Critical success factors of ERP implementation: A literature review

Abstract

In nowadays’ competitive business environment, ERP systems have become an important strategic tool. This study provides an overview of current research on ERP systems. Its aim is to identify the main advantages, disadvantages and critical success factors for implementation of ERP systems discussed in the relevant literature.

In order to do so, numerous journal papers and conference proceedings have been designated. We started by selecting the papers that analyzes the ERP implementation process and followed by making a selection of papers that discuss the factors on which companies can rely to guarantee the success of the implementation project of the said system.

The results show that while some organizations might face difficulties and challenges in implementing ERP systems, many others are already taking advantage and profiting from the benefits the system offers to the firm. The ERP system is conducive to the smooth flow of general functional information, practice across the organization. It also improves supply chain efficiency and reduces lead times. However, companies cannot gain the full benefits of the ERP package without top management support, accurate and precise data, proper business plan, strategy and vision, business process re-engineering, effective project management, user involvement and training, active communication and change management.

Keywords: ERP system, CSF, Implementation, Success, failure

JEL Classification: M15, G17, G30

Paper type: Theoretical Research