Final Version

ST.
MARY’S UNIVERSITY
SCHOOL OF GRADUATE STUDIES

MASTERS OF BUSINESS ADMINISTRATION IN
PROJECT MANAGEMENT
ASSESSMENT OF SUCCESS FACTORS IN CORE

BANKING SOFTWARE PROJECT IMPLEMENTATION
AT COMMERCIAL BANK OF ETHIOPIA
BY
WESENYELESH TEZERA BEYENE
JANUARY, 2017
ADDIS ABABA, ETHIOPIA
BY
ID NUMBER: - SGS/0689/2007A
A THESIS SUBMITTED TO ST. MARY’S UNIVERSITY,

SCHOOL OF GRADUATE STUDIESIN PARTIAL
FULFILMENT OF THE REQUIRMENTS FOR THE
DEGREE OF MASTER OF BUSINESS ADMINISTRATION
IN PROJECT MANAGEMENT
JANUARY, 2017
ADDIS ABABA, ETHIOPIA
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ST. MARY’S UNIVERSITY
SCHOOL OF GRADUATE STUDIES
FACULTY OF BUSINESS

BY
ID NUMBER: - SGS/0689/2007A
APPROVED BY BOARD OF EXAMINERS

----------------------------------------------- ------------------------------------------
Dean, Graduate Studies Signature
----------------------------------------------- ------------------------------------------
Advisor Signature
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External Examiner Signature
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Internal Examiner Signature
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DECLARATION
I, the undersigned, declare that this thesis is my original work, prepared
under the guidance of Dr. TemesgenBelayneh. All sources of materials used
for the thesis have been duly acknowledged. I further confirm that the thesis
has not been submitted either in part or in full to any other higher learning
institution for the purpose of earning any degree.
Wesenyelesh Tezera ______________________

Name Signature
St. Mary‘s University, Addis Ababa JANUARY, 2017
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ENDORSEMENT
This thesis has been submitted to St. Mary‘s University, School of Graduate
Studies for examination with my approval as a university advisor.
TemesgenBelayneh (Ph.D.) ----------------------------------------------

Advisor Signature
St. Mary’s University JANUARY 2017
Addis Ababa
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Dedicated to my family
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ACKNOWLEDGEMENTS
This research paper is made possible through the help and support from everyone
including my husband friends teachers and in essence, all sentient beings especially
please allow me to dedicate my acknowledgments of gratitude toward the following
contributors.
First of all I would like to give my glory and praise to the Almighty God for his
invaluable care, support and all the things throughout my life.
Next I would like to express my thanks and appreciation to my Advisor Dr.

TemesgenBelayneh, for his guidance, continual advice, patience, vast knowledge, and
critical review of the thesis. It has helped me to improve the quality of the thesis.
In addition, I would like to thank all my friends for their continuous encouragement and
support, especially MrsAnaneMiressa and Mr. TemesgenZelalamwhose support, interest,
and encouragement during my studies.
I also express my gratitude to the entire project team (respondents) of CBS

implementation project and the branch managers Addis Ababa City branches at
Commercial bank Especially Team Leaders of CBS project implementation
AtoYitbarekTesfaye, Abrham ,Andinet and KidusLelisa for taking time and providing
valuable empirical foundation enabling this study.
Finally I would like to express gratitude to my husband ZebeneWodajo, and my kids,

Yedideya, Halleluya, Wongel and Elilta, for their sacrifices, patience and understanding
shown. Without their unstinted support, completion of the Master‘s Degree would have
been an impossible undertaking. I will always love and thank you.
God bless you all.
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ACRONYMS
CBS Core Banking System
CORE Centralized Online Real entire banks' branch
PMO Project Management Office
CBE Commercial Bank of Ethiopia
NBE National Bank of Ethiopia
ATM Automated Teller Machine
CSF Critical Success Factor
ROI Return on Investment
SPSS Statistical Package for Social Sciences
IT Information technology
STP Straight-Through-Processing
SMS Short Text Message
CBSO Core Banking Solution
BPR Business Process Reengineering
BOD Board of Directors
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List of Tables and Figures
Tables
Table 3.1: Target population.
Table 3.2: strata (subgroups) for random sampling
Table 4.1: Rate of Responses by Respondents
Table 4.2 Response rate by age group
Table 4.3 Educational Background of respondents
Table 4.4 Role of respondents
Table 4.5: Factors in Measuring Success of a CBS Implementation Project
Table 4.6: Analysis of Success factors Related to Project Management
Table 4.7 Analysis related to Top Management support
Table 4.8 Analysis related to effective communication
Table 4.9 Analysis of success factor related to vendor support and commitment
Table 4.10 Analysis related to risk analysis
Table 4.11 Success factors related to monitoring
Figures
Figure 2.1 ―iron triangle.‖

Figure 2.2 Conceptual Framework
Fig. 4.1 Response rates by gender

Fig 4.6 Work experience of respondents at the bank
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Abstract
Banks play an important role in economic development of a country, where commercial

banks play pivotal role within the banking industry. Due to economic reasons, market
pressures and regulatory requirements, banks require to change their Core Banking
Solution from time to time. The purpose of this study was to determine critical success
factor in Core banking Solution project implementation and success measurement
criteria in Core Banking Solution implementation project of Commercial Bank of
Ethiopia. The study employed descriptive analysis. The survey questionnaire was
designed based on the literature and on the information collected through the interviews
conducted to the team leaders of both technical and business team. The survey
questionnaire was distributed to 227 persons among them 97 was all Commercial Bank
of Ethiopia Core Banking System implementation project team members and the rest 130
branch managers of Addis Ababa City branch of Commercial bank of Ethiopia were
identified as sample population . Out of the 227 respondents only 179 responded, which
represented a response rate of 78.85% .The data gathered through the questionnaire was
analyzed by Statistical Package for Social Science (SPSS).The analysis showed that nine
critical success factors were identified related to core banking solution implementation
project of Commercial Bank of Ethiopia. The key perceptions and aspect of attributes
namely; professional project manager, monitoring the progress, dedicated project team
dedicated resource, transparency, end users training, top management support, vendor
support and commitment identified as Critical Success Factors related to CBS
implementation process. . Besides, the identified project success measurement criteria
were Improved Efficiency” “End User Satisfaction” and “Reduced Complexity of
Operation” are identified as success measurement criteria unlikely this results deviate
from generally accepted measurements of success of a project, which are achieving
project goals, within agreed time and budget Finally, recommendations were forwarded
based on the major findings so as to implement successful Core Banking Solution project.
Keywords: Core Banking Solutions, Critical Success factors, success measurement

criteria Core banking solution implementation.
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CHAPTER ONE
INTRODUCTION
1.1Background of the study
In modern banking service delivery, the environment is ever-changing demanding a lot to

satisfy customer expectations through quality service delivery. Beyond this, the
government policy, the need of customers and technological advancements have brought
about various changes on the in which various products and services are delivered to the
customers in banks. Technology is expanding rapidly these days and the most popular
services of banks are also given through the use of information technology like internet
banking, mobile banking etc. Electronic Banking, an upcoming trend in today‘s
commercial world is widely demanded by citizens and companies. To meet such
demands the banks need to continue in widening their services (Awash newsletter, 2014).
The nerve center of technology in a bank‘s information technology department is core

banking system (Otieno,2013). As a result, recently the banking sector has faced stringent
competition in implementing core banking system, the technology has dramatically been
changing in the faster rate, and the faster is one expected to gain the advantage in the
market.
Technology has made tremendous impact in banking. ‗Anywhere banking‘ and ‗anytime
banking‘ have become the order of the day. As a result, all commercial banks had
engaged and/or to be engaged with implementations of the core banking software projects
so as to get the better position both national and international markets (IBM, 2011).
Core Banking Solution (CBS) is networking of branches, which enables Customers to

operate their accounts, and avail banking services from any branch of the Bank on CBS
network, regardless of where he maintains his account. The customer is no more the
customer of a Branch. He becomes the Bank‘s Customer (Geetha&Ramanarayanan,
2015) though core banking has given unlimited advantages to the banks, many core
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banking projects fail due to numerous reasons. Core Banking Software (CBS)
implementation projects thus need joint effort of the bank and an implementation partner.
The first and most important goal is to deliver the project on time and budget (Haller and
Heuberger, 2009).
As noted by Satyanaryanrna and Kavitha(2011) the world is moving very fast and so are
the individual and consumer in the banking industry. Therefore, the focus of banks has to
shift to the fast moving consumer, who is exposed to better technology and better option
in the competitive environment. The gap between different countries will be diminishing
from time to time as a result of faster communication, transportation and rapid
technological changes.
Accordingly banks in Ethiopia have to quickly shift the old branch based technology to a
new core banking solution technology I-Flex(2012). The core banking solution can
enable the banks to process their activities quickly, shorter and speedy as per the
customer expectation (IBM, 2011). However, due to the lack of proper understanding of
factors which affect the implementation of core banking software, many projects have
failed or implemented beyond originally scheduled time with high amount of cost.
Therefore, understanding of the project behavior in terms of risk, project manager
capability and bank‘s objectives can help the bank‘s decision maker so as to know
whether the project goes wrong or not (Kerzer,1987).
1.2 Background of the Case Study Area
The Commercial Bank of Ethiopia (CBE) is the largest commercial bank in Ethiopia .
The bank has reached 1140 branches as of March 31, 2016and it‘s over
900 branches positioned in the main cities and regional towns. There are 193 branches in
the national capital Addis Ababa. CBE's banking network has reached online 783
branches.
The bank also operates two branches in South Sudan, and is contemplating opening re-
opening a branch in Djibouti, and opening branches in Dubai and Washington, DC, all to
serve the Ethiopian Diaspora further the bank has strong correspondent relationship with
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more than 50 renowned foreign banks like Commerz Bank A.G., Royal Bank of Canada,
City Bank, HSBC Bank, and other.
The bank has around 28,000 employees; Commercial Bank of Ethiopian is pioneer to
introduce modern banking to the country. CBE is the first bank in Ethiopia to introduce
ATM service for local users. More than 88 percent of the Bank‘s branches went on line
through T-24 (Core Banking Solutions, 2015).
1.3 Statement of the Problem
The existence of both government and private commercial banks in Ethiopia has created
new trends in the banking industry Biritu (2010). Retaining the existing and expanding
the same is the order of the day since competition among banks has become very stiff.
Therefore, the leading commercial banks in Ethiopia have quickly shifted from traditional
to high-technology core banking solution in order to get benefits by providing a variety of
products.
As per NBE report (2010), all banks in Ethiopia are expected to be implement core
banking projects. According to Capgemini(2012) which is software Provider Company,
the process of replacement of the existing system with high-tech core solution has faced
various challenges/risks which if not managed properly may present negative out come
on the project success. Core banking software change project in a bank is a project which
is very costly and risky so that its success depend on top management priority (Otieno,
2013).
According to Otieno (2013) the core banking software implementation project which is
very sensitive, complex and vulnerable to fraud, risk, duration, project manager
capability and vendor behavior requires high attention of top management. Therefore,
before banks have to purchase the software, they must properly be analyzed the probable
risk, project manager capability and the project success factor first. As have been argued
by Kudav and Bhasin( as cited in Cognizant-software provider,2013) about 25% of core
banking system transformations failed without any results due to the lack of proper risk
management and modern project management capabilities while 50% do not achieve the
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transformation objectives-cost and implementation time which may double or triple. Only
25% are successfully implemented.
According to i-flex solution (2008) which is a leading software provider in Singapore, the
primary and significant core banking project strives for meeting or exceeding customer
expectations and delighting them. Successful project implementation will require
collective wisdom, mutual understanding, organized pre-established risk assessment
mechanisms, capable project manager, top management support and periodic evaluation
of cost, time and risk. On the other hand, as stated in ESP solutions report (2010), 70% of
similar projects fail due to the lack of right vendor, risk management and poor project
management
There are a few studies made on CBS implementation project critical success factors in
general , These few studies also focused on success factors in the area of project
management related, some of them are:Schultz, et al (1987) identified the most important
influential factors in banks implementation projects in Ethiopia. Bhatti T.R. (2005)
critical success factors in implementing ERP (Enterprise Resource Planning).
Based on the above reviewed literature, most Core Banking Software implementation
projects failed due to fact, there are no proper best practices for implementing CBS.
Therefore, the study tried to assess determinants of critical success factors in Core
Banking Software implementation of Commercial Bank of Ethiopia by addressing the
following research questions:
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1.4Basic Research Questions
1. What are critical success factors in Core Banking software project

