Identifying and Prioritizing of Readiness Factors for Implementing ERP Based on Agility (Extension of McKinsey 7S Model)

Abstract

Studies conducted by many researchers indicate high failure rate of projects of implementing ERP systems. To penetrate in global competition market, it seems necessary to carry out studies to assess organizational readiness prior to system implementation to identify weaknesses and strengths points of the organization. Furthermore, organizations should be agile to be able to respond to market changes fast and effectively to survive in competitive environment. ERP and agility are two important tools for achieving competitive advantages. The main goal of the present study was to identify and prioritize organizational readiness factors for implementing ERP based on organizational agility. In this study, along with extension of McKinsey 7S model (strategy, structure, systems, skills, style, staff, shared values) to 9S (7S+ self-evaluation and supportive factors) model, agility criteria were weighted and rated using group AHP with fuzzy logic approach; so that accountability, speed and flexibility have obtained the maximum score. The nine organizational readiness factors were ranked using integrated FAHP and TOPSIS method based on five criteria of agility. The framework was proposed to a real case of Shiraz distribution cooperative firms. Results showed that among the nine organizational dimensions based on agility, the two added to McKinsey dimensions (self-evaluation and supportive factors) are ranked in the first and fourth places. The proposed framework help the firms “to implement ERP system with agility approach” concentrate on effective empowerments and develop strategies based on their own priority.