Modeling interrelationships between CSF in ERP implementations: total ISM and MICMAC approach

Abstract

True enterprise resource planning systems (ERP) that encompass the entire gamut of applications pertaining to an organization and bring them under one umbrella have been around since the late 1990s. These have undergone various updates with respect to encompassing best-in-class functionality and also extending their frontiers beyond the enterprise boundaries. The research into their success and failures have been a focal point since the time the word ERP was coined by Gartner Group (Harreld 2001). In this respect, the present research work is an effort to find inter-relationships and inter-dependencies between the critical success factors (CSF), thereby outlining which of these CSF have the driving power towards success of ERP implementations and thus should be paid more focus; and which of these CSF are dependent on other CSF and indirectly work towards the success of ERP implementations. This paper utilizes interpretive structural modeling (ISM) and extends it by using total interpretive structural modeling and cross-impact matrix-multiplication (MICMAC) Approach. The hierarchical dependence between the CSF indicates how these factors relate to each other. This paper not only unearths their inherent interdependence but it also specifies the dominant CSF having greater driving power towards success of ERP implementations. Knowledge of CSF that have greater potential to influence the success of ERP implementations would help project managers to direct their resources towards those CSF in order to get a favorable outcome.