Enterprise Resource Planning (ERP) System Implementation: Evidence From Ethio- Telecom
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Date
2016-05
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Addis Ababa University
Abstract
This research work finds challenge and constraint of an Enterprise Resource Planning (ERP)
system implementation with particular reference to Ethio telecom. An Enterprise Resource
Planning system is a corporate wide information system which is used to integrate the business
processes and resources of a company. When the business environment of a company increases
and becomes complex, it is difficult to continue with the traditional decentralized information
systems for timely decision making and other activities. In today‟s competitive business
environment, ERP systems are found to be essential for companies to get competitive and
strategic advantages. Therefore, the major objective of this study is to assess the implementation
challenge of Enterprise resources planning in ethio telecom and to recommend possible solutions
for the gap created during the implementation. As result, the researcher has tested the
implementation effectiveness by selecting major challenge and other related concepts. This
research has a exploratory nature which elaborates the existing phenomenon as it exists. The data
was collected using questionnaires from ERP user. The collected data was analyzed using mainly
by computer such as SPSS (Statistical Package for the Social Sciences) version 23
Furthermore, the units/strata have been selected since these work units are the major owner of
the modules in the system, accordingly the total of 38 employees select randomly among ERP
user as a sample by using stratified random sampling technique and questionnaires were
distributed accordingly Consequently, results shows that the deploy ERP system is not properly
implemented and practiced on the basis of the selected effectiveness variables; it is observed that
the ERP system is not effective across the divisions the system is implemented. In addition,
problems which hinder the practice of the system were identified. As a result, lack of top
management support, the rate of training, documentation and knowledge transfer, compatibility
issues with ERP module were found major challenges in ERP implementation in Ethio-telecom.
However, the priori criteria “stepwise implementation” was not considered as putting the
challenge and constraint in the implementation of ERP in Ethio-telecom.
Hence, the researcher has recommended that the company should re-consider its system with
regard to the support of top management in assisting successful implementation of ERP in Ethio-
telecom. Moreover, user interface of the system should easily be understandable, there should be
mechanism so that users can work on the system without any challenge . Finally, the company
should give emphasis for the reporting formats so that any decision maker or external
stakeholder can the reporting formats should be easily understandable
Description
Keywords
Implementation, Evidence