Thesis: Objectives of ERP

Sample Thesis Paper

The primary benefits of ERP implementation are as follows :

1. Integration of business processes (Nah et al., 2001; Davenport, 1998; Gupta, 2000; Siriginidi, 2000; Cissna, 1998; Bingi et al., 1999). Davenport (1998) states that ERP systems try to solve the fragmentation of information in large business organisations. According to him, if a company’s systems are fragmented, its business is fragmented.

2. Reduction in inventory and cycle time (Davenport, 1998; Gupta, 2000; Davenport, 2000 , p.7; Gupta, 2000; Bingi et al., 1999). Gupta (2000) states that the supply-chain capabilities of ERP increases efficiency and productivity for their users. He suggests that by linking supply-chain applications with other business systems, users can slash cycle times and reduce inventory. He further suggests that in the manufacturing sector, ERP implementation has reduced inventories anywhere from 15 to 35 percent.

3. Improvement of customer satisfaction (Muscatello et al., 2003; Gupta, 2000; Rao, 2000). Rao (2000) states that ERP empowers the customer to modify the implemented business processes to suit their needs

4. Improved decision making (Gupta, 2000; Utecht et al., 2004). Utecht et al. (2004) state that ERP system not only cultivates accurate and timely information which is available for all operations in a company, but also fosters more effective and visionary decision making. Bingi et al. (1999) support the point by stating that the ERP integration benefits the companies in quickly reacting to the competitive pressure by providing more flexible product configurations and market opportunities.

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