ERP PROJECT IMPLEMENTATION IN ETHIO TELECOM: AN INQUIRY INTO THE PERFORMANCE, CHALLENGES AND PROSPECTS

Abstract

The purpose of the study was to assess the implementation of Enterprise resources planning (ERP) and evaluate the overall the performance, challenges and prospect of implementing Enterprise Recourses planning (ERP) in ethio telecom. In addition, challenges encountered during ERP implementation and to suggest practical recommendations which can help to have effective implementation of ERP. To address the objectives, descriptive research design was used in order to elaborate the existing phenomenon as it exists. The source data were both primary and secondary source of data and also a mixed research method (i. e. an approach of both quantitative and qualitative data collection methods) were used to collect data from management, administrators, supervisor and specialist. The data gathered through questionnaire were analyzed using frequency and percentage value of the respondents using SPSS. The reliability of the data was analyzed by using cornabach’s alpha. Furthermore, the participants were selected using simple random sampling method, 104 participants were selected from the total population of 140. The participant includes the department of ERP section, PRO, supply chain, human resource and managements. Consequently, results show that the deployed ERP system is not properly implemented and practiced on the basis of the selected effectiveness variables; it is observed that the ERP system is not effective across the divisions the system is implemented. In addition, problems which hinder the practice of the system were identified. As a result, lack of appropriate training for all system users was identified as the most serious problem while proper support from the integrators side. Hence, the researcher has recommended that the company should re-consider its system with regard to the support of top management in assisting successful implementation of ERP in ethio telecom. Moreover, user interface of the system should easily be understandable; there should be mechanism so that users can work on the system without any challenge. Finally, the company should give emphasis for the reporting formats so that any decision maker or external stakeholder can the reporting formats should be easily understandable.