IntroductionEnterprise Resource Planning (ERP) systems are core software programs used by companies to integrate and coordinate information in every area of the business. The Enterprise Resource Planning (ERP) is originated as an extension of MRP (Material Requirements Planning; later Manufacturing Resource Planning) and CIM (Computer Integrated Manufacturing). It was introduced by research and analysis firm Gartner in 1990. These systems can now be found in non-manufacturing businesses, non-profit organizations and even in governments.The following table summarizes the evolution of ERP: 1960:Inventory Management and Control (IMC) 1970:Material Requirement Planning (MRP) 1980:Material Resource Planning (MRP II) 1990:Enterprise Resource Planning (ERP) 2000:Extended ERP (Integration and Collaboration outside the window)ERP software supports the efficient operation of business processes by integrating tasks related to sales, marketing, manufacturing, logistics, accounting, and staffingthroughout a business. Ideally, ERP delivers a single database that contains all data for the software modules, which would include: Manufacturing: Engineering, bills of material, scheduling, capacity, workflow management, quality control, cost management, manufacturing process, manufacturing projects, manufacturing flow. Supply Chain Management: Order to cash, inventory, order entry, purchasing, product configuration, supply chain planning, supplier scheduling, and inspection of goods, claim processing, and commission calculation. Financials: General ledger, cash management, accounts payable, accounts receivable, fixed assets. Project management: Costing, billing, time and expense, performance units, activity management. Human resources: Human resources, payroll, training, time and attendance, benefits. Customer relationship management: Sales and marketing, commissions, service, customer contact and call center support, Data warehouse and various self-service interfaces for customers, suppliers, and employees. Access control - User privilege as per authority levels for process execution Customization - To meet the extension, addition, change in process flow.

Like every other segment of the IT industry, the ERP industry is evolving rapidly. The industry has clearly differentiated between very large enterprises and the small and medium business sectors. It is the second segment that is seeing rapid growth and the emergence of new players in the ERP business. ERP vendors are classified as Tier I, II or III depending on the kinds of clients they service. The three groups are very distinct and the size and complexity of their solutions are also very distinct.In general, the Industry classifies a Tier I ERP vendor as one that sells extensively to the Tier I market a market that has companies with annual revenues exceeding $1 billion. These companies are invariably multinationals with a presence in many different geographic regions. Naturally enough, Tier I ERP products have a high cost of ownership due to their complexity and costs of implementation and support. While there have been several Tier I vendors earlier, mergers and consolidations have shrunk the list considerably. The list of Tier I ERP vendors is now very small and consists of just two entries SAP and Oracle.Tier II vendors sell ERP products that suite mid-sized companies that have revenues in the range of $50 million to about $1 billion. The products of Tier II vendors are specifically built to handle this market and cater to a single or multiple locations of deployment. Naturally, Tier II solutions are easier to manage and support and cost correspondingly less as well. Often, Tier II solutions are confined to a specific industry vertical. This group sees considerable competition and is comprised of about 20 well-known companies.Tier III ERP solution providers target companies that have revenues of $10 million to $50 million. Solutions provided by these companies are simple to implement and support and have correspondingly lower cost of ownership. Many ERPs in this group are single location installations and built for a single vertical. While they are easy to manage and deploy, the risk is that a company could soon outgrow the solution and hence some kind of migration path must be kept in mind when a small but rapidly growing company selects a Tier III solution.The market of ERP is dominated by SAP, Oracle, Sage, Infor and Microsoft in that order and together they command a 53% market share.

Public-sector organizations are unique because of additional government regulation and public accountability. Because ERP software is standardized for universal best business practices, it is sometimes difficult for public-sector organizations to implement. The rise in popularity of ERP software and the evidence of continued ERP implementation in the public sector make it important for PSU leaders to understand the concerns and advantages of implementing ERP software.

Review of LiteratureIntroductionERP systems have been adopted by many businesses since 1990. ERP has transformed organizational computing by integrating business processes, sharing common data across the entire enterprise, and producing and accessing information in a real-time environment.The primary goal of ERP has been to improve and increase information flow within an organization. This is achieved by integrating departments and functions across a company onto a single computer system that serves the needs of all of the different departments. Integration and the sharing of a common database eliminate departments having to duplicate effort by keying the same information into different computer systems. Single entry of information also minimizes the risk of errors.Despite proposed benefits, many companies have had significant problems implementing ERP systems. ERP systems are notoriously complex, and installing the software often forces organizations to change their internal processes. These problems have caused many companies to abandon their ERP initiative or implement the system in limited capacity. Prior to ERP software implementation, processes may not have been efficient but they were simple. ERP forces departments to integrate and communicate across departments.The rise in popularity of ERP software and the evidence of continued ERP implementation in both the public and private sectors makes it important for school district leaders to understand the concerns and advantages of implementing ERP software.

History of ERPAccording to Gumaer (1996), accounting was one of the first business applications to be computerized. The first manufacturing software applications were limited generally to inventory control and purchasing and were the by-product of accounting software and the desire by accountants to know the value of inventory. The need for software specifically designed for manufacturing operations led to the development of material requirements planning (MRP), and subsequently, manufacturing resource planning (MRPII) packages.Material requirements planning software converted the master schedule for products into time-phased requirements for raw materials. The master schedule was used for planning and procurement. This software later evolved into manufacturing resource planning. In the early 1990s, manufacturing resource planning was further extended from production planning to cover other areas such as finance, human resources, and project management. Many manufacturing resource planning applications have evolved into ERP software.Although ERP vendors still use the same basic model as manufacturing resource planning for the manufacturing portions of their systems, ERP represents the application of newer information technology to the manufacturing resource planning model. These technology changes include the move to relational database management systems, the use of a graphical user interface, and client/server architecture. ERP software also expanded the scope of manufacturing resource planning to include other business areas, such as accounting and human resource management.Prior to ERP, businesses traditionally compiled, stored, and shared information on mainframe-based computing systems. These systems could handle huge amounts of data, but were usually expensive, rigid, and offered limited integration with other systems. As a result companies began moving to a client-server computing architecture. Using a server linked to a network of personal computers disburses computing power across a company and provides users with access to companywide information. At the time of the present study, many school systems were still using mainframe systems for both their business and student functions.Most ERP systems have been supported by client/server architecture. Miranda (1999) stated that the benefits of client/server architecture were (a) the elimination of a legion of manual logs and computerized databases, (b) process improvement opportunities permitted by single point of data entry, and (c) the ability for electronic workflow and web based technologies.

Definitions of ERPMany different definitions of ERP software were found in the literature. On the most basic level, ERP is a complex software system that ties together and automates the basic processes of a business. ERP systems are nothing more than generic representations of the ways a typical company does business. ERP attempts to integrate departments and functions across a company onto a single computer system that serves all of the different departments particular needs. ERP software is a set of applications that automate finance and human resources departments and helps manufacturers handle jobs such as order processing and production scheduling. Komiega (2001) defined ERP as the combination of software, hardware, and business processes, optimized to define a common solution for all aspects of a companys business from order entry to invoice and everything in between.

