Business Research Paper: Synopsis of the Enterprise Resource Planning (erp) System

Business Research Paper: Synopsis of the Enterprise Resource Planning (ERP) System

Enterprise Resource Planning (ERP) System is a software system that supports and automates the business processes by providing timely and accurate enterprise-wide information for decision making (Vemuri & Palvia, 2006). This paper is based on the research article, “Improvement in Operational Efficiency Due to ERP Systems Implementation: Truth or Myth?” by the authors Vijay K. Vemuri and Shailendra C. Palvia, which will discuss the purpose of the ERP system along with explaining some of the problems under investigation, and by identifying the parties involved that conducted the investigation, and describing the methods and variables used in researching the ERP system. Although, a system such as, the ERP system is very much needed within a business, however, is the system efficient enough to be cost effective. By researching the ERP system, the idea will be whether the investment towards the system is worth having. “Good research generates dependable data that are derived by professionally conducted practices and that can be used reliably for decision making” (Cooper & Schindler, 2006, p.22).

Define the Business Research and Purpose of ERP

Vemuri and Palvia (2006) state, the purpose of researching the ERP system is to evaluate the improvement of operational efficiency due to the implementation of the ERP system. By analyzing the performance of this system, one can compare to the cost of implementing the ERP system into a business and measure how the system would enhance confidence and efficacy in business operations.

Explain the Problem Being Investigated

By implementing the ERP system within a company a significant amount of money is needed to apply this implementation. An ERP system can range from a few million dollars to several hundred million dollars. “Despite high expenditures, ERP implementations have resulted in problems. Rushed software installations and inadequate training are blamed for well-publicized troubles with ERP” (Vemuri & Palvia, 2006, para.4). Problems with ERP system implementation is that companies had difficulty integrating their enterprise software with a package of hardware, operating systems, database management systems software and telecommunications systems suited to their particular organization size, structure and geographic dispersion (Markus, Axline, Petrie & Tanis, 2005). Companies suffered losses in revenues because the ERP system slowed down the business process. For instance, negative impacts on customers and suppliers from an inability to answer their queries and from delayed shipments and payments. Furthermore, in order to pickup the pace companies would have to increase their staff to cope with the slow downs and errors.

Identify the Parties Involved

Clearly when errors are made within a business, basically everyone is involved, management, employees, vendors, suppliers, and most important customers. For example, with the ERP system, if data was not entered correctly by an employee, this in turn could negatively impact the business and the clients.

Describe the Methods Used to Conduct the Research

Focus on the type of business that the ERP system is going to be implemented. Vemuri and Palvia (2006) focused on the chemical and pharmaceutical manufacturing sector, which the process is characterized as a continuous flow process. By knowing the size of a firm impacts the level of success that is achieved by implementing the ERP system. Gather a list of companies interested in implementing the