Assessment of Enterprise Resources Planning (ERP) Implementation: the Case of Ethio Telecom

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Addis Ababa University


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