Enterprise Resource Planning (ERP) is an integrated set of software modules which are linked to a common database to handle basic corporate functions such as planning, manufacturing, sales, marketing, accounting, distribution, human resource and inventory. When ERP is implemented successfully, it can reduce operating costs, increase productivity, and improve customer services. However, ERP fails to deliver the promised benefits in many companies due to the poor implementation planning. A successful ERP implementation requires a careful thinking, good planning from a strategic perspective.
It is difficult to measure the success of an extremely complex information system such as ERP as it involves almost every aspect of business operations. Different people from different perspectives will have different views about the success of ERP implementation. Therefore, we adopted Critical Success Factors (CSFs) approach. We identified the critical success factors for the success implementation of ERP based on literature review. A model is developed with assumption that there is Relative Importance (RI) among these critical success factors. The data collected in Chinese Mainland manufacturing companies were analyzed on Structural Equation Modeling by LISREL.
Six critical success factors were identified by the survey as the relative important critical success factors. They are (1) Business Process Reengineering management, (2) change readiness, (3) software competence and IT skills, (4) departmental communication, (5) top management support, and (6) hardware and equipments. Understanding the importance of these factors will help managers to make a good planning for ERP implementation. It is suggested to set high priority to these critical success factors, which can help managers to have a better control of the activities in the process of ERP implementation. Hopefully, it will increase the chance to implement ERP successfully.
|01 January 2005
|KONG, Jia Hui
|Digital Commons @ Lingnan University
|Theses & Dissertations
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