Identifying Critical Success Factors in the Implementation of Microsoft Dynamics Nav Erp System: in Case of Selected Ethiopian Companies
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Date
2020-07-07
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Addis Ababa University
Abstract
Enterprise resource planning (ERP) systems were highlighted as one of the most common business management systems in the literature, offering the advantages of real-time functionality and greater management power in organizations. With the growth of today's market for information technology, Ethiopian organizations have embarked on ERP implementation systems as a common and necessary platform for leveraging their competitive advantages. Not all ERP implementations were successful though. Since the implementation of ERP brings substantial changes to the business norms, processes, people, and culture of organizations, there are a variety of challenges organizations can face when implementing ERP systems.
Hence, understanding the critical success factors (CSF) when implementing an ERP system is vital as it can provide a successful implementation. Previous research in Ethiopia has mainly focused on the general perspective, whereas only very few researches done in Ethiopia on ERP implementation life cycle, with a limited focus on small sample size and single cases. This thesis complements the research by concentrating on investigating the effect of critical success factors in the chartering phase of Microsoft Dynamics NAV ERP system implementation. This study aims to identify critical success factors in the project chartering phase of Microsoft Dynamics NAV ERP System implementation.
Eight critical success factors are derived from previous research: (1) Project Champion, (2) Project management, (3) Business plan and vision, (4) Top Management support, (5) ERP Team and Composition, (6) Change management, (7) Effective Communication, and (8) Legacy System consideration. Hypotheses are developed from these essential success factors which are evaluated using a survey including 5 rating scale questions in Likert format. The hypothesis is tested using the Pearson correlation coefficient and an application of multiple linear regression.
The results show that two critical success factors are most critical in the project chartering phase of Microsoft Dynamics NAV ERP system implementation. These are ERP team and composition, and change management. The researcher recommended for other organizations to consider the three critical success factors while implementing the Microsoft Dynamics NAV ERP system.
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Identifying Critical Success Factors, Implementation, Microsoft Dynamics Nav Erp System, Case of Selected, Ethiopian Companies