implementation of Commercial bank of Ethiopia?
2. What are CBS implementation project success measurement criteria of
Commercial Bank of Ethiopia?
1.5 Objectives of the Study
1.5.1 General Objective of the Study:
The general objective of the study is to assess the major success factors in Core Banking
software project implementation, by focusing on Commercial Bank of Ethiopia.
1.5.2 Specific Objectives of the Study:
This study aims to:
 Identify factors affecting success of Core Banking software implementation of

Commercial Bank of Ethiopia.
 To assess CBS implementation project success measurement criteria of
Commercial Bank of Ethiopia.
1.6. Significance of the Study
The study will help other private commercial banks in Ethiopia to understand factors that
aggravated project cost, delay and stakeholders dissatisfaction. Moreover, the research is
not only used for other bank‘s IT project implementation, but it may also be used as
springboard for others to make further study on this area and other bank‘s project
implementation. And importantly, this research will educate project managers on project
specifically core banking systems or IT projects.
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1.7 Scope (Delimitation) of the Study
The study will focused on all Head office organs Project Management Office (PMO) of
Commercial Bank of Ethiopia, who were directly involved in core banking software
projects from inception to execution and Addis Ababa city branch managers of the Bank.
Hence, the data collected from Head office staffs at PMO and Addis Ababa city selected
branches of Commercial Bank of Ethiopia based on the sampling methodology applied.
1.8 Limitation of the study
Limitation is an integral part of a study; hence it may affect the research design and the
outcome. Research on CBS implementation project of the commercial bank of Ethiopia
would have been the ideal scenario for this study. However, it is practically difficult to
get all the members of CBS implementation project at PMO because majority of the
project team members assigned to their original place within the branch network of the
bank after completion of the project. There was alsoa limitation in obtaining some
information critical for the research, which may be considered as sensitive or confidential
by the banks. Besides, the objective of the study requiresusing casual research design but,
study adopted descriptive design. The other limitation observed during data collection
was lack of interest in filling the questionnaire by the respondents.
1.9 Organization of the Thesis Report
The paper is organized in to five chapters. The first chapter is an introduction of the study
which introduces the overall study. This part consists of background of the study,
background of the case study area, statement of the problem, objectives of the study basic
research question, limitation of the sturdy significance and scope of the study.
The second chapter focuses on review of related literature in which earlier studies on the
area are highlighted and presented. Theoretical Review of the Literature and empirical
evidences of factors affecting core banking system implementation are discussed in
detail.
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The third chapter emphasizes on the design of the research and the methodologies used.
In this chapter sampling techniques, source and tools/ instrument of data collection,
procedure of data collection, validity and reliability of data collection instrument,
methods of data analysis and ethical research consideration are presented.
The fourth chapter is devoted to data presentation, analysis and interpretation in which
the collected primary and secondary data are analyzed and organized in a manner that
meets the objectives of the study.
The last chapter deals with summary of the research findings, the conclusion as well as
recommendations of the research based on the findings.
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CHAPTER TWO
Reviews of Related Literature
2.1 Introduction
In this section of the study, theoretical background and empirical review of literatures of
different scholars have been reviewed in order to seek what scholars and other authors
have written in the area of project management specifically in connection with banks IT
projects. Further, this section deals core banking solution implementation, types, benefits
and challenges of Core Banking Solution Implementation.
2.2 Theoretical Review of the Literature
2.2.1. What is project success?
A variety of authors have defined success for IT projects using different ways. According
to Hastie, 2006 project success is defined as a measure of the effectiveness of the
organizations processes for implementing new Information System projects, up to the
point of deployment of the new system to the end user community. This incorporates all
the project related activities to ensure: project delivery on time, on budget, of required
features and functions and to the requisite quality standards.
A standard must be established by which to define and measure project success.

Fundamentally, project success is the delivery of the required product, service, or result
on time and within budget. To meet these objectives is to deliver a quality project. PMI
illustrates project quality through the concept of the triple constraint—project scope, time
and cost. Project quality is affected by balancing these three interrelated factors. ―The
relationship among these factors is such that if any one of the three factors changes, at
least one other factor is likely to be affected‖ (PMBOK, 2004 page no.37).
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Figure 2.1 illustrates this constrained relationship, sometimes called the ―iron triangle.‖
Source: PMBOK, 2004 page37
2.2.2. Concepts of Project and Project Management
Project can be defined in a various ways as there are different types of project such as IT
projects, Construction projects, community development projects etc. According to
PMBOK (2013) ‗A project is a temporary endeavor undertaken to create a unique
product, service, or result‘
Wysocki (2009) define a project as ‗ a sequence of unique, complex, and connected

activities that have one goal or purpose and that must be completed by a specific time,
within budget, and according to specification‘. This definition tells quite a bit about a
project.
Project management is defined by different scholars differently. However, the current

study uses PMBOK concept of project management, ‗project management is the
application of knowledge, skills, tools and techniques to project activities‘
(PMBOK2013: page no.5). Project management is accomplished through the application
and integration of the project management processes of initiating, planning, executing,
monitoring and controlling, and closing’Thus, project manager is the person responsible
for leading a project from its inception to execution.
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2.2.3 The Importance of ICT in Banks
Technology has opened up new markets, new products, new services and efficient
delivery channels for the banking industry over the last 10 years. The Automated Teller
Machines, ecommerce and m-Commerce have been introduced as new channels to
Ethiopian customers apart from traditional branch banking. Banks use technology to
maintain transaction processing and provide better service to their clients through
electronic delivery channels while being competitive within the industry. Information
Technology has also facilitated the banking industry to deal with challenges from
economic changes leading to higher demand of banking services. Information technology
has been the cornerstone of recent financial sector reforms aimed at increasing the speed
and reliability of financial operations and of initiatives to strengthen the banking sector
(Dortson, 2008).
Further, the information technology enabled the banks to meet expectations of demanding
customers. As a result, the banks have increasingly become more tech-savvy. Customers
demand instant, anytime and anywhere banking facilities from the banking industry.
Traditionally, IT industry has been providing solutions to banks to take care of their
accounting and back-office requirements. However, this has now given way to large scale
usage in services aimed at the customers of the banks. Further, IT deployment has
assumed high levels that it is no longer possible for banks to manage their IT
implementations on a standalone basis (Vendor Reports 2012). With the revolution and
evolution of IT, banks are increasingly interconnecting their computer systems not only
across branches in a city but also to other geographic locations with high speed network
infrastructure, and setting up local area and wide area networks and connecting them to
the Internet (BOC Annual Report, 2009). As a result, information systems and networks
are now exposed to growth to meet the requirements.
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2.2.4 Core Banking system
Core Banking Solution (CBS) is networking of branches, which enables Customers to

