Identification and Prioritization of Critical Success Factors in ERP Implementation using Fuzzy Screening and DEMATEL Method (A Study of Qom Municipality)
Subject Areas : Management (system orientation)Ali Abedini 1 , hamidreza yazdani 2 , Amin Hakim 3 , Alireza Abarghouei 4
1 - Ph.D. Candidate, Department of Business Administration, Faculty of Management and Economics, Tarbiat Modares University, Tehran. Iran
2 - Assistant Professor, Department of Business Administration, Faculty of Management and Accounting, Farabi Campus, University of Tehran, Qom, Iran
3 - Assistant Professor, Farhangian University, Tehran, Iran.
4 - MSc, Department of Business Administration, Faculty of Management and Accounting, Farabi Campus, University of Tehran, Qom, Iran.
Keywords: ERP, Implementation, DEMATEL,
Abstract :
The expansion of cities along with the diversity of citizenship needs, on the one hand, and the development of information and communication technology, on the other, have highlighted the need to employ ERP systems in municipalities and urban organizations. Therefore, this applied library survey aimed to initially identify effective factors that may impact ERP Implementation and secondly prioritize and evaluate the influence and effectiveness of identified factors. To serve the identification purpose, valid domestic and international electronic data bases were search were done in the Persian and foreign scientific databases were searched to detect critical success factors in ERP Implementation that were further divided into 24 dimensions. Based on the Fuzzy Screening, 11 factors out of the 24 dimensions served as a basis for pairwise comparison of the factors and determining the impact and effectiveness. The research population was the senior managers of Qom municipality from whom 9 experts in planning and information technology were selected from the central Qom Municipality and FAVA Organization to form the research sample. The gleaned research data were analyzed via the DEMATEL method, Excel and MATLAB software. The most influential factors were found to be Culture and Organizational Features (R-C=1/24) including Vision (R-C=0/56), Staff skills (R-C=0/53), Top management support (R-C=0/41) and Communication (R-C=0/06), are influential factors and change management (R-C=-0/88), Vendor (R-C=-0/67), Control and evaluation (R-C=-0/52), Implementation strategy (R-C=-0/29), Costs (R-C=-0/23) and Project Team (R-C=-0/20). Moreover, the most influenceable factor was found to be Change Management (R-C=-0/88) including five factors of salespersons (R-C=-0/67), control and evaluation (R-C=-0/52), implementational strategy (R-C=-0/29), costs (R-C=-0/23) and project executive team (R-C=-0/20). Finally, top management support (R+C=10/54) and Vision (R+C=8/37) were found to be the most and the least interacting factors.
Akkermans, H., & Van Helden, K. (2002). Vicious and Virtuous Cycles in ERP Implementation: A Case Study of Interrelations between Critical Success Factors. European Journal of Information Systems, 11(1), 35-46.
Al-Turki, U. M. (2011). An Exploratory Study of ERP Implementation in Saudi Arabia. Production Planning and Control, 22(4), 403-413.
Amid, A., Mohammadi, P., & Ghelich Li, B. (2016). Evaluation of Implementing Enterprise Resource Planning (ERP) System Readiness in Government Service Organizations. Public Management Vision, 7(4), 41-67.
Azar, A., & Faraji Khorshidi, H. (2016). Fuzzy Management Science. Tehran: Mehraban Publishing, (In Persian).
Azizi, B., & Doost, R. R. K. (2018). A Q-analysis Model to Evaluate the Factors and Attributes of ERP Success in the Developing Countries. Revista Publicando, 5(15), 917-952, (In Persian).
Behboudi Asl, M., Rahmany Youshanlouei, H., Ansari, M., & Mirkazemi Mood, M. (2012). Identifying Factors Influencing the Selection of Enterprise Resource Planning Systems from Expert Views. Journal of Information Technology Management, 4(12), 1-22, (In Persian).
Chang, S. I. (2004). ERP Life Cycle Implementation, Management and Support: Implications for Practice and Research. 37th Annual Hawaii International Conference on System Sciences.
Chen, C. C., Law, C. C., & Yang, S. C. (2009). Managing ERP Implementation Failure: A Project Management Perspective. IEEE Transactions on Engineering Management, 56(1), 157-170.
