CRITICAL SUCCESS FACTORS IN ERP PROJECTS ERP System The main aim of ERP system is obtain the optimum

utilization of its resources. This can be archived by standardization and integration of business operation. ERP systems have the following characteristics: 1. ERP systems are packaged software designed for a client server environment, 2. ERP systems integrate the majority of a business’s process. 3. ERP systems process a large majority of an organization’s transactions. 4. ERP systems use an enterprise-wide database that typically stores each piece of data 5. ERP systems allow access to the data in real time. In some cases, ERP calls for an integration of transaction processing and planning activities (e.g., production planning) Support for multiple currencies and languages (critical for multinational companies) Support for specific industries (e.g., SAP supports a wide range of industries, including oil and gas, health care, chemicals, and banking) Ability to customize without programming Why EPR implementation’s success is critical The definition and measurement of success are thorny matters. First, success depends on the point of view from which one measures it. Even within a single company people will have different ideas. For example, implementation specialists often define success in terms of completing the project plan on time and within budget while the user and adopter tend to focus on the transition from old systems and stable operation. ERP systems are commercial software packages that enable the integration of transactions-oriented data and business process throughout an organization. Beginning with the manufacturing and financial systems, ERP systems may eventually allow for integration of inter-organizational supply chains. Because these systems touch so many aspects of a company’s internal and external operations their successful deployment and use are critical to organizational performance and survival. Implementing an ERP system is not an inexpensive or risk-free venture. In fact, 65% of executives believe that ERP systems have at least a moderate chance of hurting their business because of the potential for implementation problems. Most organizations have extensive experience managing traditional MIS projects but these new ERP projects may represent new challenges and present new risk factors that must be handled differently.

Critical success factors in ERP implementation A critical success factor is something that the organization must do well to succeed. In terms of information system projects, a critical success factor is what a system must do to accomplish what it was designed to do. The methodology of studying CSFs behind ERP implementations is very similar to the approach used in a variety of studies in Information Technology (IT) implementation research. Some of these factors are the one that have been found to be significant in other IT implementations. Three factors consistently appear as critical success factors for information systems projects: Top management support, Client consultation (user involvement) Clear project objectives. 1. Strategic factors: Top management supports have shown that the ERP implementation was in general a top-down decision and the success of such an implementation depended on the alignment of the ERP adoption with strategic business goals. 2. Tactical factors: Effective project management – in order to successfully accomplish the decision to implement an ERP system, the effective project management comes into play to plan, coordinate and control such an intricate project Re-engineering business processes – it is very important to consider the extent to which the company needs to re-engineer its current business processes in order to be compatible with the ERP software. Suitability of software and hardware – management must make a careful choice of an ERP package that best matches the legacy systems, e.g. the hardware platform, databases and operating systems. 3. Operational factors: Education and training – when the ERP system is up and running it is very important that the users be capable to use it, hence they should be aware of the ERP logic and concepts and should be familiar with the system’s features. User involvement – participating in the system development and implementation, the users go through a transition period that gives them time to better understand the project’s consequences. Critical success factors in ERP implementation are as follow: ?Project Champion ?Project Management ?Business Plan and Vision ? TopManagement Support and Executive Commitment ?ERP Team and Composition?Project Support and Effective Communication ?Legacy Systems and Informaion Technology ?Business Processes ?System Integration ?System

Testing ?A Vanilla ERP Approach ?Software Selection and Support ?Strategic Initiatives ?Human Resources ?Training ?Data Quality ?Vendor Resources ? Organizational Culture?Competitive Analysis of Enterprise Integration Strategies ? Organizational Knowledge Management ?Risk Management ?Readiness Core Modules Of ERP: ERP software is made up of many software modules. Each ERP software module mimics a major functional area of an organization. Common ERP modules include modules for product planning, parts and material purchasing, inventory control, product distribution, order tracking, finance, accounting, marketing, and HR. Organizations often selectively implement the ERP modules that are both economically and technically feasible. Different ERP Vendors provide ERP system with some degree of speciality…………….. But the core modules are almost the same for all of them. Some of the core modules found in the successful ERP system are the following: Accounting management Financial management Manufacturing management Production management Transportation management Sales & distribution management Human resources management Supply chain management Customer relationship management E-Business Literature Review: Critical Success factors have been cited in IT research. There are a great number of articles on CSF. In this literature review section the only focus is on the CSF in ERP implementation. The difficulties and high failure rate in implementing ERP systems have been widely cited in the literature, but research on critical success factors (CSFs) in ERP implementation efficiency is still fragmented. Most literature combines the CSFs with different ERP characteristics. Here I choose some classic literature examples and review them by chronology. Larsen and Myers (1997) found that an ERP experience could be an early success and a later failure. This result is supported by a case study – a BPR project involved redesigning the main accounting process within one organization in the New Zealand financial services industry. The following two factors would lead to failure: 1. Inappropriately cutting project scope 2. Cutting end-user training Their finding show the different measures of success are appropriate at different points in the ERP experience cycle and that the outcomes measured at one point in time are only loosely related to outcomes measured later. This occurs because the experience cycle is

a process (actually a set of processes) and not a mechanical connection between starting conditions and final results. Some suggestions on implementation are proposed such as the decomposition of the project into manageable parts, the level of budget to be allocated to the project and shakedown phases of each part, an appropriate project leader and/or implementation partner, and so forth.Bancroft et al. (1998) provided critical success factors for ERP implementation including top management support, the presence of a champion, good communication with shareholders, and effective project management. This is derived from discussions with 20 practitioners and from studies of three multinational company implementation projects. Before implementing ERP it is important to develop key IT capabilities. Willcocks and Sykes (2000) propose several scenarios and use cases to prove these scenarios. Unlike the development of new simple software applications the main target of ERP is to fulfill BPR (business process reengineering). Many companies failed on this aspect of ERP implementation. This failure was driven by the need for major change in human, culture, and organization relationships. Willcocks and Sykes emphasize Feeny and Willcocks (1998) nine core IT capabilities and believe these nine core IT capacities must be retained in-house, since in come cases the companies have to outsource human resources to work closely with the in-house team and ensure that a transfer of learning takes place. In order to obtain necessary IT capabilities, Willcocks and Sykes suggested some strategies to manage the ERP implementation: 1. User versus technology With business requirements changing rapidly, further learning and innovation is required. As IT becomes more organizationally pervasive, development will not rely on IT specialists or external IT suppliers. Users themselves will approach IT through multifunctional teamwork, personal relationship, and business goals. 2. Governance and staffing Effective business innovation requires high-level support and a project champion. An efficient team combination is recommended including: Full-time, high-performing users In-house IT specialists People with bridge-building interpersonal skills Fill-in external IT staff and knowledgeable users/managers 3. Time-box philosophy They recommend decomposing implementation into smaller projects. This approach can help reduce project risk. This is also known as converting “whales” (large unmanageable projects) into “dolphins” (smaller and more manageable projects). 4. Supplier/ consultant role in ERP

Great implementation team 5. 2. and customer information. However. 1) Data accuracy. (2001) propose 11 factors as being critical to ERP implementation success: ERP teamwork and composition. Successfully coping with technical issues 6. at great expense and with great frustration. Secondly. Umble. Data accuracy 9.. monitoring and evaluation of performance. testing and troubleshooting. But some factors were new…. Multisided issues resol Among them some are already pointed in past literatures”. supply chain information. effective communication. Excellent implementation project management 4. project champion. human resource information. business plan and vision. with incompatible information systems and inconsistent operating practices. managers have struggled. a change in management program and culture. business process reengineering with minimum customization. Focused performance measures 10. consultants fill in the in-house shortage of skills. top management support. software development. Nah. project management. the company may choose to outsource the entire IT project to decrease the risks. appropriate business and IT legacy systems Elisabeth J. Clear understanding of strategic goals. 2) Focused performance measures. et al. Commitment by top management 3. Organizational commitment to change 7. Fiona Fui-Hoon. They divide CSFs into 10 categories: 1. Extensive education and training 8. 3) Successfully cope up with technical issues. et al (2003) point out that commercially available software packages promise seamless integration of all information flows in the company-financial and accounting information. .First.

Tactical factors: Effective project management – in order to successfully accomplish the decision to implement an ERP system. After extensive research on CSF (Critical Success Factors) . According to Majed Al-Mashari(2003). et al the measuring and evaluation of performance are very critical factors in ensuring the success of any organization. de-bottlenecking. It is suggested in the taxonomy that measurement take place in a balanced perspective and for the purpose of proving useful information that can facilitate the decision making process. the authors advise that regular auditing and benchmarking should be considered for optimization of the potential available to all aspects of business. external benchmarking may bring new ideas. optimizing and redesigning for more extensive benefits. User involvement – participating in the system development and implementation. . databases and operating systems. the users go through a transition period that gives them time to better understand the project’s consequences. streamlining the processes. coordinate and control such an intricate project Re-engineering business processes – it is very important to consider the extent to which the company needs to re-engineer its current business processes in order to be compatible with the ERP software. deliver the corporate objectives and forward the business competitively. e. Strategic factors: Top management supports have shown that the ERP implementation was in general a top-down decision and the success of such an implementation depended on the alignment of the ERP adoption with strategic business goals. the effective project management comes into play to plan. 3. the hardware platform. Suitability of software and hardware – management must make a careful choice of an ERP package that best matches the legacy systems. To obtain this system.g. Operational factors: Education and training – when the ERP system is up and running it is very important that the users be capable to use it. knowledge and better practices on dealing with deficiencies in ERP systems. generally factors are divided into 3 main categories: 1. Furthermore. 2.4) Extensive education & training. hence they should be aware of the ERP logic and concepts and should be familiar with the system’s features.

