• Title/Summary/Keyword: ERP Implementation Success

Search Result 60, Processing Time 0.025 seconds

Influence of IS Planning and Change Management on ERP Implementation Success

  • Moon, Tae-Soo
    • Journal of Digital Convergence
    • /
    • v.7 no.1
    • /
    • pp.149-156
    • /
    • 2009
  • Enterprise Resource Planning (ERP) system is one of key information technology to shape doing business. ERP adoption characteristics like IS planning and change management before ERP implementation are rising in importance, because of gaining competitive advantage. The purpose of this study is to analyze the impact of the characteristics of ERP adoption on ERP implementation success. From previous researches on ERP adoption and implementation, two characteristics of ERP adoption such as IS planning and change management, and 2 dependent variables such as process innovation and business performance, are identified. From data collection processes, 122 samples are collected. The results of hypothesis testing show that organizations with IS plan have higher implementation performance than organizations without IS plan. Also, organizations with the process of change management have higher implementation performance than organizations without the process of change management. Also, The interaction effect between IS planning and change management shows bigger impact in ERP implementation success.

  • PDF

An Empirical Study on Critical Success Factors in Implementing ERP System (ERP시스템 구축단계 별 주요성공요인에 관한 실증적 연구)

  • 김상훈;최광돈
    • Journal of the Korean Operations Research and Management Science Society
    • /
    • v.26 no.4
    • /
    • pp.1-21
    • /
    • 2001
  • The purpose of this stuffy is to derive critical success factors for ERP system implementation by integrating managerial, technical. human resource and organizational culture factors welch have been proposed as influencing factors for the performance of ERP system implementation in previous studios. Especially, this stuffy divides ERP system implementation process into preparation stave, implement stage and settle-down and stabilization stave, and then derives critical success factors in each stage. The data for empirical analysis of the research model are collected from 64 companies and the respondents for questionnaire consist of ERP system implementation project managers and user department managers in companies which have already operated it after ERP system installation. The main results of this study are as follows. First, it derives 27 success factors through comprehensive review of various factors which may affect ERP system implementation performance, and categorizes them into one of three stapes preparation stave, implement stage, and settle-down and stabilization stage. Second, the relationship between many success factors at each stave (preparation stave, implement stage, and settle-down and stabilization stave) and performance variables is tested. As a result, the significant correlations between many success factors at each stage and ERP system implementation performance are found, and the difference among success factors in the degree of influencing the system performance is significantly shown. finally, the relationship between process-oriented performance variables and result-oriented performance ones is tested. As a result, it is found that there is significant correlation between process-oriented performance variables except for one variable-project resource management appropriateness - and result-oriented performance ones. The theoretical contribution of this study is to derive a comprehensive model of critical success factors for implementing ERP system project from the system deve1opment life cycle perspective, and empirically test it through field survey with a wide range of data collection. And, the practical implication of this study is to present the desirable guidelines for performing ERP system implementation project successfully.

  • PDF

An Empirical Study on Critical Success Factors of ERP System according to BPR implementation timing (BPR 실시시점에 따른 ERP시스템의 주요성공요인에 관한 실증적 연구)

  • Choi, Kwang-Don
    • Journal of the Korea Society of Computer and Information
    • /
    • v.10 no.4 s.36
    • /
    • pp.315-336
    • /
    • 2005
  • The purpose of this study is to derive critical success factors for ERP system implementation by integrating managerial, technical, human resource and organizational culture factors which have been proposed as influencing factors for the performance of ERP system implementation in previous studies. The main results of this study are as follows. First, it derives 33 success factors through comprehensive review of various factors which may affect ERP system implementation performance, and categorizes them into one of three stages : preparation stage, implement stage, and settle-down and stabilization stage. Second, this study tests whether there are different correlations or not between the success factors of each ERP system implementation stage and ERP system implementation performance depending upon the strategies of ERP system implementation. As a result, it is shown that some of success factors have significantly different correlations with performance variables in accordance with BPR implementation timing.

  • PDF

The Effects of Industry Classification on a Successful ERP Implementation Model

  • Lee, Sangmin;Kim, Dongho
    • Journal of Information Processing Systems
    • /
    • v.12 no.1
    • /
    • pp.169-181
    • /
    • 2016
  • Organizations in some industries are still hesitant to adopt the Enterprise Resource Planning (ERP) system due to its high risk of failures. This study examined how industry classification affects the successful implementation of the ERP system. To achieve this goal, we reinvestigated the existing ERP Success Model that was developed by Chung with the data from various industry sectors, since Chung validated the model only in the engineering and construction industries. In order to test to see if the Chung model can be applicable outside the engineering and construction industries, the relationships between the ERP success indicators and the critical success factors in the Chung model and those in the sample data collected from ten different industry sectors were compared and investigated. The ten industry sectors were selected based on the Global Industry Classification Standard (GICS). We found that the impact of success factors on the success of implementing an ERP system varied across industry sectors. This means that the success of ERP system implementation can be industry-specific. Thus, industry classification should be considered as another factor to help IT decision makers or top-management avoid ERP system failures when they plan to implement a new ERP system.

