• Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint

Introduction

An Enterprise Resource Planning (ERP) system can be defined as ’an accounting-oriented information system for identifying and planning the enterprise-wide resources needed to take, make, ship, and account for customer orders’ (APICS, 1998). The ERP software infrastructure facilitates the flow of information between all business functions. This infrastructure is built upon a common database responsible for storing all data from processes that are essential for business operations and decision-making. ERP systems are enterprise-wide and they claim to incorporate best business practices. They replace separate functional legacy systems and impact significantly on the existing business processes.

The global market for ERP (Enterprise Resource Planning) software, which was $16.6 billion in 1998, is expected to have a compound annual growth rate of 32%, reaching more than $66 billion in sales by 2003 (Carlino, 1999), and is estimated to have had $300 billion spent over the last decade (Carlino, 2000). Initially, many companies implemented an ERP system as a technological solution to the Y2K issue, as the system replaced many of their existing legacy systems (Deliotte, 1999). Companies were forced to initiate business process engineering for the purpose of “gap analysis”, to determine what had to change either in their company or in the ERP system to facilitate effective implementations. Companies initially struggled with their ERP implementation due to inexperience with projects of this scope, underestimating the impact the system would have on their organization, and lack of skilled resources. For some companies these barriers have been insurmountable (Calegero, 2000). However, even with these impediments many large companies considered the implementation of an ERP system as necessary infrastructure.


PREVIEW

                                                                          

Not a subscriber?

Start A Free Trial


  
  • Creative Edge
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint