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Analysis of critical success factors relevance along SAP implementation phases

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This paper seeks to analyze the relevance of critical success factors along SAP implementation phases. The ASAP implementation methodology is used as the SAP implementation reference model. Applying a process quality management method and the grounded theory method, we derive a matrix of critical success factors versus ASAP processes. Then, we evaluate the relevance of critical success factors along the five phases of ASAP, specifically of those ones related with organizational perspective. These findings will help managers to develop better strategies for supervising and controlling SAP implementation projects.
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2001 — Seventh Americas Conference on Information Systems 1019
ANALYSIS OF CRITICAL SUCCESS FACTORS RELEVANCE
ALONG SAP IMPLEMENTATION PHASES
José Esteves
Departament de Llenguatges i Sistemes
Informàtics
Universitat Politècnica de Catalunya
jesteves@lsi.upc.es
Joan Pastor
Departament de Llenguatges i Sistemes
Informàtics
Universitat Politècnica de Catalunya
pastor@lsi.upc.es
Abstract
This paper seeks to analyze the relevance of critical success factors along SAP implementation phases. The
ASAP implementation methodology is used as the SAP implementation reference model. Applying a process
quality management method and the grounded theory method, we derive a matrix of critical success factors
versus ASAP processes. Then, we evaluate the relevance of critical success factors along the five phases of
ASAP, specifically of those ones related with organizational perspective. These findings will help managers
to develop better strategies for supervising and controlling SAP implementation projects.
Keywords: Enterprise resource planning, critical success factors, ASAP, process quality management method,
SAP implementations
Introduction
Despite the benefits that can be achieved from a successful ERP system implementation, there is already evidence of failure in
projects related with ERP implementations (Davenport 1998). Too often, project managers focus on the technical and financial
aspects of a project and neglect to take into account the no technical issues. To solve this problem, some researchers are using
a critical success factors (CSFs) approach to study ERP implementations and more specifically, SAP implementations.
The management of CSFs in SAP implementations is a thorny issue in SAP research. There is the practical evidence that CSFs
do not have the same importance along the various phases of a SAP implementation project. Thus, we attempt to develop a
theoretical framework that describes this distribution along the SAP project processes. Several academic studies have been
published related to CSFs identification but there is no evidence of studies related with operationalization and management of
these CSFs. We agree with Ward (1990, p. 120) in that CSFs are not, in themselves, directly manageable. Rather than the CSFs,
it is the processes that define what a management team 'Do', processes that can be owned, defined, measured and managed. It is
therefore necessary to relate the CSFs to the SAP project implementation processes to provide an overall view of the importance
of each process to the management of the CSFs in SAP implementations.
This paper describes the results of a research project that seeks to contribute to understanding the success of SAP implementation
projects. Here, our goal is to relate CSFs of ERP implementations and the processes of the ASAP methodology and develop a
scheme of CSFs relevance along the ASAP phases.
This paper is organized as follows. First, we present the unified model of CSFs that we use in our research and a brief description
of the ASAP methodology. Next, we briefly describe the research framework followed. Then, we describe the findings, presenting
the matrix of CSFs relevance. Finally, some conclusions and further work are included.
Enterprise Systems
1020 2001 — Seventh Americas Conference on Information Systems
Unified Model of CSFs for SAP Implementations
Rockart (1979) was the first author that applied the CSF approach in the information systems area. He proposed the CSF method
to help CEOs specify their own information needs about issues that were critical to their organizations, so that information systems
could be developed to meet those needs. According to his account, CSFs are "…the limited number of areas in which results, if
they are satisfactory, will ensure successful competitive performance for the organization". They have been applied to many
aspects and tasks of information systems, and more recently to ERP systems implementations (ex. Bancroft et al., 1996; Clemons,
1998; Dolmetsch et al., 1998; Holland et al., 1999; Kale, 2000; Parr et al, 1999; Stefanou, 1999; Sumner, 1999). Based in a set
of studies published by several authors, containing commented lists of CSFs in ERP implementations, Esteves and Pastor (2000)
unified these lists and created a CSFs unified model (see Fig. 1). The advantage of this model is that it unifies a set of studies
related with lists CSFs identified by other authors; the CSFs are categorized in different perspectives and, each CSF is identified
and defined.
