CRITICAL SUCCESS FACTORS FOR AN ERP

Critical Success Factors for an Enterprise Resource Planning system implementation

Acknowledgement

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, […], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

Signed __________________ Date _________________

Abstract

In this study we try to explore the concept of Critical Success Factors in a holistic context. The main focus of the research is on Critical Success Factors and its relation with “an Enterprise Resource Planning system implementation. The research also analyzes many aspects of Critical Success Factors and tries to gauge its effect on an Enterprise Resource Planning system implementation. Finally the research describes various factors which are responsible for “Critical Success Factors” and tries to describe the overall effect of Critical Success Factors on an Enterprise Resource Planning system implementation.

Table of Contents

ACKNOWLEDGEMENTII

DECLARATIONiii

ABSTRACTIV

TABLE OF CONTENTS1

CRITICAL SUCCESS FACTORS FOR AN ENTERPRISE RESOURCE PLANNING SYSTEM IMPLEMENTATION3

CHAPTER 1: INTRODUCTION3

Background of the study3

Aim and Objectives of the study4

Significance of the study5

Rationale6

The Research Question8

CHAPTER 2: LITERATURE REVIEW9

Theoretical framework9

ERP Implementation Critical Success Factors9

Factors Discussion12

Worked With Functionality/Maintained Scope12

Deal With Organizational Diversity21

Planning/Development/Budgeting23

Adequate Testing25

CHAPTER 3: METHODOLOGY27

Grounded theory phase27

Case study phase27

Scope of the research28

Research Plan28

Research Approach30

Research Strategy30

Data Collection Method31

Sample Selection33

Data Analysis34

Validity and Reliability35

Validity35

Construct validity36

Reliability37

CHAPTER 4 : EMPIRICAL DATA39

EMPIRICAL DATA39

Case one: Esfahan Steel Company39

Background39

Manufacturing40

Worked With Functionality/Maintained Scope40

Internal Readiness/Training43

Deal With Organizational Diversity44

Planning/Development/Budgeting44

Adequate Testing45

RTC Corporation L TO 4.2.1.46

Background46

Worked With Functionality/Maintained Scope47

Project Team/Management Support/Consultants48

Internal Readiness/Training48

Deal with organizational diversity49

Planning/Development/Budgeting49

Adequate Testing49

CHAPTER 5: DATA ANALYSIS51

Data Analysis51

Worked With Functionality/Maintained Scope51

Project Team/Management Support/Consultants53

CHAPTER 6: FINDINGS AND CONCLUSIONS56

Findings56

Discussion of the method57

Implication and recommendations58

Implications for managers58

Implications for future research59

REFERENCES61

APPENDIX68

Critical Success Factors for an Enterprise Resource planning system implementation

Chapter 1: Introduction

Background of the study

An Enterprise Resource Planning system (ERP) is known as a tool which integrates work processes and function of each department in an organization into the same database system. This system is also known as Enterprise Systems (ESs). Every aspect of management in the modern age relies heavily on information to thrive. Nothing moves without information and it is generally believed that information is power and that he who has it has power. It is an important resource needed to develop other resources. Changing circumstances and environments have necessitated the need for the proper dissemination of information at various levels of management. The development and use of Management Information Systems (MIS) is a modern phenomenon concerned with the use of appropriate information that will lead to better planning, better decision making and better results. This paper will explain information systems ideas in general and then will focus on Enterprise Resource Planning (ERP) as most sophisticated IS and its problems, implementation and critical success factors for ERP implementation.

An MIS is an integrated, user-machine system for providing information to support operations management and decision making functions in an organization (Davis and Olsen, ...