The Study Of ERP Adoption And Critical Success Factors For Implementation

Due to the trend of world globalization, many enterprises have extended their business to operate globally. The organizational structure and size of the enterprises have been expanded as a result of business requirement. This empowered the demand for integration and control on enterprise resources, business processes and information systems. The author's working Group has begun to expand rapidly starting from 2000. The top management of the Group is contemplating to adopt ERP System to support the business development of the Group. This paper uses the method of Literature Survey and theory analysis to study the determinants of ERP adoption by enterprises and the critical success factors for ERP implementations. Case studies of companies stationed in China that have implemented ERP packages were studied and the determinants and critical success factors reexamined for effectiveness. This paper further uses case study method to develop a model for adopting ERP. After thorough study and detail cases analysis, this paper discovers 3 non-technological factors out of 20 being more important critical success factors, these are : (1) sustained management support, (2) adequate training program, (3) comprehensive business process reengineering (BPR). This paper suggests to the Group that these 3 critical success factors need to be well-prepared before purchasing the ERP packages. And BPR need to be progressive in order to reduce ERP implementation failure risk and increase the opportunity to success. This will render the entire Group's organizational management change process more effective.