Enterprise Resource Planning Implementation Failures Research Articles

Critical Failure Factors in ERP Implementation: A Systematic Literature Review

It has been more than two decades of experience adopting and implementing enterprise resource planning (ERP) systems in business. However, the success of these systems remains debatable. The failure rate of ERP systems is relatively high, despite the fact that success stories of ERPs are recorded in earlier research studies. The main purpose of this study is to identify and assess the degree of ERP implementation failure factors encountered by organisations and confirm which is significant in various countries. A systematic literature review was performed, considering research studies published between 2000 to 2022 for this purpose. This study critically reviewed 55 relevant articles published in reputable journals. The systematic literature review identified 35 failure factors categorised as the most critical based on their occurrence in past studies. The top five failure factors included lack of top management support, Inadequate education and training, the mismatch between the system and business strategies, lack of project management performers, and users unwilling to use the ERP system. According to the country-wise evaluation, "Lack of top management support" is a critical failure factor of the ERP implementation for all clusters. However, the more frequent impact for Asian countries, with a moderate impact for European countries and less for North American countries. Also, "Inadequate education and training" is a major Critical failure factor for Asian and North American countries during ERP implementation projects.This is the first comprehensive systematic review attempted to identify the Critical failure factor during the implementation of ERP systems.

Analysis of ERP implementation to develop a strategy for its success in developing countries

Research studies provide evidence of large number of Enterprise Resource Planning (ERP) projects implementation failures. Even then organizations are shifting their strategic focus on ERP to gain various tangible benefits. The key objective of this research study is to develop a strategy based on empirical evidences to overcome the issues of ERP implementations failure for developing countries like Pakistan. The mixed method of research with sequential strategy has been used to explore and explain the realities behind success and failure of ERP implementation. In the first phase of the research, qualitative data has been gathered through extensive literature review and interviews. NVivo 10 software has been used to explore the critical success factors of ERP implementation. In the 2nd phase of the research, surveys have conducted. SPSS 20 tool has been used for applying exploratory factor analysis and then Partial Least Square based Structural Equation Modelling (PLS-SEM) with Smart PLS 3 has been used to know the existence and strength of relationship between dependent and independent variables identified in the study. It has been found that Commitment by the Top Management, Project-Management, Change Management, Business Process Re-Engineering have strong relationship with the successful implementation of ERP, whereas Training-education and Vendor management have been found to be less significant for the ERP implementation success. This study has provided a great contribution for the recipient client organizations, ERP implementers, ERP vendors and Consultants intending to join the implementation cluster. The implementation strategy was validated through a case study in public sector organization which gave encouraging results.

Relative Importance of CSF in ERP Implementation Strategy: A Multi-Participant AHP Approach

Enterprise resource planning (ERP) systems have found a wide acceptability among organisations, albeit with a pinch of salt. ERP systems appropriately bring about uniformity in the software across the organisation by bringing all the processes under one umbrella. But the low adoption rates and greater time to value are often reasons for low ERP implementation success rates and even ERP implementation failures. Researchers have chronicled various critical success factors (CSF) that determine a successful ERP implementation. This paper utilises multi-participant analytic hierarchy process (AHP) to determine the relative importance of CSF in various ERP implementation strategies. The paper contributes to the existing knowledge of CSF in ERP implementations by showcasing that CSF have varying importance across ERP implementation strategies.

Testing and validating the ERP success evaluation model for higher education institutes of Pakistan

Higher Education Commission (HEC) of Pakistan has taken profound measures to bring significant improvement in universities of Pakistan. HEC signed an agreement with Oracle PeopleSoft to equip universities with high-tech information technology (IT) solutions. To this end, HEC initially implemented enterprise resource planning (ERP) campus management system in seven universities of Pakistan as a pilot project. However, there is a void in literature to evaluate these ERP implementations. This research formulates a conceptual model based on strong background theories to effectively evaluate the success of ERP system implementation. A questionnaire based online survey approach is used to collect data from 323 respondents. Findings of the paper result in a refined model for analysing success of ERP implementation. By employing this model, the paper also reports on the success and failure of ERP implementation. Finally, the undertaken study implies that its findings may substantially add regarding the future decisions of ERP implementations.

