important activities in an early erp implementation phase

Important activities in an early ERP

implementation phase

A case study at Valmet

Ida Hallberg

Emma Larsson

Independent degree project- First cycle

Third year, 15 credits,

Advisor: Håkan Sundberg

Examiner: Olof Nilsson

Course code: IG027G

Industrial Engineering and Management

Department of Science and Technology

Important activities in an early ERP implementation phase A case study at Valmet Ida Hallberg, Emma Larsson 2020-06-01

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Abstract

Research about implementing an ERP system has been investigated for many years but is still a current issue. This is due to the large number of implementations that fail. The purpose of this paper is to identify important activities in an early phase of an ERP implementation. The thesis is based on a literature study to create a foundation of understanding of earlier research and the struggles implementing an ERP system. The study was composed from the five most important critical success factors as a framework. To identify the activities in an early phase, interviews with people from different layers in an implementation organization were conducted. From the interviews, several survey questions were designed to rank the activities. The result of the interviews shows several activities performed in an early phase in an ERP implementation. The result from the survey shows that many of the identified activities from the interviews are important since several of the respondents consider these critical. Some of the most important activities in an early phase of an ERP implementation are:

• Conducting workshops to explain the changes to come when implementing a new ERP system.

• Make sure the people working in the project are able to work and focus on the project fulltime in the phase where their role is critical for the implementation.

• Involve the key-users in an early phase of the implementation. • Communicate the vision to all the employees in the organization. • Have a local super-user that is available to support and help.

This research provides a less general framework for what activities are important to perform in an early phase of an ERP implementation to achieve the critical success factors. The study can help companies facing an ERP implementation to do the right things to succeed with the implementation.

Keywords: Enterprise resource planning, implementation, critical success factors, Change management, ERP-system.


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Acknowledgement

We would like to express the deepest appreciation to our supervisor Johan Stenmark at Valmet for his amazing commitment and support. We also would like to thank all the respondents at Valmet for taking the time for our interviews as well as our survey. A big thank you to Marvin Morrings for feedback on the language structure in the study. Finally, we would like to thank our supervisor, Ha kan Sundberg for his constructive criticism and support.


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Explanation of terms. ERP – Enterprise Resource Planning, is a process that enable to manage and integrate different important parts of a business, for example integrate planning, marketing, human resources and finance.

CSF - Critical Success Factors, important factors that must go well in order to achieve a successful implementation of an ERP system.

CFF - Critical Failure Factors, factors that can be critical and lead to an unsuccessful ERP implementation.


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Index

Abstract ....................................................................................................................... ii

Acknowledgement ................................................................................................. iii

Explanation of terms. ............................................................................................. iv

1. Introduction. .......................................................................................... 1

1.1 Background and problem statements ............................................... 1

1.2 Overall purpose .......................................................................................... 2

1.2.1 Objectives ............................................................................................... 2

1.3 Demarcation ................................................................................................ 2

1.4 Overview ....................................................................................................... 3

1.5 Authors contribution ............................................................................... 3

2. Theory ...................................................................................................... 4

2.1 Change management .............................................................................................. 4

2.2 Enterprise Resource Planning system ............................................................. 7

2.3 The motivation for a new ERP system ............................................................. 9

2.4 Implementation phases ......................................................................................... 9

2.5 The preparatory work for an ERP implementation ................................. 10

2.6 Challenges in implementing an ERP system .............................................. 11

2.7 The definition of a successful implementation of an ERP system ..... 13

2.8 Critical success factors ........................................................................................ 14

2.8.1 Top management support ......................................................................... 14

2.8.2 Implementation team ................................................................................. 15

2.8.3 Project management ................................................................................... 16

2.8.4 Business plan and vision ........................................................................... 18

2.8.5 Architecture choices, technical implementation, technological infrastructure ........................................................................................................... 18

2.9 Previous research ................................................................................................. 20

3. Methodology........................................................................................ 22

3.1 Process of the study ............................................................................................. 22

3.2 Qualitative and quantitative methods .......................................................... 23

3.3 Literature search ................................................................................................... 23

3.4 Case study ................................................................................................................ 23

3.5 Interviews ................................................................................................................ 24

3.5.1 Selection of respondents ........................................................................... 24

3.5.2 Interview approach ..................................................................................... 25

3.5.3 Compilation of interviews ........................................................................ 26

3.6 Web-based survey ................................................................................................ 26

3.6.1 Survey approach ........................................................................................... 26

3.6.2 Compilation of data from survey ............................................................ 27

3.7 Validity and reliability ......................................................................................... 27

3.8 Quality assessment of thesis ............................................................................ 28


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3.9 Ethical considerations ......................................................................................... 29

3.10 The significance of the demarcation ........................................................... 30

4. Results .................................................................................................................. 31

4.1 Interviews ................................................................................................................ 31






4.2 Web-based survey ................................................................................................ 38






5 Analysis ................................................................................................................. 44

5.1 Interviews ................................................................................................................ 44

5.2 Survey analysis ...................................................................................................... 45

5.3 Method analysis ..................................................................................................... 48

5.4 Validity and reliability ......................................................................................... 49

5.5 Analysis of the result ........................................................................................... 50

6. Conclusions ......................................................................................................... 51

6.1 Which activities are performed in the early phase of an ERP implementation? .......................................................................................................... 51

6.2 Which of these activities are most important to focus on in the early phase of an ERP implementation? ......................................................................... 51

6.3 Ethical and societal considerations ............................................................... 52

6.4 Future research ..................................................................................................... 53

Appendix A: Interview questions .................................................................... 60

Appendix B: Survey questions .......................................................................... 63

Appendix C: Results from survey ..................................................................... 67

Appendix D: The different ranking for End-users and the implementation organization. .......................................................................... 70


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1. Introduction.

1.1 Background and problem statements Evolution and revolution are over time needed in all types of organizations and every day organizations change. In order for the organizations to stay relevant, changes are required. (Weer Burke 2018, Beerel 2009). Enterprise Resource Planning (ERP) is an extensive information system that supports companies by managing and integrating all the business processes. When implementing an ERP system, the organization is driven to change. (Modi & Mabert, 2011, Kwahk, & Lee, 2008). Enterprise Resource planning is defined as “Overall standardized business system”. Standardized systems are not always customer specific. This means that most of the companies need to adjust to the system rather than the system adjusting to the business. A common mistake for change in an organization including IT-systems is focusing too much on the technology (Magnusson and Olsson, 2008). To achieve a successful ERP implementation many studies undertaken to the conclusion that critical success factors are valuable for the implementation of a new system. Despite the fact that the subject is well-studied, the introduction of ERP systems often leads to big challenges and complications for companies when they try to implement a new ERP system. ERP implementation is usually divided into different phases. Kronbichler et al. (2009) have generated a model consisting of the phases: Planning (Pre-implementation), implementation and stabilization/ improvement post-implementation. The first part of the article is a literature search where critical success factors from different scientific papers are collected. Each critical success factor was then connected to the corresponding phases in the ERP implementation (Kronbichler et al. 2009). The existing research of ERP implementation and critical success factors often cover all phases of the implementation process. Many of these studies are general and usually focus on the perspective of the high levels and only considers and answer the question of how an implementation should be performed. Earlier studies rarely illustrate what must be done to fulfill the critical success factors. Dividing the critical success factors into activities makes it easier to know which approach to use for a successful implementation (Finney et al. 2007, Ahmad et al. 2012, Saravanan 2014, Kronbichler et al 2009).

This chapter is the foundation of the study. 1.1 describes the background to the work and justifies the chosen problem area. In 1.2 the problem statement and purpose are described. In 1.3, the delimitations of the study are explained.


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Why do so many of the ERP implementations fail despite the fact that the subject is well-studied? Bajwa (2004) highlights that the preparation for big projects has significant effect on the project’s efficiency. Therefore, the authors states: that it is absolutely critical to focus on the preparatory work in early phases to achieve a successful ERP implementation (Bajwa 2004). Based on this argument and the lack of research when it comes to the important activities that are needed to achieve the critical success factors, the idea for this study was established. To ultimately increase knowledge and contribute to this research area, this study is focusing on the preparational work and the important activities for critical success factors in the early phase of an ERP implementation.

1.2 Overall purpose

1.2.1 Objectives

The objective of this study is to contribute new knowledge in a well-studied area of research by focusing on preparatory work in the early phase of an ERP implementation.

Purpose: The aim of this study is to evaluate and give recommendations for important activities in the early phase of an ERP implementation.

Problem statement:

To fulfill the purpose, the following research questions will be answered:

Which activities are performed in the early phase of an ERP implementation?

Which of these activities are most important to focus on in the early phase of an ERP implementation?

1.3 Demarcation

The study will be limited to the five most important Critical success factors and not all. The study will not affect how the business system affects suppliers and customers or how well it meets the user's requirements. It will also not judge how well the implementation was performed or how successful the end result was. Assessment of how well the different activities have been carried out is also something this study will not consider.


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1.4 Overview

Figure 1, Overview of the study.

Chapter Description

Chapter 2 Theory

The theory chapter encompasses the theories relevant to the work and clarifies to whom the theories will contribute to. The theory chapter also clarifies current and recent theories that illustrate the current status and focus of the area. It ends with a review of previous research.

Chapter 3 Methodology

In chapter 3 the implementation is reproduced to be able to carry out the same study again. The reliability and validity of the work is discussed as well as the ethical considerations.

Chapter 4 Results

In chapter 4 the problem statement is answered, and the method chosen is applied.

Chapter 5 Analysis

This chapter analyzes the results from the study. The result is interpreted through the data collected from interviews and surveys conducted.

Chapter 6 Conclusions

In chapter 6, the conclusions are drawn from the analysis. The reliability, validity and ethical aspects of the conclusion are examined. The chapter concludes by describing the need for further research work in the future.

Table 1, Overview of all the chapters.

1.5 Authors contribution

Both authors have contributed equally to this study.


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2. Theory

2.1 Change management

All organizations have one common goal, namely, to remain relevant. Regardless of the organizations mission or purpose, the goal is still primary for all businesses. In order to remain relevant, it is required of the organization to be innovative, adaptive, and creative (Beerel, 2009). Changes are often required in a business organization to improve performance, address problems or seize opportunities. Roles within a company, organizational structures and different types of technology are included in the change process (Tang, 2019)

A briefly explanation of change management is a conceptual guide how leaders prepare and support an organization in order to perform a successful change. One definition of change management is “a structured approach to ensure the changes are thoroughly and smoothly implemented for achieving lasting benefits of change” (Tang, 2019). Another definition for change management is “The process, tools and techniques to manage the people-side of change to achieve a required business outcome” (Voehl et al. 2016).

Voehl et al. (2016) describes that there are three key disciplines behind change management, project management, change management and daily work management. The role of the project management is to focus on tasks related to achieving the requirements of the project. Change management focus on the people that will be affected of the change. Daily management aims to keep the organization on track. The approach of daily management is that every day, the employees take time to evaluate the progress towards

The theory section intends to provide the reader with an understanding of the theoretical frame of reference that later is used to analyze the collected data. The first chapters creates an overview of what an ERP system is and the challenges in implementing it. The chapter begins with 2.1, which is an overview of change management. 2.2, Enterprise resource planning which is a brief introduction of what an ERP system is and continues onto 2.3, The motivation for an ERP system which explain the reasons for implementing an ERP-system. Chapter 2.4-2.5 goes through the different phases in an implementation and focuses on the first phases. 2.6 Challenges implementing an ERP system is an important theory to understand why studies in this area is needed. Chapter 2.7 is Definition of a successful implementation and gives understanding why the critical success factors may differ depending on the perspective. Chapter 2.8 is Critical Success Factors and is vital for the whole study and the most common critical success factors is described. The section ends in previous researchers in the area to investigate what has been researched about before.