operate their accounts, and avail banking services from any branch of the Bank on CBS
network, regardless of where he maintains his account (Geetha&Ramanarayanan, 2015).
The core banking services rely heavily on computer and network technology to allow a
bank to centralize its record keeping and access from any location. It has been the
development of banking software that has allowed core banking solutions to be
developed.
Core banking systems are basically the heart of all systems running in a bank and it forms
the Core of the bank's IT platform (Infosys, 2009b). Amongst other functionalities, it
provides the customer information management, central accounting and the transaction-
processing functions, which by far are the most fundamental processes in a bank
(Satchidananda, 2006).These systems not only drive the banks' day-to-day operations but
also serve as the core IT platform for new capabilities and growth (Quarterly, 2011). A
flexible core banking system that allows the bank to rapidly launch new products and
services can give the bank as significant advantage over its competitors (Massed, 2011).
Gartner (2003) defines a core banking system as a back-end system that processes daily
banking transactions, and posts updates to accounts and other financial records.
2.2.4 Legacy Core Banking Solutions
To keep pace with rapidly evolving business and operational requirements along with
changing customer demands, banks need to constantly upgrade their banking practices
and processes. This is only possible if banks regularly enhance their core systems and
associated applications. Since most core banking applications at large financial
institutions were developed almost two decades ago and have been enhanced from time
to time to meet business needs, not only have individual applications become complex,
but an intricate maze of applications has been created as well (Infosys, 2009b). In
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addition, there are very few tools available for the outdated platforms on which the core
banking applications were initially developed. These complexities make the task of
enhancing core systems extremely difficult, time consuming and costly. Not surprisingly,
a growing number of banks are considering replacing existing core systems with next-
generation vendor solutions. However, replacing this complex web of applications with
new core banking solution is not a straightforward task of merely switching off an old
system and turning on the new one. Apart from the fundamental need to meet functional
requirements, the data from old systems needs to be cleansed, transformed and then
migrated to the new system. Processes driven by older applications too need to be
changed and users need to be re-trained on the new application and processes (Finacle
2005).
2.2.6 Types of Core Banking Services
1. Electronic money
Electronic money involves the use of internet or other networks to store or transmit
money. This type of money can be stored on smart cards or computers hardware.
Electronic money falls into different types as follows: electronic card, electronic wallet,
electronic check, digital money, and virtual card (Maleki&Akbari, 2010).
2. Automated Teller Machines (ATMs)
It is an electronic terminal which gives consumers the opportunity to get banking service
at almost any time. An ATM combines a computer terminal, record keeping system, and
cash vault in one unit, permitting customers to enter a financial firm`s bookkeeping
system with either a plastic card containing a personal identification number (PIN) or by
punching a special code number into a computer terminal linked to the financial firm`s
computerized records 24 hours a day. Once access is gained into the system, cash
withdrawals may be made up to pre specified limits, and deposits, balance enquiries, and
bill paying may take place, (Alagheband, 2006).
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3. Point-of-Sale Transfer Terminals (POS)
Computer facilities in stores that permit a customer to instantly pay for goods and
services electronically by deducting the cost of each purchase directly from his or her
account are known as Point-of-Sale (POS) Terminals. The customer presents an encoded
debit card to the store clerk who inserts it into a computer terminal connected to the
financial firm`s computer system. The customer`s account is charged for the purchase
and funds are automatically transferred to the store`s deposit account (Alagheband,
2006).
4. Internet Banking
It is an electronic home banking system using web technology in which Bank customers
are able to conduct their business transactions with the bank through personal computers.
Use of internet to carryout financial transactions is certainly one of the most promising
avenues today for linking customers with financial service providers.
5. Automated Limited – service facilities
Even though full service branches still represent a very important channel through which
financial firms communicate with their customers, electronic facilities and systems
represent the most rapidly growing firm-customer link today. In truth, the most effective
service delivery systems in use today appear to be multichannel-combining full service
branches and electronic, limited service facilities within the same financial firm
(Alagheband, 2006).
6. Mobile Banking and call centers
Mobile banking is a service that enables customers to conduct some banking services
such as account inquiry and funds transfer, by using of short text message (SMS). As
more cell phones appear and are linked technologically with the internet and with credit
and debit card accounts, the cell phone literally becomes a ―Portable Bank‖ (Alagheband,
2006).
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Furthermore, by combining cell networks with the power of the internet to convey vast
amounts of information at high speed, the cell phone and text messaging technology seem
to offer the potential to promote worldwide use of debit and credit card accounts and
make purchases and payments from anywhere on the globe (Alagheband, 2006).
Call centers focus is to assist their customers in obtaining account information and
carrying out transactions, avoiding walking or driving to a branch office or ATM.
Increasingly, call centers are being used not only to answer customer`s questions, but also
to cross sell services and build customer relationships (Ibid, 2006).
2.2.7 Benefits of Core Banking System Implementation
The major factor that determines project success and failure is return on investment
(ROI) which can be generated from the implemented system. Satchidananda (2006)
assesses the benefit from implementation of core banking solutions, which could be
divided into two broad areas such as economic benefit sand performance benefits.
Economic Benefits
The cost savings from core banking projects are visible over a period of many years from
implementation. The high investment cost and time to market new product and services
are the factors to consider. The ROI compounds, as new lines of business and geographic
areas move on to the new platform. The return of investment is slow in the first few years
till such time the real benefits of the system commence accruing to the bank. The
research reports indicated that large core banking replacement projects enter a positive
Net Present Value(NPV) as late as the 5ththyear (Satchidananda, 2006). The expected
lower transaction processing costs within the branch and through other delivery channels
could increase returns. The reduction in license fees related to other software with the
implementation of a new CBS, which reduce the complexity would constitute as savings
for the bank almost immediately. The reduced maintenance costs and flexibility in
customizations make it easy for the bank to build the systems to suite their specific
requirements in a lesser time.
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Efficient usage of hardware resources by the new CBS significantly reduces the
investment in hardware as well as its maintenance cost.
Performance Benefits
The banks also implement CBS to meet its business objectives. The inflexibility more
often tends to create an impediment in building new functionality, eliciting data for newer
regulations like the BASEL II, accessing better information on customer so as to enable
risk management, cross selling, addition of newer business lines, offering new products
in the existing business lines and so on. New generation core systems provide flexibility
in terms of being modular in nature and supporting an integration layer, which can be
used very effectively to connect on to third party applications (Vendor Report 2012). The
customer is a key factor for banks; new solutions tend to give a complete 360 degree
view of the customer transactions. Satchidananda (2006) explore the objective of new
core banking solution to obtain complete perspective of the customer relationship with
the bank. This would enable banks many cross selling opportunities. Some of the core
systems use data mining tools to harvest useful information from customer transactions
and try to get a meaningful message out of that. The most transactions done in the newer
core banking solutions are on-line real time not only within the package itself, but across
all delivery channels. (Infosys et al 2009/10).The automation of processing the
transactions through Straight-Through-Processing (STP) has been used so often with new
implementations, which enable banks to bringing in the operational efficiencies and
reduces the risks. The research reports indicated that the percentage of global trade
failures and crystallized transactions resulting from unmatched trade data is of the order
of around 15% of the total trades (Satchidananda, 2006). The STP technology framework
seeks to provide these efficiencies by providing a seamless data flow both within the
enterprise as well as across the market, without any manual intervention.
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2.2.8 Core Banking Solution implementation project Success
Any typical project related to acquiring a software system involves two phases namely;
software selection and implementation of the selected software. Selection of appropriate
software matching the organizational goals and aspirations are an important aspect of the
selection process, as failure in this phase alone could affect the success of the project.
Evaluating the software to suit the organizational requirement is another key aspect in the
selection phase. The implementation strategy is largely dependent on the Software
selected and the capabilities of the vendor. A research on critical success factors in
implementing Core Banking Systems Hettiarachchi ( 2009) identified the following
CSF's related to CBS implementation process: Setting Direction, Project Sponsorship,
Transparency, Prioritizing Deliveries, Creative Problem Solving, Competence Project
Team, Professional Project Manager, Dedicated Resources, Vendor Commitment, and
Knowledge Transfer.
Some of the CSF mentioned in literature by Somers and Nelson (2001) include: Top
Management Support, Project Team Competence, Interdepartmental Co-operation, Clear
Goals and Objectives, Project Management, Inter-departmental Communication,
Management of Expectations, Project Champion, Vendor Support, Careful Package
Selection, Data Analysis and Conversion, Dedicated Resources, Steering Committee,
User Training, Education on New Bus. Processes, Business Process Re-engineering,
Minimal Customization, Architecture Choices, Change Management, Vendor
Partnership, Vendor Tools, Use of Consultants.
2.2.9 Challenges of CBS implementation
It is obvious that there are challenges in any type of project implementation. Banks need
to focus on key factors, which make the core banking transformation a successful
experience. Broadly speaking, the key challenges in core banking transformation are:
Vendor capabilities and credentials, dependence on legacy/vendor applications and
impact on envisioned technology architecture, as well as Bank‘s business goals and
alignment to leverage the new technology (Finacle 2010).
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2.3. Empirical Review of the literature
2.3.1Factors affecting the project success
The success of a project and the factors that affect this success are considered in various
ways by different scholars. According to Mohamed (1999), good schedules and correctly
utilized budget will not matter if the final expectations and goals are not met.
Kerzer(1987) the success of project can be measured by managing excellence
consistently. The project success factors in the area of project management clearly
identified by Schultz, et al (1987).
The authors classified the factors as strategic and tactical. The strategic group consists of
project mission, top management support and project scheduling and the tactical are
client consulting, human resource selection and personnel training. Pinto and Slevin (as
cited in Chege, 2012) had made an important research on the project success factors.
These authors mention most important success factors like top management support,
client consultation, personnel recruitment, technical tasks, client acceptance, monitoring
and feedback, communication, trouble shouting, character of the project team leader,
power and politics, environment events and urgency. On the other hand, according to
Munns and Bjeirmi(1996) the project success or failure can be measured by inadequate
basis for the project, wrong person as a project manager, top management unsupportive,
inadequately defined tasks, lack of project management techniques, management
techniques misused, project closedown not planned, lack of commitment to project. More
importantly, Hastie (2006) sates that in order to be successful project there should be risk
management from inception to execution of the project.
The study is focused on four factors identified by Schultz et al(1987)which were assumed
to be most important influential factors in banks in Ethiopia; project manager
competency, top management support, risk management and organizational objectives.
17
i. Project Manager Competency as a project success factor
Some authors‘ focuses on the success of project can be achieved by recruiting competent
project manager. Project manager who have skill and experience will increase
productivity yield greater than on investment, increases profit and improve customer
satisfaction (Munns and Bjeirmi, 1996).
The project manager is the central figure in accomplishing project success and the most
important factor in successful project management (Lei and Skitmae, 2004).According to
Nicholas (as cited in Lei and Skitmae, 2004) with the role of project manager being so
central that ‗without it there would not even be project management-the project manager
being the glue holding the project together and the mover and shaker spurring it on‘. This
involves project managers possessing a wide variety of skills (Kezsbom, 1989, P.183)
related to the standard objectives of project completion with in a set specification under
time, cost and quality constraints.According to Turner and Muller (2005), project success
can depend on the leader ship style, personality and competency of the project manager.
ii. Top management support as a project success factor
The outcomes of the project management are many. The most important one is top
management support. According to IBM (2000) most failed projects are the result of lack
of top management support. The importance of top management support has long been
recognized in the Information system literature (Gattity, 1963). Nonetheless, practioners
and researchers alike, have focused their attention on factors they can more directly
control (Schmidt, 2001). The importance of top management support are not well
developed (Tzu, 1987). Some impose very demanding requirements for top management
resources simply to improve technical quality or user satisfaction (Brandon, 1970), goals
of little direct interest to top managers. Other good communication, interest, involvement
and participation appear to be little impact on projects (Mahnig, 2002). Top management
support is generally promoted as being inherently good but there is clear evidence that
too much top management support can be dysfunctional and lead to failure (Collins and
Bicknell, 1997). As a result, the advice for top managers lacks credibility. However, few
18
would doubt the need for top management support (Markus, 1981) and top management
support is consistently recognized as a critical success factor (Schmidt, 2001).
iii. Risk management as a project success factor
A project is a unique thing which is totally depends on time, cost and customer
satisfaction Kahneman and Tversky (as cited in Otieno, 2013). Proactive risk
management is a key to success. According to Schwable (as cited in Otieno, 2013), risk
identification process begins by reviewing the project documentation, most recent and
historical information. As it has been stated (Otieno, 2013) risk analysis is includes
analyzing the risk and measuring its vulnerability and its impact. A project sponsor and
manager in collaboration can implement risk controlling techniques (Ritter, as cited in
Otieno, 2013). According to Ritter, risk can be analyzed in two ways: first brains storm
the probable risks and secondly do sensitivity analysis.
iv. Organizational objectives as a project success factor
Without a clear objectives the project can be failed (Kastner, as cited in Chege, 2014)
successful project manager should know the business objectives and where to start and
where to end. According to the author, clear business objectives articulated at the
beginning of the project help to focus and prioritize solutions whilst guiding problem
solving and decision making throughout the duration of the project and help measure the
project for completion towards the tail end.
According to Munns and Bjeirmi, (1996) the narrow definition of tasks in successful
project management provides an indicator of why project management success and
project success are not directly correlated. A shorter project duration will probability of
failure and the longer duration the outcome could be success, because the larger set of
objectives are satisfied instead of the narrow subset which constituents project
management.
19
2.4 Conceptual framework of the study
A conceptual framework is a set of broad ideas and principles taken from relevant fields
of enquiry and used to structure a subsequent presentation (Kombo and Tromp, 2009).
Based on many related literature reviews, the conceptual framework of this study is
determinants critical success factors of core banking solution implementation project
such as project management, top management support, risk management, end users
training, effective communication vender commitment and monitoring.
Competent Project
Manager Risk
Top
Management
Management
support
Critical Success Factors of

