A FRAMEWORK FOR CLASSIFYING MISFITS BETWEEN ENTERPRISE RESOURCE PLANNING (ERP) SYSTEMS AND BUSINESS STRATEGIES

A framework to classify ERP misfits into logical categories that provide insights for solution derivation is introduced and the theoretical contribution of the ERPMisfit problem is explored to provide information for researchers to determine appropriate theories and concepts explaining this domain.

Abstract

Enterprise resource planning (ERP) is a broad set of activities that is supported by multimodule application software that helps manufacturers or other businesses manage their
\nactivities. ERP is more than a software package; it includes the efforts and activities to
\nintegrate internal and external management information, business process automation
\nand reengineering, and organisation structure streamlining. Thus, ERP eventually leads
\nto an efficient and competitive business. Despite the prominence of ERP systems,
\napproximately three-quarters of ERP projects are deemed as failures. Most failures are
\nattributed to the misfit between pre-loaded business models in the ERP system and
\nbusiness requirements in the real world. This paper introduces a framework to classify
\nERP misfits into logical categories that provide insights for solution derivation.
\nSubsequently, the classification methods are applied to a case study. Practitioners can
\nuse the misfit classification method to derive corresponding actions as solutions for ERP
\nmisfits based on their nature or specificity. In addition, the theoretical contribution of the
\nERP misfit problem is explored to provide information for researchers to determine
\nappropriate theories and concepts explaining this domain.