Assessment of Enterprise Resources Planning (ERP) Implementation: the Case of Ethio Telecom
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Date
2014-06
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Addis Ababa University
Abstract
Ethio Telecom has introduced a new information system solution named ERP (Enterprise
Resources Planning) in 2011, following its restructuring. Therefore, the major objective of
this study is to assess the implementation of Enterprise resources planning in ethio-telecom
and to recommend possible solutions for the gap created during the implementation. As result,
the researcher has tested the implementation effectiveness by selecting major effectiveness
variables and other related concepts. This research has a descriptive nature which elaborates
the existing phenomenon as it exists. The data was collected using questionnaires from a
sample population. The collected data was analyzed using mainly by computer such as SPSS
(Statistical Package for the Social Sciences) version 20.
Furthermore, three work units/strata have been selected since these work units are the major
owner of the modules in the system, accordingly 40 employees from management and 268
from non-management categories were taken as a sample by using stratified random sampling
technique and questionnaires were distributed accordingly. Consequently, results shows that
the deployed ERP system is not properly implemented and practiced on the basis of the
selected effectiveness variables; it is observed that the ERP system is not effective across the
divisions the system is implemented. In addition, problems which hinder the practice of the
system were identified. As a result, lack of appropriate training for all system users was
identified as the most serious problem while proper support from the integrators side and lack
appropriate customization process in relation to the companies as well as countries
regulatory framework were also identified as the next most serious problems. Finally, the
reporting formats as per of the user friendly nature of the system has been identified as a
major challenge in relation to the decision making activity and other external stakeholders
consumption.
Hence, the researcher has recommended that the company should re-consider its system
utilization, since there are important features not yet utilized by the company even if the
license is fully procured from oracle by ethio-telecom. Moreover, the company should also
revisit whether in considering the required business requirements through customization, I
addition the company has to implement adequate training and development in order to equip
both end-users and super users so that they can easily work on the system and support each
other even if integrators are not there. Finally, the company should give emphasis for the
reporting formats so that any decision maker or external stakeholder can understand it easily
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Keywords
Implementation