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meeting the improvement targets and compare to the overall progress of the organization.

When a business is dissatisfied with the present strategies a change is the result. Poor performance and failure for the organization to meet goals are some examples when the present strategy in an organization is lacking. As a leader you have to develop strategies for the change.

There are several types of change management models for example Kotter's 8 step model, ADKAR model, Lewin’s three stages change model and Jick’s 10 step change model. All the models consist of different important steps in order to implementing a change (Tang, 2019).

The change process consists of several different phases that requires a lot of time. If skipping steps in the process just to get the illusion of speed the result will never be satisfying. Kotter (2012) describes eight steps to transforming an organization. Briefly the idea behind the eight steps of transformation is that many managers are consider transformation as an event rather than a process. Shortcuts and skipping stages as an attempt to accelerate the process often leads to hard-won gains, loss of momentum and devastation of the entire transformation effort. Being aware of pitfalls in each stage the chances to get a successful transformation increases (Kotter, 2012).

Stage Actions Pitfalls

Establish a sense of urgency • Examine market and

competitive realties

for potential crises

and untapped

opportunities

• Convince at least 75%

of your managers that

the status quo is more

dangerous than

unknown

• Underestimating the

difficulty of driving

people from their

comfort zones

• Becoming paralyzed

by risks

Form a powerful guiding coalition

• Assemble a group

with shared

commitment and

enough power to lead

the change effort.

• Encourage them to

work as a team

outside the normal

hierarchy

• No prior experience

in teamwork at the

top

• Relegating team

leadership to an HR,

quality, or strategic-

planning executive

rather than a senior

line manager


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Create a vision • Create a vision to

direct the change

effort.

• Develop strategies for

realizing that vision.

• Presenting a vision

that’s too

complicated or

vague to be

communicated in

five minutes Communicate the vision

• Use every vehicle

possible to

communicate the new

vision and strategies

for achieving it.

• Teach new behaviors

by the example of the

guiding coalition.

• Under-

communicating the

vision

• Behaving in ways

antithetical to the

vision

Empower others to act on the vision

• Remove or alter

systems or structures

undermining the

vision.

• Encourage risk taking

and nontraditional

ideas, activities and

actions.

• Failing to remove

powerful individuals

who resist the

change effort

Plan for and create short-term wins

• Define and engineer

visible performance

improvements.

• Recognize and reward

employees

contributing to those

improvements.

• Leaving short-term

successes up to

change

• Failing to score

successes early

enough (12-24

month into the

change effort) Consolidate improvements and produce more change

• Use increased

credibility from early

wins to change

systems, structures,

and policies

undermining the

vision.

• Hire, promote, and

develop employees

who can implement

the vision.

• Reinvigorate the

change process with

new projects and

change agents.

• Declaring victory

too soon- with the

first performance

improvement.

• Allowing resistors to

convince “troops”

that the war has

been won


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Institutionalize new approaches

• Articulate

connections between

new behaviors and

corporate success.

• Create leadership

development and

succession plans

consistent with the

new approach.

• Not creating new

social norms and

shared values

consistent with

changes.

• Promoting people

into leadership

positions who do

not personify the

new approach.

Table 2, “Kotter's eight step to transforming an organization, stages, actions and pitfalls”

2.2 Enterprise Resource Planning system

In every big company large amount of data are collected, generated, and stored. In companies it is common to store data in multiple repositories. This means that the information is spread across many different computer systems. Having many different computer systems can lead to enormous cost for businesses. Implementing an enterprise resource planning system can solve this problem (Davenport, 1998).

Enterprise resource planning systems have been installed in thousands of companies worldwide since the mid-1990s. ERP systems are an interactive system designed to integrate processes across functional areas (Mabert et al 2003). Magnusson and Olsson (2008) define an ERP system as a “Standardized enterprise-wide system support” . Standardized means that the business needs to be adapted to the system and enterprise-wide means that it provides an overview and control of the entire business data.

The purpose of the system is to integrate the various units of the business to streamline the operations (Magnusson and Olsson 2008). Along the whole value chain ERP integrates business functions data and processes. Because of this, business process complexity can be reduced (Caserio, Trucco 2018). Expressed in another way the aim of an ERP system is to improve the business by use of IT more efficiently. There are two underpinning activities when it comes to the expectations of an ERP system, the first is to improve the quality of decision making and the second is to make the processes more efficient. The access of information is critical for the quality of making decision and therefore it is closely connected to the information system. The set of data should only exist once in an ERP system in order to manage information efficiently (Magnusson and Olsson 2008).

The base of an ERP system is a centralized database were all instances of the system are connected because of this construction all users are applying the


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same data structure and definitions. The solution for the system is also module based which means that the functionality is packaged within the modules (Magnusson and Olsson 2008).

The core of the enterprise system is a single database. This database is comprehensive and collects data and transmit it to the modular applications (Davenport, 1998).

Having the system divided into modules gives the company good potential to be able to expand its business. The modules can be added and removed in order to customize the requested functionality (Magnusson and Olsson, 2008).

Figure 2, Model of an ERP system (Davenport 1998)


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2.3 The motivation for a new ERP system

There are many advantages to invest in an ERP system, but with the major risks that implementation entails, large benefits are needed that outweigh the risks. Even though the main motivation for implementing an ERP system differs between organizations, the main factors motivating this change is according to Ross and Vitale (1999):

1. Need for a common platform

2. Process improvement

3. Data visibility

4.Operating cost reductions

5. Increased customer responsiveness

6. Improved strategic decision making.

2.4 Implementation phases

The processes in implementation are slightly different for different implementations. However, the overall phases are very similar for most implementations. Tsai et al (2012) define the different phases as:

Project preparation phase: In this phase the project team follows out the first planning and preparations. This is the basis for the entire project and therefore it is an important phase and requires time and thought. In this phase, the project team will be established to create the overall planning, set goals, timelines, strategies and prepare organizations.

Business blueprint phase: In this phase the project group's responsibility is to identify goals and business requirements for future phases in the implementation. All processes in the organization needs to be reviewed and documented. A reconciliation is done at the end of this phase to make sure that the extent of the project is agreed upon.

Realization phase: In this phase the goal is to implement all the business requirements. First a baseline configuration is established, a properly group of basic settings placed on a system before it is approved for production. The baseline configuration is tested to see if the base functionality is working. Later, all functions are tested to make sure that all the functions from the business documentation is intercepted.


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Final preparation phase: In this phase the final preparations are completed before the system goes live. It is important in this phase to also make sure that the production system environment is ready, ending user training, carrying out the cut-over plan, etc. During this phase, all critical open issues should be solved.

Go live and support phase: In the final phase the goal is to put the new system to work. The newly implemented system goes live for daily business operations. The system is used by the employees in their daily work. The problems perceived by the users are all documented to be solved later.

Figure 3, Visual representation of the different phases in an implementation of an ERP system.

2.5 The preparatory work for an ERP implementation

For the organization to provide a clear vision and plan during the implementation is essential for the outcome. Many studies have shown that the results you get from the ERP implementation is directly linked to the preparatory work (Markus,1996). During the first phases of the implementation the superiors have the possibility to decide the direction of the implementation. In the preparatory work many decisions regarding the ERP system´s requirements and extent is made (Verville et al. 2007). The purpose of the system should be based on an actual business problem and help to achieve future business visions (Holland et al. 1999). The top management are central in the preparatory work. Their way of leading and communicating the implementation is important for it to go well. A clear strategy that is possible to fulfill within the budget and time, set the framework for the entire project (Huq et al. 2006).

The preparation for the implementation includes many different aspects regarding both organizational and technical aspects. The preparatory work sets the foundation for the implementation and if the preparations fails the whole project is also likely to fail (Kwon et al. 2003).

Verville et al. (2007) divides the planning in three different dimensions. The dimensions are organizational (strategic) planning, ERP acquisition planning and ERP implementation planning. The organizational (strategic) planning is defined as an intentional process involving a logical, sequential,


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analytic, and deliberate set of procedures”. The goal is to establish goals, mission, program, and allocation of resources. The strategic planning is both a maneuvering and learning process and the process is affected by the organizational environment. The acquisition planning contains cost, technical, management, schedule and other considerations affecting the implementation. The implementation plan is the overall plan for how the implementation is going to be performed. All three dimensions are vital for a successful preparatory work.

Figure 4, Visualization of the different planning levels. Verville et al. (2007)

2.6 Challenges in implementing an ERP system

There are many challenges in implementing an ERP system and therefore, much research has been conducted in this area (Finney et al. 2007, Ahmad et al. 2012, Saravanan 2014, Kronbichler et al 2009). Since the whole organization is affected by the implementation such as people, culture, and process the company faces a lot of challenges. The implementation requires a large number of resources such as time and capital and the organization need to be able to provide the resources necessary during a long period of time. The implementation process often takes two to five years depending on its size and its customs (Momoh et al. 2010). The implementation of an ERP system can be difficult, time-consuming, and expensive especially if the implementation does not go as planned.


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To use the system fully the employees, need the right education to avoid mistakes and inefficiency (Babaei, 2015).

Several ERP implementations fails to achieve the goals for the organization, mostly because of the complexity and the big changes the system creates in the organization. The biggest challenges are usually organizational and not technological related. Many projects fail due to resistance to change, business processes, and organizational culture (Vayyavur, 2015).

Wagle (1998) states: “two common pitfalls during implementation, lack of clear business unit responsibility and lack of clear accountability to business units.” He also discusses five steps to avoid the two pitfalls. The first step is to appoint a business unit manager and not an IT department manager to handle the launch to be able to secure support. The second step is to have specific control points for financing to contain a tight control of the cost during the project. The third step is to build a method for tracking metrics to monitor the process of the project. The fourth step is to develop a contingency plan to reduce the risk of becoming dependent on a single individual. The last step is to ensure that the business units project planning has integrated the rollout as the cost will eventually affect the business unit, and they will have to change their processes.

Huang et al (2004) states that the biggest risks that cause implementation failures are:

• Lack of management commitment

• Insufficient training with users

• Ineffective communication with users

• Inadequate support from the executive

• Lack of effective project management methodology

• Conflicts between department users

• Attempt to build bridges to legacy application

• Composition of the implementing project team members

• Failure to redesign business processes

• Misunderstanding of change requirements


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2.7 The definition of a successful implementation of an ERP system

There are many definitions of successful implementation. Ali and Miller (2017) states that: “when an organization can execute all business functions in a better and more efficient way the introduction is successful”. Markus (2000) believes that a definition of a successful introduction of an ERP system is different depending on the point of view. For the people implementing the system, a successful implementation is if the project is completed within the time schedule and budget. Instead, a person using the ERP appreciates a smooth implementation and a new system that helps to improve business tasks.

