Opportunities and Challenges of ERP System Implementation in the Context of Digital Business Transformation of Enterprises

Abstract

Digital business transformation is a concept without which many things in the 21st century would not look the same. The integration of digital technologies into business processes enables more efficient functioning and the execution of tasks that are part of a business process. In the context of digital business transformation, technologies and tools such as IoT (Internet of Things), cloud computing, big data, artificial intelligence, ERP systems, and many others are used. The focus of this paper is on ERP systems and their role in the context of digital business transformation. ERP systems facilitate easier coordination, monitoring, and optimization of various business processes and their integration into a unified whole. Since ERP systems are centralized, all business processes are fully tracked. This reduces the time spent on various activities within a business process, as all relevant information is available at the right time and in the right place. The implementation of ERP systems brings numerous benefits to a company, one of which is labor cost savings, as the application of an ERP system ensures a reduction in the number of employees. Although the benefits of applying digital technologies in daily business operations are significant, there are also many challenges that companies face during the process of digital business transformation through the application of various technologies, including ERP systems. This paper will first discuss the concept of digital business transformation, followed by a discussion of ERP systems in the context of digital business transformation, where an overview of their opportunities and challenges will be provided. The first part of the paper will utilize the literature review method. In the final part of the paper, a case study example will be used to describe the application of ERP systems in the operations of courier companies in Bosnia and Herzegovina, which will help in understanding both the opportunities and challenges of ERP system implementation.