Business enterprises in India are in the process of a major transformation due to globalization and the deregulation of Indian economy, coupled with fundamental changes in the business models due to the emergence of Information Technology based business practices.

Most of the enterprises in developing countries, such as India, are in the process of implementing Enterprise Resource Planning (ERP) system in alignment with organizational transformation and process of re-engineering initiatives. ERP system promise benefits that range from increased efficiency to transformation of quality, productivity and profitability.

However, its implementation poses some unexpected organizational challenges and changes that can be structural as well as cultural in nature. ERP not only helps establish world-class best business practices and brings transparency to the organization but also demands for empowerment and flexibility in decision making process.

The most promising argument is that, to thrive in the e-commerce world companies need to transform their internal business process with the deployment of ERP system. Hence, ERP is considered to be the backbone of e-business.