Testing and validating the ERP success evaluation model for higher education institutes of Pakistan

Higher Education Commission (HEC) of Pakistan has taken profound measures to bring significant improvement in universities of Pakistan. HEC signed an agreement with Oracle PeopleSoft to equip universities with high-tech information technology (IT) solutions. To this end, HEC initially implemented enterprise resource planning (ERP) campus management system in seven universities of Pakistan as a pilot project. However, there is a void in literature to evaluate these ERP implementations. This research formulates a conceptual model based on strong background theories to effectively evaluate the success of ERP system implementation. A questionnaire based online survey approach is used to collect data from 323 respondents. Findings of the paper result in a refined model for analysing success of ERP implementation. By employing this model, the paper also reports on the success and failure of ERP implementation. Finally, the undertaken study implies that its findings may substantially add regarding the future decisions of ERP implementations.

Implementation of Failure Enterprise Systems in Organizational Perspective Framework

Failure percentage of Enterprise Resource Planning (ERP) implementation projects stay high, even following quite a while of endeavours to diminish them. In this paper, the author proposes the exact exploration that plans to decrease the failure percentage of ERP projects. Nonetheless, most endeavours to enhance project achievement have concentrated on varieties inside of the conventional project management pattern. Author contends that a main driver of high ERP Implementation project failure percentage is the conventional pattern itself. Implementation of another pattern is a Value-Driven Change Leadership (VDCL) of reducing ERP Implementation failure percentage. This paper proposes an exact examination to explain the part of the new pattern (VDCL) in diminishing ERP Implementation failure percentage. This paper portrays the exploratory procedure for an exact study to the use of VDCL in decreasing ERP Implementation failure percentage.

An Assessment to Identify Causes of ERP Implementation Failure and to Predict Its Success: A Case Study on Beximco Pharmaceuticals Limited

Evolving in early 1990s, Enterprise Resource Planning (ERP) has become a global standard for the premier business firms for maintain their operations. ERP automates and streamlines business processes, reduces the complexity of collaboration, optimizes the operations that helps to gain superior control over business. However, ERP implementation success rate is meager in the world due to its complex nature of implementation and cost. This paper shows how to access the success of ERP implementation through a case study of a leading pharmaceutical company of Bangladesh. This study identified the causes of preliminary success in pre-implementation phase and the causes of delay in the implementation phase of ERP.

ERP Selection Using Fuzzy-MOGA Approach: A Food Enterprise Case Study

Selection of Enterprise Resource Planning (ERP) system is a complex decision-making process and one of the critical success factors (CSFs) in ERP adoption life cycle. Many ERP implementation failures are caused by improper package selection. Various approaches have been used, but not using optimization techniques. This study developed a Fuzzy-Multiobjective Genetic Algorithm (F uzzy-MOGA ) approach to optimize the quality of ERP selection criteria that complies with ISO25010 quality standard and cost. A case study was conducted on an agro-industrial company. The result shows the approach of Fuzzy-MOGA with NSGA-II method facilitate a complex decision-making for ERP selection optimally.

The effects of transformational leadership and ERP system self-efficacy on ERP system usage

Purpose– During the past decade, there has been vast investment in Enterprise Resource Planning (ERP) system packages, in addition to a significant increase in the importance of acceptance by users of the ERP system regarding the success or failure of ERP implementation. The purpose of this paper is to identify the external factors which influence ERP system acceptance. The work is motivated by the realization that transformational leadership (TL) and ERP system self-efficacy are critical external factors that can affect ERP system acceptance.Design/methodology/approach– A framework has been developed from a study of literature in the field of TL, ERP system self-efficacy and the technology acceptance model (TAM). A survey utilizing a questionnaire was used to collect data and a total of 151 usable responses were analyzed by using the partial least squares method.Findings– The results of the study indicate that TL can either directly or indirectly influence perceived usefulness via the assimilation of self-efficacy in a positive manner. Also, TL has been found to have a positive influence on perceived ease of use both directly and indirectly via application of self-efficacy measures.Research limitations/implications– The findings were drawn from two Iranian companies, hence the results are not necessarily generalizable to other nations and other cultures.Practical implications– Management should provide TL development programs for their ERP leaders and encourage them to implement transformation in a manner that could increase assimilation and application of self-efficacy when using the ERP system.Originality/value– The study can provide ERP managers with a better understanding of how they can use TL behavior and skills in motivating and enhancing employees’ self-efficacy in order to achieve ERP system usage success.

