Planning for ERP systems: analysis and future trend

TLDR

Enterprise resource planning (ERP) systems have attracted significant interest as a potential competitive advantage, yet many firms invest heavily with limited success. The study aims to analyze critical planning issues for ERP implementation, such as needs assessment, system selection, process alignment, organizational requirements, and economic justification. The authors examine these planning issues by reviewing ERP failures and identifying key factors that influence successful implementation. The study identifies new opportunities and challenges for companies as enterprise systems evolve and expand.

Abstract

The successful implementation of various enterprise resource planning (ERP) systems has provoked considerable interest over the last few years. Management has recently been enticed to look toward these new information technologies and philosophies of manufacturing for the key to survival or competitive edges. Although there is no shortage of glowing reports on the success of ERP installations, many companies have tossed millions of dollars in this direction with little to show for it. Since many of the ERP failures today can be attributed to inadequate planning prior to installation, we choose to analyze several critical planning issues including needs assessment and choosing a right ERP system, matching business process with the ERP system, understanding the organizational requirements, and economic and strategic justification. In addition, this study also identifies new windows of opportunity as well as challenges facing companies today as enterprise systems continue to evolve and expand.