Enterprise resource planning (ERP) applications have become critical business tools by connecting, enabling, automating, integrating, and pinpointing opportunities (and problems) inside core enterprise functions and processes. As a result, they promise to improve productivity, quality, agility, and decision-making.
ERP software typically covers accounting, cost, financial, order, procurement, project, and purchase management, manufacturing, and distribution and warehousing. HR is often included in ERP solutions, but has sufficiently distinct opportunities and challenges to warrant separate research.
But the ability of ERP to deliver on expectations has often been marred by high costs, complex installations (of up to a year or more), errors, usability issues, and inflexibility once installed. Perhaps it’s not unlike companies’ experiences with on-premise CRM systems ten to fifteen years ago.