Effect of Enterprise Resource Planning (ERP) on Business Organisations Efficiency for Sustainable Development

Abstract

Enterprise Resource Planning (ERP) is the connectivity of business organisations of its branches, regional and head office for efficiency so that the head office will be in full view of the operations of other branches irrespective of their locations. That the ERP has three stages as pre-implementation stage, implementation stage and post-implementation stage. This research focuses on pre-implementation stage as subsequent stages are dependent on the first stage (pre-implementation) for proper functionality. Hence it is obvious that organisations wanting to adopt ERP should know their needs and identify their needs critically, audit the technologies on ground and know the technology that best suit into the existing technologies on ground. Moreover, that the organisations should involve a proven and expert vendor who could give advice whether on “phase by phase” or “rollout” and that the financial capacity of the organisation should be considered as well to know the technology the organisation can afford and comfortably maintain for efficiency and sustainability. At this juncture, this paper discusses the non-identification of areas, segments, sections or department that poses difficulty in management, evaluation and audition of the technologies that are on existence, non-training/retraining of staffers on the effective use of ERP, non-consideration of financial capabilities and effects of ERP adoption in an organisation. Amongst the recommendations is that organisations should critically identify areas that need to be strengthened by ERP systems for efficiency.