Discovering Key Factors in ERP Implementation through Success and Failure Cases

Abstract

In the last two decades, ERP Systems became vital in the organizations. It is not enough to find out the appropriate ERP system for the company, to resolve the problems completely. The success of an ERP system is dependent on the performance of the ERP installation project. In this paper, at the beginning the definition of the ERP systems is given briefly and then the structure of a successful and effectively working ERP system is analyzed in the light of a case from the business world. At the end, the critical success factors of an ERP installation project are identified and examined with the help of three distinct ERP cases with different outcomes. DOI: 10.4018/jeei.2012070103 28 International Journal of E-Entrepreneurship and Innovation, 3(3), 27-36, July-September 2012 Copyright © 2012, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited. Management tools make ERP more customerfocused, project management oriented and content management-oriented. When Table 1 is compared to Table 2, it can be easily seen that market share of the top 3 companies has fallen down from 65% to 53% within 5 years. Meanwhile ERP market was grown nearly 7% every year (e.g., $43bn in 2010 and $40.6bn in 2009, Panorama Consulting, 2011). Competition gets tougher and new players become more powerful with the development of the ERP market. Hence, it’s becoming more important to implement problem-free and successful ERP projects. In the first section of this paper a problem free and profitable working ERP system (Benetton) has been described, showing how a perfect ERP system should function. In the Table 1. Market share of ERP software (Bailor, 2006) Vendor Market Share SAP 30,33% Oracle Applications 21.38% The Sage Group 17.44% Microsoft Dynamics 14.25% SSA Global Technologies (now Infor Global Solutions) 7.22% Others 9.38% Table 2. Market share of ERP software (Panorama Consulting, 2011) Vendor Market Share SAP 24% Oracle Applications 18% Microsoft Dynamics 11% Epicor Sage Infor IFS QAD Lawson Ross 11% ABAS Activant Solutions Inc. Baan Bowen and Groves Compiere Exact Netsuite Visibility Blue Cherry Exact HansaWorld Intuitive Syspro Others 36% 8 more pages are available in the full version of this document, which may be purchased using the "Add to Cart" button on the product's webpage: www.igi-global.com/article/discovering-key-factors-erpimplementation/70580?camid=4v1 This title is available in InfoSci-Journals, InfoSci-Journal Disciplines Business, Administration, and Management, InfoSci-Digital Marketing, E-Business, and E-Services eJournal Collection, InfoSci-Select. Recommend this product