An investigation of critical success factors for successful Implementation of enterprise resource planning (ERP) Systems in Kenya

Abstract

Enterprise resource planning (ERP) systems have emerged as the core of successful information management and the enterprise backbone of organizations. In the past few years, many companies in Kenya have invested a lot of capital in information systems that range from transaction processing systems to complex inter-organizational systems. One of the systems that companies have invested in is the Enterprise Resource Planning Systems (ERPs). Most companies in Kenya are making frantic efforts to implement ERPs, which are being marketed as perfect solution to the organizational problems of information management. The difficulties of ERP implementations have been widely cited in the literature but research on the critical factors for initial and ongoing ERP implementation success is rare and fragmented. ERP implementation success rate is low with most of ERPs implementation being late or over budget and others failing to deliver the envisaged objectives. Against this background the research study sought to study critical success factors affecting enterprise resource planning (ERP) systems implementation in Kenya, and the approaches used in ERPs implementation. Identification of these factor and challenges would be based on the perception of the experts who are the let consultants involved in ERPs implementation. An understanding -of the emerging challenges in ERPs implementation was also focused on in this research study, this would help organizations contemplating adopting ERPs and ERP implementers develop appropriate intervention mechanisms such as training and communication that can lead to successful ERP implementation. Forty two ICT consultants who are involved in ERPs implementation were studied. Primary data for the study was collected using questionnaires. From this study critical success factors for successful ERP implementation have been identified. Teamwork and composition in the ERP implementer-vendor-consultant partnership is a key factor influencing ERP implementation success. Good coordination and communication between the implementation partners are essential. Since ERP covers a wide range of functional areas, it is also important to have a cross functional ERP core team. It is extremely critical that partnership trust is present and the team members are working well together. Another very critical factor is change management program and culture. An organizational culture where the employees share common values and goals and are receptive to change is most likely to succeed in ERP implementation. Furthermore, user training, education and support should be available and highly encouraged. Change agents should also play a major role in the implementation to facilitate change and communication, and to leverage the corporate culture. Other critical factors include top management support, business plan and vision, BPR and minimum customization, effective communication, project management, software development, testing and troubleshooting, monitoring and evaluation of performance, project champion, and appropriate business and IT legacy systems. VI The leT consultants noted that complexity of the ERP system, internal resistance, poorly defined specification, lack of system ownership, lack of user input, budget oversight, undefined expectation and costs constraint to be some the highest faced challenges in the process of ERP implementation. Most of the consultants use the parallel Big Bang approach in ERP implementation.