Culture Influence on Enterprise Planning Resource (ERP) Implementation In Saudi Arabia's Public Sector

  • Alzahrani, Ahmed Omar
    • International Journal of Computer Science & Network Security
    • /
    • v.22 no.7
    • /
    • pp.397-403
    • /
    • 2022
  • Enterprise resource planning (ERP) is widely adopted among enterprises and organizations. In recent years, researchers have become increasingly interested in factors related to ERP implementation success. In this paper, top management members, IT professionals, and end-users were interviewed in the study. The study used Hofstede's main cultural dimensions as a theoretical framework to identify cultural characteristics and their influence on ERP implementation within public organizations in Saudi Arabia. The study followed a qualitative methodology approach to carry on the study to investigate the national culture characteristics in Saudi Arabia that may influence ERP implementation success. The study found some culturally related factors that could influence success in ERP implantation projects in Saudi Arabia..

ERP System Education/Training and Other Related Factors Which Have Critical Influence On ERP Implementation Success (ERP 시스템 성공을 위한 ERP 시스템 교육/훈련 및 관련 요인 분석)

  • Kim, Yeong-Real
    • Journal of Korea Society of Industrial Information Systems
    • /
    • v.13 no.3
    • /
    • pp.100-109
    • /
    • 2008
  • In the 1990s and 2000s there was considerable growth in implementation of Enterprise Resource Planning(ERP) Systems. It is estimated that the ERP market will grow to about $65 billion by 2009. Companies expect these systems to support many of the day to day business transactions. However, the implementation projects of ERP are big, strategic and complex projects which involve lots of time, scope and costs. Because of that, companies have to create conditions, in which they can implement chosen solution in expected time, scope and budgeted costs. This means that companies should be aware of what most critical factors for success of ERP implementations are. This study will first investigate the ERP implementation CSFs by studying prior published researches on the field of ERP implementation. Then, this study will discuss in depth some important factors of ERP implementation and represent preliminary results CSFs of ERP implementation empirical survey.

  • PDF

Top Management Commitment in Enterprise Resource Planning Implementation Success : Preliminary Study in Indonesian State-Owned Enterprises

  • Hartijasti, Yanki
    • Journal of Information Technology Applications and Management
    • /
    • v.18 no.3
    • /
    • pp.41-59
    • /
    • 2011
  • This preliminary study held in two Indonesian state-owned enterprises (SOEs) showed empirical evidence that top management commitment was perceived to be the most important critical factor contributing to enterprise resource planning (ERP) implementation success, compared to top management support and top management involvement. Therefore, top management and middle management must continually show commitment during the ERP implementation process. This finding could serve as a reference for further study in a larger number of Indonesian SOEs.

Understanding the Mismatch between ERP and Organizational Information Needs and Its Responses: A Study based on Organizational Memory Theory (조직의 정보 니즈와 ERP 기능과의 불일치 및 그 대응책에 대한 이해: 조직 메모리 이론을 바탕으로)

