ENTERPRISE RESOURCE PLANNING (ERP)
“A business strategy and set of industry-domain specific applications that build customer and shareholder
communities value network system by enabling and optimizing enterprise and inter enterprise collaborative
operational and financial processes. (Gartner Research Note SPA-12-0420) ”
According to Umble, E, Haft & Umble, M (2003), some of the best practices for implementing ERP are
Clear understanding of strategic goals
Commitment by top management
Excellent project management
Organizational change management
A great implementation team Data accuracy
Extensive education and training
Focused performance measures
Provision to automate several process (Umble et al, 2003)
Dedicated modules for integrating and managing data from various departments such as finance, sales, service, and so
on (Meet Our Departments, 2014)
Flexible according to business requirements (Shang & Seddon, 2002)
Ready made solutions for most of the issues (Hossain, Patrick, Rashid & Rashid, 2002)
Return over investment earlier than in-house software (O'Leary, 2000)
Unified reporting system (O'Leary, 2000)
Improved decision making (O'Leary, 2000)
Easier for order tracking, inventory tracking, revenue tracking, sales forecasting and related activities (O'Leary,
High implementation cost (O'Leary, 2000).
Delay on return on investment but yields steady performance over time when compared to non-adopters (Hunton,
Lippincott & Reck, 2003)
Requires much customization to fit business needs (Hossain et al, 2002)
Migration from legacy system to ERP system is difficult (Kremers & Van Dissel, 2000)
ERP is the tool for an integrated information system to stay competitive and
customer‐oriented for all organizations.
Integrates and automate business functions at organizational level
Excellent information system that satisfies both business and customer needs
Increases business revenue
Hossain, L., Patrick, J. D., Rashid, M. A., & Rashid, M. A. (2002). Enterprise
resource planning: global opportunities and challenges. IGI Global.
Hunton, J. E., Lippincott, B., & Reck, J. L. (2003). Enterprise resource
planning systems: comparing firm performance of adopters and
nonadopters.International Journal of Accounting information systems, 4(3),
Kremers, M., & Van Dissel, H. (2000). Enterprise resource planning: ERP
system migrations. Communications of the ACM, 43(4), 53-56.
Meet Our Departments - Central Nissan. (n.d.). Retrieved November 25, 2014,
O'Leary, D. E. (2000). Enterprise resource planning systems: systems, life
cycle, electronic commerce, and risk. Cambridge university press.
Shang, S., & Seddon, P. B. (2002). Assessing and managing the benefits of
enterprise systems: the business manager's perspective. Information Systems
Journal, 12(4), 271-299.
Umble, E. J., Haft, R. R., & Umble, M. M. (2003). Enterprise resource
planning: Implementation procedures and critical success factors. European
journal of operational research, 146(2), 241-257.