Impact of Enterprise Resource Planning On the Financial Performance of an Organization

Abstract

Modern day business requires technology dynamics to be incorporated in day to day working. Impact of Enterprise resource planning is critical on improving the financial performance of the organization. Financial performance of an organization has been broken into two more variable, 1: Profitability 2: Operational Costs. The study analyzed the perception of ERP users in FMCG organizations and the effect of ERP usage/implementation on organizational financial KPIs. Literature has been reviewed to establish the associations between the variables. A close ended questionnaire based on Likert scale was leveraged/used to collect the data from the FMCG organizations of Pakistan. The results indicated that the items of the variables were valid and significant relationship existed between the ERP and profitability of organization. Moreover, the relationship between ERP and operational cost is also established