Why ERP may not be Suitable for Organisations in Developing Countries

ERP software has been heavily adopted in developed countries in the past decade. However, similar levels of adoption have not occurred in Asia. This study asks why the adoption of ERP software from developed countries (e.g., SAP, Oracle, PeopleSoft, BaaN and IFS) is so low in developing countries of Asia, and why the few local organisations (excluding multi-national corporations) who have adopted ERP have experienced problems. Answering these questions will benefit ERP vendors in formulating product development and implementation strategies for Asia. Answering these questions will also help potential local customers in developing countries of Asia to understand the pre-requisites for success in ERP adoption. Two case studies have been conducted in Sri Lanka. The preliminary findings suggest that high cost, culture, integration, and lack of knowledge are the four most important factors that make ERP unsuitable for many organisations in Sri Lanka