Sirak Aynalem PDF

Factors Influencing Implementation of Core Banking System Project: The
Case of Commercial Bank of Ethiopia (CBE)
By
Sirak Aynalem Argaw (MBA)
Faculty of Business and Economics, Mekele University, Ethiopia
Email: sirakaynalem@gmail.com
June, 2018
Addis Ababa, Ethiopia
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Table of Contents
List of Tables ................................................................................................................................. v
List of Figures ............................................................................................................................... vi
List of Appendices ....................................................................................................................... vii
List of Acronyms ........................................................................................................................ viii
Abstract ......................................................................................................................................... ix
CHAPTER ONE: INTRODUCTION ......................................................................................... 1
1.1. Background of the Study .................................................................................................. 1
1.2. Statements of the Problem................................................................................................ 2
1.3. Research Objective(s) ...................................................................................................... 3
1.3.1. General Objective ..................................................................................................... 3
1.3.2. Specific Objectives ................................................................................................... 3
1.4. Research Questions .......................................................................................................... 4
1.5. Hypothesis of the Study ................................................................................................... 4
1.6. Significance of the Study ................................................................................................. 4
1.7. Scope of the Study............................................................................................................ 5
1.8. Limitations of the Study ................................................................................................... 5
1.9. Organization of the Study ................................................................................................ 5
CHAPTER TWO: LITERATURE REVIEW ............................................................................ 6
2.1. Theoretical Literature ....................................................................................................... 6
2.1.1. Overview ................................................................................................................... 6
2.1.2. The Concept of Core Banking .................................................................................. 6
2.1.3. Core Banking Services and Products ........................................................................ 7
2.1.4. Benefits of Core Banking.......................................................................................... 7
2.1.5. Challenges of Core Banking ..................................................................................... 7
2.1.6. Review of Factors Influencing Project Implementation ........................................... 8
2.1.7. Factors Influencing Implementation of IT Projects ................................................ 11
2.1.8. Project Success Criteria .......................................................................................... 12
2.1.9. Core Banking Projects Implementation Framework............................................... 13
2.2. Empirical Literature ....................................................................................................... 15
2.3. Research Gap.................................................................................................................. 17
2.4. Conceptual Framework .................................................................................................. 18
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CHAPTER THREE: RESEARCH METHODS ...................................................................... 19
3.1. Introduction .................................................................................................................... 19
3.2. Operational Definition of Variables ............................................................................... 19
3.2.1. Dependent Variable ................................................................................................ 19
3.2.2. Independent Variable .............................................................................................. 19
3.3. Research Design ............................................................................................................. 20
3.4. Target Population and Sample ....................................................................................... 20
3.5. Data Type and Source .................................................................................................... 20
3.6. Data Collection Techniques and Procedure ................................................................... 21
3.6.1. Data Collection Methods ........................................................................................ 21
3.6.2. Data Collection Procedures..................................................................................... 21
3.7. Data Processing and Analysis ........................................................................................ 21
3.7.1. Data Processing ....................................................................................................... 21
3.7.2. Data Analysis .......................................................................................................... 22
3.8. Model Specification ....................................................................................................... 22
3.9. Reliability and Validity .................................................................................................. 22
3.10. Ethical Consideration ................................................................................................. 23
CHAPTER FOUR: RESULTS AND DISCUSSIONS ............................................................. 24
4.1. Introduction .................................................................................................................... 24
4.2. Demographic Characteristics of Respondents................................................................ 24
4.2.1. Classification of Respondents by Gender ............................................................... 24
4.2.2. Classification of Respondents by Level of Education ............................................ 24
4.2.3. Work Experience of Respondents ........................................................................... 24
4.2.4. Classification of Respondents by Position .............................................................. 25
4.3. Reliability Analysis ........................................................................................................ 26
4.4. Descriptive Analysis ...................................................................................................... 26
4.4.1. Descriptive Statistics of Core Banking System Project Success Factors ............... 26
4.4.2. Descriptive Statistics of Core Banking System Project Success Measurement ..... 34
4.5. Correlations Analysis ..................................................................................................... 36
4.6. Binary Logistic Regression Analysis ............................................................................. 38
4.6.1. Testing Assumptions of Binary Logistic Regression Model .................................. 38
4.6.2. The Influence of Project Success factors on Realistic Project Completion Time .. 39
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4.6.3. The Impact of Project Success factors on Reasonable Project Completion Cost ... 44
4.6.4. The Impact of Project Success factors on Meting Predetermined Benefits ............ 49
4.7. Factors Influencing Implementation of Core Banking System Project.......................... 53
4.7.1. External Factors ...................................................................................................... 53
4.7.2. Internal Factors ....................................................................................................... 53
4.8. Results Summary............................................................................................................ 54
CHAPTER FIVE: CONCLUSIONS AND RECOMMENDATIONS ................................... 57
5.1. Introduction .................................................................................................................... 57
5.2. Conclusions .................................................................................................................... 57
5.3. Recommendations .......................................................................................................... 58
5.4. Future Areas of Research ............................................................................................... 59
REFERENCES .......................................................................................................................... 60
APPENDICES ........................................................................................................................... 64
Appendix 1: Questionnaire .................................................................................................... 64
Appendix 2: Reliability Analysis .......................................................................................... 69
Appendix 3: Collinearity Diagnostic Results ........................................................................ 70
Appendix 4: Logistic Regression Results .............................................................................. 70
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List of Tables
Table 4.1: Demographic characteristics of respondents…………………………………….…..25
Table 4.2: Survey result on clarity of organizational goals and objectives ……………………..27
Table 4.3: Survey result on project manager competence……………………………………….28
Table 4.4: Survey result on project scope change management practice……………………......30
Table 4.5: Survey result on end users involvement……………………………………………...31
Table 4.6: Survey result on vendors’ involvement ……………….…………………………..…32
Table 4.7: Survey result on support from top management ……………………………………..34
Table 4.8: Core banking system project success indicators……...………………………………35
Table 4.9: Correlations between Project Success Factors and Project Performance…………….37
Table 4.10: Average response result of independent variables used for regression
analysis…...………………………………………………………………………………………38
Table 4.11: Logistic regression predicting likelihood of reporting core banking project completed
on realistic schedule time ……………….……………………………………………………….43
Table 4.12: Logistic regression predicting likelihood of reporting core banking project completed
at reasonable cost …………………………….………………………….………………………47
Table 4.13: Logistic regression predicting likelihood of reporting core banking project meets
predetermined benefits …………………………….………………….…………………………51
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List of Figures
Figure 1: Conceptual framework ………………………………………………………………..18
Figure 2: Core banking system project success measurement indicators in CBE……………….36
Figure 3 Classification plot for realistic project completion time……………………………….44
Figure 4: Classification plot for reasonable project completion cost……………………………48
Figure 5: Classification plot for project meets the predetermined benefits ……………………..52
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List of Appendices
Appendix 1: Questionnaire ……………………………………………………………………...64
Appendix 2: Reliability Analysis………………………………………………………………...69
Appendix 3: Collinearity Diagnostic Results……………………………………………………70
Appendix 4: Logistic Regression Results cost…………………………………………………...70
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List of Acronyms
BOD - Board of Directors
CBE - Commercial Bank of Ethiopia
CORE - Centralized Online Real-time Electronic
EATS - Ethiopian Automated Transfer System
H-L - Hosmer and Lemeshow Test
HR - Human Resource
IT - Information Technology
NBE - National Bank of Ethiopia
NPS - National Payment System
PMI - Project Management Institute
PMO - Program Management Office
SD - Standard Deviation
SPSS - Statistical Packages for Social Sciences
VIF - Variance Inflation Factor
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Abstract
The main purpose of the study was to investigate the factors influencing the implementation of
core banking system project in CBE. To achieve this purpose, the study examined the influence
of: organizational goals and objectives, project manager competence, project scope change
management, end users involvement, vendor involvement and support from top management. The
study was carried out using descriptive research based on survey approach using primary data
collected. For the purpose of this study, self-developed questionnaire was distributed for 116
project management experts and professionals who are actively involved in T24 Core banking
system project implementation process in CBE. Purposive sampling was used to address the
required sample. Econometric and other statistical methods were employed to test the
hypothesis using Statistical Package for Social Sciences (SPSS) Version 21 software. The study
ascertain that the core banking system project implementation process end up within extra cost
and time while meeting the predetermined benefits in CBE. The study also ascertain that project
managers’ time management skill, experience and team building ability; project time and cost
change management practice; end users participation and satisfaction; top management timely
decision making and timely authorization of business changes were ineffectively performed
during the implementation of core banking system project in CBE. The study further confirmed
that project scope change management made a significant contribution to successful completion
of core banking system project within realistic schedule time in CBE. The study recommends
that, in order to successfully implement (within cost, time and quality) a core banking system
project, banks need to establish clear and understood goals and objectives; effectively manage
scope changes during implementation; assign competent project manager and project teams;
sufficiently involve end users and vendors; and top management should provide the necessary
support by ensuring that the required tools and resources, guidance and support are provided;
and timely authorization and decision making are made.
Key Words: Core Banking System; Goals and Objectives; Project Manager Competence; Scope
Change Management; End Users Involvement; Vendor Involvement; Top Management Support.
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CHAPTER ONE: INTRODUCTION
1.1. Background of the Study
Today’s financial institutions find themselves confronted with a new paradigm. Competition for
clients is no longer based exclusively on the quality of conditions. The expectations of the
banking public have taken on a new dimension. In order to satisfy these ever-changing needs,
modern banks must be able to anticipate developments before they occur. At the same time, they
have to keep their operating costs to a minimum and achieve ongoing improvement in
productivity. Obviously, that calls for a high-performance IT infrastructure (Fujitsu Technology
Solutions, 2009).
Since banks are a key for the economic development of any country, modernizing the bank
services helps banks to increase their growth and contribute for the economic development of the
country as well. An increasing number of products to cater to different customer segments, the
expanding number of channels with time, which is increasing the complexity of multi-channel
banking has necessitated investments into modernizing core banking systems in order to
handle an increasing volume of product-channel transactions and payments (Negalign &
Lisanwork, 2016).
A core banking system is essentially the heart of all the systems operating in a bank. It can be
described as the core of a bank’s IT platform. With the advancement of technology, core systems
tend to cover more and more functionalities, providing the bank with an integrated solution for
most of its operations in varied business lines. A core banking system resides in the heart of a
bank’s data centre and provides a central operational database of customers’ assets and liabilities.
It enables a full view of a customer’s relationship with the bank (Rohan & Megha, 2013).
In recent years new trends are emerging in Ethiopian banking environment that are causing
banks to realize the urgency of core-banking transformation. Core banking transformation is
driven by the need for responding to internal business imperatives, such as growth and
efficiency and also driven by the need to respond to external business imperatives, such
as regulations and competition (Negalign & Lisanwork, 2016). Therefore, transforming modern
banking system in the Ethiopian banking industry is very crucial for the development of
bank sector in the country.
Accordingly, the National Bank of Ethiopia (NBE) instructed all commercial banks in the
country to adopt core banking system solutions. NBE wants every major bank to use this
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technology so that eventually there will be a nationwide electronic payment system. However,
acquiring a technology known in the finance industry as core banking solutions has been an
elusive target for the banks in Ethiopia (Negalign & Lisanwork, 2016).
In response to the NBE requirement, the Ethiopian financial giant, Commercial Bank of Ethiopia
(CBE) has installed upgraded centralized, online, real-time, electronic (CORE) banking solutions
system on May, 2012. The IT procurement by CBE was signed with an international technology
vendor based in Switzerland, Temenos Group (Capital, 2012). However, the factors influencing
the implementation of core banking system project in CBE not yet studied.
Therefore, this study aimed to investigate the factors influencing the implementation of core
banking system project in CBE considering the factors in the available literature.
1.2. Statements of the Problem
Banks are now more customer-centric and there is a new focus on customer service, single view
of the customer, and relationship-based pricing. Banks are facing increasing competitive pressure
from new entrants such as online and direct banks running on new core banking platforms. This
in turn leads to change their core banking system for effective customer service delivery
(Stephen & Patricia, 2017).
Following the implementation of the NBE's National Payment System (NPS) in 2011, a platform
which integrates all electronic inter-bank money transactions, all Ethiopian banks were required
to deploy CORE banking solutions. With the aim of establishment of a nationwide electronic
payment system in Ethiopia, the National Bank of Ethiopia (NBE) instructed all commercial
banks in the country to adopt core banking solutions in July, 2011 (NBE, 2011).
In response to the NBE’s requirement, CBE has invested nearly 6 million US dollars and have
implemented Temenos T24 core banking system project on May, 2012 (Capital, 2012) and have
managed to interface with the Ethiopian Automated Transfer System (EATS) and modernize the
banking system to international standards.
The core banking system also enabled the bank to strengthen and extend its relations with credit
card providers such as Visa and Master Card as well as roll out new mobile and Internet banking
services. Thus, the bank’s customers will enjoy reduced waiting time and a greater choice of
banking services and channels (Seife & Mesfin, 2015). According to the IT road map strategy of
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the bank, currently, CBE has made a plan to upgrade the system in response to technological
advancement and volume of transactions (CBE, 2017).
Despite all the advantages core banking brought to the bank and its customers, the
implementation process waited long overdue and took more time to complete and become
operational with extra cost to complete. Although, the original schedule for completion of the
project was June 2010, CBE indicated that the launch would be delayed until the end of
December, 2011 and further delaying for another five months and become operational in May,
2012 (Capital, 2012).
Despite all the facts that CBE have implemented core banking technology years ago with delay
and extra cost, to the knowledge of the researcher, no research was done on the factors
influencing the implementation of core banking system project in CBE and the factors
influencing the implementation of core banking project in CBE not well known.
This study therefore seeks to investigate the factors influencing the implementation of core
banking system project in CBE by considering the factors in the available literature.
1.3. Research Objective(s)
The study has the following general and specific objectives.
1.3.1. General Objective
The aim of the study was to investigate the factors influencing the implementation of core
banking system project in CBE.
1.3.2. Specific Objectives
1. To examine the influence of clearly defined organizational goals and objectives on the
implementation of core banking system project in CBE.
2. To investigate the influence of project manager competence on the implementation of core
3. To ascertain the influence of project scope change management on the implementation of
core banking system project in CBE.
4. To determine the influence of end users involvement on the implementation of core banking
system project in CBE.
5. To establish the influence of vendor involvement on the implementation of core banking
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6. To find out the influence of top management support on the implementation of core banking
1.4. Research Questions
In line with the above aims, the study intends to fill the gap by answering the following research
questions:
1. How do clearly defined organizational goals and objectives influence the implementation of
core banking system project in CBE?
2. How does project manager competence influence the implementation of core banking system
project in CBE?
3. How does project scope change management influence the implementation of core banking
system project in CBE?
4. What is the influence of end users involvement on the implementation of core banking
system project in CBE?
5. What is the influence of vendor involvement on the implementation of core banking system
project in CBE?
6. What is the influence top management support on the implementation of core banking system
project in CBE?
1.5. Hypothesis of the Study
To investigate the relationship between the project success factors and project success
measurement indicators, the study proposed the following research hypotheses for later testing.
Ho1: There is no significant influence of the project success factors on core banking system
project completion time in CBE.
project completion cost in CBE.
project benefits in CBE.
1.6. Significance of the Study
The study is helpful by contributing to a better understanding and knowledge to influence the
implementation of core banking system by commercial banks in Ethiopia. In addition, the study
might help the policy makers by informing its findings. This helps in forming and improving
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guidelines in regard to core banking system project implementation in response to technological
advancement. Scholars and researchers also might use the study to provide a framework for
strengthening existing project implementation principles and also use its’ findings as a reference.
1.7. Scope of the Study
Different IT projects are implemented in CBE. However, this study limited its scope to
identifying the factors influencing the implementation of Temenos T24 core banking system
project implemented by CBE. In addition, the study limited its basis of data from project
management experts in CBE and the study not covered other employees of the bank who are the
users of the core banking system. Furthermore, although various project success criteria might be
relevant in measuring the success of projects, the methodological scope of the study is limited to
measuring core banking system project success as suggested by Seife & Mesfin (2015) in terms
of defined project cost, delivery time, and meeting the desired benefits.
1.8. Limitations of the Study
Due to staff movements as a result of promotion and separation in CBE, the study lacks to
address all core banking project participants. A study of the factors influencing implementation
of core banking system project needs wider coverage of all factors deemed necessary. However,
the study covers limited factors only. Consequently, the study lacks the influence of other factors
on core banking system project implementation to further explain the findings. Finally, due to
limited scope of the study on the core banking participants, the study lacks the end users’
response on the benefits they gained from core banking and their level of involvement and
satisfaction that would make the study result more fruitful.
1.9. Organization of the Study
This study is organized into five chapters. Chapter one addressed background of the study,
research problem, research questions, objective of study, and scope and limitations of the study.
Chapter two consisted of literature review in which previous theories and empirical findings
regarding core banking implementation are explained. Chapter three explain the research
methods of the study that are employed. Chapter four briefly explains the results and discussions
of the study. The final chapter presents the conclusions and recommendations of the study based
on the findings.
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CHAPTER TWO: LITERATURE REVIEW
2.1. Theoretical Literature
2.1.1. Overview
Projects in commercial banks are directed towards serving customers more efficiently and
effectively and reduce costs. Delay of such projects will therefore impact negatively on the
customers as they do not get what they should culminating to business loss and customer
inconvenience (Stephen & Patricia, 2017). Hence, Core banking project delivery is a sensitive
phenomenon in the banking industry due to digitization and technological changes.
A core banking system is essentially the heart of all the systems operating in a bank. It can be
described as the core of a bank’s IT platform. With the advancement of technology, core systems
tend to cover more and more functionalities, providing the bank with an integrated solution for
most of its operations in varied business lines. A core banking system resides in the heart of a
bank’s data centre and provides a central operational database of customers’ assets and liabilities.
It enables a full view of a customer’s relationship with the bank (Rohan & Megha, 2013).
2.1.2. The Concept of Core Banking
Abbate (1999) cited in Negalign & Lisanwork, 2016) defined a core banking system as a back-
end system that processes daily banking transactions, and posts updates to accounts and other
financial records. Core banking system is the platform where communication technology and
information technology are merged to suit core needs of banking such as handling deposits and
lending (Chairlone & Ghosh, 2009 cited in Negalign & Lisanwork, 2016).
Core banking systems typically include deposit, loan and credit processing capabilities, with
interfaces to general ledger systems and reporting tools. Strategic spending on these systems is
based on a combination of service-oriented architecture and supporting technologies that
create extensible and agile architectures (Chairlone & Ghosh, 2009 cited in Negalign &
Lisanwork, 2016).
Core banking is a banking service provided by a group of networked bank branches where
customers may access their bank account and perform basic transactions from any of the member
branch offices. It is often associated with retail banking and many banks treat the retail
customers as their core banking customers. Businesses are usually managed via the corporate
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banking division of the institution. It also covers basic depositing and lending of money
(Wikipedia, the free encyclopedia).
2.1.3. Core Banking Services and Products
Core Banking products and services such as Automatic Teller Machines, Electronic Fund
Transfer, Mobile Banking, online banking, Electronic Data Interchange and telecommunication
services are methods used by banking organizations to carry out their transactions at a center
through centralized banking services (Negalign & Lisanwork, 2016).
2.1.4. Benefits of Core Banking
Core banking increased revenue since the bank will be able to reach more customers, improved
customer satisfaction since services will be readily available and fast in their provision, cost
reduction because it will not have to incur heavy wage bill, reduced space requirements and
hence reduced rent or lease payments. Other benefits include increased efficiency since
automation enables them to do more with less input, increased level of output and
employee satisfaction and motivation (Negalign & Lisanwork, 2016).
Core banking enables banks: to raise asset yield within existing business; move into more
profitable markets and segments; to extract economies of scale; and to cut costs sustainably
(Robinson, Chris, Walker, & Caldeira (2012).
2.1.5. Challenges of Core Banking
In almost all instances, banks cannot have any benefit without incurring cost or facing
challenges. Potential customers do not trust banks site: The Internet allows mom-and-pop
websites to look just as good -maybe even better than the websites of large corporations. All
potential customers are well aware of this and they will be unimpressed by a sophisticated layout
and a professional logo. Potential customers do not trust the site they have just arrived at, and it
must be banks conscious decision to do what it takes to make them change their minds
(Mahadevan & Venkatesh, 2000 cited in Negalign & Lisanwork, 2016).
Security concerns, the site may be attacked by hackers who may use the organization’s
website to defraud existing and other potential customers. Cost of acquisition installation
and maintenance is also another issue that requires the commitment of huge resources to
acquire the system, to continuously update it and repair incase of break down. Banks also
have to invest in employee training or alternatively hire qualified employees who are
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usually expensive. Resistances by customers to adopt the new technology since most traditional
customers are still shy of technology (Negalign & Lisanwork, 2016).
2.1.6. Review of Factors Influencing Project Implementation
Success factors are inputs to project management practice which can lead directly or indirectly to
project success. It encompasses many elements, which have to be synchronized to ensure the
project delivery on time (Zarina & Yusof, 2014). The success in projects is something much
more complex than just meeting cost, deadlines and specifications (Montequina, Cousillas,
Alvareza, & Villanuevaa, 2016).
From a Project Management perspective, success factors are characteristics, conditions, or

