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TopTheoretical Framework
The theoretical framework of this paper includes:
TopContext And Backdrop
Enterprise Resource Planning (ERP): ERP is a tool that integrates information flowing into and out of a company's interdepartmental incompatible database(s) to provide smooth customer service through integration of functions such as marketing, sales, production, financials, materials, and human resources, leading to reduced inventory write-offs and increased profitability in the long run (Davenport, 2000).
Despite the huge need for ERP, the expected benefits are often not forthcoming, with many ERP projects failing to deliver the intended results. The reasons for failure are many and could range from fitment issues in terms of the processes not being mapped to the packages, lack of experience with structured change processes, lack of business integration with the ERP packages, or frequent technical challenges. For instance, by nature, an enterprise system imposes its own logic, best practices and structure on the client company's strategy, culture, organization of departments and structure and hence pushes for and demands a huge amount of change management which client companies may not expect or plan for. These systems force firms to do business in ways that conflict with their vested interests or agenda, and hence could lead to a chaotic scenario. For most organizations, a change management initiative such as an ERP implementation involves the highest cost, time and effort possible in the organization’s history (Davenport, 2000). Top managements at times decide to persist with the implementation, thrusting the entire responsibility on the Information technology department without realizing that the issues are to be dealt with elsewhere. Davenport suggests some essential steps for better ERP implementation success which include clarifying strategy in advance, changing organizational structure, putting the right people in place and installing an enterprise system gradually.