The Implementation Imperatives and Critical Success Factors of Enterprise Systems: a Literature Review

Only available on StudyMode
  • Download(s) : 109
  • Published : March 28, 2012
Open Document
Text Preview
The Implementation Imperatives and Critical Success Factors of Enterprise Systems: A Literature Review

Yu-Ting Chen

School of Information Studies,
Syracuse University, New York, USA

Table of contents
Abstract………………………………………………………………………………..1 Introduction……………………………………………………………………………1 Influence of Enterprise Systems……………………………………………….......….3 Implementation Criteria……………………………………………………………...10 Conclusion……………………………………………………………………………17 Bibliography……………………………………………………………………….…18 Appendix……………………………………………………………………………..19

Abstract
This paper summarizes the present literature putting emphasis on the benefits and limitations which an organization may face when implementing enterprise systems, as well as critical success factors that are considered critical to the success of enterprise systems implementation. An analysis and synthesis of present research and a comparison of the differences and consistencies among them will be provided.

Introduction
Ever since the appearance of enterprise systems (ESs) for businesses in the 1990s, the research of this promising, highly-integrating software package for business solutions has never stopped. The first objective of implementation of ESs are focused on large organizations, e.g. companies of Fortune 500, as small and medium enterprises (SME) are considered to inappropriate for lack of resources to introduce the systems. Yet with the saturation in the market almost every one of those large enterprises was equipped with ES, the target began to change to SME, as a result the corresponding research started to develop. The design of ES is aimed to support, manage and integrate all the resources, activities, and information flows of organizations. By eliminating redundancy and constructing uniformity across all the functional areas, ES gives organizations a vision of improving efficiency and reducing costs simultaneously. The definition of an enterprise system by Piccoli is “a modular, integrated software application that spans (all) organizational functions and relies on one database at the core”. However, ES is a double-edged sword which all managers should carefully ponder before starting to utilize it. The covering scope of ES may cross a number of corporations or industries. The resulting costs and efforts for adjusting to the system before, during and after the implementation process are tremendous. Time devoted will last for years. Most importantly, the impact of the failure of ES to the company is disastrous. As Davenport (1998) illustrated, “the growing number of horror stories about failed or out-of-control projects should certainly give managers pause.” In fact, based on a survey conducted by a consulting organization of 236 companies in which 36 percent had or were in the process of implementing ES, 51 percent of those regarded ES implementation as unsuccessful. In other words, half of the companies failed in this decision. While the benefits of ES are praised by the service providers and those equipped and successful organizations, strategists should see through its glory and be aware of the underlying limitations and drawbacks. This paper gives a summary and synthesis of the present literature for implementation imperatives of enterprise systems; a discussion about critical success factors (CSF) is included. Through the present literature, a well-constructed overview for the implementation of enterprise systems will be introduced.

Influence of Enterprise Systems
With the advent of ESs, more and more companies began to invest their resources into the installation of ESs. However, before the determination of the investment, organizations should first notice the consequences of ES implementation, including its benefits and limitations.

Benefits
There have been a lot of research and literature discussing the benefits and their classification of enterprise systems (Piccoli, 2008; Leon, 2007; Shang and Seddon, 2002; Murphy and Simon, 2002; Remenyi et al.,...
tracking img