Implementation of ERP (Enterprise Resource Planning) system in a company for better corporate governance

ERP Systems and Organizational Improvement

Introduction

Business organizations have become increasingly reliant upon externally acquired information technology solutions for contention with everyday operational problems . Enterprise Resource Planning (ERP ) software is one such solution . According to Barton 's (2001 ) introduction and analysis of ERP implementation , we might most accurately define the software package as `a business management system that integrates all facets of the business , including planning , manufacturing , sales , and marketing ' Some of the more well-known ERP software developers include SAP , Oracle , and PeopleSoft (Barton ,

. 1 ) A database systems approach

br to automating inventory , stock and resource management , ERP is extremely common in today 's business world with many organizations feeling great pressure to adapt to evolving IT models . However , these may not always yield positive outcomes . Such is demonstrated in the article by Hong Kim (2001 , The Critical Success Factors for ERP implementation : an organizational fit perspective ' Essentially , we find that ERP systems can help to improve corporate governance , solidify the public identity of an organization and improve its overall decision-making process

An additional issue of importance , the essay will explore the apparent contradiction between the substantial number of organizational administrators who consider ERP software systems to be the platform upon which strategies are achieved and decisions are made and the frequency with which such operations typically fail to guide their implementers to entrepreneurial success . Indeed , Hong Kim have found that while two-thirds of managers surveyed acknowledged that some form of ERP software serves as the basis for resource orientation procedures within their organizations , a contradictory three-quarters of organizations reviewed illustrated some failure on the part of the software to intuit accurately the needs of said organizations (Hong Kim ,

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More often than not , the cause for the failure of ERP software is the shortcoming of its compatibility with a business model to which it is applied . As such , this study examines the relationship between the organizational fit of ERP and ERP implementation success (Hong Kim br

. 27 ) It is the belief of researchers entering into this experiment that implementation success is directly impacted by organizational factors , with more effective corporate governance arising typically in reflection of a congruity with the selected software program . For instance , an appropriately manifested ERP system will utilize an array of web-based tools in to translate transactional information into decipherable indices about company performance and pro . It is important thought that the implementing organization will be of a scale and complexity to justify this type of diagnostic

This is made apparent by the literature which Hong Kim . select as the basis for their research . Their methodology , discussed later in this account , would be supplemented by a literature review highlighted by Soh , et al 's (2000 ) article Cultural fits and misfits : is ERP a universal solution ' The study would form much of the preconceived basis for this article 's assumption that organizations which are moving toward prevailing IT sales approaches to adopt ERP programs must be directly aware of compatibility issues in the nature...