The critical success factors for the acquisition and implementation of ERP systems

The main objective of this paper is to identify the success factors that are critical to the acquisition and implementation processes of ERP systems. In this paper, these critical success factors are determined using a two-tier approach. In the first approach, these factors are identified thoroughly scanning the literature. Based on the literature support, a final survey instrument was developed. This was then mailed to Australian companies that had already implemented an ERP system or were in the process of implementing one of them. To enable the IS executives to indicate their degree of agreement with each item, a 7-point Likert rating scale was used. Data from 53 respondents were analysed and interpreted by using various statistical techniques. This paper empirically investigates critical factors that contribute to the success of acquisition and implementation of ERP processes. The major findings from the analysis are that planning, accurate information, selection criteria, structured process, vendor relationship, top management support, communication, team work, user involvement and consultants' involvement are critical for the acquisition of ERP systems. Project management, business process reengineering, user training, change management, top management support, effective communication, team work, users' involvement, consultants' involvement and clear goals are found to be important for the ERP implementation process. The intensity of the impact of the critical success factors such as planning, accurate information, top management support and consultants' involvement is greater than that of the remaining factors.