Comparative Analysis of Critical Factors Affecting Erp Implementation in Private and Public Organizations in Ethiopia: a Pareto Approach
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Date
2018-06-03
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Addis Ababa University
Abstract
This paper attempts to explore and identify factors affecting ERP implementation in private and public organizations in context to Ethiopia. Several works were done in relation to ERP implementation around the globe. But institutional and environmental factors may differ in ERP implementation and strongly needs investigation in order to adopt and use the system efficiently and effectively. ERP system adopted successfully in one culture, nation, or region, may be failure in another. Besides comparative analysis of contextual factors of ERP implementation in public and private organizations is not addressed in extant literature in context to Ethiopia.
This research takes cases of MS-Dynamics ERP solution in ASKU private business organization and Ale Bejimlla public business organization. The research used detail interviews, document review and mainly used survey questionnaires. Purposive sampling technique was used to collect the data in both cases because the researcher selected key respondents in order to answer the research questions properly. Quantitative data was analyzed using descriptive statistics such as frequencies and percentages were used to describe the data.
To identify the more critical factors that affect ERP implementation, Pareto approach is applied. Which factors are more critical in private and public organizations? What are the similarities and differences between private and public organization regarding ERP implementation? Although the same ERP software package is implement in private and public organization, the results of this study shows some key critical factors are different and some others are similar in both organizations.
Accordingly, availability and facilitation of IT infrastructure, teamwork composition, top management support and commitment are crucial issues that were found in both cases. However, business process reengineering and software configuration, training and support for users, end user involvement, existence of communication plan, consultant selection and relationship are identified as the crucial factors that were found in private organization than public organizations. On the other hand, budgetary constraints, financial plan, implementation strategy and time frame, customization/localization of software according to environment are identified as the crucial factors that found in public organization than private organizations.
In addition, recommendations are forwarded for private and public organizations in order to enhance the opportunities to implement ERP system. Therefore, managers, users, implementers and any other stakeholders should be focused on these key factors in implementing ERP system in any organizations.
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Keywords
ERP Implementation, Private Organization, Public Organization, Pareto Approach