Investigating ERP Misalignment between ERP Systems and Implementing Organizations in Developing Countries

Abstract

The adoption of enterprise resource planning (ERP) systems by organizations from developing countries has increased dramatically. The continued growth of ERP adoption in developing countries is accompanied by high failure rates which makes it impossible for these organizations to enjoy the full realization of benefits. Many ERP systems’ failures are associated with the misalignment between the ERP requirements and the expectations of the client. 70 percent of ERP implementations fail to deliver the anticipated benefits with estimates that developing countries make up some 10 to 15 percent of global ERP sales (Hawari & Heeks, 2010). ERP systems do not usually fit the requirements of the implementing organizations in developing countries because of the different business practices, and legal and government regulations. There is a sizeable gap between the assumptions and requirements built into the designs of ERP systems and the realities of the client. Until academics, organizations, vendors and consultants understand better the phenomenon of misfit, the realization of benefits from ERP systems is likely to remain difficult and unpredictable on practical perspective. This paper seeks to investigate the complexities inherent in the ERP systems, which subsequently result in misalignment and this will equip decision makers to better prepare strategies that will increase the probability of realizing the desired results. This paper will contribute directly or indirectly to the reduction of failure rate of ERP projects on developing countries associated with misfit.