Necessary but not sufficient: ERPs and strategic HRM

Many vendors claim that ERPs can allow organizations to unlock the strategic potential for important functional areas of their business. This paper assesses this claim in relation to the HR function and uses case study evidence to examine whether the introduction of ERPs is necessary for HR to become more strategic in its orientation. The case studies reveal that while ERPs may be necessary they are not sufficient in allowing HR to play a more strategic role. Furthermore, the case study evidence suggests that the active engagement of HR in the introduction and ongoing functioning of an ERP is important in organizations realizing some of the wider benefits associated with these systems.