Evaluating the effects of ERP systems on performance and management accounting in organizations

Abstract

Coordination of operation and information in order to elevate the efficiency is one of the processes in organizations and often has been accompanied with resorting to IT in a large scale. Organizations have implemented Enterprise Resource Planning (ERP) systems due to problems posed by separated systems. The aim of this research is to study whether ERP systems cause increasing performance efficiency and changing management practices in organization. In addition, the role of management accountants have been examined to find out that whether they are gaining new roles within organization and whether their work content has changed after the ERP implementation. The research is conducted with a survey questionnaire. The sample consists of 50 knowledgeable persons in organizations that have implemented ERP systems. Results indicated that ERP systems have had an impact on organization performance, accountants and management accounting. These systems provide more real-time and accurate information to budgets and techniques, and organizations have also introduced advanced management accounting techniques after the implementation. As regards the time use of accountants, the results exhibit that the respondents have used less time on their routine work after the ERP implementation. This extra time is devoted on interpreting data and performance evaluation and other tasks. Finally, accountants in the study consider that the implementation of ERP systems has made skills such as, IT skills and knowledge of other functional areas more important.