Dezdar, S., & Ainin, S. (2011). Critical Success Factors for ERP Implementation: Insights from a Middle-Eastern Country. Middle-East Journal of Scientific Research, 10(6), 798-808.
Dezdar, S., & Sulaiman, A. (2009). Successful Enterprise Resource Planning Implementation: Taxonomy of Critical Factors. Industrial Management & Data Systems, 109(8), 1037-1052.
Ebrahimi, M., & KHorshidi, Z. (2017). Use of Dematel Ttechnique and ANP in the Prioritization Factors Affecting Stock Selection in Tehran Stock Exchange. Journal of Decision Engineering, 1(4), 29-52, (In Persian).
Ehie, I. C., & Madsen, M. (2005). Identifying Critical Issues in Enterprise Resource Planning (ERP) Implementation. Computers in Industry, 56(6), 545-557.
Esteves, J., & Pastor, J. (2000). Toward the Unification of Critical Success Factor for (ERP) Implementations. 10th Annual Business Information Technology (BIT) Conference.
Fadelelmoula, A. A. (2018). The Effects of the Critical Success Factors for ERP Implementation on the Comprehensive Achievement of the Crucial Roles of Information Systems in the Higher Education Sector. Interdisciplinary Journal of Information, Knowledge and Management, 13, 21-44.
Finney, S., & Corbett, M. (2007). ERP Implementation: A Compilation and Analysis of Critical Success Factors. Business Process Management Journal, 13(3), 329-347.
Garg, P., & Khurana, R. (2017). Applying Structural Equation Model to Study the Critical Risks in ERP Implementation in Indian Retail. Benchmarking: An International Journal, 24(1), 143-162.
Gargeya, V. B., & Brady, C. (2005). Success and Failure Factors of Adopting SAP in ERP System Implementation. Business Process Management Journal, 11(5), 501-516.
Gupta, H., Aye, K. T., Balakrishnan, R., Rajagopal, S., & Nguwi, Y. Y. (2014). A Study of Key Critical Success Factors (CSFs) for Enterprise Resource Planning (ERP) Systems. International Journal of Computer and Information Technology, 3(4), 813-818.
Gupta, S., Misra, S. C., Kock, N., & Roubaud, D. (2018). Organizational, Technological and Extrinsic Factors in the Implementation of Cloud ERP in SMEs. Journal of Organizational Change Management, 31(1), 83-102.
Hakim, A., & Hakim, H. (2010). A Practical Model on Controlling the ERP Implementation Risks. Information Systems, 35(2), 204-214.
Hanafi Zadeh, P., Zare Ravasan, A., Rouhani, S. (2009). Evaluation of Organizational Readiness to Implement ERP System Based on S7 McKinsey Model. Enterprise Resource Planning Systems Conference, (In Persian).
Heidari, H., Radfar, R., Mousakhani, M. (2018). The effective Drivers on Successful Implementation of Enterprise Resource Planning System in Manufacturing Industries. The Journal of Productivity Managemnet 11(43), 151-169, (In Persian).
Holland, C. P., & Light, B. (1999). A Critical Success Factors Model for ERP Implementation. IEEE software, 16(3), 30-36.
Huang, Z., & Palvia, P. (2001). ERP Implementation Issues in Advanced and Developing Countries. Business Process Management Journal, 7(3), 276-284.
Kwahk, K. Y., & Lee, J. N. (2008). The Role of Readiness for Change in ERP Implementation: Theoretical Bases and Empirical Validation. Information & Management, 45(7), 474-481.
Lawrence Norton, A., May Coulson-Thomas, Y., Coulson-Thomas, C. J., & Ashurst, C. (2013). Ensuring Benefits Realisation from ERP II: The CSF Phasing Model. Journal of Enterprise Information Management, 26(3), 218-234.
Li, C. W., & Tzeng, G. H. (2009). Identification of a Threshold Value for the DEMATEL Method Using the Maximum Mean De-Entropy Algorithm to Find Critical Services Provided by a Semiconductor Intellectual Property Mall. Expert Systems with Applications, 36(6), 9891-9898.
