SUCCESS FACTORS OF ENTERPRISE RESOURCE PLANNING (ERP) IMPLEMENTATION: THE CASE OF ETHIOPIA POSTAL SERVICE ENTERPRISE

Abstract

Enterprise Resource Planning (ERP) systems are software systems for business management, encompassing modules supporting functional areas such as planning, manufacturing, sales, marketing, distribution, accounting, financial, human resource management, project management, inventory management, service and maintenance, transportation and e-business. When implementing an integrated and ERP packages in to an organization, assessing the factors that affect the implementation and sharing experience is very important. Because ERP systems are complex and need huge budget investment, company re-arrangements and the implementation, success depends on various technological, organizational and individual factors of the companies and countries. Ethiopia postal service enterprise is implementing the ERP into its organization. Focusing on this company, the purpose of this study is to identify and analyze the organizational, external and internal factors and their benefits and limitation of ERP implementation. Based on detail review of literatures, the researcher selected and used research model for the study that consists of major constraints of implementation in the organization, internal and external and also the benefits and limitation of factors of ERP implementation of ERP system. The data were obtained through questionnaires that were distributed to 159 employees of the EPSE at head office in which 113 were fully completed and returned. The questionnaire was distributed to the employees based on the census method to get the perspective of the ERP implementation participant. The findings of the study indicated that ERP implementation supported the Organization by reducing the financial cycle time, decision making cycle time and procurement lead time. On the other hand, there are challenges related to, lack of appropriate training for all system users, high resistance from employee to use ERP, lack of Leadership commitment and support regarding to arrange effective project management methodology Finally, the reporting formats as per the user friendly nature of the system has been identified as a major challenge in relation to the decision making activity and other stakeholders usage.