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Bangladesh is the second largest exporter in the Ready-Made Garment (RMG) sector globally. Many RMG companies in Bangladesh are attempting to implement Enterprise Resource Planning (ERP) systems but are not achieving the expected results. This challenge is not unique to Bangladesh, as ERP implementations have failed in 55% to 75% of European and American manufacturing companies. Critical Success Factors (CSFs) play a pivotal role in the various stages of ERP implementation, and the success of these implementations largely depends on these factors.
This research identifies the top twelve critical factors for ERP implementation through a review of the literature and expert opinions. To rank these factors, the study employs the VIKOR method, a Multi-Criteria Decision-Making (MCDM) tool known for handling complex decision-making processes.
Furthermore, the research reveals that these factors are interrelated, and this interdependence is illustrated using a Causal Loop Diagram (CLD). The CLD highlights how changes in one factor can influence others, creating a dynamic and interconnected system of dependencies. For instance, effective communication can enhance user involvement, while strong project management can improve data accuracy and business process reengineering.
Additionally, the study analyzes the appropriate strategy and team structure necessary for successful ERP implementation. A well-defined strategy involves setting clear objectives, ensuring top management support, and fostering a culture of continuous improvement. The ideal team structure includes a balanced mix of technical experts, project managers, and end-users, all working collaboratively towards the common goal of successful ERP integration. |
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