An Enterprise Resource Planning (ERP) system is a highly complex system and is usually associated with high costs. The implementation is a long process and may take years to complete, furthermore, the process can be delayed and disrupted by inadequate planning and execution. It is not surprising that the biggest issue in ERP is the failure of a successful implementation. Hence, a company has to understand and consider the success factors of a successful implementation before deciding on implementing an ERP system.
Top management commitment
The support from top management is critical. An active and committed committee who are directly involved in the implementation process would remind ...view middle of the document...
This is often caused by, failure to establish a case for change, lack of involvement by management and inadequate communication. The level of resistance to change differs between organization. In the case of GHCL, the organization did not encounter a high level of resistance as its employees was aware of the status of the company and understands the need for change. Furthermore, majority of the employees were dissatisfied with their current situation of traditional information sharing process. On the other hand, a organization which is comfortable working with their outdated system would develop a higher resistance to change. Employees must be be positive, open, be willing to learn and embrace the new technology, not just the people who implemented them. Training can be provided to employees to allow them to better understand the workings of ERP, raise awareness and prepare them mentally for the change. This could increase their acceptance of the new ERP system.
One of the causes of the failure in ERP implementation is the lack of communication between the project team and the rest of the organization. This includes failure to report on progress and efforts made in the implementation and advising the organization of the importance of the ERP implementation. Proper and effective communication at all levels of the organization is necessary before and during the implementation of ERP. This often requires a open communication plan and policy within the organization such that the users can provide feedback and suggestions to the implementation team. There should also be promotion of the implementation project to raise awareness not only within the organization, but also to suppliers or customers. It is found that effective communication can influence the acceptance of the change in technology.
Selection of vendors
ERP vendor should be experts on their own products. Thus, the selection of a suitable ERP vendor is crucial. A good vendor can provide support in the form of training, technical assistance and advice during the...