Challenges in Adopting ERP in Public Sector of Pakistan

Abstract

In the rapidly evolving landscape of modern business and governance, Enterprise Resource Planning (ERP) systems have become essential in streamlining operations across both public and private sector organizations globally. IT departments now play a pivotal role in managing financial processes, business activities, and administrative functions through these systems. This study investigates and analyzes the key challenges that public sector organizations in Pakistan encounter when initiating an ERP project. The research aims to identify the critical factors that organizations must consider when transitioning to an ERP system. The adoption process is not only complex but also involves significant financial investment, making the failure of such projects a risk that organizations cannot afford. Furthermore, this study explores solutions related to management strategies and administrative frameworks, offering guidance on designing effective controls and procedures for ERP implementation. It focuses on addressing the issues within organizational structure, functions, culture, human resources, and procedures. Through this analysis, the study seeks to provide actionable solutions to mitigate these challenges during the ERP implementation process. The research covers the intricacies of implementation planning, project management, and system design, and outlines the roles of various teams and personnel throughout and after the implementation phase in the public sector environment.