Critical Success Factors Of Enterprise Resource Planning Implementation And Their Impact On Organizational Performance At Commercial Bank Of Ethiopia
No Thumbnail Available
Date
2019-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
Enterprise Resource Planning (ERP) systems have changed the way organizations go about the process of providing Information systems and addressing the expected services and goods at the expected time and with little cost. An ERP suite plays a critical role in integrating and automating the business processes in an enterprise. With the objectives of improved business productivity, streamlined business operations, and increased cost savings, organizations worldwide have launched initiatives to integrate ERP systems into their existing business environments. The implementation of this system is a difficult and high cost scheme that places tremendous demands on corporate time and resources. Critical success factors of ERP system implementation are the features, where the ERP system implementation can be measured to its success. This research discusses the critical success factors of ERP implementation and its impact on organizational performance with the aim of assessing the relationship between ERP system implementation and performance. The study had objectives of finding out how organizations gained from the use of ERP, the critical success factors impact on implementation of ERP, the major variations observed in the fundamental objective of implementing ERP and their impact on organizational performance and assess if overall business activity was integrated and successful after implementation of ERP and which of the critical success factors lead to effective implementation of an ERP system which in turn will affect the firm’s performance. The research adopted a descriptive and explanatory research design employing the use of mainly questionnaires as the primary data collection tool population and sample size of this study using the census method were 70 officials of CBE. Questionnaires were distributed to 70 officials of the CBE and 60 of them were returned and analyzed. Data collected were analyzed by finding out the mean, maximum, minimum, standard deviation and the correlation between the variables in the findings. The presentation of data was done by use of tables followed by discussion of the results. All this was achieved by the use of Statistical Package for Social Science (SPSS V 20). This study found that factors that were considered critical to successful implementation of ERP were found critical and companies using the software should give emphasis on those factors considered critical to succeed while implementing ERP. Areas like education and training, top management support, considering organizational diversity and fit between organizational culture and ERP are among the factors that need high attention. Increase in overall firm performance is gained due to implementation of ERP and Cost of operations has been reduced, improvement in efficiency of resources has been effected, and reduced cycle time and more accurate and prompt data are found because of implementation of ERP.
Description
Keywords
critical success factors, ERP (enterprise resource planning), Organizational performance