CBS Implementation
End user
Project Monitoring
Training
Communication Vendor commitment
Figure 2.2 conceptualization of that Critical success factors in Core Banking System
implementation project.
20
CHAPTER THREE
Research Design and Methodology
Introduction
There is no general agreement on research design and methodology. There is no single

blueprint for planning research. Research design is governed by the notion of fitness for
purpose. The purposes of the research determine the methodology and design (Cohen,
Manion, and Morrison, 2000). This implies that researchers plan, design and approach a
given research problem in different ways in order to achieve the research objective and
answer the research question.
The next section discusses the research design and methodology that was used to achieve
the objective of the study. Research design, sample and sampling technique, source and
tools /instrument of data collection, procedure of data collection, validity and reliability
of the data collection instruments and method of data analysis will be presented as
follows.
3.1Research Design
In this study the researcher preferred and employed descriptive research method which
qualifies and makes use of qualitative data. Descriptive research involves gathering data
that describe events and then organizes, tabulates, depicts, and describes the data
collection (Glass & Hopkins, 1984). While describing the collected data the visual aids
such as graphs and charts are used so as to make the reader understand the data.
In spite of the fact that, the reader‘s mind inability to interpret and analyze a large mass
of raw data, employment of a descriptive statistics methodology is very important in
reducing the data to manageable form.
21
In the course of conducting this research the data type and data collection designs is taken
on multiple stages based on the nature of the data that needs to be collected as primary
and secondary. For the purpose of this study primary data collection instruments:
questionnaires and interviews were undertaken to solidify end result. After collecting the
relevant data from the respondents, the questionnaires analyzed with the help of tables
and graphs. Apart from the questionnaire, interview conducted with the project manager
and team leaders of both technical and business team. Interestingly, the interview
ascertained and enabled the constructive and negative implementation experience faced
by the bank to correct or address the inequities in the course of the interview. On the
other hand, throughout the data collection stages secondary data were found to be
integrals.
3.2Sample and Sampling Techniques
Target populations of the study were all Core Banking Solution project implementation
team members of commercial bank of Ethiopia and Addis Ababa City Branch managers
of the bank. The researcher purposely selected CBS project implementation team because
most of the team members involved the implementation project from inception to
execution. Further branch managers were targeted because they are senior managers of
the bank in decision making.
Polit and Hungler (1995) refer to the population as an aggregate or totality of all objects,
subjects or members that confirm to a set of specifications. The process of selecting a
portion of the population to represent the entire population is known as sampling. The
target populations for the study were all CBS project implementation team members
including project manager, team leaders of both business team technical team and branch
managers at selected Addis Ababa city branches of Commercial Bank of Ethiopia.
Sampling techniques can be classified into probability and non-probability sampling.

Probability sampling involves random selection while non - probability sampling does
not. Purposive sampling or judgmental sampling is a non-probability sampling method
that basically allows a researcher to select cases that are best suited to answer the
research questions (Kalbasi, 2011). This form of sampling is often used when working
22
with small samples, especially in a case study when a researcher is looking for cases that
are particularly informative. Parahoo (2006) describes purposive sampling as a method
of sampling where the researcher deliberately chooses who to include in the study based
on their ability to provide necessary data. The rationale for choosing this approach was
when the researcher seeking knowledge about CBS which participants would provide by
virtue of their knowledge.
In this particular study, two sampling techniques were used: probability and non-
probability (purposive) sampling. The interviewees were selected based on purposive
sampling of the researcher‘s subjective judgment which considers that the selectee gave
first-hand information without any problem. The study employed this type of sampling
for the project manager at PMO and team leaders of both technical and business team of
CBS project implementation.
23
Table 3.1: Target population
s.no CBS implementation Team leaders Project team Total
team members of/director CBS members
implementation involved in CBS
project implementation
I
1 Project Director 1 2 3
2 Business Team 6 20 26
3 Technical Team 4 10 14
4 Data migration Team 1 18 19
5 Infrastructure team 1 12 13
6 Rollout /UAT team 1 21 22
Total Project members 14 83 97
II
1 Branch Managers of City 193
Branches of CBE
Many researchers have suggested that for a good outcome to be obtained extracting large
number of population is necessary; however, due to limited number of participants in the
core banking solutions projects, the sample was limited members whom participated in
the Core Banking Solutions. Thus, due to the above mentioned facts almost all (97)
participants of CBS Project implementation team were included in the sample data.
Further, the study employed probability sampling for Branch Managers of Addis Ababa
City branches of Commercial Bank of Ethiopia.
The study used the sample size, formula developed by Taro Yamane (1967) that was
provided a simplified formula to calculate sample sizes. This formula was also used to
calculate the sample size.
24
Where n= the sample size
N= the size of the population
And e=the error of 5 percentage points
A sample of one hundred thirty members from the branch manager were taken as
representative sample and given questionnaires in addition to ninety Seven participants of
CBS implementation project. This resulted in a total of 227 questionnaires that were
distributed to the selected target population.
Table 3.2: Strata (subgroups) for Random Sampling
Districts No. of Branches

1 Easter District of Addis Ababa city Branch of CBE 34
2 Western District of Addis Ababa city Branch of CBE 30
3 Northern District of Addis Ababa city Branch of CBE 37
4 Sothern District of Addis Ababa city Branch of CBE 29
Total 130
3.3 Source and Instruments of Data Collection
The study employed both primary and secondary data sources. As a primary sources, the
researcher got data from original sources by means of interview and serving
questionnaires. Moreover, secondary data used to interpret and analyze the primary
sources.
As explained above participants on this study approached and be highlighted about the
objective of the research so that they willingly involve both in the interview and
questionnaire. The objective of the research is to gather information about critical success
factors in implementing CBSproject of commercial bank of Ethiopia in particular.
Generally the survey conducted in the following ways:-
25
Questionnaires
Questionnaire distributed for employee has two parts. The first part aimed at the
collection of demographic information of the participants. The second part used five
point Likert scale to measure critical success factors in CBS implementation project
Interview
In-depth interview conducted using semi-structured interview questions with the key
CBS implementation participants‘ project director and, team leaders of business team and
technical team.
Secondary data
Secondary data also collected through desk research to clarify most of the issues. Books,
journals, research papers reports and websites also used to carry out the study.
3.3Procedures of Data Collection
As mentioned above the assessment consisted of three major instruments:-
Firstly, the study collected data from respondents by classifying the questionnaires in to
two parts:
 The first part is devoted to demographic data.
 The second part is dedicated with CBS implementation success trends in Banks.
Accordingly, the researcher has chosen this method by assuming that this method is cost
effective since data are easily be analyzed, respondents are familiar to the method, it
reduces bias since similar questions are distributed to each participant and unlike
telephone and face-to face interview there are no interferences.
Secondly, Secondary data collection as indicated by Natalie Koziol, MA & Ann Arthur,
―access to historical data would take several years and millions of dollars to collect‖.
Accordingly, the researcher plan to collect secondary data from books, journals annual
reports, NBE reports and websites of the bank.
26
Thirdly, Interviews were considered as chosen instrument incase respondents
misunderstands relevant questionnaires. Accordingly, relevant discussions will be made
with the bank‘s key personnel, project Managers, Business and Technical team face to
face through open ended questions.
3.5 Validity and Reliability of the Data Collection Instruments

In order to ensure validity and reliability, the questionnaire were carefully constructed
avoiding ambiguity. The questionnaires of the study were reviewed and commented and
discussion by two randomly selected senior managers, who worked as core banking
software implementation team leaders, friends and suggestion of my thesis advisor too. In
order to assess the reliability and consistency of the instrument the Cronbach‟s Alpha
was used and the result of the test was 0.808. Further, pilot test was conducted using
some sort of the questionnaires during the development stage to ensure the internal
consistency of the instrument.
3.6 Methods of Data Analysis
The data analyzed using descriptive statistics method. The study has described the data
collected from each respondent. The responses of each respondent coded from 1 up to 5
depending of the importance of each skill. For the purpose of data analysis success
factors carrying an average of four and above would be considered are critical success
factors. The code for all surveys items in the same category are summed up for a
composite score. Later on these scores is going to be applied for statistical analysis based
on SPSS Software version 20. The study‘s frequency distribution, graphs and percentages
used and finally the findings drawn.
3.7 Ethical Research Considerations
According to Saunders et al.(2009), research ethics refers to the appropriate behavior of

the researcher concerning to the rights of those who become the subjects of the work or
affected by the work. Thus the researcher sought the respondents‘ informed consent,
27
respecting the confidentiality and anonymity of respondents; and ensured that all the
participants participated in the study voluntarily.
28
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1. Introduction
The previous chapter discussed the research design and methodology used to conduct the
study. In this chapter, the result of questionnaire distributed to Core Banking Solution
implementation project team and branch Managers of CBE Addis Ababa City Branches
and interview response obtained from project Managers at Project Management Office
(PMO) and team leaders of both business team and technical team of CBS
implementation of project at Commercial Bank of Ethiopia are presented. The study
attempted to assess critical success factors in implementing Core Banking Solution
implementation project at commercial Bank of Ethiopia.
The chapter has four sections. The first section of the chapter deals with the general
profile of respondents. The first section presents success measurement criteria of the CBS
implementation project the third section presents analysis of critical success factors of
CBS implementation project. And the last section of this chapter presents discussion of
the findings.
In order to determine the critical Success Factors of CBS project implementation a total
of 227 questioners were distributed. Out of a total, 97 questioners were distributed to
CBS implementation project team and the remaining 130 branch managers of Addis
Ababa City Branch of commercial Bank of Ethiopia. The response 179 (78.85%)
questionnaires were obtained valid and used for analysis. To assess critical success
factors of CBS implementation project at CBE.
29
Table 4.1: Rate of Responses by Respondents
CBS project Branch Managers Total
implementation Team
Questioners Respondents Valid Respondents Valid Num. %
percentage percentage
Returned 77 79% 102 78.45 179 78.85%
Not-returned 20 21% 28 21.55 48 21.15%
Total 97 100% 130 100% 227 100%
Source: Survey result (2016)
4.2 General Profile of Respondents
The first part of the questionnaire includes 6 relevant questions for the research topic.
These includes: the respondents‘ role in CBS project implementation of Commercial
Bank of Ethiopia, their, educational qualification and number of years served in the bank,
success measurement criteria. In the second part of the questioner, the respondents were
asked the role of project management, top management support, vendor‘s commitment
and support, end users training, analysis of risk factors and the importance of monitoring
in successful implementation of IT project. These questions were asked to find out the
critical success factors of CBS implementation project.
4.2.1 Gender Distribution
The demographic statistics shown in table 4.2 show the distribution of respondents by
gender.17.9% of the respondents were females while the remaining were male. Majority
of the respondents compromised of males. Participants were asked to indicate their
gender by selecting the appropriate option provided (male or female).
30
RESPONSE RATE BY GENDER
RESPONSE RATE BY GENDER
82.10%
17.90%
MALE
FEMALE
Figure 4.1above summarizes the gender distribution of the respondents. Clearly this
indicates that the sample population was dominated by male respondents
4.2.2 Age Distribution of the respondents
Considering the age groups of the respondents, the higher number of respondents was in
the range of 29-38 years, which represent 59.8%, followed by age groups of 39 and above
which represent 31.3% and the rest 8.9% are in the range of 19-28 years (Table 4.2). This
indicated that most of the respondents were between the age of 29 and 38.
31
Table 4.2 Response rate by age group
Attribute Frequency Percent Valid Percent Cumulative

