ERP Research

Challenges in enterprise resource planning implementation: state‐of‐the‐art

This paper provides a comprehensive literature review of critical factors leading to ERP implementation failures from 1997 to 2009. It categorizes the challenges and identifies the most common reasons for project failures based on an analysis of various studies.

Research Objectives

To present an integrative review of ERP implementation failure factors and propose a framework for addressing these challenges.

Methodology

A systematic literature review (SLR) analyzing articles from multiple sources, including databases like ScienceDirect and IEEE, focusing on ERP implementation challenges.

Key Findings

Top Critical Failure factors:

  1. Lack of Change Management: Identified as the most cited challenge.
  2. Excessive Customization: Often leads to higher complexity and/or project delays.
  3. Lack of Understanding of Business Implications: Results in misalignment in project goals.
  4. Internal Integration Issues: Cross-module and interdepartmental integration problems.
  5. Poor Data Quality: Leads to negative impact on system performance and decision-making.
  6. Lack of Top Management Support: Crucial for success in project execution.
  7. Hidden Costs: Commonly underestimated, followed by budget overruns.
  8. Limited Training: Insufficient end-user training creating roadblocks in adoption.

The paper stresses that ERP failure often stems from organizational, cultural and management related challenges rather than the technology itself.


Challenges

The paper emphasizes on the role of management, change management and proper training as a key to overcome implementation challenges.

Limitations

The paper focuses on literature up to 2009, and is a little dated (published in 2010) which may not capture the latest trends with ERP tech and implementation strategies.

Future Research Directions

Suggested exploring development process of frameworks addressing the identified failure factors.

Research Relevance

Provides valuable insights into historical and recurring challenges with ERP implementations, serving as a foundation to understanding root causes of ERP project failures and identifying areas that may need further research and/or updated strategies.

Reference

Momoh, A., Roy, R., & Shehab, E. (2010). Challenges in enterprise resource planning implementation: state-of-the-art. Business Process Management Journal, 16(4), 537-565.

DOI: https://doi.org/10.1108/14637151011065919