ASSESSMENT OF ENTERPRISE RESOURCE PLANNING (ERP) IMPLEMENTATION: IN THE CASE OF IE NETWORK SOLUTIONS PLC, ETHIOPIA

Abstract

As worldwide globalization increases, the need for seamless information flow is intensified. Enterprises of the 21st century utilize an enterprise resource planning (ERP) system to coordinate the information flows both internally and externally. However, implementingan ERPsystem is complex and costly. As ERP implementation affects entire organizations process, people, and culture, there are a number of challenges that companies may encounter in implementing ERP systems. The primary purpose of this study is to assess the practices and challenges of ERP implementation. The study was conducted using descriptive research design. A well-structured self-administered questionnaire was used as the main tool for data collection and was administered to 75 respondents, out of which 70 were retrieved. The quantitative data was analyzed using descriptive statistical tools. The findings were described using frequency and percentage and presented using pie chart and tables. The findings of the study revealed that ERP system implementation will be impossible to succeed if clear objectives are not set that justify the reason to implement the system. In addition, the study revealed that ERP implementation success highly depend on the quality of the software used, the effectiveness of training conducted to prepare system users and the management support. The study concluded that ERP allows different departments with diverse needs to communicate with each other by sharing the same information in a single system. ERP thus increases cooperation and interaction between all business units in an organization. Finally, the study recommended that organizations need to document the anticipated objectives and requirements before the actual implementation of ERP system starts also they shouldprovide a regular supervision and trainings to ensure employees have the necessary skills that deemed important in order to be able to manipulate and take advantage of the ERP system.