THE IMPACT OF ERP IMPLEMENTATION ON BUSINESS PROCESS OUTCOME WITH COMPARATIVE ANALYSIS OF ERP AND NON ERP COMPANIES

Abstract

Purpose: In the current research, we made an attempt to analyze the impact of ERP implementation on Business process. For this purpose we selected the variables of business performance/outcome and business improvement to determine their relationship with ERP implementation. Methodology/sample: Data collection is conducted with the help of Questionnaire survey. Structured questionnaire was developed, based on the research objectives and primary data has been collected from supply chain professionals, we made two separate analysis of ERP implemented firms and Non-ERP implemented firms, linear regression has been applied on the collected data. Total 100 respondents are were selected. Data has been analyzed by means of statistical methods of descriptive and inferential analysis through SPSS. Multiple Linear Regression (MLR) has been used with the significance of 95% to test the linear relationship between dependent and independent variables. Findings: We found significant impact of ERP implementation on overall business performance including productivity and process improvement. While, we found that there is a significant need of ERP process in non ERP firms in order to improve supply chain process, production cycle, time management, cost efficiency, improvement in productivity and process improvement. Practical Implications- Pakistan is a developing country, where lots of effort shall be done to ensure that all businesses understand importance of ERP systems and are committed to introducing the system. Considering critical success factors might allow companies to explore a wide variety of opportunities for the successful implementation of ERP systems. The results of this research demonstrated that the ERP system is actually becoming very popular in Pakistan