variables that can have a significant impact on the success of the project when properly
sustained, maintained, or managed (Zarina & Yusof, 2014). Success factors can be perceived as
main variables that contribute to projects’ success, as levers that can be operated by project
managers to increase chances of obtaining the desired outcomes (Westerveld, 2003). A
combination of factors determine the success or failure of a project and influencing these factors
at the right time makes success more probable (Savolainen, Ahonen, & Richardson, 2012).
The specialized literature on Project Management is plenty of lists of success factors and failure
causes, thought there is not a general agreement on this matter and it is highly dependable of the
perspective of the observer. Subjectivity is inherent to these concepts and they are also
influenced by cultural and geographical differences. For example, Steinfort & Walker (2007)
argue that there are useful project management approaches that may be universally applied to
most, if not all, projects to contribute to successful project management delivery.
However, when reflecting upon field-experience, some of these project management approaches
appear to simply not function in the environment typified by project aid and emergency relief
projects. This raises some interesting questions. In addition, several studies addressing critical
success factors have observed the impact of context on which factors are considered most critical
as well as whether certain critical success factors are indeed related to success. In most
construction companies, management activities in construction project can be a better
understanding by exploring the critical success factors for improving the performance of their
building projects (Zarina & Yusof, 2014).
Different studies have identified different success factors and a lack of consensus of opinion
among researchers on the criteria for judging project success and the factors that influence that
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success (Zarina & Yusof, 2014). From the previous study, a number of variables influencing the
success of the project implementation were identified. Pinto & Slevin (1987) discovered ten
factors that they felt to be crucial to successful project implementation. These are project
mission, top management support, project plan, client consultation, personnel recruitment
selection and training, technical tasks, client acceptance, monitoring and feedback, trouble
shooting and communication.
Davis (2014) studies project management success in literature from 1970s to present, classifying
the evolution of success factors into decades. According to this study, approaches of success
factors evolved from focusing on the operation level of a project in 1970s to embracing a
stakeholder focused approached after 2000s (Davis, 2014). As a result of the numerous studies
that approached the topic of project success, several lists of success factors exist. Zarina & Yusof
(2014) suggested that success factors can be grouped under five main categories. These include
human-related factors, project-related factors, project procedures, project management actions
and external environment. Variables within each group can influence a variable in others, and
vice versa (Zarina & Yusof, 2014).
2.1.6.1. Project Manager Competence as a Project Success Factor
Although the project success literature has traditionally ignored the project manager as a
project success factor, much has still been written on the subject of the project manager
(Stephen & Patricia, 2017). Muller & Turner (2007 reviewed literature from a myriad of
authors and concluded that the project manager’s competence is related to his or her success
as a project manager.
Project manager skill remains absolutely important, it is important to have certain elements to be
the most effect project manager (Stephen & Patricia, 2017). Time management and problem
solving are useful skills to have as you will need these on a daily basis. When it comes
to decision-making, the project manager need to be stubborn but also able to negotiate
when appropriate. It is also important to be able to work well with staff and be a good listener
and an effective communicator so everyone understands the role the project manager have
been delegated (Jobs UK, 2016).
Successful project manager should have the required skills and competencies; able to
identify problems ; and willing to make timely decisions (Harrin, 2015). Project manager
experience becomes critical in aligning to project delivery. According to Carlos (2016), even
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with the best of intentions or solid plans, project can go awry if they are not managed properly.
All too often, mishaps can occur, this is when the project manager must recognize a
warning sign and take action.
Within the changing environment, a competent project manager is frequently regarded as