Industry Specific ApplicationsInitially, most ERP systems were designed for manufacturing companies which produce physical products. Companies that do not produce physical items found it difficult to implement and use ERP systems earlier. To minimize this difficulty, most ERP vendors now offer industry-specific solutions for non-manufacturing companies such as public sector and utility organizations.

Benefits of Implementing ERPERP Software is the enabling technology that allows an organization to automate a particular aspect of its business. The goal for any enabling technology is to allow an organization to more readily achieve its business mission. ERP users can achieve their business mission and gain competitive advantage from the way they implement the ERP system and exploit the resulting data.Al-Sehali (2000) identified seven benefits of an ERP system: (a) easier access to reliable information, (b) elimination of redundant data and operations, (c) reduction of cycle times, (d) cost reduction, (e) adaptability in a changing business environment, (f) Year 2000 enabled, and (g) Euro enabled. Organizations usually implement ERP software to accomplish one or all of the benefits listed above, hence the motivations for implementing an ERP system.An ERP system provides access to consistent data throughout the organization. Because ERP software uses a shared database management system, there is easier access to information by all departments within an organization. All departments enter information into the same database and thus all departments have access to the same information. This allows decisions to be made from an enterprise point of view, accessing information from all departments, rather than separate departments making a decision and then coordinating the information manually. One of the primary benefits of an ERP system is that it allows for global visibility of information across the company.Using a single database also reduces redundancy within an organization. Because the modules are integrated, there is no need for repetitious data entry between departments. Once data are entered by one department they can be accessed through the system by other departments. This eliminates redundant tasks within the organization. This also allows for standardization throughout the organization. The two of the three major reasons why companies undertake ERP are to standardize manufacturing processes and to standardize human resource information.For many organizations, ERP also reduces cycle times. Cycle time refers to the amount of time necessary to complete a business transaction from inception to completion. Time reductions are achieved by minimizing delays in flow of information between business units. ERP systems allow information to be communicated more quickly, via the shared database, than a nonintegrated system. A shorter communication time between departments can decrease the time required to complete business transactions such as an order.Cost savings is another benefit that can be achieved by implementing ERP software. An ERP system can reduce or eliminate general administration costs associated with the support and maintenance of multiple business systems. Running interfaces between different business systems in order to share information can be expensive because of the programming and data storage issues involved.One of the biggest gains from ERP packages is that they force a company to institute a proven set of business processes. In addition, ERP systems also allow companies to turn on and off functionality as needed to adapt quickly to changes in their business, whereas a customized application has to be rebuilt. ERP systems are designed to respond quickly to new business demands and can be changed to respond to the changing environment. Most ERP software vendors purport flexibility as one the advantages of the software.New processes can be caused by technology, such as the move from client-server architecture to Internet architecture, or by changes in the business environment, such as the current emphasis on supply chain management and customer relationship management. ERP vendors are constantly evolving to meet the changing business demands and to allow the organization to move nimbly and adapt quickly to changes in the business environment.The summaries of benefits sought of ERP based on review of literature are as follows: Enhanced company operation through streamlining, improving and controlling business processes of major importance such as procurement, customer offers, customer complaints, equipment maintenance, marketing campaigns and others significant activities Cost-reductions and time-savings in all the above mentioned business processes. Ability to manage service related personnel and related costs through the use of the resource management module of the system. In the past, the company could allocate only the productive resources cost to each company activity. Now by taking advantage of the resource management (timesheets) module of the system, the enterprise is able to manage the cost of the service personnel (engineering, R&D departments, etc.) involved. Upgraded use of the companys already operating quality management system, which was not supported by an information system. The use of the proposed ERP system enabled the enterprise to avoid much paperwork, to reduce personnels occupation times with quality management issues and to provide report insight to the management. Flexible and efficient production planning by implementing the manufacturing management (scheduling) module of the system. Project delivery times and idle times were reduced significantly, productivity was raised, more precise delivery time assessment incurred stock level minimization and customer satisfaction improved. Facilitated communication and data transfer of critical information for the whole enterprise. Now employees have instant access to real-time data, documents and reports that concern their duties. View of information flow is fully customized according to each user position. Finally, the company exploited the abilities to control sales and promotion activities through the system, received quantitative data about the results of each promotion technique and managed to increase sales department efficiency.

Here are some areas to look for possible ROI and cost saving: Reduce inventory through better visibility and efficiency Savings through the reduction in duplicated efforts More efficient operations allowing for increase in ability to process transactions (added capacity) Reduction in non-value added activities (lean processing) Higher utilization of employees (less transactional, more analytical) Improvement in decision making through more accurate and real-time data

Drawbacks of ERP ERP systems have evolved and have become very complex, offering a lot of useful features for all areas of a business operation, but there are also drawbacks. Following are the main drawbacks of ERP system.

CostUsually, ERP solutions are very expensive and only large companies can afford them. Introducing an ERP system may also require additional acquisitions or modifications in the internal infrastructure of the company, so the implementation costs can rise considerably. Also, training of the employees will also be mandatory, which means further expenditure in order to have an effective working ERP system.

TimeThe implementation of an ERP system is not a particularly time-consuming task, but training employees to correctly and effectively use the ERP system can be. They need to be well informed about the features and procedures, otherwise the whole ERP system will prove to be inefficient and the investment of money and time will be in vain.

EfficiencyEven though an ERP system should improve efficiency if implemented and used correctly, the training and adaptation period immediately following implementation could be rocky as the organization adjusts to the new ways.CustomizationERP systems are either not very customizable, or customization involves a lot of time and money. Few systems are ready to use out-of-the-box. Some systems may also require other software programs, a fact that might make the processes more complicated or even impossible in some cases.Data IntegrityIntegrating an ERP system with other software might need the software to be modified. As a result of integration, security breaches and data leaks might appear. The effects of such data leaks can be disastrous.Implementation Critical Success FactorsSuccessfully implementing ERP the first time requires a structured methodology that is strategy-, people-, and process-focused. The major critical success factor for ERP implementation was top management support and involvement. If an implementation does not have top management support, the implementation can fail to meet desired expectations. Other factors relevant to a successful implementation are managing change, having a clear understanding of the objectives ERP is to serve in the company, providing adequate training, and reassuring employees of job security.According to Bingi, et al. (1999), there are 10 critical issues that contribute to the success of an ERP implementation: top management commitment, reengineering, integration, ERP consultants, implementation time, implementation costs, the ERP vendor, selecting the right employees, training employees, and employee morale.

Top ManagementTop management support, was instrumental in explaining ERP implementation success. Top management must take an active role in leading the ERP implementation. The success of a major project like an ERP implementation completely depends on the strong, sustained commitment of top management. This commitment when transferred down through the organizational levels results in an overall organizational commitment.Management must be involved in every step of the ERP implementation. Some companies make the grave mistake of handing over the responsibility of ERP implementations to the technology department. This risks the entire companys survival because of the ERP systems profound business implications. An overall organizational commitment that is very visible, well-defined, and felt is a sure way to ensure a successful implementation.If top management is not strongly committed to the system, and does not actively participate, the implementation has a high likelihood of failure.

