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

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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 & VisionProject Champion Business Process ReengineeringProject Management Change Management Culture & Program Software Development, Testing & Troubleshooting CommunicationTop Management Support ERP Teamwork & Composition

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6 Process Theory Approach by Markus and Tanis 1.chartering -- decisions defining the business case and solution constraints; 2.project -- getting system and end users up and running; 3.shakedown -- stabilizing, eliminating "bugs", getting to normal operations; 4.onward and upward -- maintaining systems, supporting users, getting results, upgrading, system extensions.

7 Business Vision CHARTERING PHASE PROJECT PHASE SHAKEDOWN PHASE 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 PREPARATIONIMPLEMENTATIONMAINTENANCEANALYSISDESIGN Classification of CSFs into Markus and Tanis' ERP Life Cycle Model

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

9 Approp riate Busines s & IT Legacy System s Busines s Plan & VisionBPR Change Manage ment Culture & Progra m Commu nication ERP Teamw ork & Compo sition Monito ring & Evaluat ion of Perfor mance Project Champi on Project Manage ment Softwar e Develop ment, Testing & Trouble shooting Top Manage ment Support Extremely critical & important for success Critical & important for success Somewhat critical & important for success Important but not critical / necessary for success Neither critical nor important for success 4 Survey Results from CIOs

10 Average Rating Factors Survey Results

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  Critical & important for success - 24  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  Critical & important for success - 24  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  Critical & important for success - 9  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  Critical & important for success - 18  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


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