Munich Personal RePEc Archive

Issues with implementing ERP in the public administration

Hurbean, Luminita (2008): Issues with implementing ERP in the public administration.

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Abstract

As governments work to transform their environments from an internal resource optimization to a process integration and external collaboration focus, integrated systems stand at the forefront of solutions that will achieve this goal. Enterprise Resource Planning (ERP) is proven to significantly increase efficiency, improve information access, reduce total cost of ownership, and help government achieve the highest levels of accountability and constituent service. Yet implementing ERP in a manner that achieves its promises is no easy task. Public sector organizations often rationalize their ERP modernization initiatives within the context of budgetary constraints and are faced with multiple ERP providers that, on the surface, are difficult to discern. In addition, adjudicating between competing ERP solutions on their functional merit is not only difficult because of the complexity of ERP systems, but it is further complicated by the intricacy of the government acquisition process. Therefore, it is particularly important that the business value be sold at the executive and political levels of government and, to be successful, that government embeds the ERP solution within its culture and processes. What's more, the level of detailed analysis required to map functional requirements to ERP solutions is an arduous task that, even if done thoroughly, hasn't always delivered a successful implementation. In this article, we will address these issues by examining the evolution and shortcomings of ERP solutions; by defining the features and functionality needed to address government transformation; and by recommending the steps to take to position for success.

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