The view of a successful implementation can also be different from various perspectives. Markus (2000) defines the perspectives as economic, strategic, technological, financial, how smooth running the system is, the internal use and adopting of the system and the external view of the system from customers, suppliers, and investors. Markus (2000) also mentions measuring the success of the implementation in phases. Three distinct phases are also defined, the project phase, the shakedown phase, and the onward and upward phase. The project phase is the introduction process of the ERP system. In this phase, the success can be measured by cost relative to budget, project completion time relative to schedule and installed system functionality relative to project scope. The second phase is the shakedown phase. In this phase, the organization starts using the system in all departments. To measure success in this phase, the short-term changes in the organization’s business processes are evaluated and the effects on adopters, suppliers, and customers is evaluated. Also, the time until key performance is back at “normal” or as expected is also measured in this phase. The last phase is the onward and upward phase, this is when the system is implemented, and the company has captured the majority of benefits from the system and plans for the next steps. To measure success after implementation the three different dimensions are defined. Firstly, is how well the company has achieved the business results they planned to improve by the system, for example, reduced IT operating costs and lower inventory carrying costs. Then the ongoing improvements in the business process results after the expected results are achieved is also included and then finally the project implementation expectations are measured against actual success.

There are many difficulties in measuring the success of the business system. It is difficult to normalize the goals of individuals and the organization, which makes comparison complicated. Expectations and objectives are often overambitious and unrealistic. Therefore, it is often beneficial to use external measuring tools as a complement to set objectives (Markus 2000).


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In this study the definition of a successful implementation of an ERP system will be based on this chapter and include all the different perspectives.

2.8 Critical success factors

Several studies have examined critical success factors when introducing a business system (Finney et al. 2007, Ahmad et al. 2012, Saravanan 2014, Kronbichler et al 2009). These factors must go well in order to have a successful project and therefore requires extra time and thoughts. The factors are comprehensive and are defined in different ways depending on the perspective of the study. Critical success factors are meant to guide and help leaders to work on the essential elements or concepts. Since the implementation of an ERP system is an exceptionally large and comprehensive project that affects the entire organization, it is important to have a successful outcome (Finney 2007). Studies undertaken by Panorama Consulting (2017) shows that 26 percent of the respondents define the outcome of the implementation as a failure. Due to the difficulties in implementing a business system, several studies have been conducted to identify these critical success factors.

Kronbichler (2009) summarize what literature say about the CSF and conclude the most important. The most important CSF in an early phase is according to Kronbichler Top Management support, Team composition & Teamwork, Project Champion/Empowered decision makers, Business plan and vision, Project Management, Architecture choices, technical implementation, technological infrastructure, Business process reorganization, Deliverable dates/smaller scope, Partnership. Ahmad et al. (2012) examined 23 research articles out of 200 for the compilation of the critical success factors. The five most important factors are Top management commitment and support, Training and job redesign, BPR and software configuration, Project management, Balanced team and Communication plan. Saravanan (2014) examines 23 different articles that have examined critical success factors to compile the most important factors. The conclusion drawn are that most important are top management support, implementation team, project management, business plan and vision and Architecture choices, technical implementation, technological infrastructure (Saravanan, 2014). Below, the five critical success factors that have emerged frequently in the latest literature are described more.

2.8.1 Top management support

Top management support is about top management providing the necessary resources to successfully implement the business system. This applies to both financial and human resources (Boonstra, 2013). Top management support has according to Zhang et al (2002) two main aspects. The first one


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is providing the necessary leadership. The top management have an important play to steer the project in the right direction and been a participant in the implementation. To get everyone onboard the top management needs to create a good environment for change, settle disputes and provide clear signals to eliminate doubts. The second aspect is to provide the necessary resources. Without the critical resources needed for example, human resources, funds, and equipment the implementation will have low chances of succeeding. The top management should according to Umble et al (2003) provide strong commitment, leadership, and participation. To measure and investigate how the top management affect the success of a project Boonstra (2013) identified various top management support categories. The different dimensions he identified were:

Resources: Top management supports the implementation by providing material, financial and human resources.

Structural arrangements: The top management adapts the organization to be responsive to the new system and establishes a project structure during implementation.

Communication: Top management supports the implementation by communicating opportunities with the organization's change with enthusiasm.

Competence: Top management has sufficient knowledge and interest in the project. The knowledge should include understanding and consequences of the business system.

Power: The top management uses its power to promote the project by protecting the project team and resolving conflicts.

2.8.2 Implementation team

The process of selecting a team for an ERP implementation plays an important role and is crucial for the success rate of the project (Mahar, 2020). To get a successful implementation, the project team needs a good team composition and good teamwork. Since an implementation of a business system involves several different departments of a company, the implementation group must have knowledge in all relevant areas. The project members knowledge, skills, abilities, and experiences are directly linked to the success of an implementation (Nah et al. 2016).

The implementation of an ERP system consists of different phases and it is important to build separate teams consisting of experts for all the various phases. With this approach it is more likely to reach a successful


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implementation. Two team selection criteria have been analyzed and it turned out that this criteria can become critical failure factor in the release of an ERP system. The two team selection criteria stated by Mahar (2020) is “promoting the old staff as core team members for the ERP implementation

and appointing the staff on senior and critical posts on favoritism”. Mahar

describes that these two criteria are to create a “garbage-in garbage-out situation and sometimes this could result in a fall down for the project.

The project group should consist of both internal and external persons from different departments and levels in the company. External consultants must be brought in when ERP expertise is lacking internally. Implementation should be the group's highest priority and top management needs to allocate full time for the implementation (Bajwa, 2016).

To find qualifying expert consultants and champions of the ERP area is crucial for the whole ERP implementation project. In order to meet the challenges and also the related problems these experts should have exhaustive expertise and knowledge. Only one expert of the field should be selected to achieve a successful ERP implementation. This person should also lead the implementation team (Mahar, 2020).

Constant communication between the project team and top management enables quick decision making and prevents delays in implementation. It is also the implementation team that creates an overall schedule, assigns responsibility, determines deadlines, and ensures that all necessary resources are available (Umble et al, 2003).

2.8.3 Project management

A project is defined as, “A temporary endeavor undertaken to create a

unique product, service, or result ” . Unique and temporary is two characteristics for projects (Cobb, 2012). For all projects there are framework consisting of specific processes generating the artifacts of project management. For all projects, the basic workflow that follows is the same and consist of the initiating phase, planning phase, execution phase and closing phase (McBride, 2016).

These phases can also be illustrated in a lifecycle where each step is designated to help and guide both project managers with a lot of experience and also the managers beginners. Regardless of what tasks are included in the project, the key to success is illustrated in figure 1(Jost, 2015).


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Figure 5, Key success factors for project management (Jost ,2015)

Whether a project succeeds or fails can be partly subjective. A common understanding is required for a successful project, this is to reduce the subjectivity. Therefore, in the initiating phase it is necessary to define success criteria (Joslin, 2019).

Define a goal should always be the first step in the initiating phase. A well-defined goal is critical and absolutely necessary for a project to succeed. A common mistake in the beginning of a project is that people immediately would like to start with the implementation phase. This is common especially when people are facing a deadline. To not follow the first critical step in the process is a major reason for many projects failing (Jost, 2015).

After the goal has been clearly clarified it is important to define the project. In this step, the basic concept will be clarified so that the project team agrees on what the project comprises of. A clear project definition makes all team members work together in a shared understanding and environment before the work starts (Jost, 2015).

After defining the project, the planning can start. The planning consists of three components, strategy, tactics and logistics. Strategy is the game plan and the overall work procedure throughout the project. The implementation planning includes the components tactics and logistics. Tactics is about developing details about how the work should be done. It also includes


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sequences of what needs to be done, who will do it, and how long each step will take. To make sure the team has the materials and other supplies to carry out the work logistics is the main factor (Lewis, 2007).

To meet requirement of projects, the project management can be described as the application of qualification, tools, knowledge and techniques (Project Management Institute, 2000).

The project manager’s main task is to make sure that the work is finished on time, within the budget, with the right level of performance (Lewis, 2007).

There are multiple methods that a project manager can use to run a project. The choice of method depends on what type of project is being undertaken. Different methods can also be combined (Algeo, 2014).

2.8.4 Business plan and vision

Having a clear plan and vision for the implementation is fundamental for the project to be managed in the right direction. In large projects, there are often three competing goals that must be met, these are scope, time and cost (Saravanan, 2014).

Studies done by Panorama consulting (2017) show that 74 percent of implementations go over budget, 59 percent did not meet the schedule and 26 percent of companies failed. Therefore, it is incredibly important that there is a well-planned and clear plan for how these goals will be met.

The goals and visions must be communicated to the entire business to motivate the employees and making them understand why the implementation is needed (Bhatti, 2005). The project's goals and the benefits it entails must be clear and well understood by everyone in the business. The goals should not only be within the implementation, but also contribute to achieve business goals. There should also be measurable goals for employees to see that the project is moving forward (Curko et al. 2012).

2.8.5 Architecture choices, technical implementation, technological infrastructure

Selecting an ERP system is difficult due to the variation of different packets available on the market today. The choice of ERP system will shape the project regarding the budget, timeframes and goals. Therefore, the choice of ERP system is essential (Saravanan, 2014). The organization should select the system that matches best with the organizations needs and processes so that minimal adaption is needed. Adapting the organization to use the vendors code as much as possible has been associated with successful implementation, but this can mean that they must sacrifice functionality.


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Customization of the ERP system is often associated with extensive projects, longer implementation and higher costs. The customized system also cannot benefit from software updates and maintenance and the company may lose competitive advantages adjusting the business and decreasing their uniqueness. If the wrong system is selected the organization can have difficulties achieving their goals with the new ERP system and their future visions (Somers et al. 2001).

It is critical to have an overall architecture of the system before the implementation. The architecture must be clear and well-conceived to reduce risk of reconfiguration at a later phase. All functional departments should be included in the system as important insights can be gained from different people in different departments of the organization (Nah et al. 2016).

Having good management of inheritance systems is critical as these can be very complex and difficult to manage. Problems with legacy data such as converting data to the new system can lead to major delays. Before the data is converged to the new system, decisions must be made about which data to convert to the new system. It is important to understand which data the company wants to include in the new system and which they want to omit. Seeing that data convergence is usually difficult as data can come from different data sources in different formats, you do not want to converge more data than what is needed (Nah et al. 2016).

Careful testing is important for finding faults and development opportunities during the implementation process and not just at the final phase. The tests must cover all departments as well as current and future processes. Effective troubleshooting is crucial to finding errors within the system. It is also important to test the integration between the system and other systems to be able to encounter problems with suppliers or customers (Nah et al. 2016).

The use of the supplier's implementation methods and development tools often leads to reduced implementation time and reduced costs. It also gives the company more knowledge and help to avoid common pitfalls as the supplier usually has a lot of experience. Therefore, close work is recommended with the supplier and that their tools and methods be used as much as possible (Nah et al. 2016).

The integration between ERP systems is an important and common problem. Even though an ERP package is described as an integrating system it is difficult to get the system to work seamlessly with other systems. The problem arises as ERP system are not designed to tie up other autonomous


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systems. The result of failed integration is usually a result of problems between departments and stakeholders (Pan et al. 2001).

