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Learn essential factors for successful ERP implementation, benefits of ERP system, critical success factors, theoretical framework, and classification into ERP life cycle model.
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Critical Success Factors in ERP Prepare by Thao Doan March 24, 2005
Introduction • Benefits from installation ERP system • Improve processes and decrease costs • Slash cycle times and reduce inventory • Quickly connect with supplier, distributors, and customers • Disadvantages • ERP implementation very costly • Long complicated interrelated code • Complexity environment and technical support
Critical Success Factors (CSFs) • something that the organization must do well to succeed • what is a system must do to accomplish what it was designed to do
Theoretical Framework • Process theory approach (Markus and Tanis, 2000) • Classify the CSFs identified • Focus on the sequence of events
ERP life cycle model • Chartering- decisions, defining 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 system, supporting users, upgrading
Markus and Tanis’ process-oriented ERP life cycle model Classification of CSFs of ERP implementation into Markus and Tanis’ (2000) process-oriented ERP life cycle model http://erp.ittoolbox.com/browse.asp?c=ERPPeerPublishing&r=http%3A%2F%2Fweb%2Enjit%2Eedu%2F%7Ejerry%2FOM%2FOM%2DERP%2DPapers%2FERP%2D11%2DCSF%2Epdf
Critical Factors of ERP Implementation Success • ERP teamwork and composition • Top management support • Business plan and vision • Effective communication • Project management • Project champion
Critical Factors of ERP Implementation Success (Cont’d) • Appropriate business and legacy systems • Change management program and culture • Business process reengineering and minimum customization
Critical Factors of ERP Implementation Success (Cont’d) • Software development, testing and troubleshooting • Monitoring and evaluation of performance
References • Nah, F., Fiona & Lau, L., Janet (2001). Critical factors for successful implementation of enterprise systems. Academic Articles. Retrieved April 4, 2003, from http://erp.ittoolbox.com/browse.asp?c=ERPPeerPublishing&r=http%3A%2F%2Fweb%2Enjit%2Eedu%2F%7Ejerry%2FOM%2FOM%2DERP%2DPapers%2FERP%2D11%2DCSF%2Epdf • Parth, R., Frank & Gumz, Joy (2003). Getting your ERP implementation back on track. White Papers. Retrieved Feburary, 11, 2004, from http://sap.ittoolbox.com/browse.asp?c=SAPPeerPublishing&r=http%3A%2F%2Fwww%2Eprojectauditors%2Ecom%2FPapers%2FWhitepprs%2FCSU%5FERP%2Epdf • Manoeuvre (2001). The six deadly ERP sins. White Papers. Retrieved April 16, 2001, from http://sap.ittoolbox.com/browse.asp?c=SAPPeerPublishing&r=%2Fpub%2FJP041101%2Epdf