having a significant impact on overall project success as well as being critical to other project
elements, such as the success of the project team, including team members‟ motivation
and creativity (Krahn & Hartman, 2004). This strong link with success ensures that
project manager competencies are of particular interest (Stephen & Patricia, 2017).
2.1.6.2. Vendor Involvement as a Project Success Factor
Most of bank projects are handles by external vendors who sell system to the bank
(Stephen & Patricia, 2017). Vendor’s involvement in implementation becomes critical for
project to be delivered within the stipulated time lines.
2.1.6.3. User Involvement as a Project Success Factor
Many reasons have been given to involve users in information technology implementation
projects. User involvement is predicted to increase user satisfaction and acceptance by:
developing realistic expectations about system capabilities, providing an arena for bargaining
and conflict resolution about design issues, leading to system ownership by users, decreasing
user resistance to change and committing users to the system (Casanovas, Esteves, &
Pastor, 2004). By involving end-users in decisions relating to implementation, workers
may become more invested in the success of the implementation and more satisfied with the
system (Stephen & Patricia, 2017).
2.1.6.4. Project Scope Change Management as a Project Success Factor
Scope is the term that defines the entire deliverables that is expected at the end of a project
(Stephen & Patricia, 2017). It can be said that all project plans, estimation, schedule,
quality and base lines are usually designed base in the initial project scope. Thus, any
change in the project scope during execution will mean that the entire initial project plan will
have to be reviewed such that a reviewed budget, schedule and quality will have to be
developed (Stephen & Patricia, 2017).
According to Buys (2015) poor scope change management could lead to dispute that may
require spending time and money on arbitration and litigation for what the vendor or the
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client believes. This with no doubt will lead to delay and cost overrun of the project. To achieve
a proper control for scope change, it is important to first identify the fact that change is
inevitable in project and could equally be beneficial to the entire project success. Thus the
most important thing to do is to integrate a proper change management plan such that a
proactive approach could be adopted involving the project stakeholders and incorporating
their needs throughout the project lifecycle (Stephen & Patricia, 2017).
2.1.6.5. Top Management Support as a Project Success Factor
Top management support helps in effective decision making, managing risk, and in authorizing
business process changes. It is necessary for top managers to get behind the project and make
clear to all involved in the project that they anticipate a successful completion of the project
(Pinto & Slevin, 1987).
2.1.6.6. Clear Goals and Objectives as a Project Success Factor
Goals and objectives of the project should be clearly understood both by the project team and by
the organization (Pinto & Slevin, 1987). One of the most important project management critical
success factors is clear and realistic objective (Nwakanma et al. 2013). Clearly establishing
goals, objectives, outcomes and benefits expected from the project avoids accepting unrealistic
deadline from vendors and purchasing software that doesn’t meet the bank’s requirements. If a
bank clearly identifies which functionalities are to be performed by a core banking system, it will
not experience scope creep. Hence, one of the causes for project time and budget run will be
avoided (Seife & Mesfin, 2015).
2.1.7. Factors Influencing Implementation of IT Projects
Information Technology (IT) projects are often capital intensive, and while time-to-market is of
the essence especially in the private sector, social benefits are a major goal in the public sector.
The alarming rate of IT project, and business failure, even globally, remains a major concern to
stakeholders, especially clients, in developing countries where infrastructure per capita is known
to be low. In order to survive, firms depend on the implementation of new IT ideas with their
capital intensive nature, and a major objective of reducing time-to-market for the private sector,
and increased social benefit for the public sector (Nwakanma, Asiegbu, Ogbonna, & Njoku,
2013).
Most IT projects involve numerous and complex elements, schedules and players, which mean
success, can be long in coming and hard won. But by applying four key strategies (create an IT
11
project roadmap, define specific IT projects, identify project success factors, and manage the
managers) for IT project management, it is possible to make the implementation effort clearer,
simpler and positive for all stakeholders (Hyland Software, 2013).
Lancaster University Management School (2005) developed the Project Success Wheel model
from the critical success factors identified during the research process from the previous
research. The eight component elements of the model are: i) senior management support, ii)
relationship management, iii) effective change management, iv) shared vision, v) skilled and
competent staff, vi) industrial collaboration, vii) user involvement and viii) effective project
management. It is recommended that each of the factors in the model must be present and
applied holistically in order to increase the chances of achieving a success in complex IT
projects.
However, none of the components can be used to compensate for another. Nwakanma et al.
(2013) in their study also discovered clear requirements and specification, clear objective and
goal, realistic schedule, effective project management methods/skills, support from top
management and user and client involvement as a critical success factors for IT projects in
Nigeria and have collective effect on implementation of IT-Projects.
2.1.8. Project Success Criteria
Since projects are temporary in nature, the success of the project should be measured in terms of
completing the project within the constraints of scope, time, cost, quality, resources, and risk as
approved between the project managers and senior management. To ensure realization of
benefits for the undertaken project, a test period (such as soft launch in services) can be part of
the total project time before handing it over to the permanent operations. Project success should
be referred to the last baselines approved by the authorized stakeholders (PMI, 2013).
Project Success criteria are defined by Muller & Turner (2007) as variables that measure project
success. Initially, project success was referred to as reaching the objectives and the planned
results in compliance with predetermined conditions of time, cost and performance (Ioana &
Emil, 2015). Project success measurement is the result of clearly identifying goals and objectives
at the ‘project formulation’ phase. When banks align project implementation with their goals, the
success rate of the project highly increases. Therefore, banks should have a project success
measurement criteria defined (Seife & Mesfin, 2015).
12
The classic view of project management defines three main criteria of project success –
time, cost and scope. These criteria well known as The “Iron Triangle” cover a particular
part of the project objective missing to take into consideration the organizational objectives.
Since projects have an organizational purpose the criteria of project success should
consider their fulfillment (Ivanov, 2012). Projects are said to be successful if the iron
triangle criteria are met: delivered on time, within budget and meeting the predetermined
quality measures (Ivanov, 2012).
Other authors determine the quality of the project management process and the satisfaction of the
project stakeholder as an additional component of the “Iron Triangle” and the internal view
of project success (Kernzer, 2009). A variety of models for measuring project success were
developed for measuring success with different underlying assumptions (Dvir, Raz & Shenhar,
2003).
Project success measurement is the result of clearly identifying goals and objectives at the
‘project formulation’ phase. When banks align project implementation with their goals, the
success rate of the project highly increases. Therefore, banks should have a project success
measurement criteria defined (Seife & Mesfin, 2015).
2.1.9. Core Banking Projects Implementation Framework
A project is considered to fail when it doesn’t bring the expected results and when the
implementation team is unable to meet the requirements of time and budget (Hashmi, 2006 cited
in Seife & Mesfin, 2015). A project is successful if it satisfies the needs of the intended
customers (Kerzner, 2009).
Most core banking system implementations face challenges midway through the project. This
can happen due to lack of coordination and communication between the vendors and the bank’s
project management team. Inadequate information gathered during the requirement phase,
inability of the banks to identify the important requirements, and scope changes are additional
challenges faced during a core banking system implementation (Rohan & Megha, 2013).
By embedding an application software package life cycle model for applications purchased from
vendors outlined by Oracle and Temenos, Seife & Mesfin (2015) designed a framework for
success factors and formulated a guideline on how to execute the critical factors for a better and
effective implementation of a core banking system for Ethiopian banking industry as outlined
below:
13
2.1.9.1. Product Selection
“Goals, objectives and expectations should be studied by the bank thoroughly for a period of
time. This paints a clear image to the bank on the work to be done internally before selecting or
implementing the core banking product, whether it is formulating or updating necessary
strategies (business or IT) or identifying the requirements of the bank. Future interfacing with
other systems and service delivery methods should also be identified thoroughly’’ (Seife &
Mesfin, 2015).
2.1.9.2. Product Evaluation
“Vendors should install a prototype of their core banking and demonstrate proof of concept to
the bank. Concerned end users, project managers, and project team members should participate
in the proof of concept demonstration. Attendees of the demonstration should ask all the
necessary questions during the demonstration, identify gaps and evaluate the core banking
product thoroughly against their requirements thoroughly’’ (Seife & Mesfin, 2015). “Before
finalizing the evaluation process, banks should thoroughly search the success or failure of the
vendor in previous projects. All the above factors should influence the banks’ decision in
selecting and evaluating a core banking product and its vendor thoroughly’’ (Seife & Mesfin,
2015).
2.1.9.3. Vendor Commitment
“Vendors should be committed to finishing the implementation of the project successfully. The
contract between the vendor and the bank should clearly state the role of the vendor in the
project in order to avoid misunderstandings down the road. Vendors should be attentive to the
requests raised from the bank since it plays a vital role in the success of the project’’ (Seife &
Mesfin, 2015).
2.1.9.4. Project Management
“The project manager should be capable of making decisions, leading his/her fellow project team
members and fully reporting the project status to higher officials and project steering committee
members. The project team members should be dedicated and open minded to work extra hours
when necessary. The project team members should also be committed to the project and should
have no other extra work. The project manager should ensure the proper involvement of project
steering committee members during implementation” (Seife & Mesfin, 2015).
14
2.1.9.5. Top Management Support
“Top management should also resolve issues, which need a higher level decision, in an effective
and timely manner. Top management should also resolve disagreements between vendors and
project team members in an efficient way. Top management should compose the project steering
committee, with the business users, project team members, project manager and the necessary
senior officials. Top management should carry out attendance in steering committee meetings.
Because important decisions regarding the systems are given in the meeting, all the project
steering committee members should always attend the meeting” (Seife & Mesfin, 2015).
2.2. Empirical Literature
Young & Jordan (2008) demonstrated that top management support was a critical determinant of
eventual project success or failure. According to the study result, projects that enjoyed full
support from the top management succeeding whereas those with little to no support from the top
management failed miserably. The study result also supported by Nwakanma et al. (2013) as the
study indicated top management is one of the important factors for the success of IT projects in
Nigeria. The study further discovered that, this critical success factor ensures top level
interaction among project team members and project steering committee members and vendors
to facilitate successful implementation.
Davis (2014) adopted a set of themes in order to describe success factors of projects: cooperation
and communication, timing, identifying objectives, stakeholder satisfaction, acceptance and use
of final products, cost aspects, competencies of the project manager, strategic benefits of the
project and top management support. However, the study was based on theoretical point of view
and considered perceptions of some senior management, project core team and project recipient
stakeholder groups and the study lacks of agreement in perceptions of project success factors
between these groups, highlighting discontinuity between them. Thus, empirical research into
multiple stakeholder groups' perceptions of project success needs to be conducted.
Ioana & Emil (2015) presented an overview on the topic of project success and identify main
success factors when dealing with projects using a quantitative research. The study output
showed that, success factors determine the positive outcomes of implementing projects. They
have to be identified before projects’ implementation, from the conception phase. However, the
study didn’t clearly identify which specific factors determine the positive outcomes of
implementing projects. In addition, projects environments are dynamic, so success factors might
15
change their level of influence in time, the study didn’t consider the dynamic nature of projects
and the level of influence of success factors in time. Thus, a permanent monitoring of these
factors is needed and whenever necessary the project manager should influence certain factors in
order to increase chances of accomplishing success criteria.
Musau (2015) conducted a study to determine the influence of human resource management,
project scope, project risks management, and vendor selection on the implementation of core
banking system and establish the factors influencing successful implementation of core banking
system in Kenya. The study concluded that human resource management, project scope
management, risk management, and vendor selection greatly influences core banking system
implementation in Kenya.
Seife & Mesfin (2015) in their findings on the study of core banking system implementation
framework in the Ethiopian banking industry proposed that, the critical success factors identified
such as: product selection, top management support, product evaluation, project management and
vendor commitment were used to design an implementation framework for core banking system
in Ethiopian banking system. The study of Seife & Mesfin (2015) further formulated a guideline
on how to execute the critical factors and emphasized on the necessity of these critical factors
towards a successful core banking system implementation. However, the study didn’t
investigated and extensively validated the influence of the factors considered in the designed
framework on the implementation of core banking system project in Ethiopia.
Mangwanda et al. (2016) sought to evaluate the factors influencing implementation of Temenos
T24 core banking system in Rwanda. The study clarified significance of: dependencies between
organization structures, human resource factors, technical competencies and project risk
management. The study result indicates that there is a correlation between the factors influencing
implementation of T24 core banking system such as organization structures, human resource
factors, technical competencies and project risk management and implementation of T24 core
banking system. However, successful projects are not only depend on organization structures,
human resource factors, technical competencies and project risk management but also various
determinants including complexity, duration of development, available budget and the desired
quality of the project.
According to Negalign & Lisanwork (2016) study findings; security issues, empowering
employees to use the new system, vendor capabilities and credentials, risk of the software
16
capability to meet banks requirements and expectations, unavailability of the diverse skills
required and data migration were the challenges banks facing in the process of new core banking
system development in Ethiopia. In addition, lack of suitable legal and regulatory framework for
core banking and electronic payment is another impediment for the adoption of new technology
in the Ethiopia banking industry (Negalign & Lisanwork, 2016). However, The study focused
only on the development and challenges of core banking system project implementation in
Ethiopia and did not identified the factors influencing the implementation of core banking
system project.
Stephen & Patricia (2017) in their study concluded that, project management is emerging trend
as one of the key strategies for creating a digital bank setting, qualification in terms of
professional training in project management would further boost the overall effectiveness of the
team, user participation is important in early stages of system development as a way of
increasing later acceptance of the final project, top management support needs to be focused on
the realization of benefits from all IT projects rather than the narrowly defined project activities.
However, the determinants considered in this study are not exhaustive and, further studies need
be done to unearth other determinants influencing implementation of information technology
projects.
2.3. Research Gap
various researches have been conducted and come up with multiple factors affecting
project success, no research can claim to have exhausted all the factors affecting project success.
Furthermore, there is little research in Ethiopia that addresses core banking projects
implementation issues in Ethiopia. For example, a research result on the core banking system
project implementation framework in case of Ethiopia is presented in Seife & Mesfin (2015).
There is also a research on the development of core banking system challenges and prospects in
Ethiopia (Negalign & Lisanwork, 2016). However, no research was done before on the factors
influencing the implementation of ore banking system project in Ethiopia considering the factors
which the available literature calls for. Therefore, this research study sought to investigate the
factors influencing the implementation of ore banking system project in Ethiopia by considering
the factors available in the existing literature in case of Commercial Bank of Ethiopia.
17
2.4. Conceptual Framework
In this study the dependent variable is successful core banking system project implementation
while the independent variables are the determinants of core banking implementation which are:
Project Scope Management i.e. clear requirement and specifications, user acceptance test and
scope creep management; project manager competence i.e. skills and experience; Stakeholder
management i.e. vendor and user involvement; and Top Management Support. The factors were
selected after careful review of several articles and adapting the work of Stephen & Patricia
(2017) and Nwakanma et al. (2013).
Implementation of Core Independent Variables

Banking System Project in
CBE
 Core Banking Delivered on  Project Manager Competence

Time  User Involvement
 Vendor Involvement
 Core Banking Completed  Project Scope Change
within Cost Management
 Top Management Support
 Core Banking meets Benefits
 Clearly Defined Organizational
Goals and Objectives
Figure 1: Conceptual Framework

