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Enterprise Resource Planning (ERP) systems are configurable enterprise-wide information system packages that integrate information and information-based processes within and across functional areas in an organization. They have been widely adopted in many organizations and accepted as a de facto industry standard for the replacement of legacy systems. This paper analyzes and presents the costs and benefits of ERP systems for project-based industries, which have lagged behind other major industries in adopting ERP systems due to their project-centric nature and the high stakes involved in ERP implementation. The challenges during the process of ERP implementations are also identified as part of the effort to understand the implied costs of an ERP system. The evidence of the costs and benefits are drawn from previous studies and the analysis of the prevailing working practices in project-based firms. The classification of the costs and benefits constitutes a cost and benefit taxonomy which can be used to enable executives in project-based firms to make informed decisions on their ERP system investments.

Enterprise Resource Planning Systems for Project-Based Firms: Benefits, Costs & Implementation Challenges