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Enterprise Resources Planning (ERP) systems, i.e. application software which automates, integrates and supports business processes is becoming very important. Investments in ERP implementation, consisting of investments in communication and information technology, software licenses and implementation consulting services, are considered as high level investments. Therefore companies are very carefully examining feasibility of the investments and return on investment ratios.
Within globalization framework and markets liberalization scenarios, companies could not achieve competitive edge with investments in processing or manufacturing technologies or/and with investments in operational marketing instruments. A company has to, in order to improve competitiveness, implement best practice on operational level. ERP implementation is enabling business process transformation and optimization introducing the best practice into company's business processes and operational model.
Croatian companies are challenging by multinational and strong regional companies both on domestic as well export markets. Therefore there is a need to research if investments in ERP implementation increased competitiveness of Croatian companies. Authors are presenting ERP theory and the literature in the first part of this paper. In the second part of the paper authors are presenting results of own research conducted within top 400 Croatian companies, testing the hypothesis if implementation of ERP is increasing competitiveness of the companies within liberalized business environment. At the end of the paper authors are suggesting further research and case studies in each Croatian company which implemented ERP in order to achieve statistical relevance.

Key words:

Enterprise Resources Planning Systems, investments, competitiveness