The Practices And Challenges Of Enterprise Resource Planning Project Implementation Of Commercial Bank Of Ethiopia
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Date
2018-06-06
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Addis Ababa University
Abstract
Currently, organizations are using Enterprise Resource Planning Software (ERP) for better business progress and managing increasingly complex operations to attain success and competitive edge over their competitors. The ERP software is a technology information system which accustomed to integrate all functional areas of business processes and resource of an organization. Therefore, commercial bank has introduced this new information system solution named ERP in August 2015 with respect, the major objective of this study is to assess the practices and challenges of ERP project implementation in the bank and to recommend the possible solutions for the gap identified during the implementation. As a result, The Sample size was determined from the total 150 population size to conduct the study using the formula developed by Taro Yamane (1967). Thus, the sample size of the study was 110 individuals who were selected from five ERP modules practices project areas. The researcher used proportionate stratified sampling from probability and purposive (judgmental & Quota) sampling from non-probability technique sampling to get a representative of needed sample from total population of project employees. Data collected from target group by means of questionnaires and interviews including observation. Then after, Beside 6 interview questions, questionnaires with items of 35 were distributed and collected 89 with a response rate of 80%. The collected data was analyzed using SPSS (Statistical Package for the Social Sciences) version 20. Presentation, interpretation and discussion also concluded using table, percentage, mean to get ample findings. The researcher has used descriptive research method. Consequently, the paper focused on the practice, success factors & challenges. However, regarding success factors, the most critical success factors such as top management commitment, project team composition, training & education and system’s customization & integration were found out of all critical success factors. It is also observed that the ERP system is being practiced effectively across the divisions of the organization where the system is implemented although problems which hinder the practice of the system related to technological, organizational, people, and process challenges were identified while implementing ERP project. These challenges were data cleansing challenge, Problem in User's adaptability, System performance & network interruption, Integration of modules interface with existing system, Standardization challenges, Knowledge and skill for ERP implementation and technical challenges were the major one encountered. Finally, possible recommendations and suggestions like “the bank has to have a holistic approach not just a focused on only single application, the bank should pay great attention to keep the safety or guarantee of IT at first before applying additional system with it, software vendors & consultants should use latest ERP version zero modification approach regarding customization etc. have outlined at the end in order to resolve the gap or those challenges and to improve the practices.
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Keywords
ERP, ERP Practice, ERP success factor and ERP challenges