Percent
19-28 16 8.9 8.9 8.9
29-38 107 59.8 59.8 68.7
Valid
39 OR ABOVE 56 31.3 31.3 100.0
Total 179 100.0 100.0
4.2.3 Educational Background of the Respondents
From the analysis on educational background of respondents, it was found that 8

respondents (4.5%) have Junior College Diploma, 64 respondents (35.8%) are
undergraduate degree, and the rest 107 respondents (59%) have graduate degree
/masters and above. This profile shows that majority of the respondents have graduate
degree /masters and above.
Table 4.3Educational Background of respondents

Educational background Frequency Percent Valid Percent Cumulative
Percent
Junior college diploma 8 4.5 4.5 4.5
Under Graduate Degree 64 35.8 35.8 40.2
Valid Graduate degree /Masters
107 59.8 59.8 100.0
or above
Total 179 100.0 100.0
Source: Survey result ( 2016)
32
4.2.4 Role of Respondents
The respondents were categorized as; Project Manager, team leaders and the team
members based on the roles played by them in relation to the CBS project and at the
bank. Table 4.4 illustrates role of respondents in CBS implementation and role in the
bank. as can be seen in the following table most of the respondents 57.0% were senior
management staffs of the bank the rest 43 % were Core Banking Solution implementation
team leaders and team members.
4.4 Role of Respondents in core banking implementation project/at the bank
Attribute Frequency Percent Valid Percent Cumulative

Percent
Project director 1 .6 .6 .6
UAT team 18 10.1 10.1 10.6
Branch Manager 102 57.0 57.0 67.6
Team leader 12 6.7 6.7 74.3
Valid Business team 19 10.6 10.6 84.9
Technical team 11 6.1 6.1 91.1
Data migration
16 8.9 8.9 100.0
Team
Total 179 100.0 100.0

4.2.5 Experience of Respondents at the bank
33
The below table illustrates the distribution of respondents based on levels of experience
in the banking sector. The study chose to consider respondent's level of experience in the
banking sector, which is vital towards knowledge of banking operations and CBS. Above
97% of the respondents have 5 years and above experience at the bank the rest 2.8 % of
the respondents have 3-5 years of banking experience. Clearly this indicates that majority
of the respondents possessed over 5 years of experience in the banking sector hence more
accuracy and validity of the research data.
Fig. 4.2summarizes responses to the survey questionnaire based on levels of experience

in the banking sector.
Work experience of respondents at the bank

Work experience of respondents at the bank
100 97.2
50
2.8
3-5 years
5 years and above
4.3 Factors in Measuring Success of CBS Implementation Project
Majority of respondents in two categories, including CBS implementation project team

and branch manager. consider― Improved Efficiency‖ as the single most important factor
and ―End User Satisfaction‖ as the next most important factor in determining the success
of a CBS Project, third most important factor in determining the success being ―Reduced
34
Complexity of Operation‖. These factors fall within the expected end- result of the
project and are qualitative and difficult to measure. In contrast, factors such as ―Timely
Implementation‖, ―Implementation within Budgets‖ and ―Low Cost of Ownership‖ are
easily measurable. The results show a clear deviation from generally accepted
measurements of success of a project, which are achieving project goals, within agreed
time and budgets. Only 4 respondents out of 179 replayed implementation with in a
budget is the most important factor which is about 2% of the respondents and 9 (5.04%)
respondents out of 179 replayed timely implementation. and 2 (1.12%) of respondents
choose low cost of ownership.
Generally, the role of a typical project manager is to complete the project meeting project
objectives, within the budget, within the agreed time within the scope of the project.
(PMBK, 2004) surprisingly, project manager and most team leaders have failed to
appreciate these factors as the project success measurements. Instead, they have indicated
achieving the business objectives of the project such as improved efficiency, end-user
satisfaction and reduced complexity of operations as the factors measuring the success of
the project. Possibly, this is due to project manager and team leaders of the
implementation project not being professional project manager, but senior employees of
the bank. As a result, they may not be concentrating on project management principles.
Furthermore, they may not have been able to make decisions independently and may
have been subjected to influences from various stake-holders in the project such as Senior
Managers or business users etc. Such influences may have led to change of project scope
due to subsequent ―scope creep‖ and resource allocation issues, which could
consequently lead to budget & time overrun. It appears that such overruns are not
seriously considered by the bank as long as the project objectives are achieved.
During the interview conducted with the team leaders of CBS implementation project
some team leaders indicated successmeasurement criteria such as completion of the
project with in specified time or slight variation, Completion within budget or with slight
variation and Timely completion of the project with respect to plan (minimal delays).
35
Table 4.5: Factors in Measuring Success of a CBS Implementation Project
Categories of Criteria for the measurement of 1st 2nd 3rd Tota %

Respondents CBS Project Success Rank Rank Rank l
CBE CBS Improved efficiency 28 28 15.65%
implementat End users satisfaction 27 27 15.08%
ion team Reduce Complexity of Operation 20 20 11.17%
Timely Implementation 9 9 5.04%
Implementing within the Budget
Low Cost of Ownership 2 2 1.12%
Others
Branch Improved efficiency 36 36 20.12%
Managers End users satisfaction 27 27 15.08%
Reduce Complexity of Operation 26 26 14.54%
Timely Implementation
Implementing within the Budget 4 4 2.23%
Low Cost of Ownership
Others
Total 179 100%
Source: Survey result November 2016
4.4. Descriptive Analysis of Data Collected
4.4.1 Analysis of Success factors Related to Project Management
Questions 1, 2, 3, 4, and 6 of section II were designed to identify importance of success

factors related to Project Management during CBS project implementation process.
Project Management is a key aspect of CBS implementation process. As indicated in the
following table out of the five success factors, the respondents selected four as critical
success factors related to Project Management during the implementation of CBS project.
The respondents identified Assigning dedicated, Skilled and experienced project
manager, the leadership style of project manager and dedicated project team and
36
dedicated project resource at the mean value of 4.64, 4.51, 4.49 and 4.46 respectively.
Prioritizing delivery of business requirements based on project timing was failed to
identify as critical success factor.
Based on the below table it can be interpreted that, Assigning dedicated, skilled and
experienced project manager, the leadership style of project manager, dedicated project
team, dedicated resource and Prioritizing delivery of business requirements based on
project timing and completing the project within the scheduled time and within the
budget are the responsibilities of a project manager. Project Management in a CBS
implementation is a complex task, a full time job requiring a professional project
manager and Akkermans and Helden (2002), in their research have identified the
importance of experienced full time project managers for the success of IT projects. The
respondents in this research too have identified a Full time, Experienced Project Manager
as a CSF for the CBS Implementation process.
Having dedicated project team members would be extremely useful during the
implementation stage of the selected CBS. Bates (2004), Bhatti (2005), and Akkermans
and Heldon (2002) have indicated that competent project team and dedicated Resources
as CSFs for IT projects. Respondents in this research seem to have appreciated these
factors as they have selected Competent Project Team, Dedicated Resources as CSFs
contributing for the success of CBS implementation projects. If the resources were
dedicated to the project, they would be committed to the project and their only interest
would be to complete the project successfully. Further, their performance evaluations
would be directly linked to their performance in the project, which will motivate them to
complete the project successfully.
37
Table 4.6Analysis of Success factors Related to Project Management
Attribute N Minimum Maximum Mean Std.
Deviation
Professional project
179 1 5 4.64 .878
manager.
The leadership style of
179 1 5 4.51 .889
project manager
Dedicated project team 179 1 5 4.49 .889
Dedicated resource 179 1 5 4.46 .843
Prioritizing delivery of
business requirements 179 1 5 3.65 .864
based on project timing
Valid N (listwise) 179
4.4.2 Analysis of Success factors Related to Top Management Support
There were three questions related to Top Management Support. Part II Question, 5,7 and
9 were designed to ascertain the response of the population on success factors, which
were designed to identify the level of top management Support required during the CBS
implementation processes. As indicated in the below mentioned table top management
support (setting direction) is identified as critical success factor whereas, undue influence
and interference of top management and adopting the system with minimum
customization fail to identified as critical success factors.
Based on Table 4.9 it can be interpreted that, top management support in setting direction
during implementation of the CBS project is important. Akkermans and Helden (2002)
has also identified Top Management Support as a CSF for ERP projects.
38
Table 4.7 Top Management support
Attribute N Mini Maximu Mean Std.

