INTRODUCTION:

Enterprise resource planning (ERP) is business management software that allows an organization to use a system of integrated applications to manage the business. ERP software integrates all facets of an operation, including development, manufacturing, sales and marketing. ERP software consists of many enterprise software modules that are individually purchased, based on what best meets the specific needs and technical capabilities of the organization. Each ERP module is focused on one area of business processes, such as product development or marketing. Some of the more common ERP modules include those for product planning, material purchasing, inventory control, distribution, accounting, marketing, finance and HR. The basic goal is to provide one central repository for all information that is shared by all the various ERP facets in order to smooth the flow of data across the organization. The integration among business functions facilitates communication and information sharing, leading to dramatic gains in productivity and speed. Cisco Systems, for example, harnessed ERP to help it become the market leader in the global networking industry. Ciscos ERP system was the backbone that enabled its new business model Global Networked Business based on the use of electronic communications to build interactive, knowledge-based relationships with its customers, business partners, suppliers and employees. In the process, Cisco doubled in size each year and reaped hundreds of millions of dollars in both cost savings and revenue enhancements. Autodesk, a computer-aided design software company, reported a decrease in its order fulfillment times from two weeks to 24 hours after installing an ERP system. Similar examples abound in todays business environment

OBJECTIVES:
1. Cost reduction 2. Cycle time reduction 3. Quality improvement 4. Customer service improvement 5. Better resource management 6. Improved decision making 7. Support for business growth 8. Building cost leadership 9. Building external linkages 10. IT cost reduction 11. Increased IT infrastructure capability 12. Empowerment 13. Facilitating business learning

LITERATURE REVIEW:
Nowadays one of the significant competitive advantages in business is to faster the supply chain. This can happen with a better strategic technology planning and often incorporation of Information System (IS) to manage this process more effective and efficiently. Those IS are the roots of todays Enterprise Resource Planning (ERP) systems. During the 90s ERP system was the major business generators for the IT sector, while nowadays more companies are oriented towards off-the-shelf solution. In their research Soh, Kien and Tay-Yap (2000) discuss the issues organization face then go for off-the-shelf solutions. Common problems are misfits an ERP system has related to certain business process. These misfits resolution is tradeoffs between organizational changes and IS customization. They also explain that a misfit analysis must be carried out early in the process. Moreover, comprehensive understanding of the critical organizational processes and detailed knowledge of this complex software are required. ERPs are considered complex and painful to implement mainly because they force an organization to change its way of working as well as they are considerable expense, with long return on investment value (Al-Mashari et al., 2003). Implementing an ERP system takes from one to five years. Due to those and other factors some organization found them in situation, where buying an ERP system cost them times cheaper than installing and maintaining it. Often those issues lead organizations to cancel or drop of the idea of implementing particular ERP.

CRITICAL FACTORS:
1. User training 2. Communication 3. Documentation 4. Change management 5. Process optimization 6. Integration 7. Informate 8. Enrich the use of already installed systems 9. Commitment from top management; 10. Form a task force with personnel from all functional areas to foster ties between project management and business units; 11. Take an assessment of hardware requirements; 12. Step-by-step introduction rather than all at once; 13. Start early planning on user training and support; 14. Streamline decision making so that implementation work can move quickly; 15. Be patient because ERP implementation takes time.