Critical Success Factors for Implementation of ERP Projects
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Critical Success Factors (CSFs): A Framework for Successful
ERP Project Implementation
KRISHNAN, Satish
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Agenda
Introduction (ERP & CSF) CSFs of ERP Implementation Research Gap Research Methodology & Process Case Description Case: Xity CSFs in each case CSFs by degree of their importance Six Factor Model Conclusion
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ERP
Integrates all business functions into a single system with a shared DB.
ES or Enterprise-wide System Commodity (a product in form of computer software)
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Motivation for ERP Implementation
Technical Operational Strategic
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CSFs
Key success variables for a project’s success Factors which, if addressed, significantly improve
project implementation chances. CSF types
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CSFs of ERP Implementation
Butler and Fitzgerald (1999)
9 CSFs by concentrating only the development related issues in developing organizational IS.
Light and Gibson (1999)
12 Specific CSFs regarding ERP implementation. Somers and Nelson (2001)
22 CSFs towards ERP implementation project and the importance of these CSFs in each stage of implementation process are examined.
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Research Methodology & Process
Methodology
- Case Study Research Method Data collection methods
- Participant observations
- Interviews
- Document Reviews
- Online Questionnaire Survey Research Process
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Case Description
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Case: Xity
Company Background• World's largest financial services organization• Focused in the stock brokerage and investment
banking areas• Total assets (US $2.4 trillions)• 332,000 staff around the world• Over 220 million customer accounts in more
than 100 countries• Mergers & Acquisitions
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Need for ERP System
Each new merger and acquisition represented a different HR system
Generating information regarding headcount and employee data became very challenging
The ability to collate information regarding own staff had become inefficient and expensive (due to decentralized system)
Xity top management wanted its HR department to concentrate on career development, retaining talents, productivity and other strategic planning rather than updating and collecting personnel information
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Facts about ERP Implementation
Global Plan
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Vendor & Package Selection• An evaluation team was formed (XES Global
Head, XES Region Heads, HR Heads)• Three ERP systems/vendors were short-listed:
PeopleSoft, Oracle and SAP• PeopleSoft was selected (Global Customer
Support, Product Establishment, Product Support , Experience, Professional Services)
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Asia Pacific/Japan Plan
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Approach adopted (Big-Bang Vs Phased)• Big-Bang: Entire suit of ERP applications is
implemented at all locations at the same time• Phased: The modules are implemented one at a
time or in a group of modules, often a single location at a time
• Singapore and Hong Kong were selected for the Pilot/Phased implementation
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Implementation Plan
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Project Team Structure• 1 Project Manager• 3 Project Leads (Senior Business Analysts)• 3 Business Analysts (Preferably at least 1 with a
good grasp of the local language and culture)• 1 Trainer (With a good grasp of the local
language and culture)• 1 Technical Lead (Senior Technical Analyst)• 6 Technical Analysts• 1 Compliance Officer
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Implementation Process for APAC/Japan• Project Kick-Off Meeting & Business
Requirements Gathering• Project Specifications Documentation• Legal and compliance issues • Difficulty with time zone difference• Localization • Multilingual data support
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Training• Face-to-Face Training with the use of Training
Manuals• Net Meetings• Computer Based Training
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CSFs identified from case1.Top Management Support2. Involving end user3. Providing User Training4. Selection of Appropriate Vendor & Package5. Vendor Support 6. Project Champion7. Monitoring & Feedback8. Minimum Scope Changes9. Clear Project Plan10. Dedicated Project Team
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CSFs in each case
CSFs by degree of their importance
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Six Factor Model
Management Factors Technology Factors Operational Factors Human Resource Factors Attitudinal Factors Communication Factors
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Conclusion
Six Factor model could be used by different ERP adopting organizations as a frame work for successful project implementation.
More statistical tools could be used to find the most critical factors out of the above thirty nine factors.
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