Critical Success Factors (CSFs): A Framework for Successful ERP Project Implementation KRISHNAN, Satish

Agenda Introduction (ERP & CSF) CSFs of ERP Implementation Research Gap Research Methodology & Process Case Description Case: Xity CSFs in each case CSFs by degree of their importance Six Factor Model Conclusion

Introduction (ERP & CSF)

CSFs of ERP Implementation

Research Gap

Research Methodology & Process

Case Description

Case: Xity

CSFs in each case

CSFs by degree of their importance

Six Factor Model

Conclusion

ERP Integrates all business functions into a single system with a shared DB. ES or Enterprise-wide System Commodity (a product in form of computer software)

Integrates all business functions into a single system with a shared DB.

ES or Enterprise-wide System

Commodity (a product in form of computer software)

Motivation for ERP Implementation Technical Operational Strategic

Technical

Operational

Strategic

CSFs Key success variables for a project ’ s success Factors which, if addressed, significantly improve project implementation chances. CSF types

Key success variables for a project ’ s success

Factors which, if addressed, significantly improve project implementation chances.

CSF types

CSFs of ERP Implementation Butler and Fitzgerald (1999) 9 CSFs by concentrating only the development related issues in developing organizational IS. Light and Gibson (1999) 12 Specific CSFs regarding ERP implementation. Somers and Nelson (2001) 22 CSFs towards ERP implementation project and the importance of these CSFs in each stage of implementation process are examined.

Butler and Fitzgerald (1999)

9 CSFs by concentrating only the development related issues in developing organizational IS.

Light and Gibson (1999)

12 Specific CSFs regarding ERP implementation.

Somers and Nelson (2001)

22 CSFs towards ERP implementation project and the importance of these CSFs in each stage of implementation process are examined.

Where is the gap?

Research Methodology & Process Methodology - Case Study Research Method Data collection methods - Participant observations - Interviews - Document Reviews - Online Questionnaire Survey Research Process

Methodology

- Case Study Research Method

Data collection methods

- Participant observations

- Interviews

- Document Reviews

- Online Questionnaire Survey

Research Process

Case Description

Case: Xity Company Background World's largest financial services organization Focused in the stock brokerage and investment banking areas Total assets (US $2.4 trillions) 332,000 staff around the world Over 220 million customer accounts in more than 100 countries Mergers & Acquisitions

Company Background

World's largest financial services organization

Focused in the stock brokerage and investment banking areas

Total assets (US $2.4 trillions)

332,000 staff around the world

Over 220 million customer accounts in more than 100 countries

Mergers & Acquisitions

Need for ERP System Each new merger and acquisition represented a different HR system Generating information regarding headcount and employee data became very challenging The ability to collate information regarding own staff had become inefficient and expensive (due to decentralized system) Xity top management wanted its HR department to concentrate on career development, retaining talents, productivity and other strategic planning rather than updating and collecting personnel information

Each new merger and acquisition represented a different HR system

Generating information regarding headcount and employee data became very challenging

The ability to collate information regarding own staff had become inefficient and expensive (due to decentralized system)

Xity top management wanted its HR department to concentrate on career development, retaining talents, productivity and other strategic planning rather than updating and collecting personnel information

Facts about ERP Implementation Global Plan

Global Plan

Vendor & Package Selection An evaluation team was formed (XES Global Head, XES Region Heads, HR Heads) Three ERP systems/vendors were short-listed: PeopleSoft, Oracle and SAP PeopleSoft was selected (Global Customer Support, Product Establishment, Product Support , Experience, Professional Services)

Vendor & Package Selection

An evaluation team was formed (XES Global Head, XES Region Heads, HR Heads)

Three ERP systems/vendors were short-listed: PeopleSoft, Oracle and SAP

PeopleSoft was selected (Global Customer Support, Product Establishment, Product Support , Experience, Professional Services)

Asia Pacific/Japan Plan

Asia Pacific/Japan Plan

Approach adopted (Big-Bang Vs Phased) Big-Bang: Entire suit of ERP applications is implemented at all locations at the same time Phased: The modules are implemented one at a time or in a group of modules, often a single location at a time Singapore and Hong Kong were selected for the Pilot/Phased implementation

Approach adopted (Big-Bang Vs Phased)

Big-Bang: Entire suit of ERP applications is implemented at all locations at the same time

Phased: The modules are implemented one at a time or in a group of modules, often a single location at a time

Singapore and Hong Kong were selected for the Pilot/Phased implementation

Implementation Plan

Implementation Plan

Project Team Structure 1 Project Manager 3 Project Leads (Senior Business Analysts) 3 Business Analysts (Preferably at least 1 with a good grasp of the local language and culture) 1 Trainer (With a good grasp of the local language and culture) 1 Technical Lead (Senior Technical Analyst) 6 Technical Analysts 1 Compliance Officer

Project Team Structure

1 Project Manager

3 Project Leads (Senior Business Analysts)

3 Business Analysts (Preferably at least 1 with a good grasp of the local language and culture)

1 Trainer (With a good grasp of the local language and culture)

1 Technical Lead (Senior Technical Analyst)

6 Technical Analysts

1 Compliance Officer

Implementation Process for APAC/Japan Project Kick-Off Meeting & Business Requirements Gathering Project Specifications Documentation Legal and compliance issues Difficulty with time zone difference Localization Multilingual data support

Implementation Process for APAC/Japan

Project Kick-Off Meeting & Business Requirements Gathering

Project Specifications Documentation

Legal and compliance issues

Difficulty with time zone difference

Localization

Multilingual data support

Training Face-to-Face Training with the use of Training Manuals Net Meetings Computer Based Training

Training

Face-to-Face Training with the use of Training Manuals

Net Meetings

Computer Based Training

CSFs identified from case 1.Top Management Support 2. Involving end user 3. Providing User Training 4. Selection of Appropriate Vendor & Package 5. Vendor Support 6. Project Champion 7. Monitoring & Feedback 8. Minimum Scope Changes 9. Clear Project Plan 10. Dedicated Project Team

CSFs identified from case

1.Top Management Support

2. Involving end user

3. Providing User Training

4. Selection of Appropriate Vendor & Package

5. Vendor Support

6. Project Champion

7. Monitoring & Feedback

8. Minimum Scope Changes

9. Clear Project Plan

10. Dedicated Project Team

CSFs in each case CSFs by degree of their importance

CSFs in each case

CSFs by degree of their importance

Six Factor Model Management Factors Technology Factors Operational Factors Human Resource Factors Attitudinal Factors Communication Factors

Management Factors

Technology Factors

Operational Factors

Human Resource Factors

Attitudinal Factors

Communication Factors

Conclusion Six Factor model could be used by different ERP adopting organizations as a frame work for successful project implementation. More statistical tools could be used to find the most critical factors out of the above thirty nine factors.

Six Factor model could be used by different ERP adopting organizations as a frame work for successful project implementation.

More statistical tools could be used to find the most critical factors out of the above thirty nine factors.

Thank You