Implementation of Enterprise Resource Planning Systems in Saccos in Nairobi

Abstract

ERP system is a key facilitator for Savings and Credit Cooperatives (SACCOs) to provide products and services to members as well as provide the information required to ensure that they are operated in safe and secure manner. The study concentrated on the SACCOs in Nairobi county with the following objectives: to establish the practices of ERP Implementation in SACCOs in Nairobi County; to determine the extent to which the installation methods of ERP systems applied in SACCOs in Nairobi county; to determine the factors influencing the choice of ERP installation methods in SACCOs. The research was on population of 36 registered SACCOs by SASRA in Nairobi county from where the data was collected using questionnaires and google forms and analyzed through standard deviation, mean scores, percentages and factor analysis. The results of the findings were tabulated on tables and figures. The study realized that most ERP implementation practices are viable to every organization as recoded a mean value greater than 3. The most common installation method in SACCOs in Nairobi county is the big-bang/direct cut-over strategy. This is largely due to the fact that this is the least expensive mode of implementation and is also used by companies that have sizeable growth. According to the findings, most SACCOs researched about confirmed that the ERP installation factors are essential before choice of an installation method with the factors categorized into three clusters summarized as Organization Controls, Customization level of the ERP system and vendors’ reputation in handling specific Installation method. In order for an organization to realize a success from the implementation of ERP system, the study recommended that they should employ all the implementation practices highlighted in the study as the finding revealed that the practices are all viable with a mean value above 3.