What are the critical success factors for ERP implementation ? Explain.

The following factors are critical in ERP success: Top Management Commitment: Unless top management takes a conscious decision to take out the "best" people for an extended period of time (several months) at the cost of "losing the best people" during implementation, ERP has little chance of success. Change Management Strategy: The management commitment involves the management of change. Unless top management is involved directly, it is impossible for any line manager to face the oppression to such changes. Business Strategy: It is also important that the ERP implementation is in-line with the business strategy and the objectives of the ERP implementation is clear to the business. Project Scoping: The core ERP will not satisfy all the organization's requirements. It is also important to have a ERP strategy in place with the modules of ERP being implemented and how the new ERP will integrate with other systems and tools. Project Team: It is important to have a full time dedicated project team with a project manager to handle ERP implementation. Documentation and Project Document Repository: While it is important to have proper documentation around all phases of an ERP implementation, It is also important to have a systematic project repository in place with details of all documents related to the project. Resistance to over-customization: ERP implementation is a golden opportunity to put such "systems in place" thus tendency to "do it my way" leading to large-scale customization must be avoided. Budget and Financial Commitment: ERP is a costly affair and can sometime an implementation overshoot its budget cost. Thus, having a contingency budget can be beneficial in such circumstances.