64 The Evolution of ERP and its Relationship with E-Business MRPII Hierarchy The main additional functions contained in MRPII V\VWHPV ZHUH ³SXUFKDVLQJ FDSDFLW\ SODQQLQJ and master scheduling, as well as inventory and production planning” (Kessler, 1991). Along with integrating all of these additional functions in one whole, it also implemented the procedures devel- oped during the years of using MRP to solve some problems that appeared in MRP. It resulted in a general control structure that breaks the produc- tion control problem into segments and provides a hierarchical approach (Hopp & Spearman, 2000). Hierarchy of the MRPII defers from one software package to another. One version of an MRPII hierarchy is shown in Figure 1 (Toomey, 1996). Such a structure makes it possible for a manufacturer to deal with the intimidating task of coordinating thousands of orders with hundreds of tools for thousands of end items made up of additional thousands of components. There are many different forms of the MRPII hierarchy but generally all of them constitute three major parts: long range planning, intermediate- range planning, and short-term control as shown R Q W K H U LJ K W K D Q G V L G H RIW K H ¿J X U H  An explanation of these is presented in the following paragraphs (Toomey, 1996). Long range planning consists of forecast- ing, resource planning, and aggregate planning. Forecasting predicts demands in the future, and resource planning determines the capacity re- quirements over the long term while aggregate planning determines the level of production. Intermediate planning provides rules for planning the different functions that take place during production. Intermediate planning forms demand management, master production schedule (MPS), rough-cut capacity planning (RCCP), bill of material (BOM), material requirements planning (MRP), and capacity requirements planning (CRP). Demand management is the process of convert- ing the long-term aggregate forecast into a detailed forecast while tracking individual customer orders. The MPS is the source of demand for the MRPII system. The MPS gives the quantity and due dates for all parts that have independent de- mand. The RCCP provides a quick capacity check of a few critical resources to ensure the feasibility of the MPS. The BOM provides the relationship EHWZHHQHQGLWHPV¿QLVKHGSURGXFWVDQGORZHU level items (the constituent parts of the end item). The MRP conducts allocation and performs the job release function by releasing materials onto WKHVKRSÀRRUDQGFRQYHUWLQJWKHPLQWRVFKHGXOHG receipts. Its output is the job pool, which consists of planned order releases. The CRP provides a more detailed capacity check on the production plans compared to RCCP. Short term planning serves job dispatching and input/output planning. Job dispatching provides rules for arranging the queue in front of each ZRUNVWDWLRQRQWKHSODQWÀRRUVXFKWKDWGXHGDWH integrity is maintained while machine utilisation is kept high and manufacturing times are kept low. Input/output planning provides an easy way to check releases against available capacity by monitoring the level of work in progress (WIP) at each work centre (Toomey, 1996). Disadvantages of MRPII Systems The inaccuracy of the bill of materials and inven- tory database is a common problem with MRPII systems (Bayhan, 1999). Inaccurate bills of ma- terials mean inaccurate material and capacity plans. Providing a management system that will facilitate data accuracy will likely require major adjustments in strategic management approaches (Correll, 1995). However, the MRPII systems contain a method for planning and procuring the materials to support production. During years of using MRPII, the need for other functions arose that would, together with MRPII, create an actually integrated manufacturing manage- ment system. Consequently, it was completed by creating a large production control system named 65 The Evolution of ERP and its Relationship with E-Business enterprise resources planning (ERP) systems. The following section will explain this system. Enterprise Resources Planning (ERP) Systems ERP is an extension of MRPII with additional capabilities, such as better graphical user interface, the use of relational database, fourth language generation, open system portability, and is much more integrated than MRPII (Boyle, 2000). In addition, Kapp, Latham, and Ford-Latham (2001) state that the difference between ERP and MRPII is the inclusion of a variety of manufacturing processes within ERP, in which modern ERP software is able to handle both discrete work RUGHUVDQGÀRZRUGHUVMXVWLQWLPH-,7DQG MRP, electronic data interchange (EDI), and hand-entered orders. Wainewright (2002) also stated that MRP was used for tracking suppliers, ZRUNLQSURJUHVVDQGWKHRXWSXWRI¿QLVKHGJRRGV while ERP was used for all type of business with DGGLWLRQDOIXQFWLRQVLQFOXGLQJ¿QDQFLDOVSD\UROO and human resources management. According to Wallace and Kremzar (2001), ERP is far better than MRPII for three reasons: 1. ERP applies a single set of resource planning tools across the entire enterprise. 