Importance Of Enterprise Resource Planning System

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1. INTRODUCTION 1.1. Introduction Intense competition in the field of business with the growth of information and communication technologies creates significant challenges for companies to be able to survive, managers become more demanding for information in order to success by better logistics and cost reduction. Good information is that which is accurate, relevant, complete, reliable, communicated in time and secure. Of course, these characteristics have developed over time together with the development of information systems. Organizations start to use software programs to benefit from what these programs can offer, each department has one or more program in use, by the time these programs create a very complex environment and become very…show more content…
“Enterprise resource planning systems or enterprise systems are software systems for business management, encompassing modules supporting functional areas such as planning, manufacturing, sales, marketing, distribution, accounting, financial, human resource management, project management, inventory management, service and maintenance, transportation and e-business.” (Hossain, Patrick, & Rashid, 2002, p. 16) By adopting ERP system, all legacy software can be replaced with software that includes multiple modules linked together on single database and get rid of all previous problems such as lack of integration, complexity, duplication and compatibility problems. Because this software is from one company that facilitates things like license, upgrading, technical support and training ERP is very costly software needs plenty of resources and time that is why in the beginning only big companies used ERP, later ERP start to be used in medium and small companies. In Spite of the benefits of ERP in improving business process and financial performance, but also the risks associated with the implementation is very high so the failure rate is also high. 1.2. Study…show more content…
Changing to ERP, will make changes at all levels in the organization, will affect the behavior of the company towards customers, vendors, auditors and Governmental authorities from external perspective, and will affect the behavior of the company towards Management, stockholder and employees from internal perspective. ERP implementation needs huge resources (money, time, and effort); all of these reasons together illustrate the necessity for a deep study for the factors that lead to the success of the implementation process. 1.3. Study questions 1) Was the ERP in this study implemented successfully in the companies that adopted it? 2) Do managerial factors have impact on ERP implementation? Which one has the most impact? 3) Do Project factors have impact on ERP implementation? Which one has the most impact? 4) Do Organizational factors have impact on ERP implementation? Which one has the most
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