Overcoming the Challenges of Enterprise Resource Planning (ERP): A Systematic Review Approach

Overcoming the Challenges of Enterprise Resource Planning (ERP): A Systematic Review Approach

Godwin Banafo Akrong, Yunfei Shao, Ebenezer Owusu
Copyright: © 2022 |Pages: 41
DOI: 10.4018/IJEIS.306242
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Abstract

The study presents the results of a comprehensive review conducted between 2005-2020 to identify Enterprise Resource Planning (ERP) challenges, discover the divisions in which these challenges can be clustered, and provide general strategies to resolve these challenges. The study also found 25 categories that can be classified into ERP challenges. 65 ERP challenges were identified based on the reviewed literature, of which 18 were not provided with adequate solutions as to how to resolve them, and the related solutions as mentioned in the reviewed literature are presented in-depth. The result will help both academics and practitioners involved with how to resolve ERP system challenges.
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Introduction

Due to the extreme difficulty of certain organizational activities, firms have embraced the usage of enterprise resource planning systems (ERP) for decades. According to Beheshti and Beheshti (2010), an ERP is an information system (IS) that combines business functions to generate value and lower costs by providing the right information to the right people at the right time, allowing them to make the best decisions to manage an organization's capital constructively and efficiently (Costa et al., 2016; Shaul & Tauber, 2013; Catherine & Abdurachman, 2018). The factors obstructing ERP deployment are more prevalent in developing countries, as ERP systems are implemented and planned using more advanced technologies. ERP, according to several scholars, improves asset tracking, advocates resource adaptability, provides information to aid decision-making, and improves accountability and uniformity (Bramantoro, 2018; Fadelelmoula, 2018; Sriram et al., 2018; Trinoverly et al., 2018; Weli, 2019). It also helps departments integrate tasks, reduces financial reporting times, boosts output and productivity, streamlines operations, and reorganizes the workforce (AboAbdo et al., 2019; Bramantoro, 2018; Kulikov et al., 2020; Weli, 2019).

However, over time, companies' expenditures on implementing ERPs have proven to be costly, complicated, and time-consuming for most businesses, resulting in a lack of value for the deployed ERP system (Chofreh et al., 2020; Lozano & BayonaOré, 2017; Mahraz et al., 2020). According to Lozano and BayonaOré (2017), the aspects that tend to overcome the aforementioned issues include effective project management, well-defined priorities from the outset, and proper preparation of work teams. Surprisingly, due to the significant maintenance costs associated with ERP packages, only large-scale organizations are always able to manage them after decades (AlBar & Hoque, 2019; Mahraz et al., 2018; Mayeh et al., 2016). In addition to the popularity of ERP use, Prasetyo et al. (2019) report that the failure rate is exceptionally high. They contended that ERP implementation failure rates varied from 67% to 90% and that current research focuses on Critical Success Factors (CSF) rather than challenges/failure factors. According to their findings, about 6% of actively authored articles cover CSF, with less than 1% addressing the challenges. This implies that, while there is a large and nuanced literature on ERP, a deeper understanding of its shortcomings in the application and the need for a single source of information is required. As practitioners and researchers, they will utilize it as a starting point to get a deeper understanding of the existence and potential causes of ERP implementation failures, as well as how to reduce them to increase the likelihood of effective future implementation.

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