By, ANUPAMA H.B (Reg. No. 09CQCMA011) Under the Guidance of, Mrs. PADMALATHA N.A. Asst.

Professor

Overview 1 2 3 4 5 6 Introduction Objectives Research Framework Analysis & Interpretation Findings & Suggestions Conclusion .

µµinformation system packages that integrate information and information.INTRODUCTION TO ERP ERP systems are defined as.based processes within and across functional areas in an organization¶¶. The main research questions examined in this study: y Does extent of ERP system implementation will influence the financial performance of an organization? y When or under what conditions does adopting ERP capabilities have the highest impact on financial performance? .

y The result of such adoption is always uncertain. however.STATEMENT OF PROBLEM y Previous studies. have provided somewhat conflicting results on the effect of ERP implementation on financial performance. while others showed that ERP investment enhanced financial performance only in specific areas. These mixed findings imply that ERP investment does not always yield positive effects on financial performance. Some research showed that ERP investment improved overall financial performance. . leading us to adopt a contingency perspective on its effectiveness and flexibility. henceforth making companies step back from such adoptions and staying compromised from huge benefits of ERP systems in firm functionality.

y To assess the factors of financial Performance. y To develop a framework for better ERP adoption results. y To find out the key factors effecting ERP System Implementations on firm functions. . y To find and to suggest the improvement measures to gain success on ERP adoption.OBJECTIVES OF THE STUDY y To find out the effect of ERP System Implementations on firm functions.

financial performance of an organization is quantitatively measured from 3 dimensions: Efficiency. In this study. ERP systems effect on financial performance of an organization is measured from 3 dimensions: Organizational scope. Geographical scope and Functional module scope. Effectiveness and Flexibility.RESEARCH FRAMEWORK y y In this study. STUDY Functional Scope ERP system Implementation Financial Performance Efficiency Organizational Scope Effectiveness Geographical Scope Flexibility .

Content validity techniques are adopted for collecting primary data. y Visual Basics & Microsoft InfoPath tools are used for preparing questionnaire. correlation.TECHNIQUES AND TOOLS UESD FOR STUDY y Convenient sample methodology is used for this study. SPSS (version 16.0) & Microsoft office excel tools are used for analyzing & interpreting the collected data. reliability techniques are used for analyzing & testing the hypothesis. Questionnaire. . y Pilot study. y Descriptive statistics.

y Hypothesis 3: More the time spent in using ERP. y Hypothesis 4: The extent of geographical scope of an ERP implementation has a positive association with financial performance. higher is the financial performance. higher is the financial performance. . y Hypothesis 2: Greater the maturity of ERP.HYPOTHESIS DEVELOPMENT y Hypothesis 1: Extent of functional module deployment has a positive association with financial performance.

ANALYSIS & INTERPRETATION OF DATA Designation 6% 13% 6% 6% Technical Manager Manager Technical Center Head CAE Analyst Technical System Head HOD Data Architect 6% 6% 57% Experience 13% 6% 31% 50% 0-5 years 5-10 years 10-15 years 15-20 years Hypothesis Result .

the factors considered for financial performance are: efficiency. effectiveness & flexibility. respondents have y y y y strongly agreed that some benefits that they have achieved with ERP usage are: quick service response. geographical scope) and the benefits achieved by ERP. shorten delivery time. improved efficiency of operation. risks involved in legacy system replacement are real concerns effecting ERP adoption in their implementation strategy whereas. From the study & with the help of literature review. The facts from the survey had given a strong support for the framework developed in the study stating the positive relationship between extent of ERP implementation (organizational. pressure from ERP vendor to upgrade the software. high level of enterprise wide data integration. vendor dependency have got mixed reaction. the other factors to be considered in ERP implementation to have a certainty in financial performance of the company are: strategic factors. . respondents have strongly agreed that ± non availability of application ERP packages.FINDINGS & SUGGESTIONS y Among the responses for benefits achieved from ERP usage. Based on the literature review & on the findings from the responses. effectiveness & flexibility which allows companies to achieve better financial performance. lowered cost of operation. reduced inventory management overhead. functional. Among the responses for problems faced by organization as of ERP usage. bringing better efficiency. substantial costs involved in ERP adoption.

Prioritize the expected benefits. Select a combination of benefit list that best meets your achievements. This is because of complex correlation between the key dimensions of ERP installation & stated benefits. Hence to attain maximum benefits each time. as it is impossible to attain all the needed benefits at a time. This ultimately reduces the complexity. . y Firstly develop a framework that best suits your thoughts along with: the key y y y y factors causing the adverse affect & the crucial benefits that you are looking from ERP adoption. and also the additional cost required to spend on every module. Make sure that the ERP vendor selected will best meet your stated achievements. it¶s better to prioritize the required benefits. confusion. Keep a broader view on key factors that affect the success of ERP in financial performance.Here are some the suggestions to get best out your ERP implementation.

and negative returns are found for projects with lesser scope. or geographic scope results in positive improved financial performance. It suggests that a combination of these factors produces higher outcomes. Thus we found broad-based support for our research model. . the highest increase in returns are found for ERP purchases with greater functional.CONCLUSION This study has shown that ERP projects with greater functional. organizational. geographical. and geographic scope. organizational. This study advances our understanding of the combined role of characteristics of organizational. functional factors on financial performance.

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