Impact of enterprise resource planning software implementation on companies’ efficiency

Abstract

This article is devoted to the description of the results of the research of the impact of the introduction of ERP-systems on the economic and financial performance of the company. To conduct an empirical study, 50 Russian companies of petrochemical production were selected. The purpose of the research was to quantify the results of the ERP systems implementation. Performance evaluation is of the interest to company executives and the board of directors, since the process of implementing an ERP system requires impressive financial investments and labor costs. However, at present, there are difficulties with scientifically based methods for evaluating the results of the ERP systems implementation. Software vendors announce attractive numbers about the effectiveness of the ERP systems implementation, but can they be trusted, since they are interested in sales. Therefore, we proposed the Monte Carlo method to assess the impact of the introduction of ERP systems on the efficiency of the company. The company's costs and savings characterize variables, increase in net profit and NPV were selected as result variables. As a result of the study, obtained data show both the probability distribution in relation to the indicated variables, and the average values of the implementation effects in such areas as stocks and production, working capital, efficiency, labor costs and reporting. According to the results of the analysis of the selected population, the greatest effects from the introduction of ERP-systems were obtained in the formation of management reporting and logistics, which is due to the greatest attention of managers and IT companies to these issues.