Reengineering for Enterprise Resource Planning (ERP) Systems Implementation

Abstract

Reengineering is a concept that is applicable to all industries, particularly information and communication technology (ICT) projects regardless of organizational type, size, culture, or location. The enterprise resource planning (ERP) system frequently requires organizations to change their existing business processes to harmonize them its functional activities. 72% of the ERP implementation failures reported worldwide (Eric, 2010) because of the various critical success factors (CSFs). A Critical Success Factor (CSF) is defined as a factor needed to implement ERP system successfully. Assessing the importance of CSFs of Enterprise Resource Planning systems has always remained an important concern for academicians and researchers. This study explores and assesses the CSFs affecting the ERP implementation success. Long term Top management Support (LTS), Perceived ERP benefits (PEB), ERP in-house Training (EIT), Project Tracking (PTG), Visible Project Phases (VPP), Project Phase Update (PPU), Interdepartmental Cooperation (IDP), Strategic IT planning (STP), ERP vendor Support (EVS), and Data Analysis and Conversion (DAC) were found dominant critical factors for the success of the ERP implementation in the manufacturing sector. This study investigates how many CSFs are strongly correlated with each other for the success of ERP projects in the manufacturing sector. Furthermore, this study also tests empirically using the Statistical Package for Social Science Analysis of Moment on Structures (SPSS AMOS 18.0) to justify the level of CSFs among the local and joint-venture companies using a t-test analysis.