An analysis of the critical success factors for effective implementation of enterprise resource planning(ERP) system in selected public service sector organisations in Kenya
Masika, John Simiyu
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ERP projects are complex and involve changing business processes, introduction of information technology and changing the way people do business. Various studies have been undertaken on ERP projects and they conclude that these projects are faced with a number of challenges examples being taking long time to complete, overrunning budget and failing to deliver business objectives. This study was designed to analyse the critical success factors (CFS) that impact the effective implementation of ERP system projects in selected public service sector organisations in Kenya. A descriptive research methodology using questionnaires was used to collect data from selected public sector organisations spread across the various sectors of Kenyan economy. The target population comprised of 163 public sector organisations spread across the economy. The respondents from the selected organisations comprised ERP project team members, project managers, and managers. Also data was also collected from ERP system consultants. The sample size of the selected organisation was fifty six (56). Each selected organisation had three (3) respondents who are directly involved in ERP projects, giving an expected respondents of 168 in the study. 119 responses were received giving a response rate of 71%. Eight (8) key independent variables (CSF) were identified and analysed using descriptive statistics (frequency, percentage, mean, mode, and standard deviation). SPSS version 20 was used to analyse the data and the results presented in tables, bar charts, and pie charts. The results were analysed to establish effects of the eight (8) variables on the success of the ERP projects in terms of three (3) indicators of project success i.e. project outcome, timeliness and budget. The results conclude that most of the ERP projects in public sector organizations are perceived by the respondents as having failed. Majority of the projects achieved a success rate of less than 50%. 92% indicated that their projects were completed behind schedule while 43% indicated that their projects did have a budget overrun. Majority of the respondents disagreed that their projects brought about the organisational benefits which are generally considered to be key outcomes of any ERP project. The other conclusion from the study is that the most critical success factor for ERP implementation is the selection of the supplier. This factor is closely followed by; training program, business process re-engineering and change management in that order. The research recommends that organisations should pay more attention to the selection of suppliers since it is the most high ranking critical success factor. Data classification and migration though important has less impact on the overall success of ERP projects compared to the other seven variables.