Bhatti@zu. we identify 12 constructs covering critical success factors for ERP . organizations must improve their business practices and procedures. many organizations do not achieve success in their ERP implementation projects. Some of the reasons cited in the literature are lack of support of top management support. Not all ERP implementations have been successful. first. The questions many academicians and researchers have asked what are the reasons of success and failure of ERP implementations. Much has been written about implementation and the critical success factors for ERP implementation projects. This research is an attempt to extend the ERP implementation research by defining the conceptual domains constructs and operational measures specific to ERP implementation critical success factors to advance ERP research. It is argued that model proposed in the paper is valuable to researchers and practitioners interested in implementing Enterprise Resource Planning systems. Keywords: ERP.ae ABSTRACT Implementing an Enterprise Resource Planning (ERP) system project is a difficult and high cost proposition as it places tremendous demands on organization’s time and resources. However. poor selection of ERP systems and vendor etc. INTRODUCTION The business environment is changing dramatically and in order to stay competitive in the market. The ERP implementation literature contains many case studies of organizations that have implemented ERP systems successfully. Based on a survey of 53 organizations in Australia. Bhatti College of Business. the results suggest that a 65 item instrument that measures seven dimensions of ERP implementation is well validated. resistance from employees. Implementation. Organizations within all departments and functions upgrade their capability to generate and communicate accurate and timely information. We follow two step processes.R. But there very few studies have scientifically developed and tested constructs that represent critical success factors of ERP implementation projects. Dubai. Majority of these studies have used case studies to conclude their findings and very few have used the empirical to study the ERP.2 CRITICAL SUCCESS FACTORS FOR THE IMPLEMENTATION OF ENTERPRISE RESOURCE PLANNING (ERP): EMPIRICAL VALIDATION T. standardized process and operational benefits to the organization. United Arab Emirates Email: Tariq. Constructs development.ac. Zayed University PO Box 19282. The organizations which have successfully implemented the ERP systems are reaping the benefits of having integrating working environment. There have been horror stories of ERP implementation and improper implementation has taken the companies to bankruptcy and in several cases organizations decided to abandon the ERP implementation projects. Critical Success Factors 1. The objective of this paper is to develop an instrument for measuring ERP implementation critical success factors.

ERP Implementation Process Analysis Investiture Final Preparation Go Live Implementation Success Implementation CSFs Project Management Process redesign User training Technological infrastructure Change management. conceptual framework of what we call “integrated ERP implementation. The third section provides details on the preliminary scale development methodology and field database. MIS.implementation. construct definitions. This process yielded the baseline model depicted and a set of initial measurement scales for twelve theoretically important critical success factors. we apply a rigorous procedure for ensuring the psychometric adequacy of the resulting new multi-item measurement scales.” which is comprised of a set of theoretically important constructs. we introduced an integrative. and operations to develop a framework. because the constructs are latent variables. Figure 1 illustrates the conceptual model developed for this study. Risk Management Top management support Communication Team work User involvement Use of consultant . Change management. Section 4 describes and reports on The Second International Conference on Innovation in Information Technology (IIT’05) 2 results. We conducted a cross-disciplinary literature review encompassing BPR. constructs are defined and then a rigorous empirical scale development process in order to identify sets of survey items that exhibit satisfactory levels of reliability and validity. This framework has been developed based on the project life cycle approach. Drawing from multiple literature bases. 2. In the first section of this paper. innovation diffusion. Upon the completion of ERP implementation project. MODEL DEVELOPMENT Figure 1: Enterprise Resource Planning Systems implementation framework. strategic management. Section 2 presents a brief background of the research context and defines and illustrates the specific constructs for which new measurements scales are developed. in which the ERP implementation project goes through different phases before it goes live. Second. we conclude with a discussion of the implications of our results and usage of the scales. and item generation for this study. In section 5. performance is measured by a mix of project outcomes and the project and business outcomes (intended business performance improvement). There are number of factors that affect the ERP implementation process are termed in this study as implementation critical success factors. review the limitations of our study. and offer some concluding thoughts.

which believed to be one of the important and beneficial results of the implementation of ERP system. CONCEPTUAL DOMIANS OF CSFS FOR ERP IMPLEMENTATION Since the model constructs are latent variables. It is defined by [3] as“the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical.2 Business Process Reengineering Another important factor that is critical for the success of ERP implementation is the Business Process Reengineering. but also in new processes and in understanding the integration within the system – how the work of one employee influences the work of others. commits personnel to those activities. service and speed”. It is clear that ERP .3 User training and education In ERP implementation process many projects fail in the end due to lack of proper training. were needed to obtain indirect measures of each construct. such as cost. Organizations should be willing to change their businesses to fit the ERP software in order to minimize the degree of customization needed. 3. 3. The implementation of ERP requires examination of many business processes. 3. multi-item scales. These scales were further refined (and some items were dropped) as a result of an empirical test of a survey instrument containing these initial scales.1 Project Management Project Management involves the use of skills and knowledge in coordinating the scheduling and monitoring of defined activities to ensure that the stated objectives of implementation projects are achieved. each composed of a set of individual items. contemporary measures of performance. Following are the commonly identified CSFs identified by several researchers and are pertinent for the success of ERP implementation project. The main reason for education and training program for ERP implementation is to make the user comfortable with the system and increase the expertise and knowledge level of the people.4 Technological infrastructure [8] and [9]argued that adequate IT infrastructure.Clear goals and objectives Business Outcomes Project Outcomes) 3. Many researchers consider users training and education to be an important factor of the successful ERP implementation [4] [5] [6] [7] [8]. ERP related concept. among which context related factors consistently appear. Training is not only using the new system. Critical success factors (CSF) are widely used in the information systems arena [2]. hardware and networking are crucial for an ERP system’s success. and hands on training are all important dimensions of training program for ERP implementation. quality. and promotes organizational support by organizing the implementation process. which cannot be measured directly. and refined through an expert judge-based manual sorting process [1]. Past studies have identified a variety of CSFs for ERP implementation. The formal project implementation plan defines project activities. The items listed in this section represent the scales as drawn from the practitioners. 3. features of ERP system. CSFs can be understood as the few key areas where things must go right for the implementation to be successful.

including themselves [10]. liabilities or vulnerabilities that may cause the project to deviate from the defined plan. The implementation of ERP system project is characterized as complex activity and involves a possibility of occurrence of unexpected events. Generally. managing. gets the right results. 3. and tracking changes in implementing an ERP system. like that associated with a new big information system. ERP implementation project risks are described as uncertainties. [5] identify organizational change is the body of knowledge that is used to ensure that a complex change. and (2) providing the necessary resources. hence it is probable that progress will deviate from the plan at some point in the project life cycle. in the right timeframe. possibly because companies underestimate the efforts involved in change management. [11] points out that the resistance to change is one of the main hurdles faced by most companies. To implement ERP system successfully.6 Management of Risk Every Information technology implementation project carries important elements of risk. it can be very time consuming. To implement an ERP systems successfully.implementation involves a complex transition from legacy information systems and business processes to an integrated IT infra-structure and common business process throughout the organization. The Second International Conference on Innovation in Information Technology (IIT’05) 3. Resistance can be destructive since it can create conflicts between actors. Many ERP implementations fail to achieve expected benefits. the way organizations do business will need to change and ways people do their jobs will need to change as well [12]. Top management support in ERP implementation has two main facets: (1) providing leadership. Change Management is important and one of the critical success factors identified in the literature. one of the main obstacles facing ERP implementation is resistance to change. Risk management is the competence to handle unexpected crises and deviation from the plan [14]. The ERP software vendor generally certifies which hardware (and hardware configurations) must be used to run the ERP system. It is understood that the risk of project failure is substantially reduced if the appropriate risk management strategy is followed.5 Change management Change management is a primary concern of many organizations involved in ERP project implementation [4]. They must be willing to allow for a mindset change by accepting that a lot of learning has to be done at all levels. [14] define top management to provide the necessary resources and authority or power for project success. 3.7 Top Management Support Top management support has been consistently identified as the most important and crucial success factor in ERP system implementation projects [4]. management should monitor the implementation progress and provide clear direction of the project. at the right costs. risk management is to minimize the impact of unplanned incidents in the project by identifying and addressing potential risks before significant consequences occur. This factor has been considered critical by the practitioners and as well as by the researchers. .[13] propose the recurring improvisational change methodology as a useful technique for identifying. It is imperative for success of implementation project starting at the initial phase and continuing throughout the entire life cycle. Therefore. Hardware selection is driven by the firm’s choice of an ERP software package.

3. Many companies prefer or must have external consultants to perform ERP implementation. The ERP team should be balanced. The functions of the ERP system rely on the user to use the system after going live. An ERP project involves all of the functional departments and demands the effort and cooperation of technical and business experts as well as end-users. Further. There are two areas for user involvement when the company decides to implement an ERP system: (1) user involvement in the stage of definition of the company’s ERP system needs. functional personnel and management. It is essential for creating an understanding. IT personnel and management.12 Goals and Objectives Clear goals and objectives are essential to guide an ongoing organizational effort for ERP implementation as it usually exceeds the time frame for a typical business project. Clear goals and objectives were the third most critical success factors in a study of MRP implementation. parent company employees. ERP implementation team comprises of. IT consultants. or cross functional and comprise a mix of external consultants and internal staff so the internal staff can develop the necessary technical skills for design and ERP implementation. hardware vendor. The Second International Conference on Innovation in Information Technology (IIT’05) 5 3.8 Effective Communication Communication is one of most challenging and difficult tasks in any ERP implementation project. It is important to set the goals of the project before even seeking top management support [14]. the members of the project team(s) must be empowered to make quick decisions. it requires the use of either internal or external experts who are knowledgeable about the installation and software. 3.10 User Involvement User involvement refers to a psychological state of the individual and is defined as the importance and personal relevance of a system to a user. According to a survey conducted by [6]. The communication should start early in the ERP implementation project and can include overview of the system and the reason for implementing it be consistent and continuous. It is also defined as the user’s participation in the implementation process. having competent members in the project team is the fourth most important success factor for IS implementation. In addition to gaining approval and user acceptance. 3. According to [16] survey. it is critical success factor and has to be managed and monitored very carefully. and (2) user participation the implementation of ERP systems. topmanagement.9 Team work and composition ERP team work and composition is important throughout the ERP implementation project. The “triple constraint” of project .3. Clearly. [4] revealed in their research on ERP implementation that consultants may be involved in different stages of the ERP project implementation. the communication will allow the implementation to initiate the necessary final acceptance. an approval of the implementation and sharing information between the project team and communicating to the whole organization the results and the goals in each implementation stage. but the user is also a significant factor in the implementation. It is considered a critical success factors for the implementation of ERP systems by many authors [5].11 Use of consultants Due to the complexity of implementing an ERP system. ERP vendor . management consultants.

