Factors influencing successful implementation of enterprise resource planning systems in parastatals in Kenya
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Date
2014-07-14
Authors
Amondi, Ogada Anita
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Abstract
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 ..
Description
Department of Management Science, 60p. 2013, HD 30.28 .O35