Rapid business and technology changes continue to drive many organizations to seek better solutions and many of them believe that Information Technology is an essential tool to cope with turbulent environment. But the traditional information systems often suffer from the lack of integration required for strategic decision making and IT resources required for the maintenance of legacy systems.
In this situation, companies began to think ERP system as an effective alternative for IT-based process innovation and integrated information system.
But each ERP system has a specific business model and technical structure, unlike in-house developed system. Moreover implementation of ERP system accompany transformation of business processes at company level including radical changes in information technology. Therefore, to implement ERP system successfully appropriate and careful selection of ERP system which is adequate for company's objectives and environment must be considered.
In this research, four types of changes expected by ERP implementation were suggested. Each type of changes was determined by desired level of changes in business process and information technology. Next, the components of information system risk were proposed for each type of change and case studies for four Korean companies which finished ERP implementation were presented to analyze and validate above propositions.