mu m Deviation
m
Top Management
179 1 5 4.13 1.006
support
Undue influences or
interference of top 179 3 5 3.87 .654
management
Adopting the proposed
system with minimum 179 1 5 3.58 .964
customization
4.4.3 Analysis of Success factors Related to Effective Communications
Question 11 and 12 of section II of the questionnaire were intended to identify the

importance of having Effective Communication during a CBS project implementation to
keep stakeholders up to date with project information throughout the project to minimize,
if not eliminate possible, miscommunications, misunderstandings and conflicts among
the stakeholders of the project. Effective communication among stakeholders of the
project is identified as critical success factor with the mean value of 4.24
39
Table 4.8 Analysis related to effective communication
Deviation
Effective communication
between stakeholders of the 179 1 5 4.24 .985
project
Akkermans and Helden (2002), and Bhatti (2005) have indicated efficient
communication between the stakeholders as a critical success factor for ERP projects.
The respondents in this research have validated the importance of this as a CSF for CBS
projects as well. Effective communication between all stakeholders is important for the
transparency of decisions and using appropriate medium of communication is important
as well. Effective communication reduces the misunderstanding between the
stakeholders. Project Manager takes the center stage in disseminating required
information to the stakeholders via various meetings and reports. It is important to have a
single source for the purpose of project communication during implementation of CBS
project.
4.4.4 Analysis of Success factors Related to Vendor Commitment
Vendor support and commitment is one of the most important factors to complete
implementation of CBS project successfully Question no. 15 and 16 of section II of the
questionnaire designed to identify the critical success factors related to vendor support
and commitment. Table 4.9 is representation of the responses to the success factors by the
respondents. Both vendor support and commitment and knowledge transfer are identified
by respondents as critical success factor during CBS implementation with the mean value
or 4.12 and 4.23 respectively.
40
Table 4.11 Analysis of success factor related to vendor support and commitment
Deviation
Vendor support and
179 2 5 4.12 .692
commitment
Knowledge transfer 179 1 5 4.23 .900
Based on the above table it can be interpreted that vendor support and commitment and
knowledge transfer are the critical success factors in implementing CBS at commercial
Bank of Ethiopia. Somers and Nelson, (2001) and Akkermans and Helden (2002) in
their research have identified vendor support and commitment as a CSF for the success of
ERP projects. End users training in knowledge transfer by vendor to the selective trainers
who in turn would train the end users. Transferring knowledge to the end user is critical
in implementing CBS projects successfully.
4.4.5 Analysis of Success factors Related to Risk Management
Questions 13 and 14 of section II were designed to identify the critical success factors
related to the analysis of risk during the CBS implementation process. Risk analysis is
not identified as critical success factor with the mean value of 3.94. The interview result
revealed that, proper risk analysis was not done before the project implementation there
was only proactive response to the risk when it happened. The problem occurred during
implementation most of the business and technical teams resigned because the market
needs their skill. Schultz, Slevin and Pinto (1987) clearly identified analysis of risk for
successful implementation of the project. However, this study failed to identify analysis
of the risk as critical success factor for successful completion of the CBS project.
41
Table 4.10 analysis related to risk analysis

Deviation
Proper analysis of risk
on implementing is 179 1 5 3.94 .940
Core Banking
179
4.4.6 Analysis of Success factors Related to Monitoring
In any project activity monitoring is an important factor to complete the project with in
the agreed time scope and budget as the intended objective of the bank. There were two
questions designed in the questionnaire section II question no.8 and 10: top management
guidance and supervision by the board during CBS implementation project.
Table 4.11 Success factors related to monitoring
Attribute N Minimum Maximu Mean Std.

m Deviation
Monitoring the progress
of the project by the 179 1 5 4.56 .841
Board of Directors.
Top management
179 1 5 4.22 .901
guidance.
As it is indicated in the above table 4.11 Both guidance of top management and
monitoring the progress by the Board of Directors were identified as critical success
42
factors in implementation of CBS project with the mean value 4.22 and 4.56
respectively.Bhati, (2005) and, Akkermans&Helden (2002) are identified top
management guidance and monitoring as critical success factors in implementation
project.
4.5 Discussion o of Major Findings
This section presents the discussion of results drawn from the data analysis. Discussion
involves CBS implementation processes success measurement criteria and critical
success factors identified in previous section.
4.5.1 Project Success Measurement Criteria
The primary goal of any IT projects would be to meet the business objectives
byimplementing a suitable software package. Bhatti (2005), Somers and Nelson (2001)
havementioned in their research work the importance of having clear success
measurementcriteria to evaluate success of IT projects. Project Management Body of
Knowledge (2004)indicates that completion of a project achieving project objectives and
goals within theagreed time frame, and within the budgets at the successful completion of
the project. Thepossible reasons for the change of success measurement criteria would be
the cultural issues,resistant to change, regulatory requirements, local business practices
and unique operationalprocedures in the banks.
The research outcome related to measurement of success of a project differs from that in
relation to the definition in the PMBOK and the theories of other researchers.In excess of
91% of the respondents have identified Improved Efficiency, End User Satisfaction, and
Reduction of Operational Complexity as the three main factors in measuring success of
aproject which are more or less related to organizational objectives expected out of
theproject. The research outcome shows that the identified success measurement criteria
are more or lessrelated to the project objectives. It is difficult to measure the extent of
achievement as theyare more or less qualitative and perceptive.
43
Project quality is affected bymanaging these three factors namely complete the project
within the project scope, time and budget. High quality projects deliver the required
product, service orresult within scope on-time and within budget. The relationship of
these factors is such that ifany one of these factor changes, at least one of other factor is
likely to be affected. Most of the respondents failed to identify this ―Triple Constraint‖ to
be thesuccess measurement of CBS projects. This may be due to their not being
professionalproject managers or their inexperience in managing IT projects.
There is a strong possibility of appointing a senior member of the Bank, who is not a
professional project manager or team leaders to manage CBS projects on behalf of the
bank. As a result, they fail to appreciate importance of the real project management and
may be subject to influences from various stake holders of the project hence not
adequately independent to make right decisions. This is further confirmed by the
similarity of thinking patterns of the Project Managers and the patterns of senior
managers and team Members.
As a results of not identifying completion of the project within the agreed time frame and
completion of the project within the budgets as a criterion for measuring success of the
project may result in time and cost overruns, tying-up business resources for long
durations than anticipated and vendor losing interest in the project. This could be a result
of concentrating more on factors such as user satisfaction, improved efficiency and
reduced complexity, which may result in scope-creep leading to extension of project
duration. As a result, cost overrun too would take place, not to mention the opportunity
cost associated with delays.
44
4.5.2 Critical Success Factors of core banking solution implementation projects
Project Management
Project Management in a CBS implementation is a complex task, a full time job requiring
a professional project manager.Fortune and White (2002), and Akkermans and Helden
(2002), in their research haveidentified the importance of experienced full time project
managers for the success of IT projects.
The respondents in this research too have identified a Full time, Experienced Project
Manager as a CSF for the CBS Implementationprocess.Respondents inthis research seem
to have appreciated these factors as they have selected Competent ProjectTeam,
Dedicated Resources, and the leadership style of project manager as CSFs contributing
for the success of CBS projects. If the resources were dedicatedto the project, they would
be committed to the project and their only interest would be tocomplete the project
successfully.
Top Management Support
Akkermans and Helden (2002) has identified Top Management Support as a CSF for
ERP projects. Many other researchers including Bhatti, (2005), Somers and Nelson
(2001),Ramkumar (2004), Lewis (2003), and Sirivastava (2003) have identified the
importance of Top Management Support for the success of software projects. Both
categories of respondents indicated as critical success factors.
Effective Communication
Effective communication among stakeholders of the implementation project is useful in

any project. Bhatti (2005) have indicated efficient communication between the
stakeholders as a critical success factor for ERP projects. The respondents in this research
have validated the importance of this as a CSF for CBS projects as well.
Effective communication between the stakeholders is important for the transparency of

decisions as well as to synchronize the stakeholders with respect to their expectations.it
also reduces the misunderstanding between the stakeholders, hence disputes. Project
45
Manager takes the center stage in disseminating required information to the stakeholders
via various meetings and reports. It is important to have a single source for the purpose of
project communication.
Vendor support and commitment
In the case of a CBS project, vendors and the banks represents two sides of the same
coin. Banks opt to maximize the benefits out of the project while the vendors try to
maximize their profits from the project. Vendors make various promises and agree on
numerous concessions during the selection phase to win contracts, which are worth multi
million dollars. Banks on the other hand bargain on pricing and negotiate heavily on
terms and conditions, which appear to be beneficial to them. The outcome of those could
be the compromise on the quality of delivery during implementation phase by the
vendors trying to cut corners to maintain their profit margins. Hence, the contracts need
to have win-win position for both banks and vendors. If that is not the case and banks
become inflexible and insist on delivery to the letters of the contract, vendors too will
become inflexible, and may lose interest on the project halfway through. In such
situations, the project duration will have to be extended. Extending the project period
would not be beneficial to both parties as there will be budgetoverruns and loss of
opportunities for both sides.In reality, the vendors and their implementation teams
manage the CBS implementationprojects. As a result, banks have to largely depend on
the vendors for the successfulcompletion of the project. Though the parties agree on the
terms, conditions, and deliverablesat the time of signing the contract, contingencies may
crop up requiring corrective measuresbeyond the printed letters of the agreements.
Mutual understanding and flexibility of the parties are extremely important in such
instances. This study identifies vendor support and commitment as critical success factors
in implementing CBS projects.
46
CHAPTER FIVE
Summary, Conclusion and Recommendations
5.1 Summary of the major findings
This section finalizes the research study summarizing key findings. The study conducted
interview with the commercial bank of Ethiopia core banking solution project
implementation project manager and team leaders. Besides, survey questionnaire
distributed to all Core banking Solution implementation team members and branch
managers of Addis Ababa city branches .This research aimed at identifying core banking
system implementation project critical success factors and success measurement criteria
of Commercial Bank of Ethiopia The major findings of the study were:
 The study identified, thirteen Critical Success Factors in relation to CBS

implementation projects. However, respondents have failed to identify 5 success
factors as CSFs out of a list of 13.Only nine critical success factors identified as
 Professional Project management

 Monitoring the progress of the project by BOD
 Competent project Manager
 Dedicated project team
 Dedicated project resource
 Effective communication
 Users training
 Top Management Support and
 vendor support and commitment
The study critically evaluated the selected CSFs and their impacts on the project.
Further analysis has been made on the success factors, which have not been
selected as critical and their impact on the project.
 In addition success factors success measurement criteria are identified in this
study were improved efficiency, End use satisfaction and reduced complexity of
operation.
47
5.2 Conclusion
The research aimed at identifying core banking system implementation project critical
success factors and success measurement criteria of Commercial Bank of Ethiopia To
find answers to these questions, a literature review was conducted together with
administering survey questionnaire and conducting in-depth interviews with the project
manager and team leaders of business and technical teams of CBS implementation
project of the bank.
This project implementation attributed to many factors. In this study, these factors are
assessed by categorizing them under major factors. Moreover, among many, nine most
influential determinants classified under project success were identified among thirteen
critical success factors. our factors as important for the success of CBS projects, but have
not been identifies as CSFs by the respondents includes; proper analysis of risk,
interference of top management, prioritizing delivery of business requirements based on
project timing, adopting the proposed system with minimum customization. On the other
hand, the factors identified nine critical factors related to the CBS implementation project
of commercial Bank of Ethiopia covering the key perceptions and aspect of attribute the
key perception and aspects of attributes.
Moreover, for success measurement criteria both CBS implementation project team and
branch managers have identified Improved Efficiency, End User Satisfaction, and
Reduction of Operational Complexity as the three main factors in measuring success of a
project. This result deviate from success measurement criteria identified through
literature reviewed.
Generally, it can be concluded that literature reviews in the field of project management
generate lists of critical success determinants project success. Therefore, investigating
determinants of project implementation success is a fruitful area to achieve on a much
larger scale. It is well-known that not only what determinants are important for achieving
an outstanding project outcome, but also how they are interrelated and influence the
project implementation success are crucial.
48
5.3 Recommendations
The following recommendations were made in order to enhance the effectiveness of the
CBS s implementation project at commercial bank of Ethiopia.
5.3.1 Recommendations for CBS Implementation success factor
Professional Project Manager
Before implementing the CBS project the bank shall identified and assigned experienced
and professional project manager internally. However if such person is not available
internally it is recommended to obtain the service externally. In addition to this the
project charter that authorize the project manager with authority in decision making
independently from the top management of the bank or from the vendor. This will help
the assigned project manager to make unbiased decision of the bank interest.
Regarding the evaluation, the project manager should be evaluated based on the
predefined success measurement criteria and there should be compensation up on
successful completion of the project like bonus and allowance during implementation
process. This will encourage the project manager to achieve the desires outcome.
Competent Project Team
Having experienced, professional, competent Project Manager is not only important for
successful implementation of the project similarly a competent project team is also an
important factor. Therefore:
 It is advisable to include senior and experienced staffs members related to

