Critical Success Factors Analysis for ERP Implementation: MITS6004

This report provides a comprehensive analysis of critical success factors in Enterprise Resource Planning (ERP) implementation. The report begins with an introduction to ERP systems and their importance in enhancing business performance. It then delves into the factors that contribute to ERP failures, such as long implementation times, cultural disruptions, and lack of managerial support, drawing from various research papers. The core of the report focuses on outlining critical success factors, including detailed organizational knowledge, concise strategies, top management sponsorship, effective project and change management practices, skilled teams, data management, and streamlined communication. The analysis is supported by a review of multiple research papers, offering insights into the practical application of these factors. The report concludes by emphasizing the importance of a well-planned and executed ERP implementation strategy for improving overall organizational performance.

Running head: ENTERPRISE RESOURCE PLANNING
ENTERPRISE RESOURCE PLANNING- Critical success factors in ERP
implementation
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction......................................................................................................................................2
About importance of ERP implementation......................................................................................2
Factors for ERP failures...............................................................................................................3
Critical success factors................................................................................................................4
Describing the CSF for ERP implementation..................................................................................5
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

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Introduction
The objective of the assessment is to provide a critique on the selected people. With the
help of this critique it will become easy to understand the concept that is associated with
enterprise resource planning. The focus of the assessment is to describe the critical success
factors that are associated with implementing an ERP system. With the help of this report it will
become easy to identify the key factors that are needed for successfully implementing an ERP
system between organizations.
Enterprise resource planning is one of the most essential systems that help in enhancing
the business performance. The paper will focus on outlining the major factors that are related to
enterprise resource planning and the need of enterprise resource planning within an organization.
With the use of proper technology implementation it becomes easy to enhance the performance.
Thus with this report it will become easy to provide better service towards the organization.
About importance of ERP implementation
The motive of the article is to state the success factors that are needed for implementing
an ERP system efficiently. It has been observed that there are several companies that faces
difficulties with maintaining the competitive advantage in the market and also faces huge
challenge with information and communication technologies. In order to enhance the business
flow and to supply product efficiently it is important to have a proper information system that
will enhance the business performance. The paper has focused on providing a literature review
for the purpose of determining the critical success factors that are associated with implementing
ERP system.

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There is a huge need to have proper knowledge about the critical success factors that has
the potential to implement the ERP systems successfully. There is a huge need to have proper
control over the implementation process so that it can offer better competitive advantages
towards the present world organiztaion. The research paper has discussed the entire essential
concept for the purpose of finalizing the critical success factors associated with the ERP system.
This is considered to be the foundation of identifying critical success factors. In order to
successfully implement a system it is important to mitigate the risk that arises with the system.
Apart from this there are several factors that are needed to be identified for the ERP
implementation includes determining the strategic goal associated with the organization,
managing the top management committee, implementing proper project management practices it,
change management practices it, selecting appropriate team, managing data quality, providing
proper training in different levels within the organization. Apart from this it is equally important
to perform proper measures within the system that will the possible risks and benefits that are
going to be offered with the implementation of ERP system.
ERP implementations tend to consume a huge amount of time take for implementation
and are very costly. The paper has evaluated several other research papers from the past works so
that it becomes easy to draw proper conclusion. In addition to this there are several
implementation strategies that are evaluated within the people for the purpose of providing
proper support towards the organization [1]. There is a huge need to have proper knowledge
about the critical success factors that has the potential to improve the business performance.
Factors for ERP failures
There are several factors that hamper the successful implementation of the ERP system.
The factors that impact the ERP system implementation are discussed within the paper. These

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issues are identified from previous research papers. The main reason behind the failure is the
long time that is needed for implementing the ERP, disruptive in the culture and the business
process, needs a lot of training within the employees, lack of managerial support and high cost.
Apart from these the other factor is it that tends to impact the ERP implementation includes the
improper Consultancy and lack of proper business process. According to the author [1], “it has
been observed that around 48% of ERP implementation is either a failure or it hasn’t reached the
success envisaged, or that most of the implementations, around 60% are over budget”. The
article has evaluated four papers and 18 studies that have generated the data of ERP
disadvantages or failure factors. Hence it can be stated that there is a need to have proper control
over the factors that are hampering the ERP system.
Critical success factors
The paper has evaluated different critical success factors that are needed for successfully
implementing an ERP system within an organization. In order to draw the conclusion four
articles has been evaluated by the author. After evaluating the articles the following conclusions
are drawn from the paper:
 It is important to have detailed knowledge of the organization and the legacy system
before implementing it within the organization.
 Having a proper concise and clear strategy for managing the business process
 Having approval from top management sponsorship
 Polling proper project management practices for implementing
 Following change management practices efficiently within the organization
 Having proper skillful and knowledgeable team
 Creating a proper procedure for data entry and accuracy

