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The Success Of Enterprise Resource Planning

2053 words - 9 pages

2.2.1 Project Management

An excellent project management includes a clear classification of goals, development of resource and work plan, and prudent tracking of project progress (Davis & Wilder, 1998; Laughlin, 1999). According to Reimers (2003), Shanks et al. (2000), & Zhang et al. (2003) all of the researches that have been conducted in China indicated that PM has a significant relationship with an ERP implementation success. Furthermore it was noted that effective project management can enhance companies’ ability to plan, manage and control several actions in different stages of implementation (Akkermans & Helden, 2002; Somers, & Nelson, 2004). An effective PM is considered as having a two-dimensional effect of: (a) Converting ‘resources into outputs’; (b) Helping achieve project benefits in the form of performance improvements, cost reductions and other desired values established by stakeholders’ interests in a particular project (Zhai et al., 2009, p. 100). Further research advocates that due to project management strategic and technical dimensions, organisations could realise the expected benefits of projects if PM practices and techniques are used effectively (Shi, 2011). Thomas and Mullaly (2006) noted that realization of PM does enhance an ERP success.

2.2.2 Training and Education

Stratman & Roth (2002, p. 612) have defined TED as the “continuous transfer of both tacit and explicit knowledge about the logic, concept, processes and function of the ERP systems”.
Because of user understanding and buy-in is crucial, TED is the most commonly recognised critical success factor in ERP (Ram et al., 2013). Furthermore Ram et al (2013) suggested that as ERP software’s has a complex system, an important mass of knowledge requires to enable users to solve problems within the framework of the system. Therefore an effective training according to Laughlin (1999) is well thought-out to be very critical in order to provide users with the necessary skills and tools that will enable them to use an ERP system proficiently in their day-to- day activities. Elisabeth et al (2003) pointed out that until users are not using the new system properly the full benefits of ERP cannot be comprehended. Hence in order to make end user training successful, the training must start early, if possible before the implementation of ERP begins (Stratman & Roth, 2002).

Additionally was pointed out that in order to help users understand the full system and to help an organisations to realise the full benefits from an ERP system implementation of a good TED program is essential (Umble et al., 2003). Hence Ram et al (2013) suggested that top management should be willing to spend sufficient amount of money on the end users training and education and it should be considered as the part of ERP budget. It has been advised that considering 10–15% of the total ERP implementation budget for training and education will increase the chances of success by 80% (McCaskey & Okrent,...

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