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Importance Of ERP

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1.1. Background
Rapidly changing business environment is putting organizations especially from developing countries like Pakistan into an immense pressure and challenging situation. Foot prints of these local companies and their share in international market is already negligible. In order to stay competitive in the market place and to cope up with imminent challenges approaching ahead, re-engineering of business process to international standards and according to latest trends is required. The businesses which didn’t mould themselves are either no more exist or in a state of sharp decline, isolation and ultimate failure. A strategic tool that that give a clear edge to organization through successfully integrating key business operations along …show more content…
These dimensions are defined as those elements that you must do well in order to be successful.ERP operation is an intricate and convoluted amalgamation of technological, organizational, and business enterprises. It needs understanding of a process, an explicit association of processes, its setting, contest, and IT. ERP systems have been often castigated for being rigid, overly complex, huge and therefore not easy to implement and control. Because of the integrated and ubiquitous nature, ERP requires adopters, implementers and users to define a common set of business rules, data standards, processes and procedures that span the entire organization (Alvarez et al. 2002, 10). Troubles in implementation have been portrayed as resembling “the prisoner escaping from an island prison” (Ross and Vitale 2000). Popularity and demand for ERP systems from organizations is increasing, but only this wish single-handedly is not sufficient, and it is evident from research that several key factors must be considered for the success of any ERP system. Petter, DeLone, and McLean (2008), describe ERP system as a tool that manages procedures and resources; therefore, it is imperative for organizations to have this tool to facilitate the …show more content…
Importance of such systems can’t be neglected, yet they fail to deliver the intended benefits, claimed originally. Many researchers have shed light on various aspects of ERP system failures, but these factors may vary from culture to culture and depends upon organization’s absorptive capacity and willingness to change. Apart from the differences there exist mainstream commonalities which need to be addressed by every organization. To have the knowledge of these factors alone doesn’t ensure success but to take corrective actions at right time by right person is also mandatory. Industrial sector is investing a handsome amount of efforts and budget to implement ERP system to make their system smooth and enhance transparency and productivity. Even though some of the organizations have made multiple attempts to have successful system implementations but the situation is not always the same and new challenges are always posed ahead and needs to be taken care of appropriately. It is considered imperative at many forums to understand the desires and expectations of the ERP system. Too much hype can raise the expectations but the due time to meet those expectations is not given. Moreover, it should be crystal clear that it is a business initiative rather than an IT venture, because complete business models are required to be implemented which is not possible without the involvement of Business Process Owners. In order to

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