The Second International Conference on Innovation in Information Technology (IIT’05) 6 4. to advance our understanding of the critical success factors of ERP implementation. Each expert judge was given a questionnaire containing short descriptions of each of the proposed constructs. the organization must carefully define why the ERP system is being implemented and what critical business needs the system will address. none of the existing scales was exactly appropriate for re. expectations. This purification step is designed to remove the potential for measurement error from the new construct to improve their reliability. then the items were purified. Collecting data from an initial sample of respondents helps to address these issues. Establishing the validity of the scales is dependent first upon establishing that they are reliable measures [17]. Items that were not consistently grouped into their target construct during this process were considered for rewording or elimination. However. SCALE DEVELOPMENT FOR CSFS OF ERP IMPLEMENTATION Scale development.management specifies three often competing and interrelated goals that need to be met: scope.2 Iterative item refinement To refine the scales. or the design and re-finement of multi-item scales employed to measure the constructs are vital to empirical research in management information systems [16]. The content validity of these constructs was tentatively established by extensive literature reviews and interviews with managers and customers of technology-mediated services. Some of the constructs involved in this research have been operationalized in previous studies and scales were available for these constructs. we adapted [17] widely used methodology for instrument development. a manual factor technique [18] was used to establish tentative scale reliability and validity.1 Item generation The construct brief discussion provided in Section 3 are necessary. After the initial item pool was generated. In each round. and deliverables. This method recognizes that the complexity inherent in many business processes cannot be adequately measured by a single scale. [17] recommends an iterative process consisting of several steps. Specifically. using independent panels of expert judges for each round. The manual sorting procedures was conducted iteratively. The judges had recent industry experience with the implementation and use of ERP software in a business environment. the panel of expert judges was asked to assign each item to one of the identified constructs. and cost goals. but not sufficient. as well as to assess potential problems with the unidimensionality of the constructs. Thus. Multi-item measures can reduce measurement error by providing a more robust construct of complex variables through averaging several individual items.application in the context of ERP implementation. which differs from the traditional Q-sort technique [20] in that there are no . Finally. together with a randomized list all of the items generated from the literature. There must also be clear definitions of goals. the first step in constructing new multi-item measurement scales is to generate sets of items that tap into the latent constructs and permit us to accurately and reliably assess these constructs from management’ perspectives [17]. Note that this sorting procedure follows the technique described in [19]. 4. 4. One of the goals of this research study is to create reliable and valid multi-item scales for measuring the 12 constructs described in Section 2. The challenge is to develop a set of items that capture the essence of the construct with the desired reliability and validity. time.

The questionnaire was sent through mail to the 500 organizations and 53 usable surveys were received making the response rate to be around 11%. [21] advocates this approach for new scale development. while 5 were classified under not all relevant to any of the critical success factors. It has 6 items. 2003 and comprised of 18 questions in eight sections. Prior to piloting the questionnaire. In addition. To assess the pretest scale reliability of the quantitative judgments made by the questionnaire respondents. According to [19] item placement ratio of 70% or greater is generally considered acceptable. for example. Manual sorting procedure [18] was conducted using industry experts experienced in ERP systems. scales based on a high degree of construct validity and also exhibit the potential to be reliable. in which respondents were asked to indicate their level of importance for each of the construct items (critical success factors) using their response on a seven point scale. Initial survey instrument was pilot tested during mid of 2003 and it was further refined to be ready after a pilot survey was undertaken. In table 1 (available from author) we present the final round item-placement ratios for the constructs using format. The Second International Conference on Innovation in Information Technology (IIT’05) 7 5. which provides additional insight into the performance of the proposed measurement scales. only 25 judge-items were classified as intended.December. The itemplacement ratio for Project Management thus equals 25/30 or 83%. we moved into the next phase of testing our survey instrument in a field setting. Each respondent company had implemented ERP system and the respondents had experience in either been involved in ERP implementation of their organization.Scale. For this phase. Let us examine. The questionnaire used in this study attempted to measure the theoretical model illustrated and discussed in section 2.restrictions on the number of items which may be placed in any of the defined construct categories. If there is a high degree of interjugde agreement. All of the constructs met or exceeded these criteria for the final sorting round. The item placement ratios assess both the validity of the generated items and the reliability of the proposed measurement scales. The final survey was sent out to the respondents in November . Data used to test the CSF instrument were obtained from 53 respondents from Australia. Each of the organizational aptitude and performance constructs is listed on the rows of the table. the mail survey was targeted at decision makers within the Australian Companies that have implemented Enterprise resource Planning system. The validity and reliability measure indicate that the instrument has the potential for use in further studies. then the percentage of items place in the target construct will also be high. Most of the items in this study were itemized using Likert. The measurement analysis emphasizes explanations of the reliability and validity of the new instruments for measuring these constructs. In this case. . [17] instrument development methodology was adopted to generate the pool of items for each construct. item placement ratios [19] measure was used as indicator to measure the observed proposition of agreement between judges that is greater than would be expected from chance. FIELD SURVEY Satisfied by the apparent reliability and parsimony of our new measurement scales. Items were drawn from the literature review and based on the interviews with executives and consultants involved in the implementation of Enterprise Resource Planning. so perfect item placement for this construct would be a score of 30 (6 items x 5 judges). the Project management construct.

85 Users training 5 . As shown in the table below that reliability of each factor is above . High correlations considered to indicate construct .75.2 Factor Analysis An exploratory factor analysis was conducted on the different measures to purify the instrument. and it is a necessary condition for scale validity. Items which were not factor ally pure were eliminated. Some items may be removed from the construct scales if their removal results in increases in the reliability estimate. It is the manner by which the questionnaire and its items are built to ensure the reasonableness of the claim of content validity. After the extraction no items are deleted but the project management items and risk management are loaded on one factor and leaving total of 11 factors with an Eigen value of greater than one. Eigen value and Cronbach Alpha value are presented in table 4 .89 Business Process Reengineering 5 . In table 2.86 Consultants involvement in ERP implementation 5 . 5. At this stage. The conceptualization of survey instrument constructs are based on preliminary literature review to form the initial items.75 Team Composition in ERP Implementation 5 .5.3 Content Validity The content validity of a questionnaire refers to the representative ness of item content domain.89 5. 5. care must be taken to ensure that the content validity of the measures is not threatened by the removal of a key conceptual element.88 Technological Infrastructure 5 . The data from 53 responses were examined using principal component method.89 Top Management Support in ERP implementation 5 .4 Construct Validity Analysis Construct validity is established by showing that the instrument measures the construct it is intended to measure. The Second International Conference on Innovation in Information Technology (IIT’05) 8 Table 2: Constructs (CSFs) items and reliability values Constructs Items Alpha Project Management 10 .84 Clear Goals of ERP implementation 5 . Factor loadings. the personal interviews with practitioners and experts used for scale purification suggest that the survey instrument has strong content validity.88 Change management 5 .1 Reliability Analysis Reliability is one of the most critical elements in assessing the quality of the construct measures [17].5 on each factor or above 0. Estimates greater than .10 in appendix (not included in the paper). A statistically reliable scale provides consistent and stable measures of a construct. Factor analysis was also used to identify underlying factors or the dimensional composition of instrument. Composite reliability estimates are used to assess the inter-item reliability of the measures. items with factor loading of less than 0. Construct validity is evaluated by performing correlation and factor analysis.5 on additional factors should be deleted to purify the measure.81 Users Involvement in ERP Implementation 5 .87 Communication in ERP Implementation 5 .70 are generally considered to meet the criteria for reliability. are listed the composite reliability estimates for each of the measurement scales. however.

1993.1-22. It is interesting to observe that the relative strength of the correlation between critical success factors constructs.. pp. Like any research. pp. 5-8. Based on the estimated correlations. top management involvement and user involvement. Issue 1. REFERENCES [1] Jeff Stratman and V Roth.77).73) and User involvement (. demonstrating the close relationship between business processes and team members in an ERP environment. [2] Rockart F. NY. “Reengineering the cooperation: a manifesto for business revolution”. with the exception of consultant’s involvement in the implementation process. Business process reengineering correlates most strongly with technological infrastructure (. change management. "Chief executives define their own data needs".73). While this may prove to be a limitation in some applications and some models. The use of random sampling in the final data analysis.“Beyond ERP Implementation: Critical Success Factors for North American Manufacturing Firms” Supply Chain & Logistics Journal. Project Management critical success factor is strongly correlated with the other success factors. 81-93. A second limitation is the fact that our experts manual sorting approach resulted in some scales having only three indicators. “Analysis of critical success factors relevance along SAP . 2002. J. Top management involvement is correlated highly with user involvement. our approach and our results have some limitations. [5] Esteves. “A taxonomy of players and activities across the ERP project life cycle”. Hammer and J. This may be due to the project management scale contains items such as effective partnership with ERP vendors avoids problems that would be expected to be success factor in the ERP implementation. 1989). and Pastor. business process reengineering. our study takes a grounded theory approach using ERP experts’ perceptions. the strongest relationship between the critical success factors project management. identification methods do exist that support their re-use in new models (Bollen. Harvard Business Review Issue 57. The Second International Conference on Innovation in Information Technology (IIT’05) 9 CONCLUSION The primary contributions of this paper are the definition of new constructs associated with the ERP implementation and the development of new multi-item measurement scales for measuring these constructs. however. Champy. Change management and ERP training to users are strongly correlated indicating the overarching nature of these success factors implementation project. the use of convenience samples in the pre. [3] M. A secondary contribution of this work is the demonstration of a rigorous empirical scale and item development process. Future ERP implementation empirical research linking these constructs in causal models in an ERP will benefit significantly from the existence of relevant construct definitions and good measurement scales. First. J. New York. Information & Management. Change management (. 1979. [4] Somers & Nelson. 2003. pp.and pilot-tests may have limited our insights early in the process. alleviated much of the concern regarding this issue.validity. Vol 5. Unlike much prior ERP implementation research.

