ERP systems are comprised of a suite of software modules, with each
module typically responsible for gathering and processing information for a
separate business function, or a group of separate business functions. ERP
software modules may include accounting, master scheduling, material
planning, inventory, forecasting, finite scheduling, distribution planning and
others. A typical ERP system integrates all of the company’s functions by
allowing the modules to share and transfer information freely (Hicks and
Stecke, 1995). In addition, all information is centralized in a single relational
database accessible by all modules, eliminating the need for multiple entries of
the same data. While large firms usually budget heavily for ERP and may
install a substantial number of the available modules (Chalmers, 1999), smaller
firms often adopt a piecemeal approach, starting with a few modules or a few
components of each module (Ferman, 1999). Customers and suppliers with
network security clearance are allowed to access certain types of information
by way of an external communication interface.