ERP-ProjectMgmt-Interfaces2006

ERP-ProjectMgmt-Interfaces2006 - informs Vol. 36, No. 5,...

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Vol. 36, No. 5, September–October 2006, pp. 458–469 issn 0092-2102 ± eissn 1526-551X ± 06 ± 3605 ± 0458 inf orms ® doi 10.1287/inte.1060.0203 © 2006 INFORMS Achieving Success in Large Projects: Implications from a Study of ERP Implementations Thomas W. Ferratt Department of Management Information Systems, Operations Management, and Decision Sciences, School of Business Administration, University of Dayton, Dayton, Ohio 45469-2130, ferratt@udayton.edu Sanjay Ahire Moore School of Business, University of South Carolina, Columbia, South Carolina 29208, ahire@moore.sc.edu Prabuddha De Krannert Graduate School of Management, Purdue University, West Lafayette, Indiana 47907-2056, pde@purdue.edu Executives in charge of large projects must decide how to spend their energies, even though typically they are not trained to manage such projects. We have derived two implications for managers based on prior research: adhere to the fundamentals of project management and unearth the best practices for large-project success. Through a study of more than 70 enterprise-resource-planning (ERP) projects, we have investigated our hypoth- esis that greater success in implementation is related to greater adoption of the best practices. For most of the participants in our study, our hypothesized model holds. For some, however, careful deviation from this model also proved successful. Additional implications we have derived include recommendations to specify a model of the project outcomes, understand the factors that make a project large and risky, and include a focus on managing large projects in executive education and development. Key words : information systems: management; project management. History : This paper was refereed. M anaging large projects is challenging for execu- tives. In the networked economy of the future, executives will have to conduct business by man- aging projects that require multiple alliances (Parise and Casher 2003). For example, in some current large projects, companies outsource major organiza- tional functions, such as information technology (Lee et al. 2003). Other large projects, such as implementa- tions of enterprise-resource-planning (ERP) systems, require organizational transformations. Executives will increasingly have to manage large projects to con- duct normal operations and facilitate adaptation. What is considered a large project varies from one context to another. Factors that determine project size include complexity, duration, and budget. In ERP projects, for example, the complexity depends on the project scope, including the number of busi- ness functions affected and the extent to which ERP implementation changes business processes and the ways people work. ERP projects achieving real transformation average one to three years in duration (Koch 2002). Resources required include hardware, software, professional services, and internal staff, with estimates of their cost ranging from $0.4 million to $300 million, with an average of about $15 mil- lion (Koch 2002). We have studied ERP projects, but a number of authors examined other types of large
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This note was uploaded on 08/07/2011 for the course ERP 2000 taught by Professor Giachetti during the Spring '11 term at FIU.

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ERP-ProjectMgmt-Interfaces2006 - informs Vol. 36, No. 5,...

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