A model of ERP project implementation

TLDR

ERP implementation problems are well documented, costly, and evidence shows significant issues during the actual implementation project, with critical success factors drawn from prior research and recent literature. This paper presents a project phase model (PPM) that synthesizes existing ERP implementation process models and focuses on the implementation project. The authors apply the PPM to two case studies—one unsuccessful and one successful—within the same organization to identify phase‑specific critical success factors, highlight differences, and explain the factors that led to success. The study found that organizational learning and an early champion were critical to success, that large ERP projects should be partitioned into smaller “vanilla” implementations, and that the PPM with its CSFs offers practical guidance and a foundation for further research.

Abstract

Problems with the implementation of ERP systems are well documented. Although companies spend millions on ERP packages and the implementation process, there is extensive evidence that they experience considerable problems, particularly during the actual implementation project. This paper presents a project phase model (PPM) of ERP implementation projects that is a synthesis of existing ERP implementation process models and focuses on the implementation project. Two case studies of ERP implementation within the same organization, one unsuccessful and a later successful one, are reported and analysed in order to determine which critical success factors (CSFs) are necessary within each phase of the PPM. The CSFs are drawn from an earlier stage of this research and from recent literature. The PPM is used as a ‘lens’ for understanding ERP implementation projects, by highlighting the differences between the two cases. We then offer an explanation for these differences, focusing particularly on the successful case. Firstly, the organizational learning that occurred during the unsuccessful project and the associated early appointment of an experienced ‘champion’ with clearly defined responsibilities were critical to the successful project. Secondly, organizations implementing ERP systems should partition large projects into several smaller, simpler projects identified here as ‘vanilla’ implementations. The PPM, together with associated CSFs, provides guidance for practitioners when planning ERP implementation projects and also provides researchers with a foundation for further empirical research.