Implementing Enterprise Resource Planning (ERP) systems, the most significant IT development in recent times, affects all aspects of organizational life. While the positive impact of ERP systems on operational efficiencies is well established in the literature, the relationship between ERP systems, decision support capability and decision-making processes has been inadequately investigated in the past. This paper hypothesizes a research model for further investigation. Using standardization and integration, the two key characteristics of ERP systems, the influence of ERP-enabled information environment is explained in terms of its impact on the accessibility/availability, quality and quantity of information. The extent of integration and standardization achieved while implementing the ERP system and organizational culture and size are moderating variables that are expected to moderate the influence of ERP-enabled environment on managerial decision making. Extending recent studies, this study postulates a positive influence of ERP-enabled information environment on decision support capability particularly at operational and tactical level. Though improvement in the quality of information, centralization and the consequent increase in visibility and accessibility have influenced the decision support capability of managers, factors such as information overload and inadequate reporting tools in the ERP software appear to be limiting the managerial decision making capability and quality of decision making.
Seethamraju, Ravi and Seethamraju, Jaya, "ERP Systems and Managerial Decision Making - A Model for Analysis" (2008). ICEB 2008 Proceedings (Hawaii, Waikoloa, Big Island). 8.