Application of an Analytical Hierarchy Process to Prioritize the Factors Affecting ERP Implementation

Abstract

An enterprise resource planning (ERP) system is an integrated software solution, The very fact that about 60-70% of all ERP implementations in organizations around the world end up in a failure or meet their end prematurely calls for a serious look into the factors leading to such results of implementing a powerful integrating tool such as an ERP system, Literature review also shows that the AHP is the preeminent slant among the various methodologies applied to ERP projects in the past for prioritizing the attributes. Hence, in this paper we have applied the analytical hierarchy process (AHP) to Factors affecting ERP implementation. The model is based on the analysis of quality issues that affect a implementation process. To understand some criticalities of the model, a survey based on Analytic Hierarchy Process was carried out. Two sets of expert were selected i.e. End user and Third party vendor. On the basis of the results obtained, the epitome of findings is discussed.

A Comparative Study of Issues Affecting ERP Implementation in Large Scale and Small Medium Scale Enterprises in India: A Pareto Approach

“…Out of this the first two are considered as most important [30] [32]. Vijaya Kumar et al did a study to prioritize the issues affecting ERP system in medium scale fertilizer industry and the following factors were determined: adequate and correct data, training and testing, never run parallel system, conference room pilot, employee retention, customization, and clarity in management objective, external consultant dependency [33].…”

Budgeting Formulation of Irrigation’s Operation and Maintenance Cost in Indonesia Based on Area Index and Structure Index

“…The AHP has been successful applied in various fields [20][21][22][23]. This method has been used frequently for irrigation-related study field [11,[24][25][26][27][28].…”

The Extent of ERP Customization towards User Satisfaction in Daily Operation for Manufacturing Companies

“…As an implication, there were various types and amount of customizations have been done. Even though many studies [13][14][15][16][17][18] suggested the minimum customization to implement ERP successfully, the degree of customization was still unclear.…”

“…A.Yokota and K. Yasuda [9] clarified that the basic version of ERP with no or minimal customization is a category of ERP critical success factors. While M. N. V. Kumar [13] recommended maximum amount of 30% as the limit of customization level to guaranty the success of ERP implementation. However, without an adequate explanation, the extent of customization is still remained unclear.…”