Impact of Use of ERP in Manufacturing Companies in Kenya
Abstract
Enterprise Resource Planning (ERP) systems are configurable information systems
packages that integrate information and information-based processes within and
across functional areas in an organization. ERP systems promise seamless integration
of all the information flowing through the organization. There are numerous
whitepapers and case studies in the Internet that describe the benefits of ERPs and
how these systems have positively impacted on businesses. Other studies indicate that
many organizations have failed to achieve the benefits they expect from ERP
implementations. Acquisition of ERP systems often lead to huge financial
investments that could adversely affect an organization's performance. It is therefore
important for organizations to be able to evaluate their needs for ERPs before
investing in them. Equally, it is imperative that organizations be able to evaluate the
impact of these systems on their performance. This research study carried out a survey
on 16 manufacturing companies in Kenya. Using a previously developed framework
for evaluating ERP acquisition, the study identified important factors that influence
ERP adoption in Kenya. The research identified factors affecting implementation and
utilization of ERP. The study used empirical methods to research on impact of ERP
on manufacturing companies in Kenya. The research findings show that at
organizational level, ERP has very positive impact on the performance of the
companies. At employee level, results show that ERP is instrumental in improving
user productivity. The research determined pertinent factors affecting adoption as well
as implementation and utilization of ERP systems. This study provides an
understanding of impact of ERP systems and highlights factors affecting acquisition
and implementation of these systems.
Citation
Degree Of Master Of Science In Information Systems, University of Nairobi, 2005Publisher
University of Nairobi School Of Computing And Informatics