• Title/Summary/Keyword: ERP Success

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The Effects of Industry Classification on a Successful ERP Implementation Model

  • Lee, Sangmin;Kim, Dongho
    • Journal of Information Processing Systems
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    • v.12 no.1
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    • pp.169-181
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    • 2016
  • Organizations in some industries are still hesitant to adopt the Enterprise Resource Planning (ERP) system due to its high risk of failures. This study examined how industry classification affects the successful implementation of the ERP system. To achieve this goal, we reinvestigated the existing ERP Success Model that was developed by Chung with the data from various industry sectors, since Chung validated the model only in the engineering and construction industries. In order to test to see if the Chung model can be applicable outside the engineering and construction industries, the relationships between the ERP success indicators and the critical success factors in the Chung model and those in the sample data collected from ten different industry sectors were compared and investigated. The ten industry sectors were selected based on the Global Industry Classification Standard (GICS). We found that the impact of success factors on the success of implementing an ERP system varied across industry sectors. This means that the success of ERP system implementation can be industry-specific. Thus, industry classification should be considered as another factor to help IT decision makers or top-management avoid ERP system failures when they plan to implement a new ERP system.

An Empirical Study on Critical Success Factors in Implementing ERP System (ERP시스템 구축단계 별 주요성공요인에 관한 실증적 연구)

  • 김상훈;최광돈
    • Journal of the Korean Operations Research and Management Science Society
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    • v.26 no.4
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    • pp.1-21
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    • 2001
  • The purpose of this stuffy is to derive critical success factors for ERP system implementation by integrating managerial, technical. human resource and organizational culture factors welch have been proposed as influencing factors for the performance of ERP system implementation in previous studios. Especially, this stuffy divides ERP system implementation process into preparation stave, implement stage and settle-down and stabilization stave, and then derives critical success factors in each stage. The data for empirical analysis of the research model are collected from 64 companies and the respondents for questionnaire consist of ERP system implementation project managers and user department managers in companies which have already operated it after ERP system installation. The main results of this study are as follows. First, it derives 27 success factors through comprehensive review of various factors which may affect ERP system implementation performance, and categorizes them into one of three stapes preparation stave, implement stage, and settle-down and stabilization stage. Second, the relationship between many success factors at each stave (preparation stave, implement stage, and settle-down and stabilization stave) and performance variables is tested. As a result, the significant correlations between many success factors at each stage and ERP system implementation performance are found, and the difference among success factors in the degree of influencing the system performance is significantly shown. finally, the relationship between process-oriented performance variables and result-oriented performance ones is tested. As a result, it is found that there is significant correlation between process-oriented performance variables except for one variable-project resource management appropriateness - and result-oriented performance ones. The theoretical contribution of this study is to derive a comprehensive model of critical success factors for implementing ERP system project from the system deve1opment life cycle perspective, and empirically test it through field survey with a wide range of data collection. And, the practical implication of this study is to present the desirable guidelines for performing ERP system implementation project successfully.

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Influence of IS Planning and Change Management on ERP Implementation Success

  • Moon, Tae-Soo
    • Journal of Digital Convergence
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    • v.7 no.1
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    • pp.149-156
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    • 2009
  • Enterprise Resource Planning (ERP) system is one of key information technology to shape doing business. ERP adoption characteristics like IS planning and change management before ERP implementation are rising in importance, because of gaining competitive advantage. The purpose of this study is to analyze the impact of the characteristics of ERP adoption on ERP implementation success. From previous researches on ERP adoption and implementation, two characteristics of ERP adoption such as IS planning and change management, and 2 dependent variables such as process innovation and business performance, are identified. From data collection processes, 122 samples are collected. The results of hypothesis testing show that organizations with IS plan have higher implementation performance than organizations without IS plan. Also, organizations with the process of change management have higher implementation performance than organizations without the process of change management. Also, The interaction effect between IS planning and change management shows bigger impact in ERP implementation success.

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Perspective Differences between System Managers and Consultants as to ERP Critical Success Factors (ERP 성공요인에 대한 시스템관리자와 컨설턴트 간의 시각 차이)

  • Chang Hwal-Sik;Choi Yoo-Jung
    • The Journal of Information Systems
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    • v.14 no.2
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    • pp.215-236
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    • 2005
  • The purpose of this paper is to examine the differences in the critical success factors for ERP adoption suggested by the system managers and the ERP consultants. The survey results indicated the following findings. First, there was no significant difference in the relative importance of the critical success factors between the system managers and the ERP consultants. Both groups agree that 'top manager's concern and support' is the most critical factor and that 'user involvement' is the second. However, the system managers tend to think 'training and education of end users' and 'cooperations among the project participants' more important than the consultants do. Second, both groups agree that the most important ERP contribution should be 'improvements in the business processes.' They also agree that the least important aspect is 'ERP's contribution to the individual's productivity.' In overall, the ordered lists of ERP evaluation criteria according to their importances were of no significant difference between the groups. Third the two groups showed differences when they were asked to evaluate the importance of the critical success factors for each of the ERP evaluation criterion. In general, the system managers tend to put more emphasis on 'training and education of end users' and 'adaptation of end users to the changed processes,' whereas the consultants tend to emphasize more on 'top managers' interest and supports' and 'project manager's capabilities and performance.' The differences in the critical success factors presented by the two groups indicated that more efforts need to be devoted to understanding other participant's interests and concerns in an ERP project team. Better coordinations based on the mutual understandings could improve the chance of achieving a success in adopting ERP packages.

