Introduction And Objectives Of The Study. Introduction

1072 WordsMar 30, 20175 Pages
Introduction and Objectives of the study Introduction Enterprise Systems (ES), also called Enterprise Resource Planning (ERP) systems, are among the most important business information technologies to emerge in the last decade. While no two industries’ Enterprise Systems are the same, the basic concept of Enterprise Systems is focused mainly on standardization, synchronization and improved efficiency. ERP is basically the successor to material resource planning (MRP) and integrated accounting systems such as payroll, general ledger, and billing. The benefits of Enterprise Systems are very significant: coordinating processes and information, reducing carrying costs, decreasing cycle time and improving responsiveness to customer needs.…show more content…
Furthermore, many experts say that over 50 percent of U.S. firms experience some degree of failure when implementing advanced manufacturing or information technology. Unfortunately, many companies have already experienced significant troubles trying to implement ERP systems, and these poorly executed implementations have had serious consequences. One recent survey revealed that 65 percent of executives believe ERP implementation has at least a moderate chance of damaging their business. Obviously, it is very important to identify and understand the factors that impact heavily on the success or failure of ERP implementation. Large IT projects such as ERP implementations have more chance to be failures than most people expect. In the last decades, many studies have identified that the success rate is approximately 25%, the failure rate is also about 25%, and partial successes and failures exist around 50%. Many failure cases about ERP implementation projects have been reported including the U.S. federal government cases such as the U.S. Internal Revenue Service and Federal Bureau of Investigation cases. The IRS launched new Customer Account Data Engine (CADE) in 1999 to upgrade its IT infrastructure and more than 100 business applications. However, most of its major projects ran into serious delays and cost overruns. The project costs have increased by more than $200 million according to the U.S. General
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