The Role and Impact of Project Management in ERP project implementation life cycle

Abstract

Recent advancement of Information Technology in business management processes has
flourished ERP as one of the most widely implemented business software systems in variety of
industries and organizations. This paper presents review on the impact of project management in
ERP project life cycle by studying various project management methodologies. Also the role and
critical activities of project manager, project team and hence project management is explored in
ERP projects implementation in organization of different sizes and culture.

Full text

© 2011 Anees Ara , Abdullah S. Al-Mudimigh. This is a research/review paper, distributed under the terms of the Creative Commons
Attribution-Noncommercial 3.0 Unported License http://creativecommons.org/licenses/by-nc/3.0/), permitting all non-commercial use,
distribution, and reproduction inany medium, provided the original work is properly cited.
Volume 11 Issue 5 Version 1.0 April 2011
Type: Double Blind Peer Reviewed International Research Journal
Publisher: Global Journals Inc. (USA)
ISSN:
Abstract-
: Recent advancement of Information Technology in business management processes has
flourished ERP as one of the most widely implemented business software systems in variety of
industries and organizations. This paper presents review on the impact of project management in
ERP project life cycle by studying various project management methodologies. Also the role and
critical activities of project manager, project team and hence project management is explored in
ERP projects implementation in organization of different sizes and culture.
Keywords:
ERP, Project Management, Implementation phase, organizational culture, Risk.
Classification:
The Role and Impact of Project Management in ERP project implementation life cycle
Strictly as per the compliance and regulations of:
GJCST Classification: J.1, K.3.m
The Role and Impact of Project Management in ERP project
implementation life cycle
By Anees Ara, Abdullah S. Al-Mudimigh

©2011 Global Journals I nc. (US)
The Role and Impact of Project Management in
ERP project implementation life cycle
Anees Araα, Abdullah S. Al-Mudimigh
Abstract-
Recent advancement of Information Technology in
business management processes has flourished ERP as one of
the most widely implemented business software systems in
variety of industries and organizations. This paper presents
review on the impact of project management in ERP project life
cycle by studying various project management methodologies.
Also the role and critical activities of project manager, project
team and hence project management is explored in ERP
projects implementation in organization of different sizes and
culture.
KeyWords: ERP, Project Management, Implementation
phase, organizational culture, Risk.
I. Introduction
RP is a system for the seamless integration of all
the information flowing through the company such
as finances, accounting, human resources, supply
chain, and customer information [8]. The selection,
procurement, and deployment of an ERP system are
nothing but involvement of high risks in exchange for
significant business and financial rewards [12]. A
successful ERP system can be the backbone of business
intelligence for an organization because it can give
managers an integrated view of the processes involved
within it [14]. The effective ERP implementation brings in
reduction of cost improvement in quality, productivity &
customer service, better resource management,
improved decision-making, planning and hence
organizational empowerment [15]. Despite the wide
spread applications and benefits of ERP systems, the
statistics show that about 30% of ERP implementations
have been successful [16]. In order to overcome failures
through comprehensive literature review 11 critical
factors for successful implementation of enterprise
systems were identified as ERP teamwork and
composition; change management program and culture;
top management support; business plan and vision;
business process reengineering with minimum
customization; project management; monitoring and
evaluation of performance; effective communication;
software development, testing and troubleshooting;
project champion; appropriate business and IT legacy
sysFactstems .
About
α
- Department of Information Technology College of Computer
and Information Sciences King Saud University
About
-
Department of Information Systems College of Computer and
Information Sciences King Saud University
II. Project management
methodologies and techniques
ERP is a management mode or techniques.
Many companies regard ERP system implementation as
a project management [7]. The implementation of ERP
projects involves various management functions, which
inevitably leads to different levels of management
reorganizations [9]. Successful project management is
about managing the risk. Project Management is the
application of knowledge, skills, tools, and techniques to
project activities to meet project requirements. This can
be done by using a formal project management structure
(PMS). One of the worlds famous PMS is project
management body of knowledge (PMBOK), which is
developed by Project management institute (PMI). This
methodology includes 5 processes/phases of project
management such as project initiation, planning,
execution, control, and closing. Also it is comprised by 9
knowledge areas such as Project Integration
Management, Project Scope Management, Project Time
Management, Project Cost Management, Project Quality
Management, Project Human Resources Management,
Project Communications Management, Project Risk
Management, and Project Procurement Management.
The results from the study on project management
strategies under PMBOK frame work by Fergal et- al[3],
illustrates PMBOK as bit fit for ERP projects and also
reveals that the importance of project governance and
the need for a multi-level structure spanning both the
cooperate and local levels. These structures would
ensure the project to be directed properly & focused, and
to reduce delays & rework due to the fact that timely
problem resolution could be carried out [3].
Since ERP environment faces constant change
and reassessment of organizational processes and
technology [18] and hence the project management
method used with ERP deployments must provide
adaptability and agility to support these evolutionary
process and technology [17]. The major problem with
software development/deployment is managerial, but not
technical. Therefore a method of augmenting structured
project methods with agility to produce a new approach
to managing projects is proposed by Alleman [12]. This
method is based on venture capitalist approach which
includes: staged investments, managed risks & people
(team involved). The author discovered that traditional IT
project management waterfall model which includes
E
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Email: aahamed@ksu.edu.sa
Email:
mudimigh@ksu.edu.sa

