Enterprise resource planning: cultural fits and misfits: is ERP a universal solution?

E RP software packages that manage and integrate business processes across organizational functions and locations cost millions of dollars to buy, several times as much to implement, and necessitate disruptive organizational change. While some companies have enjoyed significant gains, others have had to scale back their projects and accept minimal benefits, or even abandon implementation of ERP projects [4]. Historically, a common problem when adopting package software has been the issue of “misfits,” that is, the gaps between the functionality offered by the package and that required by the adopting organization [1, 3]. As a result, organizations have had to choose among adapting to the new functionality, living with the shortfall, instituting workarounds, or customizing the package. ERP software, as a class of package software, also presents this problematic choice to organizations. The problem is exacerbated because ERP implementation is more complex due to cross-module integration, data standardization, adoption of the underlying business model (“best practices”), compressed implementation schedule, and the involvement of a large number of stakeholders. The knowledge gap among implementation personnel is usually significant. Few organizational users underChristina Soh, Sia Siew Kien, and Joanne Tay-Yap