It is a challenging task for enterprises to get success in implementing ERP system. In fact, a report has mentioned that there is an increasing number of enterprises that fail with their ERP projects. For this reason, enterprises need to evaluate the success of ERP implementation in their business operations. Thus, a framework will help the enterprises to evaluate the needs for any extra technical modification, and also the capabilities of the enterprise to get modified.

            Before we will build a framework to evaluate ERP implementation, there are some critical success factors that influence the successful ERP implementation in an enterprise as the table below.

Table 1 Critical Success Factors of ERP implementation

Source: (Dezdar, 2017)

            In accordance with all of the critical success factors mentioned above, we can make a framework to evaluate ERP implementation such as the figure below.

Sources: (Dezdar, 2017)

ERP system implementations are considered as complex and risky projects. These types of projects require excellent function of management for the different contributions come from the business components, suppliers and customers, vendors, as well as consultants that involve within the project. In addition to this, these ERP system implementations also need a big scale of business process re-engineering along with complicated planning to adapt to each existing system and forecast system as well.  This framework helps the enterprise to recognize how success ERP system implementation, and what changes need to be done for the enterprise itself.

Conclusion of Enterprise Resource Planning

In this modern technology, enterprises have to struggle to survive and compete in a tough business competition. IT or Information Technology has been considered as an ideal source to differentiate an enterprise from other competitors in the market. The main propensity of the enterprises in this globalization days is to generate more profit with the lowest cost.             This is where those enterprises need to implement the proper Enterprise Resources Planning (ERP) system which is commonly adopted by the organizations in order to maintain organizational resources. However, due to the high cost of ERP software, most of SMEs refer to implement open-source ERP which is considered to be a cheaper alternative. However, even though this open-source ERP software offers lots of advantages, but still, there are some disadvantages of the implementation of open-source ERP software for enterprises to be considered. For this reason, the enterprise needs to consider and make proper decision on which type of ERP system that will be useful and lead the enterprise to achieve the main goals.

Once an enterprise has implemented an ERP system, then still, the enterprise needs to evaluate the success of that implementation in the enterprise. Thus, the enterprise needs to identify all of the critical success factors such as user training and education, project management and evaluation, business plan and vision, ERP team composition, competence, and compensation, top management support, organizational culture, and some other factors mentioned above. From all of these critical success factors, then the enterprise will able to draw out a framework to evaluate the success of the implementation in the enterprise. This framework will enable the enterprise to recognize whether the implementation of ERP has been succeeded or not, and also identify if there is any change needed to be done.

References of A framework to evaluate the ERP implementation in enterprises

Dezdar, S. (2017). An integrative model for realising benefits from enterprise resource planning implementation. International Journal of Business Information Systems .

L.Olson, D., Johansson, B., & Carvalho, R. A. (2018). Open source ERP business model framework. Robotics and Computer-Integrated Manufacturing, 30-36.

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Nagy, D., Yassin, A. M., & Bhattacherjee, A. (2010). Organizational Adoption of Open Source Software: Barriers and Remedies. Communications of the ACM, 53(3), 148-151.

Rakićević, Z., Omerbegović-Bijelović, J., & Lečić-Cvetković, D. (2016). Open source enterprise resource planning: Solution for production planning in SMEs. Proceedings of the 15th International Symposium SymOrg.

Srivardhana, T., & Pawlowski, S. D. (2007). ERP systems as an enabler of sustained business process innovation: A knowledge-based view. The Journal of Strategic Information Systems, 16(1), 51-69.

Wang, E. T., Lin, C. C.-L., Jiang, J. J., & Klein, G. (2007). Improving enterprise resource planning (ERP) fit to organizational process through knowledge transfer. International Journal of Information Management, 27(1), 200-212.