2.9 Previous research

Several studies have examined ERP implementation. The research area has been studied from different perspectives (Parr and Shanks 2000, Umble et al 2003, Huang et al. 2004). Some examples of different approaches for studies are Critical Success Factors and critical failure factors (CFFs), implementation strategies and approaches, knowledge management, culture, organizational ERP fit, development of models and frameworks to facilitate ERP, and the post-implementation organizational performance of ERP (Jiwat Ram et al. 2013).

Most of the studies investigates the Critical Success Factors for implementation. The area has been investigated for many years but is still a current issue (Umble et al 2003, Huang et al. 2004). This is because of the large number of implementations that fails (Panorama, 2017). The articles state a conceptual framework to guide the organization to get a successful implementation. The Critical success factors have been examined with different methods and perspectives. Creating a critical success factor framework from secondary research and case study of an ERP implementation is common among articles (Parr and Shanks 2000, Umble et al 2003, Huang et al. 2004). There are also several articles that compiles what different studies say is the critical success factors to get an overview of the area (Saravanan 2014, Nah 2016). Using a survey is also a common method to get a certain perspective of the CSF (Nah, 2003). Kim et al (2005) examined the critical success factors from the high-level IT managers perspective and Wu and Wang (2006) examined it from the ultimate user’s perspective. The factors are very comprehensive and general and can be hard to achieve.

There are also several studies investigating the biggest reasons ERP implementations fail (Amid 2012, Wong 2015). The conclusions of the studies are often linked to lack of the critical success factors.

Somers and Nelson (2001) considers that CSF are more accurate if their importance in different CSF are stated. Some of the previous research states the importance of the planning and the preparatory work. Kwon et al (2003) states that planning is one of the most important processes and the area is lacking research for ERP system implementation. Verville (2007) also states that planning activities play an essential role in the beginning of an ERP implementation. He also states that even though several studies have been conducted the past several years in the implementation of ERP systems there have been limited research pertaining to the preparatory work.


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Olivier Françoise et al examines essential activities for managing enterprise resource planning implementation projects. This study is a literature search based on critical success factors where activities are identified. The identified activities were categorized under headlines, for example Project teamwork and composition, Organizational culture and change management and Effective communication (Françoise et al. 2009).

Previous research also suggests that pre- project activities have a significant influence for IT-projects. The preparations before an ERP project is described as absolutely critical for a successful implementation (Deepinder et al. 2004).

Most of the previous studies are often general and explain the importance of the critical success factors but few includes a concrete description of what to do exactly in practice (Parr and Shanks 2000, Umble et al 2003, Huang et al. 2004). Breaking down the critical success factors into activities makes it possible to do a better analysis and receive a more concrete description. As mentioned before, activities have also been analyzed in previous research, but no study has suggested a rating of the most important activities to prioritize.

Since many research are general and several promoting the first phase of the ERP implementation as important, the author of this thesis see a need to fill this gap. The previous research did not cover important activities in the first phase of an ERP implementation. Based on previous research the authors saw a need to contribute with concrete explanation of activities with purpose to get a clearer prioritized action plan in the early phases of an ERP implementation. This to fill the information gap in the ERP research area.


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3. Methodology

3.1 Process of the study

First a literature search was conducted to create a theoretical foundation for the study. Then a case study at Valmet was conducted. To answer the first problem statement interviews were undertaken. The second problem statement was answered by a web-based survey which were designed using the interview responses.

Figure 6 shows the method used to answer the two problem statements.

Figure 6, Description of the work process.

In chapter 3 the methodology used in the study is presented. In 3.1-3.4 the selected methods are discussed and motivated. The last part of the chapter 3.5 reliability and validity of the work as well as the ethical considerations is discussed.


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3.2 Qualitative and quantitative methods The difference between a qualitative and a quantitative study is the different techniques behind the collection of data to receive a result. In qualitative method the collected data describes rather than measures. Common ways to collect information with qualitative method is case studies, interviews, surveys, and observations. The qualitative method aims to give an overall description of the researched area (Gunnarsson, 2002). The quantitative method is when the researcher systematically collects empiric and quantifiable data. The data received from a quantitative method is expressed in numbers which can statistically be analyzed. In order to achieve a comprehensive illumination of a researched area, it is common to combine the qualitative and quantitative methods (Gunnarsson, 2002). This study has used a mixed method which is a combination of a quantitative and a qualitative method. The reason why choosing a mixed method is to strengthen the study through the strengths of each method.

3.3 Literature search

The first section of this thesis was a literature search. The purpose of the literature search was to get background information in this area of research. To find articles and other relevant literature for this thesis, google scholar, Web of science, iEEE and primo was used. Keywords for the literature search were, ERP implementation, critical success factors and ERP challenges.

All articles that have been considered for this study were peer reviewed which means that before release the articles have been examined by experts within the specific research area. This ensures a high standard of the science published. Since the articles and other literature have high standard and are carefully considered, the validity of the study was strengthened.

3.4 Case study

Valmet is a Finnish owned global company organized around four business lines, Services, Pulp and Energy, Paper and Automation. The company is a leading developer and supplier of technologies, automation and services for the pulp, paper and energy industries. More than 13 000 employees work for the company and are located all over the world.


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In 2016 Valmet started a big renewal Enterprise resource planning system project. This project is global and involves the whole corporation. In late 2017 the ERP implementation first started in Finland in the service business line. Today Valmet has continued the implementation of ERP system in Sweden. Due to restrictions in system functionality Sweden Services was split in two parts, Wave 1 and Wave 2. The first implementation in Sweden is thus Wave 1, a significantly smaller roll-out, but still including three locations and involving 15 persons full time with the ERP implementation.

Before the global project started, Valmet had different enterprise systems for different office locations. This was one of the reasons for the company to change the ERP system in order to get a more transparent corporation and a common platform. A project like this is a huge challenge for companies. One challenge for Valmet is to integrate and convert information from the previous system into the new. An increased number of employees will be using the new system and it is to expect that several job routines are going to change.

This thesis is based on the first wave of the implementation and therefore it will only include the first part of Valmet's ERP implementation in Sweden.

3.5 Interviews

The objective of the interviews was to answer the first research question,

“Which activities performs in early phase of an ERP implementation?”. In order to delimit this study five high ranked critical success factors from previous research have been chosen. The chosen critical success factors were: top management support, implementation team, project management, business plan and vision and Architecture choices (technical implementation, technological infrastructure).

The design of the interview questions, see Appendix A, was based on the theoretical frame in chapter 2.4 implementations phases, 2.5 the preparatory work for an ERP implementation and 2.8 critical success factors. This approach was chosen to construct relevant questions for critical success factors in an early phase of an ERP implementation.

3.5.1 Selection of respondents

For the interviews, people with different roles within the company and the implementation group were selected. Since the success factors includes both the top management support as well as the implementation group it was necessary to make the interviews with people represented from different sections. In order to be able to cover activities in all the chosen critical


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success factors. The roles of the respondents were Vice president ERP implementation project, Business Transformation Owner for Service Business line, Local Key user (data management), Local implementation owner, Manager Master Data management, Local project management and Local Implementation Owner. In consultation with the advisor from Valmet, who also have understanding for this study, these respondents were considered to be most appropriate to interview in order to respond the interview questions.

The purpose of the interviews were to be able to identify activities and therefore it was not considered necessary to interview too many people. It was rather important to interview a smaller and well-selected group of people.

3.5.2 Interview approach

A semi structured interview technique was chosen to enable capturing detailed information from the interviewees. The reason why interviews were chosen was to get broader answers regarding the various activities from the peoples in charge of them. The questions were prepared before the interviews but could be adjusted depending on how the interviewees responded to the questions asked. This approach was considered important so the interviewers could ask follow-up question and get more detailed explanations.

A. Bryman (2007) has come up with an interview guide to succeed with qualitative interviews. Among other things this guide contains advises both for the preparatory work before the interviews and also practical advises that is important to think about prior. For example, in order to answer the problem statement Bryman, propose that the interviewer have these questions in mind all the time when formulating the interview questions. Bryman also highlights the importance of avoiding leading questions and making the questions to specific. This guide has been adapted when working with the interview questions for this thesis.

To get better answers from the interviewees the interview questions were sent by email a few days before the meeting. Since the interviewees are located in different cities and countries, all the communication was via Microsoft Teams. The interviews were recorded by telephone. Both authors were recording and documenting during the interview. The reason why both the interviewers were recording was to have a backup if one of the recordings was bad or destroyed. Nine interviews were conducted and enable a broad scope to identify the activities. The interviews took about 45 minutes and the interview questions varied depending on the respondent's role in the implementation see Appendix A.


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3.5.3 Compilation of interviews

The interviews were not transcribed because of the scope of the work, only a summary of the interview was made. After each interview was compiled it was sent to the interviewee for them to take the opportunity to review their answers and to approve of the summary compiled of the interview. After the summary of interview was approved, the answers in the interview where studied to identify the various activities mentioned in the interviews. The different activities that were identified in the interviews were categorized in groups depending on which critical success factor it added value to. After all the activities were categorized the survey was designed and based on the identified activities.

3.6 Web-based survey

The objective of the survey was to answer the second research question,

Which of these activities are most important to focus on in the early phase of an ERP implementation?

The questions in the survey were based on the identified activities, see Appendix B. The idea of the survey was to get quantifiable data in order to prioritize the identified activities. The reason choosing a survey was that several people could be reached from different parts of the implementation organization in a short period of time. Reaching many people in different departments in the company makes the evaluation of the criteria to a greater foundation and with several different perspectives. This will reduce the risk of subjectivity and errors in values.

Survey as a method could results in some disadvantages since it is critical to receive high response frequency. Ejlertsson (2019) describes the decreasing participation of surveys. Today it is difficult to reach a response frequency of 70% and many surveys does not even reach 50%. Ejlertsson implies the importance of being aware of the lowest limit where the received information from surveys is not useful.

3.6.1 Survey approach

The survey was sent to 125 persons representing people that have been involved in the implementation project or are end users. The survey was available for 5 days and a reminder was also sent to increase participation in the survey. Some of the questions required experience and knowledge in different areas and was therefore only asked to the people that were well involved in that specific area. This was done in order to get as truthful answers as possible, and no one who was not involved were able to answer. There were also more general questions so all respondents, including end


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users could respond. The questions asked in the survey are designed as a scale where the respondents will grade a statement. The scale was between 1-4 where 1 corresponds not so important and 4 is critical. To have the scale variating between the numbers 1-4, forcing the respondent to make a statement and removes a neutral alternative. Some questions in the survey gave the respondent a chance to rank different alternatives. These types of questions were for example used to evaluate different qualities or ways to communicate.

By doing the survey like this, the important activities could be distinguished from the less important. When analyzing the responses, a final list of important activities was developed.

3.6.2 Compilation of data from survey

Google forms were the tool used to create the web-based survey. The program summarizes the collected data and visualize the result in diagrams. In order give an appropriate presentation for this thesis, an average for the data were calculated and then compiled in a new joint diagram in excel. Since the aim of the survey was to examine which of the identified activities that are most important to focus on in the early phase of an ERP implementation, the result was presented in joint diagrams for each critical success factor to easier get a good overview.

3.7 Validity and reliability

To receive a generalizable result from a study the importance of validity and reliability is essential. Validity and reliability aim to verify how good the measurements in the research fulfills the intended measure. Depending on the approach of the research the concept of validity and reliability can vary and be applied in different ways (Gunnarsson,2002).

