An Empirical Study on Critical Success Factors for Enterprise Systems Implementation Fiona Nah and Janet Lau College of Business Administration University of Nebraska-Lincoln

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An Empirical Study onCritical Success Factors
for Enterprise Systems Implementation Fiona
Nah and Janet LauCollege of Business
Administration University of Nebraska-Lincoln
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Research Objectives

• Identify Critical Success Factors (CSFs) for ERP
  Implementation
• What are they?
• Degree of criticalness of each factor?
• From CIOs, implementers, vendors, consultants,
  and end-users perspectives
• This presentation reports findings from CIOs

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Research Procedures

• Through a comprehensive review of the literature,
  eleven factors were found to be critical to ERP
  implementation success
• These factors were classified into the respective
  phases (chartering, project, shakedown, onward
  and upward) of the ERP life cycle model proposed
  by Markus and Tanis
• The survey was mailed out to the CIOs of Fortune
  1000 companies
• Option to reply by mail or thru our web site

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The Eleven CSFs Identified
Appropriate Business IT Legacy Systems Monitoring Evaluation of Performance
Business Plan Vision Project Champion
Business Process Reengineering Project Management
Change Management Culture Program Software Development, Testing Troubleshooting
Communication Top Management Support
ERP Teamwork Composition
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Process Theory Approach by Markus and Tanis

1. chartering -- decisions defining the business
   case and solution constraints
2. project -- getting system and end users up and
   running
3. shakedown -- stabilizing, eliminating "bugs",
   getting to normal operations
4. onward and upward -- maintaining systems,
   supporting users, getting results, upgrading,
   system extensions.

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Classification of CSFs into Markus and Tanis'
ERP Life Cycle Model  
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Survey Responses

• Total responses to date -- 70
• by mail 64
• thru website 6
• Implementing or implemented ERP 49
• Not implemented ERP 21

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Survey Results from CIOs
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Survey Results
Factors
Average Rating
Factors
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Appropriate Business IT Legacy Systems

• Extremely critical important for success - 9
• Critical important for success - 20
• Somewhat critical important for success - 11
• Important but not critical / necessary for
  success - 5
• Neither critical nor important for success - 4

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Business Plan Vision

• Extremely critical important for success - 20
• Critical important for success - 24
• Somewhat critical important for success - 4
• Important but not critical / necessary for
  success - 1
• Neither critical nor important for success - 0

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Business Process Reengineering

• Extremely critical important for success - 23
• Critical important for success - 14
• Somewhat critical important for success - 9
• Important but not critical / necessary for
  success - 3
• Neither critical nor important for success - 0

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Change Management Culture Program

• Extremely critical important for success - 31
• Critical important for success - 11
• Somewhat critical important for success - 6
• Important but not critical / necessary for
  success - 1
• Neither critical nor important for success - 0

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Communication

• Extremely critical important for success - 21
• Critical important for success - 24
• Somewhat critical important for success - 4
• Important but not critical / necessary for
  success - 0
• Neither critical nor important for success - 0

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ERP Teamwork Composition

• Extremely critical important for success -33
• Critical important for success - 14
• Somewhat critical important for success - 2
• Important but not critical / necessary for
  success - 0
• Neither critical nor important for success - 0

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Monitoring Evaluation of Performance

• Extremely critical important for success - 20
• Critical important for success - 20
• Somewhat critical important for success - 7
• Important but not critical / necessary for
  success - 2
• Neither critical nor important for success - 0

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Project Champion

• Extremely critical important for success - 36
• Critical important for success - 9
• Somewhat critical important for success - 3
• Important but not critical / necessary for
  success - 1
• Neither critical nor important for success - 0

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Project Management

• Extremely critical important for success - 30
• Critical important for success - 18
• Somewhat critical important for success - 1
• Important but not critical / necessary for
  success - 0
• Neither critical nor important for success - 0

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Software Development, Testing Troubleshooting

• Extremely critical important for success - 15
• Critical important for success - 27
• Somewhat critical important for success - 7
• Important but not critical / necessary for
  success - 0
• Neither critical nor important for success - 0

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Top Management Support

• Extremely critical important for success - 37
• Critical important for success - 11
• Somewhat critical important for success - 1
• Important but not critical / necessary for
  success - 0
• Neither critical nor important for success - 0

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Conclusions

• According to the survey results,
• top mgmt. support, ERP composition teamwork,
  project champion, project management, and change
  management culture program received the highest
  ratings
• Future research will include ratings by
  implementers, vendors, consultants, and end-users