1. Introduction
Worldwide organizations are going for ERP (Enterprise Resource Planning) systems for information integration and aligning & streamlining their processes for delivering high value to the customers. ERP systems have their roots in MRP II systems which provided support to the production function. Shortcomings of MRP lead to an integrated solution as ERP. These systems seek to integrate of information across all functional areas (i.e., marketing, finance, HR, logistics etc.) and hopes to provide increased flexibility to organization in serving its customers.
Enterprise resource planning systems can provide a wide array of benefits that are both tangible like reduced personnel, inventory, IT and procurement, transportation, and logistic costs; improved cash flow management, revenue, and profits, and intangible like increased visibility of corporate data, speed of decision making, and control over global business operations; improved customer responsiveness and business processes. But many ERP installations achieve only partial implementation.
“Nearly one in five are scrapped as total failures (Soh, Tien, & Tay-Yap, 2000; Trunick, 1999). Prior research has found that only 10% of new information systems failures can be attributed to technological problems (Bikson & Gutek, 1984). Many ERP projects fail to achieve anticipated benefits because managers underestimate the efforts involved in managing change (Appleton, 1997). Thus the human element has become the critical determinant of information system success (Martinsons & Chong, 1999). Users play a pivotal role in achieving ERP system success and affecting the perceived benefits arising from its use (Mahmood, Burn, Gemoets, & Jacquez, 2000). Assessing the degree to whic ...