Strategic Tactical
Organizatio
Sustained management support
Effective organizational change management
Adequate project team composition
Good project scope management
Comprehensive business re-engineering
Adequate project champion role
Trust between partners
User involvement and participation
Dedicated staff and consultants
Appropriate usage of consultants
Empowered decision makers
Adequate training program
Strong communication inwards and outwards
Formalized project plan/schedule
Reduce trouble shooting
Technologi
Avoid customization
Adequate ERP implementation strategy
Adequate ERP version
Adequate software configuration
Adequate legacy systems knowledge
Figure 1. Unified Critical Success Factors Model
The ASAP Implementation Methodology
In 1996, SAP introduced the Accelerated SAP (ASAP) implementation methodology with the goal of speeding up SAP
implementation projects. ASAP was advocated to enable new customers to utilize the experience and expertise gleaned from
thousands of implementations worldwide.
The accelerated SAP (ASAP) implementation methodology is a structured implementation approach that can help managers
achieve a faster implementation with quicker user acceptance, well-defined roadmaps, and efficient documentation at various
stages. This is specifically targeted for small and medium enterprises adopting SAP. The key phases of the ASAP methodology,
also known as the ASAP roadmap, are: project preparation, business blueprint, realization, final preparation, go live & support.
The structure of each phase is the following: each phase is composed of a group of work packages. These work packages are
structured in activities, and each activity is composed of a group of tasks. For each task, a definition, a set of procedures, results
and roles are provided in the ASAP roadmap documentation. According to a survey of Input company (Input 1999) organizations
have been more satisfied with SAP tools and methodologies than with those of implementation partners. Implementations where
ASAP or Powered by SAP methodologies were used averaged only 8 months, compared to 15 months for standard
implementations.
Research Framework for Evaluating CSFs Relevance
We have used the Process Quality Management (PQM) method (Ward, 1990) to relate the CSFs and ASAP processes. The PQM
method developed by IBM is "designed to assist the management team reach consensus on the most critical business activities,
i.e. those whose performance will have the biggest impact on the success or failure of the enterprise" (Ward, 1990). PQM uses
the concept of CSFs (Rockart, 1979) to encourage management teams to focus their attention on the critical issues of the business,
Esteves & Pastor/CSFs relevance along SAP Implementation phases
2001 — Seventh Americas Conference on Information Systems 1021
Unified Model of CSFs
in ERP Implementations
ASAP Methodology
Processes
Process Quality Management
Method (PQM)
+
Grounded Theory Method
Matrix of CSFs
versus
ASAP Processes
CSFs
Relevance
Unified Model of CSFs
in ERP Implementations
ASAP Methodology
Processes
Unified Model of CSFs
in ERP Implementations
ASAP Methodology
Processes
Process Quality Management
Method (PQM)
+
Grounded Theory Method
Process Quality Management
Method (PQM)
+
Grounded Theory Method
Matrix of CSFs
versus
ASAP Processes
CSFs
Relevance
and then to base the IT strategy on these. Next, we describe the following steps of the PQM method, as we have applied them in
our research case (see Fig. nº. 2):
First step: define the mission. We define the following mission: "To implement the SAP system, according to the
organization's business and organizational needs" and then "to show that the SAP implementation will add value through the
satisfaction of the organization requirements previously defined". This mission reflects the intention of the whole group of
people involved in a SAP implementation;
Second step: define CSFs. We will use the CSFs unified model proposed by Esteves and Pastor (2000);
Third step: define the processes. In our case, the processes are those defined in the ASAP methodology;
Fourth step: establish the relationship of CSFs versus ASAP processes. This is done through the creation of the matrix
presented in Fig. 3. For creating this matrix, we have used 'open coding' from grounded theory (Glaser and Strauss, 1967)
to analyze ASAP documents. The choice of this method ties in with the commitment to the process of developing emergent
theory.
Figure 2. Research Framework.
According to Hardaker and Ward (1987), "the object is to single out the processes that have a primary impact on this particular
CSF". What we are looking for are those essential activities and not all of them.
The matrix in Fig. nº. 3 has been built in the following way. We focused on each CSF and asked this question: Which ASAP
processes must be performed especially well for us to be confident of achieving this CSF? Then, we looked at all the processes
and decided which ones were important for that CSF. Then, a second process was used to validate and to get more reliability in
the research. We used 'open coding' from grounded theory method to analyze the ASAP methodology documentation.