Source: Own compilation
18
CHAPTER THREE: RESEARCH METHODS
3.1. Introduction
This section describes how the research work is designed and the methods that the study intends
to employ in carrying out the research undertaking.
3.2. Operational Definition of Variables
3.2.1. Dependent Variable
Core Banking System: This is the use of data processing software application used to support a
bank’s most common transactions that have occurred.
3.2.2. Independent Variable
The operational definition of independent variables for the study as indicated in the project
management body of knowledge (PMI, 2013) described below:
Scope Management: “includes the processes required to ensure that the project includes all the
work required, and only the work required, to complete the project successfully’’.
Users: Involvement: refers to participation of “the persons or organizations who will use the
project’s product, service, or result’’.
Vendor Involvement: refers to participation of “external companies that enter into a contractual
agreement to provide components or services necessary for the project’’.
Project Manager Competence: refers to specific knowledge and skills (what the project
manager knows about project management), performance (what the project manager is able to do
or accomplish while applying his or her project management knowledge.) and Personal
effectiveness (encompasses attitudes, core personality characteristics, and leadership, which
provides the ability to guide the project team while achieving project objectives and balancing
the project constraints).
Top Management: A manager with demonstrable interest in the outcome of the project who is
ultimately responsible for securing spending authority and resources for the project.
Goals and Objectives: refers to the specific performance and requirements expected from the
project implementation process.
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3.3. Research Design
As the overall aim of the study is to investigate the factors influencing the successful
implementation of core banking system project, the study involved a cross-sectional survey
methodological approach as data was gathered once over a period of time from individuals who
participated in T24 core banking system project implementation in commercial bank of Ethiopia.
3.4. Target Population and Sample
Commercial Bank of Ethiopia has an established Program Management Office (PMO) headed by
a director and report directly to the president. The responsibilities of a PMO can range from
providing project management support functions to responsibility for the direct management of
IT projects.
The overall responsibilities of the PMO are: planning, scheduling and implementation of IT
projects; follow up IT projects activities and take corrective measure as required or escalate
timely to the PMO’s sponsor or president; ensure that all personnel involved in the project
understand the project’s background objectives, scope, time scale and approach; ensure the
proper knowledge transfer is made to the information services staff on the IT projects
implemented; and ensure that consultant inputs and advices are implemented accordingly.
The target population of the study comprises project management experts and professionals who
are actively involved in T24 Core Banking system project implementation in CBE. According to
the data obtained from PMO, a total of 116 employees constitute the target population of the
study. Therefore, because of manageable size of the target population the researcher incorporated
all of these project management professionals. So the total population is equal with the sample
size.
3.5. Data Type and Source
Based on the objectives of the study, the study used both qualitative and quantitative type of data
to investigate the factors influencing the implementation of core banking system project in CBE.
The study mainly used primary data source. Employees of the bank who are actively participated
in the Core Banking implementation process were the main sources for the primary data.
20
3.6. Data Collection Techniques and Procedure
3.6.1. Data Collection Methods
To achieve the study purpose, personally administered structured questioner used based on the
factors identified referring to the previous literature and based on objective of the study. This
study is carried out using structured questionnaire. As stated by Sekaran (2003) “questionnaire is
a popular method of collecting data because researchers can gather information fairly easily and
the questionnaire responses are easily coded”.
3.6.2. Data Collection Procedures
The structured questionnaire seeks data in relation to the variables of the study namely: clear
organizational goals and objectives, project scope management, project manager competence,
vendor and user involvement, and top management support.
The study asked participants response on the success of core banking system project
implementation in CBE based on the identified project success measurement indicators and on
the factors influencing the successful implementation of core banking system project based on
the identified factors using a nominal scale such as “Yes” or “No”.
In addition, the respondents are asked to rate the degree of their agreement or disagreement on
the factors identified for successful core banking system project implementation based on a five
point scale. The rating scale was as follows: 5= Strongly Agree, 4=Agree, 3= Neutral,
2=Disagree and 1= Strongly Disagree.
The target respondents were Project management officers, project management experts, project
managers, and project management team leaders, since they are directly involved with the core
banking system. Finally, the study asked participants opinion about other factors influencing the
successful implantation of core banking system project in CBE using open ended questions.
3.7. Data Processing and Analysis
3.7.1. Data Processing
Prior to data analysis the data collected trough questionnaire are carefully edited, coded,
classified, tabulated and checked for consistency.
21
3.7.2. Data Analysis
The study mainly employed quantitative method of data analysis. The quantitative analysis of the
study employed both descriptive and inferential analysis. As a part of descriptive statistics,
measures of central tendency and measures of dispersions (frequency, percentage, mean and
standard deviation) are used as a preliminary analysis.
As a part of inferential analysis, regression is used. Finally, in order to ensure error free
computation, Statistical Package for Social Sciences (SPSS) version 20 software is used. The
justification of this methodology is based on the fact that study papers available where the
factors considered in this research have been established (See: Nwakanma et al., 2013; Seife &
Mesfin, 2015; Mangwanda et al., 2016; and Stephen & Patricia, 2017).
The data obtained from open ended part of the questionnaire that relate the researcher focus and
the research objectives are summarized, analyzed and interpreted.
3.8. Model Specification
The factors influencing the implementation of core banking system project have been analyzed
and studied using various empirical models in the previous literature. So as to understand
whether project success (completed within original cost, delivered within the planned time, and
meet the desired benefits) can be predicted based on the identified project success factors (clear
organizational goals and objectives, project scope management, project manager competence,
vendor and user involvement, and top management support), the study employed binary logistic
regression econometric model.
3.9. Reliability and Validity
To ensure the validity of the data obtained from the questionnaire and to bring meaningful
conclusion from the collected data, the study tested the validity of the measurement instruments.
Hence, to ensure the reliability of measurement instrument the researcher performed first
standardize the instrument and then, distributed the same to all respondents and was not changed
from one person or situation to another. In addition, to assess the internal consistency of each
construct Cronbach’s alpha test is used.
Besides, the researcher believed that this study is valid in that the all respondents are selected
based on their past experience on IT project implementation in general and core banking system
22
project implantation in particular. Hence, their response was expected to be credible and
applicable to independent researcher.
3.10. Ethical Consideration
The research gave due consideration to obtain consent from each participant of the study and it
was conducted on voluntary basis. The researcher tried to respect right and privacy of the
participants for the study. The researcher would like to assure that the findings of the research
are presented without any deviation from the outcome of the research. In addition, the
researchers gave full acknowledgements to all the reference materials used for the study using
the APA referencing.
23
CHAPTER FOUR: RESULTS AND DISCUSSIONS
4.1. Introduction
The main objective of the study is to examine the factors influencing the implementation of core
banking system project and to test the influence of project success factors on project success
indicators. There were 116 questionnaires distributed to selected T24 core banking system
project participants in Commercial Bank of Ethiopia, 108 questionnaires were returned, which
indicated the overall response rate of 93.1 %. All the returned questionnaires were found to be
correctly filled and fit for analysis.
4.2. Demographic Characteristics of Respondents
Demographic characteristic of the respondents was based on gender, level of education, duration
in the bank and the position held by the respondents.
4.2.1. Classification of Respondents by Gender
The study sought to determine the gender of study participants and therefore asked respondents
to indicate their gender. The study found that majority of the respondent as shown by
65.7% were male whereas 34.3% of the respondent were female, this is an indication that
both genders were involved in this study and thus the finding of the study did not suffer from
gender bias.
4.2.2. Classification of Respondents by Level of Education
The study requested respondents to indicate their level of education. From the findings, 63% of
the respondent indicated their education level as Bachelor’s Degree, , whereas 37% of the
respondents indicated their level of education as Masters Degree, this is an indication that
most of the respondents participated in this study had bachelor’s degree as their highest level of
education.
4.2.3. Work Experience of Respondents
The study requested respondents to indicate their duration in the bank. From the findings, 7.4%
of the respondent indicated that they have been working for the bank for a period of over 15
years while 23.1% of the respondent indicated that they have been working for the bank for a
period of 11-15 years. The highest share of respondents (69.4%) indicated that they have been
working for the bank for a period of 6-10 years. This points out that it is recommended to
form experienced project team members for core banking system project implementation.
24
4.2.4. Classification of Respondents by Position
From the study findings majority of the respondents were project management experts, project
managers and project management team leaders forming 66.7% of the total respondents. This
shows that experts were involved in the implementation of the T24 core banking system project
in CBE.
Table 4.1: Demographic characteristics of respondents

Frequency Percent Valid Cumulative
Percent Percent
Sex
Males 71 65.7 65.7 65.7
Females 37 34.3 34.3 100
Total 108 100 100
Level of Education
BA Degree 68 63 63 63
Masters Degree 40 37 37 100
Total 108 100 100
Work Experience
6- 10 Years 75 69.4 69.4 69.4
11- 15 Years 25 23.1 23.1 92.6
Over 15 Years 8 7.4 7.4 100
Total 108 100 100
Position
Project Management Officer 36 33.3 33.3 33.3
Project Management Expert 54 50 50 83.3
Project Manager 6 5.6 5.6 88.9
Project Management Team Leader 12 11.1 11.1 100
Total 108 100 100
Source: Researcher Computation
25
4.3. Reliability Analysis
A reliability analysis was carried out on the perceived task values scale comprising 27 items.
Cronbach’s alpha showed the questionnaire to reach acceptable reliability, α = 0. 898 (see
appendix 2.1) as suggested by Cronbach’s α value of above .8 is preferably to be considered
reliable (Pallant, 2007) and greater than the rule of thumb α value of 0.7 for good as provided by
George and Mallery (2003). Most items appeared to be worthy of retention, resulting in a
decrease or equal in the alpha if the item is deleted.
4.4. Descriptive Analysis
This section presents the descriptive statistics of the factors influencing the successful
implementation of T24 core banking system project and core banking system project success
measurement in terms of completion time, cost and predetermined benefits in CBE.
4.4.1. Descriptive Statistics of Core Banking System Project Success Factors
Previous studies identify the importance of core banking system project determinants for the
successful implementation of core banking system project. Among other determinants,
successful implementation of core banking system is highly dependent on clearly defined goals
and objectives, project manager competence, project scope change management, users’
involvement, vendors’ involvement and support from top management. The specific
respondents’ levels of agreement and the corresponding frequency scale of each of the factors
influencing the implementation of core banking system project described in the following
sections.
4.4.1.1.Defining Organizational Goals and Objectives
Clearly defined organizational goals and objectives are critical factor for successful
implementation of core banking system project (Nwakanma et al. 2013). Three items were
included in the questionnaire to address the issue of defining clear organizational goals and
objectives. Table 4.2 shows the cumulative positive response frequency, cumulative positive
response percentage and the descending orders of 3 items in terms of mean value.
Cumulative frequency scale of positive response 4 (Agree) and 5 (Strongly Agree) of three
items also ranges from 55 to 99 and its grand cumulative frequency score is 81. In other word,
39.2% of participants responded on scale 4, while 35.2% on scale 5. The frequency of scale 4
and 5 are totally occupied 75 % over total frequency. Hence, the majority of the participants gave
26
positive response on defining of clear organizational goals and objectives in implementation of
Table 4.2: Survey result on clarity of organizational goals and objectives
Factors Cumulative Cumulative % Mean SD

Frequency of 4 and 5 of 4 and 5
System Functionalities were clearly 99 91.7 4.42 0.750
Identified
Organizational Goals understood by 89 82.4 4.19 0.826
Project Team
Realistic Objectives were 55 51 3.49 0.932
Established
Average grand cumulative 81 4
frequency of 4 and 5 and means
Formulating realistic objectives, and understanding of those objectives both by the project team
members and by the organization as well as identifying expected system functionalities to be
performed by the core banking system are the cornerstone for successful implementation of core
banking system project (Pinto & Slevin, 1987; and Nwakanma et al. 2013). Failure of
establishing clear goals, objectives, outcomes and benefits expected from the core banking
system finally leads to time and cost overrun.
Mean value of three items range from 3.49 to 4.42 which represent positive response on
measurement scale. The grand mean value is 4 which represent ‘positive response on
measurement scale. The lowest mean value is 3.49 for establishing realistic objectives which is
less than grand mean value of 4. This indicates that failure to establish realistic business
objectives was the factor influenced the successful implementation of core banking system
project amongst the factors on organizational goals and objectives in CBE.
Establishing realistic business objectives has the highest standard deviation of 0.932 which
means that there is ‘somewhat’ more average deviation between individual score and its mean
while question in relation to identification of system functionalities expected from core banking
has lowest standard deviation of 0.750 which indicates the respondent’s score is ‘somewhat’ near
to main or less average deviation between observed values and the mean score.
27
4.4.1.2.The Role of Project Manager Competence
Competent project manager remains absolutely important for successful implementation of

projects under which projects completed within realistic time schedules, reasonable cost and
meets the predetermined benefits. Table 4.3 indicated the cumulative positive response
frequency, cumulative positive response percentage and the descending orders of six items in
terms of mean value in relation to the role of project manager competence for successful
implementation of core banking system project.
Cumulative frequency scale of positive response 4 (Agree) and 5 (Strongly Agree) of six items
also ranges from 35 to 89 and its grand cumulative frequency score is 60. In other word, 33% of
participants responded on scale 4 (Agree), while 22.4% on scale 5 (Strongly Agree). The
frequency of scale 4 and 5 are totally occupied 55.4 % over total frequency. Hence, the majority
of the participants gave ‘somewhat’ positive response on project manager competence in
Mean value of six items range from 2.79 to 4.19. The lowest mean value is 2.79 for project
managers’ time management skill and followed by mean value of 3.13 for project manager’
experience mean value of 3.25 for project manager’ teambuilding ability , which are less than
grand mean value of 3.51. This indicates that the project managers’ time management skill,
experience and team building ability were the factors influenced the successful implementation
of core banking system project in CBE amongst the factors on project manager competence.
Table 4.3: Survey result on project manager competence

