A FCM-Based Dynamic Modeling of ERP Implementation Critical Failure Factors

Abstract

Implementation of Enterprise Resource Planning systems (ERPs) is a complex and costly process which usually results in serious failures. Numerous factors affect these projects implementation due to their size, complexity and high chance of failure. Therefore, identifying these factors in ERP projects is a critical issue. The majority of previous studies and research projects have been conducted in identifying ERP Critical Success Factors (CSFs) rather than Critical Failure Factors (CFFs). In order to help practitioners, this paper studies the CFFs in this kind of projects. Unfortunately, the implications of interdependency among failure factors are usually underestimated by project managers and decision makers since they are difficult to model and analyze. With this in mind, the authors have built Fuzzy Cognitive Maps (FCMs) of failure factors in ERP implementation projects. The main advantage of FCM lies in them being capable of modeling complex phenomena based on the experts' perceptions. This tool models uncertainty and related events, imitating human reasoning. Moreover, FCMs enable the developing of forecasting exercises through simulations. Practitioners would thus assess the joint influence of ERP implementation failure factors on project outcomes. The results make known to practitioners which problems will arise if the failure factors are not treated, and how these will impact on the outcomes of projects. Therefore, the tool proposed would help them to manage ERP implementation projects in a more effective and proactive way.