The Effect of ERP System Implementation on Business Performance: An Exploratory Case-Study

Abstract

There is currently plenty of research concerning the effect of Enterprise Resource Planning (ERP) Systems on business performance. Previous research has shown a mixed relationship between ERP and business performance where some suggested that ERP improves performance and others found that it does not. Previous research was mainly based on quantitative methods which don't give important insightful knowledge and details. A case-study on the other hand can help identify the important contributing factors for the relationship between ERP and business performance. This paper therefore, investigates this topic by analyzing a critical case-study consisting of an Egyptian SME branch of a multinational company. The results indicate that in general many benefits in business performance were achieved after implementing the ERP as reported by the business users, but have also shown that a few benefits previously linked to ERP were not fully achieved. This indicates the positive contribution of ERP on business performance but also suggests the limited applicability of this positive relationship according to specific factors to be researched.

Impact of Supply Chain Management on the Relationship between Enterprise Resource Planning System and Organizational Performance

“…Hence, the customer capital is also affected by the process capital, ultimately translating it into business performance. Elragal andAl-Serafi (2011) andPoston andGrabski (2000)also support the positive contribution of ERP on OP. Elragal and Al-Serafi (2011)found that the positive contribution of ERP mainly comes from increase efficiency in information diffusion which enable organizations to response faster and improve the management of inventory.…”

“…Elragal andAl-Serafi (2011) andPoston andGrabski (2000)also support the positive contribution of ERP on OP. Elragal and Al-Serafi (2011)found that the positive contribution of ERP mainly comes from increase efficiency in information diffusion which enable organizations to response faster and improve the management of inventory. Poston and Grabski (2000) argue that ERP contributes to cost reduction and thus revenue enhancement.…”

A Framework for ERP Systems in SME Based on Cloud Computing Technology

“…In [10] Elragal et. al represented a case study that showed relationship between ERP and business performance.…”

“…ERP systems reduce costs, exchange information in a better way, and reduce response time between customers and suppliers [9]. An ERP system can be operated within the enterprise with one standard application that provides integration between all supporting departments such as sales, accounting, manufacturing, human resources and supply chain [10].…”

Factors affecting enterprise resource planning (ERP) systems adoption among higher education institutions in Egypt

“…Sayed et al, 2013). For instance, some scholars investigate factors affect the success of ERP (Abdelghaffar and Azim, 2010) and others identified factors contribute towards the relationship between business performance and ERP (Elragal and Al-Serafi, 2011) and the influence of cultural challenge on ERP adoption in Egypt, which differs from the other cultures from where the system of ERP is originated (El Sawah et al, 2008). However, recent surveys showed that the success rate of ERP implementations in Egypt is extremely lower than it is in western enterprises, and half of the ERP implementations in Egypt are considered as failures (Abdellatif, 2014).…”