The causal relationship between critical factors and post implementation success of Enterprise Resource Planning software
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Date
2018
Authors
Naidoo, Devaraj
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Abstract
Enterprise Resource Planning (ERP) software is an essential business tool for
organisations to process information and aid in driving business strategy.
Organisations are increasing spending up to 2% of annual income on ERP
software implementations. However, implementing such software is only one part
of the process. To obtain the appropriate returns on investment, the organisation
must first implement the ERP software successfully and then realise the post
implementation benefits.
Numerous failures of ERP implementations have been well documented.
Organisations have spent multiples of the implementation cost on projects that
have not gone to plan. In addition, organisations have failed to realise post
implementation benefits that were promised prior to implementation.
An ERP implementation by its very nature impacts all functions of the
organisation. Expert opinions are required for understanding the current
business processes and the impact the ERP will have within the organisation and
externally when conducting business in future. Such an implementation is a
complicated system of top management, external consultants, users, and other
stakeholders coming together to develop and deploy the new ERP software.
This paper models such a complex scenario to predict post implementation
benefits that is derived. The methodology used is Fuzzy Cognitive Mapping
(FCM) to map the complex system of an ERP implementation project. The
relationship between the critical input factors, critical general factors and post
implementation benefits is determined via a survey of professionals who have
been part of an ERP implementation both from within and external to
organisations. The output from the survey is used to simulate the factors using
FCM to predict post implementation benefits. The results of research provide a
basis for understanding the critical factors that should be present for
organisations to derive post implementation benefits of an ERP implementation.
his analysis will assist organisations when planning to implement ERP software
to determine what critical factors organisations must manage to derive post
implementation success of implementing ERP software.
Description
MBA
Keywords
Business planning -- South Africa. Business enterprises -- Computer networks. Open source software.