Navigating SAP ERP Implementation: Identifying Success Drivers and Pitfalls

As businesses strive to enhance the sustainability of their operations, there is a growing shift from traditional on-premise systems to cloud-based Enterprise Resource Planning (ERP) solutions. This study provides a comprehensive analysis of ERP implementations, focusing on the factors that determine the success or failure of these transitions. By leveraging frameworks such as the Diffusion of Innovation, Innovation Resistance, and the Technology-Organization-Environment model, the study identifies critical success factors (CSFs) and challenges faced by organizations during ERP adoption. Based on a content analysis of 44 published case studies detailing SAP deployments, the research outlines six key characteristics that distinguish successful implementations from failed ones. ERP systems integrate data across all organizational functions, making their deployment a complex and multifaceted process involving diverse end users. To better understand the influence of organizational, technological, and individual factors on ERP success, we developed a conceptual framework grounded in existing research. While most studies focus on the deployment and acceptance stages of ERP, this study emphasizes the often-overlooked post-implementation phase, incorporating insights into user priorities and CSFs. Findings reveal that the primary cause of failure in 16 SAP implementations was a lack of internal organizational readiness and a supportive culture. In contrast, the success of SAP deployments in 28 organizations was largely attributed to the presence of structured project management methodologies, a conducive organizational culture, and thorough internal preparedness. The data for this analysis were sourced from secondary publications, which, although informative, may not capture all relevant factors, potentially affecting the objectivity of the findings.