Grounded theory is a general methodology for developing theory that is grounded in data systematically gathered and analyzed.
The methodology was presented initially by (Glaser and Strauss, 1967). Grounded theory method is composed of three phases(or
steps): open, axial and selective coding. Specifically, in this study we used the first step of grounded theory, named 'open coding'.
This step consists on grouping and classifying concepts into categories, and defining the attributes or characteristics pertaining
to each category. In our case, we chose as categories the CSFs and the concepts were drawn from the ASAP processes defined
by the ASAP methodology documentation. Open coding is presented as "the first basic analytical step" from which everything
else follows (Dey 1999, p. 97). Briefly, axial coding can be summarized as the step of connnecting categories and selective coding
focusing on a core category.
Next, we present part of the full matrix of CSFs versus ASAP processes built for the first phase of ASAP methodology, the project
preparation phase. In the project preparation phase we can evidence the importance of CSFs related to organizational aspects and
aspects related to project management establishment such as project plan/schedule formalization, effective organizational change
management and project management scope. Adequate project champion role or sustained management support are CSFs
important in all the processes, but this matrix should focus only the core relationships.
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1022 2001 — Seventh Americas Conference on Information Systems
CSFs in
ERP implementations
ASAP
Processes
Sustained management support
Effective organizational change
Good proj. scope management
Adequate proj. team composition
Meaningful business reengineering
User involvement and participation
Adequate Proj. champion role
Trust between partners
Dedicated staff and consultants
Strong communication
Formalized Proj. Plan/schedule
Adequate training program
Preventive trouble shooting
Usage of appropriate consultants
Empowered decision makers
Adequate ERP implementation
Avoid customization
Adequate ERP version
Adequate software configuration
Adequate legacy systems knowledge
Create and issue proj. charter
Review and refine impl. strategy
Establish proj. team working
env.
Determine proj. organization
Quality check proj. preparation
Number of CSFs occurrences 20 11 9 6 4 10 42 9 7 18 26 6 4 7 072190
Figure 3. Example of the Matrix CSFs Versus ASAP Processes for Project Preparation Phase
CSFs Relevance
The table of Fig. nº. 4 represents the CSFs relevance for each CSF in each phase. The values were calculated in the following way.
We built a matrix of CSFs versus ASAP processes for each implementation phase, and for each CSF we sum the number of
occurrences of that CSF (for instance, the sum of 20 in sustained management support CSF means that we defined 20
relationships between this CSF and 20 ASAP processes). Then we converted the number of occurrences (raw scores) in a
normative scale of ten scores. In a scale of this kind, results from 1-3 are considered no relevant, from 4-7 normal relevance, and
8-10 they are considered of high relevance. In our case, we see that almost all the factors are higher than 4. Thus, their relevance
is normal or high in some cases. We do not pretend to say that a CSF with a summation not high it is not important, what we say
is that it is less relevant in that period of the project. CSFs have all the same importance, therefore, all them should be carefully
respect and analyzed. The analysis of the table shows that:
In phase 1 (Project Preparation), the most relevant CSFs are sustained management support, project champion role and
formalized project plan/schedule. We are at the beginning of the implementation project and it is very important to identify
and plan the primary focus areas to be considered. This will help to establish a solid foundation for a successful R/3
implementation.
In phase 2 (Business Blueprint), the most relevant CSFs are project champion role, effective organizational change
management and user involvement. The goal of this model is to create the Business Blueprint that is a visual model of the
business future state after which organizations have crossed the R/3 finish line. It will allow the implementation project team
to clearly define their scope, and only focus on the R/3 processes needed to run the organization business.
In phase 3 (Realization), the most relevant CSFs are adequate software configuration, project champion role, and user
involvement. In this phase the configuration of SAP system begins, that is why the adequate ERP configuration factor is so
important as well as the involvement of users. They help in the system parameterization.
In phase 4 (Final Preparation), the most relevant CSFs are project champion role and preventive troubleshooting and it is time
to convert data and to test the system.
In phase 5 (Go & Live Support), the most relevant CSFs are project champion role, sustained management support and strong
communication inwards and outwards.
