High percentage of failure in information system projects caused a shift from individual development to standardized, prepackaged software solutions like Enterprise Resource Planning (ERP) systems. Companies were also discontinuing legacy software due to the technological demands of internal and external agencies. Besides, business process reengineering, cost reduction, taxation requirements, introduction of euro, increased sales, stock exchange requirements, innovation in information technologies and government funding-subsidization were also other reasons for ERP implementation. This paper throws light on the utility of ERP system in an organization. The study reveals that a positive effect was caused due to ERP systems on all the different factors related to organizational process.

According to Colmenares (2008), “Enterprise-wide system has become a format for producing full organization integration by inclusion of all functional areas”. Palaniswamy and Frank (2002), based on an exploratory study, also stated that prior to implementation of Enterprise Resource Planning (ERP), many firms faced problems in using the available information because of the incompatibility among the various computer hardware and software systems. Parr and Shanks (2000) suggested that technical, operational and strategic reasons are the main factors behind ERP implementation. The study by Maccarrone (2000) investigated the benefits of ERP implementation as far as accounting information and management processes are concerned. The researcher identified two categories of benefits related to ERP implementation. The time-related benefits, such as reduced need of time to perform some activities, can lead to three different types of benefits: cost reduction due to time savings permitted by the system; less time is needed for single activities meaning that time can be utilized to improve the control activities which should improve the organization’s competitiveness; and reduced need of time also entails reduced total cycle time and increases correctness of processes. The second category of benefits are quality-related benefits including issues related to data during the collection, storing and elaboration processes and improved quality of control activities, implying improved decision making which results in higher profits.

Information Technology Journal, Enterprise Resource Planning (ERP), Pre-ERP, Post-ERP, Time, Task, Security, etc..