ReengineeringImplementing an ERP system involves reengineering the existing business process to the best business process standard. ERP systems are built on best practices that are followed in the industry. The cost and benefits of aligning with an ERP model could be very high. Research shows that even the best ERP application package can meet only 70 percent of the organizational needs. In order to accomplish the remaining 30%, an organization has to change its processes to conform to the ERP package, customize the software to suit its needs, or not be concerned about meeting the balance.Automating existing redundant or non-value added processes in the new system can cause an implementation to fail. An ERP system will clearly change the normal mode of operation within and between functions, but it will also change many social systems throughout the organization. If people are not properly prepared for the significant changes that need to take place, the natural reaction will be resistance to change which may sabotage the entire implementation.

IntegrationTrue integration, moving away from departmental independence and creating dependent, effective, cross-functional processes should be a primary goal for successful ERP implementation. Functional silos (departmental independence) define the organizational boundaries where information flows, and often cooperation stops. ERP must be fully integrated into daily business operations in order for an organization to realize the full benefits. If enterprise integration is to have any chance of complete success, it will be due, to a large extent, to the removal of traditional cross-functional barriers.With tight integration, companies must also be aware of the potential risks of the errors. Organizations should have mandatory training classes to educate employees about how transactions flow through the system and how errors affect the activities and departments within the organization. If inaccurate data is entered into the common database, the erroneous data may have a negative domino effect throughout the enterprise. Inaccurate data can lead to errors in payroll and materials management. If a company with inaccurate data just forges ahead under the assumption that data errors will be corrected when they are spotted, the ERP will lose credibility.

ERP ConsultantsFinding the right ERP Consultant and keeping them through the implementation can be a major challenge. ERP implementation demands multiple skills functional, technical, and interpersonal. Consultants with specific industry knowledge, such as public sector, are fewer in number. The success or failure of the project depends on how well the organization can manage consultants and the necessary knowledge transfer between consultants and internal employees .

Implementation TimeThe extent of customization required to meet the needs of a specific type of business contributes to the implementation time. This customization takes a long time, depending on the specific requirements of the business. The length of implementation is affected to a great extent by the number of modules being implemented, the scope of the implementation, the extent of customization, and the number of interfaces with other applications.

Implementation CostsThe total cost of implementation could be 3 to 5 times the purchase price of the software and can equate to 50% of the total implementation project costs. The implementation costs increase as the degree of customization increases. The cost of hiring consultants can consume a large portion of the overall budget for the implementation. Retaining skilled employees can be expensive as well. Employees could double or triple their salaries by accepting other positions; thus, an organization may have to be prepared to increase the salaries of project team members. Project managers must remain cognizant of the implementation costs and seek to minimize these costs.

ERP VendorsSelecting a suitable ERP vendor is extremely important in a successful ERP implementation. Finding a company with financial stability is essential when implementing an ERP. In addition, organizations must consider the vendors market focus, track record with customers, vision of the future, and with whom the vendor is strategically aligned.In addition to finding the right ERP vendor, companies must also have realistic expectations of the capability of the ERP system. A fully integrated system requires not only an effective information system, but also the corporate philosophy to support it. A company must know what to realistically expect from the vendor when implementing ERP software.Since ERP systems force customers to re-engineer their current business practices to fit the ERP model, selecting the wrong ERP vendor could result in an unwilling commitment to architecture and applications that do not fit the organizations strategic goals. Selecting the wrong vendor causes the organization to either completely overhaul all business processes or to add modifications to their system which are difficult to manage and strongly discouraged by ERP vendors. Excessive organizational change and system modifications have a negative effect on achieving a return on investment. Some of the biggest ERP system implementation failures have occurred because the new softwares capabilities and needs are mismatched with the organizations existing business processes and procedures. An ERP system that is not designed to meet the specific business needs of the company can cause tremendous problems.

Selecting the Right EmployeesCompanies implementing an ERP system must be willing to dedicate some of their best employees to the project for a successful implementation. Often companies do not realize the impact of choosing the internal employees with the right skill set. Internal resources of a company should not only be experts in the companys processes but also be aware of the best business practices in the industry. Internal resources on the project should exhibit the ability to understand the overall needs of the company and should play an important role in guiding the project efforts in the right direction. Lack of proper understanding of the project needs and the inability to provide leadership and guidance to the project by the companys internal resources is a major reason for failure of ERP projects.

Training to EmployeesTraining and updating employees on ERP is a major challenge. People are one of the hidden costs of ERP implementation. Without proper training, about 30 to 40% of front-line workers will not be able to handle the demands of the new system. The people at the keyboard are making important decisions about commitments of the company. They need to understand how their data affects the rest of the company. Some of the decisions front-line people make with an ERP system were the responsibility of a manager in former systems. It is important for managers to understand this change in their jobs and encourage their frontline people to be able to make those decisions themselves.Top managers and all system users must be fully educated so they understand how the ERP system should be integrated into the overall company operation. All users must be trained to take full advantage of the systems capabilities. A failure to educate and train all relevant personnel will guarantee implementation problems.

Employee MoraleEmployees working on an ERP implementation project work long hours. The stress of implementation coupled with regular job duties could decrease their morale. Leadership from upper management and support of project leaders should seek to boost the morale of these team members.People may be fearful of changes brought about by any new system, especially one as pervasive as an ERP system. They may fear that the new system will make their jobs more difficult, reduce their importance, or even cost them their jobs. Subsequently, ERP systems may create a great deal of uncertainty in some people as to whether or not they will be able to perform their jobs as well as they did under the old system.The negative effect of morale can even cause fear in veteran employees. Because people must create new work relationships, share information that once was closely guarded, and make business decisions they were never required to make, employees can become intimidated by the new ERP software. These kinds of changes are marked by resistance, confusion, redundancies, and errors, unless managed properly

Implementation Failure FactorsAccording to White paper on Implementing ERP in public sector enterprise: Nine Sure way to Fail Success of Bearing point, following the mistakes which every PSU may avoid at the time of implementing ERP to avoid implementation failure.

Assuming there is a natural consistency for ERPIf we brought together all the agencies, divisions and departments and asked how many wanted to implement standard business processes across the enterprise, what do we would hear? Dead silence. At least, that is what has happened in other public-sector organizations that undertook large ERP implementations. The agencies tend to be strongly opposed to losing control of administrative operations and each can justify why its unique mission merits special attention.While agencies do differ in important respects, they share many business requirements. All have to manage a budget, recruit people, distribute payroll, generate purchase orders and so on. ERP solutions provide a standard, uniform way of performing these functions, so the enterprise can reduce duplication, produce meaningful information and cut administrative costs.How can the public sector reap these benefits? Since there is no natural constituency that puts the needs of the enterprise ahead of its own, you have to build one. Someone at the very top of the organization must have the vision, understand the benefits and get the message out.

Treating technology as a the key challenge to successThe technical challenges of implementation are a simple matter compared with the human challenges. In fact, where implementations have failed, 70 percent of the reasons stem from neglect of the human side of the equation, the Gartner Group reports. Among the causes: Inadequate training and preparation. Little or poor change management. Lack of communication. Low levels of user involvement. Adversarial relationships with private-sector partners. Poor project management.That is why change management is such a critical factor in successful implementation.

