The impact of enterprise resource planning system toward organizational performance in a case study micro-company

Lim, Chiaw Hong (2019) The impact of enterprise resource planning system toward organizational performance in a case study micro-company. Project Report. Universiti Teknikal Malaysia Melaka, Melaka, Malaysia. (Submitted)

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Abstract

The business environment today is developing rapidly as such the amount of data and information that is being generated is huge which causes process of transferring information become more complex. Enterprise Resource Planning (ERP) System is a software that can integrate all the information across departments in an organization to enhance their Information Technology (IT) infrastructures, enhance business processes and deliver high quality of services. It can tremendously improve the efficiency and effectiveness of an organization. Technology Acceptance Model (TAM) is used as a theory model to identify the acceptance of the ERP System. The aim of this research is to investigate the impacts of implementation of ERP System toward organizational performance to provide a new insight for other system adopters especially micro-company. The study is conducted at a dynamic micro company involved in e–commerce. There are nineteen employees of which ten employees participated in the study. The respondents are directly involved in the daily operation of ERP system and were interviewed using semi structured questionnaires. The in-depth interview gives a more detailed information and knowledge of all the ERP System adopters and provider toward ERP System and its ability to improve the performance of the organizations. Based on the research, it is found that financial solution, human capital management solution, sales and service solution, procurement and logistic solution, product development and manufacturing solution and corporate service solution have impact toward organizational performance in the micro-company. The results showed that financial solution is the most influencing factors among these solutions. Although ERP System implementation is a costly investment to a micro size company, the adoption of ERP system has shown to provide benefits to organization. Thus, it is recommended to the company to adopt the ERP system and to include the vendors in the implementation process.

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