Mabert, V. A., Soni, A., & Venkataramanan, M. A. (2000). Enterprise Resource Planning: Survey of US Manufacturing Firms. Production and Inventory Management, 41(2), 52-58.
Menon, S. A., Muchnick, M., Butler, C., & Pizur, T. (2019). Critical Challenges in Enterprise Resource Planning (ERP) Implementation. International Journal of Business and Management, 14(7), 54-69.
Moohebat, M. R., Asemi, A., & Davarpanah Jazi, M. (2010). A Comparative Study of Critical Success Factors (CSFs) in Implementation of ERP in Developed and Developing Countries. International Journal of Advancements in Computing Technology, 2(5), 99-110, (In Persian).
Nagpal, S., Khatri, S. K., & Kapur, P. K. (2014). Exploratory Study to Identify Critical Success Factors Penetration in ERP Implementations. 3rd International Conference on Reliability, Infocom Technologies and Optimization; Trends and Future Directions.
Nah, F. F. H., Zuckweiler, K. M., & Lee-Shang Lau, J. (2003). ERP Implementation: Chief Information Officers' Perceptions of Critical Success Factors. International Journal of Human-Computer Interaction, 16(1), 5-22.
Ngai, E. W., Law, C. C., & Wat, F. K. (2008). Examining the Critical Success Factors in the Adoption of Enterprise Resource Planning. Computers in Industry, 59(6), 548-564.
Olfat, L., & Shahryari Nia, A. (2014). Interpretive Structural Modeling of Effective Factors of Partner Selection in Agile Supply Chain. Journal of Production and Operations Management,5(2),128-109,(In Persian).
Osintsev, A. (2016). The 5 Biggest Challenges When Implementing ERP for the First Time.
Otieno, J. O. (2008, May). Enterprise Resource Planning (ERP) Systems Implementation Challenges: A Kenyan Case Study. International Conference on Business Information Systems.
Pei-Fang, H. (2013). Integrating ERP and E-Business: Resource Complementarity in Business Value Creation. Decision Support Systems, 56, 334-347.
Project Management Institute. (2015). Pmbok Guide. Translated by: M., Ebrahimi, A., Bayati, & F., Adhami, Tehran: ARiana Ghalam Publishing, (In Persian).
Reitsma, E., & Hilletofth, P. (2018). Critical Success Factors for ERP System Implementation: A User Perspective. European Business Review, 30(3), 285-310.
Roshandel Arbatani, T., Ghaffari, A., & Ebrahim Pour, H. (2011). Channeling Customer Relationship Management (CRM) in the E-Government Framework. Journal of Information Technology Management, 3(7), 55-76, (In Persian).
Sadeghi Moghaddam, M. (2011). Identifying the Factors that Influence the Readiness of the Enterprise Resource Planning System to Accept and Rank the Factors Using Fuzzy AHP. Master's Thesis, Mashhad: Ferdowsi University, (In Persian).
Sar, A., & Garg, P. (2012). Analysis of Critical Failure Factors in ERP Implementation: An Indian Experience. International Journal of Business Information Systems, 11(3), 360-378.
Sartorius, K., Eitzen, C., & Kamala, P. (2007). The Design and Implementation of Activity Based Costing (ABC): A South African Survey. Meditari Accountancy Research, 15(2), 1-21.
Shafi, K., Ahmad, U. S., Nawab, S., Bhatti, W. K., Shad, S. A., Hameed, Z., Tahira, A., & Shoaib, F. (2019). Measuring Performance Through Enterprise Resource Planning System Implementation. IEEE Access, 7, 6691-6702.
Shah, S. I. H., Bokhari, R. H., Hassan, S., Shah, M. H., & Shah, M. A. (2011). Socio-Technical Factors Affecting ERP Implementation Success in Pakistan: An Empirical Study. Australian Journal of Basic and Applied Sciences, 5(3), 742-749.
Shanks, G. (2000). A Model of ERP Project Implementation. Journal of Information Technology, 15(4), 289-303.
Shanks, G., Parr, A., Hu, B., Corbitt, B., Thanasankit, T., & Seddon, P. (1999). Differences in Critical Success Factors in ERP Systems Implementation in Australia and China. The University of Melbourne.
