An Empirical Study on the Effect of Enterprise Resource Planning(ERP) on Organizational Performance

ERP is a new generation of software which provides internal and external agencies real-time access to the systems data. But, ERP projects always contain a high level of risk and uncertainty. The purchase of ERP software is a high-expenditure activity that consumes a significant portion of the capital budget. A wrong ERP project selection would either fail the project or weaken the system to an adverse impact on the company's performance.

This paper focuses on effect of ERP on organizational performance. Balance Score Card (BSC) model is used as a basis for measuring different parameters of organizational performance. Results showed that ERP significantly affects the over-all organizational performance.