Implication Of ERP

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Social factors effect on adoption of ERP systems in Sri Lankan manufacturing industry Abstract Enterprise Resource Planning (ERP) systems are computer programs which integrate business core process and improve its performance. It provides lot of advantages such as transparency through process, process integration with other divisions of the company, provide real time information etc. ERP system provide a competitive advantage for an organization in modern world as it ability to interact with all the business process of the organization accurately. ERP systems are used in most Sri Lankan manufacturing organizations also. But the effective use of those ERP is a question. According to global investigations and researches, adoption of ERP…show more content…
ERP system integrates all facets of an operation in an organization such as product planning, development, manufacturing, sales and marketing, HR, etc. in a single database, application and user interface. Investment on information technology in organizations brought significant competitive advantage all the time. In modern contest companies invest lot of money on various technologies to improve organizational performance, traceability, transparency and for fast transactions. But the problem comes after implementation, how users adapt to new technological application and how they adopt new applications. In most cases people adaptation for new technology does not happen effectively. Therefore investment made become a huge loss. ERP are very expensive as they contribute a huge positive impact when it is effectively used and its tailor made for each organization. But implementation of ERP system also become a failure or it does not 100% effective in most cases as the ERP system adoption by end user does not happen completely. This may cause different factors including social factors of users of the system. Therefore implication of ERP system is a high risk project for all organizations as the tendency of losing…show more content…
Enterprise Resource Planner (ERP) has achieved a huge position in this context. ERP is a packaged business software system that enables a company or organization to manage its resources efficiently and effectively by providing a fully integrated solution to meet an organization’s information processing needs (Nah et al., 2003). Kumar and Hillergersberg (2000) Well recognized business units or departments of an organization should work together to achieve organizational overall objectives and goals. This integrated view of management requires for functioning of each unit efficiently and effectively, and understand how its activities and decisions affect the functions of the whole organization. ERP increase the focus of management on each business unit. Therefore ERP systems has become an integrated management approach. (Shanmugam et al.,
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