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The Effect of Implementation of Enterprise Resource Planning System on Labor Productivity and Net Profit Margin

Published:27 July 2021Publication History

ABSTRACT

This study aims to determine the impact of implementing the Enterprise Resource Planning (ERP) system on improving the company's financial performance. The company's financial performance is measured based on financial ratios, namely Labor Productivity and Net Profit Margin. Data were analyzed by comparing various ratios over 3 years before and after ERP system implementation. The results showed that there was an increase in productivity, but did not prove an increase in profitability after the company implemented the ERP system. Therefore, further research can be directed at the level of ERP system implementation, because companies may have no background in implementing an ERP system.

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  • Published in

    cover image ACM Other conferences
    ICEEG '21: Proceedings of the 5th International Conference on E-Commerce, E-Business and E-Government
    April 2021
    165 pages
    ISBN:9781450389495
    DOI:10.1145/3466029

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    Publication History

    • Published: 27 July 2021

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