Implementation of enterprise resource planning (ERP) as a tool to improve competitiveness in mining industry :the case of Hwange Colliery Company (HCCL) (2010 - 2013)

Abstract

The research explores the implementation of ERP for competitive advantage by mining companies in Zimbabwe. Hwange Colliery Company was used as the case for the study. In the study, the following areas were looked at,benefits of ERP to mining companies, challenges that companies face during ERP implementation, assessment of readiness for implementing ERP and the alignment of ERP to the company strategy. The objectives of the research includes establishment of motivation for ERP adoption, level of utilisation and to establish key areas that require management attention to ensure a successful ERP implementation process that would bring competitiveness to HCCL. The research involves analysis of ERP implementation by Hwange colliery through survey and interviews. The readiness for implementing ERP was examined using McKenzie’s 7s model. Based on the model, management style at HCCL does not promote successful ERP implementation. The aspect of unsupportive management style rated very high across the organisational levels, however some benefits of ERP adoption and implementation are realised in the following areas; reporting efficacy and accuracy, accessibility of information for decision making and cost control. The research concludes that proper ERP implementation brings tremendous benefits and competitive advantage to mining organisations. The research also noted that management culture and style were not supportive of ERP implementation and recommends change management courses. The impact of management style and culture on ERP implementation needs to be further explored even outside mining sector since it rated high in negatively affecting the implementation of ERP at HCCL.