Ali ERP2015
Ali ERP2015
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Ra'Ed Masa'deh
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All content following this page was uploaded by Ra'Ed Masa'deh on 15 March 2015.
Received: January 30, 2015 Accepted: February 10, 2015 Online Published: March 25, 2015
doi:10.5539/ibr.v8n4p25 URL: http://dx.doi.org/10.5539/ibr.v8n4p25
Abstract
The successful implementation project of the Enterprise Resource Planning (ERP) has many benefits for the
implementing organisation. However, on other side, failing this project would have several negative implications
not only on the business but also on the ERP vendor. Therefore, considering all the factors that might affect the
success of this project is considered as a priority for all parties involved in this project. Many papers or journal
articles have studied the Critical Success Factors (CSFs) that influence the ERP implementation and post
implementation phases, however, very few has considered them from the stakeholders’ perspective. Hence, this
research will fill this gap by providing a systematic review for the literature related to CSFs in the ERP
implementation and also present them while considering the participants’ different perspectives. This paper
presents a systematic review of 35 research articles published on the CSFs implementation between 2000 and
2013. We collected and analysed 35 of the key articles discussing and analysing ERP implementation. The paper
identifies a total of 51 CSFs in ERP implementation. In these 51 CSFs, top management support and
commitment, training and education, project management, clear vision and objectives of the ERP system, careful
change management and Interdepartmental communication were the most frequently cited as the CSFs to the
successful implementation of ERP systems. A better understanding of the CFSs will help the practitioners and
managers to improve the chance of success in the implementation projects.
Keywords: Critical Success Factors (CSF), Enterprise Resource Planning (ERP), information technology,
literature analysis
1. Introduction
The development of information and communication technologies (ICTs) has provided the companies with
significant opportunities to reduce the cost of provision and increase their revene (Tarhini et al., 2015a; 2015b;
Alenezi et al., 2015). Companies with all sizes, small, mid-size or large have a need to make their Business
Processes standardized, therefore, streamline their operations and improve the efficiency of these processes
(Tarhini et al., 2015c; Orozco et al., 2015). Enterprise Resource Planning (ERP) system is an information system
that helps the organization to coordinate and integrate information within departments. It is one example of the
other Enterprise Systems (ES), such as Supply Chain Management (SCM) system, which manages raw materials
and products supply. ERP system gives the company the ability to manage its internal business processes (Monk
& Wagner, 2009; Van-Hau & Kuzic, 2010). Also, it gives the organization an integrated software application
with integrated modules for each department in the company with a unified database for all departments, which
makes it easier to manage, execute, store data and monitor core business processes: Procurement, Production and
Fulfilment processes (Magal & Word, 2009) as well as other departments’ functionalities such as human
resources, sales, production and accounting units.
Despite the benefits that accompany the implementation and usage of the ERP system in an organisation, not all
ERP implementations are successful (Wong et al., 2005; Grossman & Walsh, 2004; Yang & Su, 2009). For
example a research conducted by (Xue, Liang, Boulton, & Snyder, 2004), analysed many failed ERP
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implementations in china, and explained why these failures affected not only the implementing company, but
also the ERP vendors, because the vendor had to pay compensation to the implementing firm. One example of
these cases when CosmeticCo Company chose MOVEX software as an ERP package, however, this system was
not fully translated to Chinese language and the financial tables were not compatible with the requirements of the
Chinese government, which causes a lot of delay in the manufacturing process, and as a result, the service
provider had to pay USD 250,000 to CosmeticCo Company. Another failure example, is when FurnitureCo
Company selected SAP R/3 as an enterprise system, however, this system was not about to adapt to the type of
Chinese market where the prices of raw materials are changing frequently and fast, which caused huge
discrepancies between the reported and real prices. Eventually, FurnitureCo Company decided to implement
local ERP system that met its needs. Moreover, from organizational point of view, implementing ERP solution
would impact the organizational structure of the implementing firm, which would need careful change
management, involving changing of roles, procedures and policies within the company. Lastly, from the business
perspective, the need for Business Process Reengineering (BPR) to fit system functionalities or already
embedded business processes, could be considered as the most important effect of implementing ERP solution
(Francoise, Bourgault, & Pellerin, 2009).
Another case study presented by (Barker & Frolick, 2003), gives an example of a failure ERP implementation, in
which the implementing company is considered as the largest independent bottlers in the soft drink industry. It
grew through many years and this growth was associated with the use of many information systems, in which
there was no integration among them. Therefore, the managers decided to implement an ERP system that
provides integration between departments and would benefit the business in many other ways. However, there
were some errors that eventually led this project to be failure. First example is that they did not go with the ERP
consultants’ recommendation for this implementation and chose to do their ideas for this plan. The second issue
was the inexperienced understaffed IT department that the organisation had at that time, which made many
problems for the deployment process. Moreover, the communications between project members was not
managed successfully, there was no proper training for project members and the employees were not selected
carefully to suite this mission. Finally, and on the top of all what mentioned before, the management support was
not up to the event. All the previous mentioned reasons forced some employees to resign, which added additional
problem to the company. From this case study, it can be seen the importance of the previously mentioned success
factors and how these would affect such an important project for any organisation. Also, the close
communication and collaboration between external consultants and the employees from the company has a great
impact on the success of such a project. Presenting the previous case studies has highlighted the significance of
studying and investigating the CSFs in ERP implementation.