Skimping on the front end Preparing for implementationThere is no way around it. Planning and preparing for an ERP project is a complex and resource intensive undertaking. But if we do not invest in these activitieswhat we call Phase Zero - we are setting ourselves up for problems down the line, when they are more difficult and costly to address.One of the key steps in planning is evaluating how we do business today. This involves not only the procedures outlined in business manuals but the processes people are using in practice. We have to determine how the work is actually being done; otherwise, we will be taken by surprise when we develop the system.

Trying to everything at a onceAll-at-once approach to systems implementation is extremely risky. For public-sector organizations, where go live must be a success, phased implementation is a better way to go.Implementing waves of functionality-specific modules serve multiple purposes: Early successes build support and momentum. Problems can be corrected before moving on. Training activities can be staged to make efficient use of resources. Phased implementation puts a reasonable load on the help desk and support staff.ERP solutions can also be implemented in waves of business units. First, identify the most eager agencies and include them in the first group, then adjust to ensure heterogeneous representation. Since ERP projects affect large numbers of people, and few organizations have the capacity to train everyone at once, the phased approach can spread out the burden on training bandwidth. When ERP is implemented in waves, the members of the first group can serve as mentors to prepare and train the next wave.We would do much better by concentrating on getting the system up and running with the basic functionality initially. By keeping it simple, we can declare success, get people on board and add more features as we move forward.

Providing the bare minimum support for usersUsers expect and will tolerate some problems: unfamiliar screens, forgetting what they learned, not knowing how to do things the new way, and lower productivity in the early days. What they will not tolerate is lack of support -they expect a help desk.Training is a similar matter. While everyone agrees that training is important, it is how we conduct training that determines what users learn and remember, as well as their attitude to the project. The natural tendency is to teach the transaction: for example, how to enter an invoice. But training should be providing complete understanding of business process, including how we move from purchase to payment. Finally, do not waste money on reproducing large binders of useful information. Users will not read it. Instead, they want short, easy-to-scan documents that cover how-to basics.

Underestimate the resources requiredEvery organization underestimates what it will take to implement an ERP solution. While the budget people carefully calculate the direct cost-software, tools, hardware and consultants but they overlook many indirect costs. Take personnel, for example. An implementation will consume much more staff, among a much larger group, than those dedicated full-time to the project. Most organizations make the mistake of assuming that the project staff will be able to do everything it did before the ERP implementation project started. In fact, the rest of the staff will have to take on those responsibilities. The best thing we can do is set realistic expectations early on, letting managers and staff knows what is ahead, so they can prepare to help.Defining requirements also takes a huge staff toll. Few clients realize that they will need a requirements workshop for each business process that will be affected by the new system. There can be up to 50 business processes, and each workshop will take one-half to two days and involve roughly 20 peoplewhich adds up to thousands of staff hours.And this does not take into account training -another element that takes people away from their day-to-day responsibilities. Whether it is computer based or instructor-led classroom training, we can expect each employee to require two hours, two days or two weeks of training. It adds up in ways that few executives imagine.

Overestimating how many Best Practices will be adoptedEvery ERP solution includes industry best practices- basic business rules for managing finances, human resources and procurement, for example, that have been proven over time. But when evaluating an ERP package, it is important to be realistic. The real issue is not how many best practices are built into the package, but how many your organization will actually implement, and how many compromises will be decided to make.Sometimes there is a reason for not making a change, for legal or contractual reasons or the precedents of the past. In most cases, however, changes to the basic package are not necessary.To accommodate the familiar, the organization must write a complex user exit or program to replicate current processes. And every time we modify the software to create a user exit, we slow down the project, add costs and impact future upgrades. In other words, changes quickly increase our total cost of ownership. To get the highest return on our investment, we need to evaluate the options carefully, avoid modifications wherever possible and set realistic expectations for payback.

Taking myopic view of the projectERP implementations are complex, highly visible and vital to an organizations success. It is easy to get buried in the business of drafting requests for proposals, evaluating responses and implementing the selected solution. But leaders must keep an eye on the big picture as well, and this means paying attention to external factors that will impact the project. Budget health: An ERP project is a multiyear undertaking, crossing budget cycles. It is essential that funding be committed for the duration of the project. Administrative changes:In government, there may be a change in leadership and structure over the course of the project. The project design should take such timelines into account, building in the major functionality before the administration changes. Labor contracts:Determine when contracts are renegotiated and be aware that the ERP implementation may quickly become a focus for employee unions.

By considering the long term and planning ahead, we can create a plan that overcomes these bumps to produce a successful implementation.

Let the Deadlines SlipBusiness units, agencies, departments, divisions and programs will always have reasons why they cannot meet the project deadlines. But once we start to let the schedule slide, we create a climate where it will happen again and again.This is why it is so important to treat milestone dates as sacred. While we should never compromise on quality, we must create a sense of urgency throughout the project. We accomplish this by requiring all milestone changes to be justified and approved by the steering committee, a group of high-level executives committed to the projects success. We can help accelerate the process by giving project team leaders the authority to make day-today decisions without an elaborate approval process.

ERP Implementation in the Public SectorA public-sector ERP system implementation is often more complex than a private-sector one because there is often a Gordian knot of regulations, boards, commissions, and agencies that must be disentangled to complete the project. In addition, there tend to be lots of turf wars. One of the barriers to implementation of ERP technology in small and mid-size PSUs is the cost of system implementation. Many ERP vendors provide special software licensing programs for this market. Some small PSUs have been unable to take advantage of ERP software because of the expense.In selecting ERP software, public sector organizations usually compare their existing processes to best practices and focus on creating minimizes software modifications.Public-sector organizations may have specific requirements not applicable to private organizations. In addition, the cost of implementing an ERP system also may make it prohibitive for public-sector organizations to implement. If an ERP vendor only designs software for the public sector then he may not be following universal best business practices. However, transporting business practices to the public sector may not be desirable or even possible. Some also may point out that the greater burden of accountability in the public sector is entwined in processes that appear cumbersome or redundant to those from the private sector.Despite the barriers to implement, at the time of this study, many public-sector organizations, had implemented an ERP system. i.e NTPC, ONGC, IPCL, OIC, BSNL etc.Brief of ERP Project implemented in BSNLProject ObjectiveThe objective of ERP system is to improve the information flow to facilitate better decision making leading to overall improvement in the performance of the organization by way of improvements in information transparency productivity, cycle time & financial performance. This project is aimed to provide effective and efficient business processes which will aid in better decision making and thereby improved operational efficiencies. HCL is the System Integrator (SI), who along with E&Y as the Business Process Re-engineering (BPR) partner & SAP as the Software Solution Provider (SSP) is implementing this project. The project is being executed in two parts. Firstly, as a proof of concept (POC) the ERP Application is to be implemented in seven units of BSNL, namely, Corporate Office, Karnataka Circle, Maharashtra Circle, Southern Telecom Region (STR), Western Telecom Project (WTP), Telecom Factory Mumbai and ALTTC Ghaziabad. Secondly it would be rolled out in the rest of 42 units of BSNL during the second phase of the project. Data center The application has been hosted in a centralized server located at Data Centre (DC) Hyderabad with Disaster Recovery (DR) site at Kolkata for the project. These data centers are co-located with CDR data centers at both the locations.There are three categories of servers. Development server is the server in which the application is developed. Quality server is used for testing the developed application and also for providing training. Production server in which the application will finally reside for the end user for live data to day transactions. The end users will be interacting with the production server only.