Somers, T. M. & Nelson, K. G. (2003). The Impact of Strategy and Integration Mechanisms on Enterprise System Value: Empirical Evidence from Manufacturing Firms. European Journal of Operational Research, 146(2), 315-338.
Sumner, M. (2000). Risk Factors in Enterprise-Wide/ERP Projects. Journal of Information Technology, 15(4), 317-327.
Tenkorang, R., & Helo, P. (2011). Enterprise Resource Planning (ERP): A Review Literature Report. Proceedings of the World Congress on Engineering and Computer Science, 2, 19-21.
Venkateswaran, N., & Mahalakshmi, V. (2012). ERP Implementation: A Compilation and Analysis of Critical Success Factors. International Multidisciplinary Research Journal, 2(1), 103-109.
Virtanen, T. (2019). ERP Implementation-Case Study. Master’s Thesis, in Haaga- Finland: Helia University of Applied Sciences.
Yingjie, J. (2005). Critical Success Factors in ERP Implementation in Finland. Master’s Thesis, Finland: Swedish School of Economics and Business Administration.
Zehedi, M., Rezaee, A., Darini, V., Namdar Joyami, E. (2018). Designing a Model for the Selection and Implementation of Organizational Resource Planning Systems in Iranian Organizations. Quarterly Journal of Public Organzations Management,6(3),131-144,(In Persian).
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Akkermans, H., & Van Helden, K. (2002). Vicious and Virtuous Cycles in ERP Implementation: A Case Study of Interrelations between Critical Success Factors. European Journal of Information Systems, 11(1), 35-46.
Al-Turki, U. M. (2011). An Exploratory Study of ERP Implementation in Saudi Arabia. Production Planning and Control, 22(4), 403-413.
Amid, A., Mohammadi, P., & Ghelich Li, B. (2016). Evaluation of Implementing Enterprise Resource Planning (ERP) System Readiness in Government Service Organizations. Public Management Vision, 7(4), 41-67.
Azar, A., & Faraji Khorshidi, H. (2016). Fuzzy Management Science. Tehran: Mehraban Publishing, (In Persian).
Azizi, B., & Doost, R. R. K. (2018). A Q-analysis Model to Evaluate the Factors and Attributes of ERP Success in the Developing Countries. Revista Publicando, 5(15), 917-952, (In Persian).
Behboudi Asl, M., Rahmany Youshanlouei, H., Ansari, M., & Mirkazemi Mood, M. (2012). Identifying Factors Influencing the Selection of Enterprise Resource Planning Systems from Expert Views. Journal of Information Technology Management, 4(12), 1-22, (In Persian).
Chang, S. I. (2004). ERP Life Cycle Implementation, Management and Support: Implications for Practice and Research. 37th Annual Hawaii International Conference on System Sciences.
Chen, C. C., Law, C. C., & Yang, S. C. (2009). Managing ERP Implementation Failure: A Project Management Perspective. IEEE Transactions on Engineering Management, 56(1), 157-170.
Dezdar, S., & Ainin, S. (2011). Critical Success Factors for ERP Implementation: Insights from a Middle-Eastern Country. Middle-East Journal of Scientific Research, 10(6), 798-808.
Dezdar, S., & Sulaiman, A. (2009). Successful Enterprise Resource Planning Implementation: Taxonomy of Critical Factors. Industrial Management & Data Systems, 109(8), 1037-1052.
Ebrahimi, M., & KHorshidi, Z. (2017). Use of Dematel Ttechnique and ANP in the Prioritization Factors Affecting Stock Selection in Tehran Stock Exchange. Journal of Decision Engineering, 1(4), 29-52, (In Persian).
Ehie, I. C., & Madsen, M. (2005). Identifying Critical Issues in Enterprise Resource Planning (ERP) Implementation. Computers in Industry, 56(6), 545-557.
Esteves, J., & Pastor, J. (2000). Toward the Unification of Critical Success Factor for (ERP) Implementations. 10th Annual Business Information Technology (BIT) Conference.
Fadelelmoula, A. A. (2018). The Effects of the Critical Success Factors for ERP Implementation on the Comprehensive Achievement of the Crucial Roles of Information Systems in the Higher Education Sector. Interdisciplinary Journal of Information, Knowledge and Management, 13, 21-44.