Esteves & Pastor/CSFs relevance along SAP Implementation phases
2001 — Seventh Americas Conference on Information Systems 1023
Phase1 Phase2 Phase3 Phase4 Phase5
OrganizationalStrategicSustained Management Support 85568
Effective Organizational Change 69656
Good Proj. Scope Management 54455
Adequate Proj. Team Composition 5 4444
Meaningful Business Process Reengineering47445
Perspective User Involvement and Participation 5 8 10 7 5
Proj. Champion Role 10 10 9 10 10
Trust Between Partners 54455
TacticalDedicated Staff and Consultants 55456
Strong Communication Inwards and Outwards 77568
Formalized Proj. Plan/Schedule 97775
Adequate Training Program 55574
Preventive Trouble Shooting 44797
Usage of Appropriate Consultants 54444
Empowered Decision Makers 35554
Technological StrategicAdequate ERP Implementation Strategy 54444
Avoid Customization 44444
PerspectiveTacticalAdequate ERP Version 44444
Adequate Software Configuration 5 6 10 6 6
Adequate Legacy Systems Knowledge 34444
Figure 4. CSFs Relevance Along the ASAP Implementation Phases
Next, we describe each CSF along the ASAP phases, classified by organizational and technological perspective.
Organizational Perspective
Sustained management support is more relevant at the beginning and at the end of the implementation. The reason is that at the
beginning senior management should help in the rollout of the project, analyze the business benefits, define the mission and scope
of the project and provide the resources needed for the project. At the end, there is the need to encourage the system usage and
help in the commitment of user involvement.
Good project scope management is relevant at the beginning when managers define the scope and in the last two phases because
the scope is usually revised and changed.
Effective organizational change management
and business process reengineering are more relevant in the second phase. In this
phase the business blueprint is defined, and the business processes are documented. There is the need to understand how the
organization intends to run its business within the SAP system and the changes in the organization.
Project team composition
is more relevant in the first phase because it is when the project team is established although it can be
re-structured along the implementation phases and according to the implementation needs.
User involvement and satisfaction
is relevant in the phases where their know-how is important to achieve a good customization
of the system to organizational needs. They participate in the definition of business requirements, help in the analysis of the SAP
configuration and in conversion of data and the testing of the system.
Project champion role
is relevant in all phases. It is less relevant in the third phase than in with the others because this phase is
dedicated to configuration tasks and here the role of the champion is to guarantee that everything goes according to the plan.
Trust between partners
is relevant at the beginning when all the stakeholders involved in the project should share their goals and
knowledge and at the end when they have to analyze and again share their knowledge to finish the project with success.
Strong communication inwards and outwards
is more relevant at the first two phases where there is strong need of communication
between senior management and the project team in the definition of project plan and scope, and in the final phase where there
is the need of a strong communication with the whole organization to start the go & live of the SAP system.
Enterprise Systems
1024 2001 — Seventh Americas Conference on Information Systems
Formalized plan and schedule relevance decreases during the implementation project. The reason is that at beginning it is
important starting planning as early as possible. A good project plan will ensure a better monitorization and coordination of
activities during the whole implementation.
Adequate training program
is more relevant in phase 4 because it is when the training program of end users starts, but in the
previous phases there are also training concerns related with project team training and to prepare end user training.
Preventive troubleshooting
is more relevant in the last phases, especially in the fourth phase during which issues arise when the
system is being tested.
Usage of appropriate consultants
is relevant especially in the first phase where managers have to decide the how, when and the
numbers of consultantsthat they will incorporate in the project team.
Empowered decision makers
is more relevant in the middle phases because there is the need to quickly decide things and thus
accomplish project plan/schedule on time.
Adequate ERP implementation strategy
is more relevant at the first phase because is in this phase that the SAP implementation
strategy should be decided.
Technological Perspective
Avoid customization has the same relevance along all the phases. This should always be taking into account when managers are
making decisions.
Adequate ERP version
has the same relevance along all the phases. From the beginning until the end of the project
implementation, SAP recommends that the project team follows the upgrade of SAP releases and should consider the adoption
of new ones.
Adequate software configuration
is more relevant in phase 3, when the SAP system is configured and more than 8.000 tables must
be parameterized. The software configuration should follow the business requirements defined in the previous phase.
