Life Cycle of ERP Systems

The 90’s witnessed an impressive growth of Enterprise Resource Planning (ERP) systems in the market of corporate IT solutions. For instance, O ́Leary (2000) reports that a single ERP system (SAP ́s R/3) is used by more than 60% of the multinational firms. Among the explanations for this phenomenon are the competitive pressures suffered by the companies that have forced them to seek alternatives for cost reduction, differentiation of products and services and integration of their business processes. The ERP systems evolved exploiting the need for quick deployment of integrated systems to meet these new business requirements, while companies were (and still are) under pressure to outsource all the activities that are not embraced by their core business. The ERP systems are introduced in companies following some well-defined stages. In this context, their life cycle encompasses the stages of decision, selection, implementation, stabilization and utilization. This chapter presents aspects involved in each stage of this life cycle, based on the referenced bibliography.