Factors affecting the implementation of ERP systems in organisations in the U.A.E.
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Date
2010-01
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British University in Dubai
Abstract
Due to organisations wanting to remain competitive in their markets by having accurate data and making strategic decisions, Enterprise Resource Planning (ERP) systems were introduced. ERP systems grew rapidly particularly in the 1990’s due to the Y2K scare, mostly, and also the technological growth assisted in this introduction where all data was considered accessible through computer systems. The emergence of ERP systems assisted managers in making speedy and strategic decisions. This research studies the benefits of ERP systems, their scope and their critical success and failure factors that need to be considered prior to the implementation of ERP systems to ensure successful project outcomes. This research specifically considers one kind of ERP system – ORION. It is a system that is used to integrate business processes across the different stakeholders in projects while ensuring efficient and effective organisations.
By studying different literature on this topic and through creating a conceptual framework that was used as a basis of the semi-structured interviews that were held, a total of eight critical success factors (CSF’s) were derived where twenty-four sub-factors were associated with them. It also proposed six critical failure factors (CFF’s) with fifteen sub-factors associated with them. The factors have been divided up into three project phases; pre-implementation, implementation and post-implementation. The CSF's are Strategic visioning and planning (Factor 1) and it needs to be considered as part of the pre-implementation project phase. Factor 2 - Change Management, BPC & BPR, Factor 3 – Communication, Factor 4 - ERP strategy & Implementation Team, Factor 5 - Project Management, Factor 6 - Management Support &Involvement, have been classified as part of the implementation phases and Factor 7 - Performance Evaluation and Factor 8 - Organisational fit of ERP systems/technical support have been classified as part of the post-implementation phases of an ERP project.
Findings of the critical failure factors (CFF's) have presented that Factor 1 - Not clear Strategic Visioning & Planning is a part of the pre-implementation project phase. Factor 2 - Poor Change Management, Factor 3 - Lack of Communication, Factor 4 -ERP strategy & Implementation Team are part of the implementation phase while Factor 5 – Performance Measurement and Factor 6 - Lack of Organisational fit of ERP systems/technical support difficulties have been classified as being part of the post-implementation phases of ERP system implementations.
Recommendations for managers are based on findings from the case studies, where the CSF's are used as factors that are recommended to be considered when implementing ERP systems to ensure project success, while the CSF's have been presented as factors that managers should be aware of to avoid project failure.
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DISSERTATION WITH DISTINCTION
Keywords
organisations, strategic decisions, project outcomes, Enterprise Resource Planning (ERP) systems, ORION, Project Phases, Critical Failure Factors (CFF’s), Critical Success Factors (CSF’s)