  • Jeong, Seung-Ryul;Bae, Uk-Ho
    • Asia pacific journal of information systems
    • /
    • v.22 no.2
    • /
    • pp.21-38
    • /
    • 2012
  • Until recently, successful implementation of ERP systems has been a popular topic among ERP researchers, who have attempted to identify its various contributing factors. None of these efforts, however, explicitly recognize the need to identify disparities that can exist between organizational information requirements and ERP systems. Since ERP systems are in fact "packages" -that is, software programs developed by independent software vendors for sale to organizations that use them-they are designed to meet the general needs of numerous organizations, rather than the unique needs of a particular organization, as is the case with custom-developed software. By adopting standard packages, organizations can substantially reduce many of the potential implementation risks commonly associated with custom-developed software. However, it is also true that the nature of the package itself could be a risk factor as the features and functions of the ERP systems may not completely comply with a particular organization's informational requirements. In this study, based on the organizational memory mismatch perspective that was derived from organizational memory theory and cognitive dissonance theory, we define the nature of disparities, which we call "mismatches," and propose that the mismatch between organizational information requirements and ERP systems is one of the primary determinants in the successful implementation of ERP systems. Furthermore, we suggest that customization efforts as a coping strategy for mismatches can play a significant role in increasing the possibilities of success. In order to examine the contention we propose in this study, we employed a survey-based field study of ERP project team members, resulting in a total of 77 responses. The results of this study show that, as anticipated from the organizational memory mismatch perspective, the mismatch between organizational information requirements and ERP systems makes a significantly negative impact on the implementation success of ERP systems. This finding confirms our hypothesis that the more mismatch there is, the more difficult successful ERP implementation is, and thus requires more attention to be drawn to mismatch as a major failure source in ERP implementation. This study also found that as a coping strategy on mismatch, the effects of customization are significant. In other words, utilizing the appropriate customization method could lead to the implementation success of ERP systems. This is somewhat interesting because it runs counter to the argument of some literature and ERP vendors that minimized customization (or even the lack thereof) is required for successful ERP implementation. In many ERP projects, there is a tendency among ERP developers to adopt default ERP functions without any customization, adhering to the slogan of "the introduction of best practices." However, this study asserts that we cannot expect successful implementation if we don't attempt to customize ERP systems when mismatches exist. For a more detailed analysis, we identified three types of mismatches-Non-ERP, Non-Procedure, and Hybrid. Among these, only Non-ERP mismatches (a situation in which ERP systems cannot support the existing information needs that are currently fulfilled) were found to have a direct influence on the implementation of ERP systems. Neither Non-Procedure nor Hybrid mismatches were found to have significant impact in the ERP context. These findings provide meaningful insights since they could serve as the basis for discussing how the ERP implementation process should be defined and what activities should be included in the implementation process. They show that ERP developers may not want to include organizational (or business processes) changes in the implementation process, suggesting that doing so could lead to failed implementation. And in fact, this suggestion eventually turned out to be true when we found that the application of process customization led to higher possibilities of failure. From these discussions, we are convinced that Non-ERP is the only type of mismatch we need to focus on during the implementation process, implying that organizational changes must be made before, rather than during, the implementation process. Finally, this study found that among the various customization approaches, bolt-on development methods in particular seemed to have significantly positive effects. Interestingly again, this finding is not in the same line of thought as that of the vendors in the ERP industry. The vendors' recommendations are to apply as many best practices as possible, thereby resulting in the minimization of customization and utilization of bolt-on development methods. They particularly advise against changing the source code and rather recommend employing, when necessary, the method of programming additional software code using the computer language of the vendor. As previously stated, however, our study found active customization, especially bolt-on development methods, to have positive effects on ERP, and found source code changes in particular to have the most significant effects. Moreover, our study found programming additional software to be ineffective, suggesting there is much difference between ERP developers and vendors in viewpoints and strategies toward ERP customization. In summary, mismatches are inherent in the ERP implementation context and play an important role in determining its success. Considering the significance of mismatches, this study proposes a new model for successful ERP implementation, developed from the organizational memory mismatch perspective, and provides many insights by empirically confirming the model's usefulness.

  • PDF

A Study of Success Factors Influencing Each Phase of ERP System Implementation (전사적 자원관리 시스템 구현의 성공요인: Markus의 단계별 성공요인에 관한 실증분석)

  • Lee Jae-Jung
    • The Journal of Information Systems
    • /
    • v.15 no.2
    • /
    • pp.153-171
    • /
    • 2006
  • The objective of this research project is empirically investigating factors influencing EPP system implementation based on the degree of volatility of business environment. The results show that computes with low volatility have successfully implement ERP system compared to companies with high volatility. This research project also identified success factors of each phased chartering phase, executive participation sound assessment of business condition, good understanding of ERP system and carefully constructed case are identified as success factors. During project expenditures, participation of various groups, technical resources, prefect and change management are found to be important for successful construction. Trained users, integration of systems, well-designed process and technical and human resource are found to be success factors during shakedown phase. Managers commitment technical infrastructure, system flexibility, and adequate resource for maintenance and renewing system are identified as success factors of onward and upward phase.

  • PDF

A Study on Project Success Factors and Individual Personality for Project Team Activation - Based on ERP Project - (프로젝트팀 활성화를 위한 개인성향과 프로젝트 성공 요인에 대한 연구 -ERPProject중심으로-)

  • Park, Jong-Ki;Kang, Kyong-Sik
    • Proceedings of the Safety Management and Science Conference
    • /
    • 2006.11a
    • /
    • pp.279-286
    • /
    • 2006
  • Since 1990's, many enterprises have implemented ERP System. Especially, they want to become an advanced company use ERP implementation. Already, ERP system come to high level which is stabilized and support independent business process of many industry sectors. Although most companies had previous good plans, but those are not satisfied. Because of failed to change management and had many problem about Project team operation. Therefore, important success factors for ERP project are change management and organization activation for Project team. The purpose of this study is suggest to improve method about team activation through analysis the Project team member's individual personality as a factor that makes the success of Project team. This paper studied success factors of project team and plan for organization activation. The results of this study can be used for a successful implementation of the ERP system as make of Project team consider of individual personality and administer a Project team.

  • PDF