There are many factors that have to be considered in order to perform successful ERP implementation. Based on
that, many authors highlighted the Critical Success Factors (CSF) of any ERP system implementation projects.
These factors were results of many implementation cases in different organisations. For example (Haft & Umble,
2003) mentioned some of these factors such as, clear definition of the strategic goals of the company and
whether the system would help to achieve these aims or not, top management support and commitment, and
users training. Also, Salimifard et al. (2010) gave other factors, such as the use of the consultants, technological
infrastructure and an effective communications between the implementation project members. Moreover, Dezdar
and Ainin (2011) added another two issues that are related to successful Implementation venture, such as user
satisfaction and organisational impact.
From the CSFs list mentioned above, it can be seen that there are different user groups that are interested in those
factors. First group is the implementation consultants who are responsible about understanding the company’s
current business processes and aligning them to the processes that are already configured and programmed in the
ERP system. The second group comprises the general managers and directors in the implementing company who
have to support the project and provide it with the required resources such as budget and dedicated employees.
The third group includes Information Technology (IT) managers, Management of Information System (MIS)
managers and Chief Information Officer (CIO) in the implementing company who will work closely with the
implementing consultants in order to achieve the goals of the project. The fourth group is the vendors who
produce these enterprise systems. The last and very important group contains the end users of this giant software.
Depending on the previous explanation, however, the previous mentioned success factors are not classified
according to their respective audiences. Also, according to the publications within this field, the job of
determining the importance of each factor by counting how many times each element is mentioned within the
related literatures is not done yet. Therefore, the need to categorise the previous mentioned factors according to
each concerned party involved in this implementation as well as the necessity to measure the authors agreement
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3. Methodology
The process for this research is based on the five steps proposed by (Khan et al., 2003) for the research based on
systematic review, in which the authors provided an explanation of the tasks accompanying a systematic
literature review such as selecting, reviewing and quality assessment of the reviewed literatures. The five steps
are and the actions taken by the researchers are follows:
1- Framing the question for the review.
In this step, the research question and the related terms should be clearly specified before the start the of the
actual literature review. In the case of this research, there are two parts or two research questions:
1) To identify the Critical Success Factors CSFs in ERP implementation and post implementation phases;
2) To classify the identified CSFs according to the stakeholders’ point of views.
2- Identifying relevant work and literatures.
In this step of this research, the resources of the relevant literatures should be identified. For this study, the focus
is on the electronic resources and documents that contain the following keywords: ‘enterprise resource planning’,
‘ERP Implementation’ and ‘critical success factors CSFs’. More specifically, the resources were journals that are
concerned with ERP research in IT, computing and business management such as (European Journal of
Operational Research, Science Direct, IEEE Xplore, Journal of Enterprise Information Management, Association
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9. Enterprise resource planning: Implementation procedures and critical Umble, E. J., Haft, R. R., Umble, M. M. 2003
success factors
10. Vicious and virtuous cycles in ERP implementation: a case study of Akkermans, H., Helden, K. 2002
interrelations between critical success factors
11. Critical Success Factors In ERP Implementation: A Review Al-Fawaz, K., Al-Salti, Z., 2008
Eldabi, T.
12. Critical Success Factors in International ERP Implementations: A Pant, R., Willcocks, L. 2007
Case Research Approach
13. The influence of organizational factors on successful ERP Dezdar, S., Ainin, S. 2011
implementation
14. CSF of ERP in Australia Dagher, J., Kuzic, J. 2010
15. Evaluation of Key Success Factors Influencing ERP Implementation Hailu, A., Rahman, S. 2012
Success
16. Examining the critical success factors in the adoption of enterprise Ngai, E. W. T., Law, C. C. H., Wat, F. K. T. 2008
resource planning
17. ERP implementation through critical success factors’ management Francoise, O., Bourgault, M., Pellerin, R. 2009
18. Success and failure factors of adopting SAP in ERP system Gargeya, V. B., Brady, C. 2005
implementation
19. Investigating Critical Success Factors in ERP Implementation Salimifard, K., Ebrahimi, M., Abbaszadeh, M. A. 2010
Projects
20. The Impact of Critical Success Factors across the Stages of Somers, T. M., Nelson, K. 2001
Enterprise Resource Planning Implementations
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4. Data Analysis
The data analysis phase in the systematic literature review will be composed of the following steps:
1) The next step after finding and summarising the related publications is to conclude the stakeholders groups
that are involved in the ERP implementation and utilisation.
