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ERP implementation issues in advanced and developing countries
Abstract
There is an increasing need to implement a total business solution which supports major functionalities of a business. Enterprise resource planning (ERP) software is designed to meet this need, and has been widely adopted by organizations in developed countries. Meanwhile, ERP is beginning to appear in many organizations of developing countries. Little research has been conducted to compare the implementation practices of ERP in developed vs developing countries. Our research shows that ERP technology faces additional challenges in developing countries related to economic, cultural, and basic infrastructure issues. This article identifies a range of issues concerning ERP implementation by making a comparison of advanced and developing countries.
Key words: Enterprise Resource management; Implementation; Developing countries.
Enterprise resource planning (ERP) is an industry term for the broad set of activities supported by multi-module application software that helps a manufacturer or a service business manage the important parts of its business. Evolving from MRP systems, ERP has played a significant role in IT for several decades. Since the first symbiotic ERP product SAP created in 1972, ERP market revenues are expected to be as high as $52 billion by the year 2002. While there is wide acceptance of ERP in developed countries such as the USA, Canada, the UK, and Australia, developing countries lag far behind. At present, North America occupies 66 percent of the ERP market, Europe takes 22 percent, while the whole of Asia is only at 9 percent. However, due to economic growth, developing countries in Asia and Latin America are becoming major targets of big ERP vendors.
ERP in developed countries
ERP systems have been widely used by companies in developed countries. Organizations in manufacturing, service, and energy industries adopt ERP to:
automate the deployment and management of mate
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