Advanced Materials Research Vol.

338 (2011) pp 152-155

Online available since 2011/Sep/02 at www.scientific.net
© (2011) Trans Tech Publications, Switzerland
doi:10.4028/www.scientific.net/AMR.338.152

Enterprise Resource Planning (ERP) Implementation Process: Project

Management Perspective

Abdoulmohammad Gholamzadeh Chofreh1, a, Feybi Ariani Goni2,b

and Mahdieh Gholamzadeh Jofreh3,c
1
Khuzestan Water and Sewage Company, Ahvaz, Iran
2
School of Information Technology, Universiti Kebangsaan Malaysia, Bangi, Malaysia
3
School of Management, Sharif University of Technology International Campus, Kish Island, Iran
a b c
mohammad_apmie@yahoo.com, fey2chan@yahoo.com, m_jofreh@yahoo.com

Keywords: Enterprise Resource Planning, Implementation Process, Project Management.

Abstract. Enterprise Resource Planning (ERP) system is an advanced manufacturing system that
enables the integration of transactions-oriented data and business functions throughout an enterprise.
ERP system holds the potential of greatly enhancing organizational performance and establishing
competitive advantage. ERP project team can reduce their implementation costs by having a well
thought out ERP implementation process. This research examines the ERP implementation process
from the project management based perspective. The theoretical framework is developed to specify
the ERP implementation process, which is categorized into five phases in project life cycle: initiating,
planning, executing, controlling and closing. The research adopts the iterative triangulation as a
methodology to establish this study, and one large company in Iran has been chosen by researchers to
examine the proposed framework.

Introduction
A considerable number of researches have been established on ERP system implementation in
organization. The significant benefits can be enormous by organizations in implementing ERP system
[1]. On the other research, [2] mentioned that many ERP system implementation have failed because
of many problems that occur during implementation. Good and effective project management is
essential to solve this issue. In his research, [3] stated that the scope of complexity of ERP system
implementation is different from traditional analysis and design project. Therefore, suggesting ERP
system implementation process based on project management perspective is valuable to be developed
for managing the project. In this paper, the authors leverage an investigation in a production and
service company in Iran. A theoretical framework is suggested for achieving successful ERP
implementation.

Literature Review
Project Management. ERP implementation is very complex. It needs vast combination of
hardware, software, and organisational issues [4]. In order to overcome this complexity, the needs for
project management as a methodological planning and calculated management are stressed [5].
Project management needs improvisation that becomes a part of the skill set of ERP project managers
[6] to establish and use appropriate measures of success. Project management activities span the life
of the project from initiating the project to closing it [7]. Based on the project management body of
knowledge (PMBOK), project management processes can be organized into five phases: initiating,
planning, executing, controlling and closing. The process groups are linked by the results they
produce; the result or outcome of one becomes an input to another. Among the central process groups,
the links are iterated—planning provides executing with a documented project plan early on, and then
provides documented updates to the plan as the project progresses [8].

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 Advanced Materials Research Vol. 338 153

ERP Implementation Process. There were many established researches in ERP implementation
which was focused on the implementation process. Different ERP research revealed different process
for implementing ERP successfully. [9] categorized the ERP implementation process into strategic
level, tactical level, and operation level. In their research, [10] classified ERP implementation process
into four stages: analysis stage, planning and designing stage, implementation, and
post-implementation stage. [11] proposed a framework, which is focused on project chartering,
project configuration, and shakedown phases, for ERP implementation successful. Nevertheles, none
of those researchers integrate these ERP implementation process to the project life cycle in project
management. According to the researcher’s point of view, the integration between ERP
implementation process and project management can assist ERP project team for implementing ERP
system successfully. This integrative concept is illustrated in a theoretical framework.