2. ERP provides real-time integration of sales, RSHUDWLQJDQG¿QDQFLDOGDWD 3. ERP connects resource planning approaches to the extended supply chain of customers and suppliers. 'H¿QLWLRQRIERP Systems ERP is the technological backbone of electronic EXVLQHVVHEXVLQHVVLQWKHEDFNRI¿FH,WZDV FRPPRQGXULQJWKHVWR¿QGWKHFRPSXWLQJ VRIWZDUHIRUWKH¿QDQFHGHSDUWPHQWZDVGLIIHU- ent from that used by the human resources or stores departments. According to Kalakota and 5REL Q V R Q    ( 5 3³R YH U F R P H V W K H L Q W H J U D W L R Q  challenges posed by disconnected, uncoordinated EDFNRI¿FHDSSOLFDWLRQVWKDWKDYHRIWHQRXWOLYHG their usefulness.” 7KHUH DUH VHYHUDO (53 GH¿QLWLRQV WKDW DUH all more or less similar (Hicks, 1997). ERP is GH¿QHG DV PRGXOHEDVHG LQWHJUDWHG VRIWZDUH packages that control all the personnel, material, PRQHWDU\DQGLQIRUPDWLRQÀRZVRIDFRPSDQ\ (Granlund & Malmi, 2002). Gelinas, Sutton, and 2UDPVXJJHVWDQDOWHUQDWLYHGH¿QLWLRQIRU ERP systems as: Integrated software packages designed to provide complete integration of an organisation’s business information processing systems and all related data. These systems are conceptually based on event-driven systems concepts, which include the FDSWXULQJRIERWK¿QDQFLDODQGQRQ¿QDQFLDOGDWD to facilitate access and ad hoc analysis. <HW DQRWKHU GH¿QLWLRQ LV JLYHQ E\ :DOODFH and Kremzar (2001); they state that ERP sys- tems are an enterprise-wide information system solution set of management tools that balances demand and supply, including the ability to link customers and suppliers into a complete supply FKDLQHPSOR\LQJFRQ¿UPHGEXVLQHVVSURFHVVHV for decision-making, and providing high degrees of cross-functional integration among sales, marketing, manufacturing, operations, logistics, S X U F K D V L Q J  ¿ Q D Q F H  D Q G K X P D Q U H V R X U F H V  W K H U H E \  enabling people to run their business with high levels of customer service and productivity, and simultaneously lower costs and inventories, and providing the foundation for effective e-com- merce. Thus, for the purpose of this paper, ERP FDQEHGH¿QHGDVVRIWZDUHWKDWFDQEHXVHGWR integrate information across all functions of an organisation to automate corporate business proc- esses. Some ERP systems, according to Markus and Tanis (2000), were developed out of admin- LVWUDWLYH¿QDQFLDODQGKXPDQUHVRXUFHVVLGHVRI the business (e.g., SAP and PeopleSoft), and others grew from materials resource planning in manufacturing (e.g., Baan). 66 The Evolution of ERP and its Relationship with E-Business Feature of ERP Systems The many features of ERP systems have greatly increased the quantity and quality of information provided to enterprises, helping them to achieve HI¿FLHQF\LQWKHLUPDQDJHPHQWSURFHVVHV2YHU the years, much has been learned about the success of ERP systems. Several researchers show that ERP provided tremendous support for business planning and organisational objectives (Bingi, Sharma, & Godla, 1999). Some of the major features of ERP and what ERP can perform for the business system are noted in the following paragraphs, based on the literature reviewed. Integration (53¿UVWDSSHDUHGRQWKHGHFLVLRQVXSSRUWKRUL- zon in the early-1990s (Granlund & Malmi, 2002). As an integrated enterprise-wide information system, ERP was designed to provide managers with easy access to internal and external informa- tion that are crucial to the success of a company in the business environment. Companies need to establish a streamline business process, which FDQ VLJQL¿FDQWO\ HQKDQFH WKH FRPPXQLFDWLRQ and cooperation among functional departments. To achieve this objective, functional integra- tion is required (Tarn, Yen, & Beaumont, 2002; Zheng, Yen, & Tarn, 2000). The current ERP systems provide companies with the mechanism to systematically and effectively measure the per- formance