Economic Analysis of Implementing Enterprise Resource Planning (ERP)

The ERP software integrates all functional areas of business, including sales, logistics, billing, production, inventory management, quality, and human resources management, into one organisation-wide system. Enterprise Resource Planning systems may be considered as one of the most important development in the application of Information Technology in the business world.Its integrated approach has a tremendous payback if companies can successfully implement the software. However, many studies have reveled that ERP software implementation failure is very high. This study has focused on Techno-Economic view of the ERP implementation towards cost leadership in selected Indian Multinational Corporations. The Case studies of selected Indian Multinational Corporations have been analysed along with some empirical investigation with respect to ERP system's utilisation in organisations covering the various financial aspects of ERP software implementation including Cost-benefit analysis, Net Margin, ROI, Level of Significance its impact on major Operational costs, and its impact on the various margins.