CRITICAL FACTORS AFFECTING ENTERPRISE RESOURCE PLANNING IMPLEMENTATION IN THE CASE OF COMMERCIAL BANK OF ETHIOPIA

Abstract

Enterprise resource management (ERP) refers to type of software that organization use to manage day to day activity business activity such as accounting, procurement, project management, risk management and compliance & supply chain operation. A complete ERP suit also include enterprise performance management (EPM) software that help plan, budget, predict and report on an organization financial result. The main objective of this study is to assess the critical factor that affect the implementation of ERP in the case of commercial bank of Ethiopia. The implementation of ERP require several amount of resource, time and budget all the requirement accordingly have been analyzed with its impact in the implementation stage. Both quantitative and qualitative method used for collecting data. The quantitative data was collected using questionnaires from 106 respondents who have participated in the project implementation phase, the collected data was analyzed using SPSS. For the qualitative study, direct interview was conducted to collect data from 10 respondents which most of the participate in the project managerial area. The study revealed that critical factor which affect ERP implementation organizational support, the training provided during the implementation phase, compatibility and data accuracy are factor which helped for successfully implement ERP. The challenges faced during the implementation was knowledge gap between staff and top management involvement. The impact of these challenge and factors have been analyzed. The researcher has recommended for continuous skill development of the staff and improve communication with vendors during the implementation of ERP since this all have affected the implementation stage of the project in CBE.