Pinto. Issue 4. pp. 57–70. “Critical factors of successful implementation of enterprise systems”. 1996. J. Lau. 102. pp. Vol 17. Issue 3. L. IEEE. 2002. pp. 36th Hawaii International Conference on System Sciences. 2000. [13] Nah. pp. “ERP Implementation and Critical Success Factors.P. [11] Gupta (2000). “Managing entry-level IS professionals: using career oriented constructs". 165-170. [12] Davenport. “The project implementation profile: new tool for project managers”. Boston. “A paradigm for developing better measures of marketing constructs”. pp. pp. 7. Issue 4. Vol. 2001. Project Management Journal. Communications of the ACM.implementation phases”. F. J. Vol. Issue 4. Journal of Marketing Research. “Enterprise resource planning to emerging organizational value systems”. pp. Slevin. 167. 121 – 131.. 23-26. Business Process Management Journal. Industrial Management & Data Systems. 2001. “Enterprise resource planning (ERP) systems: a research agenda”. [17] Churchill. Issue 4. The Second International Conference on Innovation in Information Technology (IIT’05) 10 [14] D. 1995. Vol 43. 601626. No. Issue 2. “Enterprise Resource Planning (ERP) Competence Constructs: Two stage Multi-Item Scale Development and validation". Issue 3.K. 1998. Journal of Computer Information Systems. “Putting the enterprise into the enterprise system”. 2002. Vol 100. Harvard Business Review. [8] Al-Mashari. USA. Zhang Zee and Banerjee Probir “Critical Success Factors of Enterprise Resource Planning Systems Implementation Success in China”. . [6] Kumar K and Hillegersberg. 3. “Enterprise resource planning: Business needs and technologies”. pp 105-110. F. [15] Jiang. 2000. Decision Sciences. 64-73. [7] Zhang Liang. Issue 3. Singapore. 2002. 2000. Proceedings of The 2000 IEE International Conference on Management of Innovation and Technology. Industrial Management & Data System (100). The Role and Impact of Business Process Management”. and Kuang. 285296..Vol 16. pp 81–88. 1996.“ERP experiences and evolution”. [18] Menor. [16] Jeff Stratman and Roth.178. J. Vol 33. [10] Rao S. Industrial Management & Data Systems. 2000. pp. pp. Vol 76.114 -118. Massachusetts. [9] Yasser Jarrar. J. Proceedings of the 7th Americas Conference on Information Systems (AMCIS).. “An empirical investigation of new service development competence and performance”. M. Vol 36.

working paper. Journal of Operations Management. Zayed University PO Box 19282. Issue 2. Vol 2. R.R. “A review of OM studies using scale development techniques”. pp.343-358. 1953. “Development of an instrument to measure the perceptions of adopting an information technology innovation”. The ERP implementation literature contains many case studies of organizations that have implemented ERP systems successfully. Chicago.ae ABSTRACT Implementing an Enterprise Resource Planning (ERP) system project is a difficult and high cost proposition as it places tremendous demands on organization’s time and resources. 1999. pp. But there very few studies have scientifically developed and tested constructs that represent critical success factors of ERP implementation projects. 78. Kenan – Flager Business School. 1991. “The study of Behavior: Q-technique and its methodology”. [19] Moore. Information Systems research”.Bhatti@zu. the results suggest that a 65 item instrument that measures seven dimensions of ERP implementation is well - . Dubai. [21] Hensley. However.L. G.C. Based on a survey of 53 organizations in Australia. University of Chicago Press. Much has been written about implementation and the critical success factors for ERP implementation projects. 192 -272. 3 The Second International Conference on Innovation in Information Technology (IIT’05) 1 CRITICAL SUCCESS FACTORS FOR THE IMPLEMENTATION OF ENTERPRISE RESOURCE PLANNING (ERP): EMPIRICAL VALIDATION T. & Benbasat. United Arab Emirates Email: Tariq.ac. Vol 17. many organizations do not achieve success in their ERP implementation projects. Bhatti College of Business. [20] Stephenson. W. 1998. Issue 3.

. The organizations which have successfully implemented the ERP systems are reaping the benefits of having integrating working environment. We conducted a cross-disciplinary literature review encompassing BPR. constructs are defined and then a rigorous empirical scale development process in order to identify sets of survey items that exhibit satisfactory levels of reliability and validity. We follow two step processes. Not all ERP implementations have been successful. Change management. Section 4 describes and reports on The Second International Conference on Innovation in Information Technology (IIT’05) 2 results. we conclude with a discussion of the implications of our results and usage of the scales. There have been horror stories of ERP implementation and improper implementation has taken the companies to bankruptcy and in several cases organizations decided to abandon the ERP implementation projects. This research is an attempt to extend the ERP implementation research by defining the conceptual domains constructs and operational measures specific to ERP implementation critical success factors to advance ERP research. and offer some concluding thoughts. The questions many academicians and researchers have asked what are the reasons of success and failure of ERP implementations. Some of the reasons cited in the literature are lack of support of top management support. INTRODUCTION The business environment is changing dramatically and in order to stay competitive in the market. Majority of these studies have used case studies to conclude their findings and very few have used the empirical to study the ERP. Constructs development. It is argued that model proposed in the paper is valuable to researchers and practitioners interested in implementing Enterprise Resource Planning systems. because the constructs are latent variables. innovation diffusion. we apply a rigorous procedure for ensuring the psychometric adequacy of the resulting new multi-item measurement scales. we identify 12 constructs covering critical success factors for ERP implementation. and operations to develop a framework.validated. Keywords: ERP. Organizations within all departments and functions upgrade their capability to generate and communicate accurate and timely information. review the limitations of our study. In section 5. Section 2 presents a brief background of the research context and defines and illustrates the specific constructs for which new measurements scales are developed. organizations must improve their business practices and procedures. This process yielded the baseline model depicted and a set of initial measurement scales for twelve theoretically important critical success factors. resistance from employees. poor selection of ERP systems and vendor etc. strategic management. The third section provides details on the preliminary scale development methodology and field database. The objective of this paper is to develop an instrument for measuring ERP implementation critical success factors. MIS. Critical Success Factors 1. construct definitions. first. Second. Implementation. and item generation for this study. In the first section of this paper. standardized process and operational benefits to the organization.

we introduced an integrative. conceptual framework of what we call “integrated ERP implementation. The items listed in this section represent the scales as drawn from the practitioners. MODEL DEVELOPMENT Figure 1: Enterprise Resource Planning Systems implementation framework. each composed of a set of individual items.2. Figure 1 illustrates the conceptual model developed for this study. Drawing from multiple literature bases. Upon the completion of ERP implementation project. CONCEPTUAL DOMIANS OF CSFS FOR ERP IMPLEMENTATION Since the model constructs are latent variables. ERP Implementation Process Analysis Investiture Final Preparation Go Live Implementation Success Implementation CSFs Project Management Process redesign User training Technological infrastructure Change management. There are number of factors that affect the ERP implementation process are termed in this study as implementation critical success factors. Risk Management Top management support Communication Team work User involvement Use of consultant Clear goals and objectives Business Outcomes Project Outcomes The Second International Conference on Innovation in Information Technology (IIT’05) 3 3. and refined through an expert judge-based manual sorting process [1]. in which the ERP implementation project goes through different phases before it goes live. These scales were further refined (and some items were dropped) as a result of an empirical test of a survey instrument containing these initial . were needed to obtain indirect measures of each construct. This framework has been developed based on the project life cycle approach. performance is measured by a mix of project outcomes and the project and business outcomes (intended business performance improvement). multi-item scales. which cannot be measured directly.” which is comprised of a set of theoretically important constructs.

Training is not only using the new system.3 User training and education In ERP implementation process many projects fail in the end due to lack of proper training. 3. commits personnel to those activities. 3. The Second International Conference on Innovation in Information Technology (IIT’05) 4 . and promotes organizational support by organizing the implementation process. The formal project implementation plan defines project activities. CSFs can be understood as the few key areas where things must go right for the implementation to be successful.2 Business Process Reengineering Another important factor that is critical for the success of ERP implementation is the Business Process Reengineering. Critical success factors (CSF) are widely used in the information systems arena [2]. Past studies have identified a variety of CSFs for ERP implementation. contemporary measures of performance. which believed to be one of the important and beneficial results of the implementation of ERP system. It is defined by [3] as“the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical.1 Project Management Project Management involves the use of skills and knowledge in coordinating the scheduling and monitoring of defined activities to ensure that the stated objectives of implementation projects are achieved. The implementation of ERP requires examination of many business processes. Hardware selection is driven by the firm’s choice of an ERP software package. features of ERP system. but also in new processes and in understanding the integration within the system – how the work of one employee influences the work of others. Many researchers consider users training and education to be an important factor of the successful ERP implementation [4] [5] [6] [7] [8]. quality. such as cost. The main reason for education and training program for ERP implementation is to make the user comfortable with the system and increase the expertise and knowledge level of the people. This factor has been considered critical by the practitioners and as well as by the researchers.scales. service and speed”. 3. ERP related concept. Following are the commonly identified CSFs identified by several researchers and are pertinent for the success of ERP implementation project. The ERP software vendor generally certifies which hardware (and hardware configurations) must be used to run the ERP system. and hands on training are all important dimensions of training program for ERP implementation. hardware and networking are crucial for an ERP system’s success.4 Technological infrastructure [8] and [9]argued that adequate IT infrastructure. It is clear that ERP implementation involves a complex transition from legacy information systems and business processes to an integrated IT infra-structure and common business process throughout the organization. among which context related factors consistently appear. Organizations should be willing to change their businesses to fit the ERP software in order to minimize the degree of customization needed. 3.

