Sample Thesis Paper
The economic and strategic justification process for an ERP project prior to installation helps in identifying all the potential benefits that can be accrued as well as the enormous investment and risk involved with the implementation (Chen, 2001).The huge investment required to implement an enterprise systems at large companies need to be weighed carefully against the eventual savings the system will produce (Davenport, 1998). Laughlin (1999) describes the detailed benefits that include both hard savings (expense) and soft savings and benefits (efficiency, effectiveness and revenue growth). He further states that the cost of implementing an ERP application depends on the scope of the effort, size of the enterprise, the ERP application selected, and the IT environment required. Cliffe (1999) states that the better way is to design the ERP implementation in stages, so that the management can make reasonable decisions about benefits, costs, and risks along the way.
Laughlin (1999) further suggests that ERP system chosen should closely fit with the management philosophies and business practice assumptions of the company. Therefore, it is essential to conduct an internal needs assessment firstly and later on defining a “should-be-state” and envisioning life at the end of the ERP project (Chen, 2001).