Critical Success Factors for Implementation of ERP Projects


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Critical Success Factors for Implementation of ERP Projects by Student K Satish of NUS Singapore

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  • Critical Success Factors for Implementation of ERP Projects

    1. 1. Critical Success Factors (CSFs): A Framework for Successful ERP Project Implementation KRISHNAN, Satish
    2. 2. Agenda <ul><li>Introduction (ERP & CSF) </li></ul><ul><li>CSFs of ERP Implementation </li></ul><ul><li>Research Gap </li></ul><ul><li>Research Methodology & Process </li></ul><ul><li>Case Description </li></ul><ul><li>Case: Xity </li></ul><ul><li>CSFs in each case </li></ul><ul><li>CSFs by degree of their importance </li></ul><ul><li>Six Factor Model </li></ul><ul><li>Conclusion </li></ul>
    3. 3. ERP <ul><li>Integrates all business functions into a single system with a shared DB. </li></ul><ul><li>ES or Enterprise-wide System </li></ul><ul><li>Commodity (a product in form of computer software) </li></ul>
    4. 4. Motivation for ERP Implementation <ul><li>Technical </li></ul><ul><li>Operational </li></ul><ul><li>Strategic </li></ul>
    5. 5. CSFs <ul><li>Key success variables for a project ’ s success </li></ul><ul><li>Factors which, if addressed, significantly improve project implementation chances. </li></ul><ul><li>CSF types </li></ul>
    6. 6. CSFs of ERP Implementation <ul><li>Butler and Fitzgerald (1999) </li></ul><ul><li>9 CSFs by concentrating only the development related issues in developing organizational IS. </li></ul><ul><li>Light and Gibson (1999) </li></ul><ul><li>12 Specific CSFs regarding ERP implementation. </li></ul><ul><li>Somers and Nelson (2001) </li></ul><ul><li>22 CSFs towards ERP implementation project and the importance of these CSFs in each stage of implementation process are examined. </li></ul>
    7. 7. Where is the gap?
    8. 8. Research Methodology & Process <ul><li>Methodology </li></ul><ul><li>- Case Study Research Method </li></ul><ul><li>Data collection methods </li></ul><ul><li>- Participant observations </li></ul><ul><li>- Interviews </li></ul><ul><li>- Document Reviews </li></ul><ul><li>- Online Questionnaire Survey </li></ul><ul><li>Research Process </li></ul>
    9. 9. Case Description
    10. 10. Case: Xity <ul><li>Company Background </li></ul><ul><ul><ul><li>World's largest financial services organization </li></ul></ul></ul><ul><ul><ul><li>Focused in the stock brokerage and investment banking areas </li></ul></ul></ul><ul><ul><ul><li>Total assets (US $2.4 trillions) </li></ul></ul></ul><ul><ul><ul><li>332,000 staff around the world </li></ul></ul></ul><ul><ul><ul><li>Over 220 million customer accounts in more than 100 countries </li></ul></ul></ul><ul><ul><ul><li>Mergers & Acquisitions </li></ul></ul></ul>
    11. 11. Need for ERP System <ul><li>Each new merger and acquisition represented a different HR system </li></ul><ul><li>Generating information regarding headcount and employee data became very challenging </li></ul><ul><li>The ability to collate information regarding own staff had become inefficient and expensive (due to decentralized system) </li></ul><ul><li>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 </li></ul>
    12. 12. Facts about ERP Implementation <ul><li>Global Plan </li></ul>
    13. 13. <ul><li>Vendor & Package Selection </li></ul><ul><ul><ul><li>An evaluation team was formed (XES Global Head, XES Region Heads, HR Heads) </li></ul></ul></ul><ul><ul><ul><li>Three ERP systems/vendors were short-listed: PeopleSoft, Oracle and SAP </li></ul></ul></ul><ul><ul><ul><li>PeopleSoft was selected (Global Customer Support, Product Establishment, Product Support , Experience, Professional Services) </li></ul></ul></ul>
    14. 14. <ul><li>Asia Pacific/Japan Plan </li></ul>
    15. 15. <ul><li>Approach adopted (Big-Bang Vs Phased) </li></ul><ul><ul><ul><li>Big-Bang: Entire suit of ERP applications is implemented at all locations at the same time </li></ul></ul></ul><ul><ul><ul><li>Phased: The modules are implemented one at a time or in a group of modules, often a single location at a time </li></ul></ul></ul><ul><ul><ul><li>Singapore and Hong Kong were selected for the Pilot/Phased implementation </li></ul></ul></ul>
    16. 16. <ul><li>Implementation Plan </li></ul>
    17. 17. <ul><li>Project Team Structure </li></ul><ul><ul><ul><li>1 Project Manager </li></ul></ul></ul><ul><ul><ul><li>3 Project Leads (Senior Business Analysts) </li></ul></ul></ul><ul><ul><ul><li>3 Business Analysts (Preferably at least 1 with a good grasp of the local language and culture) </li></ul></ul></ul><ul><ul><ul><li>1 Trainer (With a good grasp of the local language and culture) </li></ul></ul></ul><ul><ul><ul><li>1 Technical Lead (Senior Technical Analyst) </li></ul></ul></ul><ul><ul><ul><li>6 Technical Analysts </li></ul></ul></ul><ul><ul><ul><li>1 Compliance Officer </li></ul></ul></ul>
    18. 19. <ul><li>Implementation Process for APAC/Japan </li></ul><ul><ul><ul><li>Project Kick-Off Meeting & Business Requirements Gathering </li></ul></ul></ul><ul><ul><ul><li>Project Specifications Documentation </li></ul></ul></ul><ul><ul><ul><li>Legal and compliance issues </li></ul></ul></ul><ul><ul><ul><li>Difficulty with time zone difference </li></ul></ul></ul><ul><ul><ul><li>Localization </li></ul></ul></ul><ul><ul><ul><li>Multilingual data support </li></ul></ul></ul>
    19. 20. <ul><li>Training </li></ul><ul><ul><ul><li>Face-to-Face Training with the use of Training Manuals </li></ul></ul></ul><ul><ul><ul><li>Net Meetings </li></ul></ul></ul><ul><ul><ul><li>Computer Based Training </li></ul></ul></ul>
    20. 21. <ul><li>CSFs identified from case </li></ul><ul><li>1.Top Management Support </li></ul><ul><li>2. Involving end user </li></ul><ul><li>3. Providing User Training </li></ul><ul><li>4. Selection of Appropriate Vendor & Package </li></ul><ul><li>5. Vendor Support </li></ul><ul><li>6. Project Champion </li></ul><ul><li>7. Monitoring & Feedback </li></ul><ul><li>8. Minimum Scope Changes </li></ul><ul><li>9. Clear Project Plan </li></ul><ul><li>10. Dedicated Project Team </li></ul>
    21. 22. <ul><li>CSFs in each case </li></ul><ul><li>CSFs by degree of their importance </li></ul>
    22. 23. Six Factor Model <ul><li>Management Factors </li></ul><ul><li>Technology Factors </li></ul><ul><li>Operational Factors </li></ul><ul><li>Human Resource Factors </li></ul><ul><li>Attitudinal Factors </li></ul><ul><li>Communication Factors </li></ul>
    23. 25. Conclusion <ul><li>Six Factor model could be used by different ERP adopting organizations as a frame work for successful project implementation. </li></ul><ul><li>More statistical tools could be used to find the most critical factors out of the above thirty nine factors. </li></ul>
    24. 26. Thank You