Enterprise Resource Planning (ERP): A New Paradigm In Corporate Governance

Project and Seminar Material for Business Administration and Management BAM

Chapter One

Introduction

1.1 Background to the Study

ERP provides an integrated and continuously updated view of core business processes using common Enterprise resource planning (ERP) is the integrated management of core business processes, often in real-time and mediated by software and technology. The core business process include marketing, production, purchasing, inventory management, shipping and payment, finance etc.ERP is used to collect, store, manage and interpret data from these many business activities databases maintained by a database management system. ERP systems track business resources—cash, raw materials, production capacity—and the status of business commitments: orders, purchase orders, and payroll. The system application shares data across the various departments that provide the data. ERP enhances the flow of information across the various business unit and outside stakeholders. The increasing use of ERP by small and large firms has placed ERP as one of the greatest IT investments by firms as it facilitates the in tegration of various organizational systems and enhances accurate transactions and production, for the promotion of organizational efficiency. The development of ERP system differs from traditional system development and applies a variety of computer hardware and network configurations, through the use of database as an information repository. The understanding of Corporate governance is also essential for the understanding of the research . Corporate governance is the institution of taking cognizance and promoting the interests of the firms many stakeholders, such as financiers, government ,shareholders, management, customers, suppliers, and the community. Since corporate governance facilitates the attainment of the firms company’s objectives covering the firms action plans , internal controls ,performance measurement and corporate disclosure. The research seek to determine ERP:A NEW PARADIGM IN CORPORATE GOVERNANCE

1.2 Statement of the Problem

The implementation of ERP is not without challenges .Since it is and investment of various IT infrastructures, it is somehow expensive to institute and maintain. Also Customization can be challenging and. Re-engineering the business processes to fit the ERP system cause harm to competitiveness or divert focus from other critical activities. It is also significant to address organizational resistance to ERP implementation. While also ensuring the harmonization of ERP across the firms various units. ERP requires the facilitation of extensive training and Extensive training requirements take resources from daily operation. The problem confronting the research is to appraise ERP:A NEW PARADIGM IN CORPORATE GOVERNANCE

1.3 Objectives of the Study

To determine ERP: A new paradigm in corporate governance

1.4 Research Questions

What is ERP
What is the relevance of ERP to corporate governance.

1.5 Significance of the Study

The study shall appraise ERP: A NEW PARADIGM IN CORPORATE GOVERNANCE

1.6 Research Hypothesis

Ho ERP as A NEW PARADIGM IN CORPORATE GOVERNANCE is not effective
Hi ERP as:A NEW PARADIGM IN CORPORATE GOVERNANCE is effective

1.7 Scope of the Study

The study focuses on the appraisal of ERP:A NEW PARADIGM IN CORPORATE GOVERNANCE

1.8 Limitations of the Study

The study was confronted by some constraints including logistic and geographical factors.

1.9 Definition of Terms

Corporate Governance Defined

Corporate governance is the institution of taking cognizance and promoting the interests of the firms many stakeholders, such as financiers, government ,shareholders, management, customers, suppliers, and the community. Since corporate governance facilitates the attainment of the firms company’s objectives covering the firms action plans , internal controls ,performance measurement and corporate disclosure

ERP Defined

.ERP provides an integrated and continuously updated view of core business processes using common Enterprise resource planning (ERP) is the integrated management of core business processes, often in real-time and mediated by software and technology. The core business process include marketing, production, purchasing, inventory management, shipping and payment, finance etc.ERP is used to collect, store, manage and interpret data from these many business activities databases maintained by a database management system. ERP systems track business resources—cash, raw materials, production capacity—and the status of business commitments: orders, purchase orders, and payroll. The system application shares data across the various departments that provide the data. ERP enhances the flow of information across the various business unit and outside stakeholders. The increasing use of ERP by small and large firms has placed ERP as one of the greatest IT investments by firms as it facilitates the in tegration of various organizational systems and enhances accurate transactions and production, for the promotion of organizational efficiency.

Project Material Download