of key business processes and evaluate the contribution of various aspects of the business (Davenport, 1998). An ERP system has the potential to integrate all processes and functions of a business and to present a complete picture of the entire organi- VDWLRQ(53DVVXUHV³VHDPOHVVLQWHJUDWLRQRIDOO WKHLQIRUPDWLRQÀRZLQJWKURXJKDFRPSDQ\´ (Davenport, 1998) by means of a single database that enables the various departments within an organisation to successfully share information and contact each other (Hedman, 2002). The single database approach means common access to a single set of data. Therefore, all departments’ access the same information, as Figure 2 shows, and thus the need for redundant data entry is eliminated (Hedman, 2002). Packages ERP systems are commercial packages that are bought from software vendors (e.g., SAP, Baan, Oracle, J.D. Edwards and People- Soft) (Harrell, Higgins, & Ludwig, 2001). Software vendors such as SAP, PeopleSoft, and Oracle have developed a variety of applica- WLRQVVXLWDEOHIRUDGRSWLRQE\¿QDQFLDOVHUYLFHV industry, highlighting the change from the more traditional uses of ERP systems within business to a more general perspective (Martin, 1998). Pawlowski, Robey, and Raven (2000) indicate that ERP packages can be considered shared in- formation systems, which are systems which cross typical organisational boundaries and therefore have multiple users and stakeholders who have different cultures and approaches to work. Best Practices %HVWSUDFWLFHVFDQEHGH¿QHGDV³WKRVHSUDFWLFHV that have been shown to produce superior results; selected by a systematic process; and judged as exemplary, good, or successfully demonstrated”; WKHVHSUDFWLFHVDUHWKHQDGDSWHGWR¿WDSDUWLFXODU organisation (American Productivity and Quality Centre, 1997). The use of best practices, when incorporated within all areas of an organisation, including its stakeholder relationships, can lead to an organisation attaining world class performance. (53 SDFNDJHV DUH LQWHQGHG WR ¿W WKH QHHGV RI many organisations and therefore support generic business processes. ERP vendors therefore claim WRKDYHGHVLJQHG³EHVWSUDFWLFHV´%\ORRNLQJDW academic theory and individual companies, they claim to have designed the best way to do business (Markus & Tanis, 2000). Best practices in an ERP 67 The Evolution of ERP and its Relationship with E-Business system are captured in the different choices that must be made when implementing the system. An ERP system generally has a number of different best practices available, which implies that a com- SDQ\FDQFXVWRPLVHWKHVRIWZDUHVLJQL¿FDQWO\DQG PDNHLW¿WWKHVSHFL¿FQHHGVRIWKHRUJDQLVDWLRQ For example, SAP’s R/3 system offers more than 1,100 best practices. Because such a large number of best practices are available, virtually each implementation is unique. Since, the portfolio of best practices chosen varies from implementa- tion to implementation (O’Leary, 2000). However, since ERP packages are based on best practice, they are of a normative nature. Because of the normative nature of ERP, the performance often requires changing business processes and therefore includes at least some degree of business process reengineering (BPR) (Hedman, 2002). %35FDQEHGH¿QHGDV³WKHIXQGDPHQWDOUHWKLQN- ing and radical redesign of business processes to achieve dramatic improvements in measures of performance such as quality, speed and services” (Hammer, Champy, & Hammer, 1993). BPR is a vital part of the process innovation, helping in the redesign and re-evaluation of the processes used in organisations to achieve their objectives (Turban, Lee, King, & Chung, 2000). However, the inclusion of BPR in the implementation of ERP adds considerably to the risk and expense of the implementation (Markus & Tanis, 2000). Advantages of ERP Systems Implementation 7KH EHQH¿WV RI LQVWDOOLQJ DQ (53 V\VWHP DUH widespread. An ERP system restructures a FRPSDQ\¶VGDWDÀRZVDQGSURYLGHVPDQDJHPHQW with a direct access to a wealth of information (Davenport, 1998). According to Wallace and Kremzar (2001), operating the business in a rapidly changing and highly competitive environment is the primary purpose of implementing an ERP V\VWHP2¶/HDU\VWDWHVWKDW³RQHRIWKH primary reasons for the movement toward ERP is that the competition has it [and that] a lot of ERP purchases are premised on the need just to stay in business.” Thus, the implementation of an ERP system can be seen as a competitive necessity. Although implementing