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TopEnterprise Resource Planning
There has been significant work done in the general information systems area of enterprise resource planning systems. One area of enterprise resource planning systems that has received some attention in the literature is the success or failure rate of ERP implementations. Enterprise resource planning systems are so comprehensive and as a result so complex that they require coordination across many disciplinary areas in an organization and often take multiple years to implement. They have had an uneven record of success in organizations. Estimates vary widely on the success rate of ERP implementations. Barker and Frolick (2003) suggest that 50% of ERP implementations succeed. Hong and Kim (2002) estimate a 25% success rate. Others suggest failure rates up to 90% (Scott & Vessey, 2002; Martin, 1998). Ho, Wu, and Ta (2004) have reported that currently there are relatively few successes. Overall, there is insufficient research into enterprise resource planning systems. As one author suggests, “research in the ERP area is still lacking and the gap in the ERP literature is huge” (Al-Mashari, 2003).
The essential parts of an enterprise resource planning system are integrated modules that allow business process that cross business functional areas; one large real-time database that allows for a single entry and repository for information across business functions; and seamless business transactions across business functions (Miller, 2003).
Okrent and Vokurka (2004) note six core processes that are streamlined in ERP systems: quote to cash, procure to pay, plan to perform, manufacturing operations, product life cycle, and financial management. McAdam and Galloway (2005) suggest ERP systems allow “standardising business processes, ensuring integrity of data, and removing the number, complexity, and expense surrounding old independent legacy systems.”