An Assessment of Readiness Factors forImplementing ERP Based on Agility (Extensionof Mckinsey 7s Model

Studies conducted by many researchers indicate high failure rate of projectsof implementing ERP systems. Furthermore, organizations should be agile tobe able to respond to market changes fast and effectively to survive incompetitive environment. ERP and agility are two important tools forachieving competitive advantages. The main goal of the present study was toidentify and prioritize organizational readiness factors for implementing ERPbased on organizational agility. In this study, along with extension ofMcKinsey 7S model (strategy, structure, systems, skills, style, staff, sharedvalues) to 9S (7S+ self-evaluation and supportive factors) model, agilitycriteria 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 FAHPand TOPSIS method based on five criteria of agility. The framework wasproposed to a real case of Shiraz distribution cooperative firms. Results showedthat among the nine organizational dimensions based on agility, the two addedto McKinsey dimensions (self-evaluation and supportive factors) are ranked inthe first and fourth places. The proposed framework help the enterprises toimplement ERP system with agility approach concentrate on changemanagement and develop strategies based on their own priority.

Keywords:

Organizational readiness , ERP , organizational agility , McKinsey model