Critical Success Factors in ERP 1104451/ Critical Success Factors in ERP Implementation

download Critical Success Factors in ERP 1104451/  Critical Success Factors in ERP Implementation

If you can't read please download the document

  • date post

    09-Jun-2020
  • Category

    Documents

  • view

    1
  • download

    0

Embed Size (px)

Transcript of Critical Success Factors in ERP 1104451/ Critical Success Factors in ERP Implementation

  • Critical Success Factors in ERP Implementation

    MASTER THESIS WITHIN: Business Administration NUMBER OF CREDITS: 30 PROGRAMME OF STUDY: International Logistics and Supply Chain Management AUTHOR: Jonathan Arvidsson & Daniel Kojic JÖNKÖPING June 2017

    The Perspective of the Procurement System User

  • Acknowledgements This thesis marks the last step in our master studies at Jönköping International Business School. We owe gratitude to a number of people who have made this thesis possible. First of all, we want to thank our supervisor Alain Vaillancourt, PhD, who always provided quick and guiding feedback when needed. His feedback sessions gave great insight and extended knowledge, which helped us improve this thesis.

    Furthermore, we would like to thank the groups who attended the thesis seminars for their valuable comments and input.

    Lastly, we are grateful to the contact persons at Consolis, who helped us with the distribution of the survey. We also thank the employees at Consolis who completed the survey. Without them, this thesis would not have been possible to complete.

    ……………………………….. ……………………………….. Jonathan Arvidsson Daniel Kojic Jönköping International Business School 1 of June 2017

  • Master Thesis in Business Administration Title: CSFs in ERP Implementation – The Perspective of the Procurement System User Authors: Jonathan Arvidsson & Daniel Kojic Tutor: Alain Vaillancourt Date: 2017-05-19 Key terms: Enterprise Resource Planning, Critical Success Factors, Implementation, Procurement Management, System User, Organisational Change. Abstract Background: As worldwide globalisation increases, the need for fluent information transitions is

    intensified. The modern company utilizes an enterprise resource planning (ERP) system to coordinate the information flows both internally and externally, but implementing an ERP system is complex and costly. Understanding the critical success factors (CSFs) when implementing such a system is hence vital. Prior research has focused on the management perspective of the implementation, but the perspective of the system user has been lacking. This study adds to research by focusing on the system user, and to be sure that an information demanding section of the supply chain is targeted, system users within procurement are focused.

    Purpose: The purpose of this study is to identify critical success factors in ERP

    implementation from a procurement system user perspective. Method: 14 CSFs are derived from prior research: (1) Top management commitment, (2)

    Implementation strategy, (3) Communication, (4) Training and education, (5) Implementation team, (6) Change management, (7) User involvement, (8) Business process reengineering, (9) Use of consultants, (10) Project support, (11) ERP selection, (12) Project management, (13) Quality management and (14) Risk management. From these CSFs, hypotheses are formed which are tested through a survey including 15 Likert-style rating scale questions. The hypothesis is analysed with the use of Spearman’s simple rank correlation and descriptive statistics.

    Conclusion: The results show that the system users regard the following four CSFs as critical to

    the success of an ERP implementation: (1) Training and education, (2) Change management, (3) ERP selection and (4) Risk management. The CSFs are not ranked in a particular order of importance. The results furthermore show that more in-depth research can be made with the focus on the perceptions and preferences of the system user.

  • Table of Contents 1. Introduction ................................................................................................................ 1

    1.1 Background ..................................................................................................................... 1 1.2 Problem Statement ......................................................................................................... 4 1.3 Purpose of the paper ...................................................................................................... 6 1.4 Scope and Delimitation ................................................................................................... 7 1.5 Outline of the Thesis ....................................................................................................... 8

    2. Frame of Reference ..................................................................................................... 9 2.1 Supply Chain Management and ERP ................................................................................ 9

    2.1.1 Procurement and ERP ...................................................................................................... 10 2.1.2 ERP Implementation ........................................................................................................ 13

    2.1.2.1 ERP Implementation Stages ................................................................................................. 13 2.1.2.2 ERP Success .......................................................................................................................... 15

    2.2 Literature Reviews ........................................................................................................ 16 2.3 CSFs in ERP Implementation .......................................................................................... 23

    2.3.1 Top Management Commitment ...................................................................................... 23 2.3.2 Implementation Strategy ................................................................................................. 24 2.3.3 Communication ............................................................................................................... 25 2.3.4 Training and Education .................................................................................................... 25 2.3.5 Implementation Team ..................................................................................................... 26 2.3.6 Change Management ...................................................................................................... 28 2.3.7 User Involvement ............................................................................................................ 29 2.3.8 Business Process Reengineering ...................................................................................... 30 2.3.9 Use of Consultants ........................................................................................................... 30 2.3.10 Project Support ........................................................................................................... 31 2.3.11 ERP Selection ............................................................................................................... 32 2.3.12 Project Management ................................................................................................... 33 2.3.13 Quality Management .................................................................................................. 33 2.3.14 Risk Management ........................................................................................................ 34

    3. The Research Design ................................................................................................. 37 3.1 Methodology ................................................................................................................ 37

    3.1.1 Research Philosophy ........................................................................................................ 37 3.1.2 Nature of the Research .................................................................................................... 38 3.1.3 Research Approach .......................................................................................................... 39

    3.2 Method ......................................................................................................................... 40 3.2.1 Research Strategy ............................................................................................................ 40 3.2.2 Methodological Choice .................................................................................................... 40 3.2.3 Time Horizon ................................................................................................................... 41

    3.3 Data Collection ............................................................................................................. 42 3.3.1 Questionnaire .................................................................................................................. 42 3.3.2 Design of the Questionnaire ............................................................................................ 43 3.3.3 Sample Selection and Response Rate .............................................................................. 43 3.3.4 Reliability ......................................................................................................................... 45 3.3.5 Validity ............................................................................................................................. 46

    3.4 Data Analysis ................................................................................................................ 48 3.4.1 Descriptive Statistics ...........................................................................................