The Impact of Implementing an Enterprise Resource Planning System on Organizational Performance Using Balanced Scorecard

Abstract

ALPHA Company is an exclusive shopping community in the Middle East covering 8 countries (The GCC Region, Lebanon & Jordan) and provides exclusive access to time limited sales of different brands at discounts reaching 50-85% off retail price to its 3 million members and one million Facebook fans. The company has distinguished itself by offering an amazing collection of new brands and latest fashions at privileged prices and acceptable lead time.

This research was conducted to appraise the organizational performance before and after implementing the ERP system using the Balanced Scorecard as a performance tool measurement.

The company was facing many problems in the value chain including primary and support activities. It was suffering from inefficiencies within the internal operations (Logistics and Shipping, sourcing, procurement and warehousing), in addition to a lot of difficulties in managing its financial transactions.

Based on the results of this research, it was concluded that after implementing the ERP system, the company became more efficient and effective in the value chain activities. In addition, its performance was enhanced and most of the problems were resolved successfully which led to better customer satisfaction and better reputation in the market.