Factors Cumulative Cumulative Mean SD
Frequency % of 4 and 5
of 4 and 5
Leading Ability 89 82.4 4.19 0.826
Decision Making Skill 74 68.5 3.90 1.050
Problem Solving Skill 68 63 3.78 1.053
Teambuilding Ability 44 40.8 3.25 0.987
Project Manager Experience 49 45.4 3.13 1.254
Time Management Skill 35 32.4 2.79 1.276
Average grand cumulative frequency 60 3.51
of 4 and 5 and means
28
The mean value of project managers’ leading ability is 4.19 which represent strong level of
positive response on measurement of scale and relatively indicates that the core banking system
project manager have high leadership ability. The mean value of project managers’ decision
making and pproblem solving skill are 3.90 and 3.78 which represent strong positive response on
the level of measurement scale. The grand mean value is 3.51 which also represent strong
positive response on measurement scale. Overall, these results indicate that core banking system
project was implemented under competent and experienced project manager in CBE.
Project managers’ time management skill project managers’ experience has the highest standard
deviation of 1.276 and 1.254 which means that there is more average deviation between
individual score and their mean while project managers’ leading ability has lowest standard
deviation of 0.826 which indicates the respondent’s score is near to main or less average
deviation between observed values and the mean score.
4.4.1.3.Project Scope Change Management
A requirement gathering is an essential part of any project and project management (Stephen &
Patricia, 2017). Implementation of core banking could not come without challenges and
capability of the core banking system software to meet the requirements and expectation is the
greatest challenge in implementation of core banking system project (Negalign & Lisanwork,
2016). Establishing clear project requirements and specifications and effectively testing all the
requirements and specifications of the software are the main ingredients for effective project
scope change management. Table 4.4 shows the cumulative positive response frequency,
cumulative positive response percentage and the descending orders of six items in terms of mean
score.
also ranges from 35 to 84 and its grand cumulative frequency score is 66. In other word, 35.5%
of participants responded on scale 4 (Agree), while 26% on scale 5 (Strongly Agree). The
of the participants gave positive response on project scope change management in
29
Table 4.4: Survey result on project scope change management practice

of 4 and 5
Conducting User Acceptance Testing 84 77.8 4.11 0.824
Project Quality Change Management 84 77.8 4.03 0.859
Clear Project Requirements 77 71.3 3.99 1.009
Clear Project Specifications 77 71.3 3.95 0.980
Project Cost Change Management 41 38 3.08 1.177
Project Time Change Management 35 32.4 2.87 1.169
Individual mean value ranges from 2.87 to 4.11. Average grand mean value of six items is 3.67
which represent ‘somewhat’ positive level of response on measurement of scale. Generally, it
indicates that positive level of project scope change management practice in implementation of
Conducting user acceptance testing, project quality change management, clear project
requirements and clear project specifications with the high mean value of 4.11, 4.03, 3.99 and
3.95, which are also greater than grand mean value of 3.67, represent positive response on
measurement of scale. Therefore, majority of respondents confirmed that there was effective
project scope change management practice in CBE during implementation of core banking
system project in.
The lowest mean score is 2.87 for project time change management practice followed by a mean
value of 3.08 for project cost change management practice, which are also less than grand mean
value of 3.67; represent somewhat low level of response on measurement scale.
Hence, project completion cost and time change management practice were the issues that
required great attention amongst the factors on project scope change management in
30
4.4.1.4.End Users Involvement
Four items were included to address the issue of end users involvement in implementation of
core banking system project in CBE. Table 4.5 shows the cumulative positive response
frequency, cumulative positive response percentage and the descending orders of the items in
terms of mean score.
also ranges from 31 to 102 and its grand cumulative frequency score is 88. In other word,
29.86% of participants responded on scale 4 (Agree), while 28.24% on scale 5 (Strongly
Agree). The frequency of scale 4 and 5 are totally occupied 58.1 % over total frequency. Hence,
the majority of the participants gave somewhat positive response on end users involvement in
Table 4.5: Survey result of end users involvement

of 4 and 5
End Users Training 102 94.4 4.46 0.703
End Users Expectation 68 63 3.82 1.075
End Users Satisfaction 50 46.3 3.27 1.141
End Users Participation 31 28.7 2.83 1.301
Mean value of four items range from 2.83 to 4.46. Generally, the grand mean value is 3.6 which
represent the majority of the participants gave somewhat positive response on end users
involvement in implementation of core banking system project. Therefore, this indicates end
users were involved in implementation of core banking system project in CBE.
End users training and end users expectation with the high mean value of 4.46 and 3.82, which
are also greater than grand mean value of 3.6, represent positive response on measurement of
scale.
The lowest mean values is 2.83 for participation of end users in all stages of core banking system
project implementation and followed by mean value 3.27 for end users were satisfaction in
31
implementation core banking system project respectively, which are also less than grand mean
value of 3.6. Even though, the result indicates and represent somewhat encouraging response on
measurement scale, the issues of end users participation and end users satisfaction in
implementation of core banking system project were the factors influenced the implementation
of core banking system project in CBE amongst the factors on end users involvement.
4.4.1.5.Vendors Involvement
Respondents were asked to indicate vendors’ involvement in implementation of core banking

system project in CBE. Three items, vendors’ support; vendors’ commitment; and vendor
immediate response for the requests raised from the bank were included to address the issue of
vendor involvement. Table 4.6 shows the cumulative positive response frequency, cumulative
positive response percentage and the descending orders of the items in terms of mean score.
also ranges from 77 to 91 and its grand cumulative frequency score is 84. In other word, 40.74%
of participants responded on scale 4 (Agree), while 37% on scale 5 (Strongly Agree). The
of the participants gave positive response on vendor involvement in implementation of core
Table 4.6: Survey result on vendors’ involvement

Frequency % of 4 and
of 4 and 5 5
Vendor Support 91 84.3 4.26 0.847
Vendor Commitment 84 77.8 4.03 0.859
Vendor Response 77 71.3 3.95 0.980
Mean value of three items range from 3.95 to 4.26. The grand mean value is 4.08 which
represent the majority of the participants gave positive response on vendors’ involvement in
implementation of core banking system project. Therefore, this indicates vendors’ were involved
in implementation of core banking system project in CBE. Vendor support with the high mean
32
value of 4.26, which is also greater than grand mean value of 4.08, represent positive response on
measurement of scale.
The lowest mean values is 3.95 for vendors’ immediate response for the requests raised from the
bank and followed by mean value 4.03 for vendors’ commitment, which also indicate and
represent positive response on measurement scale.
4.4.1.6.Top Management Support
Support from top management in terms of top management timely decision, guidance and
support, top management close follow ups and quick interventions and provision of the required
tools and resources helps effective implementation of core banking system project. Five items
were included to address the issue of top management support in implementation of core banking
system project in CBE. Table 4.7 shows the cumulative positive response frequency, cumulative
positive response percentage and the descending orders of the items in terms of mean score.
also ranges from 31 to 103 and its grand cumulative frequency score is 69. In other word,
32.22% of participants responded on scale 4 (Agree), while 31.85% on scale 5 (Strongly
Agree). The frequency of scale 4 and 5 are totally occupied 64 % over total frequency. Hence,
the majority of the participants gave positive response on vendor involvement in implementation
of core banking system project in CBE.
Mean value of the items range from 2.84 to 4.48. The grand mean value is 3.75 which represent
the majority of the participants gave somewhat encouraging response on top management
support in implementation of core banking system project. Therefore, this indicates top
management support of CBE was involved in implementation of core banking system project.
Top management guidance and support, immediate provision of the required tools and resources
and top management close follow up and quick interventions with the high mean value of 4.48,
4.31 and 3.83 respectively, which is also greater than grand mean value of 3.75, represent
positive response on measurement of scale.
33
Table 4.7: Survey result on support from top management
of 4 and 5
Guidance and Support 103 95.3 4.48 0.662
Provision of the Required Tools and 93 86.1 4.31 0.767
Resources
Close follow up and quick interventions 69 63.9 3.83 1.072
Timely Authorization of Business 50 46.3 3.27 1.141
Changes
Timely Decision Making 31 28.7 2.84 1.291
The lowest mean values are 2.84 for top management timely decision making and followed by
mean value 3.27 for top management timely authorization of business changes, which are also
less than grand mean value of 3.75. Even though, the results represent somewhat encouraging
response on measurement scale, the issues of top management timely decision making; and top
management timely authorization of business changes were the factors influenced the
implementation of core banking system project in CBE amongst the factors on top management
support.
4.4.2. Descriptive Statistics of Core Banking System Project Success Measurement
The study sought to measure three project success indicators (realistic schedule time, reasonable
cost, and predetermined benefits) with regards to core banking system project implementation.
Table 4.8 shows the result of the core banking system project completion time, cost and
predetermined benefits in CBE.
Most respondents (80.6%) believe that the independent variable, core banking system project not
completed on realistic time schedule in CBE. Additionally, 61.1% of respondents believe that
core banking system project not completed at reasonable cost in CBE. 83.3% of respondents
believe core banking system project meets the predetermined benefits in CBE.
34
Table 4.8: Core banking system project success measurement indicators in CBE
Success Measurement Criteria Frequency Percent Valid Cumulative
Percent Percent
Core Banking Project Completion Time
Completed on Realistic Schedule 21 19.4 19.4 19.4
Not Completed on Realistic Schedule 87 80.6 80.6 100
Total 108 100 100
Core Banking Project Completion Cost
Completed at Reasonable Cost 42 38.9 71.3 71.3
Not Completed at Reasonable Cost 66 61.1 28.7 100
Total 108 100 100
Core Banking Predetermined Benefits
Meets the Predetermined Benefits 90 83.3 83.3 83.3
Do Not Meets the Predetermined Benefits 18 16.7 16.7 100
Total 108 100 100
The result indicated that core banking system project not completed at reasonable cost and
realistic schedule but meets the desired benefits in CBE. This shows that CBE was successful in
meeting the predetermined benefits driving from the implementation of core banking system
project.
The result further show CBE paid utmost attention in meeting the predetermined benefits driving
from the implementation of the core banking project at the expense of incurring additional
project cost and schedule time. Figure 2 below shows the graphical presentation on the overall
view of the study participants on the success of core banking system project in CBE.
35
100
90
80
70
60
50
Frequency
40
Percent
30
20
10
0
Completed on Not Completed on Not Meets Do Not Meets
Time Completed on Cost Completed on Benefits Benefits
Time Cost
Figure 2: Core banking system project success measurement indicators in CBE
Source: SPSS result, 2018

4.5. Correlations Analysis
Correlation analysis was carried out to consider the relationship between the factors influencing
the successful implementation of core banking system project and project performance. The
variables from 1 to 3 are project successes factors (1=time, 2= cost, and 3= benefit) and the
variable from 4 to 9 (4=goals and objectives, 5=project manager competence, 6=scope change
management, 7= end users involvement, 8=vendors’ involvement and 9=top management
support) core banking success influencing factors.
The results of the analysis in Table 4.9 show that:-
 There is a positive and significant correlation between core banking project completion time
and core banking project completion cost; and core banking project benefits.
 There is a negative and significant correlation between core banking project completion time
and project manager competence; and scope change management.
 There is a positive and significant correlation between core banking project completion cost
of and core banking project benefits.
36
The correlation analysis indicate that the core banking system project implementation in CBE
meets the predetermined benefits at expense of time and with extra cost. Then, the result also
indicates that lack of the IT project management competence of the project manager and
ineffective scope change management practice leads to implement core banking behind the
schedule time in CBE.
Table 4.9: Correlations between project success factors and project performance
1 2 3 4 5 6 7 8 9
1 1
2 .616** 1
.000
3 .220* .306** 1
.022 .001
4 -.046 .136 -.168 1

.640 .160 .082
5 - .218* .017 -.181 .294** 1

.023 .858 .061 .002
6 - .224* -.088 -.018 .198* .534** 1

. 020 .367 .853 .040 .000
7 -.092 .023 -.061 .247* .254* .244* 1

.345 .816 .532 .010 .008 .011
8 -.033 .084 -.105 .073 .125 .297** .229* 1

.736 .389 .281 .453 .198 .002 .017
9 .015 .059 .000 .103 .177 .312** . 508** .348** 1

.881 .541 1.000 .287 .066 .001 .000 .000
**Correlation is significant at the 0.01 level (2-tailed).

*Correlation is significant at the 0.05 level (2-tailed).
Source : SPSS result, 2018
37
4.6. Binary Logistic Regression Analysis
Logistic regression was used to provide knowledge of the strength of identified project success
factors in predicting the probability of core banking project success over the probability of core
banking project failure in CBE. The quality of response for each (six) of the identified project
success factors for logistic regression is calculated by average of each response of the items
belonging to it. Table 4.10 shows the result of each independent variable of the study used for
regression analysis calculated from the average value of each items belonging to it.
Table 4.10: Average response result of independent variables used for regression analysis
Independent Variables Scales Mean
1 2 3 4 5
Clear Goals and Objectives 6(5.6)* 70(64.8) 32(29.6) 4.24
Project manager competence 2(1.9) 41(38) 55(50.9) 10(9.3) 3.68
Project scope change management 3(2.8) 38(35.2) 56(51.9) 11(10.2) 3.69
End users involvement 15(13.9) 33(30.6) 46(42.6) 14(13) 3.55
Vendors’ involvement 4(3.7) 60(55.6) 44(40.7) 4.37
Top management support 6(5.6) 72(66.7) 30(27.8) 4.22
6 (5.6)*, where 6 = frequency and 5.6 = percent, the same applies for all values in the table
4.6.1. Testing Assumptions of Binary Logistic Regression Model
Logistic regression is used to describe data and to explain the relationship between one
dependent binary variable and one or more independent variables (Pallant, 2007). Logistic
regression does not require a linear relationship between the dependent and independent
variables. The error terms (residuals) do not need to be normally distributed. Homoscedasticity
is not required. The dependent variable in logistic regression is not measured on an interval or
ratio scale (Pallant, 2007). However, some other assumptions still apply.
1. To address the issues concerns of sufficiency of the number of cases in the sample and the
number of predicators (independent variables) to include in the model, descriptive statistics
run on each of the predicators, and categories with limited number are deleted.
2. The study checked the presence of the outliers before analysis. To identify the outliers the
information in descriptive table is used to compare the two mean values (mean and 5%
38
trimmed mean), too different values and all extreme outliers are removed from the data file.
Finally mean imputation method is used to fill the missing values as a result of deletion.
3. Logistic regression requires the model should have little or no multicollinearity. To check for
inter correlations among the variables and for multicollinearity problem, collinearity
diagnosis was done and those variables having high correlations with other items in the
model are reconsidered and removed. The larger the value of VIF, the more troublesome or
collinear the variables and as a rule of thumb a VIF greater than 10 is unacceptable (Gujarati,
2004).
In the collinearity diagnostic test result whose tolerance values that are very low (less than
0.1) and the variance inflation factor (VIF) value of above 10 indicate that the variables has
high correlations with other variables in the model (Pallant, 2007). Accordingly, for all
variables tolerance values are not less than 0.1. This is also supported by VIF value for all
variables are well below the cut-off 10. This indicated there are no or little correlations
among the variables (see appendix 3). Therefore, all variables are included in the model.
4.6.2. The Influence of Project Success factors on Realistic Project Completion Time
To study the success of core banking system project in terms of realistic schedule time, the
predicators’ (goals and objective, project manager competence, scope change management, end
users involvement, vendors’ involvement and top management support) are used according to the
response of the study participants.
The results with only the constant included before any coefficients (i.e. those relating to goals
and objective, project manager competence, scope change management, end users involvement,
vendors’ involvement and top management support) are entered into the model. The table in
block 0 suggests that if nothing known about our variables the correct prediction core banking
system project would not completed within realistic schedule time would be 80.6%.
39
The variables not in the equation table indicate whether each independent variable improves the
model. The results show that only scope change management is significant and able to contribute
to the prediction of the model.
All the six variables are entered at the same time providing only one model to compare with
the constant model to measure if improvement in the predictive power of the model exists or
not. The classification table in block 1 shows how the classification error rate has changed from
block 0 when the predictors are included in the model. The result indicates that by adding the
variables we can now predict with 81.5% accuracy (see Classification Table in block 1) which is
a very little improvements from the original value of 80.6%.
Binomial logistic regression estimates the probability of an event occurring. If the estimated
probability of the event occurring is greater than or equal to 0.5 (better than even chance), the
statistics classifies the event as occurring (in this case, completion of core banking on reasonable
schedule time). If the probability is less than 0.5, the statistics classifies the event as not
occurring (core banking not completed on reasonable schedule time). In the study, only one case
found with an estimated probability of 0.53664 which classifies the event as occurring with a
correct prediction of only 4.8%. This indicates that CBE not completing its core banking system
project on realistic schedule time.
To check for model fit, we need to evaluate the significance as well using statistical tests for
model fit and whether each of the independent variables included make a significant
contribution to the model. The overall significance is tested using the model Chi square,
which is derived from the likelihood of observing the actual data under the assumption that the
model that has been fitted is accurate. There are two hypotheses to test in relation to the
overall fit of the model:
H0: The model is a good fitting model.
H1: The model is not a good fitting model (i.e. the predictors have a significant effect).
40
Omnibus Tests of Model Coefficients
Chi-square df Sig.
Step 7.977 6 .240
Step 1 Block 7.977 6 .240
Model 7.977 6 .240
In our case, the Omnibus Tests of Model Coefficients has 6 degrees of freedom, a value of
7.977 and a probability of p > 0.05. Thus, the result indicates that the model has a good fit,
containing only the constant. This also further indicates that the predictors do not have a
significant effect and do not essentially create a different model.
Model Summary
Step -2 Log likelihood Cox & Snell R Square Nagelkerke R Square
1 98.425a .071 .114
a. Estimation terminated at iteration number 5 because parameter estimates changed by less

