ERP Critical Success Factors (CSFs) A critical success factor is something that the organization must do well to succeed. In terms of information system projects, a critical success factor is what a system must do to accomplish what it was designed to do. Some studies (Olson, 2001) have found that three factors consistently appear as critical success factors (CSFs) for information systems projects: 1. Top management support 2. Client consultation (user involvement) 3. Clear project objectives Referring to the earlier research, some researchers generalize 6 CSFs into 3 categories: 1. Strategic factors 2. Tactical factors, and 3. Operational factors Strategic factors: Top management support – some studies (Sumner (1999), Mabert et al (2001)) have shown that the ERP implementation was in general a top-down decision, and the success of such an implementation depended on the alignment of the ERP adoption with strategic business goals. Tactical factors: Effective project management – in order to successfully accomplish the decision to implement an ERP system, the effective project management comes into play to plan, coordinate and control such an intricate project. Re-engineering business processes – it is very important to consider the extent to which the company needs to re-engineer its current business processes in order to be compatible with the ERP software. Suitability of software and hardware – management must make a careful choice of an ERP package that best matches the legacy systems, e.g. the hardware platform, databases and operating systems. Operational factors: Education and training – when the ERP system is up and running it is very important that the users be capable to use it, hence they should be aware of the ERP logic and concepts and should be familiar with the system’s features. User involvement – participating in the system development and implementation, the users go through a transition period that gives them time to better understand the project’s consequences.
1. In order to implement ERP successfully, what are the critical success factors?