Muhammad Shabbir Hassan
Date: 02 Feb, 2011
Department of Computer Science
Faculty of Applied Sciences
International Islamic University Islamabad
Critical Success Factors (CSFs) in ERP Implementation in Pakistan
Muhammad Shabbir Hassan
International Islamic University
Organizations need information previously fragmented within its different Information Systems (IS) which are in use in different business areas to be integrated for its timely availability. Enterprise Resource Planning (ERP) systems are capable to automate and integrate the key business processes throughout the organization. Consequently, the information may flow among different parts of the organization freely and helps the management in making strategic decisions. The implementation of ERP systems is a challenging task and it is not just a technical exercise but a socio-technical challenge. This research focused on the Critical Success Factors (CSF) that may contribute to a successful ERP implementation in organizations in Pakistan. Research findings are based on survey research conducted in Pakistan. Questionnaires were sent to 202 Managers/Project Directors in 8 organizations which were implementing or had implemented ERP systems for automation of their business processes. However, 116 positive responses to these questionnaires were received. The research findings showed that various factors relating to users, organization and ERP software are critical towards successful implementation of ERP systems. The findings may be a valuable contribution to the existing knowledge and handy for the practitioners.
Keyword: Enterprise Resource Planning, Critical Success Factors, Information System
Organizations need information previously fragmented within its different Information Systems (IS) that are in use in different business areas to be integrated for its timely availability. All departments need to upgrade their capabilities to generate and communicate required information whenever they needed. Enterprise Resource Planning (ERP) systems are integrated enterprise wide systems that automate core enterprise activities such as human resources manufacturing finance and supply chain management. Such system have capabilities to automate and integrate an organization business processes, share common data and practices across the entire enterprise, and generate and access information in real time environment (Rasmy et al, 2005; Nah and Lau, 2001). ERP systems are not built but adopted and may cause major changes to the existing work flows on their implementation. The fit between business processes and ERP solution need redesign of business processes as a prerequisite for ERP adaptation (Law & Ngai, 2007). The organization which has adopted ERP systems reported encouraging and disappointing outcomes (Devonport, 1998). Various challenges have been faced by organizations in implementing ERP solutions leading to project failures (Spitze, 2001).
There exist different stories of ERP successful implementation and failures (Thavapragasam, 2003; Zhang, 2002). Researcher claims that success of ERP systems is very much concerned with the degree of mutual fit between the ERP solution and business processes. The fit between business processes and ERP solution need redesign of business processes as a prerequisite for ERP adaptation (Law & Ngai, 2007). Critical Success Factors (CSFs) approach was first used by Rockhart (1979) in the area of Information System. The common factors on the basis of which a project is considered to be successful is known as Critical Success Factors (CSF). Yogi (1996) stated that factors which frequently contribute to either a success or a failure are termed as critical success factors. Within...