2) Classifying the discovered CSF into the concluded categories from the previous step.
3) Measuring the agreement among the included publications on the previous summarised CSF.
4.1 Critical Success Factors CSFs Analysis
The 20 articles that have been accepted as sources for the CSFs in ERP implementation were analysed
thoroughly in order to determine the factors studied by the authors of those papers, in which, 51 different CSFs
were identified. They cover organisational, neutral and operational aspects in the business (Munir &
Pinedo-Cuenca, 2013) as well as pre, during and post implementation phases of the ERP system. The importance
of considering the discovered factors comes from their significance to have a successful implementation of the
ERP package. The discovered factors are listed in Table 3, in which they are presented without a specific order,
however, with considering not have the same CSF repeated while examining the journal articles.
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1. End user
2. Top management
3. IT Department
4. Project Team
5. Organisation
6. Vendor
7. ERP Consultant
8. Employees from different department
9. Business processes experts
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11
12
13
14
15
16
17
18
19
20
Fre 7 10 3 9 7 7 1 4 2 6 10 6 2 2 4 7 6 4 7 2 4 1 7 5 1 1
q
5. Findings
Having analysed and presented the results in the previous section. This section will present the main findings
from the data analysis section, which is based on the approved articles related to CSFs in the ERP
implementation project. It will show the most important success factors as well as the categorisation of these
influencers according to the stakeholders groups.
5.1 Appearance Order of Critical Success Factors CSFs
Based on the work done in the data analysis chapter, Table 7 lists the CSFs according to their appearance in the
literatures that is based on analysis presented in Tables 5 and 6. This order gives an indication about the most
important CSFs in the ERP implementation projects. Based on that, participants concerned with this project can
prioritise their attention for the important factors in order to achieve best results, to get the required
functionalities, and to meet the expectations from the ERP system.
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Project management
Interdepartmental
communication
Project champion
Minimal customization of
packages
Reduced trouble
shooting-project risk
Steering committee
Management of expectations
Dedicated resources
Team Work
Implementation strategies
Interdepartmental cooperation
Vendor/Customer partnership
IT infrastructure
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Formalised project
plan/schedule
IT department capability
Experienced project
manager-leadership
Adequate resources
Managing consultants
Company-wide support
Monitoring,evaluation of
performance
Technical issues
Motivational factors to
implement ERP systems
Effectiveness of management in
reducing the users’ resistance
6. Conclusion
6.1 Summary of the Research
Successfully implementing ERP system has many benefits for organisations. However, on other hand, failing this
project would have several negative implications not only on the business but also on the ERP vendor. Therefore,
considering all the factors that might affect the success of this project is considered as a priority for all parties
involved in it. Therefore, many authors of the scientific journal papers have highlighted the importance of
considering the positive and negative factors in the implementation project of the Enterprise Resource Planning
(ERP) system. This paper has analysed the articles related to influencing factors that need to be well-thought-out
throughout all stages of the ERP system implementation life cycle. This systematic review has focused on two
important aspects that are related to the topic of ERP implementation. It measured authors’ agreement on the
CSFs that accompany the ERP project by recording the frequency of appearance of those factors and then it
provided a categorisation for the discovered factors according to stakeholders involved in the ERP
implementation and utilisation.
6.2 Research Contributions
Many papers or journal articles have studied the Critical Success Factors (CSFs) that influence the ERP
implementation and post implementation phases, however, very few or none has considered them from the
stakeholders’ point of view. Thus, this research has provided a detailed and deep systematic review for the
literatures related to CSFs in the ERP implementation. Also, it presented these factors ordered according to their
importance while considering the participants’ (stakeholders’) different point of views, which can be considered
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as a new way to look at the CSFs (see Table 8). This table has provided a tabular categorisation for the positive
and negative factors affecting ERP implementation from the stakeholders’ perspectives. This classification can
make it easier for the members of any the stakeholders groups to find the factors that concern them more easily.
Thus, they can achieve more focus and better performance, which can be reflected in a more successful ERP
implementation.
6.3 Research Limitations and Future Work
As with any other research, this study has some limitations. Firstly, although this study provide a comprehensive
literature related to ERP CSFs, however the limited number of papers that consider the CSFs from the
perceptives of project managers made data gathering a tremendous effort for authors. Therefore, care should be
taken when generalizing the findings of the study. This work can be enhanced and continued by tackling the
limitation mentioned before. Also, it can be further improved by conducting a field research in a real life context
case study to evaluate the findings and the results concluded in this dissertation. Moreover, research findings
could be validated with the stakeholders’ groups involved in the ERP implementation project.
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