Identifying critical issues in enterprise resource planning (ERP) implementation

Abstract

Much has been written on implementation of enterprise resource planning (ERP) systems in organizations of various sizes. The literature is replete with many cases studies of both successful and unsuccessful ERP implementations. However, there have been very few empirical studies that attempt to delineate the critical issues that drive successful implementation of ERP systems. Although the failure rates of ERP implementations have been publicized widely, this has not distracted companies from investing large sums of money on ERP systems. This study reports the results of an empirical research on the critical issues affecting successful ERP implementation. Through the study, eight factors were identified that attempts to explain 86% of the variances that impact ERP implementation. There was a strong correlation between successfully implementing ERP and six out of the eight factors identified.