Erp in Indian Smes - A Study of Critical Failure Factors

ERP (Enterprise Resource Planning) comprises of a commercial software package that promises the seamless integration of all the information flowing through the company-financial, accounting, human resources, supply chain and customer information. Research on the implementation of ERP in particular region like India shows that, the job of implementing an ERP is a riskier business for SMEs than for LEs, still SMEs have been receiving lesser focus on ERP from researchers than LEs. Most of the researches to be done on critical success CSFs. Many companies in India have implemented ERP to capture its benefits and still there is a lack of examining Critical Factors that contribute in the failure of ERP implementation at Indian SMEs. In this dissertation Qualitative survey based method was used to explore what are the possible critical failure factors that contribute in the failure of ERP implementation at India SMEs. A questionnaire is used to collect the data from personal observations and interviews with people those who are having experience of ERP implementation in Indian SMEs. In this study, it was found that an ERP implementation at Indian SMEs is not exactly same from the ERP implementations found in the existing literature for the worldwide LEs. When discussing the critical failure for an ERP implementation at Indian SMEs, it was found that although the are more or less same but the importance of in term of their priorities (importance) are defiantly different from the ERP implementation of LEs.

Risk assessment for enterprise resource planning (ERP) system implementations: a fault tree analysis approach

Enterprise resource planning (ERP) system implementations are often characterised with large capital outlay, long implementation duration, and high risk of failure. In order to avoid ERP implementation failure and realise the benefits of the system, sound risk management is the key. This paper proposes a probabilistic risk assessment approach for ERP system implementation projects based on fault tree analysis, which models the relationship between ERP system components and specific risk factors. Unlike traditional risk management approaches that have been mostly focused on meeting project budget and schedule objectives, the proposed approach intends to address the risks that may cause ERP system usage failure. The approach can be used to identify the root causes of ERP system implementation usage failure and quantify the impact of critical component failures or critical risk events in the implementation process.

Analysis of critical failure factors in ERP implementation: an Indian experience

The opening of economy and changes in the economic policies during the early 90s opened up the market for Indian manufacturers. They become the global suppliers to large manufacturers across the globe. This change forced many manufacturers to adapt to the modern technologies like enterprise resource planning (ERP) to comply with the business requirement of the global manufacturers and to reduce time of delivery. Due to the lack of any crucial resources, 60% to 70% of the ERP projects are not implemented successfully. This study examines the current literature on causes of ERP implementation failure in context to Indian manufacturing sector. The study is then subjected to root-cause analysis of the failure factors to which the Pareto analysis is applied to identify the vital factors. The top two vital factors are sub divided into various factors and the top sub five factors are abstracted based on the frequency of occurrences of these factors in the literature.

A review of ERP implementation in India

The implementation of enterprise resource planning (ERP) systems has been the subject of in-depth discussion in the area of management of information systems. ERP systems play a vital role in the paradigm of business process reengineering in terms of small- to large-sized technological projects. Although many studies have been conducted on ERP implementation in organisations' belong to developed nations, very little research has been conducted in developing countries, especially in Indian organisations. Therefore, the goal of this paper is to review ERP implementation issues and failures in Indian organisations mainly focusing on critical success factors as well as issues in other countries. This paper also discusses ERP implementation challenges in India and overcoming the challenges. It also further focuses on success and failure stories of ERP implementation in India.