Research Methodology
This study is based on a single case study in Iran. The authors use iterative triangulation as a
methodology to establish the study. Analysing existing case studies taps an often abundant source of
field-based information, while conserving valuable resources that would have been needed to conduct
multiple, original case studies. Ideally, cases can provide thorough description of constructs, construct
interrelationships, organizational contexts, and processes from multiple stakeholder perspectives,
data collection methods, and levels of analysis [12]. Iterative triangulation unfolds in four phases:
groundwork, induction, iteration and conclusion (see Figure 1).

Phase I: Groundwork Phase II: Induction

Review Select Cases Analyse Case Data Shape Conjectures
Literature Literature Literature Literature

- Define theoretical - Define population - Analyse data - Develop initial

domain and identify within cases conjectures
- Develop review sampling frame - Analyse data - Compare
framework - Skim cases and across cases conjectures to data
tabulate codes
- Sample cases

Phase III: Iteration

Refine Theory

- Extend conjectures
- Do mental
experiments
- Survey case authors
- Reach closure

Phase IV: Conclusion

Refine Theory

- Evaluate theories
- Suggest future
research directions

Fig. 1 The Iterative Triangulation Methodology

154 Product Design and Manufacturing

Framework of ERP Implementation Process.

ERP Implementation Process: Project Management

Initiati Planni Execu Contr Closin

ng ng ting olling g

Integration: Integration: Integration: Integration: Integration:

- Develop the objectives of - Develop the project plan - Complete work activities - Control the overall changes - Formal acceptance
implementing ERP - Breakdown the project into - Promote collaborative system - Minimize the additional work Scope:
- Analyze the benefits of natural phases or subsystems for development between users and of data acquisition and - Scope verification
implementing ERP system in modular planning and for developers [15] processing Time:
organization development of cross-functional - Propose possible ways for - Manage by exception to the - Project closing
- Define the key success communications [15] restructuring personnel and systems project plan Cost:
factors for ERP system Scope: to accommodate the new technology Scope: - Procurement audits close out
implementation - Develop the scope statement including maximising of system - Control the project change Quality:
- Analyze the business process Time: integration and interfacing [15] for the benefit of the project - Whether the objectives of the
of an organization - Estimate the time for - Promote users’ participation and resulting product ERP system were realised fully
- Define the issues and implementing ERP project throughout the project Time: [15]
challenges of ERP system - Determine the overall schedule implementation - Control the schedule - Whether the scheme options
implementation for to indicate when work is to be Scope: Cost: were considered adequately
organization performed in the future - Scope verification - Control the cost [15]
- Define the business plan - Find the critical path of the - Make less software customization Quality: - Whether the estimates and
- Make the project charter project based on organization’s needs, - Control the quality project information were
document - Define and sequence the because too much customization can - Measuring the effectiveness accurate [15]
- Choose the correct activities of ERP implementation ruin the budget of implementation of an ERP system that has been - Whether or not the agreed
methodology to implement Cost: [14] implemented practices and techniques were
ERP system [13] - Estimate the cost of project Time: - Measure the satisfaction complied with any other
Scope: implementation - Schedule review for managing risk factors: stated requirements, factors that are considered
- Determine the organization’s - Determine the overall budget of delay unstated requirements, appropriate [15]
needs Quality: Cost: acceptance testing, and Human Resource:
- Identify the scope of ERP - Define the quality for the project - Make less software customization product reliability - Project team members release
implementation and how it will be measured based on organization’s needs, Human Resource: Communications:
Time: Human Resource: because too much customization can - Control the user training - Administrative closure
- Create the initial timetable of - Assemble project team ruin the budget of implementation along with ERP - Provide a professional work
ERP project implementation - Prepare plans for the [14] implementation to create more environment
Cost: recruitment, selection, and Quality: interest and better - Documenting the learning
- Perform financial evaluation training of the necessary - Software quality assurance Human understanding in users [14] and experiences from the ERP
by using cost-benefit analysis personnel for the project team Resource: - Team morale and the morale project
technique, which compares the [15] - Select a leader for ERP project of other stakeholders can be - Keep communicate with
cost to implement a project - Involve all of the users in ERP - Recruit and select the necessary monitored through various chosen ERP vendor for
versus the benefit to be implementation planning [14] personnel in ERP project team types of interviews or surveys. ongoing support
realized - Plan the user training along with - Use multi-functional project team in Communications: Risk Management:
Quality: ERP implementation to create executing processes to bring - Report the software - Closing project risks when
- Acquire flexible ERP more interest and better complementary capabilities during performance the risk has occurred or no
information technology that understanding in users [14] the total life of the project - Provide a professional work longer occur
can accommodate rapidly - Recruitment and selection plan Communications: environment Procurement Management:
changing business conditions for the necessary personnel in - Distribute the information, such as - Collecting users’ feedback - Contract closeout is done by
Human Resource: ERP project team progress update about the new system for user the procurement office and
- Support and commitment - Promote users’ participation - Develop the progress meetings acceptance and testing ensures that all contracts are
from the top management throughout the project planning - Provide a professionally stimulating Risk Management: properly completed, all
- Identify the key employees of - Use multi-functional project work environment [15] - Control the risk response vendors are paid, and all
each department team in planning processes - Promote client consultation and Procurement Management: inventory issues are settled
- Assess the skills and prepare Communications: user participation and obtain - Contract administration
management for ERP - Use appropriate planning styles approval from parties for what is
pre-implementation training for different tasks, detailed task being undertaken throughout the
Communications: plans for tangible tasks, iterative project [15]
- Provide a professional work plans for evolving tasks, and - Use intra-project teams and intra
environment personal communications plans and inter industry networking for
Risk Management: for change management [15] technology transfer [15]
- Identify the initial risk - Provide a professional work - Inform the stakeholders with a
assessment, which includes environment detailed ERP project implementation
internal and external - Inform the stakeholders with a - Use pro-active communications to
organization, and risk of not detailed ERP project plan establish more realistic expectations
doing project Risk Management: about the technology capabilities
Procurement Management: - Identify the risk management while communicating in tailored way
- Choose ERP software that is plans to each division or unit [15]
similar to the organisation’s - Preparing solutions for - Establish the user training along
business processes [14] unexpected challenges with ERP implementation to create
- Check the ERP vendor Procurement Management: more interest and better
stability and ability by site - Develop the procurement plan, understanding in users [14]
visiting where they have which is started with a description Risk Management:
implemented similar type of of the needed product and/or - Managing the risk of delay. This can
implementation successfully services, goes through a be addressed through answers to a
[14] make/buy/lease decision process, series of questions: what can go
and then develops a draft wrong?
statement of work Procurement Management:
- Solicitation plan
- The project manager must rely on
the accuracy and timelines of vendor
reports

