Introduction to ERP Systems
Assignment No. 4
INTRODUCTION TO ERP SYSTEMS
CRITICIAL SUCCESS FACTORS
SIR FAWAD ALAM
Submitted by:
1. Syed Hassan Ahmed Naqvi 20121-14135
Date: 08TH August 2021
1
Introduction to ERP Systems
Enterprise resource planning (ERP) systems have appeared as one of the important developments that lead to a
successful information management and now is considered as the backbone of the organizations. There are various
researches on the implementation of ERP but work on the critical factors for ERP is very rare. This research shows 11
factors were found to be critical to ERP implementation success, after a thorough research. ERP teamwork and
composition, change management program and culture, top management support, business plan and vision, business
process reengineering with minimum customization, project management, monitoring and evaluation of performance,
effective communication, software development, testing and troubleshooting, project champion, appropriate
business and IT legacy systems. These factors are discussed as follows:
1. Top Management Support:
For the implementation of ERP, the support of management is one of the crucial factors.
Senior management must be committed with its own involvement and willingness to allocate valuable resources
to the implementation effort
Managers should legitimize new goals and objectives.
Policies should be set by top management to establish new systems in the company.
2. Business plan and vision
A clear business plan and vision to steer the direction of the project is needed throughout the ERP life cycle.
here should be a clear business model of how the organization should operate behind the implementation effort.
Project mission should be related to business needs and should be clearly stated
Goals and benefits should be identified and tracked
The business plan would make work easier and impact on work
3. Effective communication
Effective communication is critical to ERP implementation.
Expectations at every level need to be communicated. Management of communication, education and
expectations are critical throughout the organization.
Communication includes the formal promotion of project teams and the advertisement of project progress to the
rest of the organization
Employees should be told in advance the scope, objectives, activities and updates, and admit change will occur.
4. Project management
Good project management is essential.
The scope must be clearly defined and be limited.
This includes the amount of the systems implemented, involvement of business units, and amount of business
process reengineering needed.
Then the project must be formally defined in terms of its milestones.
5. Project champion
Project sponsor commitment is critical to drive consensus and to oversee the entire life cycle of implementation.
There should be a high level executive sponsor who has the power to set goals and legitimize change
Transformational leadership is critical to success as well.
6. Appropriate business and legacy systems
Appropriate business and legacy systems are important in the initial chartering phase of the project.
Business and IT systems involving existing business processes, organization structure, culture, and information
technology affect success
It determines the IT and organizational change required for success
2
Introduction to ERP Systems
7. Change management program and culture
Change management is important, starting at the project phase and continuing throughout the entire life cycle.
A culture with shared values and common aims is conducive to success.
Organizations should have a strong corporate identity that is open to change.
As part of the change management efforts, users should be involved in design and implementation of business
processes and the ERP system, and formal education and training should be provided to help them do so
8. Business process reengineering (BPR) and minimum customization
Another important factor that begins at the project phase is BPR and minimum customization
Aligning the business process to the software implementation is critical.
Process modeling tools help aid customizing business processes without changing software code
9. Software development, testing and troubleshooting
Software development, testing and troubleshooting is essential, beginning in the project phase.
The overall ERP architecture should be established before deployment, taking into account the most important
requirements of the implementation.
There is a choice to be made on the level of functionality and approach to link the system to legacy systems.
Requirements definition can be created and system requirements definition can be documented.
10. Monitoring and evaluation of performance
Achievements should be measured against project goals.
The progress of the project should be monitored actively through set milestones and targets.
Management needs information on the effect of ERP on business performance.
Reports or processes for assessing data need to be designed.
It must include effective measurable project goals that meet business needs and are reasonable.
