Categorisation of Enterprise Resource Planning (ERP) Failures: An Opportunity for Formal Methods in Computing

Abstract

Enterprise Resource Planning (ERP) systems are increasingly being used worldwide to align organisations' business processes and optimise their activities for value-proposition. However, due to the complexity of ERPs, they are often characterised with system failure resulting in huge loss of investments organisations have made in the acquisition and deployment of such systems. In this paper the components of a modern ERP are identified and reasons for such failures are elicited through a comprehensive analysis of the literature, together with a case study from the researchers' work environments. ERP failures are categorised and the techniques of formal methods (FMs) are discussed. An example of the utility of formal specification using Z, is illustrated in the context of the case study. Future work in this area is indicated as the development of an ERP failures framework, followed by a framework to address the said ERP failures.