Factors influencing successful implementation of enterprise resource planning systems in parastatals in Kenya
Amondi, Ogada Anita
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The rapid development in Information systems has resulted in a border-less business environment along with an amplified market competition. Traversing through such a trend globally, organisations have had to significantly restructure, adopt and implement Enterprise Resource Planning (ERP) systems to automate their prime business processes and thereby enhance their organizational productivity with lower costs and prompt service delivery to fulfil consumer demands. Despite the adoption and implementation of ERP systems being considered challenging and expensive, the captains of the industry have pushed their organizations through the rigors of modernizing Information Systems after exhaustive investigation of the pointers as to why the adoptions and implementation of ERP systems is necessary. The purpose of the study was to investigate the factors influencing the successful implementation of ERP, a software system that is used to manage and coordinate all the resources, information, and functions of a business. A survey of all parastatal organizations in Nairobi was conducted to entail the examination of four key Critical Success Factors (CSF) which include End User Training, Top Management Support, Key Users Expertise and Knowledge and Planning & Management. The target population was all the parastatal organizations who are users of the ERP system in Nairobi. A sample of 5 respondents from each organization was used in the study. Managers participating in the study were purposively selected while end users were sampled using a stratified random sampling approach. The study collected data through self administered questionnaires which was analyzed qualitatively through content analysis to identify emerging themes and patterns that formed the basis of discussing the research findings.Notwithstanding; the implications of this research decimated the scope of how efficient and viable ERP systems are to parastatal organizations in Kenya. It was found that all the managers were computer literate. All the staffs indicated that non-managerial staff needed training in ERP for its successful implementation. It was established from the study that 87.50% of the managers were directly involved in using ERP system and all the managers received training on the use of ERP before it was implemented in the organization. It was also established that 92% of the managers indicated that technology is needed for the implementation of ERP in the organization. The study concludes that the managers were computer literate and had attained computer packages plus professional packages. IT department had the leading role in the implementation process. Staff should be trained and training of trainers is the best approach. Major changes the company faced during ERP implementation was updating/ increasing IT and other equipment. The study recommends that the organizations should ensure all the managers are computer literate and have attained computer packages plus professional packages. Managers should be trained in all aspects of ERP. The training should be appropriate. The organizations should invest in technology for successful implementation of ERP ..