Key factors in the successful implementation of enterprise resource planning system

Farajollah Rahnavard,Nahid Bozorgkhou

doi:10.5267/j.msl.2014.2.013

Abstract

Article history: Received July 28, 2013 Received in revised format 20 November 2013 Accepted 4 January 2014 Available online February 12 2014 Enterprise Resource Planning Systems (ERP) are considered as the newest and most effective tools of enterprise resource planning and include an interconnected information, management and engineering system that meets all the needs of an organization. ERP implementation is costly and time-consuming and makes fundamental change in the process, if not implemented correctly it will cause challenges in most parts of the organization and will certainly fail. Therefore, the identification of key success factors in implementing ERP helps organizations avoid the loss of the project. This research aims to identify key success factors for ERP by examining 185 managers, professionals, experts of the Information and Communication Technology Institute associated with the Ministry of Communications and Information Technology of Iran. A questionnaire was used to collect data. Findings from exploratory factor analysis indicate that five factors: 1) user friendliness, flexible and consistency 2) establishment of project management; 3) alignment with user needs; 4) Management of organizational changes, and 5) observing the principles of successful implementation of ERP affect the institute and the corresponding suggestions are proposed consistent with these findings.

Highlights

During the past few years, there has been growing competition among organizations and firms to offer products and services in a global market
Findings from exploratory factor analysis indicate that five factors: 1) user friendliness, flexible and consistency 2) establishment of project management; 3) alignment with user needs; 4) Management of organizational changes, and 5) observing the principles of successful implementation of Enterprise Resource Planning Systems (ERP) affect the institute and the corresponding suggestions are proposed consistent with these findings
The study has shown that management of project establishment, alignment with user needs and product quality, management of organizational change, and observing ERP design principles and alignment with the structure are five key factors in implementing successful ERP in the Institute of Information and Communication Technology (Iran Telecommunication Research Center)

Summary

Introduction

During the past few years, there has been growing competition among organizations and firms to offer products and services in a global market. Enterprise Resource Planning Systems (ERP) is one of the most important tools for the integration of information and communication technology (ICT) in organizations to join in global market. These systems are capable of planning resources, and integrate all units and corporate functions in an integrated computer system to meet all necessary requirements. ERP systems integrate all various subsystems in organizations using the latest technologies obtained in the field of information technology. ERP implementation normally costs significantly and it is time consuming since it needs fundamental changes in processes, which creates tensions in most parts of the organizations and the outcome could be undesirable. Implementing an ERP system is one of the main challenges in recent decades, so that organizations consider the investment in ERP systems as a significant strategy, which creates competitive advantage for many organizations

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