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Research Objectives

An Empirical Study on Critical Success Factors for Enterprise Systems Implementation Fiona Nah and Janet Lau College of Business Administration University of Nebraska-Lincoln. Research Objectives. Identify Critical Success Factors (CSFs) for ERP Implementation What are they?

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Research Objectives

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  1. An Empirical Study onCritical Success Factors for Enterprise Systems ImplementationFiona Nah and Janet LauCollege of Business Administration University of Nebraska-Lincoln

  2. Research Objectives • Identify Critical Success Factors (CSFs) for ERP Implementation • What are they? • Degree of criticalness of each factor? • From CIOs, implementers, vendors, consultants, and end-users perspectives • This presentation reports findings from CIOs

  3. Research Procedures • Through a comprehensive review of the literature, eleven factors were found to be critical to ERP implementation success • These factors were classified into the respective phases (chartering, project, shakedown, onward and upward) of the ERP life cycle model proposed by Markus and Tanis • The survey was mailed out to the CIOs of Fortune 1000 companies • Option to reply by mail or thru’ our web site

  4. The Eleven CSFs Identified

  5. Top Management Support Business Plan & Vision BPR & Minimum Customization Communication Software Development, Testing & Troubleshooting Project Champion ERP Teamwork & Composition Change Management Program and Culture Project Management Monitoring and Evaluation of Performance Appropriate Business & IT Legacy Systems x x x Bingi, Sharma & Godla (1999) x x x x Buckhout, Frey & Nemec (1999) x x x x Falkowski, Pedigo, Smith & Swanson (1998) x x X x x x x x x Holland, Light & Gibson (1999) x x X x x x x x Roberts & Barrar (1992) x  x x x x x x x Rosario (2000) x x X x x Scheer & Habermann (2000) x Stefanou (1999) x x x x x Sumner (1999) x x X x x x x x x Wee (2000) x x X

  6. Process Theory Approach by Markus and Tanis • chartering -- decisions defining the business case and solution constraints; • project -- getting system and end users up and running; • shakedown -- stabilizing, eliminating "bugs", getting to normal operations; • onward and upward -- maintaining systems, supporting users, getting results, upgrading, system extensions.

  7. PREPARATION ANALYSIS DESIGN IMPLEMENTATION MAINTENANCE ONWARD & UPWARD CHARTERING PHASE PROJECT PHASE SHAKEDOWN PHASE ERP Teamwork & Composition Top Management Support Business Vision Business Plan & Vision Effective Communication Project Management Project Champion Appropriate Business & IT Legacy Syst Change Mgmt. Program & Culture BPR & Minimum Customization S/W Dev, Testing & Troubleshooting Monitoring & Evaluation of Performance Classification of CSFs into Markus and Tanis' ERP Life Cycle Model

  8. Survey Responses • Total responses to date -- 70 • by mail – 64 • thru’ website – 6 • Implementing or implemented ERP – 49 • Not implemented ERP – 21

  9. Appropriate Business & IT Legacy Systems Business Plan & Vision BPR Change Management Culture & Program Communication ERP Teamwork & Composition Monitoring & Evaluation of Performance Project Champion Project Management Software Development, Testing & Troubleshooting Top Management Support Extremely critical & important for success 9 20 23 31 21 33 20 36 30 15 37 Critical & important for success 20 24 14 11 24 14 20 9 18 27 11 Somewhat critical & important for success 11 4 9 6 4 2 7 3 1 7 1 Important but not critical / necessary for success 5 1 3 1 2 1 Neither critical nor important for success 4 Survey Results from CIOs

  10. Survey Results Factors Average Rating Factors

  11. Appropriate Business & IT Legacy Systems • Extremely critical & important for success - 9 • Critical & important for success - 20 • Somewhat critical & important for success - 11 • Important but not critical / necessary for success - 5 • Neither critical nor important for success - 4

  12. Business Plan & Vision • Extremely critical & important for success - 20 • Critical & important for success - 24 • Somewhat critical & important for success - 4 • Important but not critical / necessary for success - 1 • Neither critical nor important for success - 0

  13. Business Process Reengineering • Extremely critical & important for success - 23 • Critical & important for success - 14 • Somewhat critical & important for success - 9 • Important but not critical / necessary for success - 3 • Neither critical nor important for success - 0

  14. Change Management Culture & Program • Extremely critical & important for success - 31 • Critical & important for success - 11 • Somewhat critical & important for success - 6 • Important but not critical / necessary for success - 1 • Neither critical nor important for success - 0

  15. Communication • Extremely critical & important for success - 21 • Critical & important for success - 24 • Somewhat critical & important for success - 4 • Important but not critical / necessary for success - 0 • Neither critical nor important for success - 0

  16. ERP Teamwork & Composition • Extremely critical & important for success -33 • Critical & important for success - 14 • Somewhat critical & important for success - 2 • Important but not critical / necessary for success - 0 • Neither critical nor important for success - 0

  17. Monitoring & Evaluation of Performance • Extremely critical & important for success - 20 • Critical & important for success - 20 • Somewhat critical & important for success - 7 • Important but not critical / necessary for success - 2 • Neither critical nor important for success - 0

  18. Project Champion • Extremely critical & important for success - 36 • Critical & important for success - 9 • Somewhat critical & important for success - 3 • Important but not critical / necessary for success - 1 • Neither critical nor important for success - 0

  19. Project Management • Extremely critical & important for success - 30 • Critical & important for success - 18 • Somewhat critical & important for success - 1 • Important but not critical / necessary for success - 0 • Neither critical nor important for success - 0

  20. Software Development, Testing & Troubleshooting • Extremely critical & important for success - 15 • Critical & important for success - 27 • Somewhat critical & important for success - 7 • Important but not critical / necessary for success - 0 • Neither critical nor important for success - 0

  21. Top Management Support • Extremely critical & important for success - 37 • Critical & important for success - 11 • Somewhat critical & important for success - 1 • Important but not critical / necessary for success - 0 • Neither critical nor important for success - 0

  22. Conclusions • According to the survey results, • top mgmt. support, ERP composition & teamwork, project champion, project management, and change management culture & program received the highest ratings • Future research will include ratings by implementers, vendors, consultants, and end-users

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