<p><b>The modern world has seen Information
Technology being used in most of the business areas. The Enterprise Resource
Planning (ERP) systems are typically the largest, most complex, and most
challenging information systems implemented by firms, representing a
significant departure from the individual and departmental information systems
prevalent in the past by integrating the key functions and assisting better and
timely decision making.</b></p>
<p><b> </b></p>
<p><b>While many private organizations have
successfully taken advantage of these new technologies to develop enterprise-wide
information systems that reduce costs and improve performance, however public
sectors in most of the developing countries still lags far behind when compared
with developed countries. Defence organizations of Sri Lanka, which is one of
the largest components of government of Sri Lanka with an annual budget around
200 billion Sri Lankan Rupees, still relies on manual procedures and methods that
are error prone and redundant and do not provide the enterprise visibility
necessary to make sound management decisions.</b></p>
<p><b> </b></p>
<p><b>Selecting the most suitable ERP product is
crucial for the success of ERP implementation. In this study Open Source ERP
systems and proprietary ERP systems are critically evaluated in order to
determine the best applicability for the defence sector in developing
countries. </b></p>
<b>Transformation of defence organisations in to business entities is the
way forward considering the Sri Lankan post war scenario, while achieving to be
digital organizations from paper based with emphasis on appropriate product,
technology, affordability, flexibility and long term sustainability with the
importance multi-disciplinary approach and it will give the necessary
efficiency and effectiveness in overall aspects. </b>