Study on the Analysis of Return on Investment of ERP Adoption in Agricultural Products Processing Center

The purpose of this study is to improve the efficiency of APC decision making for introducing the ERP system by defining types of ERP and presenting the effect of each type and return on investment.  ERP types can be broadly classified as full packaged type, Cooperative Grading Type and financial management type. As the result of a survey of 31 APC practitioners who introduced ERP, it was found that the ERP of cooperative grading type has the highest efficiency compared to before the introduction. As the result of ROI analysis of full packaged type and cooperative grading type, the payback period of full package type is 5.77 years (6.34 considering the discount rate) and the payback period of cooperative grading type is 3.53 years (3.88 considering the discount rate). The result of this study expects to minimize the trial and error for decision making of ERP introduction and diffusion with agricultural policy maker.