business and service area, who are capable of making decision related to the area
they represent.
 The project team members shall include those who are capable and voluntary
working long hours should be selected.
49
 The project team members only report to the project manager and they should be
made independent of their former heads of the departments and the senior
management for the purpose of the project. No need to have two bosses
 It is advisable to include few staff members representing IT, Internal audit and
risk/compliance in the project team.
 Based on the size of the project and on the anticipated duration, adequate number
of team members shall be allocated to the project.
Top Management support and guidance
Top management support and guidance throughout the CBS implementation project is a
mandatory ingredient for the success of the project therefore:
 The top manager should own the implementation project and not consider it as IT
project.
 The top management shall release the best of the resources to the project as and when
necessary and resolve issues related to the project in a timely and effective manner.
 Top management shall give their full corporation to the project manager and the
Project manager shall be made adequately independent to make decisions related to
the project within his scope, but shall made him/her responsible and accountable for
such decisions and their implications on the project and the bank.
Vendor Relationship Management

Smooth relationship between the bank and vendor could facilitate the implementation
process. Both parties need to be adequately flexible unless serious violation of contract
happened therefore:
 Bank shall maintain a cordial relationship with the selected vendor throughout the
project to ensure that the project is completed as expected.
During selection process banks shall ensure that the vendor sends an adequately
experienced project manager and an implementation team. This will avoid the
problem arise during implementation phase
50
 Banks (including their Project Managers and the implementation team members)
shall be adequately flexible during the implementation and shall be practical and
reasonable in assessing the situations.
 When required, apply appropriate amount of pressure on the vendor is
recommended. However, banks shall refrain from applying excessive pressure.
Effective Communication
Effective communication is essential in running any project. Communication between the

stakeholders of the project is vital to maintain transparency, reduce misunderstandings
and to keep the stakeholders update the project status, accomplishments, events that may
affect other stakeholders of the project. This could be done by correctly identifying the
expectations of different stakeholders of the project and managing their expectations
accordingly. To have effective communication between the stakeholders of the project.
 Project steering committee need to have direct communication with the project
manager and let the project manager manage the project, project team and the
vendor relations. Progress review meetings with the participation of the bank‘s
project manager and the vendor‘s project manager shall be held on a frequent
basis.
 Project manager shall have constant communication with the project team by way
of project team briefings to obtain feedback on project progress and provide
guidance.
 Based on the requirements, project manager or team members appointed by the
project manager may arrange meeting with, business heads, end-users and the IT
staff on need basis.
 Project manager of the bank shall have regular meetings with the project manager
and the project team of the vendor to have a constant update on project status and
resolve issues related to the project.
 All meetings must be initiated with an invitation for the meeting to all parties
concerned followed by the agenda of the meeting. All important matters
discussed, decisions and point of actions need to be recorded with the due date of
51
action and persons responsible and minutes circulated within the shortest possible
time after the meeting to all participants and copied to others only on need to
know basis.
5.3.2 Project Success Measurement Criteria
Without appropriate success measurement criteria, it is difficult to assess whether the

project was concluded successfully or not. Further, it is important to know the extent of
the project success to make corrective actions (if necessary) and to reward the people
who were involved in the project. Criteria to measure the success could be a mix of both
qualitative and quantitative factors, which shall be based on the business objectives and
scope of the project. In order to be effective, project success measurement criteria shall
be agreed at the beginning of the project. Modifications to success criteria shall not be
done without the agreement of the project stakeholders (specifically, project manager, the
project team and the end-users who are expected to be rewarded on successful
completion of the project) to avoid disappointments and discouragement of the
stakeholders.
Degree of achievement of expected project objective, outcomes, on-schedule

implementation and implementation within the allocated budgets shall be included in the
measurement criteria. Qualitative and subjective measurements such as end-user
satisfaction shall be avoided as measurement criteria. It is advisable to convert such
qualitative factors in to quantifiable or measurable factors.
52
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56
ANNEX 1
St. Mary’s University

School of Graduate Studies
Department of Project Management (MBA)
Dear Respondent,
The objective of this questionnaire is to gather and analyze relevant, accurate, and timely
information that will help to assess critical success factors in implementation of Core
Banking Solution at Commercial Bank of Ethiopia. This study is undertaken as a partial
requirement for the completion of Masters of Business Administration in Project
Management.
All data and information that will be gathered through these Questionnaires will be used
for the sole purpose of the research and remains confidential. Therefore, you are kindly
requested to respond to the questions with utmost good faith, freely and to the best of
your knowledge. There is no need to write your name on the Questionnaires
Thank you in advance for your time and kind cooperation.

WesenyeleshTezeraBeyene
E-Mail: eliltawon@gmail.com
Mob: +251 09 11 634272
Tel: +251 011 3497386
i
This questionnaire is a means to collect data on assessment of critical success factors in
Core Banking Solution implementation at commercial bank of Ethiopia.
Please put a “√” mark to all your responses in the circle provided beside each statement.
I. General Profile
1. Gender
□ Male □ Female
2. Age (years old)
□19-28 □29-38 □39 or above
3. Education background
□ High school diploma or below □ Junior college diploma

□ Undergraduate degree (Bachelor‟s degree) □Graduate degree (Master‟s
degree) or above
4. Which of the following best describes your role in the Core Banking System
Implementation Project? / At the bank?
□ Project Director □ UAT Team □ Branch Manager □ Other------------
□Team Leader □ Business Team □ Technical Team □ Data migration Team
5. Work Experience in the Bank
□ Less than 3 year □ 3-5 years □ 5 years and above
6. On what key factors do you define Core banking system implementation Success?
(Please rank if more than one selected)
□ Improved efficiency □ Reduced Complexity of operation
□ End user Satisfaction □ Low cost of ownership
□ Timely implementation □ Implement within budget
ii
Other (please Specify) …………………………………………………
Section II-
This part of questionnaire covers critical success factors in Core banking Solution
implementation project at commercial Bank of Ethiopia. Please indicate how much you
agree or disagree with each of the following statements by writing the number that best
represents your opinion. 1 indicates strongly disagree (SDA), 2 indicates disagree (DA),
3 indicates neutral (N), 4 indicates agree (A) and 5 indicates strongly agree (SA).
S.n Strongl Disagree Neither Agree Strongly

o y agree not agree
disagre disagreed
e
1 Assigning dedicated, Skilled and
experienced project manager is
mandatory in achieving successful
implementation of Core Banking
system.
2 The leadership style of project
manager is important in
implementing Core banking System
3 Dedicated project team and is
mandatory to achieve successful
implementation of a core banking
system
4 Dedicated resource is mandatory to
achieve successful implementation of
a core banking system
5 Adopting the proposed system with
minimum customization is important
in CBS implementation.
iii
6 Prioritizing delivery of business
requirements based on project timing
is important in successful
implementation.
7 Top Management support is crucial

for successful completion of the
implementation process
8 Top Management guidance is crucial

for successful completion of the
implementation process
9 Undue influences or interference of

top management in implementation
process adversely affect the outcome
of the project.
10 Monitoring the progress of the project
by the Board of Directors.
11 Effective communication between

stakeholders of the project is vital for
the success of the implementation
project.
12 Using proper medium of
communication during Core banking
solution implementation process is
important for successful
implementation.
13 Proper analysis of risk on
implementing is Core Banking
Solution is a critical success factor
iv
14 Having risk management plan is
important in implementing successful
Core Banking Solution.
15 User Training is important factor for

implementation success
16 Vendor support and commitment is a
key for successful implementation
17 Any other factors related to banking
system Implementation?
1.
2.
3.
4.
5.
6.
7.
Comments:
1…………………………………………………………………………………………
2…………………………………………………………………………………………
3…………………………………………………………………………………………
4…………………………………………………………………………………………
5…………………………………………………………………………………………
6…………………………………………………………………………………………
v
ANNEX II
St. Mary University
School Graduate Studies
Masters of Business Administration in Project Management
Check List for in-depth Interview Questions Project Director and Team Leaders of
CBS implementation project
Dear Respondent,
The objective of this interview is to gather and analyze relevant and in-depth information
that will provide insights about critical success factors in Core Banking Solution
implementation projects at Commercial Bank of Ethiopia. This study is undertaken as a
partial requirement for the completion of MBA in Project Management.
1. What was your role in the Core Banking System Implementation Project?
2. What are the importances of professional project management in Core banking
software implementation project? Explain
3. On what key factors do you define Core banking system implementation Success?
4. Was there monitoring and evaluation by BOD during implementation?
5. Do you think there was top Management support and guidance during implementation
process? Explain
6. Do you think there was vendor support and commitment during implementation of the
project? How?
7. Was there effective communication among project manager, vendor, team leaders team
members and other stakeholders? How?
8. Was there proper analysis of risk in implementation of Core Banking Solution?
9. Do you have any comment to add?
vi
ANNEX III
FREQUENCY TABLE RELATED TO CRITICAL SUCCESS FACTORS AND
MEASURMENT CRITERIA
Frequency Table
On what key factors do you define core banking system implementation

success?(please rank if more than one selected)
Frequen Percent Valid Cumulative
cy Percent Percent
Improved efficiency 63 35.2 35.2 35.2
Reduced complexity of
46 25.7 25.7 60.9
operation
End user satisfaction 55 30.7 30.7 91.6
Valid
Low cost of ownership 11 6.1 6.1 97.8
Implementation within
4 2.2 2.2 100.0
budget
Total 179 100.0 100.0
Assigning dedicated, Skilled and experienced project manager is mandatory

in achieving successful implementation of Core Banking system.
Frequency Percent Valid Percent Cumulative
Percent
strongly disagree 8 4.5 4.5 4.5
agree 32 17.9 17.9 22.3
Valid
strongly agree 139 77.7 77.7 100.0
Total 179 100.0 100.0
vii
The leadership style of project manager is important in implementing Core
banking System
Percent
agree 55 30.7 30.7 35.2
Valid
strongly agree 116 64.8 64.8 100.0
Total 179 100.0 100.0
Dedicated project team and resource is mandatory to achieve successful

