Abstract: Enterprise Resource Planning (ERP) is very vast, complicated and typical concept used in the modem business world. It promises some remarkable strategic, operational and financial benefits to the overall efficiency of adopting firms. This research is conducted at one of the leading automobile manufacturer of Pakistan, i.e. Indus Motors Company. The main objective of the study is to identify the impact of ERP on operational and financial performance of the company. Different variables were selected to analyze the performance with respect to ERP. For this purpose, a survey was conducted in organization by distributing questionnaires. The responses were analyzed by using different statistical techniques. The findings may indicate that ERP may have a significant impact on organizational efficiency. .

Submitted in partial fulfillment of the requirement for the degree of BBA.

Contents 1.0 PURPOSE• 1 1.1 INTRODUCTIONS . 1 2.0 LITERATURE REVIEW’ 3 2.1 INTRODUCTION TO ERP’ 3 2.2 HISTORY OF ERP’ 4 2.3 DEFINATION OF ERP: 4 2.4 EFFECTS OF ERP ON ORGANIZATIONS’ 5 2.5 STRATEGIC FACTORS’ 6 2.5.1 Organization Assessment 6 2.5.2 Project Vision’ 6 2.5.3 Hiring of Consultants’ 6 2.5.4 Benchmarking’ 7 2.6 TECHNICAL FACTORS’ 7 2.6.1 Business Process Re-engineering (BPR[ 7 2.6.2 Software and Vendor Selection’ 7 2.6.3 Implementation Approach’ 8 2.7 OPERATIONAL FACTORS’ 8 2.7.1 Installation Process’ 8 2.7.2 Integration’ 8 2.7.3 Testing’ 8 2.7.4 Go Live’ 9 2.8 Critical Success Factors’ g 2.9 Adoption & Performance impacts of ERP’ 9 2.10 Strategic driving forces behind the adoption of ERP’ 10 2.11 Financial Impacts of 10 2.12 Variables Enabling IT Implementation and Integration Success’, 11 2.13 ERP Vendors 11 2.13.1 SAP Error! Bookmark not defined. 2.13.2 Oracle Error! Bookmark not defined, 2,13.3 Microsoft Dynamics 12 2.14 ERP’S impact on its stakeholders 12 2.14.1 Impact during the Implementation Process 13 2.14.2 Impact on Departments .13 2.14.3 Impact on the organization as a whole 13 2.14.4 Impact on Employment 13 2.14.5 Impact on the nature of Job and information access 13 2.15 Limitations of ERP 14 2.16 Some issues relating to ERP systems 15 2.17 Problems and issues of ERP Project Management Faced by Pakistani Organization and their Remedies 16 2.17.1REMEDIES Error! Bookmark not defined. 2.17.2 Remedy for Ambiguous Needs Error! Bookmark not defined. 2.17.3 Remedy For Lack of communication to employees Error! Bookmark not defined. 2.17.4 Remedy for Uncertainty among employees Error! Bookmark not defined. 2.17.5 Remedy for Overcoming the Resistance to Change Error! Bookmark not defined. 2.17.6 Remedy for Unreasonable Deadlines Error! Bookmark not defined. 2.17.7 Remedy for Funding Error! Bookmark not defined. 2.17.8 Remedy for Organizational Politics Error! Bookmark not defined. 2.17.9 Unexpected Gaps Error! Bookmark not defined. 2.18 What the future holds for ERP in Pakistan2 Error! Bookmark not defined. 2.18.lCurrent level Error! Bookmark not defined. 2.18.2Market forecasting Error! Bookmark not defined. 2.18.3 Conclusion Error! Bookmark not defined. 3.0 RESEARCH METHODOLGY 21 3.lResearch Strategy: 21 3.2 SurveyS 21 3.3 HYPOTHESIS 21 3.4 KEY VARIABLES 22 3.4.1 Saving time 22 3.4.2 System Awareness 22 3.4.3 Generating reports 22 3.4.4 Profit maximization 22 3.4.5 Inter- department Co-ordination 23 3.4.6 Organization Structure Change: 23 3.4.7 Coping up with new TechnoIogy . 23 3.5 POPULATIONS 23 3.6 SAMPLING METHODS 23 4.0 DATA ANALYSIS AND FIN DINGS 24 4.1FREQUENCY 24 4.2 CROSS TABULATION 25 4.3 CORRELATIONS 32 4.4 REGRESSION ANALYSIS 39 4.6 FINDINGS’ 48 5.0 CONCLUSION AND RECOMMENDATION’ 49 5.1 CONCLUSION 49 References 1 APPENDIX 4 .