Transcript 'An Empirical Study on Critical Success Factors for

An Empirical Study on
Critical Success Factors
for Enterprise Systems
Implementation
Fiona Nah and Janet Lau
College of Business Administration
University of Nebraska-Lincoln
Research Objectives
 Identify Critical Success Factors (CSFs) for
ERP Implementation




What are they?
Degree of criticalness of each factor?
From CIOs, implementers, vendors, consultants,
and end-users perspectives
This presentation reports findings from CIOs
Research Procedures
 Through a comprehensive review of the literature,
eleven factors were found to be critical to ERP
implementation success
 These factors were classified into the respective
phases (chartering, project, shakedown, onward and
upward) of the ERP life cycle model proposed by
Markus and Tanis
 The survey was mailed out to the CIOs of Fortune
1000 companies
 Option to reply by mail or thru’ our web site
The Eleven CSFs Identified
Appropriate Business & IT
Legacy Systems
Business Plan & Vision
Monitoring & Evaluation of
Performance
Project Champion
Business Process Reengineering
Project Management
Change Management Culture
& Program
Software Development, Testing
& Troubleshooting
Communication
Top Management Support
ERP Teamwork & Composition
ERP
Teamwork
&
Compositi
on
Change
Manage
ment
Program
and
Culture
Top
Manage
ment
Support
Bingi, Sharma & Godla (1999)
x
x
x
Buckhout, Frey & Nemec (1999)
x
Falkowski, Pedigo, Smith & Swanson
(1998)
x
x
Holland, Light & Gibson (1999)
x
x
x
x
x
x
x
x
x
x
x
Roberts & Barrar (1992)
Rosario (2000)
x
x
Business
Plan &
Vision
BPR &
Minimu
m
Customiz
ation
Project
Manage
ment
x
Monitoring
and
Evaluation
of
Performance
Project
Champion
x
x
x
x
X
x
X
x
X
Scheer & Habermann (2000)
x
x
x
x
x
x
x
x
x
Stefanou (1999)
x
Sumner (1999)
x
x
x
Wee (2000)
x
x
x
Appropria
te
Business
& IT
Legacy
Systems
x
x
x
Communi
cation
Software
Development
, Testing &
Troubleshoot
ing
x
x
x
x
X
x
x
X
x
x
x
Process Theory Approach
by Markus and Tanis
1. chartering -- decisions defining the business case
and solution constraints;
2. project -- getting system and end users up and
running;
3. shakedown -- stabilizing, eliminating "bugs",
getting to normal operations;
4. onward and upward -- maintaining systems,
supporting users, getting results, upgrading,
system extensions.
PREPARATION
ANALYSIS DESIGN
CHARTERING
PHASE
IMPLEMENTATION
PROJECT
PHASE
MAINTENANCE
SHAKEDOWN
PHASE
ONWARD
&
UPWARD
ERP Teamwork & Composition
Top Management Support
Business Vision
Business Plan & Vision
Effective Communication
Project Management
Project Champion
Appropriate Business & IT Legacy Syst
Change Mgmt. Program & Culture
BPR & Minimum Customization
S/W Dev, Testing & Troubleshooting
Monitoring & Evaluation of Performance
Classification of CSFs into Markus and Tanis' ERP Life Cycle Model
Survey Responses
 Total responses to date -- 70




by mail – 64
thru’ website – 6
Implementing or implemented ERP – 49
Not implemented ERP – 21
Commu
nication
ERP
Teamw
ork &
Compo
sition
Monito
ring &
Evaluat
ion of
Perfor
mance
Project
Champi
on
Project
Manage
ment
Softwar
e
Develop
ment,
Testing
&
Trouble
shooting
31
21
33
20
36
30
15
37
14
11
24
14
20
9
18
27
11
4
9
6
4
2
7
3
1
7
1
1
3
1
2
1
Approp
riate
Busines
s & IT
Legacy
System
s
BPR
Change
Manage
ment
Culture
&
Progra
m
Busines
s Plan
&
Vision
Extremely critical &
important for success
9
20
23
Critical & important for
success
20
24
Somewhat critical &
important for success
11
Important but not critical /
necessary for success
5
Neither critical nor important
for success
4
Survey Results from CIOs
Top
Manage
ment
Support
Survey Results
Top Management Support
5
ERP Teamwork & Composition
4.5
4
Project Champion
3.5
Project Management
3
Change Management Culture &
Program
2.5
Communication
2
Business Plan & Vision
1.5
Monitoring & Evaluation of
Performance
1
Business Process Reengineering
0.5
0
Factors
Software Development, Testing
& Troubleshooting
Factors
Appropriate Business & IT
Legacy Systems
Appropriate Business & IT
Legacy Systems




Extremely critical & important for success - 9
Critical & important for success - 20
Somewhat critical & important for success - 11
Important but not critical / necessary for
success - 5
 Neither critical nor important for success - 4
Business Plan & Vision




Extremely critical & important for success - 20
Critical & important for success - 24
Somewhat critical & important for success - 4
Important but not critical / necessary for
success - 1
 Neither critical nor important for success - 0
Business Process
Reengineering




Extremely critical & important for success - 23
Critical & important for success - 14
Somewhat critical & important for success - 9
Important but not critical / necessary for
success - 3
 Neither critical nor important for success - 0
Change Management Culture &
Program




Extremely critical & important for success - 31
Critical & important for success - 11
Somewhat critical & important for success - 6
Important but not critical / necessary for
success - 1
 Neither critical nor important for success - 0
Communication




Extremely critical & important for success - 21
Critical & important for success - 24
Somewhat critical & important for success - 4
Important but not critical / necessary for
success - 0
 Neither critical nor important for success - 0
ERP Teamwork & Composition




Extremely critical & important for success -33
Critical & important for success - 14
Somewhat critical & important for success - 2
Important but not critical / necessary for
success - 0
 Neither critical nor important for success - 0
Monitoring & Evaluation of
Performance




Extremely critical & important for success - 20
Critical & important for success - 20
Somewhat critical & important for success - 7
Important but not critical / necessary for
success - 2
 Neither critical nor important for success - 0
Project Champion




Extremely critical & important for success - 36
Critical & important for success - 9
Somewhat critical & important for success - 3
Important but not critical / necessary for
success - 1
 Neither critical nor important for success - 0
Project Management




Extremely critical & important for success - 30
Critical & important for success - 18
Somewhat critical & important for success - 1
Important but not critical / necessary for
success - 0
 Neither critical nor important for success - 0
Software Development, Testing
& Troubleshooting




Extremely critical & important for success - 15
Critical & important for success - 27
Somewhat critical & important for success - 7
Important but not critical / necessary for
success - 0
 Neither critical nor important for success - 0
Top Management Support




Extremely critical & important for success - 37
Critical & important for success - 11
Somewhat critical & important for success - 1
Important but not critical / necessary for
success - 0
 Neither critical nor important for success - 0
Conclusions
 According to the survey results,
 top mgmt. support, ERP composition &
teamwork, project champion, project
management, and change management
culture & program received the highest
ratings
 Future research will include ratings by
implementers, vendors, consultants, and
end-users