It is understood that the risk of project failure is substantially reduced if the appropriate risk management strategy is followed. like that associated with a new big information system. [11] points out that the resistance to change is one of the main hurdles faced by most companies. Many ERP implementations fail to achieve expected benefits. gets the right results. and (2) providing the necessary resources.[13] propose the recurring improvisational change methodology as a useful technique for identifying. 3. It is imperative for success of implementation project starting at the initial phase and continuing throughout the entire life cycle. possibly because companies underestimate the efforts involved in change management. They must be willing to allow for a mindset change by accepting that a lot of learning has to be done at all levels. [14] define top management to provide the necessary resources and authority or power for project success. Change Management is important and one of the critical success factors identified in the literature.6 Management of Risk Every Information technology implementation project carries important elements of risk. an approval of the implementation and sharing information between . including themselves [10]. one of the main obstacles facing ERP implementation is resistance to change. It is essential for creating an understanding. at the right costs. managing. liabilities or vulnerabilities that may cause the project to deviate from the defined plan.7 Top Management Support Top management support has been consistently identified as the most important and crucial success factor in ERP system implementation projects [4]. To implement ERP system successfully. ERP implementation project risks are described as uncertainties. Risk management is the competence to handle unexpected crises and deviation from the plan [14]. Generally. 3. management should monitor the implementation progress and provide clear direction of the project. it can be very time consuming. risk management is to minimize the impact of unplanned incidents in the project by identifying and addressing potential risks before significant consequences occur.8 Effective Communication Communication is one of most challenging and difficult tasks in any ERP implementation project. The implementation of ERP system project is characterized as complex activity and involves a possibility of occurrence of unexpected events. 3. the way organizations do business will need to change and ways people do their jobs will need to change as well [12].5 Change management Change management is a primary concern of many organizations involved in ERP project implementation [4]. hence it is probable that progress will deviate from the plan at some point in the project life cycle. Therefore. and tracking changes in implementing an ERP system. It is considered a critical success factors for the implementation of ERP systems by many authors [5]. Top management support in ERP implementation has two main facets: (1) providing leadership. To implement an ERP systems successfully.3. in the right timeframe. [5] identify organizational change is the body of knowledge that is used to ensure that a complex change. Resistance can be destructive since it can create conflicts between actors.

hardware vendor. 3. According to a survey conducted by [6]. IT consultants. ERP vendor . it is critical success factor and has to be managed and monitored very carefully. It is also defined as the user’s participation in the implementation process. According to [16] survey. [4] revealed in their research on ERP implementation that consultants may be involved in different stages of the ERP project implementation.the project team and communicating to the whole organization the results and the goals in each implementation stage. or cross functional and comprise a mix of external consultants and internal staff so the internal staff can develop the necessary technical skills for design and ERP implementation. parent company employees. The functions of the ERP system rely on the user to use the system after going live. Further. There are two areas for user involvement when the company decides to implement an ERP system: (1) user involvement in the stage of definition of the company’s ERP system needs.12 Goals and Objectives Clear goals and objectives are essential to guide an ongoing organizational effort for ERP implementation as it usually exceeds the time frame for a typical business project.9 Team work and composition ERP team work and composition is important throughout the ERP implementation project. the communication will allow the implementation to initiate the necessary final acceptance. An ERP project involves all of the functional departments and demands the effort and cooperation of technical and business experts as well as end-users. The ERP team should be balanced. and (2) user participation the implementation of ERP systems. Many companies prefer or must have external consultants to perform ERP implementation. IT personnel and management. but the user is also a significant factor in the implementation. ERP implementation team comprises of.10 User Involvement User involvement refers to a psychological state of the individual and is defined as the importance and personal relevance of a system to a user. management consultants. The communication should start early in the ERP implementation project and can include overview of the system and the reason for implementing it be consistent and continuous. Clearly. It is important to set the goals of the project before even seeking top management support [14]. The “triple constraint” of project . The Second International Conference on Innovation in Information Technology (IIT’05) 5 3. Clear goals and objectives were the third most critical success factors in a study of MRP implementation. it requires the use of either internal or external experts who are knowledgeable about the installation and software. 3. functional personnel and management.11 Use of consultants Due to the complexity of implementing an ERP system. having competent members in the project team is the fourth most important success factor for IS implementation. the members of the project team(s) must be empowered to make quick decisions. In addition to gaining approval and user acceptance. 3. top management.

[17] recommends an iterative process consisting of several steps. The manual sorting procedures was conducted iteratively. the first step in constructing new multi-item measurement scales is to generate sets of items that tap into the latent constructs and permit us to accurately and reliably assess these constructs from management’ perspectives [17]. Some of the constructs involved in this research have been operationalized in previous studies and scales were available for these constructs. using independent panels of expert judges for each round. and cost goals. 4. Collecting data from an initial sample of respondents helps to address these issues. There must also be clear definitions of goals. a manual factor technique [18] was used to establish tentative scale reliability and validity. This purification step is designed to remove the potential for measurement error from the new construct to improve their reliability. SCALE DEVELOPMENT FOR CSFS OF ERP IMPLEMENTATION Scale development.2 Iterative item refinement To refine the scales. 4.application in the context of ERP implementation. or the design and re-finement of multi-item scales employed to measure the constructs are vital to empirical research in management information systems [16]. and deliverables. However.1 Item generation The construct brief discussion provided in Section 3 are necessary.management specifies three often competing and interrelated goals that need to be met: scope. Thus. time. . The content validity of these constructs was tentatively established by extensive literature reviews and interviews with managers and customers of technology-mediated services. The judges had recent industry experience with the implementation and use of ERP software in a business environment. Finally. we adapted [17] widely used methodology for instrument development. to advance our understanding of the critical success factors of ERP implementation. One of the goals of this research study is to create reliable and valid multi-item scales for measuring the 12 constructs described in Section 2. then the items were purified. none of the existing scales was exactly appropriate for re. as well as to assess potential problems with the unidimensionality of the constructs. The Second International Conference on Innovation in Information Technology (IIT’05) 6 4. but not sufficient. Multi-item measures can reduce measurement error by providing a more robust construct of complex variables through averaging several individual items. the organization must carefully define why the ERP system is being implemented and what critical business needs the system will address. Specifically. This method recognizes that the complexity inherent in many business processes cannot be adequately measured by a single scale. After the initial item pool was generated. The challenge is to develop a set of items that capture the essence of the construct with the desired reliability and validity. expectations. Establishing the validity of the scales is dependent first upon establishing that they are reliable measures [17].

[17] instrument development methodology was adopted to generate the pool of items for each construct. while 5 were classified under not all relevant to any of the critical success factors. Items were drawn from the literature review and based on the interviews with executives and consultants involved in the implementation of Enterprise Resource Planning. Items that were not consistently grouped into their target construct during this process were considered for rewording or elimination. the panel of expert judges was asked to assign each item to one of the identified constructs. Note that this sorting procedure follows the technique described in [19]. so perfect item placement for this construct would be a score of 30 (6 items x 5 judges). FIELD SURVEY Satisfied by the apparent reliability and parsimony of our new measurement scales. The questionnaire used in this study attempted to measure the theoretical model illustrated and discussed in section 2. If there is a high degree of interjugde agreement.Each expert judge was given a questionnaire containing short descriptions of each of the proposed constructs. [21] advocates this approach for new scale development. In each round. All of the constructs met or exceeded these criteria for the final sorting round. scales based on a high degree of construct validity and also exhibit the potential to be reliable. In addition. which provides additional insight into the performance of the proposed measurement scales. The itemplacement ratio for Project Management thus equals 25/30 or 83%. item placement ratios [19] measure was used as indicator to measure the observed proposition of agreement between judges that is greater than would be expected from chance. Prior to piloting the questionnaire. The final survey was sent out to the respondents in November . the mail survey was targeted at decision makers within the Australian Companies that have implemented Enterprise resource Planning system. Let us examine. we moved into the next phase of testing our survey instrument in a field setting. The item placement ratios assess both the validity of the generated items and the reliability of the proposed measurement scales.December. For this phase. It has 6 items. Each of the organizational aptitude and performance constructs is listed on the rows of the table. 2003 and comprised of 18 questions in . for example. Manual sorting procedure [18] was conducted using industry experts experienced in ERP systems. which differs from the traditional Q-sort technique [20] in that there are no restrictions on the number of items which may be placed in any of the defined construct categories. According to [19] item placement ratio of 70% or greater is generally considered acceptable. Initial survey instrument was pilot tested during mid of 2003 and it was further refined to be ready after a pilot survey was undertaken. only 25 judge-items were classified as intended. To assess the pretest scale reliability of the quantitative judgments made by the questionnaire respondents. then the percentage of items place in the target construct will also be high. The Second International Conference on Innovation in Information Technology (IIT’05) 7 5. In table 1 (available from author) we present the final round item-placement ratios for the constructs using [19] format. together with a randomized list all of the items generated from the literature. the Project management construct. In this case.

