IMPLEMENTATION OF ENTERPRISE RESOURCE PLANNING - IT’S CHALLENGES: THE CASE OF AWASH INSURANCE COMPANY

Abstract

Enterprise Resource Planning (ERP) systems have been covered in both mainstream Information Technology (IT) periodicals, and in academic literature, as a result of extensive adoption by organizations in the last two decades. ERP systems are enterprise-wide application packages that are designed to provide information systems integrated support to various business functions. Though ERP has numerous benefits to the organization, its implementation involves amendments in business process and software configuration for better compatibility. ERP systems continue to evolve and being implemented by relatively smaller and regional companies. This research has carried out a descriptive study into the implementation of ERP; its Challenges, within Awash Insurance Company. The evaluation was based on the six Critical Success Factors which are top management support, project team competency, user training and human capability, interdepartmental communication, decision making and IT Infrastructure which cited as index for success of ERP implementation in others researches The study found that CSFs has influenced ERP implementation at AIC. That indicates AIC has implemented the ERP system successfully and smoothly. Besides, studying ERP implementation in developing countries like Ethiopia, which has not had noticeable experience in this regard, would be appealing for developers, vendors, consultants and ERP user companies. ERP systems make up a major investment and undertaking by most companies. Therefore, research and lessons learned in this area are very important. In addition to a significant initial literature review, this research has assessed matters regarding ERP As a result; this study will contribute relevant information to the literature on business information systems and to ERP systems in the insurance industry in particular. In addition the research also recommended further research gaps in regards of Software selection and Company performance.