Due to dramatic changes in organisational management, technology plays an important role in today business environment. According to Groomer & Murthy (1989) incorporation of information technology solutions are becoming increasingly important for all businesses in order to operate successfully. One way that many businesses have implemented information technology on a large scale (Groomer & Murthy, 1989) is by setting up Enterprise Resource Planning (ERP) systems to achieve their business transaction and data processing needs. According to the business need, selecting the appropriate information system such as Enterprise resource planning (ERP) will be appropriate and suitable because it improves efficiency. However it should be borne in mind that every business has its own dimension; therefore, there is the dire need of appropriate selection and need based customizations (Kleiner et al., 1999).
In addition, Julien & Raymond (1994) rightfully pointed out that researchers have shown that more "technology-consuming" firms are distinguished from others by: greater profitability, the differential cost of new equipment, the management profile or the owner-manager's personal characteristics, organizational complexity, centralization and formalization, strategy type and the quality of technological information obtained together with the capacity to process it. However, Sheng Choua & Hao Hong (2013) noted that after implementation of ERP systems many organisations have realised that these systems was not as successful as been expected. Main aim of this review is to provide information on ERP systems, to identify risks involved in using of ERP systems and limitations and benefits of implementing ERP.
Enterprise Resource Planning System
Light & Gibson (1999) pointed out that ERP is a high technical cross-functional information system, which is considered to enhance organizational performance and competitiveness by eliminating duplication of work and data as well as streamlining business processes. And it is the tool that facilitates the business not only to nourish its operation but also flourish its profits and growth (Zhua et al., 2010). Additionally Kumar & Hillegersberg (2000, p. 22) has defined ERP systems as “configurable information systems packages that integrate information and information-based processes within- and cross-functional areas in an organization”.
Enterprise resource planning software such as Oracle and SAP is highly effective tools to manage and analyse the multidimensional aspects of businesses such as financials, operations and corporate services, human capital management, etc. (Priyadarshini, 2002). A company using the ERP financial products (Priyadarshini, 2002) can save a lot of money over the long term and the organization's productivity will be improved. Furthermore Morris (2011) suggested that those firms which are implementing ERP systems are less likely to report internal control weaknesses compared to non...