75.eight sections.88 Technological Infrastructure 5 . The data from 53 responses were examined using principal component method. The measurement analysis emphasizes explanations of the reliability and validity of the new instruments for measuring these constructs.85 Users training 5 . Each respondent company had implemented ERP system and the respondents had experience in either been involved in ERP implementation of their organization. care must be taken to ensure that the content validity of the measures is not threatened by the removal of a key conceptual element. Some items may be removed from the construct scales if their removal results in increases in the reliability estimate. Eigen value and Cronbach Alpha value are presented in table 4 • 10 in appendix (not included in the paper). In table 2. and it is a necessary condition for scale validity.70 are generally considered to meet the criteria for reliability. A statistically reliable scale provides consistent and stable measures of a construct. At this stage. Composite reliability estimates are used to assess the inter-item reliability of the measures.88 Change management 5 .89 Top Management Support in ERP implementation 5 . The Second International Conference on Innovation in Information Technology (IIT’05) 8 Table 2: Constructs (CSFs) items and reliability values Constructs Items Alpha Project Management 10 .2 Factor Analysis An exploratory factor analysis was conducted on the different measures to purify the instrument.Scale. Estimates greater than . Items which were not factor ally pure were eliminated. 5. The questionnaire was sent through mail to the 500 organizations and 53 usable surveys were received making the response rate to be around 11%.75 . Most of the items in this study were itemized using Likert.87 Communication in ERP Implementation 5 .89 Business Process Reengineering 5 . The validity and reliability measure indicate that the instrument has the potential for use in further studies.5 on additional factors should be deleted to purify the measure. After the extraction no items are deleted but the project management items and risk management are loaded on one factor and leaving total of 11 factors with an Eigen value of greater than one. are listed the composite reliability estimates for each of the measurement scales.5 on each factor or above 0. As shown in the table below that reliability of each factor is above . Data used to test the CSF instrument were obtained from 53 respondents from Australia. items with factor loading of less than 0. Factor analysis was also used to identify underlying factors or the dimensional composition of instrument. Factor loadings. 5. however.1 Reliability Analysis Reliability is one of the most critical elements in assessing the quality of the construct measures [17]. in which respondents were asked to indicate their level of importance for each of the construct items (critical success factors) using their response on a seven point scale.

business process reengineering.4 Construct Validity Analysis Construct validity is established by showing that the instrument measures the construct it is intended to measure. It is the manner by which the questionnaire and its items are built to ensure the reasonableness of the claim of content validity. change management.86 Consultants involvement in ERP implementation 5 . The Second International Conference on Innovation in Information Technology (IIT’05) 9 CONCLUSION The primary contributions of this paper are the definition of new constructs associated with the ERP implementation and the development of new multi-item measurement scales for measuring these constructs. Top management involvement is correlated highly with user involvement.Team Composition in ERP Implementation 5 .73) and User involvement (.84 Clear Goals of ERP implementation 5 . A secondary contribution of this work is the demonstration of a rigorous empirical scale and item development process.89 5. 5. with the exception of consultant’s involvement in the implementation process. the use of convenience samples in the pre. Change management (.81 Users Involvement in ERP Implementation 5 . Like any research. Based on the estimated correlations. our study takes a grounded theory approach using ERP experts’ perceptions. our approach and our results have some limitations. Project Management critical success factor is strongly correlated with the other success factors. Future ERP implementation empirical research linking these constructs in causal models in an ERP will benefit significantly from the existence of relevant construct definitions and good measurement scales. Change management and ERP training to users are strongly correlated indicating the overarching nature of these success factors implementation project. the strongest relationship between the critical success factors project management. Construct validity is evaluated by performing correlation and factor analysis. High correlations considered to indicate construct validity.and pilot-tests may have limited our insights early in the process.73). The use of random sampling in the final data analysis. A second limitation is the fact that our experts manual sorting approach resulted in some scales having only three indicators. It is interesting to observe that the relative strength of the correlation between critical success factors constructs.77). the personal interviews with practitioners and experts used for scale purification suggest that the survey instrument has strong content validity. alleviated much of the concern regarding this issue. Unlike much prior ERP implementation research. however.3 Content Validity The content validity of a questionnaire refers to the representative ness of item content domain. The conceptualization of survey instrument constructs are based on preliminary literature review to form the initial items. First. While this may prove to be a limitation in some applications and some . Business process reengineering correlates most strongly with technological infrastructure (. demonstrating the close relationship between business processes and team members in an ERP environment. top management involvement and user involvement. This may be due to the project management scale contains items such as effective partnership with ERP vendors avoids problems that would be expected to be success factor in the ERP implementation.

Boston. [3] M. Information & Management. [5] Esteves. Issue 1. 2000. [8] Al-Mashari.1-22. 102. Vol 43. 2003. “Reengineering the cooperation: a manifesto for business revolution”.. pp 81–88. Massachusetts. 165-170. Vol 5. Vol. pp. NY.“Beyond ERP Implementation: Critical Success Factors for North American Manufacturing Firms” Supply Chain & Logistics Journal. 2002. [2] Rockart F. Proceedings of The 2000 IEE International Conference on Management of Innovation and Technology. [4] Somers & Nelson. New York. Industrial Management & Data Systems. 167. Communications of the ACM. 1979. 5-8. REFERENCES [1] Jeff Stratman and V Roth. pp. “Enterprise resource planning (ERP) systems: a research agenda”. and Pastor. Issue 4. 23-26. 1989). 2002. J.178. 2000.models. J. IEEE. Zhang Zee and Banerjee Probir “Critical Success Factors of Enterprise Resource Planning Systems Implementation Success in China”. [10] Rao S. identification methods do exist that support their re-use in new models (Bollen. 36th Hawaii International Conference on System Sciences. Harvard Business Review Issue 57. “A taxonomy of players and activities across the ERP project life cycle”. Singapore. pp. USA. Issue 2. 81-93. “Analysis of critical success factors relevance along SAP implementation phases”. “Enterprise resource planning: Business needs and technologies”. pp. 1993. Industrial Management & Data Systems. J. Champy. 2002. “ERP Implementation and Critical Success Factors. “Chief executives define their own data needs”. Proceedings of the 7th Americas Conference on Information Systems (AMCIS). pp. 2001.. 3. Hammer and J. The Role and Impact of Business Process Management”.. 2000. Vol 100. pp. . [7] Zhang Liang. M. No. [9] Yasser Jarrar. [6] Kumar K and Hillegersberg.“ERP experiences and evolution”.

K. [15] Jiang. The Second International Conference on Innovation in Information Technology (IIT’05) 10 [14] D. 285296. Vol. pp. Kenan – Flager Business School. [19] Moore. Issue 4. 78. 1995. pp. & Benbasat. Issue 3. 2000. Issue 4. 2002. [18] Menor. “The study of Behavior: Q-technique and its methodology”. Pinto. 192 -272. Issue 4. Chicago. [12] Davenport.P. J. 1996. 1998. Journal of Marketing Research. “Development of an instrument to measure the perceptions of adopting an information technology innovation”. University of Chicago Press. “Enterprise resource planning to emerging organizational value systems”. pp. 1953. Information Systems research”. 7. 601626. “The project implementation profile: new tool for project managers”. Business Process Management Journal.Vol 16. [16] Jeff Stratman and Roth. working paper. pp 105-110. “Managing entry-level IS professionals: using career oriented constructs”. “An empirical investigation of new service development competence and performance”. Decision Sciences. Industrial Management & Data System (100). Vol 76. “A paradigm for developing better measures of marketing constructs”. “Putting the enterprise into the enterprise system”. J. [20] Stephenson. W. pp. Vol 17. 1996. Vol 33. F. pp. “Critical factors of successful implementation of enterprise systems”. pp. [17] Churchill. and Kuang. L.114 -118. 64-73.. Journal of Computer Information Systems. G. Issue 2. Issue 3. Project Management Journal. . Lau. Vol 36. 1991. Slevin. F. 57–70. 121 – 131. [13] Nah. 2001. 1998. “Enterprise Resource Planning (ERP) Competence Constructs: Two stage Multi-Item Scale Development and validation”. Vol 2. Issue 3.[11] Gupta (2000). pp.C. J. Harvard Business Review.

These software packages can be customized up to a certain limit to the specific needs of each organization. many ERP projects have not been effective enough and hence have been unable to achieve all the results envisaged. Several results have already been produced out of our research project. Enterprise Resource Planning (ERP) systems are software packages composed of several modules. 22222 Definition and Analysis of Critical Success Factors for ERP Implementation Projects Abstract: ERP is one the latest technologies that many organizations have undertaken. we have studied and have proposed results along the following issues: • • • • The identification and definition of a comprehensive list of CSF. In order to accomplish the research aims of this research. Issue 3. A theoretical framework was developed in order to aid the process of answering the implied research questions. pp. ERP was characterized as the most important development in the corporate use of technology in the 1990s. finance and production. As the cost of an ERP implementation project is very high. such as human resources.343-358. 1999. both quantitative and qualitative.[21] Hensley. But what is it that makes an ERP implementation project successful? To address this issue we propose the use of a Critical Success Factors (CSF) approach to manage ERP implementation projects. sales. Typically. The analysis of CSF management in some organizational contexts. with predominance of qualitative ones. Vol 17.L. The definition of Key Performance Indicators (KPI) for CSF. After an extensive literature review on ERP research and ERP implementation project studies. “A review of OM studies using scale development techniques”. providing crossorganizational integration of transaction-based data management throughout embedded business processes support. we have proposed an interpretive research approach and a “multimethod” research framework that combines various research methods. R. it is critical for an organization to make the project a success and start obtaining benefits out of it as fast as possible. Unfortunately. The relevance of CSF along the typical ERP implementation phases. with our chosen theoretical and research framework: . Journal of Ope rations Management.

The management of CSF is influenced by the context and. and the organization is more likely to use more effectively the ERP system after its implementation. The main concerns are organizational rather than technological. . some of project problems have been avoided or their impact significantly reduced in ERP implementation projects. When managers have taken into account the CSF identified. the first was a pilot case study of an ERP implementation in a Portuguese small and midsized enterprise. The different organizational contexts provided valuable insights in CSF management as well as implications from the emergence of patterns of communality between both case studies. • It is hoped that future ERP research and ERP implementations can draw upon and learn from this thesis. A tentative set of KPI for some CSF and a systematic approach to develop the rest of KPI. The research results evidence that: • • • • Most of the problems that arise in ERP implementation projects are associated with the activities identified as CSF in this research. The second one was an indepth case study of an ERP implementation in a big Spanish public higher education institution. A new criticality indicator for Process Quality management (PQM) method. A CSF relevance schema along the typical ERP implementation phases. With regard to the case studies conducted. A CSF approach is also helpful to avoid problems on the long term since most of the CSF identified are strategic. A CSF management analysis in two organizational contexts: a small and midsized enterprise and a public higher education institution. A CSF unified model for ERP implementation projects.• • • • • • • An annotated bibliography on ERP research. An ERP implementation model.

