Enhancing Governance in the Digital Era: Analysis of ERP Systems in Public Institutions for Minimizing Risks and Maximizing Performance

The use of digital systems, like enterprise resource planning, in the face of growing global competition is one of the most important trends in the development of both corporate and public governance worldwide. Enterprise resource planning system (ERP) - software system that helps companies run their entire business, supporting automation and processes in finance, human resources, manufacturing, supply chain, services and more. And while the correlation between digital systems' adoption and improvement of organisational performance of firms is evident and empirically assessed, the same cannot be said of public institutions. Hence, the key task of this paper is to analyse the specifics of the implementation and optimisation of digital management systems in public institutions for the sake of minimising political and economic risks. By conducting a comparative analysis of different cases, the authors prove that the deployment of innovative management technologies plays a crucial role in shaping the competitiveness and profitability of a company in both the public and private sectors. The authors examine several cases of implementing ERP systems, which led to failures and severe consequences, while also showcasing successful digital transformation projects in Russia and providing a list of factors to consider for implementing urban planning projects to prevent future financial losses. Russia was chosen for investigation because, despite the politics of recent years, it manages to carry out successful digitalisation in-house. Besides, it becomes evident that even lobbying for the implementation of digital planning and management systems can have varying effects on government policy, either positive or negative, depending on the specific circumstances. Even so, the demand for their use in state institutions at the federal and regional levels is only increasing every year, which unwraps opportunities not only for potential customers, but also for developers of digital systems. Implementing digital management systems represents a crucial stride towards enhancing the management of public resources and overall efficiency of government structures.