Analysis Of Critical Success Factors, Challenges And Prospects Of Erp Project Implementation: A Retrospective Study In Business Organizations In Ethiopia

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Addis Ababa University


Today, most business organizations have begun replacing their systems with ERP initiatives to improve management and administration. As most business organization CBE, Ethio Telecom Ethiopian Airlines and Heineken Ethiopia also planned a reengineering project that are designed to introduce world class business processes including the implementation of “Enterprise Resource Planning” system. This study focused on the investigation of success factors, challenges and future prospects of ERP systems in business organizations in Ethiopia. The research design was descriptive method and a five point Likert scale questionnaire are used for data collection and analyzed using descriptive statistics. Based on the results top management support, project team competency, user training, interdepartmental communication, and consultant support are CSF of ERP implementation. Also challenges of implementing ERP investigated are Lack of skills for implementing and using ERP, Insufficient training to users, Integration of different types of data was a big problem, Incompatibility with work, High system cost, Long customization period, High user resistance, System led to major organizational changes and ERP system too complex were the challenges faced by the firms. Furthermore based on the result various modules of ERP such as customer relationship management system, human resource management, procurement management, plant maintenance scheduling, manufacturing management, budget planning and projections and financial management components are functional and feature prospects are Eliminate/Reduce redundant tasks, Easier access to reliable data and information, Standardization of global business operations, Pressure to keep with competitors, improved internal communication, Overall reduction of operational costs and improved supply chain management



Critical Success Factor (CSF),, challenges, future prospects, Ethio Telecom, Ethiopian Airline