ERP Post-Implementation Management Framework: The case of Ethiopian Airlines
No Thumbnail Available
Date
2015-06-04
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
ERP system is being adopted by international organizations globally; in order to streamline business processes, manage and create seamless integration, and ensure real time information availability for decision making. ERP adoption is considered as one of the biggest and most complex projects a firm could manage even though these projects can vary in size, structure, and methodology. This is due to the extensive requirement of effort, time, resources, and organizational changes. As a result, ERP system implementation critical success factors (CSFs) and project management aspects have gotten much attention by both researchers and business practitioners. However, successful implementation of ERP is only a first step in the accomplishment towards achieving ERP success. Prior studies have revealed that organizations are not achieving the promised business values due to several post-implementation issues and underutilization of the system. This indicates, post-implementation is an essential phase of ERP life-cycle for the system success.
The purpose of this study is to investigate technical, organizational, and operational issues of ERP post-implementation success in the context of Ethiopian airlines and design a solution framework to address those issues. The general approach of this research was a case study in which a combination of quantitative and qualitative methods has been used to collect and analyze data. Based on extensive literature review, a research model was established which constitutes three main themes: technical, organizational and operational concerns that influence ERP post-implementation success. The survey questionnaire and interview outline contents were prepared based on the defined research model by partially adapting from existing literature and developing additional ones as required. The quantitative aspect of the study involved 124 end users from various departments of the organization with different job positions, roles, and work experience. In the qualitative study, direct interviews were used to collect data from 4 executive management members of the airline. Moreover, document analysis was used as a secondary source of data to gain more information and triangulate the findings.
The quantitative data were analyzed by employing appropriate techniques of descriptive and inferential statistics using SPSS software tool. The qualitative data were analyzed using the techniques of open codding. The result of the study indicated that organizational theme constructs were the most critical determinants of ERP post-implementation success; which make the highest
viii
contribution (58.93%) of the total variance. Accordingly, continuous improvement (41.02%), user involvement (6.61%), training (4.94 %), absorptive capacity (3.23%) and top management championship (3.13%) are the major constructs of organizational theme. Technical theme has a significant contribution which explains 10.36% of the total variance of ERP post-implementation success. The technical theme constructs are ERP attribute, IT expertise and user support level quality, and external relationship management. Based on the research findings, a solution framework has been designed and presented in a two-dimensional matrix format. The first dimension of the matrix (vertical) represents the core issues/ activities to be executed and the second dimension (horizontal) represents the management, people, process, and technology perspectives of the proposed solutions with respect to the identified core issues/ activities.
The survey questionnaire and the interview outline contents were reviewed by IT professional and ERP experts of the organization to measure the content validity. Subsequently, pilot study was conducted with selected users and the feedbacks were incorporated prior to disseminating the questionnaire to the respondents. Further, to measure the internal consistency of the questionnaire, reliability test was conducted using cronbach‟s coefficient alpha with a result of .917 which asserted the reliability of the instrument. Moreover, construct validity was conducted using principal component analysis (PCA), which declared that the constructs of the study explain 74.16% of the total variance of ERP post-implementation success.
In this study, expert validation and descriptive methods were used to evaluate the result (proposed framework) of the study. Accordingly, focus group discussion and survey questionnaires were the two ways used to gain expert validation. The overall rating of the proposed framework is 4.26 which represent the category of „Very Good‟.
Hence, the research process and result of this study is believed to be valid which indicates the usability and applicability of the output of the study.
This research is believed to produce results that can improve the utilization of ERP system in Ethiopian airlines, other sectors, and organizations. Finally, it is recommended to execute the proposed framework by focusing on organizational theme as a priority goal in order to improve the utilization of the system and attain post-implementation success.
Description
Keywords
ERP, ERP Post-implementation, ERP utilization