Abstract:

In order to guarantee the degree to which the Information Technology (IT) mission, objectives and plans support and are supported by business mission, objectives and plans; scholars and researchers (e.g. Acur et al. 2012) emphasised the need of organisations to aligning their business strategy with Information Technology strategy if they desire to achieve greater business value from their business and IT investments. However; investigating exact conditions on applying specific type of strategy still uncovered (Tallon and Pinsonneault, 2011). Consequently, for firms to achieve a competitive advantage through continuous support from both IT and business managers and executives, it is essential to explore the underlying conditions and risks associated with implementing IT systems, specifically Enterprise Recourse Planning (ERP). Further, since strategy formulation is part of the strategic management process in order to achieve a firm’s competitive advantage by creating more economic value than its rivals for the organization’s vision; the benefits, drawbacks, and risks accompanying the implementation of ERP systems are presented in this research.