an ERP system PD\EHFRVWO\DQGWLPHFRQVXPLQJWKHEHQH¿WV are worthwhile. With careful planning and selec- tion of the right ERP system, a company may H[SHFWWRDFKLHYHVLJQL¿FDQWEHQH¿WVLQFOXGLQJ dramatic increases in responsiveness, produc- tivity, on-time shipments, and sales, as well as decreases in lead times, purchase costs, quality problems, and inventories (Wallace & Kremzar, 2001). According to a survey regarding R/3 cited in Al-Mashari (2001), the most common reason for implementing ERP is standardisation of pro- cesses and systems. Another much cited reason IRULPSOHPHQWLQJ(53LVWKHPL[LQJEHQH¿WVRI the system (Al-Mashari, 2001). While the ability to enhance the management RILQWHUQDOSURFHVVHVLVRQHEHQH¿WRILPSOHPHQW- ing an ERP system, enterprise resource planning DOVREHQH¿WVPDQ\RIWKHH[WHUQDOSURFHVVHVRIDQ organisation. Turban et al. (2000) argue that ERP system assists with customer relationship manage- PHQWE\RIIHULQJFXVWRPHUVDPRUHHI¿FLHQWDQG higher-quality level of service, including the abil- ity to order products online and to inquire about product pricing and the status of an order. Kalakota and Robinson (2001) explain that for large companies, ERP speeds communications and the distribution and analysis of information, facilitating the exchange of data across corporate divisions by unifying the company’s key pro- cesses, product planning, logistics, accounting DQG ¿QDQFLDO VHUYLFHV KXPDQ UHVRXUFHV DQG sales distribution. ERP system enables an organisation to inte- grate all data that is used in the entire organisa- tion. Davenport (1998) lists some of the many functions supported by SAP’s R/3 package shown in Figure 3. 68 The Evolution of ERP and its Relationship with E-Business Disadvantages of ERP Systems Implementations Although the implementation of an ERP system brings many advantages, it may also bring dis- advantages. One of the main disadvantages is WKHODFNRIIHDWXUHIXQFWLRQ¿WEHWZHHQDYDLODEOH packages and company needs (Markus & Tanis, 2000). ERP implementation can be a consider- able drain upon an organisation in terms of both cost and development time. Even a medium-sized installation can take up tens of millions of dollars DQGUHTXLUH\HDUVRIWZHDNLQJEHIRUHWKHEHQH¿WV DSSHDU7KLVLVUHÀHFWHGLQWKHLGHQWL¿FDWLRQWKDW approximately 90% of ERP implementations are late or over budget (Holland et al., 1999). It takes an average of eight months after the new system LVLQVWDOOHGWRVHHDQ\EHQH¿WV.RFK6ODWHU Baatz, 1999). ERP’s can have a negative impact on the work practices and culture of an organisation if it is being implemented inaccurately (Soh, Kien, & Tay-Yap, 2000). However, the more accurate WKH (53 LV LPSOHPHQWHG WKH PRUH EHQH¿W WKH company will achieve. Implementing Enterprise Resource Planning (ERP) Systems The implementation of an ERP changes the way organisations perform business and how people complete their work (Koch et al., 1999). Con- sequently, the implementation of ERP systems ultimately results in changes to processes (busi- QHVVRULHQWHG DFWLYLWLHV ZKLFKLQ WXUQLQÀLFWV changes to work practices (people-oriented activities). ERP implementation should involve the analysis of current business processes and the chance of re-engineering, rather than designing an application to make the best of bad processes (Scheer & Habermann, 2000). The implementa- tion of ERP software is not a technical task. The implementation of ERP systems is a business- based endeavour, as organisations try to match the technological imperatives of the ERP software with the business needs of the company. Daven- port (1998) states that technical challenges are not the main reasons that enterprise systems fail. Organisations fail to reconcile the technological imperatives of the ERP system with the business needs of the enterprise itself (Davenport, 1998). Although statistics are quoted showing many companies are adopting ERP technology (Kumar & Hillegersberg, 2000), it may be contested that these are following a trend rather than making sound business decisions (Caldas & Wood, 1999). Primary implementation motivators are often cited as a desire to integrate all parts of a busi- ness, achieve business change, replace outdated, unsupported software, to take into account new tax restrictions, and overall, to improve company stability and increase competitive advantage and SUR¿W'DYHQSRUW.XPDU+LOOHJHUVEHUJ 2000; Markus & Tanis, 2000). Reasons Why ERP Implementations Fail Implementing a new ERP system does