Construction industry and enterprise resource planning systems implementation: a case study of local contractors in Dar es Salaam, Tanzania
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Abstract
Enterprise Resource Planning (ERP) systems are now being hailed as a foundation for integration of organization-wide information systems. This study examines the applicability of enterprise resource planning systems implementations as a tool for planning and managing resources in execution of projects in order to improve efficiency and increase profitability in Tanzanian construction industry and the constraint that hinder implementation of enterprise resource planning systems. The literature review, participant’s observations, research interviews research questionnaires and case study methodology was used to examine the contractors’ perceptions in implementations of ERPs on construction industry. Data are collected from government and non- government officials/firms involved in construction industry sector which includes professionals’ engineers, project managers and technical staff from different contractors. The study identifies that 55% of local contractor in Dar es Salaam, Tanzania were planning to implement Enterprise Resource Planning (ERP) systems, 42% had no plan completely, but very few (2%) local contractors have so far implemented such systems, the reason is that implementation of any ERP system needs a huge investment in terms of time, money and resources. However, when implemented to solve the right problems, enterprise resource planning systems can be a powerful tool for business improvement.