In general, validity aims to verify that the measure instrument is measuring what is intended. The concept is also about measuring what is relevant in a special context and using the right tools at the right time. Reliability in this context is related to the performance, accuracy of the measurements and the carefully consideration when processing information (Magne Holme, 1997).

Validity and reliability in a qualitative study is considered throughout the research which means that both data collection and subsequent analysis are affected of these concepts. When using a qualitative method, it is important to present the selection of respondents and the analysis process meticulously. It is also important to describe the approach for data collection in detail (Gunnarsson,2002).


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To enhance confidence in the findings for a study Bryman (2004) describes triangulation as an approach to investigate a research question. The idea of triangulation is to have more than one approach to do the investigation. There are different types of triangulation, data triangulation, investigator triangulation, theoretical triangulation and methodological triangulation. In this thesis a methodological triangulation approach is used which means that more than one method is conducted to gather data.

A qualitative study includes both people and equipment which sets several requirements in order to strengthen reliability. The quality of equipment is of vital importance. If the equipment does not work the quality of data is jeopardized. Another aspect of reliability in a qualitative study is the quality of the researchers. The authors ability to perform and analyze interviews/observations is critical for the final results. It is also important to present the guiding supervisor of the study and their qualifications (Gunnarsson, 2002).

3.8 Quality assessment of thesis

This thesis is a qualitative study and therefore the generalizability is for the reader to evaluate. In order for the reader to evaluate the authors have been specific and transparent in the description of the procedure.

In this study the challenge was to ask the right questions and fulfill the purpose of the interviews. It was partly difficult to formulate suitable questions for some of the critical success factors. The questions were reviewed by a supervisor familiar with the study to ensure the questions were relevant for the context.

Since all the interviews were via Teams the ability to observe the respondents were limited. All interviews were recorded and summarized. The summary of the interviews was sent to each respondent who then had a chance to correct or change their answers. Some of the respondents gave feedback of the summary and proposed changes. By giving the respondents a chance to correct or update the summary, the quality of the summarized interviews was secured. To have the right information is critical for the study and for the following work when designing the questions for the survey.

Survey as a method is a way to get a high-level estimation of people's opinions.

In order not to miss important activities, the biggest challenges for the project have been identified in the interviews. To identify important activities which has not been completed in the case study the interview


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respondents’ own opinions and chapter 2.6 have been taking into consideration.

A methodological triangulation was performed to strengthen the validity and reliability of this study.

3.9 Ethical considerations

All European Academies, ALLEA (2018) have developed a document pertaining to good manners in science and research. The main principles of this document are:

Reliability: which means that the quality of research is reflected in design, method, analysis, and utilization of resources.

Honesty: This means that the researcher should be presenting the procedure fairly, transparently, and perfectly in an objective manner.

Respect: This corresponds that colleagues, research participants, society, ecosystems, cultural heritage, and the environment should be treated with respect.

Responsibility: The authors have a responsibility for the research within the whole process from idea to publication and further consequences.

These principles have been taken into consideration within the whole developing process of this thesis. The collected data from interviews and the survey have been handled anonymously. The anonymity for the interviewees was considered necessary to ensure the interviewee was answering as truthfully as possible. Before each interview, the interviewees were informed of the purpose of the study and their right to cancel the interview whenever they want to.


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3.10 The significance of the demarcation

Since implementation of a business system is a large and extensive area, delimitations are needed to obtain a tangible area. Limiting the study to five critical success factors can cause the study to miss important activities to perform at an early stage. This demarcation was made to reduce the scope. In order to identify all activities, theory chapters 2.4 and 2.5 will support the CSF when creating the interview questions to include all aspects of the early phase. Since the study does not assess how well the various activities have been carried out, the weight in the survey may be affected. It will also not judge how well the implementation was performed or how successful the end result was. That can affect how well the choice of case study is when finding important activities.


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4. Results

4.1 Interviews

Nine interviews were conducted with people from different layers within the implementation organization. Each interview was compiled using a questionnaire, see Appendix A. The first problem statement can be answered when the method stage: “Activities are identified from the interviews” are completed, see figure 7.

Figure 7 (Part of figure 6) The stage where the first problem statement can be answered.

The result from the theory, interviews and the corresponding identified activities are presented below within each of the five critical success factors, see table 3-7.

4.1.1 Top management support Extract from the interviews Identified activities “In the beginning, 200 key system users within the company were selected globally for finding facts of how the system was used at that time and what would be beneficial to change.”

“In the beginning people from different countries were gathered

and went through the core processes and the target map the curve

and the way to operate and look at the possibilities of

harmonization and the material was compiled.”

“Global fact finding where a team was announced to visit the

different countries with a predefined template and went through

the different parts of the organization, looked at various of aspects

but the focus was on the system practice, how do we use the

system, what is done in the current system and what is done

manually on the side and what is handled in other applications.”

Inventory of current processes, systems and working methods within the organization before starting the implementation of the new system ERP system?

“Learning from wave one is that the project should conduct more workshops explaining what changes will come in the way to operate.”

“They have had a lot of workshops and meetings to have discussions about the ERP.”

Conducting workshops to explain the changes to come when implementing a new ERP system

In chapter 4 the problem statement is answered, and the method chosen is applied. In 4.1 The identified activities are presented together with the results from the interviews, to answer the first problem statement. In 4.2 the survey results are presented to answer the second problem statement.


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Extract from the interviews Identified activities “The biggest challenge is the change and understanding the change. There we should be pushing certain activities for example workshops very early in the project with line managers to really make sure that the line managers understand the changes to come.”

“There have been monthly info letters that have been sent out to the employees that are part of the project or will become end-users.”

“Repeatedly informed to all employee the status through

information letters.”

Have monthly information letters describing the status of the ERP project

“Primarily the top management makes sure that the resources necessary are provided and available to do the implementation. “

“It is important to get the resources available.”

“The different resources is needed.”

Make sure that the resources needed for the implementation are provided and available.

“Also, the top management acknowledges that the organization is in need of the new ERP system and that the 20-30-year-old system needs to be replaced.”

“The project was acknowledged by the management.”

The top management acknowledge the need for a new ERP system.

“The managers can support by providing the understanding. “

“Making sure that they understand what will happen and what their role is in the program, ensuring that people have the time to participate and know what to do. a Top manager is a role to support everyone.”

The top management have a clear understanding of each employee’s role in the implantation and provide the support needed.

“Top management need to have a good background knowledge, how is the business conducted.”

“It is important to have knowledge about both the business and the implementation project. “

“Need someone to answer questions about how the specific processes will be handled.”

The top management have the knowledge and understanding of the different processes in the organization.

“It is a very clear plan.”

“For the project point of view there have been continuity communication and a clear plan. “

“From that point of view the concept is as a guideline and support for planning project and it is well defined. “

The top management provide a clear and well-defined plan.

“starting a new implementation and going in to the new country the top management start by preparing the local management and letting them know what is coming, the effect it will have on them and what is expected of them and starting preparing the organization from that point of view.”

The top management prepare the local management by letting them know what is coming, the effect they will have on them, and what is expected of them

“Four to five levels in between so it is important to have the communication between the layers of the management.”

The top management have constant communication through the layers of managers.

” Also need funds available from Business point of view, if the company takes a lot of people from the daily operations, they need to know that they have the support of hiring the replacements.”

The top management ensure resources are available for daily operations

Table 3, Identified activities for top management support.


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4.1.2 Implementation team Extract from the interviews

Identified activities

“The important here is that the people are open minded with the change. It is important to know the work processes, but focus must be forward. People can’t be stuck in the old way of thinking.”

“Wanted to choose a person that would be a good advocate, the person doesn’t need to be a manager but is known to have a big influence in their respective teams.”

“The most important was to have committed people for this new system. Because it is a big effort to learn a new system.”

“In general, good people and good knowledge and experience were found for the implementation team”

Create an implementation group with people that:

• Are committed • Have experience from

the work • Are good advocates • Have good knowledge • Are open minded with

the change, focusing forward.

“It is beneficial if they people in the implementation team have experience from the work “

” The best if it is a person with experience with Valmet before, so they have been able to create understanding of the business and that they know the people.”

Have people in the implementation team with experience and good knowledge of the company and its processes.

“Need to train and support the people coming in as a replacement”

Train and support the people coming in as replacement.

“Full-time in different periods people are working with the project full-time, depending on their role is needed in different phases.”

“The employees cannot focus 100% on the project because

often they are needed in the daily work as well.”

Make sure the people working in the project are able to work and focus on the project fulltime in the phase where their role is critical for the implementation.

”in the beginning there were kick-off meetings in Finland where you got to meet all the people, so you know who is who.”

“Kick-offs for different parts of the project to see and get to know all the people and know who to turn to if support and help are needed.”

Organize kick-off events for different parts of the project to promote team-building.

“They also have had a two-day workshop related to change management, external provider of that session. The participants were able to ventilate fears and hopes for this project and have discussions around it. The workshop was partly educational, but it was also embedded with team building activities.”

Organize workshops to promote team-building.

“When travelling there are often social activities, maybe you go out and eat something in evenings. During the project they also have had two common dinners. Cost thing, can’t spend too much money but some of it is good and needed.”

Organize dinners and social activities for the project team to promote team-building.

“The employees have had opportunity to make inputs but these inputs have not always been considered.”

“Have written some change requests to the project and said

that in order to go live in the system, we need to have these

changes. And a couple of them went through and are under

development right now”

The implementation group can suggest changes which is considered by the decision-makers.

Table 4, Identified activities for implementation team.


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4.1.3 Project management Extract from the interviews


“workshop on change management for all participants in the local implementation organization”

“In the beginning of the roll out, when we were in a larger scope, they had change management training.”

Educate the implementation

organization in change management

before the implementation.

“We have a leap learning. We have this learning concept

that basically is three levels. Level 1 training, introduction

general principles of how this whole thing works. Level 2

training concept is basically for different process areas so

when we are looking at supply chain, finance, production.

Level 3 is then regarding to our system training so how the

system is going to be used. It is mandatory training”

“We have about 20 e-learnings that everybody can take on

specific topics in addition to this”

“The training was done on PowerPoint slides in the early

phase now it is going more and more to the system itself,

showing how the system works and then making sure that

the people are using the system and using the system by

themselves.”

“they have the system so they could do simulations and

have system practice for them to actually see the system

and having an understanding of what is this about.”

“We have a global template for our key processes we have

modelled that will be the same for different business types

across the world but then when we actually develop.”

“Written information that exists on your location”

“They also have had a two-day workshop related to change

management, external provider of that session. The

participants were able to ventilate fears and hopes for this

project and have discussions around it. The workshop was

partly educational, but it was also embedded with team

building activities.”

Have education in forms of:

• Introduction with general

principles of how this

whole thing works. (Leap

learning level 1)

• Basic training in different

process areas (Leap

learning level 2)

• More hands-on training, go

into the system and do

training exercises (Leap

learning level 3)

• PowerPoint presentations

• Lectures available on the

internet on specific topics.

• Written information

• Templates and

documentations

• Stimulations and system

practice

• Workshops

“For evaluation of the phases, we carry out a

transformation effectiveness survey twice a year”

“It is important to evaluate each phase to learn to the next

rollout.”

Evaluate the different phases of the

implementation.

“Surveys to employees regularly every two months or after

major education, to get opinions.”