Challenges in enterprise resource planning implementation: state‐of‐the‐art

PurposeThe purpose of this paper is to present an integrative and detailed review of the critical factors that cause enterprise resource planning (ERP) implementation failures, based on an in‐depth literature review (1997‐2009).Design/methodology/approachKeywords relating to the subject of this paper were defined, and used to search web engines and journal databases for papers on ERP implementation failures. These papers were further analysed and classified into various categories.FindingsNine factors are found to be critical in the failure of ERP implementations: excessive customisation, dilemma of internal integration, poor understanding of business implications and requirements, lack of change management, poor data quality, misalignment of IT with business, hidden costs, limited training and lack of top management support.Research limitations/implicationsThe paper proposes the development of a framework to address each ERP implementation failure factor in its entirety based on the frequency of its occurrence in industry, as a topic for future research.Originality/valueThe paper contributes to research in the ERP domain by highlighting ERP implementation challenges from a critical failure perspective and proportion of the failures, as opposed to presenting critical success factors. Failure factors with examples provides a clearer visibility of the costly damages that can be introduced into organisations in the event that these failures are ignored.

The Core Critical Success Factors in Implementation of Enterprise Resource Planning Systems

The Implementation of Enterprise Resource Planning (ERP) systems require huge investments while ineffective implementations of such projects are commonly observed. A considerable number of these projects have been reported to fail or take longer than it was initially planned, while previous studies show that the aim of rapid implementation of such projects has not been successful and the failure of the fundamental goals in these projects have imposed huge amounts of costs on investors. Some of the major consequences are the reduction in demand for such products and the introduction of further skepticism to the managers and investors of ERP systems. In this regard, it is important to understand the factors determining success or failure of ERP implementation. The aim of this paper is to study the critical success factors (CSFs) in implementing ERP systems and to develop a conceptual model which can serve as a basis for ERP project managers. These critical success factors that are called “core critical success factors” are extracted from 62 published papers using the content analysis and the entropy method. The proposed conceptual model has been verified in the context of five multinational companies.

Developing ERP Systems Success Model for the Construction Industry

Recently, a significant number of major construction companies embarked on the implementation of integrated information technology solutions such as enterprise resource planning (ERP) systems to better integrate various business functions. However, these integrated systems in the construction sector present a set of unique challenges, different from those in the manufacturing or other service sectors. There have been many cases of failure in implementing ERP systems in the past, so it is critical to identify and understand the factors that largely determine the success or failure of ERP implementation in the construction industry. This paper presents the process of developing an ERP systems success model to guide a successful ERP implementation project and to identify success factors for ERP systems implementation. The paper identifies factors associated with the success and failure of ERP systems, and develops a success model to analyze the relationships between key factors and the success of such systems. The proposed ERP systems success model adapts the technology acceptance model and DeLone and McLean’s information systems success model and integrates those with key project management principles. The goal of the ERP systems success model is to better evaluate, plan, and implement ERP projects and help senior managers make better decisions when considering ERP systems in their organization.

Exploring managerial factors affecting ERP implementation: an investigation of the Klein‐Sorra model using regression splines

Abstract. Predicting successful implementation of enterprise resource planning (ERP) systems is still an elusive problem. The cost of ERP implementation failures is exceedingly high in terms of quantifiable financial resources and organizational disruption. The lack of good explanatory and predictive models makes it difficult for managers to develop and plan ERP implementation projects with any assurance of success. In this paper we investigate the Klein & Sorra theoretical model of implementation effectiveness. To test this model we develop and validate a data collection instrument to capture the appropriate data, and then use multivariate adaptive regression splines to examine the assertions of the model and suggest additional significant relationships among the factors of their model. Our research offers new dimensions for studying managerial interventions in IT implementation and insights into factors that can be managed to improve the effectiveness of ERP implementation projects.

Realigning Top Management's Strategic Change Actions for ERP Implementation: How Specializing on Just Cultural and Environmental Contextual Factors Could Improve Success

Abstarct An enterprise resource planning (ERP) system and its implementation represents a substantial organizational change. Top management involvement has been cited as a critical factor in the success, as well as, failure of ERP implementation. To increase ERP implementation success, we propose that top management redesign its ERP implementation work to strategically concentrate on managing employee behavioural change to increase employee acceptance and commitment to the ERP project by specializing its involvement on just two factors – cultural and environmental contextual factors. Three case studies are used to validate this proposition. Eight strategic task, responsibility, and relationship changes to be used by top management to increase ERP implementation success are highlighted in the paper.