ANALYSIS OF CRITICAL SUCCESS FACTORS OF ENTERPRISE RESOURCE PLANNING (ERP) IMPLEMENTATION IN BANGLADESH
ANALYSIS OF CRITICAL SUCCESS FACTORS OF ENTERPRISE RESOURCE PLANNING (ERP) IMPLEMENTATION IN BANGLADESH
UNIVERSITY OF DHAKA
Date of Submission: 29th August, 2010
Background Study
1. Introduction
Enterprise Resource Planning (ERP) systems are integrated, enterprise wide systems, which automate core corporate activities such as manufacturing, human resource, finance and supply chain management (Grover et al. 1995).Thus ERP systems are comprehensive, fully integrated software packages that provide automated support for most of the standard business processes within organizations. ERP systems are expensive, and once ERP systems are implemented successfully, significant benefits such as improved customer service, better production scheduling, and reduced manufacturing costs can be gained. However, the successful implementation rate is low and many firms that have gained some benefits from ERP have yet to exploit the full potential of ERP in their organizations. About 90 percent of ERP implementations are late or over budgeted (Miles et al. 1994) and ERP implementation success rate is only about 33% (Somers et al. 2001). In Bangladesh, ERP implementation problems become more acute because of the challenging Bangladeshi culture which is entirely different from cultures where these systems are developed.
2. ERP System
ERP provides a technology platform where organizations can integrate and coordinate their major internal business processes. They address the problem of organizational inefficiencies created by isolated islands of information, business processes, and technology. A large organization typically has many different kinds of information system that support different functions, organizational levels, and business processes. Most of these systems are built around different functions; business units and business processes that do not “talk” to each other. Managers might have a hard time assembling the data they need for a comprehensive,
UNIVERSITY OF DHAKA
Date of Submission: 29th August, 2010
Background Study
1. Introduction
Enterprise Resource Planning (ERP) systems are integrated, enterprise wide systems, which automate core corporate activities such as manufacturing, human resource, finance and supply chain management (Grover et al. 1995).Thus ERP systems are comprehensive, fully integrated software packages that provide automated support for most of the standard business processes within organizations. ERP systems are expensive, and once ERP systems are implemented successfully, significant benefits such as improved customer service, better production scheduling, and reduced manufacturing costs can be gained. However, the successful implementation rate is low and many firms that have gained some benefits from ERP have yet to exploit the full potential of ERP in their organizations. About 90 percent of ERP implementations are late or over budgeted (Miles et al. 1994) and ERP implementation success rate is only about 33% (Somers et al. 2001). In Bangladesh, ERP implementation problems become more acute because of the challenging Bangladeshi culture which is entirely different from cultures where these systems are developed.
2. ERP System
ERP provides a technology platform where organizations can integrate and coordinate their major internal business processes. They address the problem of organizational inefficiencies created by isolated islands of information, business processes, and technology. A large organization typically has many different kinds of information system that support different functions, organizational levels, and business processes. Most of these systems are built around different functions; business units and business processes that do not “talk” to each other. Managers might have a hard time assembling the data they need for a comprehensive,