Challenges Affecting the Implementation of Enterprise Resource Planning (ERP) System: An Analysis

Abstract

Most companies have realized the importance of installing the Enterprise Resource Planning (ERP) system into their business process to sustain competitive advantage and to be a market leader. This research investigated the challenges in implementing ERP system to medium size businesses in Saudi Arabia (SA) and its impacts on productivity and profitability, effects of ERP systems to business process engineering, and presents possible means to eliminate the challenges affecting implementation of ERP system. The researcher used quantitative method to investigate the implementing of ERP system on medium scale business. Data collected from 75 respondents of the selected companies. Through the use of survey questionnaire, top executives and employees of medium scale business were asked regarding the significance of these challenges in implementing ERP to their business process. Statistical Package for Social and Sciences (SPSS) program applied to tabulate the result of the survey. The results showed that organizations benefit from ERP system after considering internal issues, resolving challenges within the organization and at the same time keeping up with current to future trends.