Enterprise Resource Planning (ERP) System is a software system that supports and automates the business processes by providing timely and accurate enterprise-wide information for decision making (Vemuri & Palvia, 2006). This paper is based on the research article, "Improvement in Operational Efficiency Due to ERP Systems Implementation: Truth or Myth?" by the authors Vijay K. Vemuri and Shailendra C. Palvia, which will discuss the purpose of the ERP system along with explaining some of the problems under investigation, and by identifying the parties involved that conducted the investigation, and describing the methods and variables used in researching the ERP system. Although, a system such as, the ERP system is very much needed within a business, however, is the system efficient enough to be cost effective. By researching the ERP system, the idea will be whether the investment towards the system is worth having. "Good research generates dependable data that are derived by professionally conducted practices and that can be used reliably for decision making" (Cooper & Schindler, 2006, p.22).
Define the Business Research and Purpose of ERP Vemuri and Palvia (2006) state, the purpose of researching the ERP system is to evaluate the improvement of operational efficiency due to the implementation of the ERP system. By analyzing the performance of this system, one can compare to the cost of implementing the ERP system into a business and measure how the system would enhance confidence and efficacy in business operations.
Explain the Problem Being Investigated By implementing the ERP system within a company a significant amount of money is needed to apply this implementation. An ERP system can range from a few million dollars to several hundred million dollars. "Despite high expenditures, ERP implementations have resulted in problems. Rushed software installations and