Introduction

Enterprise Resource Planning systems are designed to integrate various functions and processes in organizations. ERP software is developed in the form of different modules, each of which helps to perform distinct functions within the company. The various modules are integrated such that they interface with the same organization database and workflows can be designed across different modules. The software helps ensure availability of information and standardize business processes. ERP software evolved from earlier Manufacturing Resource Planning (MRP) systems, which included inventory management, procurement and production planning functions (Sandoe et al., 2001). The implementation of ERP software started in the early 1990's and during the late 1990's, the growth rate of the ERP market was between 30 and 40 percent. As of 2001, 30,000 companies worldwide had implemented ERP and the total value of the ERP market was at $25 bn. Although many studies have been conducted and reported on ERP implementation cases in the developed countries (Davenport, 1993; Parr et al., 1999; Lee et al., 2000, for example), there is very little literature and information on the experiences of companies in Asia and other parts of the developing world (Liyang, 2002; Tarafdar et al., 2002). At the same time, the rate of adoption of ERP in these regions has been quite high. There is a need to study and analyze issues and problems associated with ERP adoption in these companies. This is because their problems are significantly different than issues faced by organizations in the developed world, because of differences in the sophistication of IT use, and in cultural and social contexts. We describe, in this chapter, some of the experiences that companies in India have gone through, in the implementation of ERP. We develop a framework for analyzing the critical factors and issues that influence the ERP adoption process, and highlight the areas of opportunity and risk. The framework is based on empirical research. It agrees well with existing theoretical concepts in this domain, and is sufficiently general so as to be extended to other developing countries.