not always guarantee successful results. There is, according to Bermudez (1998), a number of reasons why ERP systems failed to improve manufacturing planning: • The level of detail in ERP systems is too rough for adequate decision making. Also, the existing technology which is used for ERP systems does not allow greater detail for real time analysis and simulation, which enables adequate decision-making. • The tools used within ERP systems are used infrequently and are sometimes incompre- hensible for senior management. • There is no consideration given to the interdependency of material and capacity availability (Bermudez, 1998). Other reasons why ERP systems failed ac- cording to Kapp et al. (2001) can be: 69 The Evolution of ERP and its Relationship with E-Business • Inadequate training: As companies try to cut back on the budget for implementing an (53V\VWHPWKH¿UVWLWHPRQWKHFKRSSLQJ block is often training. This will seriously hamper long-term chances of success. • Employees’ resist: The real reason ERP implementations fail is because employees resist the new ERP software rather than embrace it (Kapp et al., 2001). Companies fail to reconcile the technological imperatives of the ERP with the business require- ments of the enterprise itself (Davenport, 1998). If a company rushes to install an ERP without ¿UVWKDYLQJDFOHDUXQGHUVWDQGLQJRIWKHEXVLQHVV implications within an Internet economy, the dream of integration can quickly turn dreadful. 7KHORJLFRIWKH(53PD\FRQÀLFWZLWKWKHORJLF of the e-business. Thus, the main reasons for ERP implementation failures are due to business and management problems (Davenport, 1998; Al- Mashari, Al-Mudimigh, & Zairi, 2003). ERP and E-Business The Internet continues to grow as a medium for commerce, allowing a company to conduct business everywhere, all the time. E-commerce and the Internet eliminate the constraints of time and distance in operating a business and enable a multitude of connections between customers, suppliers, and trading partners (Fingar, Kumar, & Sharma, 2000). E-business, according to Ahmed, =DLULDQG$OZDEHOFDQEHGH¿QHGDVD shorthand term that embraces a complex mix- ture of technologies, infrastructures, processes, and products brings together whole industries and narrow applications, producers and users, information exchange, and economic activity LQWRDJOREDOPDUNHWSODFHFDOOHG³WKH,QWHUQHW´ Similarly, Kalakota and Robinson (1999) maintain WKDW³HEXVLQHVVLVDERXWUHGH¿QLQJROGEXVLQHVV models, with the aid of technology, to maximise customer value.” The characteristics of the new economy have increased the level of competition in all the in- dustries, and the Internet presents an important RSSRUWXQLW\IRUHYHQVPDOO¿UPVWRODXQFKQHZ products or services because of the speed and low cost of doing business (Alwabel, Ahmed, Gouda, & Zairi, 2004). E-commerce also reduces inef- ¿FLHQFLHVFDXVHGE\EX\HUVHDUFKFRVWVWRREWDLQ information about the price and product offerings as well as the cost of sellers to communicate information about their prices and product of- ferings (Lynch & Ariely, 2000). By assembling a network of partners that specialise and excel in the links of the value chain, it is possible for organisations to achieve new levels of quality, ÀH[LELOLW\DQGFRVWVDYLQJV(53DQGHEXVLQHVV are not competitive systems. Their greatest ben- H¿WVFDQRQO\EHDFKLHYHGZKHQWKH\DUHXVHGLQ agreement, completing each other. Thus, without a successful ERP system, the e-business systems wou ld h a ve o n l y l i t t l e t o p r e s e n t ; a s i n t o d a y ’s n e w business environment, power has shifted toward consumers who demand intelligent products that deliver new dimensions of value time and content in addition to the current one’s price and quality (Aldrich & Douglas, 1999). The basic functionality of ERP and e-business are different. Yet, ERP is an integrated software packages system that handles an organisation’s internal information whereas e-business is fun- damentally a distribution medium and does not involve a lot of processing. Although the informa- WLRQÀRZLQJWKURXJKHEXVLQHVVLVEHFRPLQJPRUH willing to process all of the time, it is still processed by applications, and the best business applications are still ERP and other enterprise packages from major vendors. Sixty-six percent of IT managers, according to a recent survey of e-business and ERP (Norris, Hurley, Hartly, Dunleavy, & Balls, 2000), viewed ERP as their most important and strategic