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Enterprise Resource Planning ( Erp ) System

Decent Essays

1. Introduction and background Enterprise Resource Planning (ERP) system, as a software package or one integrated system, is designed to standardize the collection of organizational data resources and to permit these resources can be shared throughout the company, which finally support the management of companies (Klaus et al., 2000; Mabert et al., 2003; Wang et al., 2008; Ifinedo, P., 2011). Since this kind of systems allows inputting and outputting information and the information could be shared across the whole organization in time, companies all over the world are now utilizing the ERP systems to improve operational efficiency (Davenport, 1998; Klaus et al., 2000). Although the researches about ERP systems have aroused much …show more content…

Ifinedo (2007) comes up with that the size, culture, structure of the company are all positively related to the success of ERP implementation. A correct selection of ERP vendors is also another factor contributing to the success of ERP implementation (Ngai et al., 2008). Previous studies have given a big range of contingency factors that positively influence ERP implementation. Factors that have been identified are concerning organizational culture and structure, organization’s size, top management support, external expertise, relevant internal support, management style, and national culture. Even though there have been so many researchers providing valuable insights as the significant factors for ERP successful evaluations, only a few have investigated or examined the influences of internal computer or information technology (IT) capacity on ERP system success (Ndubisi et al., 2003; Wang and Chen, 2006; Wang et al., 2008). IT capability is now known as the combination of hardware, software, services, management practices, technologies and management skills (W. Kettinger, V. Gover, S. Guha, 1994). Prior to the utilization of this system, the company needs to evaluate whether they have proper basic IT infrastructures and IT management to install and run the system in a long term. After implementation, the company needs to adjust IT management and other resources to match ERP system in time so that to make sure the implementation would not fail. IT capacity

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