Critical Factors for Successful Erp Implementation
Critical factors for successful ERP implementation:
Exploratory findings from four case studies
Jaideep Motwani a,*, Ram Subramanian a, Pradeep Gopalakrishna b a Seidman School of Business, Grand Valley State University, Department of Management,
401 West Fulton, Grand Rapids, MI 49504, USA b Department of Marketing and International Business, Lubin School of Business, Pace University, New York, NY 10038, USA
Received 29 March 2004; received in revised form 14 December 2004; accepted 13 February 2005
Available online 21 July 2005
Abstract
As more and more organizations move from functional to process-based IT infrastructure, ERP systems are becoming one of today 's most widespread IT solutions. However, not all firms have been successful in their ERP implementations. Using a case study methodology grounded in business process change theory, this research tries to understand the factors that lead to the success or failure of ERP projects. The results from our comparative case study of 4 firms that implemented an ERP system suggest that a cautious, evolutionary, bureaucratic implementation process backed with careful change management, network relationships, and cultural readiness have a positive impact on several ERP implementations. Understanding such effects will enable managers to be more proactive and better prepared for ERP implementation. Managerial implications of the findings and future research directions are discussed.
# 2005 Elsevier B.V. All rights reserved.
Keywords: Case studies; Critical factors; ERP; Implementation
1. Introduction
The myriad challenges faced today by global businesses are expected to grow in intensity and complexity as we go further into this century. Expanded global competition has become the norm rather than the exception, with an unprecedented number and variety of products available to satisfy consumer needs and desires. In particular,many firms have implemented company-wide systems called Enterprise
Exploratory findings from four case studies
Jaideep Motwani a,*, Ram Subramanian a, Pradeep Gopalakrishna b a Seidman School of Business, Grand Valley State University, Department of Management,
401 West Fulton, Grand Rapids, MI 49504, USA b Department of Marketing and International Business, Lubin School of Business, Pace University, New York, NY 10038, USA
Received 29 March 2004; received in revised form 14 December 2004; accepted 13 February 2005
Available online 21 July 2005
Abstract
As more and more organizations move from functional to process-based IT infrastructure, ERP systems are becoming one of today 's most widespread IT solutions. However, not all firms have been successful in their ERP implementations. Using a case study methodology grounded in business process change theory, this research tries to understand the factors that lead to the success or failure of ERP projects. The results from our comparative case study of 4 firms that implemented an ERP system suggest that a cautious, evolutionary, bureaucratic implementation process backed with careful change management, network relationships, and cultural readiness have a positive impact on several ERP implementations. Understanding such effects will enable managers to be more proactive and better prepared for ERP implementation. Managerial implications of the findings and future research directions are discussed.
# 2005 Elsevier B.V. All rights reserved.
Keywords: Case studies; Critical factors; ERP; Implementation
1. Introduction
The myriad challenges faced today by global businesses are expected to grow in intensity and complexity as we go further into this century. Expanded global competition has become the norm rather than the exception, with an unprecedented number and variety of products available to satisfy consumer needs and desires. In particular,many firms have implemented company-wide systems called Enterprise
References: Journal of Operational Research 146 (2) (2003) 302. [2] T. Davenport, Putting the enterprise into the enterprise system, Harvard Business Review (1998) 121–131. [3] A. Parr, G. Shanks, A model of ERP project implementation, Journal of Information Technology 15 (4) (2000) 289–304. [4] S. Gale, For ERP success, create a culture change, Workforce 81 (9) (2002) 88–92. framework, Journal of Global Information Technology Management 6 (1) (2003) 31. [6] M. Kremers, H. van Dissel, ERP system migrations, Communications of the ACM 43 (4) (2000) 52–56. PA, 1995. (3) (2001) 205. [9] R. Davison, cultural complications of ERP, Communications of the ACM 45 (7) (2002) 109. Management 40 (1) (2002) 25. and validation, Decision Sciences 33 (4) (2002) 601. [12] I. Chen, Planning for ERP systems: analysis and future trend, Business Process Management Journal 7 (5) (2001) 374. 100 (3) (2000) 114. [14] L. Kerbache, Enterprise resource planning (ERP): the dynamics of operations management, Interfaces 32 (1) (2002) 104. [15] W. Payne, The time for ERP? Work 51 (2/3) (2002) 91. (2) (2000) 81. 103 (1/2) (2003) 22. [18] S. Beretta, Unleashing the integration potential of ERP systems, Business Process Management Journal 8 (3) (2002) 254. of Management Information Systems 19 (1) (2002) 71. European Journal of Operational Research 146 (2) (2003) 233. [21] K. Kumar, J. Hillergersberg, ERP experiences and evolution, Communication of the ACM 43 (4) (2000) 23–26. [22] A. Lee, Researchable directions for ERP and other new information technologies, MIS Quarterly 24 (1) (2000) 3. 146 (2) (2003) 229. Association for Information Systems, 2003, pp. 1–36. 542 J. Motwani et al. / Computers in Industry 56 (2005) 529–544 for implementing an enterprise resource planning system, European Journal of Operational Research 146 (2) (2003) 258. of Information Systems 10 (4) (2001) 216. (2003) 274. Journal of Operational Research 146 (2) (2003) 241. Journal of Operational Research 146 (2) (2003) 352. Process Management Journal 7 (3) (2001) 285. (6) (2002) 465. [32] S. McAlary, Three pitfalls in ERP implementation, Strategy and Leadership 27 (6) (1999) 49. (2) (2002) 45. (2001) 266. [35] S. Cliffe, ERP implementation, Harvard Business Review 77 (1) (1999) 16.