Benchmarking methodology based on ERP system evaluation: case study

Enterprise resource planning (ERP) is a computer-based information system for enterprise integration. ERP integrates information from all functional areas of enterprise to support management processes. The implementation of ERP is an expensive and time-consuming process but for contemporary enterprises it is a necessity. The effective enterprise management is impossible without on-line information about business processes executed in all functional areas. The ERP implementation involves a strategic decision that influences enterprise development for many years. Thus, ERP systems should evolve together with enterprises. The paper proposes a benchmarking methodology that enables evaluating the implementation of an ERP system in three manufacturing companies focused on make to-order production. The enterprises make small series or single prototype production. The research is based on benchmarking of the enterprises that implemented ERP systems in the past years. It involves comparison of the most important financial ratios and statistical data extracted from the ERP system. Results of data analysis are a basis for a proposed procedure of ERP evaluation. The procedure enables not only evaluating the ERP system implementation but also determining functional areas that require support, changing business processes or functionality of ERP. The proposed benchmarking methodology presents how much the ERP system is adapted to enterprise requirements. Examples presented are based on a case study of Polish enterprises.