Critical Success Factors of Implementing Enterprise Resources Planning (ERP) System in Sourcing: The case of ethio telecom
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Date
2017-06
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Addis Ababa University
Abstract
Organizations look to enterprise resource planning (ERP) as a significant strategic tool of competition but there are many difficulties in compelling people to implement it effectively. In this case, how to help ERP’s future effective implementation has already attracted some researchers’ attention. The core research developed is focused on critical success factors of ERP implementation. Therefore, the major objective of this study is to identify the critical success factors of ERP System from sourcing perspective in ethio telecom and whether the implemented ERP system has successful and brought the intended outcome.
This study has used a descriptive and Explanatory research type to elaborates the existing phenomenon as it exists and to examine the current relationship between the success of ERP implementation and the critical success factors. The primary data was collected using questionnaires from Sourcing department staffs through simple random sampling method. In addition, the collected data was analyzed using mainly by SPSS (Statistical Package for the Social Sciences) version 20.
The study result shows that the deployed ERP system is implemented successfully and brought the intended outcome in improving the efficiency of Sourcing function and the overall performance at company level by reducing the decision making cycle time and Sourcing lead time. In addition, the research found that User training and Education, System Provider and/or Consultant support, Technological Infrastructure, Change Management & Effective communication have significant relation with the Success of ERP systems implementation and do have high impact on ERP implementation success. However, my data did not shows significant relation between Top Management commitment & Support, Project Management and Clear Goals & Objectives crtical factors with Success of ERP Systems implementation.
Hence, the study has recommended that the company should give due attention to the Top Management Support, Project Management and Clear Goals and Objectives of CSFs while deploying the next phase of ERP System to enhance the overall success rate of ERP implementation since particularly Top Management Support and Project Management Factors have significant relation with ERP Implementation success as per the literatures and most of the empirical studies conducted in this area. Moreover, the company should also work on shortfalls to improve the existing ERP system successfulness and minimize the shortfalls in the next phase ERP System implementation. Finally, the study recommends for ERP practitioners to give due attention for the identified five KCSFs (i.e., User training and Education, System Provider and/or Consultant support, Technological Infrastructure, Change Management and Effective Communication) which have high predictive value and significant association with the Success of ERP System implementation while deploying this System
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Keywords
Key Critical successful factors (KCSF), Enterprise resource planning (ERP), ERP implementation