An analysis of the critical success factors for effective implementation of enterprise resource planning(ERP) system in selected public service sector organisations in Kenya
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Date
2014-08-27
Authors
Masika, John Simiyu
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Abstract
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.
Description
Department of Management Science, 91p. The HF 5548.38 .E5M3 2012
Keywords
Business --Computer program