than .001.
The model summary table contains the Cox and Snell’s R-Square and Nagelkerke R-Square
values, which are both methods of calculating the explained variation. The Cox and Snell’s R-
Square value in the model summary Table indicates that only 7.1% of the variation in the
dependent variable is explained by the logistic model. The Nagelkerke R-Square
modification indicates a little bit improvement, but still weak relationship of 11.4% between the
predictors and the prediction.
As an alternative to model chi square, the Hosmer and Lemeshow test is used. If the H-L
goodness-of-fit test statistic is greater than 0.05, as we want for well-fitting models, we
fail to reject the null hypothesis that there is no difference between observed and model-
predicted values, implying that the model’s estimates fit the data at an acceptable level. That is,
well-fitting models show non-significance on the H-L goodness-of-fit test. This desirable
outcome of non-significance indicates that the model prediction does not significantly differ
from the observed.
41
Our H-L statistic has a significance of .308 which means that it is not statistically significant and
therefore our model is a good fit.
Hosmer and Lemeshow Test

Step Chi-square Df Sig.
1 9.428 8 .308
Rather than using a goodness-of-fit statistic, we often want to look at the proportion of cases we
have managed to classify correctly. For this we need to look at the classification table , which
tells us how many of the cases where the observed values of the dependent variable were
1 or 0 respectively have been correctly predicted.
In the block 1 Classification table, the columns are the two predicted values of the
dependent, while the rows are the two observed (actual) values of the dependent. In this
study, only 4.8% were correctly classified for the core banking completed on realistic schedule
time group and 100% for the core banking not completed on realistic schedule time group.
Overall 81.5% were correctly classified. This is a very low improvement on the 80.6% correct
classification with the constant model so we know that the model with predictors is not as
such significantly better mode.
But the predictor variable (s) responsible for a slight improvement is obtained from variables in
the equation table. Accordingly, when we look closely to the predictors to determine if they are
significant, only one of the predicators made a unique statistically significant contribution to the
model (scope change management).
When we assess the Wald statistics result to take the significance values and if less than
.05 reject the null hypothesis as the variable does make a significant contribution. In this
case, we note that project scope change management contributed significantly to the
prediction (p = .036, p<0 .05) but others did not (p >0 .05).
Therefore, other independent variables from the model when their effect is not significant by
the Wald statistic (in this case clearly defined goals and objective, project manager competence,
end users and vendors’ involvement and top management support).
42
Table 4.11: Logistic Regression Predicting Likelihood of Reporting Core Banking Project
Completed on Realistic Schedule Time
Variables in the Equation
B S.E. Wald df Sig. Exp(B)
Objectives .117 .560 .044 1 .835 1.124
Competence .154 .606 .065 1 .799 1.166
Scope -1.311 .625 4.397 1 .036 .269
a
Step 1 Users -.450 .367 1.505 1 .220 .637
Vendor .118 .518 .052 1 .819 1.126
Management 1.069 .784 1.862 1 .172 2.913
Constant -1.229 3.114 .156 1 .693 .293
a. Variable(s) entered on step 1: Objectives, Competence, Scope, Users, Vendor, and
Management.
The Exp (B) column in the Table 4.11 presents the extent to which raising the
corresponding measure influences the odds ratio. We can interpret Exp (B) in terms of the
change in odds. If the value exceeds 1 then the odds of an outcome occurring increase; if the
figure is less than 1, any increase in the predictor leads to a drop in the odds of the outcome
occurring. In these results, the response indicates whether core banking system project completed
on realistic schedule time and the predictors indicates whether the project implemented on
clearly defined goals and objectives, competent project manager, effective scope change
management, end users and vendors’ involvement and support from top management.
The odds ratio of .269 for project scope change management was less than 1, indicating that for
every additional effort exerted on project scope change management quality in CBE, there was
approximately a 21.1% (26.9% - 4.8 %) improvement in probability of completion of core
banking system project on realistic schedule time.
43
Step number: 1
Observed Groups and Predicted Probabilities
8 + C +
I C I
I CC I
F I CC I
R 6 + C NN +
E I C NN I
Q I NN NN I
U I NN NN I
E 4 + CNNNNNNN NN CC N N +
N I CNNNNNNN NN CC N N I
C I NNNNNNNNCNN CNC NNC N N I
Y I NNNNNNNNCNN CNC NNC N N I
2 + NNNNNNNNNNNNN NNN NNCNCNN NCN C C +
I NNNNNNNNNNNNN NNN NNCNCNN NCN C C I
I NNNNNNNNNNNNNCNNN NNNNNNNN NNN N NN N NC C C C I
I NNNNNNNNNNNNNCNNN NNNNNNNN NNN N NN N NC C C C I
Predicted ---------+---------+---------+---------+---------+---------+---------+---------+---------+----------
Prob: 0 .1 .2 .3 .4 .5 .6 .7 .8 .9 1
Group: NNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC
Predicted Probability is of Membership for Completed on Time

The Cut Value is .50
Symbols: N - Not Completed on Time
C - Completed on Time
Each Symbol Represents .5 Cases.
Figure 3: Classification plot for realistic project completion time.
The classification plot of predicted probabilities is another very useful piece of information
which provides a visual demonstration of the correct and incorrect predictions. The ‘plot of
observed groups and predicted probabilities’ in figure 3 indicates that the predictions are
clustered at ‘N (not completed on time), well-differentiated with cases and very few predictions
close to the cut point, showing correct classifications around the cut point which is a good model
fit.
The case-wise list table produces a list of cases that didn’t fit the model well. Only six cases falls
into this category and therefore the model is reasonably sound. These are few respondents who
did not fit the general pattern.
4.6.3. The Impact of Project Success factors on Reasonable Project Completion Cost
To study the success of core banking system project in terms of reasonable completion cost, the
predicators’ (goals and objective, project manager competence, scope change management, end
44
users involvement, vendors’ involvement and top management support) are used according to the
response of the study participants.
system project would not completed within reasonable cost would be 61.1%.
model. The results show that none of the independent variables are significant and not able to
contribute to the prediction of the model.
variables we can now predict with 63.9% accuracy (see Classification Table in block 1) which is
a very little improvements from the original value of 61.1%.

Chi-square Df Sig.
Step 5.212 6 .517
Step 1 Block 5.212 6 .517
Model 5.212 6 .517
containing only the constant. This also further indicates that the predictors do not have a
significant effect and do not essentially create a different model.
45
Model Summary
1 139.130a .047 .064

a. Estimation terminated at iteration number 4 because parameter estimates changed by less
than .001.

As an alternative to model chi square, the Hosmer and Lemeshow test is used. If the H-L
goodness-of-fit test statistic is greater than 0.05, as we want for well-fitting models, there
is no difference between observed and model-predicted values, implying that the model’s
estimates fit the data at an acceptable level and we fail to reject the null hypothesis. That is,
well-fitting models show non-significance on the H-L goodness-of-fit test. This desirable
from the observed.
Our Hosmer and Lemeshow test statistic has a significance of .231 which means that it is not
statistically significant and therefore our model is a good fit.

Step Chi-square df Sig.
1 10.506 8 .231
Our Hosmer and Lemeshow test statistic has a significance of .231 which means that it is not
Rather than using a goodness-of-fit statistic, we often want to look at the proportion of cases we
have managed to classify correctly. For this we need to look at the classification table , which
tells us how many of the cases where the observed values of the dependent variable were
46
1 or 0 respectively have been correctly predicted. In this study, 23.8% were correctly
classified for the core banking completed on realistic schedule time group and 89.4% for the core
banking not completed on realistic schedule time group.
Overall 63.9% were correctly classified. This is a very low improvement on the 61.1% correct
classification with the constant model so we know that the model with predictors is not as
such significantly better mode.
statistics classifies the event as occurring (in this case, completion of core banking at reasonable
cost). If the probability is less than 0.5, the statistics classifies the event as not occurring (core
banking not completed at reasonable cost). In the study, seventeen cases found with an estimated
probability of greater than or equal to 0.5 which classifies the event as occurring with a correct
prediction of only 23.8%. This indicates that CBE is not completing its core banking system
project at reasonable cost.
Table 4.12: Logistic Regression Predicting Likelihood of Reporting Core Banking Project
Completed at Reasonable Cost
Objectives .324 .446 .528 1 .468 1.382
Competence .814 .515 2.496 1 .114 2.257
Scope -.975 .515 3.588 1 .058 .377
Step 1a Users -.190 .294 .418 1 .518 .827
Vendor .209 .421 .247 1 .619 1.233
Management .506 .615 .677 1 .410 1.659
Constant -3.504 2.362 2.200 1 .138 .030
Management.

When we look closely to the predictors to determine if they are significant or not, the results in
the variables equation table show that none of the independent variables are significant and not
able to contribute to the prediction of the model similar to the constant model.
47
0.05 reject the null hypothesis as the variable does make a significant contribution. In this
case, from the variables in the equation table we note that none of the variables contributed
significantly to the prediction (p >0 .05).
Step number: 1
8 + +
I I
I C C I
F I C C I
R 6 + N C CC +
E I N C CC I
Q I N C N NC C C CC I
U I N C N NC C C CC I
E 4 + N N NN NCCC C CNC +
N I N N NN NCCC C CNC I
C I N N NNC NNCNCCN NNC C C C I
Y I N N NNC NNCNCCN NNC C C C I
2 + N N CNNC NNNCNCCNNNNN NC C N C C +
I N N CNNC NNNCNCCNNNNN NC C N C C I
I N NCNC NNNNNNNNNNNNCNNNNNNNN NN CN CNNNN CNC C I
I N NCNC NNNNNNNNNNNNCNNNNNNNN NN CN CNNNN CNC C I
Predicted ---------+---------+---------+---------+---------+---------+---------+---------+---------+----------
Prob: 0 .1 .2 .3 .4 .5 .6 .7 .8 .9 1
Group: NNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC
Predicted Probability is of Membership for Completed at Reasonable Cost

Symbols: N - Not Completed at Reasonable Cost
C - Completed at Reasonable Cost
Figure 4: Classification plot for reasonable project completion cost.

observed groups and predicted probabilities’ in figure 4 indicates that the majority of the
predictions are clustered at ‘N’ (not completed at reasonable cost), well-differentiated with cases
and only few predictions are clustered at ‘C (completed at reasonable cost), showing correct
classifications around the cut point which is a good model fit. Finally, the case-wise list table
didn’t produce a list of cases that didn’t fit the model. Therefore, the model is reasonably sound
and all the respondents found fit the general pattern.
48
4.6.4. The Impact of Project Success factors on Meting Predetermined Benefits
To study the success of core banking system project in terms of meeting the predetermined
benefits, the predicators’ (goals and objective, project manager competence, scope change
management, end users involvement, vendors’ involvement and top management support) are
used according to the response of the study participants.
system project would not completed within realistic schedule time would be 83.3%.
model. The results show that none of the independent variables are significant and not able to
contribute to the prediction of the model.
variables we can now predict exactly the same with 83.3% accuracy (see Classification Table in
block 1) which is a no improvements from the original model.