Adequate legacy systems knowledge
is less relevant at the first phase because this phase is related with the preparation of project
implementation. In the next phases the need of knowledge of legacy systems is more relevant in order to minimize the effort of
configuration and help in conversion of data and the creation of interfaces.
Conclusions and Further Work
This study provides a schema of CSFs along the phases of ASAP methodology together with an evaluation of their relevance.
This schema was developed through the application of PQM and open coding from the grounded theory method and based on
a unified model of CSFs and the ASAP methodology documentation. The proposed relationships and relevances are useful
because:
We know which ASAP processes are important to manage each CSF;
We have an orientation of the relevance of each CSF in each stage of the SAP implementation project;
With this knowledge, we can better control and monitor the success of SAP implementations.
We would like to emphasize that this study represents the relevance of CSFs along the ASAP implementation phases. When
finished, the matrix will be a valuable document for the management of CSFs because managers will know the things that must
be done to achieve these CSFs. This CSFs relevance schema provides guidance to practitioners in planning and monitoring a SAP
implementation project.
Further research will try to validate the found results using case study method and interviews with people of various roles involved
in SAP implementation projects. To complete our application of the PQM method only one step remains - identifying the most
critical processes. However, we think that this step should be done with information provided by case studies, and not only based
in theoretical assumptions. Finally, we intend to formalize CSFs relevance analysis and develop a general framework to analyze
CSFs relevance in other ERP systems different from SAP.
Esteves & Pastor/CSFs relevance along SAP Implementation phases
2001 — Seventh Americas Conference on Information Systems 1025
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Despite the benefits that can be achieved from a successful ERP system implementation, there is already evidence of high failure risks in ERP implementation projects. Too often, project managers focus mainly on the technical and financial aspects of the implementation project, while neglecting or putting less effort on the nontechnical issues. Therefore, one of the major research issues in ERP systems today is the study of ERP implementation success. Some authors have shown that ERP implementation success definition and measurement depends on the points of view of the involved stakeholders. A typical approach used to define and measure ERP implementation success has been critical success factors approach. Along this line, in this research we seek to contribute to our understanding of the critical success factors of ERP implementations and how these factors can be put into practice to help the process of project management in ERP implementations. We attempt to build a consensus from previous research and to derive a unified model of critical success factors in ERP implementations. For this purpose we apply grounded theory as our main research method. We have collected all the relevant research material and we have coded it. To increase the validity and reliability of the study, the several information sources have been triangulated and inconsistencies have been clarified with additional documentation. This study provides the results of the open coding process from our application of the grounded theory method. After the coding step, we obtain an initial unified model of the critical success factors in ERP implementations. We then map these critical success factors in a matrix with four perspectives: organisational, technological, strategic and tactical.
Conference Paper
Many organizations have initiated enterprise-wide information management systems projects, using such packages as SAP, PeopleSoft and Oracle. These projects often represent the single largest investment in an information systems project in the history of these companies, and in many cases the largest single environment in any corporate-wide project. Seven organizations implementing enterprise-wide information management systems projects are presented which provide insights into the questions being raised upon their experiences.
Book
Most writing on sociological method has been concerned with how accurate facts can be obtained and how theory can thereby be more rigorously tested. In The Discovery of Grounded Theory, Barney Glaser and Anselm Strauss address the equally Important enterprise of how the discovery of theory from data--systematically obtained and analyzed in social research--can be furthered. The discovery of theory from data--grounded theory--is a major task confronting sociology, for such a theory fits empirical situations, and is understandable to sociologists and laymen alike. Most important, it provides relevant predictions, explanations, interpretations, and applications. In Part I of the book, "Generation Theory by Comparative Analysis," the authors present a strategy whereby sociologists can facilitate the discovery of grounded theory, both substantive and formal. This strategy involves the systematic choice and study of several comparison groups. In Part II, The Flexible Use of Data," the generation of theory from qualitative, especially documentary, and quantitative data Is considered. In Part III, "Implications of Grounded Theory," Glaser and Strauss examine the credibility of grounded theory. The Discovery of Grounded Theory is directed toward improving social scientists' capacity for generating theory that will be relevant to their research. While aimed primarily at sociologists, it will be useful to anyone Interested In studying social phenomena--political, educational, economic, industrial-- especially If their studies are based on qualitative data.