An Analytic Framework for Evaluation of ERP Implementation

Enterprise Resource Planning (ERP) integrates all facets of business enterprise by making information accessible seamlessly across various functions. ERP implementations at numerous organizations are unsuccessful since the business processes are not reengineered to necessities of the new system. The literature review shows lack of research of an analytic framework which evaluates organizations who have implemented ERP. This paper utilizes one of the Six Sigma tools called the Cause and Effect (CE) diagram to consolidate the Critical Success Factors (CSF) of ERP implementations available in the literature. An analytic model is developed by leveraging the CSFs to analyze the performance of ERP implementation. The case study-based research is used to validate the analytic framework. The two case studies are: one a company that implemented ERP successfully; and the other a company that initially failed in implementing ERP and subsequently reengineered its way to success. Evaluation of organizations confirms that the new framework can be used to analyze the effectiveness of ERP implementation