ERP Center/ Core teamThe ERP center is located at ALTTC campus, Ghaziabad. The ERP Core Team comprise of about 125 officers of the rank of GM, DGM, AGM/DE/CAO, DM/SDE/AO, AM/JTO/JAO who had developed/ customized the SAP software, as per business needs of BSNL and re-engineered Business Process recommended by E&Y and approved by BSNL. The ERP centre will be the backbone of the ERP project in terms of know how training & other help required, in ERP solution and take necessary action for addressing the problem with the ERP solution. Circles implementing ERP or working on ERP, having any problem may approach ERP core team/ centre for appropriate action as per the change management procedure. ERP solutionThe currently developed solution of ERP comprise of eight modules which area) Finance And Management Accounting-FICOb) Materials & Inventory Management including E-Procurement -MM/ SRMc) Human Resources Management & Administration, Payroll-HCM/ESS/MSS d) Plant & Equipment Maintenance -PMe) Sales and Distribution-S Df) Project Management-PS

In addition, following two modules are planned to be developed which areg) Business Information System, Business Intelligence & Analytics -BISh) Enterprise Strategy Management- SEM

Project Execution overviewa) AS-IS-The existing processes of BSNL were captured and documented. b) BPR-Business Process Re-engineering. The consultant evaluates the existing practices and compares with the best industry practices. Finally the consultant submits it recommendations. These recommendations are discussed in details with the BSNL Sr. Management for acceptance.c) BBP-Business Blue Print. A final document is prepared covering the re-engineered process which is accepted and approved by BSNL for solution design in ERP. d) Solution development-As per the final BBP, the solution in the SAP is developed. This is very different from the computerization of the existing processes. While implementing SAP, the biggest advantage is the seamless integration of the business processes. The views of the SAP experts are that one should make maximum efforts to adopt the SAP practices without any or minimum modification. This way the best benefit of SAP is obtained.e) Testing -The solution developed is tested. First the individual modules are tested. After that the integrated modules are tested.f) Collection of data-BSNL Data is the most important element. The better is the data the better results are obtained.g) Training-Trainings are given to the end users on how to work on the solution developed.h) Go-live-A typical terminology used in ERP project indicating the start of usage of the system by the end-users.

Benefits of ERP envisaged in BSNLa) Visibility of inventory across units and better control over inventory position and cost.b) Reduced inventory holding cost and better & informed purchase decision.c) Efficient and on-time asset managementd) Visibility and information on assets across organization for better utilization and / or commercial exploitation.e) Effective AMC tracking and vendor managementf) Better Budget and Funds management and controlg) Consolidated finance and accounts view for the entire organization on the click of the mouse.h) Profit center accounting (LOB wise) and cost control and management across BSNL Units.i) Better management of Projectsj) Faster Bank reconciliation and automated check printingk) Centralized & Integrated IT systems leading to high transparency, visibility of information and data accuracy. l) Centralized Operations leading to Standard and optimal procedures m) Consolidation of Tax Service Tax, TAN etcn) Switch over to e Procurement from existing Manual Tendering process

User Access Network for ERPIt has been decided that use of CDR network will be made wherever it is available. Thus 95 % of the users will get covered in this. For balance locations, provision of LAN/ router need be planned see Annex-1 for details. The non territorial circles should get connected to territorial circles wherever possible.ERP UsersThere shall be two types of users viza) Executives it is expected that about 50% of the executive staff shall be involved with working on CORE ERP system in terms of correction / modification / updating / approval / forwarding notification. The staff working at customer service centers and involved in selling of Mobile inventory (RC, Top up) and the staff dealing with franchise / DSA will also use CORE ERP system. For using core ERP system the executive / employee will requires installation of SAP client on the PC.b) All other employees shall use the Employee Self Service (ESS) Licenses of ERP which will enable the employee to do individual transactions viz. Apply leave, GPF etc. Similarly Manager Self Service (MSS) would be used by Managers to provide approvals of the ESS applications. ESS and MSS work on Internet Explorer / Browser. TrainingThe training to be divided into following categories:a) Filling up data templates using Mantisb) End user training to learn to transact business transactions through SAP.c) Senior management training on BSNL processes and reports in SAP.d) Post go live trainings / workshops.

It is planned to provide training to power trainers of circle (RTTCs, Circle HQ) in ALTTC / BRBRA TTC so that these power trainers can train the remaining staff of their circle.Data collection for ERPa) IT tool MANTIS is being used for this purpose. It will be made available on internet.b) Brief about Mantis: Mantis is an IT tool, a software, which is mainly used for activity escalation and forwarding. A document can also be attached with the issue. The activity escalation property of the software is being utilized for uploading data templates and follows the route: SSA -> Circle -> HCL -> Core team -> HCL -> Final upload. Hence the starting is done by creating an activity by the core team, module wise. The core team will create the activity and intimate which blank template is to be downloaded.c) SSA / Circle team to study the activity created in Mantis and according download the required template from ERP portal. d) SSA / Sub regions to fill up the data template as per the instruction / guidelines.e) The SSA will then upload the template in the ERP Portal (Mantis) and forward to circle team in Mantis. Circle team after validating the data should forward it to HCL.Support levelsThere will be about two Power user of each module. The Power user will be responsible to solve day to day issues and to escalate the same to the next level if required.a) SSA/Unit Level Power Users-L1b) Circle Level Power Users- L2c) Central Level Power Users (Core team at ERP centre) - L3Interfacesa) ERP- Sancharsoft Interface: - The Retail sale to the end customers will be done from Sancharsoft. The retail sale data will be fetched from SancharSoft to ERP through an Inbound Interface at the end of the day. The sale to Franchisees/ DSAs etc will be done through ERP.b) ERP- Pyro Interface:- The order for C-Topup sales will be created in ERP and Franchisee/CSCs C-Topup account will be credited through an outbound interface between ERP and Pyro System. Day end sale data of CSCs will be fetched from Pyro system to SAP through inbound interface between Pyro & ERPc) CDR ERP for refund to the customers. For printing refund cheque only customer-wise details will not be maintained in ERP.d) HR Package - This will be completely taken over by ERP.

