44、information availability and reengineering procedures, which are all reasons for acquiring ERP. Other business reasons include enhancing cooperation and teamwork between employees in the company. In addition, benefits expected from implementation of ERP systems include tangible benefits like reducin 。

45、g costs, reducing operations time, and a lean organization, while intangible benefits like information integration, better information quality, and increase in customer satisfaction also exist (Loh et al., 2006;
Nicolaou, 2004). Such perceived benefits are expected because ERP help make production i 。

46、nside manufacturing companies more efficient by integrating information from other departments like sales and procurement into the production system, which as a result helps eliminate costs and improve production schedules (Matolcsy et al., 2005).This discussion leads to the observation that measure 。

47、ments of business performance should accurately match the reasons behind ERP implementation unique to each specific organization.ERP ProjectsERP systems are usually implemented as projects. ERP implementation projects usually involve selecting the ERP vendor, establishing business process reengineer 。

48、ing, implementation, and evaluation of the adopted system (Wei, 2008).ERP implementation projects normally involve internal IT & business personnel from the adopting firm as well as external consultants from implementation partners in order to be successful. This shows how human resources intensive。

49、ERP projects are. It is also worth mentioning that a good implementation partner is considered one of the most important factors for the success of ERP projects, and is another addition to the complexity of ERP implementation projects (Dai, 2008).Due to the complexity of ERP projects it will be impo 。

50、rtant to discuss ERP project implementation issues and ERP project failures in the next sections to further understand the introduction of ERP into organizations and how it contributes to the relationship between ERP and business performance.ERP Implementation IssuesThere are different utilization i 。

51、ssues that face business that decides to go forward and implement ERP. ERP requires a big portion of time, personnel, and capital (Laukkanen et al., 2007). Most of this cost is not associated with the ERP software package itself but with its implementation, including customizations, configurations,。

52、and consultation services to implement it (Hitt et al., 2002). The time needed to establish an ERP system is at an average of 21 months. A Sample study of Taiwanese firms also found that it takes about 11 months on average to implement the ERP system (Huang et al., 2009). A similar period was sugges 。

53、ted by Nicolaou (2004) who stated that ERP implementation projects take on average 8 months. In all cases, Gupta et al. (2004) mentioned that ERP projects frequently require more time and capital than what was planned due to the heavy integration needed on the technical and business sides.It can be。

54、said that ERP projects frequently involve business process reengineering (BPR), can include customizations, and require good budgeting and time management in order to lead to successful business performance gains (Velcu, 2007)ERP Project FailureMost of the implementation failures for ERP were early。

55、ERP adoptions which did not have strong business justifications (Gupta et al., 2004). This was attributed to the misalignment between the objectives from the ERP implementation and the strategic organizational and IT goals. If such a misalignment exists, it can cause the business to lose the advanta 。

56、ges of ERP systems. On the other hand, investing into ERP systems without any objective other than following the market or industry trend might also cause an ERP project to fail (Kang et al., 2008).In addition, ERP failure can be associated to internal or external aspects to the organization. Intern 。

57、ally, failure is associated to the insufficient business knowledge, while externally failure is associated to the weak technical skills of the consultants helping in the ERP implementation. Miscommunication between the teams involved can also result into failure (Hitt et al., 2002). Another issue ra 。

58、ised was that resisting BPR activities associated with ERP can lead to ERP project failure or a huge loss of benefits (Velcu, 2007). Insufficient training of endusers is also a reason attributed to ERP failures (Gupta et al., 2004;
Hkkinen & Hilmola, 2007;
Loh et al., 2006). As a result to measure t 。

59、he overall effect of ERP on a business, sufficient training should first be provided to the end-users to make the results more accurate.Activities like organizational integration, user acceptance testing, accurate scope planning, and successful communication management between project members are al 。

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