Enterprise Resource Planning (ERP) And Its Accounting/Financial Management Module Implementation Challenges: The Case of Ethio Telecom
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Date
2024-05-21
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AAU
Abstract
Enterprise Resource Planning (ERP) is a software solution that integrates different
functional areas of an organization process and data into a single system that is shared
within the organization. From the fact that more than two decades of experience regarding
the adoption and implementation of ERP system with its different functional components in
organizations, ERP’s success is questionable. Though ERP success stories are published in
past research studies, the failure rate of ERP systems is relatively high. The purpose of this
study was to find issues and challenges and assess the degree of criticality of these issues
during ERP in Ethio Telecom. The research carried out a descriptive study in evaluating the
implementation challenges of ERP and its accounting/financial management process within
Ethio Telecom. The evaluation was made based on the following eight Critical Success
Factors which are Top Management support, Integration, Performance, Decision making,
Employee Participation, Project Team Competency and Human Capability, Objective of ERP
implementation, and IT infrastructure. The population of this study were employees and top-
and low-level managers of Ethio Telecom. For the purpose of getting respondents who have
good understanding of ERP a purposive sampling technique was used. Both primary and
secondary data were collected. The study utilized both quantitative and qualitative data
analysis techniques. Significant number of the respondents believed the implementation of an
ERP system can be a complex and challenging undertaking. There are several technical
problems that can arise during the implementation process, which can delay or even derail
the project. Some of the most common technical problems that can occur during ERP
implementation include incompatibility with existing systems, data migration, training, and
user resistance. However, it is recommended that the following steps need to be taken to
improve ERP implementation challenge. These steps include identify the root cause of the
failure, developing a corrective action plan, implementing the corrective action plan,
monitoring the implementation, and finally learning from the challenges.