platform because it provides a solid foundation and information backbone for e-business. When ERP and e-business are properly implemented, they supercharge each other. E-business is the 70 The Evolution of ERP and its Relationship with E-Business best vehicle to share business information with partners for creating major B2B synergies (Nor- ris et al., 2000). A fully-integrated ERP system will capture and create accurate, consistent, and timely relevant data, and assist in intelligent business decision-making. E-business improves a company’s business performance by connecting various stakeholders to a company’s value chain and information systems as illustrated in Figure 4. When any parts of the supply chain have access to other’s business information, organisations can streamline their processes and automate data processing and business activities all through the supply chain (Norris et al., 2000). Furthermore, ERP systems according to Jaiswal (2002) can be organised to smoothly in- tegrate various business functions and even can be extended to external business partners. It can also be organised as combined business models as shown in the Figure 5. The major role of e-business is to operate on applications such as ERP, supply chain manage- ment (SCM), and customer relationship manage- ment (CRM), an extended of the company to its supplier and customer, as well as other partners as shown in Figure 6. ERP Future Trends The ERP system has had a major impact on the manufacturing industry for a decade. The ERP system can serve the manufacturing businesses as ZHOODVRWKHULQGXVWULHVVXFKDV¿QDQFLDOVHUYLFHV health care, and the consumer goods sector. The future of ERP is all about improving the supply chain and promotion greater than the collabora- tion across multiple enterprises. ERP vendors now provide continuous product enhancements WRWKHRUJDQLVDWLRQVWKDWDO UHDG\KDYH³JRQHOLYH´ with their ERP package. Customer relationship management (CRM) and supply chain manage- ment (SCM) are functions that ERP vendors are now attempting to sell to organisations that have already bought and implemented an ERP package (Chen, 2001). CONCLUSION Although ERP systems have the potential to VLJQL¿FDQWO\HQKDQFHWKHSHUIRUPDQFHRIPDQ\ organisations’ business operations, they are still expensive and intensely complex to implement. Thus, the possibility of failure has always been KLJK,QRUGHUWRUHDSWKHSRWHQWLDOEHQH¿WVDQG avoid serious drawbacks, companies must really understand and deal with the planning issues. This paper focuses on the evolution of ERP and its relationship with e-business. This paper begins E\GH¿QLQJWKHFRQFHSWRI053DQG053,,DVD ¿UVWDQGVHFRQGSKDVHRI(53WKHQLWGLVFXVVHV the issues surrounding the concept of ERP. In addition, the advantages and disadvantages of ERP are examined to explain the opportunities and threats of ERP and how organisations can XWLOLVHWKHVHEHQH¿WVDQGRYHUFRPHWKHVHEDUULHUV Furthermore, reasons why ERP implementations fail are discussed as well as the relationship be- tween ERP and e-business. ERP and e-business are not competitive sys- tems. Yet, the basic functionality of ERP and the HEXVLQHVV DUH GLIIHUHQW7KHSRWHQWLDO EHQH¿WV from ERP systems are varied with different types RIEHQH¿WVDULVLQJDWGLIIHUHQWSRLQWV(DUO\LQWKH (53H[SHULHQFHEHQH¿WVDURVHIURPERWKWKH,7 infrastructure and the re-engineered, IT supported RSHUDWLRQDO SURFHVVHV <HW EHQH¿WV PD\ DULVH from improved management decision-making, especially with regard to day-to-day operational PDWWHUV7KHVHEHQH¿WVVHHPWRUHVXOWIURPEDVLF use of the technology. However, organisations VKRXOGSODQWRDFKLHYHWKHVH HDUOLHUEHQH¿WVDV TXLFNO\DVSRVVLEOHXVXDOO\ZLWKLQWKH¿UVWIHZ years of adopting the ERP systems. On top of that, companies could offer training and consulting to employees as well as provide high support levels of human key account managers to reduce the reluctance of targeted decision-makers to adopt ERP. However, an ERP system in itself does not offer competitive advantage in an organisational environment. Competitive advantage comes not 71 The Evolution of ERP and its Relationship with E-Business from the fact that companies have adopted an ERP system in, yet that is what every other major company all over the world has done. It is how they interface that system with their employees and KRZPDNLQJHPSOR\HHVSHUFHLYHLWVEHQH¿WV7KH implementation of ERP software is not a techni- cal task. 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