ERP implementation and Critical success factors:A study of Shanks ERP model on Lenovo.
[Dissertation (University of Nottingham only)]
The causes of ERP implementation failure and critical success factors have been identified by many researchers, as well as Shanks (2005). In his study, he points out the causes of failure such as poor cost and time estimation and changes in project scope. This implicated that inefficiency, bad planning and increased costs are associated with unsuccessful implementation. He also identified eleven critical success factors and concludes that culture differences have significant effect during ERP implementation process.
The motivation of this study is to investigated the extent to which Shanks finding, with respects to the critical success factors and the culture element base on his study on companies in China and Australia, apply to two international computer giants based in mainland China.
To explore the question of critical success factors for ERP implementation, the method of case study was adopted. This study will identify the factors that affect the outcome of the implementation of ERP system based on a single case study with a PC manufacturer in mainland China, named Lenovo. And suggestions for improving the implementation process are given in a chapter six.
The main findings of this study are as follows:
1. The culture element is proved to be of great important for information system in an organisation, concluded from the literature and the interview responds. This adding credibility to Shanks study that takes culture into account when analysing information system is necessary.
2. The critical success factors, which is common to both researches and throughout the implementation process on ERP project in mainland China were identified : 1) Top management support; 2) Balanced project team; 3) Project management and 4) Clear goals. Although, some of the success factors are more important in Shanks study, they may be less important in this study due to sampling issue and different culture across industries. Similar results also includes presence of champion and change management, which maybe important in international enterprise, but has little effects on organisations based in mainland China.
3. Although Shanks study provides good model of analysing IS in China, the limitations of his study also identified. Case study used by Shanks analysis two companies from different industry, which decreased the value of his study, because those researched companies may not suitable for comparison in ERP implementation. Furthermore, his study on CSFs and culture was base on two different continents. This is suitable for the purpose of culture analysis in ERP implementation. However, instead of adding credibility to CSFs study, sampling from two country using only two cases is less convincing in the results.
The finding of this study should be of assistance to organisations in mainland China implementing ERP systems, and those multinational companies try to integrate eastern culture in their information system within their organisation. Furthermore, this research adding credibility to Shanks (2005) findings regarding to ERP implementation model and critical success factors in mainland China. Further study on ERP adoption and CSFs in Mainland China can conducted base on Shanks model, and vast sampling is suggested to avoid bias.
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