How to Disable Mortal Loops of Enterprise Resource Planning (ERP) Implementation: A System Dynamics Analysis

Abstract

Successful Enterprise Resource Planning (ERP) implementation depends upon various factors known as critical success factors (CSFs). This study developed a system dynamics model of ERP implementation based on CSFs to discuss ERP implementation complexities, which identifies the effect of CSF interrelations on different aspects of ERP project failure. Based on the model hypothesis, CSF interrelations include many causal loop dependencies. Some of these causal loops are called mortal loops, because they may cause the failure of risk reduction efforts to a more severe failure in effect of lack of system thinking on CSFs interrelations. This study discusses how system thinking works as a leverage point for overcoming ERP implementation challenges.

Keywords

• enterprise resource planning (ERP)
• critical success factor (CSF)
• system dynamics simulation
• implementation strategies
• causal loops
• implementation dynamics