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 Conducting training and streamlining the communication so that it becomes easy to
attract the employees for accessing the system
 Creating performance measures
 Implementing proper approaches
Thus it can be stated that with the help of proper data set analysis and evaluation it becomes
easy to implement an ERP system within an organization. The article has followed secondary
methodology for finding the results.
Describing the CSF for ERP implementation
The objective of the article is to draw proper results for the purpose of evaluating the
success factor that are needed for managing the ERP implementation process. The paper has
evaluated four articles that have evaluated the concept of critical success factor on the basis of
certain data [1]. Thus it can be stated that the results that are drawn from the articles are
successful for managing the implementation process for ERP system. The below section focuses
on reviewing the key features that are needed for successfully implementing an ERP system:
Detail knowledge about the organization and the legacy system:
There are several opinions of different authors that have created an impact on the factor
whether there is a need to have detailed knowledge of the organization and the legacy system or
not. It can be stated that it is very important to identify the performance of the organizational
system for the purpose of a better implementation of the ERP systems. Once the problem within
the organization is identified properly then it becomes easy to implement the ERP system. Thus
it can be considered that identifying organization considerations is essential [1].
Concise strategy for organization:

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It is essential for the organization to implement a conscious strategy for integrating ERP
system so that it becomes easy to meet the organizational objectives. It is important to describe
the project goals efficiently so that it becomes easy to plan the overall project [1]. The
components that are needed to make decision include stating the clear goals, managing the
objectives and stating the business vision component. With the help of this data it becomes easy
to manage the overall performance.
Managing the sponsorship:
With proper management of sponsorship it becomes easy to implement the project. The
sponsorship needs to be managed efficiently so that it becomes easy to organize the components
that are needed for successfully executing the project. For executing a project it is important to
involve the top management efficiently so that it becomes easy to meet the needs of the
organization [1].
Project management practices and BPR introduction:
It is important to succeed in the implementation process of enterprise resource planning
system. It is important for the organization to use proper business process re-engineering for the
purpose of improving the functionality of the system. It can be stated that with the help of proper
ERP system it becomes easy to customize the overall performance [1]. The authors stated that
there is a need to have proper planning within the organization so that it becomes easy to meet
the objective. On the other side, it can be stated that with the use of proper project management
practices significant benefits can be obtained by the ERP implementation. It can be stated that
with proper management in ERP system it becomes easy to enhance the planning performance.
Introducing change management practice:

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There is a need to have change management within the organization so that it becomes
easy to manage the ERP system. Change management is essential for effective balancing of the
organization. In the article it has been stated that “it is estimated that about half of enterprise
system projects fail to achieve hoped-for benefits, because managers significantly underestimate
the e orts required to manage e ectively the wide range of changes involved” [1].ff ff With
proper change management within the organization it becomes easy to
improve the overall performance of the organization. Thus there is a need to
have an efficient change management within the ERP implementation
process. With the use of an efficient ERP system it becomes easy to manage
the change within the organization. This will help in meeting the overall
objective that is set by the organization.
Efficient and organized team:
ERP implementation project is considered as one of the most efficient
project for every organization. Thus in order to implement ERP system it is
important to have an efficient team that will focus on implementing the
system efficiently [1]. Each phase needs to be evaluated properly so that it
can offer proper support towards the organizational activities. With the help
of efficient team members it will become easy to attract proper decisions
and will also help in implementing the project more efficiently.
Managing data entry and accuracy:
The data that are managed within the enterprise resource planning
system is that it helps in managing the data efficiently. There is a need to

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have proper control over the data so that it can increase efficiency. Data
management needs to be carried out efficiently while implementing ERP
system. In addition to this it is important for the ERP systems that have
property integrity within the data sets. This will ensure that all the protected
data sets are capable of providing better facilities to words the customers.
Enhancing streamlined communication process:
Communication is one of the most important factors while managing
the ERP system. It is important for the organization to implement proper
communication process within the organization so that it becomes easy to
offer proper service to words the organization. With efficient communication
process the success rate also increases [1]. Thus it can be stated that with
the help of proper communication channel it will become easy to meet the
needs of the customers.
Conclusion
After evaluating the article it can be stated that there is a huge need to have proper
knowledge about the ERP implementation success factor so that it becomes easy to enhance the
overall performance. The main contribution that is provided with in the paper is that it has
focused on analyzing 22 research paper for the purpose of providing proper results. It can be
stated that with the help of proper analysis it will become easy to meet the organizational
objectives. Moreover ERP implementation should be carried out in different faces so that it can
enhance the overall performance of the organization. Thus it can be concluded that with proper
implementation of ERP system, the overall performance of the organization will improve.

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References
[1] B.A. Chaushi, A. Chaushi, and Z. Dika, Critical success factors in ERP
implementation. Academic Journal of Business, 2(3), 2016.