Application of Modern ERP System in the Era of Digital Transformation

Abstract

In the rapidly evolving digital era, businesses are increasingly leveraging modern Enterprise Resource Planning (ERP) systems to enhance operational efficiency, data accuracy, and strategic decision-making. Unlike traditional ERP systems that were often rigid, isolated, and limited to back-end processes such as accounting or inventory management, modern ERP platforms are highly integrated, cloud-based, and scalable. This research employed judgemental sampling using structural questionnaire carrying having licart scale and rank based questions collecting 122 responses and further cleaning the researchers had 100 responses and analysis by Regression analysis and ANOVA. The objectives of this study Are 1To identify the challenges and benefits of ERP in the digital transformation era. 2. To study perception of employee towards ERP system in the organization. The study found that According to the respondents\' demographic study, Welspun Anjar has a somewhat male-dominant gender distribution, with a somewhat higher percentage of male employees (57%) than female employees (43%). The majority of respondents (82%) said they had fewer than five years of job experience, with 41% saying they had less than two years and another 41% saying they had between two and five years. This suggests that the organization\'s personnel are largely youthful and in their early careers. The largest percentage of respondents (22%) were connected to the Corporate or Registered Office, followed by the TMT & Steel Plant (17%), when looking at the distribution of workers across different facilities at Welspun Anjar (Gujarat). The Flooring Plant (11%), Coating Facility (11%), and Home Textiles Plant (12%) were further noteworthy facilities. The LSAW Pipe Plant (8%), HSAW Pipe Plant (9%), and DI Pipe Plant (10%) all recorded lower percentages. With a small concentration in corporate and manufacturing activities, this distribution shows a broad workforce across functional areas. Results from the regression analysis that looked at how using an ERP system affected the decrease in manual procedures were statistically significant. ERP use accounts for almost 9.9% of the variance in the reduction of manual labour, according to the model\'s R Square value of 0.099. The ANOVA test validated the model\'s statistical significance (F = 10.821, p = 0.001) despite its modest explanatory power, indicating that ERP use significantly lowers manual labour. Additionally, with a normalized beta coefficient of -0.315, the coefficients table demonstrated a strong inverse link between the use of ERP and the reduction of physical labour (B = -0.220, p = 0.001). This suggests that a noticeable decline in manual interventions in organizational processes is linked to greater use of ERP systems. These results provide credence to ERP systems\' ability to improve operational effectiveness and lessen an organization\'s dependency on manual labour.

Introduction

In the digital-first business environment, organizations increasingly rely on Enterprise Resource Planning (ERP) systems to streamline operations, boost efficiency, and stay competitive. ERP integrates core functions like finance, HR, procurement, supply chain, and CRM into a unified platform.

Modern ERP systems now incorporate cloud computing, artificial intelligence (AI), and mobile access, offering real-time data, flexibility, and scalability. These features have made ERP adoption particularly attractive for Micro, Small, and Medium Enterprises (MSMEs) in India.

• 73% of Indian MSMEs now use digital tools such as smartphones and UPI.

• Cloud ERP is prioritized by over half of Indian SMEs to enhance operational effectiveness and avoid high infrastructure costs.

• Case studies from Delhi-based MSMEs highlight ERP's impact on financial reporting, inventory control, and customer service.

2. Objectives

1. Identify the challenges and benefits of ERP in the digital era.

2. Understand employee perception of ERP systems in organizations.

3. Literature Review Highlights

• ERP has evolved from legacy automation tools into strategic platforms supporting digital transformation (DT).

• Integration with AI, IoT, RPA, and cloud enhances productivity and decision-making.

• Studies indicate ERP helps reduce manual labor, optimize workflows, and support Industry 4.0.

• Despite massive investments in digital transformation, many initiatives fail due to poor planning and execution.

4. Research Gap

While large enterprises have been the focus of ERP research, there's limited study on modern ERP (with AI, cloud, IoT) and its impact on specific business functions (like finance) within SMEs. This study addresses that gap using SAP ERP in real-world scenarios.

5. Research Methodology

• Hypotheses:

  • H??: Modern ERP systems significantly contribute to digital transformation.

  • H??: ERP systems significantly affect automation and integration of core business processes.

• Method: Descriptive and exploratory research via questionnaire (Google Forms).

• Sample: 100 employees from Welspun World, Anjar (Gujarat).

• Data Type: Quantitative

• Ethical Considerations: Informed consent, anonymity, confidentiality

6. Data Analysis (Regression Results)

• Independent Variable: ERP Usage

• Dependent Variable: Manual Reduction

Key Findings:

• ERP usage has a significant negative correlation with manual work (β = -0.315, p = 0.001).

• R² = 0.099 → ERP explains 9.9% of the variance in manual process reduction.

• ANOVA results: Model is statistically significant (F = 10.821, p = 0.001).

• Higher ERP usage leads to less manual intervention in operations.

7. Findings

• Workforce is young, mostly with <5 years experience.

• Workforce is spread across diverse facilities like Corporate Office, Steel Plant, Flooring, and Coating.

• Regression confirms ERP significantly reduces manual processes, enhancing automation and operational efficiency.

8. Limitations

• Small sample size may not reflect broader industry trends.

• Short-term observation doesn’t capture long-term ERP impacts.

• Limited access to internal data and ERP diversity (SAP, Oracle, etc.) may affect generalizability.

• Response bias and regional limitations could skew results.

Conclusion

The goal of the current study was to investigate how the use of ERP (Enterprise Resource Planning) systems affected the decrease in manual procedures throughout the various operating facilities of Welspun Anjar. According to the demographic data, the majority of employees have less than five years of experience, and the workforce is comparatively young and male. A high degree of adaptability to new technology systems, like ERP, is suggested by this demographic profile. A substantial correlation between the use of ERP and the decrease in manual labour was validated by the statistical analysis. The regression model was statistically significant even though the explained variance was small (R2 = 0.099), suggesting that ERP systems significantly improve process efficiency. The idea that greater ERP use results in a quantifiable reduction in manual labour is supported by the negative regression coefficient, which also demonstrates how well the system drives automation and digital transformation. All things considered, the results indicate that ERP systems are essential for increasing productivity and simplifying processes. Continued investment in ERP systems may be very beneficial to companies like Welspun, particularly when combined with change management techniques and staff training. Other factors that might affect ERP performance, like staff engagement, system usability, or department-specific difficulties, could be further investigated in future studies.

References

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Copyright

Copyright © 2025 Dr. Priyanka K Suchak, Mr. Jayendra P. Siddhapura, Ms. Neepa Davda, Ms. Khushboo Murjani. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.