©2011 Global Journals Inc . (US)
planning, change and stability had several erroneous
assumptions. However he suggested that through
planning in the presence of uncertainty, avoiding
dysfunctional relationships and improper pretentions, we
can overcome the flaws in traditional approach. By
applying agile values, author proposed the following
principles for managing ERP projects in agile manner:
assume simplicity, embrace change, enabling the next
effort, incremental change, maximize stakeholder value,
manage with a purpose, multiple views, rapid feedback,
working software is the primary goal and travel light[12].
III. Role of project manager
Jones et-al [19] explained that the first six out of
sixteen technology factors associated with software
disasters are specific failures in the domains of project
management, and three of the other technology
deficiencies can be indirectly assigned to poor
management practices. The top 10 ERP management
headaches rank issues are project size, staffing, risk
management, unreasonable deadlines, funding,
organizational politics, scope creep, unexpected gaps,
interfaces, and resistance to change [20]. One of the
basic principles for assuring the ERP implementation
success is the appointment of the project manager, who
should be most talented business manager. The
characteristics of a successful project manager are
flexible, disciplined, quick learner, good decision maker,
ERP expert, having business experience, political clout,
good formal education, well liked, and motivates staff
[23]. In order to make ERP project successful, the project
manager must work efficiently in the following areas:
deciding on project scope, managing risks, discovering
gaps, the right staff, preventing brain drain, project
scheduling, interface with other systems, monitoring
progress, and managing chaos[20]. In addition, the
focused management by project manager of the
following critical activities that streamline the ERP project
management will enhance the success of any ERP
project: Embrace overall goals and objectives, defining
requirements, review as is – to be, use proto education,
business system test/conference room pilot(CRP),
execute timely cut-over/conversion processes, and going
live and beyond[11].
IV. The impact of project management
in ERP Implementation
The strategic project management in [system
evolution] enables success by first detecting the need for
change in all relevant corners of the company, and
second, servicing the need with appropriate resources.
By actively addressing the change needs of people,
process, and technology, the SPM will ensure the system
that is deployed meets tenets of overall business strategy
while also becoming the enabler of success.
a)
Pre implementation
In the article [21], the author proposes that the
key to successful ERP implementation is through the use
of project management life cycle theory analysis of
various stages of ERP implementation, and it cannot be
considered lead to failure. He supports his stand by
introducing the Tasly ERP projects in the pre project
research, project organization and project management
in the process of successful experience. Throughout the
project management concepts and methods of
operation, ultimately leads to success of ERP system and
enhances the overall enterprise management level. And
due to comprehensive survey & evaluation, efficient
project management team, sound project management
information and because of the need and the change
continues to improve the Tasly was successful in
implementing ERP.
b)
During implementation
Tsai et al[7], through an immense literature
review identified and categorized 8 achievement level of
project management as (1) fulfilling business
implementation goal (2) full of top management support
(3) meeting schedule goal (4) meeting budget objective
(5) triggering effective communication (6) solving
problem (7) fulfilling integration of system and (8) user
acceptance[7]. The study and the empirical investigation
on consultant criteria, project management and
performance enhancement indicated that these three
factors are integrated and the service quality one affects
the other and hence adds to performance enhancement
of the ERP implementation [7].
c)
Post implementation
Ying shi [12], through a case study in application
research of project management in ERP system
implementation process, revealed that the Project
management theory and methods were used in the
construction of enterprise information, in line with the
overall planning, step by step principles for the business
to the ERP project involves all aspects of effective
planning, organization, management and monitoring,
thus to achieve the desired goals and effect for the
enterprise benefits.
d)
Organizational culture
Public and private sectors: The recent years
have shown a tremendous growth in application of ERP
systems in public and government sectors. It is observed
that public leaders are more concerned in implementing
the best practices for each business process provided by
ERP. In general the ERP project implementation is based
on the three factors as people, process and technology.
But the IT based challenges in government sectors are
mostly human than technical. And one of the main
causes among them is poor project management [5].
From the study on Jordanian culture in [4] the author
described that there is a significant difference in project
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The Role and Impact of Project Management in ERP project implementation life cycle
Email:
Email:
mudimigh@ksu.edu.sa

©2011 Global Journals I nc. (US)
management aspects, in ERP implementation, when
applied to public and private sectors. Moreover, since the
critical decisions and approvals are taken only by top
management and due to rigid hierarchy and structures,
more bureaucracy and delay in decision making in public
organizations leads to affect timely implementation [4].
Large and SMEs: Through the appropriate use of
Characteristic Analysis Method (CAM), a tool to ensure
that the IT project is manageable and consistent by its
different goals content and development approaches, a
case study on three SMEs, the author shown
inadequacies in the fields of management and leadership
that the implementation of ERP system causes risks in
companies [15].
e)
Risk Management
ERP projects implementations are complex,
resource-intensive and risky. And risks can be mitigated
through strong executive sponsorship, communication
and involvement of stakeholders, and good project
management [5]. Davide et- al[6] classified ERP project
failure into four levels as process failure, expectation
failure, interaction failure, and correspondence failure,
which directly relates to the critical activities of project
management team as explained earlier in this paper [6].
Hence an emphasis must be placed on project team
selection and project manager’s pursuance should be on
specific areas of ERP life cycle, i.e. if any unclear area
not solved in exploration cycle of ERP project must be
taken care in implementation else this would remerge
post go-live with disastrous consequences [3].
V. Conclusion
By studying various project management
methodologies and techniques, and also through various
literatures, it is found that in ERP project life cycle, the
project management plays a key role and hence a proper
emphasis must be placed in selecting the project team
that ensures proper decision making and results in timely
project completion. Hence by applying the theory and
method of project management life cycle on project
implementation will consequently endure success .The
future research can be carried out in enhancing ERP
implementation through web 2.0 technologies and also
Lean management, which indeed suffice with ERP
software.
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