Finney, S., & Corbett, M. (2007). ERP Implementation: A Compilation and Analysis of Critical Success Factors. Business Process Management Journal, 13(3), 329-347.
Garg, P., & Khurana, R. (2017). Applying Structural Equation Model to Study the Critical Risks in ERP Implementation in Indian Retail. Benchmarking: An International Journal, 24(1), 143-162.
Gargeya, V. B., & Brady, C. (2005). Success and Failure Factors of Adopting SAP in ERP System Implementation. Business Process Management Journal, 11(5), 501-516.
Gupta, H., Aye, K. T., Balakrishnan, R., Rajagopal, S., & Nguwi, Y. Y. (2014). A Study of Key Critical Success Factors (CSFs) for Enterprise Resource Planning (ERP) Systems. International Journal of Computer and Information Technology, 3(4), 813-818.
Gupta, S., Misra, S. C., Kock, N., & Roubaud, D. (2018). Organizational, Technological and Extrinsic Factors in the Implementation of Cloud ERP in SMEs. Journal of Organizational Change Management, 31(1), 83-102.
Hakim, A., & Hakim, H. (2010). A Practical Model on Controlling the ERP Implementation Risks. Information Systems, 35(2), 204-214.
Hanafi Zadeh, P., Zare Ravasan, A., Rouhani, S. (2009). Evaluation of Organizational Readiness to Implement ERP System Based on S7 McKinsey Model. Enterprise Resource Planning Systems Conference, (In Persian).
Heidari, H., Radfar, R., Mousakhani, M. (2018). The effective Drivers on Successful Implementation of Enterprise Resource Planning System in Manufacturing Industries. The Journal of Productivity Managemnet 11(43), 151-169, (In Persian).
Holland, C. P., & Light, B. (1999). A Critical Success Factors Model for ERP Implementation. IEEE software, 16(3), 30-36.
Huang, Z., & Palvia, P. (2001). ERP Implementation Issues in Advanced and Developing Countries. Business Process Management Journal, 7(3), 276-284.
Kwahk, K. Y., & Lee, J. N. (2008). The Role of Readiness for Change in ERP Implementation: Theoretical Bases and Empirical Validation. Information & Management, 45(7), 474-481.
Lawrence Norton, A., May Coulson-Thomas, Y., Coulson-Thomas, C. J., & Ashurst, C. (2013). Ensuring Benefits Realisation from ERP II: The CSF Phasing Model. Journal of Enterprise Information Management, 26(3), 218-234.
Li, C. W., & Tzeng, G. H. (2009). Identification of a Threshold Value for the DEMATEL Method Using the Maximum Mean De-Entropy Algorithm to Find Critical Services Provided by a Semiconductor Intellectual Property Mall. Expert Systems with Applications, 36(6), 9891-9898.
Mabert, V. A., Soni, A., & Venkataramanan, M. A. (2000). Enterprise Resource Planning: Survey of US Manufacturing Firms. Production and Inventory Management, 41(2), 52-58.
Menon, S. A., Muchnick, M., Butler, C., & Pizur, T. (2019). Critical Challenges in Enterprise Resource Planning (ERP) Implementation. International Journal of Business and Management, 14(7), 54-69.
Moohebat, M. R., Asemi, A., & Davarpanah Jazi, M. (2010). A Comparative Study of Critical Success Factors (CSFs) in Implementation of ERP in Developed and Developing Countries. International Journal of Advancements in Computing Technology, 2(5), 99-110, (In Persian).
Nagpal, S., Khatri, S. K., & Kapur, P. K. (2014). Exploratory Study to Identify Critical Success Factors Penetration in ERP Implementations. 3rd International Conference on Reliability, Infocom Technologies and Optimization; Trends and Future Directions.
Nah, F. F. H., Zuckweiler, K. M., & Lee-Shang Lau, J. (2003). ERP Implementation: Chief Information Officers' Perceptions of Critical Success Factors. International Journal of Human-Computer Interaction, 16(1), 5-22.
Ngai, E. W., Law, C. C., & Wat, F. K. (2008). Examining the Critical Success Factors in the Adoption of Enterprise Resource Planning. Computers in Industry, 59(6), 548-564.