SummaryIt may be concluded from this review of literature that many factors contribute to a successful ERP implementation. Most of the researchers agreed on the benefits of ERP systems and the critical factors necessary for a successful implementation. In addition, researchers agreed that the absence of the critical factors and the failure to properly prepare for the ERP implementation, can contribute to the failure of an ERP software implementation.In regard to the benefits sought through implementation, researchers agreed that ERP software allows for increased communication within an organization. Many organizations seek to implement ERP systems in order to achieve easier access to reliable information, elimination of redundant data and operations, reduction of cycle times, and cost reductions.In regard to critical factors for a successful implementation, researchers consistently cited top management support as the most critical factor for successful implementation. The research indicated that project managers must carefully monitor implementation activities to ensure that the critical factors are present during the ERP implementation. Monitoring and remaining cognizant of these factors can enable organizations to have a successful implementation.ERP implementation in the public sector has been limited due to the high cost to implement. However, some public sector organizations such as ONGC, HPCL, IOCL have successfully implemented ERP software. Many of the factors that are required for successful implementation in the private sector are also required in the public sector. Also, many of the public sector organizations implement ERP software seeking the same benefits as private sector companies. However, managing the critical factors during the implementation in the public sector may be more difficult because of the increased government regulation and public accountability.

Research Methodology

IntroductionIn this chapter, the methodology and procedures used to conduct this study are described. This chapter divided into two sections. The first section contains statement of problem and second section contains details regarding research methods adopted for the study. Statement of ProblemObjectivesThe purpose of this study was to determine the following: The benefits sought from implementing ERP. The extent to which critical factors were present during the ERP software implementation. The level of satisfaction with the performance of implemented modules among the ERP users.

Importance of the studyThe implementation of ERP software has been continuing to grow in the private as well as in public sectors. Thus, it is important that organizational leaders have information to make intelligent decisions regarding implementation of ERP. It is also important that organizational leaders understand the issues with which they could be faced while implementing ERP. This study extended to determine the factors affecting ERP implementation this knowledge will allow organization leaders to make more informed decisions while implementing ERP. Also, this study aims to find out the expected benefits of the ERP implementations which may cause the public sector undertakings to implement ERP. It was intended to provide data that would assist organizational leaders in making informed decisions when implementing ERP by supplying information as to the concerns and satisfaction with ERP implementation. Information from this study may be useful in determining how well the needs and expectations of other organizations have been met when implementing ERP.

Limitation of study1. This study is delimited by subjective opinions obtained from the employees of BSNL from those states where ERP is implemented. Employees of BSNL from other States are not included in study.2. The study is also delimited by opinions obtained from the employees of BSNL who are using FICO, HCM, MM, PS & PM modules of ERP as other modules yet not implemented in BSNL.3. BSNL being 100% owned Government Company and involved in service industry having different working culture compared to other Public Sector Undertaking. Hence, the conclusion of this study may not directly applicable to all other PSUs.

Assumptions of studyIt was assumed that the survey instrument developed would permit the assessment of ERP users perceptions regarding the advantages, and concerns of implementing ERP systems and that all respondents conveyed their honest opinions.It is also assumed that the perceptions of users of other modules of ERP which are not implemented in ERP are same as that of users of ERP modules implemented in ERP.

Research MethodResearch MethodThe purpose of study to report the effects of ERP implementation in PSUs which is based on survey of BSNL employees and as the researchers have no control on variables, Survey based Descriptive Research method used.

PopulationThe population for this study consisted of those individuals who were using ERP in Public Sector Enterprise in India

Sampling unitBSNL, a Public Sector Enterprise in India which has implemented various modules of ERP software recently is used as a sampling unit.

Sample sizeA sample of 384 ERP users of BSNL was taken for this study.

Sampling MethodConvenient Sampling was used to select samples for the survey from all modules of ERP which were implemented in BSNL. Also, at the same time snow ball sampling used get required number of response for each module.

Research QuestionsThe following research questions will serve to guide this study.1. What were the benefits sought in the implementation of ERP software in public sector organizations?2. To what extent were critical factors present during the ERP implementation? 3. To what extent were the respondents satisfied with performance of the implemented ERP modules?Data SourceThe study was based only on Primary Data. Primary Data was collected via a structured survey instrument designed by the researcher. This instrument was based on the review of literature on ERP system implementation. The instrument developed, was reviewed and modified based on feedback from ERP users.This survey instrument was composed of three parts which included: expected results and benefits, implementation critical factors for success and level of satisfaction of each module implemented.Part 1 of the survey instrument addressed Research Question 1 by asking questions regarding the benefits sought and realized by implementing the ERP software. Respondents were asked (a) expected and realized (b) expected but not realized, (c) not expected but realized, or (d) not expected and not realized the stated benefits.Part 2 of the instrument addressed Research Question 2. This section asked the respondents to indicate if the stated factors were present during their implementation (Yes, Somewhat, No).Part 3 of the survey addressed Research Question 3 by asking questions regarding the level of satisfaction with each module implemented.

Data CollectionThe survey instrument was prepared in Google forms and the link to fill up the survey was sent via email to ERP users in BSNL. The e-mail explained the purpose of the survey and the importance of participating in the research project. Reminder mail was also sent to non- respondents to further encourage participation and to maximize the response rate.In order to analyze the first research question, that sought to find information regarding the benefits sought in the implementation of ERP software, Part 1 of the survey instrument was analyzed for frequencies of responses.In order to analyze the second research question that sought to find information regarding the critical success factors present during the ERP implementation the Part 2 of the survey instrument was analyzed for frequencies of yes, somewhat and no responses.In order to answer the third research question that sought to find information regarding the modules implemented and the level of satisfaction with those modules, responses to Part 3 of the survey instrument were analyzed for frequencies of responses. The responses to the level of satisfaction were coded using 4- point scale (Very Unsatisfied = 0, Unsatisfied = 1, Satisfied = 2, and Very Satisfied = 3). Lastly, the mean values of the four groups were compared to determine the module which giving maximum and minimum satisfaction to its users.

Data AnalysisIntroductionThis chapter provides an analysis of the data gathered in this research study. The chapter is divided into four major sections: Introduction, Research Question 1, Research Question 2, Research Question 3 and Summary.The purpose of this study was to determine the following: (a) the benefits sought from implementing ERP (b) the extent to which critical factors were present during the ERP software implementation and (c) the level of satisfaction with the performance of implemented modules among ERP users.The data for this study were collected through survey of BSNL employees who were using ERP. A survey was sent to about 1000 employees via electronic mail directly or indirectly from the researcher. A total of 408 surveys were received and out of that 384 suvery were usable.Table 1 presents the breakdown of ERP module wise responses received.Graph 1 given below shows the weightage of each module in useable survey received.

Above graph clearly shows that responses received from all the four modules were nearby same. It means, equal weightage given to each of module of ERP implemented in BSNL for the research study.

Research Question 1What were the benefits sought in the implementation of ERP software in public sector organizations?In order to provide an answer to Research Question 1, respondents were asked to indicate in Section A of the survey instrument if they had/had not expected and/and not realized the stated benefits. Respondents were requested to indicate whether they had expected and realized, expected but not realized, not expected but realized, or not expected and not realized the stated benefit. The results, displayed in Table 2, provides the frequencies of responses for each of the stated benefits, sorted in descending order by the benefit which received the highest Expected and Realized responses.The results indicate that easier access to reliable information (297, 77.34%) and increased standardization of processes (282, 73.44%) had the highest number of positive responses (expected and realized). The benefits of realized a return on investment (161, 41.93%) and software that is easily adaptable to business changes (153, 39.84%) received the highest number of expected but not realized responses. In addition, 5.99% (23) of the respondents indicated that they did not expect, but realized, redesigned business processes.

