Presentation is loading. Please wait.

Presentation is loading. Please wait.

An Empirical Study on Critical Success Factors for Enterprise Systems Implementation Fiona Nah and Janet Lau College of Business Administration University.

Similar presentations


Presentation on theme: "An Empirical Study on Critical Success Factors for Enterprise Systems Implementation Fiona Nah and Janet Lau College of Business Administration University."— Presentation transcript:

1 An Empirical Study on Critical Success Factors for Enterprise Systems Implementation Fiona Nah and Janet Lau College of Business Administration University of Nebraska-Lincoln

2 Research Objectives Identify Critical Success Factors (CSFs) for ERP Implementation What are they? Degree of criticalness of each factor? From CIOs, implementers, vendors, consultants, and end-users perspectives This presentation reports findings from CIOs

3 Research Procedures Through a comprehensive review of the literature, eleven factors were found to be critical to ERP implementation success These factors were classified into the respective phases (chartering, project, shakedown, onward and upward) of the ERP life cycle model proposed by Markus and Tanis The survey was mailed out to the CIOs of Fortune 1000 companies Option to reply by mail or thru’ our web site

4 The Eleven CSFs Identified
Appropriate Business & IT Legacy Systems Monitoring & Evaluation of Performance Business Plan & Vision Project Champion Business Process Reengineering Project Management Change Management Culture & Program Software Development, Testing & Troubleshooting Communication Top Management Support ERP Teamwork & Composition

5 Teamwork & Composition Change Management Program and Culture
ERP Teamwork & Composition Change Management Program and Culture Top Management Support Business Plan & Vision BPR & Minimum Customization Communication Project Management Software Development, Testing & Troubleshooting Monitoring and Evaluation of Performance Project Champion Appropriate Business & IT Legacy Systems Bingi, Sharma & Godla (1999) x Buckhout, Frey & Nemec (1999) Falkowski, Pedigo, Smith & Swanson (1998) X Holland, Light & Gibson (1999) Roberts & Barrar (1992) Rosario (2000) Scheer & Habermann (2000) Stefanou (1999) Sumner (1999) Wee (2000)

6 Process Theory Approach by Markus and Tanis
chartering -- decisions defining the 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 systems, supporting users, getting results, upgrading, system extensions.

7 Classification of CSFs into Markus and Tanis' ERP Life Cycle Model
Business Vision CHARTERING PHASE PROJECT SHAKEDOWN ONWARD & UPWARD ERP Teamwork & Composition Project Management Business Plan & Vision BPR & Minimum Customization Appropriate Business & IT Legacy Syst Change Mgmt. Program & Culture S/W Dev, Testing & Troubleshooting Top Management Support Project Champion Effective Communication Monitoring & Evaluation of Performance PREPARATION IMPLEMENTATION MAINTENANCE ANALYSIS DESIGN Classification of CSFs into Markus and Tanis' ERP Life Cycle Model

8 Survey Responses Total responses to date -- 70 by mail – 64
thru’ website – 6 Implementing or implemented ERP – 49 Not implemented ERP – 21

9 Survey Results from CIOs
Appropriate Business & IT Legacy Systems Business Plan & Vision BPR Change Management Culture & Program Communication ERP Teamwork & Composition Monitoring & Evaluation of Performance Project Champion Project Management Software Development, Testing & Troubleshooting Top Management Support Extremely critical & important for success 9 20 23 31 21 33 36 30 15 37 Critical & important for success 24 14 11 18 27 Somewhat critical & important for success 4 6 2 7 3 1 Important but not critical / necessary for success 5 Neither critical nor important for success Survey Results from CIOs

10 Survey Results Factors Average Rating Factors

11 Appropriate Business & IT Legacy Systems
Extremely critical & important for success - 9 Critical & important for success - 20 Somewhat critical & important for success - 11 Important but not critical / necessary for success - 5 Neither critical nor important for success - 4

12 Business Plan & Vision Extremely critical & important for success - 20
Somewhat critical & important for success - 4 Important but not critical / necessary for success - 1 Neither critical nor important for success - 0

13 Business Process Reengineering
Extremely critical & important for success - 23 Critical & important for success - 14 Somewhat critical & important for success - 9 Important but not critical / necessary for success - 3 Neither critical nor important for success - 0

14 Change Management Culture & Program
Extremely critical & important for success - 31 Critical & important for success - 11 Somewhat critical & important for success - 6 Important but not critical / necessary for success - 1 Neither critical nor important for success - 0

15 Communication Extremely critical & important for success - 21
Somewhat critical & important for success - 4 Important but not critical / necessary for success - 0 Neither critical nor important for success - 0

16 ERP Teamwork & Composition
Extremely critical & important for success -33 Critical & important for success - 14 Somewhat critical & important for success - 2 Important but not critical / necessary for success - 0 Neither critical nor important for success - 0

17 Monitoring & Evaluation of Performance
Extremely critical & important for success - 20 Critical & important for success - 20 Somewhat critical & important for success - 7 Important but not critical / necessary for success - 2 Neither critical nor important for success - 0

18 Project Champion Extremely critical & important for success - 36
Somewhat critical & important for success - 3 Important but not critical / necessary for success - 1 Neither critical nor important for success - 0

19 Project Management Extremely critical & important for success - 30
Somewhat critical & important for success - 1 Important but not critical / necessary for success - 0 Neither critical nor important for success - 0

20 Software Development, Testing & Troubleshooting
Extremely critical & important for success - 15 Critical & important for success - 27 Somewhat critical & important for success - 7 Important but not critical / necessary for success - 0 Neither critical nor important for success - 0

21 Top Management Support
Extremely critical & important for success - 37 Critical & important for success - 11 Somewhat critical & important for success - 1 Important but not critical / necessary for success - 0 Neither critical nor important for success - 0

22 Conclusions According to the survey results,
top mgmt. support, ERP composition & teamwork, project champion, project management, and change management culture & program received the highest ratings Future research will include ratings by implementers, vendors, consultants, and end-users


Download ppt "An Empirical Study on Critical Success Factors for Enterprise Systems Implementation Fiona Nah and Janet Lau College of Business Administration University."

Similar presentations


Ads by Google