Factors affecting ERP system implementation effectiveness

Abstract

Purpose-Enterprise resource planning (ERP) systems enhance productivity and working quality by offering integration, standardization and simplification of multiple business transactions. The present study seeks to introduce a conceptual framework that investigates the way that human inputs (top management, users, external consultants) are linked to communication effectiveness, conflict resolution and knowledge transfer in the ERP consulting process, as well as the effects of these factors on ERP system effective implementation. Design/methodology/approach-The examination of the proposed conceptual framework was made with the use of a newly developed questionnaire. The questionnaire was distributed to a group of 361 Greek companies that have implemented an ERP system. Information technology (IT) managers were selected as the key respondents of the questionnaire. After the completion of the four month research period (September to December 2008), 108 usable questionnaires were returned (response rate ¼ 31 percent approximately). The empirical data were analyzed using the structural equation modelling technique (Lisrel 8.74). Findings-The main findings of the empirical study can be summarized in the following categories: the assistance provided by external consultants during the ERP implementation process is essential; knowledge transfer is an extremely significant factor for ERP system success; knowledge transfer concerning technical aspects of ERP systems is more important than effective handling of communication, as well as conflict resolution among organizational members; the role of top management support seems to be of less importance that the one provided by users. Research limitations/implications-The present study is limited by the poor definition of its population (due to lack of available data) and the relatively small size of the sample. Practical implications-The paper points out areas that adopting companies should emphasize in order to successfully implement an ERP system and, therefore, harvest its potential benefits. Originality/value-The paper proposes an enhanced conceptual framework that examines vital issues concerning ERP system effective implementation, thus, providing valuable outcomes for decision makers and academics. The originality of the paper lies in its three dimensional approach.

Challenges and Success Factors of ERP Systems in Australian SMEs

“…Therefore, clear goals, a business plan and a vision are needed to guide the ongoing organizational effort. In detail, a lack of financial resources, training issues from under-budget, inadequate or neglected training, a lack of internal expertise, a lack of consensus among the organizational senior management, inaccurate reports, resistance to change and alignment between software and business process are hindrances to effective ERP implementation [58,62]. Therefore, we recommend that the SME proactively commits to the implementation of NetSuite business processes and to follow the above formulated implementation steps in order to avoid these issues and to complete the project successfully.…”

Results of Implementing ERP System in a Multi-plant Enterprise

“…It has also been proven that passing on knowledge about the technical aspects of ERP systems is more important than effective communication and conflict resolution among members of an organization. It also seems that top management assistance in ERP implementation is less important than acceptance by its users [3]. ERP systems enable businesses to run accounting and manage different areas of business.…”

“…In literature, factors influencing the success of enterprise ERP implementation have been quite widely discussed, as well as the need to improve approaches and implementation methods. [1][2][3][4] Some of the works are also devoted to the specifics of multi-plant enterprise management and the functioning of their ERP systems [5][6][7]. In the article using a case study of the implementation of one of the Polish ERP systems of Macrologic in several multi-plant enterprises, it demonstrates how it improved the functioning and organization of processes in these companies.…”

The Effects of the Critical Success Factors for ERP Implementation on the Comprehensive Achievement of the Crucial Roles of Information Systems in the Higher Education Sector

“…This is because they have the required knowledge and expertise to assist the adopting organizations in the effective use of the system and realize both managerial and operational benefits. It was indicated that the consulting process is a necessary step for organizations that are willing to implement such system (Maditinos, Chatzoudes, & Tsairidis, 2011;Zhu et al, 2010). This necessity originated from the ERP's integrative nature, which makes its implementation more complex than that of traditional systems (Wang & Chen, 2006).…”