MEASURING THE BENEFITS OF ENTERPRISE RESOURCE PLANNING(ERP) SOFTWARE

There is a debate in literature about the actual benefits of ERP implementation. Firms implementing ERP naturally expect cost reduction, improved productivity, and improved enterprise-wide decision making after the implementation of ERP. On the other hand, there has been a body of literature that talks about a productivity paradox that occurs after the implementation of an Information Technology system. It is best to address questions regarding the benefits of ERP implementation by quantifying and measuring the benefits. Even today, there is very sparse literature on quantitatively measuring the benefits of ERP implementation. This paper proposes ten matrices that can be tracked to measure the benefit derived from ERP implementation.