rather than Critical Failure Factors (CFFs). On the other hand, most studies have been devoted to developed countries, while in developing countries, many companies have moved towards using such systems. The majority of IT/IS management standards and guidelines have been developed by technologically-leading countries. But developing countries, which mostly confront with especial challenges, have a different condition from the implicit assumptions of leading countries. Iran is one of these countries that many of its ERP implementation projects led to failure. There is no comprehensive study that identifies ERP CFFs in Iranian industries. The main purpose of this study is to identify such factors and classify them to help other industries, consultants and implementers to prevent failures in the implementation of ERP projects. So, at first, with the semi structured interviews and literature reviews, 47 failure factors were identified. After that a questionnaire developed and sent to ERP project team members in Iranian industries that failed in their ERP projects. Robust Exploratory Factor Analysis (EFA) has been used for data analysis, which finally classified critical failure factors in seven groups named as vendor and consultant, human resources, managerial, project management, processes, organizational and technical. The results of this study have provided a very useful reference for scholars and managers to identify the relevant issues of ERP projects failure in developing countries.     

Evaluating ERP Projects with multi-attribute decision support systems

The purpose of this paper is to evaluate global ERP implementation projects through their project lifecycle. In this process, prevalent critical success factors are transformed into five so called global efficiency factors (GEF's) and applied in a multi-attribute evaluation model. The GEFs represent the elements of the global ERP project design: (1) Business process re-engineering based on ERP system requirements, (2) Legacy systems, (3) System configuration, (4) Alignment with the corporate level and (5) Project Synergy. The evaluation model evaluates each project phase from the perspective of these GEFs. We analyzed five case studies to show the impact of the GEFs on each project outcome.     

The role of readiness for change in ERP implementation: Theoretical bases and empirical validation

Implementation of ERP systems continues to drive change in organizations. However, the effort is often considered a failure, partially because potential users resist the change. Readiness plays an active role in reducing resistance to such efforts. Therefore, we examined the formation of readiness for change and its effect on the perceived technological value of an ERP system leading to its use. We developed a model of readiness for change incorporating TAM and TPB. The model was then empirically tested using data collected from users of ERP systems in Korea. Structural equation analysis using LISREL provided significant support for all proposed relationships. Specifically, we found that readiness for change had an indirect effect on behavioral intention to use an ERP system. At the same time, readiness for change was found to be enhanced by two factors: organizational commitment and perceived personal competence.     

A structural equation model for analyzing the impact of ERP on SCM

Enterprise resource planning (ERP) and supply chain management (SCM) represent important information technology investment options for operation or IT managers, and have been acclaimed in the practitioner and academic literature for their potential to improve business performance. The purpose of this article is to provide further insights into the adoption of ERP systems and the impacts on firm competence in SCM. We propose a model featuring ERP benefits to firm competences in supply chain management. We also hypothesize that three constructs of ERP benefits positively impact firm competences in SCM. To clarify the relationships among these constructs, structural equation model (SEM) is conducted to examine the model fit and nine hypotheses. The SEM results clearly demonstrate that there exist close interrelations among the benefits of implementing ERP systems and firm competences in SCM. The data from Taiwanese IT firms was collected through interviewing of experts and surveys. The results provide empirical evidence that the beneficial impacts of ERP on the supply chain do lead to better overall SCM competence. That evidence confirms that operational benefits, business process and management benefits, and strategic IT planning benefits of ERP in turn enhance firm competences of SCM in operational process integration, customer and relationship integration, and planning and control process integration.     

Empirical evidence of an integrative knowledge competence framework for ERP systems implementation in UK industries

Enterprise Resource Planning (ERP) systems can greatly improve business productivity and better serve customers by creating values through integrating business processes and sharing current information. Knowledge Management (KM) is crucial for ERP systems implementation, but is particularly demanding task. This paper discusses ERP systems implementation in UK manufacturing and service sector organisations, focusing on empirical evidence of an innovative KM approach for improving knowledge competence for ERP success. Qualitative research was conducted, using semi-structured interviews with ERP experts. Data analysis used a combination of thematic and comparative analysis. The findings suggest that the integrative knowledge competence framework can provide ERP practitioners with useful guidance on what the key knowledge determinants are and how the relationships between knowledge components should be best managed to achieve ERP systems implementation success in real life business situations.