Factors of Successful ERP Implementation

 In response to ERP systems implementation issues, there has been a developing body of academic literature
which addresses the difficulties of ERP implementation by proposing CSFs and process models of the
implementation. Both are aimed at better planning and hence, more successful ERP implementation.
Factors affecting ERP implementation are complex and abundant and numerous authors have identified a
variety of factors that can be considered to be critical to the success of an ERP implementation.

Top 10 factors:
1) Top management support

Top management support in ERP implementation has two main facets:
a) providing leadership, and b) providing the necessary resources.

2) Clear goals and objectives

 This factor is related with concerns of project goals clarification and their congruence with the organizational mission and strategic goals.

3) Communication

Communication should be of two kinds:
a) inwards the project team, and
b) outwards to the whole organization.

4) Effective project management

 There are five major parts of project management:
a) having a formal implementation plan,
b) a realistic time frame,
c) having periodic project status meetings,
d) having an effective project leader who is also a champion, and
e) having project team members who are stakeholders.

5) Business process reengineering

Dimensions concerning business process reengineering are:
a) company’s willingness to reengineering,
b) company’s readiness for change, and
c) company’s capability of reengineering.

6) Data accuracy and integrity

Data accuracy is absolutely required for an ERP system to function properly. A fundamental requirement for the effectiveness of ERP systems is the availability and timeliness of accurate data.

7) Suitability of software and hardware

Two aspects should be cared when selecting software and hardware:
a) compatibility of software/hardware and company’s needs, and
b) ease of customization.

8) Vendor support

Three dimensions of vendor quality are classified as:
a) service response time of the software vendor;
b) qualified consultants with knowledgeability in both enterprises’ business processes and information technology including vendors’ ERP systems; and
c) participation of vendor in ERP implementation.

9) Education and training

Three aspects concerning the contents of training are:
a) logic and concepts of ERP,
b) features of the ERP system software; and
c) hands-on training.

10) User involvement

There are two areas for user involvement when the company decides to implement an ERP system:
a) user involvement in the stage of definition of the company’s ERP system needs; and
b) user participates the implementation of ERP systems.

Source: UPM.edu.my
Click here: Recommended Malaysian ERP Vendor