Graph 2 below shows the mean value of various benefits with respected to expected/not expected and/but realised/not realised.

The mean value shows that 57% expected benefits realised while 30% expected benefits unrealised. Also, 3% unexpected benefits are realised while 10% benefits neither expected nor realised. The results were further analyzed for expected and not expected benefits by combining the number of responses for expected and realized and expected but not realized. The responses for not expected but realized and not expected and not realized were also added together. The results appear in Table 3 sorted by the benefit which received the highest number of expected responses.

Graph 3 below shows the mean value of all benefits expected or not expected

Above Graph shows that 87.05% benefits were expected while 12.89% benefits were not expected by responders.However, at least 79.17% (304) of the respondents indicated that they expected to realize each of the stated benefits. The benefits of easier access to reliable information, increased standardization of processes and the ability to produce better reports with the information I need, received the highest number of expected responses, (375, 97.66%), (354,92.19%) and (353, 91.93%) respectively. The benefit which received the most not expected responses were realized a return on investment (80, 20.83%), software that is easily adaptable to business changes (69, 17.97%) and Improved customer (internal/external) relationship or supply chain management (65, 19.93%)The results were also analyzed for realized versus not realized benefits responses. The responses of expected and realized and not expected but realized were combined. The responses to expected but not realized and not expected and not realized were also combined. Table 4 displays the results, sorted in descending order by the benefit which received the highest number of realized responses.Graph 3 below shows the mean value of benefits realised and not realised.

Above Graph shows that 60.05% benefits were realised whether there were expected or not while 39.95% benefits not realised whether they were expected or not.Overall, the benefit which received the highest number of realized responses was Easier access to reliable information (300, 78.13%). The benefits of Increased standardization of processes and Redesigned business processes both received 77.08% (296) of the responses as having been realized through the ERP system implementation.Benefits which received the highest number of not realized responses were Realised a return on investment (229, 59.64%) and Software that is easily adaptable to business changes (219, 57.03%).

Research Question 2

To what extent were critical factors present during the ERP implementation?In order to provide an answer to the second research question, respondents were asked to indicate the extent to which stated critical factors were present during their implementation (Yes, Somewhat, or No). The results, displayed in Table 5, sorted in descending order by the factor which received the most yes responses, show the frequencies and percentages of responses for each of the critical factors.The critical factor, Top management was kept abreast of project status (320, 83.33%) and the implementation had top management support (287, 74.74%), received the highest number of yes responses. The critical factor, the organization was prepared to manage change (161, 41.93%) and the ERP software was modified to meet our needs (152, 39.58%) received the highest number of no responses.

Research Question 3To what extent were the respondents satisfied with performance of the implemented ERP modules? In order to answer the third research question, respondents were asked to indicate the extent to which they were satisfied with the performance of the stated ERP modules by indicating they were Satisfied, Very Satisfied, Unsatisfied, or Very Unsatisfied. The results displayed in Table 6 show the frequencies of responses for each of the stated modules. The table is sorted in descending order by the module which received the highest percentage of Very Satisfied responses.The results were analyzed for responses received for Satisfied and Unsatisfied responses by combining the number of responses for Very Satisfied & Satisfied and Unsatisfied & Very Unsatisfied. Table 7 displays the results, sorted in descending order by the responses received the highest number of Satisfied & Very Satisfied in percentage.The users of FICO Module were most satisfied users of ERP as it received the highest number of very satisfied & satisfied response (84.69%) while the users of MM Module are most unsatisfied users of ERP in BSNL (28.87%).

Finding and ConclusionSummary of finding

Research Question 1What were the benefits sought in the implementation of ERP software in public sector organisation?This study supported and strengthened what was found in related research as to the benefits sought in the implementation of ERP software in public sector organizations. The data from the present study indicated that at least 79.17% of the respondents expected to achieve the stated benefits. The greatest percentage of respondents (97.663%) expected to receive easier access to reliable information. This would imply that organizations are implementing ERP systems with a primary expectation of achieving easier access to accurate and current information.The respondents answers were used to further determine if the benefits were actually realized by organizations who have implemented ERP systems. At least 40.36% of the respondents indicated that they had realized all of the stated benefits. This indicates that more people expected to achieve the stated benefits than those who actually realized them.The greatest percentage of respondents (78.13%) realized the benefit, easier access to reliable information. This would imply that the primary benefit gained from implementing an ERP system is easier access to reliable information.The greatest percentage of respondents (59.64%) indicated that they did not realize the benefit of Return on Investment. This may indicate that this benefit is not realized in the ERP system implementations.

Research Question 2To what extent were critical factors present during the ERP implementation?The responses implied that respondents felt that most of the critical factors were present during their implementation. The only factor receiving a high number of No responses was the organization was prepared to manage change (41.93%).The factor that ranked the highest, indicating that the factor was present in most of the implementations, was top management was kept abreast of the project status (83.33%). The implementation had top management support (74.74%), received the second highest number of Yes responses.

Research Question 3To what extent were the respondents satisfied with performance of the implemented ERP modules? At least, 71.73% users are satisfied with ERP. The responses implied that respondents were satisfied overall with each of the modules that were implemented. FICO was the most successful module of ERP while the MM was the least successful module. This shows that FICO is the most user friendly module as well as it provides the all information and reports the users are seeking for. While, the MM was the least user friendly in compare to the other modules of ERP.

ConclusionsBased on the finding of this study, several conclusions were formulated and are presented below:It was concluded that PSUs are implementing ERP systems are seeking the benefits as identified in the literature. The benefit most sought through ERP implementations was easier access to reliable information. It was also concluded that the benefit most often realized through ERP implementation was easier access to reliable information.In regard to critical factors present during ERP implementations, it was concluded that top management was kept abreast of the implementation was the factor most often present during the implementation. Top management support was also present during implementation. This was cited in the literature as the most important critical factor during ERP implementation.It was also concluded that almost all modules were successfully implemented in BSNL. However, the FICO is the most user friendly and successful module of ERP. Therefore, when the modules were implemented in phased manner, it should be advisable to implement FICO module at first.

RecommendationsThe purpose of this study was to present the perceptions of ERP users, to determine the main benefits which motivate the Public Sector Enterprise to implement ERP.Based on the findings and conclusions, the researchers suggestions are as follows: It is recommended that PSUs considering ERP system implementation continue to research ERP functionality in order to identify and achieve all the expected benefits. It is recommended that PSUs continue to implement strong change management within their organizations. It is recommended that PSUs must ensure top management involvement in ERP involvement. It is recommended that organizations hire competent consultants and skilled project team members should be part of ERP implementation team It is recommended that leaders within organizations, particularly public-sector organizations, ask the ERP vendor to demonstrate the business process that the organization needs/desires in order to both ensure that the vendor can accomplish the task and decrease the gap between what is expected and what is realized.

