Critical Success Factors in Enterprise Resource Planning Implementation: A Case-Study Approach

Critical Success Factors in Enterprise Resource Planning Implementation: A Case-Study Approach

Behrouz Zarei (University of Tehran, Iran) and Mina Naeli (University of Tehran, Iran)
DOI: 10.4018/978-1-4666-1761-2.ch005
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Abstract

Although introducing Enterprise Resource Planning (ERP) to an organization has enormous benefits, it may entail new hazardous challenges if it cannot be well managed. This research focuses on the critical ERP success factors from a case study involving the Esfahan Steel Company, which started ERP implementation in September 2002. An in-depth research of ERP implementation processes and the level of adhering to five chosen ERP critical success factors—project management, top management supports, business process reengineering, and change management and Training—are conducted. Research results revealed that the five critical success factors (CSFs) are highly interdependent and the strengths and weaknesses of each have influenced the quality of ERP implementation to a large extent.
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Literature Review

Since ERP implementation is an expensive and risky venture, many authors have identified different factors which, to a great extent, influence successful implementation. Holland and Light (1999) created a model which classifies the CSFs into strategic and tactical factors. Strategic factors include legacy system, business vision, ERP strategy, top management support and project plans. Tactical factors were represented as client consultation, personnel, business process change and software configuration, client acceptance; and monitoring. The Holland model has been used in many other studies. For example, Allen, Kern, and Havenhand (2002) in addition to independently identifying strategic and tactical CSFs in Holland model added, in their paper, a set of contextual CSFs for ERP implementation in public sectors

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