Measuring the Impact of Enterprise Resource Planning (ERP) Systems Through the Prism of Accounting Theory
Year: 2009
Type: article
Abstract: Background and Research Questions Enterprise Resource Planning (ERP) systems emerged in the 1990s as one of the fastest growing and perhaps one of the most important developments in corporate use of information technology (Davenport 1998).These systems, which evolved from Material Requirements Planning (MRP) and Manufacturing Resource Planning (MRP-II) systems (Umble et al. 2003), consolidate into one common system all the back office information processing needs of a typical business including: accounting/finance, human resources, operations, supply chain, and customer information (Davenport 1998).This common system design allows firms to capture information once and then share it across functional areas enabling "information congruence" (O'Leary 2002).Vendors often cite this feature in their promotional material as noted in the following quote from Oracle Corporation's Web site 1 : Oracle E-Business Suite is your fastest path to high-quality enterprise intelligence, bringing your company a true 360-degree view of your finances, your customers, and your supply chains, so you can make faster, better decisions and grow profitability in a competitive marketplace (Oracle 2007).ERP systems replaced older legacy systems that had been developed in most organizations along functional boundaries.The evolution of these legacy systems often resulted in duplicate information being collected and stored in various departments, business units, geographic regions, factories, offices, etc. (O'Leary 2002).These so called "silos of information" were inefficient because of the duplicate effort needed to maintain them, and because they created an environment in which data was not easily shared among various members of the management 1 Oracle Corporation is the 2 nd largest supplier of ERP systems, which they refer to as "Oracle E-Business Suite." * A4=Total Current Assets
Author: John J. Morris
Institution: Kent State University
Language: English
Subfield: Management Information Systems
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W81405920