Factors which influence the implementation phase of Enterprise Resource Planing (ERP)

Abstract

Enterprise resource planning – ERP – is among the latest technologies that companies have undertaken. Typically it is a software package that has a centralized database for several modules; these modules could be customized based on the organization’s needs. Since the cost of an ERP implementation is considered to be very high, it is critical for organizations to make it a success and start having return on their investment. But what makes an ERP implementation project successful? How to evaluate its success? These are the questions addressed by the thesis. Answering these questions, a research on existing ERP implementation methods was conducted, analysis to the main findings was performed, and a new implementation model called the PDIA (Planning and preparation – Design – Implementation – Audit and fine tuning) model was introduced. A detailed focus on the steps of data conversion was accomplished. Identification of the critical success factors for the PDIA were recognized, and an evaluation model to evaluate them was done. The PDIA model was applied to a real ERP module at a retail company in Lebanon, and a simulation to the data conversion was achieve. When the implementation was over an evaluation for the implementation was completed. Finally a comparison to an implemented module within the firm was carried out, and a comparison to an implemented ERP at another retail company in Lebanon was studied to ensure the success of the introduced PDIA model.