Challenges and Benefits of ERP implementation: the case of Public Sectors in Ethiopia
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Date
2016-06-01
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Addis Ababa University
Abstract
ERP system is being adopted by international organizations globally, in order to streamline
business processes, manage and create seamless integration, and ensure real time information
availability for decision making. ERP adoption is considered as one of the biggest and most
complex projects a firm could manage even though these projects can vary in size, structure, and
methodology. Applying this kind of system into government sector requires more effort from
different aspects such as change management, business process re-engineering, data migration
user training and other related issues and since government sectors has restricted law and
procedure that is not flexible and rarely changes, implementing an ERP system has a lot of
consideration and faces a lot of challenges. The main purpose of this research therefore is, to
identify the benefits and challenges of implementing ERP (Enterprise Resource planning) in
public sectors, and to recommend possible solutions for the gap. Due to the nature of the research
and to achieve the main purpose of the study, a mixed quantitative and qualitative approach is
used with questionnaire and semi structured interview from a sample population as its primary
research methodology. Accordingly, data were collected from three Ethiopian governmental
organizations and analyzed. Results show that network problem and limited understanding of the
benefits and cost of the implemented ERP system are the main challenges. On the other hand the
main benefit generated from the system are providing more timely information, improving
services for ERP clients and added value to the companies and the organizations that was using
the ERP system for their business operations. Recommendations are forwarded based on the
findings of the study.
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Keywords
Benefits, challenges, ERP, government sector