Factors Incompatibility of Selection and Implementation of ERP Systems for Construction Organizations - Lessons from Sri Lanka

Information and Communications Technology (ICT) and Information Systems (ISs) compose a critical role in today’s organization environment. Enterprise Systems (ESs) such as Enterprise Resource Planning (ERP), Customer Relationship Management (CRM) systems are the most cutting-edge IS in present corporate world. ERP system bridges the organization’s different functions together into single large integrated system and it makes an extra opportunity for growth and increased productivity. Enterprise system usage in manufacturing companies is well established. However, the available studies relating to the use of ERP systems in project based companies such as construction organizations is comparatively low and success rate is also limited. The literature illustrates that there are many factors that affect selecting and implementation of ERP systems.

This research is mainly based on qualitative research methodology. Primary data were collected from construction industry and their Information Technology (IT) experts and ERP implementation project managers though intensive interviews. The objective of using the qualitative research was used to gain an understanding of underlying reasons, opinions, and motivations. It facilitated to find out common and main barriers and their effect to implementation and adaptation of ERPs against factors influencing the selection process. Furthermore, secondary data such as literature was also contributory to the main outcome and results.

Influencing factors that analysis research results reveal new way of rationale for selecting and implementation of ERP systems in construction organizations. The main propositions derived from the study are as follows: higher influencing factors in selecting process are Vendor/Software Reputation, Alignment with Business Function, Cost and C-level Officers' (such as CEO, CFO, COO, CIO, etc.) countenance. Important factors influencing success of implementation and adaptation of ERPs are Being in alignment with Business Function, Support and Training, Usability and User friendliness, Implementation Team, Vendor-Employee Interaction and C-level Officers' countenance. In other words this research illustrates that not only an IT related factors can influence the success of ERP implementation and also non-IT related factors are much significant to success. Beyond that the study also reveals that how to do sensible selection process which assist the success of implementation of ERP.