Firm Performance Analysis of Relation to the Implementation and use of Enterprise Resource Planning Systems using GRA Method

Abstract

Enterprise Resource Planning (ERP) is a business management system that allows organizations to integrate and manage their core business processes in a centralized system. The demand for integrated information system solutions among manufacturing and service companies has led to the development of ERP. The system is designed to streamline business operations and increase efficiency by providing real-time access to critical data across different departments. It encompasses the design, development, and implementation of ERP systems, as well as the processes and methodologies used to manage and optimize the system. Abstractly, ERP involves a thorough analysis of an organization's business processes to identify areas of inefficiency and opportunities for improvement. Based on this analysis, a customized ERP system is designed and developed to meet the organization's specific needs. The system is then implemented, tested, and ongoing maintenance and support are provided to ensure optimal performance. ERP systems typically include modules for accounting, human resources, inventory management, supply chain management, and customer relationship management. By integrating these processes into a single system, organizations can reduce redundant tasks, improve data accuracy, and make better-informed decisions based on real-time information. Overall, ERP is a critical tool for organizations looking to optimize their operations and remain competitive in today's fast-paced business environment. ERP systems have become increasingly popular among businesses of all sizes due to the numerous benefits they offer, such as increased efficiency, better decision-making, and improved customer service. The significance of ERP research lies in the fact that ERP systems have become critical to the success of many organizations, especially in today's fast-paced and competitive business environment. Research in this area can help organizations better understand the benefits and challenges of implementing ERP systems and develop strategies to optimize their use. Deng originally suggested Grey Relational Analysis (GRA) as a tool for MCDM problems, which has been successfully used to address many MCDM challenges. GRA is a model for evaluating effects that can assess the relationship between successions and their fit with certain information analysis techniques or calculation strategies. The factors considered in GRA include credit histories, behavior preferences, performance abilities, identity features, and interpersonal relationships. From the results, it is seen that behavior preference obtained the first rank, whereas performance abilities had the lowest rank among Entrepreneur 1, Entrepreneur 2, Entrepreneur 3, Entrepreneur 4, and Entrepreneur 5. The value of the dataset for Enterprise Resource Planning in the GRA (Gray-related analysis) method shows that it resulted in performance abilities ranking the highest