Implementing enterprise resource planning and its relation to business process re engineering with special reference to Sri Lanka

Abstract

Implementation of Enterprise Resource Planning (ERP)systems is relatively new in Sri Lankan context and very few studies have been carried out on this topic. With the ever-increasing need to successfully implement ERP systems, such studies have become very important. The study was designed to analyze how organizations can lead successful ERP implementations, use of best practices and to signify the extent of Business Process Reengineering(BPR)required for project success. A Questionnaire survey covering 40 organizations implemented ERP solutions and inputs from experts in the field were used in the study. A related literature review showed that, failure of any ERP implementation wastes colossal amount of money and time due to lack of top level support, poor change management, poor planning, inadequate communication, poor knowledge of best practices or BPR etc. The survey revealed that, in Sri Lankan context, Finance, Manufacturing and Distribution were the most popular were more interested on implementing ERP. The use of consultants in the areas of change management and BPR, was less. In addition, the survey found Twenty Critical Success Factors for ERP projects, highlighting comprehensively that BPR must be done parallel for a successful implementation of an ERP system. Based on the conclusions, it is recommended that managers should not change the system to suit the local processes, but should use more help from external consultants for BPR and change management. They must make the employees familiar to computers before training and educating them about the ERP systems.