Impact of erp system success on organizational culture

Abstract

The changes in the technological environment pose enormous challenges to the survival of the modern day organizations. In the current situation, developments in Information Systems (IS) play a crucial role in the development of an organization. During 1990s, the Management Information Systems (MIS) gradually evolved in to Enterprise Resource Planning (ERP). ERP helps to integrate the organizationand#8223;s business processes to achieve improvement in operational efficiency and thereby business performance. Effective implementation of ERP is required in all sectors of the Industry. When fully utilized, ERP has given the best results. The factors of resistance affect the utilization of ERP which eventually lead to reduced effectiveness of ERP. The western developed ERP systems, when implemented in India, gives rise to difficulties. The nature of such difficulties is unique based on the nature and size of the organizations. ERP system implemented in an organization is believed to possess the behavior model of its users. But the models are not custom designed and hence do not resemble the behavior of the employees of the user organization. To overcome this mismatch, the employees of the user organization are required to change their behaviour to suit the requirements of the ERP. Many researchers have found that the cultural mismatch is the major reason for failure in the adoption of western developed ERP in the developing nations of the Asian continent. Also there have been instances where certain organizations have successfully implemented ERP but failed to utilize the system. In spite of the above situation, there are organizations which have adapted to ERP because of the (i) flexibility shown by the employees (ii) Organization newline