Enterprise Resource Planning

3707 Words 15 Pages
Merian Gerova

Information Systems in Management
MGT 305
Dr. Mamad Pourhosseini
Is Enterprise Resource Planning (ERP) Valuable System for The Companies
Word Count: 3,311
21 June 2012

I. Abstract
This paper critically analyses Enterprise Resource Planning (ERP) and the various tools and platforms it offers to the enterprises. This report looks at ERP as strategic management tool that ensures competitive advantage ones adopted. This paper will explore scholarly articles underling the implementations and procedures of the system. Together with that, it will evaluate the cost factors, ERP phases, describing ERP in legal and ethical terms, together with evaluation of the right needs for the right size of the business and the different
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Studies show many difficulties in implementation of ERP. Over half of the ERP implementations end in failure. In addition, poorer results show that 75% of ERP projects are considered unsuccessful. Approximately 90% of these results come from late or wrong implementation of ERP system. Therefore, it is important for an organization to indicate the implementing phases of the process, as well as well as to underline the differences in the process. Studies show that ERP implementation depends on the fit of the system into the organizational structure. Subramanian and Pelsek also included a research based on the ERP software, manufactured by SAP (Subramanian and Peslek, 2010). Their findings proved the four phases of using ERP system. The first phase was preparation and training. Researchers were convinced that this phase is crucial and have a positive effect on the company’s performance, as it provides excessive knowledge for the employees before the company adopts the software. However, the research showed negative feelings amongst the respondents due to the fact that the system was constantly changing. Upgrades, new features and developments of the system make it difficult to be trained. Accordingly, a similar reaction came out of the second ERP phase: transition, which involved the implementation of the system into the company, …show more content…
It represents the idea that “computer processing performance would double every eighteen months” (Valachich and Schneider 2010-p73). Since ERP continues to advance and develop, Moore’s law is relevant to the case. In addition, technology also becomes more and more innovative; hence ERP is supposed to be able to develop more components and tools for users.

V. Hypotheses
Although ERP applications are amongst world’s best known and largely used systems, it has its limitations. Researchers are measure the use of the systems versus its price and to determine whether ERP platforms are worth purchasing. These results have a huge impact on the corporate strategy and the competitive advantage of the company.

VI. Methodology
To ensure the findings reflect the current conditions as accurately as possible, the report uses a number of different analytical tools from academic and business sources, as well as bases its concepts on the course book. Selected academic journals, discussing different perspectives on the topic have been examined. Researchers that produced these journals used mostly surveys and questionnaires in qualitative and quantitative analysis to examine the situation. Most of the papers are recent, therefore the research is relevant and accurate. However, bias may occur due to unawareness of the reason the research was conducted for. Also limitations of some of the researches appear because of the small number

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