Implementation of SAP Enterprise Resource Planning System and Operational Performance in ABC Company

Abstract ―​

This study was conducted to assess the level of implementation of SAP Enterprise Resource Planning System and operational performance in ABC Company. The emphasis of this study was on the significant relationship and impact of the ERP system implementation to the operational performance of the organization. This followed the approach of descriptive correlational research. To determine the participants of this study, purposive sampling was used to select 67 participants among the employees of ABC Company. A researcher-made questionnaire was utilized in this study. It was divided into two parts which is the SAP ERP level of implementations on the first part, and the operational performance level which was subjected to validation and underwent Cronbach’s Alpha Reliability Test. Using the results revealed by the mean it was inferred that ABC Company has highly implemented the SAP ERP system in terms of technology, organization, and environment. It was also evident that the operational performance was very good in terms of people engagement, customer service, leadership, processes, continuous improvement, evidence centered decision making, and relationship management. Through the statistical treatments used in this study which were the mean, Pearson r coefficient of correlation, and regression analysis, it was interpreted that the SAP ERP implementation has a significant relationship and impact on the operational performance of ABC Company. The higher the implementation of the ERP System meant that there was higher operational performance for ABC Company. One of the challenges faced by this system implementation was the limited training provided for the users, therefore, an ERP System Training matrix was created to allow ABC company to combat the difficulties met by the organization when it comes to the implementation of the ERP System.