Business benefits of ERP

Business benefits of ERP

Business benefits of ERP

IMPLEMENTATION of Enterprise Resource Planning (ERP) requires a substantial investment of money and other organizational resources and is often fraught with a high risk of failure due to organizational change.

Despite numerous attempts to quantify the contribution of ERP investment to firm performance in both theoretical and empirical studies, the major question frequently ask is 'what is the return on ERP investment?'

The answer to this question is not simple. In fact there are three stakeholders of the ERP project, viz., Vendor, Implementation Partner and User Organization. The vendors and implementation Partners promise big business benefits such as enhanced enterprise productivity, more accurate business planning, improved customer services, increased value in stock market, etc. to the user organization.

While the implementation issues of ERP have been extensively studied and published worldwide, there is not much study reported and published on the business impact of ERP adoption. Although some research reports and case studies on the business impact of ERP have been published, majority of them were focused on larger firms.

The majority of these studies revealed that the ERP adopted company gives greater performance in terms of sales per employee, profit as well as operating margins, return on assets, inventory turnover, assets utilization, working capital turnover, accounts receivable turnover, etc. The studies further reveal that it takes about eight months to realize the benefits of the new system.

However, some of the studies found little or no improvement in business performance contributing to ERP investments. The causes for these contradictory outcomes were further examined and it was found that ERP implementation results into business performance improvement only when they are associated with organizational improvement efforts such as business process re-engineering, corporate restructuring, and creating strategic business units and so on.

It is now quite clear that merely acquiring and installing ERP does not provide any benefits to an organization. However, its proper implementation along with organization maturity and business process transformation can have a dramatic impact.

For more information kindly visit: http://www.erppandit.com/Business-benefits-of-ERP.html

OR Please Contact us at:

TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra,Tel: +91 22 25827692/+91 22 25828775

POST COMMENT

Pyxism Travel -the Fact About Travel Home Businesses Website Design- The Essence Of Business Website Design Goes Hand In Hand With Business Carpet Cleaning Business and Franchise Common Mistakes Contractors Make in Business Very bad credit loans-Get cash with no credit checks How To Become A Business Manager Unsecured Business Loans Are Easy To Obtain It Is Possible To Print Your Own Business Card Same Day Loans for Bad Credit– Cash on Same Day Even With Bad Credit Professional Services For Your Web Based Businesses Signs Are A Business's Silent Salesmen Don't Let Upfront Cash Exchange Loans Scam You