This study has only begun to address the important and timely topic of ERP implementation in the public sector. The following recommendations for future research in the area of ERP implementation are made: Conduct a study to determine the technical and business process issues that affect ERP implementation in the public sector. Conduct a study on the specific outcomes of ERP implementation, particularly in the public sector. Conduct a study on specific decision making processes and their relation to the success of the ERP implementation. Conduct a study using a sample of different ERP systems, to compare software systems, and the success of their implementations in the public sector.

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APPENDIX A

Survey Instrument

Enterprise Resource Planning (ERP) Implementation at BSNL1. Name:2. Designation:3. Whether are you using ERP in your routine work: Yes / NoIf Answer of 3 above is No then leave the survey otherwise go ahead 4. Which functional module/area of SAP are you using for carrying out your daily transactions? (Please the box whichever applicable )FICOHCMMMPM & PS

PART 1: EXPECTED RESULTS AND BENEFITSPlease complete the stem sentence with the statements below and answer if the benefit was 1. "Expected and Realized" 2. "Expected but Not Realized" 3. "Not Expected, but Realized" 4. "Not Expected and Not Realized"BECAUSE OF IMPLEMENTING ERP SOFTWARE, MY ORGANIZATION HAS..BenefitsExpected and RealisedExpected but Not RealisedNot Expected but RealisedNot Expected and Not Realised

AThe ability to produce better reports with the information I need.

BOverall reduced operational costs.

CEasier access to reliable information.

DImproved internal communication.

EEliminated redundant tasks.

FRealized a return on investment.

GSoftware that is easily adaptable to business changes.

HIncreased standardization of processes.

IRedesigned business processes.

JImproved customer(internal/external) relationship or supply chain management

PART 2: ERP IMPLEMENTATION CRITICAL SUCCESS FACTORSPlease indicate the extent to which the statements below are true for your organizations implementation:Critical Success FactorsYesSomewhatNo

AThe implementation had top management support

BThe implementation project team was skillful in management

CThe project implementation partner was skillful.

DThe project team was knowledgeable about ERP and business processes

EThe project had the support of business unit managers

FTop management was kept abreast of the project status

GThere was a clearly defined scope for the implementation project.

HEnd-users were involved during the implementation.

IThere was effective end-user training.

JThe ERP software was modified to meet our needs

KOur organization mapped and reengineered our business processes to match the ERP processes.

LThe organization was prepared to manage change.

PART 3: SATISFATION LEVEL FOR ERP MODULES IMPLEMENTED

Please indicate your level of satisfaction with the below ERP modules implemented in your organization:Modules implementedVery satisfiedSatisfiedUnsatisfiedVery Unsatisfied

FICO

HCM

MM

PM & PS

Table: 1ERP Module wise responses received

ModulesResponses Received% to responses

FICO9825.52%

HCM9424.48%

MM9725.26%

PM & PS9524.74%

Total384100.00%

Table 2Expected and Realized Benefits of ERP System Implementation (n =384)BenefitExpected and RealisedExpected but Not RealisedNot Expected but RealisedNot Expected and Not Realised

n%n%n%n%

Easier access to reliable information.29777.34%7820.31%30.78%61.56%

Increased standardization of processes.28273.44%7218.75%143.65%164.17%

Redesigned business processes.27371.09%5414.06%235.99%348.85%

The ability to produce better reports with the information I need.26569.01%8822.92%143.65%174.43%

Eliminated redundant tasks.21455.73%13134.11%41.04%359.11%

Improved internal communication.19851.56%12733.07%123.13%4712.24%

Improved customer(internal/external) relationship or supply chain management18949.22%13033.85%153.91%5013.02%

Overall reduced operational costs.18147.14%14738.28%20.52%5414.06%

Software that is easily adaptable to business changes.16242.19%15339.84%30.78%6617.19%

Realized a return on investment.14337.24%16141.93%123.13%6817.71%

Mean Value220.4057.40%114.1029.71%10.202.66%39.3010.23%

Table 3Expected versus Not Expected Benefits (n=384)BenefitExpectedNot Expected

n%n%

Easier access to reliable information.37597.66%92.34%

Increased standardization of processes.35492.19%307.81%

The ability to produce better reports with the information I need.35391.93%318.07%

Eliminated redundant tasks.34589.84%3910.16%

Overall reduced operational costs.32885.42%5614.58%

Redesigned business processes.32785.16%5714.84%

Improved internal communication.32584.64%5915.36%

Improved customer(internal/external) relationship or supply chain management31983.07%6516.93%

Software that is easily adaptable to business changes.31582.03%6917.97%

Realized a return on investment.30479.17%8020.83%

Mean Value334.5087.11%49.5012.89%

Table 4Realised versus Not Realised Benefits (n=384)BenefitRealisedNot realised

N%n%

Easier access to reliable information.30078.13%8421.88%

Increased standardization of processes.29677.08%8822.92%

Redesigned business processes.29677.08%8822.92%

The ability to produce better reports with the information I need.27972.66%10527.34%

Eliminated redundant tasks.21856.77%16643.23%

Improved internal communication.21054.69%17445.31%

Improved customer (internal/external) relationship or supply chain management20453.13%18046.88%

Overall reduced operational costs.18347.66%20152.34%

Software that is easily adaptable to business changes.16542.97%21957.03%

Realized a return on investment.15540.36%22959.64%

Mean Value230.6060.05%153.4039.95%

Table 5Frequency of Implementation Critical Factors (n=384)

BenefitYesSomewhatNot

N%n%n%

Top management was kept abreast of the project status32083.33%6216.15%20.52%

The implementation had top management support28774.74%8822.92%92.34%

There was a clearly defined scope for the implementation project.26368.49%9725.26%246.25%

End-users were involved during the implementation.22458.33%9725.26%6316.41%

The implementation project team was skillful in management21154.95%10527.34%6817.71%

The project implementation partner was skillful.18648.44%10828.13%9023.44%

There was effective end-user training.17144.53%11128.91%10226.56%

The project team was knowledgeable about ERP and business processes15339.84%12632.81%10527.34%

The project had the support of business unit managers13735.68%13434.90%11329.43%

The ERP software was modified to meet our needs12933.59%10326.82%15239.58%

Our organization mapped and reengineered our business processes to match the ERP processes.9123.70%15640.63%13735.68%

The organization was prepared to manage change.8822.92%13535.16%16141.93%

Table 6Satisfaction with Modules Implemented (n=384)

Modules implementedVery SatisfiedSatisfiedUnsatisfiedVery Unsatisfiedn=

n%N%n%n%

FICO4545.92%3838.78%1111.22%44.08%98

HCM2829.79%4143.62%88.51%1718.09%94

MM3637.11%3334.02%1515.46%1313.40%97

PM & PS3840.00%3132.63%1818.95%88.42%95

Total14738.28%14337.24%5213.54%4210.94%384

Table 7Satisfied versus Unsatisfied with ERP modules (n=384)

Modules implementedVery Satisfied / SatisfiedUnsatisfied / Very Unsatisfiedn=

n%n%

FICO8384.69%1515.31%98

HCM6973.40%2526.60%94

PM & PS6972.63%2627.37%95

MM6971.13%2828.87%97

Total29075.52%9424.48%384