Selection and Implementation of ERP Systems: A Comparison of SAP implementation between BIH and Turkey

Abstract

In this current information age, the automation of service and production systems is an inevitable process. One of the main pillars of the automation process in business is so-called Enterprise Resource Planning systems. Hirt & Swanson (1999) defines ERP software as a management information tool designed to model and automate many of the basic processes of a company, from finance to the shop floor, with the goal of integrating information across the company and eliminating complex, expensive links between computer systems that were never meant to communicate.ERP systems are also enterprise-wide software systems which integrate processes impeccably throughout several functional areas and also across geographical locations. By using a common database for data storage, ERP Systems are able to provide developed workflow, access to real-time information, and adjustments which make business practices more convenient (Parkhill, et. al. 2010 Abstract:In this research, the selection and implementation of ERP Systems will be discussed. The ERP concept, the selection process, and the importance of selecting a certain ERP solution for the companies will also be dealt with. However, implementation of ERP software brings not only benefits, but also incurs costs. After the literature review of ERP implementation strategies, a survey is reviewed that was conducted among several large and mid-size companies that adopted SAP, one of the major ERP solutions, in their businesses in Bosnia and Herzegovina and Turkey. The focus of the survey will be on different aspects of SAP implementation, such as struggles that have been faced during its implementation and its benefits following implementation. In the final section, a comparison is made between Turkish and Bosnian companies. While the study indicates some differences in implementation strategies and major benefits, similarities between the two countries are more pronounced.