The causal relationship between critical factors and post implementation success of Enterprise Resource Planning software

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.