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Critical Success Factors in ERP

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

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Critical Success Factors in ERP

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  1. Critical Success Factors in ERP Prepare by Thao Doan March 24, 2005

  2. 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

  3. 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

  4. Theoretical Framework • Process theory approach (Markus and Tanis, 2000) • Classify the CSFs identified • Focus on the sequence of events

  5. 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

  6. 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

  7. Critical Factors of ERP Implementation Success • ERP teamwork and composition • Top management support • Business plan and vision • Effective communication • Project management • Project champion

  8. Critical Factors of ERP Implementation Success (Cont’d) • Appropriate business and legacy systems • Change management program and culture • Business process reengineering and minimum customization

  9. Critical Factors of ERP Implementation Success (Cont’d) • Software development, testing and troubleshooting • Monitoring and evaluation of performance

  10. 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

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