Comparative advantage of erp: Benefit versus costs

The perseverance of this paper is to provide comprehension into the past history of ERP use and use of another software packages at once. A tentative model was poised based on literature on adoption and distribution of innovations in general and ERP in specific. The model was verified with midsized concerns of the electrical, engineering and metal industries. We recognize the effect of ERP related factors on ERP implementation and the concurrent use of other software solutions. ERP employment is significantly related to ERP intricacy (positive), ERP compatibility (negative), IT skill (negative), and ERP sellers’ marketing efforts (positive). Companies considering spending in ERP are alert of the influence vendors might have; companies should study changes to ERP systems to overcome flexibility difficulties starting from ERP use. This help to preserve their competitive advantage in the marketplace. It will require some internal IT skill help to make the right decisions, i.e. balance need for assimilation of software and product/service variation to customers. This paper explains the issue of the exclusive use of ERP systems versus the simultaneous use of alternative packages.