Chi-square Df Sig.
Step 6.052 6 .417
Block 6.052 6 .417
Step 1
Model 6.052 6 .417

containing only the constant indicating that the predictors do not have a significant effect.
49
Model Summary
1 91.269a .054 .092
a. Estimation terminated at iteration number 5 because parameter estimates changed by less than
.001.
If the H-L goodness-of-fit test statistic is greater than 0.05, as we want for well-fitting
models, there is no difference between observed and model-predicted values, implying that the
model’s estimates fit the data at an acceptable level and we fail to reject the null hypothesis.
That is, well-fitting models show non-significance on the H-L goodness-of-fit test. This desirable
from the observed.
The H-L test statistic in our model has a significance of .292 which means that it is not

Step Chi-square df Sig.
1 9.626 8 .292
We often want to look at the proportion of cases we have managed to classify correctly, rather
than using a goodness-of-fit statistic we need to look at the classification table , which tells
us how many of the cases where the observed values of the dependent variable were 1 or
0 respectively have been correctly predicted. In this study, 100% were correctly classified for
the core banking project meets the predetermined benefits group. Overall 83.3% were correctly
classified. This is a similar classification with the constant model so we know that the
model with predictors is same mode.
50
statistics classifies the event as occurring (in this case, core banking project meets the
predetermined benefits). If the probability is less than 0.5, the statistics classifies the event as not
occurring (core banking project do not meets the predetermined benefits). In the study, all cases
found with an estimated probability of greater than or equal to 0.5 which classifies the event as
occurring with a 100% correct prediction. This indicates that CBE is meeting its predetermined
benefits from implementation of core banking system project.
Table 4.13: Logistic Regression Predicting Likelihood of Reporting Core Banking Project Meets
the Predetermined Benefits
Objectives -.768 .609 1.590 1 .207 .464
Competence -1.116 .708 2.483 1 .115 .328
Scope .481 .659 .533 1 .465 1.618
Users .045 .391 .013 1 .908 1.046
Step 1a
Vendor .096 .546 .031 1 .860 1.101
Management .243 .808 .090 1 .764 1.275
Constant 5.586 3.030 3.398 1 .065 266.772

Management.
When we look closely to the predictors to determine if they are significant or not, the results in
the variables equation table show that none of the independent variables are significant and not
able to contribute to the prediction of the model similar to the constant model.
0.05 reject the null hypothesis as the variable does make a significant contribution. In this
case, from the variables in the equation table we note that none of the variables contributed
significantly to the prediction (p >0 .05).
51
Step number: 1
8 + M +
I M I
I M M I
F I M M I
R 6 + MM M M M M +
E I MM M M M M I
Q I M MM M MM M M I
U I M MM M MM M M I
E 4 + M MMMMMM MMMMMM M +
N I M MMMMMM MMMMMM M I
C I M M M M M MMMMMM MMMMMM M I
Y I M M M M M MMMMMM MMMMMM M I
2 + MM MM M M MMM DDDMMMMMMMMMM MM +
I MM MM M M MMM DDDMMMMMMMMMM MM I
I MMDDDMMMDMDDMDDMMMDDDDMMMDMMDMMMMDM I
I MMDDDMMMDMDDMDDMMMDDDDMMMDMMDMMMMDM I
Predicted ---------+---------+---------+---------+---------+---------+---------+---------+---------+----------
Prob: 0 .1 .2 .3 .4 .5 .6 .7 .8 .9 1
Group: DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM
Predicted Probability is of Membership for Meets the Predetermined Benefits

Symbols: D - Do Not Meets the Predetermined Benefits
M - Meets the Predetermined Benefits
Figure 5: Classification plot for project meets the predetermined benefits.
observed groups and predicted probabilities’ in figure 5 indicates that the predictions are
clustered at ‘M” (Meets the predetermined benefits), well-differentiated with cases and no
predictions close to the cut point, showing correct classifications to the cut point which is a good
model fit.
The case-wise list table above produces a list of cases that didn’t fit the model well. Only three
cases falls into this category and therefore the model is fairly sound. These are very few
respondents who did not fit the general pattern.
52
4.7. Factors Influencing Implementation of Core Banking System Project
In response to a subjective question in the questionnaire, respondents indicated that several other
factors influence successful implementation of T24 core banking system project in CBE. As per
the study results, the factors which influence successful implementation of core banking system
project in CBE can be grouped into the following two major themes: external and internal
factors.
4.7.1. External Factors
 Infrastructural Development
This is a broad sector that encompasses a range of crucial service like; Telecommunications and
electric power. The issue here is not only the existence and availability of these services but also
the quality of service provided as this factor is of paramount importance to core banking system
project success or failure. Wherever, the need exists for these services it is not their mere
existence or availability only that should be assessed but also their quality, consistency and
reliability needs to be ensured.
 Regulatory Requirements
Central bank (NBE) requirements of the core banking system implementation
4.7.2. Internal Factors
 Project Sponsors
In CBE, IT projects are sponsored by board of directors (BOD). Client selection decision is the
full jurisdiction of the financer (BOD). Hence, the capacity problems of such a BOD influence
the successful implementation of core banking system project. It can, therefore, be considered
that it is a factor that influences the successful implementation of core banking system project.
 Human Resource Management

Effective human resource management practices in general; and availability of adequate, skilled
and experienced manpower in the organization and giving rewards and recognition to project
team members contribution in particular greatly influences successful implementation of projects
and core banking system projects too.
 Risk Management
The risk identification, assessment, monitoring and the overall risk mitigation and control measures
greatly influences implementation of core banking system projects.

53
4.8. Results Summary
The study conducted survey of project management experts who are actively involved in T24
Core Banking system project implementation in CBE (using self administered questionnaires).
The survey had a response rate of 93.1 %. 65.7% of the study respondents were males while the
remaining 34.3% were females. 63% of the respondents had Bachelor’s Degree, whereas 37% of
the respondents had Masters Degree.
A Likert scale measure of average response on project success measurement indicators the
highest share (80.6%) of study participants indicated that core banking system project was not
completed on realistic schedule time in CBE. In addition, the majority (61.1%) of respondents
indicated that core banking system project was not completed at reasonable cost in CBE.
Whereas, the majority (83.3%) of respondents indicated that core banking system project meets
the predetermined benefits of CBE.
The result of a Likert scale measurement on the factors influencing the successful
implementation of core banking system project in CBE indicated that, prior identification of core
banking system functionalities, understanding of organizational goals by the core banking project
implementation teams; establishment of realistic business objectives; project managers’ leading
ability, decision making and problem solving skills; conducting user acceptance testing, project
quality change management practice, prior identification of core banking system project
requirements and specifications; end users training and expectations; vendors’ support,
immediate response and commitment; top management guidance and support, immediate
provision of the required tools and resources and close follow up and quick interventions were
adequately performed in implementation of core banking system project in CBE.
On the other hand, project managers’ time management skill, experience and team building
ability; project time and cost change management practice; end users participation and
satisfaction; top management timely decision making and timely authorization of business
changes were poorly performed in implementation of core banking system project in CBE.
Correlation analysis was carried out to expresses the relationship between the factors influencing
the implementation of core banking system project (independent variables) and core banking
project performance (dependent variables) in CBE. The results indicate that there was a negative
and statistically significant relationship exists between core banking project performance
(completion time) and project manager competence; and scope change management in CBE.
54
The subjective response of the study participants indicated that the internal factors such as the
influence from board of directors (BOD), human resource (HR) and risk management practices;
and the external factors such as infrastructural development and regulatory requirements are the
factors need to be considered in implementation of core banking system project.
To identify the factors that predict successful implementation of core banking system project (on
realistic schedule time, at reasonable cost budget and in meeting the predetermined benefits) in
CBE and to test the hypothesis of the study, a binary logistic regression analysis was conducted,
simultaneously clearly defined goals and objectives, project manager competence, project scope
change management, users and vendors’ involvement and top management support into the
model.
The model explained approximately 11.4% (Nagelkerke R2) of the variance in core banking
project completion on realistic schedule time was accounted for by the predictors and indicated a
weak relationship. The model also classifies the event as occurring (completion of core banking
system project on realistic schedule time) with a correct prediction of only 4.8% and the event as
not occurring (core banking system project not completed on realistic schedule time) with a
100% correct prediction and showing an overall prediction success of 81.5%. The Wald criterion
demonstrated that only project scope change management made a significant contribution (p
=.036) to complete core banking system project on realistic schedule time. The Exp (B) value
indicates that, when additional effort exerted on project scope change management quality in
CBE, there was approximately a 21% improvement in probability of completion of core banking
system project on realistic schedule time.
In addition, the model also explained approximately 6.4% (Nagelkerke R2) of the variance in
core banking project completion on reasonable cost was accounted for by the predictors and
indicated a weak relationship. The model also classifies the event as occurring (completion of
core banking system project on reasonable cost) with a correct prediction of only 23.8% and the
event as not occurring (core banking system project not completed at reasonable cost) with
89.4% correct prediction and showing an overall prediction success of 63.9%. The Wald
criterion also demonstrated that none of the predictor variables made a significant contribution to
complete core banking system project at reasonable cost.
The model further explained approximately 9.2% (Nagelkerke R2) of the variance of core
banking system project in meeting its predetermined benefits was accounted for by the predictors
55
and indicated a weak relationship. The model also classifies the event as occurring (core banking
meets the predetermined benefits) with a correct prediction of 100% and there was no
predication for the event as not occurring (core banking system project do not meets the
predetermined benefits) and showing an overall prediction success of 83.3%. The Wald criterion
also demonstrated that none of the predictor variables made a significant contribution to
complete core banking system project at reasonable cost.
56
CHAPTER FIVE: CONCLUSIONS AND RECOMMENDATIONS
5.1. Introduction
On the basis of the findings of the results presented in the preceding chapter, this chapter
constitutes conclusions and recommendations of the study.
5.2. Conclusions
An organization cannot successfully implement a project if it does not consider the influencing
factors for successful project implementation. Ignoring organizational goals and objectives,
project scope change management, project mangers’ competence, end users involvement,
vendors’ involvement and ignoring the support from top management has a great influence on
successful completion of IT projects in general and core banking system projects in particular.
The descriptive analyses ascertain that that core banking system project meets the predetermined
benefits in CBE while it is implemented incurring extra cost and consuming additional schedule
time. Establishment of clear organizational goals and objectives i.e., prior identification of
system functionalities, implementation teams understanding of those goals and objectives,
establishment of realistic business objectives; assignment of competent project manager i.e.,
project managers’ having leading ability, decision making and problem solving skills; scope
change management i.e., prior identification of core banking system project requirements and
specifications, project quality change management and user acceptance testing; end users
involvement i.e., end users training and expectations; vendors’ involvement i.e., vendors’
commitment, support and immediate response; and top management support i.e., guidance and
support, provision of the required tools and resources and close follow up and quick
interventions experienced effectively in core banking system implementation in CBE.
The analysis also ascertain that core banking system project implementation in CBE experienced
ineffective project managers’ time management skill, experience and team building ability;
project time and cost change management practice; end users participation and satisfaction; top
management timely decision making and timely authorization of business changes.
Correlation coefficients between core banking project performance and project manager
competence; and scope change management are found significantly negative. Logistic model
confirm that project scope change management made a significant contribution to successful
completion of core banking system project within realistic schedule time in CBE we reject the
57
null hypothesis (Ho1) which states there is no significant influence of the project success factors
on core banking system project completion time in CBE and accept the alternate hypothesis
(Ha1) which states there is significant influence of the project success factors on core banking
system project completion time in CBE.
The logistic regression result also confirm that there is no significant influence of the project
success factors on core banking system project completion cost, we accept the null hypothesis
(Ho2) which states there is no significant influence of the project success factors on core banking
system project completion cost and reject the alternate hypothesis (Ha2) which states there is
significant influence of the project success factors on core banking system project completion
cost in CBE.
The logistic regression further confirm that there is no significant influence of the project success
factors on core banking system project benefits, we accept the null hypothesis (Ho3) which
states there is no significant influence of the project success factors on core banking system
project benefits and reject the alternate hypothesis (Ha3) which states there is significant
influence of the project success factors on core banking system project completion cost in CBE.
5.3. Recommendations
Based up on the study‘s findings and conclusions the following recommendations are proposed for
practice.
In order to successfully implement a core banking system project (within cost, time and quality),
banks need to:
 Establish realistic organizational goals and objectives; and ensure the goals and objectives
clearly understood by project implementation teams;
 Clearly identify the system functionalities expected from the implementation of core banking
system project;
 Ensure that the implementation team need to clearly understand those goals and objectives;
 Assign a project manger having leading and effective team building ability; decision making,
problem solving and time management skill; and IT project management experience;
 Assign skilled and experienced project team members and provide rewards and recognition
to their contribution;
58
 Have a clear plan based on effective project scope change management. The scope change
management process needs also to have clear requirements and specifications; consider time,
cost and quality change management; and have plan to conduct end users acceptance testing;
 Involve end users so as to have prior identification of their expectations from the system, to
clearly inform the benefits of their participation during implementation process, to provide
sufficient training to effectively use the system and to assure their level of satisfaction on
continual bases;
 Involve system vendors’ and have a plan so as to assure vendors’ commitment, the required,
agreed and expected support and the requirement of immediate response for the requests
once the system has been adopted;
 Ensure the necessary support in terms of tools and resources; guidance and support; and
timely authorization and decision making from top management;
 Ensure the availability and consistency of basic infrastructures;
 Cross check for the existence of any regulatory requirements and ensure that it is
inconformity with the requirements;
 Go through with project sponsors requirements and directions; and
 Design and implement project risk management program so as to effective identify, assess,
monitor and control risk in the implementation process.
5.4. Future Areas of Research
The main focus of this research was on investigating the factors influencing the implementation
of core banking system project in CBE using selected variables and project participants.
However, there are so many variables that were not included in this study. Thus, future
researchers are recommended to undertake similar study by including end users and considering
additional variables.
59
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63
APPENDICES
Appendix 1: Questionnaire
Dear respondents,
The purpose of this study is to investigate the factors influencing the implementation of T24 core
banking system project in Commercial Bank of Ethiopia (CBE). To this end, the study intends to
gather data from selected participants through a self administered questionnaire. The
participation is fully voluntary and responses will be confidential. The results will also be
reported without compromising the anonymity of respondents.
I would appreciate your favorable consideration in completing the questionnaire and assisting me
in the research endeavor.
No need of Writing Your Name.
Thank you in advance!
Sirak Aynalem Argaw
64
Section One: Participants Profile
Instruction: Please put a tick (√) mark inside the box of your choice.
1. Gender: Male Female