“Still they have had a lot of workshops and meetings where

they could give inputs and have discussions.”

“To motivate employees, we try to capture the high-level

perspective.”

Working with participation and

commitment through

• Surveys regularly to

employees every two

months or after major

education.


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Extract from the interviews Identified activities “For wave one it was mainly communicated to the project

organization. Going through activities and what actually

being done was not in a detailed level communicated

outside the project organization. Overall, in wave one has

the communication or the involvement from people outside

the project organization been very limited.”

“We should work more with get the organization on board,

see the big picture, accepting that they need to do these

changes and it is not optional.”

• Have workshops and

meetings to give inputs and

have discussions.

• Work to capture a high-

level perspective.

• Involve the employees in

the implementation and

keep them updated.

• Work with the acceptance

of change.

“Key-users are involved in an early stage” Involve the key-users in an early

stage

“Biggest challenge was that the system was not fully

developed, and functionality were missing, and no one

really have the answers.” “More time and work to update

the system to fit ALL the processes.”

“constant updating the concept so it will fit the

organization better.”

“continuously figuring out how to make things better and

now the next version of the roll out concept is ready for

publishing.”

Constantly work with updating the

system to fit the organization at an

early stage of the implementation.

“we try to be able to create the documentation and

template so that they are standardize”

Standardize templates and

documentation for the different

processes

“The biggest challenge has been to uphold for the

implementation organization to be positive about the

change. For this you have to make sure that the resources

needed are available.”

“makes sure that the resources necessary are provided and

available to do the implementation.”

“Workshops very early in the project with line managers to

really make sure that the line managers understand the

changes to come.”

“Different time to take in the change, weeks months. We all

are different, and this generates the change curve.

Important to know as a manager to make the employees

stay positive when we have a lot of challenges.”

“It is difficult but important to double check that everybody

have understood the information and understand what

actions that they are supposed to do.”

Uphold the implementation

organization to be positive about the

change by:

• Having the resources

needed available.

• Working with

understanding the changes

to come.

• Giving the employees

emotional support in the

different phases in the

change curve.

• Making sure people get the

help and support they

need.


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Extract from the interviews Identified activities “How to make the line managers bolder and making sure

that they understand what will happen and what their role

is in the program, ensuring that people have the time to

participate and know what to do.”

• Double-checking that

everybody has understood

what the expectations are

on each employee.

“Communication of the benefits are also areas that making

more effective processes. They plan to have less people

doing these functions, but it is more like how the company

serve all customers better. Probably everybody can list a

few benefits that are aimed to achieve from the project, and

all are about the same”

“Want more training in the ERP itself, have access to go

inside the system and click around and try stuff. Play

around in the system is an important part because then you

learn the effects of what you do.”

• Ensuring that people have

the time to participate and

know what to do

• Working on understanding

the goals of the

implementation and the

benefits of the new system.

• Receiving education to

fully understand the new

system.

“Was a part of wave one and therefore know a lot of people

who have done this before and are using the system today

and are able to get support from them. Know people from

leap core team well since the interviewee have been a part

of the project from the start. Therefore have a supporting

network and know who to call if an issue comes up.”

Involve and unite people from

different layers early in the project

to build a network within the

implementation organization.

“To communicate the progress, they held different

information sessions for all the employees not only the ones

that were in the project team.”

Communicate the progress to all the

employees not only the ones that

were involved in the project.

Table 5, Identified activities for project management.

4.1.4 Business plan and vision Extract from the interviews


“The broad communication to all the employees has been primarily town hall meetings and during the project, there have been monthly info letters that have been sent out to the employees that are part of the project or will become end-users.” “Repeatedly informed to all employees, town hall meeting, information available on the intranet, info letters, also from the project a monthly alignment call where all Valmet employees are invited to listen to the core project management describing what is going on.” “Team and skype meetings because the people involved is in different locations”

Communicating the ERP project through:

• Meetings face to face • info letters. • the information

available on the intranet.

• monthly alignment call for all the employees.

• Skype/Teams meetings.

“The communication or the involvement from people outside the project organization been very limited and should have been better.”

Involving all the employees in the project with information and updates of the project.

“To make sure everybody work harmonized, management should have created clearer roles and described what is expected and what affect the change will have on everybody not just in the implementation organization.”

Create well-defined roles with clear expectations of each role.


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Extract from the interviews Identified activities “There is a clear picture of what the new system will give to the organization.”

Create a clear vision of how the new ERP will benefit the organization.

“The goals and visions could have been much more communicated.”

Communicate the vision to all the employees in the organization.

”It is planned and measured if the people understand why the project is done and there is material available for benefit packing communication “

Evaluate if people understand why the change is needed for the organization.

“There are different project phases and milestones connected to those. To a certain level, the activities in each phase are defined, have level two work packages, and are included in each phase. When the milestones are approved you are allowed to move on to the next phase. “

Create clearly defined milestones and descriptions of how to fulfill them.

“Discussing much about the timetables and the identified risks that could affect the project to keep the timeframe.”

Have discussions about the timetables and identify the risks that could affect the project’s timeframe

Table 6, Identified activities for business plan and vision.


Extract from the interviews Identified activities

“The people experience of working with the actual system have been a part of the project to see gaps and lacking functions that the unit will need in the future. Change request to top management. Better the earlier in the project. “

Involve people with experience of working in the old system at an early stage of the implementation.

“The global template doesn't always have a good fit in all areas, so we have worked together to create specialized tools and templates.”

Create specialized tools and templates for the implementation.

“There were no activities to do before the project, because of the lack of knowledge of what would happen. “

“Activities have been done before to reduce work pressure during implementation, more luck than planned. “

Enable preparatory work by providing information about the upcoming implementation activities.

“I have been a part of the different processes so have seen what have to happen in the future and can handle it more by myself and need less support”

Include people working with systems and data early in the implementation

“Clear decisions and planning so no activities that are completed are unnecessary.”

Have clear decisions and planning about the system and data.

“The biggest challenge was getting to the whole chain. Stream thinking was an activity that was wrong, should work more process-oriented.”

Have process-oriented education to see the full picture of the system.


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“we had training materials where an education for all end users was conducted in a flow so that they would see the entire chain”

Extract from the interviews Identified activities

“What I think is important in all implementations of such systems is that there is a local resource that can be a superuser, that can come to your office or that you can go there and get help instead of having to always have support via email. It is both more effective and a better way to learn.”

Have a local super-user that is available to support and help.

Table 7, Identified activities for architecture choices, technical implementation and technological infrastructure.

4.2 Web-based survey The survey was sent to 125 persons representing people that have been involved in the implementation project or are the end users. The second problem statement can be answered when the method stage: “Data from the survey are analyzed to answer the problem statement” are completed, see figure 8.

Figure 8 (Part of figure 6) The stage where the second problem statement can be answered.

The result from the survey was compiled in diagrams within each critical success factors. For deepening information of the questionnaire for the survey, see Appendix B.


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4.2.1 Top management support

The calculated average of the collected data from Top management support is presented in figure 9. Number 1 corresponds “not so important” and number 4 is ”critical”.

Figure 9, Compiled data of important activities, Top management support.

To get more concrete information about important activities for top management the respondent were asked to rank different alternatives on a scale from most important to least important. The two most important concrete activities for the Top management are “make sure that the resources needed for the implementation are provided and available” and “prepare the local management by letting them know what is coming, the effect the change will have on them, and what is expected of them”. For complete result, see Appendix C.


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4.2.2 Implementation team

The calculated average of the collected data from questions about Implementation team is presented in figure 10. Number 1 corresponds “not so important” and number 4 is ”critical”.

Figure 10, compiled data important activities, implementation team. The respondents were also asked to rank important attributes in an implementation team to get an indicator of what to prioritize when creating an implementation team. The two most important attributes in an implementation team are people commitment and that they are open minded with the change. For further result of this question, see Appendix C.


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4.2.3 Project management

The calculated average of the collected data from questions about Project management is presented in figure 11. Number 1 corresponds “not so important” and number 4 is ”critical”.

Figure 11, compiled data of important activities, Project management.

To get a better and more specific understanding for some of the activities, the respondent got questions about education for the new ERP, important activities when working with participation and comittment, and important activities to uphold the organization to be positive about the change. The best way to learn the new ERP system, according to the survey, is by simulation and system practice, and more hands-on training, go into the system and do training exercises. Workshops and meetings where the implementation team are able to give inputs and have discussions, are the most favorable way to work with the participation and commitment. Involve the employees in the implementation and keep them updated, were also something that was ranked as very favorable. In order to uphold the organization to be positive about the change, “having the resources needed available “ and “making sure people get the help and support they need” were activities with the highest ranking. For more details about these more specific activities, see Appendix C.


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The different ranking from the end-users and the implementation organization are visualized in Appendix D.

4.2.4 Business plan and vision

The calculated average of the collected data from questions about Business plan and vision is presented in figure 12. Number 1 corresponds “not so important” and number 4 is ”critical”.

Figure 12, compiled data of important activities, Business plan and vision.

One question in the survey was to rank different ways to communicate the ERP project. This question was asked to get a deeper understanding in an important activity. The result showed that face to face meetings and monthly alignment calls for all employees were the two most appreciated ways to communicate the ERP project, see Appendix C for more information.


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The calculated average of the collected data from questions about Architecture choices, technical implementation, technological infrastructure is presented in figure 13. Number 1 corresponds “not so important” and number 4 is ”critical”.

Figure 13, compiled data of important activities, Architecture choices, technical implementation, technological infrastructure.


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5 Analysis

5.1 Interviews

In order to identify as many activities as possible all respondents in the interviews were asked what the biggest challenge have been during the implementation project. The theory of challenges implementing an ERP system supported with the respondent’s own thoughts of what activities that should had been conducted has been included in the result. These identified activities have been carefully backed up with theory and similar answers to provide a safer result. One example from the interview is: “We should work more with getting the organization on board, see the big picture, accepting that they need to do these changes and it is not optional.” This is supported in the theory where Vayyavur (2015), states that many projects fail due to resistance to change.

A lot of challenges for the case study company have been found in the interviews. Several of these challenges were also mentioned by Babaei (2015) and Vayyavur (2015) in the theory. Since both the theory and the case study are discussing almost the same challenges it seems to be a common problem area. This shows the importance of continuing study this research area since there are still a lot of challenges. This study contributes to the research area by giving a perspective of important activities in the early phase of an ERP implementation. Many of the identified challenges from the research and the interviews may be easier to solve if it is an awareness of what activities that should be prioritized.

An example both described in the theory and the interviews is that the implementation is very time-consuming and requires a lot of resources which makes it important to do the right things in the right time in order for the implementation to go as planned. In the theory Momoh et al. (2010) are describing this as “The implementation requires a large number of resources of time and capital and the organization needs to be able to provide the resources necessary during a long period of time “.

This chapter analyzes the results. The collected data from the empirical study is compared with the theoretical frame of reference. The result are interpreted through the data collected from interviews and surveys conducted.


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If there is knowledge of how to prioritize and what the important activities are to fulfill the critical success factors, then the implementation project has potential to be more effective and completed in shorter time. This does not change the fact that it is a huge change for an organization to implement a new ERP system. In previous research and also mentioned by Marcus (1996) and Kwon et al. (2003), pre- project activities and preparations before an ERP project are described as absolutely critical for a successful implementation. Of course, there are a lot of challenges when implementing an ERP system but after analyzing the interviews and the theory, it indicates good chances for ERP project to succeed if the early work will be conducted in the right way.