implementation of a core banking system
Percent
agree 59 33.0 33.0 37.4
Valid
strongly agree 112 62.6 62.6 100.0
Total 179 100.0 100.0
Dedicated resource is mandatory to achieve successful implementation of a

core banking system
Percent
neither agree nor
11 6.1 6.1 8.9
disagree
Valid
agree 54 30.2 30.2 39.1
strongly agree 109 60.9 60.9 100.0
Total 179 100.0 100.0
viii
Adopting the proposed system with minimum customization is important
in CBS implementation
Frequenc Percent Valid Percent Cumulative
y Percent
Strongly
6 3.4 3.4 3.4
disagree
Disagree 9 5.0 5.0 8.4
Neither agree
Valid 96 53.6 53.6 62.0
nor disagree
agree 41 22.9 22.9 84.9
Strongly agree 27 15.1 15.1 100.0
Total 179 100.0 100.0
Prioritizing delivery of business requirements based on project timing

y Percent
neither agree nor
85 47.5 47.5 49.7
disagree
Valid
agree 56 31.3 31.3 81.0
strongly agree 34 19.0 19.0 100.0
Total 179 100.0 100.0
Top Management support and guidance is crucial for successful

completion of the Implementation Process
y Percent
neither agree nor
32 17.9 17.9 22.3
disagree
Valid
agree 60 33.5 33.5 55.9
strongly agree 79 44.1 44.1 100.0
Total 179 100.0 100.0
ix
Top management guidance important in successful implementation
Percent
strongly
5 2.8 2.8 2.8
disagree
disagree 1 .6 .6 3.4
neither agree
Valid 24 13.4 13.4 16.8
nor disagree
agree 69 38.5 38.5 55.3
strongly agree 80 44.7 44.7 100.0
Total 179 100.0 100.0
Undue influences or interference of top management in implementation

process adversely affect the outcome of the project.
Percent
neither agree
51 28.5 28.5 28.5
nor disagree
Valid agree 100 55.9 55.9 84.4
strongly agree 28 15.6 15.6 100.0
Total 179 100.0 100.0
x
Monitoring the progress of the project by the Board of Directors.
Percent
strongly
4 2.2 2.2 2.2
disagree
disagree 4 2.2 2.2 4.5
neither agree
Valid 5 2.8 2.8 7.3
nor disagree
agree 40 22.3 22.3 29.6
strongly agree 126 70.4 70.4 100.0
Total 179 100.0 100.0
Effective communication between stakeholders of the project is vital for

the success of the project
Percent
strongly
8 4.5 4.5 4.5
disagree
neither agree
22 12.3 12.3 16.8
Valid nor disagree
agree 60 33.5 33.5 50.3
strongly agree 89 49.7 49.7 100.0
Total 179 100.0 100.0
Using proper medium of communication during Core banking solution
implementation process is important for successful implementation
Percent
strongly
7 3.9 3.9 3.9
disagree
neither agree
22 12.3 12.4 16.3
Valid nor disagree
agree 61 34.1 34.3 50.6
strongly agree 88 49.2 49.4 100.0
Total 178 99.4 100.0
Missing System 1 .6
Total 179 100.0
xi
Proper analysis of risk on implementing is Core Banking Solution is a
critical success factor
Percent
neither agree nor
36 20.1 20.1 24.6
disagree
Valid
agree 85 47.5 47.5 72.1
strongly agree 50 27.9 27.9 100.0
Total 179 100.0 100.0
Having risk management plan is important in implementing successful

Core Banking Solution
Percent
disagree 2 1.1 1.1 5.0
neither agree nor
42 23.5 23.5 28.5
Valid disagree
agree 80 44.7 44.7 73.2
strongly agree 48 26.8 26.8 100.0
Total 179 100.0 100.0
User Training is important factor for implementation success

Percent
neither agree nor
8 4.5 4.5 8.9
disagree
Valid
agree 89 49.7 49.7 58.7
strongly agree 74 41.3 41.3 100.0
Total 179 100.0 100.0
xii
Vendor support and commitment is a key for successful implementation
Frequency Percent Valid Cumulative
Percent Percent
disagree 4 2.2 2.2 2.2
neither agree nor
21 11.7 11.7 14.0
disagree
Valid
agree 103 57.5 57.5 71.5
strongly agree 51 28.5 28.5 100.0
Total 179 100.0 100.0
xiii
ANNEX IV
Critical success factors identified by respondents in CBS implementation project
Descriptive Statistics
Attribute N Minimum Maximum Mean Std. Deviation

Professional project
179 1 5 4.64 .878
manager
Monitoring the progress
of the project by the 179 1 5 4.56 .841
BOD.
The leadership style of
179 1 5 4.51 .889
project manager
Dedicated project team 179 1 5 4.49 .889
Dedicated project
179 1 5 4.46 .843
resource
Effective communication 179 1 5 4.24 .985
User Training 179 1 5 4.23 .900
Top Management support 179 1 5 4.13 1.006
Vendor support and
179 2 5 4.12 .692
commitment
Factors identified as important for success but not identified by respondents

Descriptive Statistics
N Minimum Maximum Mean Std. Deviation

Attribute
Proper analysis of risk 179 1 5 3.94 .940
Undue influences or
interference of top 179 3 5 3.87 .654
management in
Prioritizing delivery of
business requirements based 179 1 5 3.65 .864
on project timing
Adopting the proposed
system with minimum 179 1 5 3.41 .922
customization
xiv
ANNEX V
NUMBER OF ADDIS ABABA CITY AND SURROUNDING BRANCHES

OF COMMERCIAL BANK OF ETHIOPIA
TOTAL NO. OF
DISTRICT NO. OF BRANCHES BRANCHES
1.NORTHERN DISTRICT
GRADE IV 5
GRADE III 4
90
GRADE II 40
GRADE I 41
2.SOUTHERN DISTRICT
GRADE IV 9
GRADE III 2
79
GRADE II 49
GRADE I 19
3.EASTERN DISTRICT
GRADE IV 5
GRADE III 3
91
GRADE II 49
GRADE I 34
4.WESTERN DISTRICT
GRADE IV 5
GRADE III 4
101
GRADE II 46
GRADE I 46
TOTAL 361
SOURCE:COMMERCIAL BANK OF ETHIOPIA HRM PROCESS SEPTEMBER,2016
xv
ANNEX VI
NUMBER OF ADDIS ABABA CITY BRANCHES
OF COMMERCIAL BANK OF ETHIOPIA
DISTRICT Addis Ababa City Branches of CBE

1.NORTHERN DISTRICT
GRADE IV 5
GRADE III 3
GRADE II 24
GRADE I 22
TOTAL 54
2.SOUTHERN DISTRICT
GRADE IV 8
GRADE III 1
GRADE II 23
GRADE I 11
TOTAL 43
3.EASTERN DISTRICT
GRADE IV 3
GRADE III 2
GRADE II 26
GRADE I 20
TOTAL 51
4.WESTERN DISTRICT
GRADE IV 3
GRADE III 2
GRADE II 20
GRADE I 20
TOTAL 45
GRAND TOTAL 193
SOURCE:COMMERCIAL BANK OF ETHIOPIA HRM PROCESS
SEPTEMBER,2016
xvi
ANNEXVII
Table for Determining Sample Size from a Given Population 95%

Confidence Interval
N S N S N S
10 10 230 140 1200 291
15 14 240 144 1300 297
20 19 250 148 1400 302
25 24 260 152 1500 30
30 28 270 155 1600 310
35 32 270 159 1700 313

40 36 280 162 1800 317
45 40 290 165 1900 320
50 44 300 169 2000 322
55 48 320 175 2200 327
60 52 340 181 2400 331
65 56 360 186 2600 335
70 59 380 191 2800 338
75 63 400 196 3000 341
80 66 420 201 3500 346
85 70 440 205 4000 351
90 73 460 210 4500 351
95 76 480 214 5000 357
100 80 500 217 6000 361
110 86 550 225 7000 364
120 92 600 234 8000 367
130 97 650 242 9000 368
140 103 700 248 10000 373
150 108 750 256 15000 375
160 113 800 260 20000 377
xvii
180 118 850 265 30000 379
190 123 900 269 40000 380
200 127 950 274 50000 381
210 132 1000 278 75000 382
220 136 1100 285 10000 384
Note: “N” is population size

“S” is sample size.
Source: Krejcie R. V. and Morgan D. W. (1970)
xviii

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ST.

SCHOOL OF GRADUATE STUDIES

ASSESSMENT OF SUCCESS FACTORS IN CORE

WESENYELESH TEZERA BEYENE

WESENYELESH TEZERA BEYENE

A THESIS SUBMITTED TO ST. MARY’S UNIVERSITY,

ASSESSMENT OF SUCCESS FACTORS IN CORE

WESENYELESH TEZERA BEYENE

APPROVED BY BOARD OF EXAMINERS

Wesenyelesh Tezera ______________________

TemesgenBelayneh (Ph.D.) ----------------------------------------------

Next I would like to express my thanks and appreciation to my Advisor Dr.

I also express my gratitude to the entire project team (respondents) of CBS

Finally I would like to express gratitude to my husband ZebeneWodajo, and my kids,

God bless you all.

CBS Core Banking System

CORE Centralized Online Real entire banks' branch

PMO Project Management Office

CBE Commercial Bank of Ethiopia

NBE National Bank of Ethiopia

ATM Automated Teller Machine

CSF Critical Success Factor

ROI Return on Investment

SPSS Statistical Package for Social Sciences

SMS Short Text Message

CBSO Core Banking Solution

BPR Business Process Reengineering

BOD Board of Directors

Table 3.1: Target population.

Table 3.2: strata (subgroups) for random sampling

Table 4.1: Rate of Responses by Respondents

Table 4.2 Response rate by age group

Table 4.3 Educational Background of respondents

Table 4.4 Role of respondents

Table 4.5: Factors in Measuring Success of a CBS Implementation Project

Table 4.6: Analysis of Success factors Related to Project Management

Table 4.7 Analysis related to Top Management support

Table 4.8 Analysis related to effective communication

Table 4.10 Analysis related to risk analysis

Table 4.11 Success factors related to monitoring

Figure 2.1 ―iron triangle.‖

Fig. 4.1 Response rates by gender

Banks play an important role in economic development of a country, where commercial

Keywords: Core Banking Solutions, Critical Success factors, success measurement

In modern banking service delivery, the environment is ever-changing demanding a lot to

The nerve center of technology in a bank‘s information technology department is core

Core Banking Solution (CBS) is networking of branches, which enables Customers to

1.2 Background of the Case Study Area

1.3 Statement of the Problem

1. What are critical success factors in Core Banking software project

1.5 Objectives of the Study

1.5.1 General Objective of the Study:

1.5.2 Specific Objectives of the Study:

This study aims to:

 Identify factors affecting success of Core Banking software implementation of

1.6. Significance of the Study

1.8 Limitation of the study

1.9 Organization of the Thesis Report

Reviews of Related Literature