2. Your Level of Education:
A. BA Degree B. Masters Degree
C. Other, please specify: _________________________________
3. Your Work Experience in CBE:

A. Less than or equal to 5 Years
B. 6-10 years
C. 11-15 years
D. Above 15 years
4. Your Position in CBE in implementation of T24 core banking system project:
A. Project Management Officer
B. Project Management Expert
C. Project Manager
D. Project Management Team Leader
E. Other, please specify:_________________________________
Section Two: T24 Core Banking System Project Success Indicators

Instruction: Please consider the T24 Core Banking system project implemented in your
organization and indicate your opinion to the following project success measurement
indicators by putting a tick (√) mark on your choice.
1. Does the T24 core banking system project completed on realistic scheduled time in CBE?
Yes No
2. Does the T24 core banking system project completed at reasonable cost in CBE?
Yes No
3. Does the T24 core banking system project meets the predetermined benefits of CBE as per
the requirements?
Yes No
65
Section Three: Factors Influencing Implementation of Core Banking System Project
Instruction: Please consider the T24 Core Banking system project implemented in your
organization and answer the following question by putting a tick (√) mark on your choice using
the given scale.
No. Description Strongly Agree Neutral Disagree Strongly

Agree (5) (4) (3) (2) Disagree
(1)
1. Factors on Organizational Goals and Objectives
1.1 Organizational goals and objectives were clearly
understood by the project team members in
implementation of T24 core banking system project
in CBE.
1.2 Objectives were realistic in implementation of T24
1.3 Expected system functionalities to be performed by

the system project were clearly identified in
in CBE.
2. Factors on Project Manager Competence
2.1 The project manager has leading ability in
in CBE.
2.2 The project manager has team building ability in
in CBE.
2.3 The project manager has time management skill in
in CBE.
2.4 The project manager has problem solving skill in
in CBE.
2.5 The project manager has decision making skill in
in CBE.
66
2.6 The project manager has project management
experience in implementation of T24 core banking
3. Factors on Project Scope Change Management
3.1 Project requirements were clear in implementation of
T24 core banking system project in CBE.
3.2 Project specifications were clear in implementation
of T24 core banking system project in CBE.
3.3 User acceptance testing was conducted according to
the specification in implementation of T24 core
3.4 There was effective project completion time change
management in implementation of T24 core banking
3.5 There was effective project completion cost change
3.6 There was effective project desired quality change
4. Factors on End User Involvement
4.1 End users were participated in all stages of T24 core
banking system project implementation in CBE.
4.2 End users expectations were considered in T24 core
banking system project implementation in CBE.
4.3 End users were satisfied by T24 core banking system
project implementation in CBE.
4.4 End users were well trained during implementation
of T24 core banking system project in CBE.
5. Factors on Vendor Involvement

5.1 Vendor supports implementation of T24 core banking
5.2 Vendor was committed in implementation of T24
5.3 Vendor immediately responds to the requests raised
67
from the bank in implementation of T24 core banking
6. Factors on Top Management Support
6.1 Top management makes timely decision in
in CBE.
6.2 Top management gives guidance and support in
in CBE.
6.3 Top management closely follows and quickly
intervenes in implementation of T24 core banking
6.4 Top management provides the required tools and
resources in implementation of T24 core banking
6.5 Top management timely authorizes business process
changes in implementation of T24 core banking
7. What other factors not included in this questionnaire influence successful implementation of
T24 core banking system project in CBE? Please describe your opinion:
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
End of questionnaire!!!
68
Appendix 2: Reliability Analysis
Appendix 2.1: Reliability Statistics Results
Cronbach's Alpha Cronbach's Alpha Based on N of Items

Standardized Items
.898 .899 27
Appendix 2.2: Item- Total Statistics Results
Scale Mean if Scale Variance if Corrected Item- Squared Multiple Cronbach's Alpha
Item Deleted Item Deleted Total Correlation Correlation if Item Deleted
Understood by Project Team 96.34 193.648 .406 . .896
Realistic Objectives 96.12 198.107 .236 . .898
Identified System Functionalities 97.05 195.129 .294 . .898
Leading Ability 96.34 193.648 .406 . .896
Team Building Ability 97.29 193.814 .323 . .898
Time Management Skill 96.76 190.259 .423 . .896
Problem Solving Skill 97.75 182.096 .579 . .892
Decision Making Skill 96.64 191.896 .366 . .897
Project Manager Experience 97.41 180.674 .635 . .891
Project Requirements 96.55 187.596 .544 . .893
Project Specifications 97.45 184.344 .561 . .893
User Acceptance Test 96.43 192.508 .458 . .895
Time change Management 97.67 183.794 .583 . .892
Cost Change Management 96.58 188.881 .513 . .894
Quality Change Management 96.51 193.318 .402 . .896
End Users Participation 96.07 192.256 .559 . .894
End Users Expectation 97.70 182.061 .567 . .892
End Users Satisfaction 96.71 187.253 .518 . .894
End Users Training 97.27 188.385 .446 . .895
Vendor Support 96.28 193.455 .402 . .896
Vendor Commitment 96.58 188.881 .513 . .894
Vendor Response 96.51 193.318 .402 . .896
Timely Decision Making 96.06 192.445 .586 . .894
Top Management Guidance and
Support 97.69 182.139 .570 . .892
Top Management Close Follow-
up 96.70 187.388 .515 . .894
Provision of Tools and Required
Resources 97.27 188.572 .440 . .895
Timely Authorization of Business
Changes 96.23 192.983 .473 . .895
69
Appendix 3: Collinearity Diagnostic Results
Model Collinearity Statistics

Tolerance VIF
Clear Organizational Goals and Objectives .807 1.240
Project Manager Competence .423 2.366
Project Scope Change Management .402 2.490
1
End Users Involvement .603 1.659
Vendors' Involvement .736 1.358
Top Management Support .476 2.100
a. Dependent Variables: T24 Core Banking Completed on time, within Cost and meets benefits
Appendix 4: Logistic Regression Results
Appendix 4.1: Block 0 Classification Table Results for Core Banking Project
Completion Time
Predicted
T24 Core Banking Completed Percentage
Observed on Time Correct
Not Completed Completed
on Time on Time
Not Completed
87 0 100.0
T24 Core Banking on Time
Step Completed on Time
Completed on
0 21 0 .0
Time
Overall Percentage 80.6
a. Constant is included in the model.
b. The cut value is .500
Appendix 4.2: Results of Variables not in the Equation for Core Banking Project Completion Time
Score Df Sig.
Objectives .261 1 .609
Competence 2.281 1 .131
Scope 5.000 1 .025
Variables
Step 0 Users .908 1 .341
Vendor .020 1 .888
Management .013 1 .910
Overall Statistics 7.895 6 .246
70
Appendix 4.3: Block 1 Classification Table Results for Core Banking Project Completion Time
Predicted
T24 Core Banking Percentage
Observed Completed on Time Correct
Completed
on Time
Not Completed on
87 0 100.0
T24 Core Banking Time
Step 1 Completed on Tie Completed on Time 20 1 4.8

The cut value is .500
Appendix 4.4: Case wise List Table for Core Banking Project Completion Time
Case Selected Status Observed Predicted Predicted Temporary Variable
a
T24 Core Group Resid ZResid
Banking
Completed on
Time
5 S C** .138 N .862 2.501
11 S C** .101 N .899 2.979
16 S C** .060 N .940 3.944
31 S C** .144 N .856 2.435
39 S C** .125 N .875 2.647
98 S C** .127 N .873 2.617
a. S = Selected, U = Unselected cases, and ** = Misclassified cases.
b. Cases with studentized residuals greater than 2.000 are listed.
71
Appendix 4.5: Classification Table Results for Core Banking Project Completion Cost
Predicted
within Cost Correct
Observed
Not Completed at Completed at
Reasonable Cost Reasonable
Cost
Not Completed at
66 0 100.0
Reasonable Cost
Step T24 Core Banking
Completed at
0 42 0 .0
Reasonable Cost
Appendix 4.6: Results of Variables not in the Equation for Core Banking Project Completion Cost
Score Df Sig.
Objectives .839 1 .360
.798 1 .372
Competence
.184 1 .668
Scope
Variables
Step 0 .055 1 .814
Users
Vendor .444 1 .505
.408 1 .523
Management
5.109 6 .530
Overall Statistics
72
Appendix 4.7: Block 1 Classification Table Results for Core Banking Project Completion Cost
Predicted
Observed within Cost Correct
Not Completed at Completed at
Reasonable Cost Reasonable
Cost
Not Completed at
T24 Core Banking Reasonable Cost 59 7 89.4
Step Completed within
1 Cost Completed at
32 10 23.8
Reasonable Cost
a. The cut value is .500
Appendix 4.8: Block 0 Classification Table Results for Core Banking Project Benefits
Observed Predicted
T24 Core Banking Meets the Percentage
Desired Benefits Correct
Do Not Meets Meets the
the Predetermined
Predetermined Benefits
Benefits
Do Not Meets the
Predetermined 0 18 .0
T24 Core Banking Benefits
Meets the Desired
Step Benefits Meets the
0 Predetermined 0 90 100.0
Benefits

73
Appendix 4.9: Results of Variables not in the Equation for Core Banking Project Benefits
Score Df Sig.
Objectives 3.305 1 .069
Competence 3.544 1 .060
Scope .754 1 .385
Variables
Step 0 Users .399 1 .528
Vendor .075 1 .785
Management .128 1 .720
Overall Statistics 5.702 6 .457
Appendix 4.10: Block 1 Classification Table Results for Core Banking Project Benefits
Predicted
T24 Core Banking Meets the Percentage
Desired Benefits Correct
Observed Do Not Meets Meets the
the Predetermined
Predetermined Benefits
Benefits
Do Not Meets the
Predetermined 0 18 .0
T24 Core Banking
Benefits
Meets the Desired
Benefits Meets the
Step Predetermined 0 90 100.0
1 Benefits

a. The cut value is .500
74
Appendix 4.11: Case wise List Table for Core Banking Project Completion Time
Case Selected Status Observed Predicted Predicted Temporary Variable

a
T24 Core Group Resid ZResid
Banking Meets
the Desired
Benefits
30 S D** .959 M -.959 -4.857
64 S D** .910 M -.910 -3.177
100 S D** .879 M -.879 -2.690
a. S = Selected, U = Unselected cases, and ** = Misclassified cases.
b. Cases with studentized residuals greater than 2.000 are listed.
75

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Factors Influencing Implementation of Core Banking System Project: The

Case of Commercial Bank of Ethiopia (CBE)

Sirak Aynalem Argaw (MBA)

Faculty of Business and Economics, Mekele University, Ethiopia

Addis Ababa, Ethiopia

Table 4.1: Demographic characteristics of respondents…………………………………….…..25

Table 4.3: Survey result on project manager competence……………………………………….28

Table 4.4: Survey result on project scope change management practice……………………......30

Table 4.5: Survey result on end users involvement……………………………………………...31

Table 4.6: Survey result on vendors’ involvement ……………….…………………………..…32

Table 4.7: Survey result on support from top management ……………………………………..34

Table 4.8: Core banking system project success indicators……...………………………………35

on realistic schedule time ……………….……………………………………………………….43

at reasonable cost …………………………….………………………….………………………47

predetermined benefits …………………………….………………….…………………………51

Figure 2: Core banking system project success measurement indicators in CBE……………….36

Figure 3 Classification plot for realistic project completion time……………………………….44

Figure 4: Classification plot for reasonable project completion cost……………………………48

Appendix 2: Reliability Analysis………………………………………………………………...69

Appendix 3: Collinearity Diagnostic Results……………………………………………………70

Appendix 4: Logistic Regression Results cost…………………………………………………...70

BOD - Board of Directors

CBE - Commercial Bank of Ethiopia

CORE - Centralized Online Real-time Electronic

EATS - Ethiopian Automated Transfer System

H-L - Hosmer and Lemeshow Test

NBE - National Bank of Ethiopia

NPS - National Payment System

PMI - Project Management Institute

PMO - Program Management Office

SPSS - Statistical Packages for Social Sciences

VIF - Variance Inflation Factor

1.1. Background of the Study

1.2. Statements of the Problem

1.3. Research Objective(s)

The study has the following general and specific objectives.

1.3.1. General Objective

1.3.2. Specific Objectives

1.4. Research Questions

1.5. Hypothesis of the Study

1.6. Significance of the Study

1.7. Scope of the Study

1.8. Limitations of the Study

1.9. Organization of the Study

2.1. Theoretical Literature

2.1.2. The Concept of Core Banking

2.1.3. Core Banking Services and Products

2.1.4. Benefits of Core Banking

2.1.5. Challenges of Core Banking

2.1.6. Review of Factors Influencing Project Implementation

From a Project Management perspective, success factors are characteristics, conditions, or

2.1.6.1. Project Manager Competence as a Project Success Factor

Within the changing environment, a competent project manager is frequently regarded as

2.1.6.2. Vendor Involvement as a Project Success Factor

2.1.6.3. User Involvement as a Project Success Factor

2.1.6.4. Project Scope Change Management as a Project Success Factor

2.1.6.5. Top Management Support as a Project Success Factor

2.1.6.6. Clear Goals and Objectives as a Project Success Factor

2.1.7. Factors Influencing Implementation of IT Projects

2.1.8. Project Success Criteria

2.1.9. Core Banking Projects Implementation Framework

2.1.9.2. Product Evaluation

2.1.9.3. Vendor Commitment

9 .015 .059 .000 .103 .177 .312 . 508 .348** 1