The respondents of the interviews were selected from different layers in the implementation organization both globally and locally. This approach gives an informative overview of the implementation project. All parts of an organization are affected of an ERP implementation and the requirements of the management are major. In order to do a successful implementation, there are a lot of hard work from the implementation organization. When interviewing people from different layers in the organization it is clear that they have different challenges even though they have the same main goal.

In several of the interviews, the interviewees describe the importance of education in the system. This is also supported by Babaei (2015) and described as “To use the system fully the employees, need the right education to avoid mistakes and inefficiency “. One of the risks that can cause implementation failure according to Huang et al (2004) is the composition of the project team. This risk factor has not been discussed much in the interviews. The theory listed the composition of the project team members as one critical factor that cause implementation failures. The team composition was discussed in the interviews but only to answer questions about that topic. When the interviewees were talking about big challenges the team composition was not mentioned. There can be several of reasons for not mention team composition. The importance of having a good composition of the project team is obvious but this might not be one of the biggest challenges that the case study company have faced in wave one.

5.2 Survey analysis

The result from the survey shows that many of the identified activities from the interviews are important since several of the respondents consider these critical.


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The most important activity in top management support is “conducting workshops to explain the changes to come when implementing a new ERP system”. The second most important activity is “The top management ensure resources are available for daily operations”. These two activities were also discussed and highlighted as very important in several of the interviews. After conducting interviews and a survey it seems to be confirmed that an implementation of a new ERP system is mostly about people. It is important that people understand why a change is needed in order to not be resistant of the change. In Appendix D the result from end users and implementation group are illustrated separately. In many cases the end users have answered similar to the people in the implementation group but sometimes the answers are varying. The question about “working with participation and commitment” is an example when both end users and implementation team have the same opinion. Both of the groups share the opinion that having workshops and meetings to give inputs and have discussions, is the most important activity. An example of when the answer from the two different groups are varying is in the question about upholding the implementation organization to be positive about the change. The end users have ranked “making sure people get the help and support they need “, as the most important activity while the implementation team ranked “having the resources needed available”, as the most important. One reason for the varying result is that different roles have different perspectives of what is most important. For a person in an implementation team it is critical to have all resources needed since that activity affect their daily work the most. On the other hand, for end users who are not using the system all the time it is important for their daily work to have the support and help when they have problems. In order to get a wide overview, the data from end users and implementation team were presented together but it is important to be aware that different roles have different needs. The second most important activity in top management support is also strongly connected with the people involved in the implementation. In order for all involved people to get motivated and positive about the change, top management need to have resources available for daily operations. This is not an easy task since resources includes many different things from material resources to support and help when the implementation team needs it. When an ERP project is introduced, it is necessary to be aware of the importance of the support and therefore prioritize this activity.


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The most important activities in the CSF implementation team are “Make sure the people working in the project are able to work with the project fulltime in the phase where their role is critical for the implementation” and “The implementation group can suggest changes which is considered by decision-makers". Different roles in an ERP project are needed in different phases which makes it important to know when each person in the implementation team are needed. According to the survey it is critical for people to be able to focus on the implementation fulltime. In order for people to be able to focus fulltime of an ERP project it is critical to find replacements for these people in the daily work. As third most important activity in the CSF implementation team “Train and support the people coming in as replacements”. This activity is closely connected with people being able to focus fulltime in the project which indicates that these two activities should be prioritized when starting an ERP implementation. “Involve the key users in an early phase” is the most important activity in the CSF project management. The key users have good knowledge of the old system and all processes which is favorable when implementing a new ERP system. It is critical for the key users to be involved in an early phase since they can draw attention to things that may not fit with the new system. By early being aware of the old system and what might not work in the new system, the company can work on a solution earlier which may save a lot of time. When analyzing the CSF business plan and vision, the result of the survey shows that several of activities are almost equally important. Since there were not too many respondents of the survey it is difficult to suggest which of these activities that are the most important. If there had been more people answering the survey the result might have been different. The received result shows that communicating the vision to the employees, have a clear vision of how the ERP will benefit the organization and create well-defined roles with clear expectations, are the activities with highest ranking. This is also confirmed in chapter 2.8.4 which highlights the importance of having a clear vision and plan that are communicated to the whole organization. “Have a local super-user that is available to support and help” is the most important activity in the CSF Architecture choices, technical implementation, technological infrastructure. This was also described as very important in some of the conducted interviews. When people are going to learn about the new system or when they are wondering something it is important that they have someone that can answer their questions. By having a local super-user available, the questions can be responded immediately. If there is not any local super-user available, the alternative is to get support by email which can take a lot of time before getting any help.


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Some identified activities in the CSF, Architecture choices, technical implementation, technological infrastructure are very complex and therefore it requires knowledge in this area. When asking about these activities in the survey, people with not that much knowledge about this area could not asses the importance of the activity. This can give misleading priority of the activities in the CSF Architecture choices, technical implementation, technological infrastructure. The method to prioritize activities in this CSF can be discussed. It might have been favorable to considered to do more interviews with people with good knowledge in this area in order to get a more correctly priority.

5.3 Method analysis

The survey was sent to 149 people involved in the Swedish implementation at Valmet. The different roles can be categorized as implementation owner, key-user, end-user, and steering group. Of the 149 people receiving the survey, 124 were end users, 6 were key users, 6 were implementation owners and 13 steering team.

28 responses were received. 14 of the received responses were from end users which is only a response rate of 11%. The people from the implementation group that answered the survey were, 5 from the steering group, 2 key users, 3 implementation owner and 4 had several roles in the implementation. This is a response rate of 56% which is much higher than the response rate for the end users.

The low response rate may be due to several different factors. There was a significant difference between the response rate for end users and the implementation team. The end users might not feel as involved as the implementation team and therefore don’t see why the study is important. This can be one reason for the low response rate among the end users.

Another reason for people not responding the survey is that the company is going into Wave 2, several of the people may have been busy and therefore did not prioritize the survey. To increase the number of respondents an employee at Valmet sent an email with the survey to the 149 colleagues where the authors and the purpose of the study were presented. A reminder was also sent to increase participation in the survey. Another survey was sent out by the company a couple of weeks before this survey which may have been a contributing factor to the low response rate. The good thing about the timing with the other survey is that there was an updated list of who is involved in the implementation, so no uninvolved had a chance to answer the questionnaire. To increase the response rate information about the study could had been brought up in a meeting.


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Some of the questions in the survey were designed for the respondent to rank different alternatives. Several of these alternatives might be important but since the survey aimed to prioritize, this approach was considered most appropriate.

In some cases, it can be misleading when the respondent should rank alternatives received from the interviews. For example, according to one of the interviewees, an important quality in an implementation group is to have a good advocate. When asking respondents to rank the qualities in the implementation team they might think of the qualities of all the persons in the team. It might not be important for all the people in the implementation team to be a good advocate, but it might be important to have one or more people that are good advocate to influent the employees. In order to reduce the risk of misleading the respondent, some of the questions could have been formed more clearly.

5.4 Validity and reliability

By conducting both surveys and interviews, the study mixes both quantitative data with qualitative data, which strengthen the validity and reliability. With nine interviews, the study received a large scope of data about the implementation. The information about the activities was often confirmed by several of the respondents. To increase the reliability, several of the answers from the interviews was confirmed by the theoretical framework that were created in the beginning of this thesis.

The interviews were compiled and sent to the interviewees to go through and correct their answer to make sure that their answers were perceived correctly. The questionnaire was only sent to people that in some way have been involved in the implementation within Valmet. This increases the reliability of the study as all responses received were persons with knowledge of the implementation and no unauthorized had access.

Some of the questions in the survey was to rank many different alternatives. For example, the question about the most important qualities in top management, see Appendix C, had 7 different alternatives for the respondent to rank. These types of questions in the survey had a lot of alternatives that all might be favorable for the implementation. Since there were a lot of alternatives it can be difficult for the respondent to answer the question and therefore the validity can be affected. There were only a few of these types of questions in the survey in order to strengthen validity. These types of questions were asked because the respondent had to make a choice. This approach was chosen to get a more detailed understanding for the most important activities.


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The response rate of the web-based survey was quite low which affect the final result. According to Ejlertsson (2019) it is decreasing participation in surveys which also is applying for this study. The conclusion of this study is based on the received answers, but it might have been other conclusions if more people have responded the survey. Even though the low response rate a positive aspect is that many people from the implementation team were participating in the survey. Since the implementation team have been involved a lot in the implementation and have good knowledge about the project, the reliability of the study is strengthened. In order to further increase the reliability of this thesis more responds have been needed. Another way to increase the reliability of the paper, the study could have conducted more interviews or included more companies to get a wider perspective.

To increase the validity of the study, the choice of method was repeatedly discussed with experienced supervisors. The questions asked in the interviews and the survey were also reviewed by a supervisor in order to strengthen the validity of the study.

5.5 Analysis of the result

One obvious pattern in the theory, interviews and the survey are that people want to be involved early in an ERP implementation project. According to the theory there is a tendency that people immediately would like to start with the implementation phase. By starting directly with the implementation people are not able to prepare for the change. People want to be informed of the changes to come in order to be prepared mentally. Therefore, this study suggests that people should be involved early in an implementation and get information about the project in order to be able to prepare for the changes to come. This activity can be performed even before an implementation starts. Another activity that can be performed before the start of an ERP implementation is to communicate the vision of the change and explain why the change is needed. By doing this activity early in the implementation people get the understanding of why it is important to do the change. This can have a positive influence of the attitude to the change.


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6. Conclusions

The study aim to fulfill the purpose, evaluate and give recommendations for important activities in the early phase of an ERP implementation. The goal is achieved by answering the problem statements of the study.

• Which activities are performed in the early phase of an ERP implementation?

• Which of these activities are most important to focus on in the early phase of an ERP implementation?

6.1 Which activities are performed in the early phase of an ERP implementation?

By analyzing the conducted interviews, several activities were identified to be performed in the early phase of an ERP implementation. Many of the identified activities includes the people in the implementation. Both the case study and the theory indicate that an ERP implementation is mostly about people. It is important that people understand why a change is needed in order to be positive about the change. Therefore, most of the identified activities concern the people within the organization and not the system itself.

6.2 Which of these activities are most important to focus on in the early phase of an ERP implementation?

The most important activities to focus in the early phase of an ERP implementation has been identified in the different critical success factors. The most important in each category is: Top management support:

• Conducting workshops to explain the changes to come when implementing a new ERP system.

• Make sure that the resources needed for the implementation are provided and available.

• The top management prepare the local management by letting them know what is coming, the effect they will have on them, and what is expected of them.

In this chapter the conclusions are drawn from the analysis. The reliability, validity and ethical aspects of the conclusion are examined. The chapter ends by describing the need for further research work in the future.


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Implementation team: • Make sure the people working in the project are able to work and

focus on the project fulltime in the phase where their role is critical for the implementation.

• The implementation group can suggest changes which is considered by the decision-makers.

• Train and support the people coming in as replacement. Project management:

• Involve the key-users in an early stage. • Involve and unite people from different layers early in the project to

build a network within the implementation organization. • Standardize templates and documentation for the different processes

Business plan and vision: • Communicate the vision to all the employees in the organization. • Have a clear vision of how the new ERP will benefit the organization. • Create well-defined roles with clear expectations.

