Identifying Critical Factors in Enterprise Resource Planning (ERP) Implementation

Regarding the fact that companies implement different information systems in their organizations، there is an increasing need to integrate this information. Enterprise resource planning (ERP) is both a database and an application which integrates the business activities of a company to ensure integrated business processes. So far، only a few empirical studies have been conducted in order to determine the key factors in implementing ERP. The present study examines the factors influencing the successful implementation of ERP experimentally and its results are presented. Using a standard questionnaire distributed among 12 companies that implement ERP in Iran، the experiences of managers، staffs and professionals in implementing، ERP and its pros and cons were collected; the data was analyzed through the SPSS software using t-tests and Friedman ANOVA. Based on the literature، 10 potential factors in implementing ERP were determined: system selection criteria، consultant selection criteria، supplier selection criteria، principles of project management، reengineering process، human resources development، Chief Executive Officer (CEO) support، cost and budget، IT structure، and consulting services. The results of the study show that all ten mentioned factors have a significant relationship with successful ERP implementation. Among these factors، CEO support is the most significant factor in implementing successful ERP، while the cost was identified as the least important factor. Furthermore، the variables of CEO support، reengineering process and project management، has caused the greatest customer satisfaction in ERP implementation.