What managers should know about ERP/ERP II

Abstract

Purpose This paper aims to examine the impact of enterprise resource planning (ERP) on organizations and discusses critical issues that should be considered by managers and decision makers who are considering implementing an ERP/ERP II system. Design/methodology/approach Extensive literature review and the author's professional experience on the topic provide the foundation for this article. Findings ERP/ERP II are designed to improve competitiveness by upgrading an organization's ability to generate timely and accurate information throughout the enterprise and its supply chain. The goal of an ERP/ERP II is to integrate all business units of an organization and to create a system that is capable of providing up‐to‐date and relevant information for the corporation's decision makers and employees as well as business partners. The investment that is required is significant, sometimes running into the hundreds of millions of dollars and the decision to purchase and implement an ERP system is one of the most important decisions a manager will have to make. Practical implications Implementing ERP systems often requires organizational change and commitment by top managers. Participation by decision makers and executives from the acquisition phase to the end is essential to the success of ERP/ERP II. Factors that managers should consider are outlined in the study. Originality/value This paper provides useful information to both academicians and practitioners who are interested in ERP.