Some Results: Strategic Tactical .Formalized testing plan Technological .Preventive trouble shooting .Avoid ERP customization .Adequate data migration process .Adequate Infrastructure and interfaces .Trust between partners .Empowered decision-makers .Strong communication inwards and management outwards .Adequate ERP version Fig. A Critical Success Factors Unified Model for ERP Implementations.Comprehensive business process redesign . 2.Dedicated staff and consultants .Sustained management support .User involvement and participation . 1. .Formalized project plan/schedule .Effective organizational change .Fig.Adequate project sponsor role .Adequate project team composition .Adequate project manager role . Research Diagram.Good project scope management .Appropriate usage of consultants .Adequate ERP implementation strategy -Adequate legacy systems knowledge .Adequate training program Organizational .

Most relevant CSFs along ERP implementation phases. 3.Fig. . Critical Success Factors Relevance Along SAP Implementation Phases(ICEIS 2001. Figure . AMCIS 2001).

4 .ASAP Work Packages Criticality Analysis Along ASAP Phases (ICEIS 2002 conference paper).Fig. . Fig 5. project manager and ERP project success (ECIS 2002). Relationship between ERP project sponsor.

Fig.An ERP training monitoring and evaluation framework (ECITE 2002). 6 .BPR concerns in the ERP context (AMCIS 2002). 7 .Fig. .

8 . .Fig.A framework to evaluate and monitor training in ERP projects.

it doesn’t work for you. I have seen companies employing multiple vendors to avoid vendor lock in. The key users should be from entire cross section of the end user. I have seen multiple occasions where customers aren’t sure of what to expect while implementing an ERP system. You should involve key end users right from the scratch. Also the following are the other salient points that your should consider • Does the ERP package has a fitment to your industry vertical? • How easy is it to install access and maintain the infrastructure for this package • What is the level of customization that you foresee in the package to make it suit your business process The above questions will drill into whether the package is a fitment for you and brings you value add by suggesting you a best practices. People: You may have the best ERP package and the best solution. Recently. In many occasions client interview the key stakeholders from the vendor to be sure of the depth of understanding of technology and business domain. In some other instance.2 I have seen multiple ERP implementations each with varying degree of success. Infrastructure: Since your end users may be geographically separate you must ensure that the system behaves as expected across locations and across . the customers Technology Select the right technology and ERP package for yourself. These end users are often expected to drive their respective departments to use the solution and resolve small and non issues without having to resort to vendor for support. This is critical as the entire program is dependent on the choice that you make at this stage. but until and unless you have the right person to use it. Vendor Selection: Selecting a vendor with enough expertise is a key to success.

such as improved communication and increased return on information (as people will work with the same information). implemented SAP R/3 over 10 years is available. norms. This study shows that designing IT architecture is very critical in SAP implementation practices. lesser best business practices you inherit from the package. Robert Bosch GmbH. 3 The implementation of SAP software. business users give requirement without thoroughly spending time on it.business functions. and behaviors within an organization that support new ways of doing work and overcome resistance to change. On many occasion. The data table below provides a summary of all the concepts addressed in the processdata diagram. (2) building consensus . such as SAP R/3 is almost always a massive operation that brings a lot of changes in the organization. attitudes. Another key rule is that more you customize the solution. So customize only if you think it is worth it. It is therefore very important that the implementation process is planned and executed with the usage of a solid method. The resulting changes that the implementation of SAP generates are intended to reach high level goals. In majority of cases you would end up exceeding it until and unless you have a stringent PMO (project management office) and rigorous change control process. The whole process can take up to several years. The change in requirement after realization of the feature leads to enhanced time and effort from the vendor and hence increased cost. For this you must ensure that your server and network is properly sized vis-à-vis the number of users and their expected data bandwidth. Concept CHANGE MANAGEMENT Definition ***Activities involved in (1) defining and installing new values. There are various SAP implementation methods. Usually you would do a rigorous performance test to ensure the system response when multiple users login to the system and do transactions. Virtually every person in the organization is involved. whether they are part of the SAP technical support organization (TSO) or the actual end-users of the SAP software. Project Financials and Change Control: You would have set up a budget for your ERP program. An example of how one company.

2003) The process of transitioning from one system to a new one CUTOVER (Anderson. (www. 2003) Determination of where and when the costs are inquired COST OF OWNERSHIP within the context of the SAP solution stack and ongoing ANALYSIS operations.g. SAP requires and the various tools and approaches used to manage change by the TSO. (Anderson. 2003) SAP AG is the name of the biggest European software company.gao. (Anderson. (Anderson. preparing the TSO for its new role and rolling out the SAP graphical user interface to all future end users. The head office is in Walldorf. (www. dayOPERATIONS to-day and other regularly scheduled operations tasks. Germany. a REQUIREMENT network infrastructure requirement or a requirement to the network server.org) Requirements that describes the amount of time that the HIGH AVAILABILITY system needs to be available to satisfy the needs of the (HA) REQUIREMENT users. e. 2003) A set of conditions or variables under which a tester will FUNCTIONAL TEST determine if a certain business process works CASE (www.wikipedia. MANUAL various installation and operations checklists and how-to process documents. i. SAP was founded in 1972 as Systemanalyse and SAP Programmentwicklung ("Systems Analysis and Product") by five former IBM employees in Mannheim. The analysis addresses all internal and external costs. a physical DATA CENTER requirement like power requirements. preparing and executing cutover.gov) All documentation that is required and being delivered CHANGE whilst performing change management. typically computers and communications equipment.wikipedia. and implementing all aspects of the transition from one organizational structure or business process to another. and (3) planning.e.among customers and stakeholders on specific changes designed to better meet their needs. (www. Germany. 2003) A data center is a facility used for housing a large amount DATA CENTER of electronic equipment. (Anderson. 2004) All documentation related to planning.org) A requirement for the SAP data center. both one-time as well as recurring (Anderson. testing.org) SAP A comprehensive project plan that contains all products that . 2003) DISASTER RECOVERY Requirement that focuses on downtime that lasts many (DR) REQUIREMENT hours to days or even weeks (Anderson. describing how to lock down the system CUTOVER PLAN from a technical change management perspective.wikipedia. 2003) The collection of current state system documentation. a rack requirement. the functional MANAGEMENT test cases and all the other documents a new end-user of DOCUMENTATION. (Anderson. 2003) INSTALLATION All documentation related to the installation of an end-toDOCUMENTATION end SAP solution (Anderson.

in how much time the test will take place.g. e. and to what quality level the test will be performed.IMPLEMENTATION PROJECT PLAN SOLUTION STACK SOLUTION STACK PARTNERS LIST SOLUTION VISION STRESS TEST PLAN TEST PLAN TRAINING TRAINING PLAN TSO TSO CHART are delivered whilst performing an SAP implementation project (Anderson.ece. tailored according to the learning preferences and prior knowledge of the trainee. to sketch a design that meets both business and financial requirements. Some of the guidance and key requirements for how to put together an ERP and SAP business case for ROI.uk/) Technical Support Organization. a training plan is the result of hierarchical decompositions of a training goal. business benefit. in order to observe the results. The focus should be on the company’s core business and how the SAP solution will better enable that core business to be successful. 2003) A test plan that is focused at determining the stability of a given system or entity. (Anderson. 2003) [edit] Activity table The following table provides a summary of all of the activities that form the SAP implementation process. A plan is the means by which the trainee satisfies the goal. 2003) A chart that depicts the structure of the TSO. Activity Project preparation Sub-Activity Description Craft solution Refine and communicate a SOLUTION VISION of vision the future-state of the SAP solution. 2003) A vision of the future-state of the SAP solution (Anderson. and how . 2003) Set of software subsystems or components needed to deliver a fully functional solution. (www. who will do the testing.wikipedia. skills.wikipedia. (Anderson. what will be tested. It involves testing beyond normal operational capacity. (IEEE 829) The acquisition of knowledge. and success includes focusing on competitive pressures.ac. The people that are committed to implementation and management of SAP.org) Consisting of training units. value propositions.org) A detail of how the test will proceed. These activities will be described with more detail and elaborated with examples in the rest of this entry.hw. and attitudes as a result of the teaching of vocational or practical skills and knowledge that relates to specific useful skills (www.org) A list of all vendors that deliver the products that make up the SAP solution stack (Anderson. (www.eps. often to a breaking point. a product or service.wikipedia. (www.

based on a side-byvendors side sizing comparison Staff the bulk of the TSO. Identify high Determine all HIGH AVAILABILITY and availability and DISASTER RECOVERY REQUIREMENTS. Design and staff the key positions of the SAP Design and Technical Support Organization (TSO). functional tests to ensure that business processes integration and work.e. roles Round out that relate to help desk work and other such support support for SAP providing work. Perform a COST OF OWNERSHIP ANALYSIS to Perform cost of determine how to get the best business solution for ownership the least money i. like data center specialists.the solution enables success. The objective is to maximize the Address Change development collective efforts of all people involved in the change Management and minimize the risk of failure of implementing the changes related to the SAP implementation. i.e. implementing and supporting the SAP solution. Identify and staff the remaining TSO roles. SAP TSO designing. by creating a SAP operations OPERATIONS MANUAL and by evaluating SAP management management applications. to determine where and when the analysis costs are incurred within the context of the SAP solution stack. Train the various members of the SAP TSO. SAP Develop a planned approach to the changes in the functional organization. fill the positions that directly support the near-term objectives of the Sizing and Staff TSO implementation. high availability specialist and Execute training network specialists and train the end-users to give all the required SAP knowledge and skills Build a new SAP DATA CENTER facility or Setup SAP transform the current data center into a foundation DATA CENTER capable of supporting the SAP SOLUTION STACK Install the (My)SAP components and technological Perform foundations like a web application server or installations enterprise portal. e. integration tests to ensure that the regression tests organization’s business processes work together with . to plan disaster recovery what to do with later downtime of the SAP system requirements Select the best SAP hardware and software Engage SAP technology partners for all layers and components of solution stack the SAP SOLUTION STACK. Address SAP Create a foundation for the SAP systems management systems and and SAP computer operations.g. by executing functional. Perform Test the SAP business processes. the initially staff the organization that is charged with addressing. which are to develop and begin blueprinting installation/implementation of the SAP data center.

This can be programmers.g. e. Design and initially staff the SAP TSO The first major step of the project preparation phase is to design and initially staff an SAP technical support organization (TSO). this is the time to make decisions about choosing for internal staff members or external consultants. which is the organization that is charged with addressing. script. . Next to that. prepare and execute the CUTOVER. to make a setup for the TSO and to define a solution vision. i. and stress tests defined in service level agreements. These activities allow an organization to put in on the right track towards implementation. implementing and supporting the SAP solution. by Prepare for creating a CUTOVER PLAN that describes all cutover cutover tasks that have to be performed before the actual go-live Turn on the SAP system for the end-users [edit] Implementation processes [edit] Project preparation The project preparation phase.e. designing. manageability and scalability of the SAP system. execute and monitor SAP STRESS Perform systems TESTS. The main focus within the vision should be on the company’s core business and how the SAP solution will better enable that core business to be successful. etc. project management. i. focuses at two main activities.Final Preparation Go Live other business processes and regression tests to prove that a specific set of data and processes yield consistent and repeatable results. the shortcomings of the current systems should be described and short but clear requirements should be provided regarding availability (uptime). the focus should be at staffing the key positions of the TSO. At this point. depicted below. database administrators. test teams. Craft solution vision The second project preparation job is to define a so-called solution vision. The phase is illustrated below.e. will be met. Next to that. the high-level project team and SAP professionals like the senior database administrator and the solution architect. Plan. [edit] Sizing and blueprinting The next phase is often referred to as the sizing and blueprinting phase and forms the main chunk of the implementation process. Plan. to see if the expectations of the end users. where it is important to address both business and financial requirements (budgets). The image at the right shows a typical TSO chart. security. a vision of the future-state of the SAP solution.

At this point the organization should staff the bulk of the TSO. Training . A simplified solution stack is depicted at the right. The most important factors that are of influence here are the estimated numbers of (concurrent) users and batch sizes. it can be wise just to do a so-called delta analysis. fill the positions that directly support the near-term objectives of the implementation. Next to that. there should be taken a look at recurring costs like maintenance costs and downtime costs. Engage SAP solution stack vendors A true sizing process is to engage the SAP solution stack vendors. showing the many layers for which software and hardware has to be acquired. A wise thing to do is to involve SAP AG itself to let them create a sizing proposal stating the advised solution stack. based on a side-by-side sizing comparison. application failures or power outages. i. caused by e. security specialists and database administration experts. network infrastructure experts. HP and IBM.Perform cost of ownership analysis This phase starts with performing a total cost of ownership analysis (TCO analysis) to determine how to get the best business solution at the lowest costs. Staff TSO The TSO is the most important resource for an organization that is implementing SAP. which form the acquisition costs. This means to compare SAP solution stack options and alternatives and then determine what costs each part of the stack will bring and when these costs will be incurred. Note the overlap with the OSI model. operating system and database. There are many ways to find the right people within or outside the organization for all of the TSO positions and it depends on the organization how much time it wants to spend on staffing. like Accenture. Examples are: data center experts. where only the differences between solutions (stacks) are identified and analyzed. This means selecting the best SAP hardware and software technology partners for all layers and components of the solution stack. Identify high availability and disaster recovery requirements The next step is identifying the high availability requirements and the more serious disaster recovery requirements. hardware failures. so staffing the TSO is a vital job which can consume a lot of time. which are to develop and begin the installation/implementation of the SAP data center. before moving to SAP’s technology partners/SAP vendors. which is the next step. the organization should already have staffed the most vital positions. It should be noted that it is very important to calculate the cost of downtime. In a previous phase. The image at the right depicts the essence of a delta analysis. Parts of the stack are for example the hardware. Instead of performing a complete TCO analysis for various solution stack alternatives that would like to compare.g. This is to plan what to do with later downtime of the SAP system.e. so that an organization has a good idea of its actual availability requirements.

give a good idea of the required data center requirements to host the SAP software.e. all of the technology layers and components (SAP software products) in a productive SAP installation.One of the most vital stages of the implementation process is training. by defining the height of expertise with a number between e. Examples of SAP components are: • • • • • R/3 Enterprise — Transaction Processing mySAP BI — Business Information Warehouse mySAP CRM — Customer Relationship Management mySAP KW — Knowledge Warehouse mySAP PLM — Product Lifecycle Management . Very few people within an organization are SAP experts or even have worked with SAP software. a company can make use of a skillset matrix. Here it is very important to use installation guides. Some examples of these positions: • • • • • SAP Network Specialists SAP Database Administrators SAP Security specialists Documentation specialists Et cetera All of these people need to acquire the required SAP knowledge and skills or even SAP certifications through training. prepare the database server and then start installing SAP software. to a state ready for business process configuration. The most important factor when designing the data center is availability. which are published for each SAP component or technology solution by SAP AG. The high availability and disaster recovery requirements which should have been defined earlier. Setup SAP data center The next step is to set up the SAP data center. to manage and plan training. With this matrix. a manager can identify who possesses what knowledge.g. 1 and 4 for each skill for each employee. The most vital sub steps are to prepare your OS. people need to learn to do business in a totally new way. Perform installations The following step is to install the required SAP software parts which are called components and technological foundations like a web application server or enterprise portals. Moreover. i. To define how much SAP training every person needs. Data center requirements can be a: • • • • Physical requirement like power requirements Rack requirement Network infrastructure requirement or Requirement to the network server. It is therefore very important to train the end users but especially the SAP TSO: the people who design and implement the solution. Many people within the TSO need all kinds of training. This means either building a new data center facility or transforming the current data center into a foundation capable of supporting the SAP solution stack.

Address change management The next challenge for an organization is all about change management / change control. i. where it is all about change management and testing. This team should be prepared to handle the many change issues that come from various sources like: • • • • • End-user requests Operations Data center team DBA group Systems management SAP systems and operations management Next thing is to create a foundation for the SAP systems management and SAP computer operations.e. which means to develop a planned approach to the changes the organization faces. since there is often a . The implementation of SAP software will most surely come with many changes and an organization can expect many natural reactions. Before going live with a SAP system. e. To fight this. the organization should identify and staff the remaining TSO roles. roles that relate to helpdesk work and other such support providing work.• • • • mySAP SCM — Supply Chain Management mySAP SEM — Strategic Enterprise Management mySAP SRM — Supplier Relationship Management mySAP HCM — Human Capital Management Round out support for SAP Before moving into the functional development phase. various installation and operations checklists and how-to process documents.g. This phase is depicted below. to these changes. day-to-day and other regularly scheduled operations tasks. Functional. integration and regression testing Testing is very important before going live with any system. it is vital to do many different kinds of testing. it is most important to create a solid project team dedicated to change management and to communicate the solution vision and goals of this team. denial. The objective here is to maximize the collective efforts of all people involved in the change and to minimize the risk of failure of implementing the changes related to the SAP implementation. [edit] Functional development The next phase is the functional development phase. by creating a SAP operations manual and by evaluating SAP management applications. The manual is a collection of current state system documentation.

Again. It is also the moment where product software adoption comes into play.e. prepare and execute the cutover. More information on this topic: • • • Product Software Adoption: Big Bang Adoption Product Software Adoption: Parallel Adoption Product Software Adoption: Phased Adoption [edit] Critical success factors In order to successfully implement SAP in an organization. a test plan should be created at first. there are several things that are of great importance: . Examples of cutover tasks are: • • • • Review and update all systems-related operations procedures like backup policies and system monitoring Assign ownership of SAP’s functional processes to individuals Let SAP AG do a GoingLive check.e. [edit] Final preparation agreements. will be met. by creating a cutover plan that describes all cutover tasks that have to be performed before the actual go-live. Important types of testing are: • • • Functional testing: to test using functional use cases. to benchmark the organization’s configurations against configurations that have been tested by SAP’s hardware technology partners. complex infrastructure of hardware and software involved. The organization needs to plan. This can be done with SAP’s standard application benchmarks. do not make any more changes to the SAP system [edit] Go live All of the previously described phases all lead towards this final moment: the go-live. to get their blessing to go live with the system Lock down the system. Both requirements as well as quality parameters are to be tested.large. i. i. a set of conditions or variables under which a tester will determine if a certain business process works Integration testing Regression testing All tests should be preceded by creating solid test plans. Prepare for cutover The final phase before going live with SAP is often referred to as the cutover phase. which is the process of transitioning from one system to a new one. Go-live means to turn on the SAP system for the end-users and to obtain feedback on the solution and to monitor the solution.

A blueprint should never be a merely mapping of IT systems. An SAP Consultant is a professional who has the skills to speak to the managers of a company and help them creating the blueprint. So it is very important to get the support from all the people that are involved in implementing SAP. of the company. 4) Always consider changing the way things have been done before implementing SAP. 6) Design and execute a Change Management Program by communicating as early as needed all the information that end users should have to accept the new technology and designing and executing a training plan in order to reassure a knowledge base within the organization.. For this the SAP Consultant has the business skills of the business area he/she is working with. and to ensure that the end-users are ready to use SAP before going live. Also this person knows SAP FI because has gained by the corresponding training.. gained through experience or by the corresponding studies at the University. but more important the participation and commitment of all levels. in fact is an Organization Project impacting all levels of a company. For example. "This has always been done like this and the Consultant should replicate it on SAP" is the start of a big problem. specially managers. 2) SAP R/3 implementation is not an IT project. because there are many known projects that failed because of a lack of support and SAP knowledge. Just remember. Many projects have failed because the focus was on having people with SAP knowledge. . SAP many times could save you time and money as it allows your organization to automate many processes. and a manual error automated could be repeated infinitely. if this is SAP FI (accountancy) Consultant. or the course on the SAP Partner Academy or similar. 3) The Blueprint is the keystone used as the lighthouse who must guide the whole project. 5) Test the SAP hardware and software rigorously by testing your business processes. but with no business skills and so defining something that works.wrongly.1) Choose the correct SAP Consultants to have the correct blueprint. In fact a blueprint is bringing the strategy of a company into execution through defining its processes across all business areas. Benefits: As this person knows about Accountancy he or she will understand the needs of the business and will bring it into reality. this person is an expert on accountancy and payments. and also masters this area on SAP. processes must change across time.

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