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A Study on the Critical Success Factors for Each Phase of the Introduction of ERP Systems (ERP시스템 도입 단계별 핵심성공요인에 관한 연구)

  • 유춘번;양효석
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.25 no.3
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    • pp.64-77
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    • 2002
  • In every sectors of industry, the Business Process Reengineering(BPR) has been applied for taking competitive advantage under rapidly changing environment. A company adopting the BPR has begun to consider the introduction of Enterprise Resource Planning ERP systems. ERP systems can integrates many core activities of business, such as manufacturing management, human resource management, financial management, supply chain management by applying the best practices to facilitate a rapid decision-making, cost reductions, and organizational control. Unfortunately, however, many tentative risk factors are existed through each phase of the introduction of ERP systems. As a result, it can bring an enormous benefits to a company or it can be a disastrous for organization. Therefore, two critical questions regarding the introduction of ERP systems should be analyzed before actual introduction has happened. They are "how can ERP systems be introduced successfully\ulcorner" and "what are the critical success factors for each phase of introduction of ERP systems\ulcorner". Through this research, We studied and analyzed the characteristics of critical success factors requiring at each phase of the introduction of ERP systems by applying the questionnaire survey method. Finally, we suggest the list of barriers and critical success factors for each phase of introduction of ERP systems.tion of ERP systems.

An Empirical Study on Critical Success Factors of ERP System according to BPR implementation timing (BPR 실시시점에 따른 ERP시스템의 주요성공요인에 관한 실증적 연구)

  • Choi, Kwang-Don
    • Journal of the Korea Society of Computer and Information
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    • v.10 no.4 s.36
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    • pp.315-336
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    • 2005
  • The purpose of this study is to derive critical success factors for ERP system implementation by integrating managerial, technical, human resource and organizational culture factors which have been proposed as influencing factors for the performance of ERP system implementation in previous studies. The main results of this study are as follows. First, it derives 33 success factors through comprehensive review of various factors which may affect ERP system implementation performance, and categorizes them into one of three stages : preparation stage, implement stage, and settle-down and stabilization stage. Second, this study tests whether there are different correlations or not between the success factors of each ERP system implementation stage and ERP system implementation performance depending upon the strategies of ERP system implementation. As a result, it is shown that some of success factors have significantly different correlations with performance variables in accordance with BPR implementation timing.

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A Case Study on the Analysis of Success and Fail Factors for ERP System Build-up (ERP 구축의 성공/실패요인 분석에 관한 사례연구)

  • 박종만;한상찬
    • Journal of the Korea Safety Management & Science
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    • v.2 no.4
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    • pp.71-90
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    • 2000
  • This study proposes strategical, practical guide to build up ERP system through several case studies to large company and comparative analysis of success and fail factors. Key words in paper .is in summary of previous BPR and ERP studies, try to clarify relationship between BPR and ERP, derivative seeking of practical key success factors through several real cases studies to build up ERP system which is in-house development or customization of commercial package.

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A Study on Project Success Factors and Individual Personality for Project Team Activation - Based on ERP Project - (프로젝트팀 활성화를 위한 개인성향과 프로젝트 성공 요인에 대한 연구 -ERPProject중심으로-)

  • Park, Jong-Ki;Kang, Kyong-Sik
    • Proceedings of the Safety Management and Science Conference
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    • 2006.11a
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    • pp.279-286
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    • 2006
  • Since 1990's, many enterprises have implemented ERP System. Especially, they want to become an advanced company use ERP implementation. Already, ERP system come to high level which is stabilized and support independent business process of many industry sectors. Although most companies had previous good plans, but those are not satisfied. Because of failed to change management and had many problem about Project team operation. Therefore, important success factors for ERP project are change management and organization activation for Project team. The purpose of this study is suggest to improve method about team activation through analysis the Project team member's individual personality as a factor that makes the success of Project team. This paper studied success factors of project team and plan for organization activation. The results of this study can be used for a successful implementation of the ERP system as make of Project team consider of individual personality and administer a Project team.

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Culture Influence on Enterprise Planning Resource (ERP) Implementation In Saudi Arabia's Public Sector

  • Alzahrani, Ahmed Omar
    • International Journal of Computer Science & Network Security
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    • v.22 no.7
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    • pp.397-403
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    • 2022
  • Enterprise resource planning (ERP) is widely adopted among enterprises and organizations. In recent years, researchers have become increasingly interested in factors related to ERP implementation success. In this paper, top management members, IT professionals, and end-users were interviewed in the study. The study used Hofstede's main cultural dimensions as a theoretical framework to identify cultural characteristics and their influence on ERP implementation within public organizations in Saudi Arabia. The study followed a qualitative methodology approach to carry on the study to investigate the national culture characteristics in Saudi Arabia that may influence ERP implementation success. The study found some culturally related factors that could influence success in ERP implantation projects in Saudi Arabia..

An Analysis of the Importance of the Success Factors in Operation Stage of ERP System (ERP 시스템의 운영단계의 성공요인에 대한 중요도 분석)

  • Yi, Seon Gyu
    • Journal of Service Research and Studies
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    • v.6 no.4
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    • pp.35-45
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    • 2016
  • This study derives the critical success factors through discussion of expert group in operation stage of ERP system that is suggested by the prior study. Relative importance of the derived critical success factors are analyzed using Analytic Hierarchy Process(AHP). In the first layer of the hierarchy, organizational/ human resource factors are appeared to be the most important factors. In the second layer of the hierarchy, CEO support is evaluated as the most important success factor considering the weight of the 1st layer of the hierarchy followed by process optimization, change management, support of the operation department, and maintenance of process innovation organization. This study suggests that, in order to maximize the introducing effect, continuous support and attention of management is not the only requirement. Proper change management to handle the internal environment change caused by the introduction of the ERP system, support of operation department dedicated to ERP system, and separate department for continuous innovation of process are also required.