Critical success factor based resource allocation in ERP implementation: A nonlinear programming model

Abstract

This research examines how a Constrained Nonlinear programming model for ERP implementation (CNL_ERP) can facilitate Small and medium sized enterprises (SMEs) to deploy resources to address the Critical Success Factors (CSFs) in the pre-implementation phase, and to invest in them during implementation to increase the probability that the implementation will be successful. Applications of CNL_ERP in three case studies demonstrate that the average ERP implementation outcomes outperform the observed results. Using the Generalised Reduced Gradient Method, we developed an ERP implementation strategy realising resource allocation to CSFs. The strategy provides a rich picture of where to concentrate effort in the initial, intermediate and final phases, and is very helpful in enabling an SME to understand the progress of an ERP project and the resources needed. In case there are changes in resources (such as budget, team performance), the model enables SMEs to rank CSFs, and to adjust resources allocations accordingly to achieve the best ERP implementation performance.

Keywords

• ERP implementation
• SMEs
• Critical success factor
• Resource allocation
• Nonlinear programming