Architecture choices, technical implementation, and technological infrastructure:

• Have a local super-user that is available to support and help. • Include people working with systems and data early in the

implementation. • Have clear decisions and planning about the system and data.

Several of the most important activities are connected to prevent challenges that were highlighted in the interviews as well as in the theory and earlier research. Therefore, it was not entirely unexpected which of the activities were identified as the most important. Since the activities are divided according to the CSF: s, it is important that you spend time working on the most important activities in each category, because all of these are critical to the success of the implementation.

6.3 Ethical and societal considerations

All the respondents have been clearly informed of their rights. All data collected from the interviews and the survey were handled anonymously, to get as truthful answers as possible. If the person is anonymous, the individual is not examined and does not have an obligation to value or weight in a certain way. The aim and purpose of the study have been presented in interviews and the survey, to inform the respondent about the study. The results of the study contribute to societal benefits by clarifying activities that are important at an early phase in the implementation of an ERP system. The study can help companies facing an ERP implementation to do the right things to succeed with the implementation.


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6.4 Future research

Further research in the subject is important to continue searching for important aspects to consider while implementing an ERP system. The subject is and will probably still be a very current issue in the future. To help companies facing the major challenge of implementing an ERP system, it would benefit if more future work concretized what is important to do during implementation. Future research could be further case studies to supplement the activities that this study has come up with and develop even more activities that are important in an early phase of implementing an ERP system. Also looking at the whole implementation and which activity you should perform in each phase to include the entire implementation. Examining more of the critical success factors could lead to more important activities. Researching the activities further and set the importance of each activity to the scope more precise conclusions may be drawn on how much time you should spent on each activity. Another interesting aspect that has not been addressed in this study is the company's customers and suppliers' perspectives. How they are affected by the implementation of an ERP system would be interesting to take part in future research in the field.

This study has contributed with important activities in an early phase of an ERP implementation but in order to take this study further it is also relevant to analyze how these activities should be performed in the best way.


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Appendix A: Interview questions Thank you for helping us by participating in this interview. This interview will be used for the work of our C-thesis. All answers in this interview will be handled anonymously and by us alone. It is completely optional to participate in the interview and you are free to cancel whenever you want or skip any of the questions. The aim of the work is to identify which activities are most important at an early stage in the implementation of an ERP. Would you be okay with us recording the interview? Do you want a compilation of the interview or take part in the full study? Intro: Tell us about yourself. What role do you have in the company in ordinary cases? Has your role changed with the implementation of the new business system, how? What are your responsibilities with the implementation? Top management support: What has top management done to support the implementation? Has top management prepared the organization for the change? How? Describe the communication between top management and the employees during wave one? (How often? Is it clear how to communicate, what channels etc?) Describe the communication between top management and the project team? (How often? Is it clear how to communicate, what channels etc?) Implementation team. Describe how the composition of the implementation group was made? Did you only select employees from Valmet or did you use any external consultants? Why? Describe more. Were the team members involved in the implementation spending full-time with the ERP project or did they still work with their original services? How was the implementation team empowered to make decisions related to the project?


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Have some activities been done to promote team building? Describe the activities. If not why? Project management What has been done to prepare coworkers for the implementation? Was there a clear plan? Which evaluation activities different phases of the implementation? Describe. How have you worked with participation and commitment? Have the employees had the opportunity to influence decisions or make inputs of their point of view? How have you worked to ensure that every employee sees the benefit of the change? For example, How do you motivate the people whose particular task becomes more difficult / takes longer? Did you have several project managers with different responsibilities? Describe. How do you manage the work when project members are located in different places? Business plan and vision How have you worked with the planning of the implementation? How has the implementation plan been communicated to everybody in the company? How have you worked for the project to keep the time frame? How have you been working to keep the budget? What have you done to get a manageable application of the project? What is the vision of the implementation and how will it benefit the company in the long run? How has this vision been communicated to the employees? Were milestones defined for the implementation project?


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Was the project's progress communicated as the implementation took place? Architecture choices and technical implementation technological infrastructure Did you customize parts of the ERP system or did you adjust the company to the system? How much help and support have you received from the vendor? Have you used the vendor’s tools for the implementation? Describe the process of converting data from the old system into the new one during the implementation/upgrade. How did you decide what data to convert or port over? Describe if there was any testing of the system during the implementation? How were the tests designed, were tests carried out in different departments? Describe the work of integrating the system with other systems. Have the employees had any education? What and how? Final questions: Have you completed any other activities that you think have been favorable to the implementation? Any activities that have been less favorable to the implementation? What have been your biggest challenge during the implementation?


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Appendix B: Survey questions

Hi, We are two students from Mid Sweden University, Sundsvall. We are currently performing the final work before our bachelor's degree of Science in Engineering: Industrial Engineering and Management. The research area of our study is ERP implementations, and the main focus is specifically the early stages of an ERP implementation. We are inviting you to take part of this short survey to assist us with our study. The purpose of the attached survey is to get a perception of important activities in an early phase of an ERP implementation. The survey will take about 5 minutes of your time. All answers in this survey will be anonymous and will be handled by us only and used only in our work. Participation in the survey is voluntary and you are free to cancel it whenever you want. Thank you for participating in this survey, Your opinions are important. Best regards Emma Larsson and Ida Hallberg Top management

• How important is it to collect facts about the old systems within the organization before starting the implementation of an ERP system?

• How important are workshops to explain the changes to come when implementing a new ERP system?

• How important is monthly info letters describing the status of the ERP project?

• What kind of meeting do you prefer? o Have short meeting often to get an update of the ERP project o Have long meetings but not so often to get an update of the

ERP project • Rank the following qualities for the global top management.

o Make sure that the resources needed for the implementation are provided and available.

o They acknowledge the need for a new ERP system. o They have a clear understanding of your role and provide the

support needed. o They have the knowledge and understanding of the different

processes in the organization. o Provide a clear and well-defined plan.


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o Prepare the local management by letting them know what is coming, the effect they will have on them, and what is expected of them.

• How important is it to have constant communication through the layers of managers?

• How important is it to ensure resources are available for daily operations?

Implementation group.

• Rank the importance of each attribute in an implementation group? o Committed people o Experience from the daily work within the company o A good advocate o Good knowledge o Open-minded with the change, focusing forward. o Own comment

• How important is it to have earlier experience within Valmet when being a part of the implementation team?

• How important is it for the people coming in as a replacement to get training and support?

• How important is it for the people working in the project to be able to focus on the project fulltime in the phase where their role is critical for the implementation.

• How important are kick-offs for different parts of the projects, from a team-building perspective?

• How important are workshops from a team-building perspective? • How important is it to organize dinners and social activities for the

project team to promote team-building? • How important is it for the implementation group to be able to

suggest changes which are taken into account by the decision-makers. Business plan and vision

• How should the company communicate the ERP project to the employees?

o Meetings face to face o info letters o the information available on the intranet o monthly alignment call for all Valmet employees o Skype/Teams meetings

• How important is it for employees that are not fully involved in the ERP project to get information/updates of the project?

• How important is it to have well-defined roles with clear expectations in the implementation?

• How important is it to have a clear vision of what the new ERP will give to the organization?


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• How important is it to communicate the vision to all employees? • How important is it to evaluate if people understand why change is

needed for the organization? • How important is it to have clearly defined milestones and

descriptions on how to fulfill them connected to the different phases? • How important is it to have discussions about the time tables and

identify the risks that could affect the project’s timeframe? Project management

• How important is it for everybody in the project group to get an education in change management before the implementation starts?

• Which of the following educations is most favorable in order to learn about the new system?

o Introduction with an overview and high-level information about the new system. (Leap learning level 1)

o Basic training in different process areas (Leap learning level 2) o More hands-on training, go into the system and do training

exercises (Leap learning level 3) o Powerpoint presentations o Lectures available on the internet on specific topics. o Written information o Templates and documentations o Simulations and system practice o Time to go through the system yourself. o Workshops

• How important is it to evaluate each phase of the implementation? • Which of these activities are most important to create participation

and commitment? o Surveys regularly every two months or after major education

to employees. o Have workshops and meetings where they could give inputs

and have discussions. o Work to capture a high-level perspective. o Involve the employees more in the implementation and keep

them more updated about the implementation. o Work with the acceptance of change in the project group.

• How important is it for key-users to be involved in an early stage? • How important is it to constantly work with updating the system to

fit the organization at an early stage of the implementation? • How important is it to have standardized templates and

documentation for the different processes? • Rank what is most important to uphold the organization to be

positive about the change: o The resources needed are available. o Working with understanding the changes to come.


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o Give the employees emotional support in the different phases of the change curve.

o Make sure people get help and the support they need. o Double-check that everybody has understood what the

expectations are on each employee. o Ensuring that people have the time to participate and know

what to do. o Understanding the goals of the implementation and the

benefits with the new system. o Receiving education to fully understand the new system.

• How important is it to involve and unite people from different layers early in the project to build a network within the implementation organization?

• How important is it to communicate the progress to all the employees not only the ones that were involved in the project?

Architecture choices, technical implementation, technological infrastructure

• How important is it to involve people with experience of working in the old system at an early stage of the implementation?

• How important is it to have specialized tools and templates for the implementation?

• How important is it to provide information about the upcoming implementation activities in order to do preparatory work in the old system?

• How important is it to include people working with systems and data early in the implementation?

• How important is it to have clear decisions and planning about the system and data?

• How important is it to have process-oriented education and see the full picture of the system?

• How important is it to have local super-users that is available to support and help?


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Appendix C: Results from survey

Top management:

Implementation group:


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Project management


69

Business plan and vision


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Appendix D: The different ranking for End-users and the implementation organization.

End-users Implementation organisation

Most importantMaking sure people get the help

and support they need.

Having the resources needed

available.

2:nd

Having the resources needed

available.

Making sure people get the help and

support they need.

3:rd

Ensuring that people have the

time to participate and know

what to do

Receiving education to fully

understand the new system.

4:th

Receiving education to fully

understand the new system.

Working with understanding the

changes to come.

5:th

Working with understanding the

changes to come.

Ensuring that people have the time

to participate and know what to do

6:th

Double-checking that everybody

has understood what the

expectations are on each

employee.

Working on understanding the goals

of the implementation and the

benefits of the new system.

7:th

Giving the employees emotional

support in the different phases in

the change curve.

Double-checking that everybody has

understood what the expectations

are on each employee.

Least important

Working on understanding the

goals of the implementation and

the benefits of the new system.

Giving the employees emotional

support in the different phases in the

change curve.

Uphold the implementation organization to be positive

about the change by:


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End-users Implementation organisation

Most importantHave workshops and meetings to

give inputs and have discussions.

Have workshops and meetings to give

inputs and have discussions.

2:nd

Involve the employees in the

implementation and keep them

updated.

Involve the employees in the

implementation and keep them updated.

3:rd

Work with the acceptance of

change.Work with the acceptance of change.

4:th

Work to capture a high-level

perspective.Work to capture a high-level perspective.

Least important

Surveys regularly to employees

every two months or after major

education.

Surveys regularly to employees every two

months or after major education.

Working with participation and commitment through:

important activities in an early erp implementation phase

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