Fig. 2 The Proposed Theoretical

Framework
 Advanced Materials Research Vol. 338 155

Case Analysis and Finding

Khuzestan Water and Sewage is one of large company in Iran which was established in Ahvaz since
1992. Khuzestan Water and Sewage is the only one company specializing in water and sewage in
Khuzestan. This company was awarded the ISO 9001:2000 accreditation in 2005 by IQNet.
Khuzestan Water and Sewage Company has 49 branches spread throughout the city in Khuzestan. At
that time, the information was not integrated each others. Therefore, management of the company had
problems in difficulty and slowly of decision making. Management of Khuzestan Water and Sewage
intended to implement ERP system, because they knew that it would be an appropriate tool to handle
their works. The management wanted to know about financial, production, logistics and sales reports
in faster way, so that the management of Khuzestan Water and Sewage can improve the time for
decision making.

Conclusion
Conclusively, the choice of case study appears to be suitable for examining the ERP process based on
project management perspective. The theoretical framework was proposed to Khuzestan Water and
Sewage Company for its successful ERP system implementation project. This adds to our
understanding of the ERP system implementation in organization.

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Product Design and Manufacturing
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Enterprise Resource Planning (ERP) Implementation Process: Project Management Perspective

10.4028/www.scientific.net/AMR.338.152

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