Information needs and direction for construction ERP development

Enterprise Resource Planning (ERP) systems are developed to enhance the performance of many companies' business operation. But they are expensive, complex and difficult to implement. Studies indicate that ERP implementations have yielded more failures than successes in construction. Research is needed to develop ERP knowledge that addresses the nature and needs of the construction industry. For construction to implement an ERP system, the nature and information needs will be different from those of manufacturing because of different characteristics. This study identified information needs and direction for construction ERP development. It analyzed and compared the characteristics of the two industries in terms of production system, standardization level, accounting operation, etc. It was found that developing ERP for construction should be based on the cost and schedule information at the project level, the common language used by all project participants. A cost and schedule information system and flow linkage was established to direct ERP development. The four units of schedule activities, contract line items, cost accounts, and work in progress and their linkage flow must exist and their data need to be well designed. A case study was conducted to verify these data issues during system implementation and provide a better understanding.