Olfat, L., & Shahryari Nia, A. (2014). Interpretive Structural Modeling of Effective Factors of Partner Selection in Agile Supply Chain. Journal of Production and Operations Management,5(2),128-109,(In Persian).
Osintsev, A. (2016). The 5 Biggest Challenges When Implementing ERP for the First Time.
Otieno, J. O. (2008, May). Enterprise Resource Planning (ERP) Systems Implementation Challenges: A Kenyan Case Study. International Conference on Business Information Systems.
Pei-Fang, H. (2013). Integrating ERP and E-Business: Resource Complementarity in Business Value Creation. Decision Support Systems, 56, 334-347.
Project Management Institute. (2015). Pmbok Guide. Translated by: M., Ebrahimi, A., Bayati, & F., Adhami, Tehran: ARiana Ghalam Publishing, (In Persian).
Reitsma, E., & Hilletofth, P. (2018). Critical Success Factors for ERP System Implementation: A User Perspective. European Business Review, 30(3), 285-310.
Roshandel Arbatani, T., Ghaffari, A., & Ebrahim Pour, H. (2011). Channeling Customer Relationship Management (CRM) in the E-Government Framework. Journal of Information Technology Management, 3(7), 55-76, (In Persian).
Sadeghi Moghaddam, M. (2011). Identifying the Factors that Influence the Readiness of the Enterprise Resource Planning System to Accept and Rank the Factors Using Fuzzy AHP. Master's Thesis, Mashhad: Ferdowsi University, (In Persian).
Sar, A., & Garg, P. (2012). Analysis of Critical Failure Factors in ERP Implementation: An Indian Experience. International Journal of Business Information Systems, 11(3), 360-378.
Sartorius, K., Eitzen, C., & Kamala, P. (2007). The Design and Implementation of Activity Based Costing (ABC): A South African Survey. Meditari Accountancy Research, 15(2), 1-21.
Shafi, K., Ahmad, U. S., Nawab, S., Bhatti, W. K., Shad, S. A., Hameed, Z., Tahira, A., & Shoaib, F. (2019). Measuring Performance Through Enterprise Resource Planning System Implementation. IEEE Access, 7, 6691-6702.
Shah, S. I. H., Bokhari, R. H., Hassan, S., Shah, M. H., & Shah, M. A. (2011). Socio-Technical Factors Affecting ERP Implementation Success in Pakistan: An Empirical Study. Australian Journal of Basic and Applied Sciences, 5(3), 742-749.
Shanks, G. (2000). A Model of ERP Project Implementation. Journal of Information Technology, 15(4), 289-303.
Shanks, G., Parr, A., Hu, B., Corbitt, B., Thanasankit, T., & Seddon, P. (1999). Differences in Critical Success Factors in ERP Systems Implementation in Australia and China. The University of Melbourne.
Somers, T. M. & Nelson, K. G. (2003). The Impact of Strategy and Integration Mechanisms on Enterprise System Value: Empirical Evidence from Manufacturing Firms. European Journal of Operational Research, 146(2), 315-338.
Sumner, M. (2000). Risk Factors in Enterprise-Wide/ERP Projects. Journal of Information Technology, 15(4), 317-327.
Tenkorang, R., & Helo, P. (2011). Enterprise Resource Planning (ERP): A Review Literature Report. Proceedings of the World Congress on Engineering and Computer Science, 2, 19-21.
Venkateswaran, N., & Mahalakshmi, V. (2012). ERP Implementation: A Compilation and Analysis of Critical Success Factors. International Multidisciplinary Research Journal, 2(1), 103-109.
Virtanen, T. (2019). ERP Implementation-Case Study. Master’s Thesis, in Haaga- Finland: Helia University of Applied Sciences.
Yingjie, J. (2005). Critical Success Factors in ERP Implementation in Finland. Master’s Thesis, Finland: Swedish School of Economics and Business Administration.
Zehedi, M., Rezaee, A., Darini, V., Namdar Joyami, E. (2018). Designing a Model for the Selection and Implementation of Organizational Resource Planning Systems in Iranian Organizations. Quarterly Journal of Public Organzations Management,6(3),131-144,(In Persian).