A conceptual model for enterprise resource planning (ERP)

This article seeks to provide a conceptual model that explains the complexity of an enterprise resource planning (ERP) system to general and project managers in a non‐technical manner that is easily understood.

The 4Ps business model serves as a starting‐point to derive the ERP model because most managers are familiar with it and can therefore relate to it with ease. An ERP system is divided into four major components, namely, the software, the customer mindset, change management, and the flow of processes within it. A fifth component, methodology, encircles these four components to ensure that they are integrated and implemented in an organised manner.

ERP is more than just software. Unless a clear understanding exists of the different components and their integration, ERP projects will continue to be plagued by failure. This model is applicable to any ERP system as it is generic and vendor‐independent and helps in determining the scope of an ERP project.

The suggested model is conceptual in nature and provides a holistic view of ERP. It does not attempt to provide a detailed, step‐by‐step approach for implementing an ERP system.

The conceptual model enables general and project managers to understand ERP systems better without becoming overwhelmed by product or technical detail. This will facilitate the successful implementation of ERP systems, thus ensuring project success and, ultimately, organisational success.