This paper studied the effect of investments in Enterprise Resource Planning (ERP), Supply Chain Management (SCM) systems on a firm's long-term stock price performance and profitability measures such as return on assets and return on sales. The results are based on a sample of 558 announcements of ERP implementations, 420 SCM implementations. The authors' analysis of the financial benefits of these implementations gives mixed results. In the case of ERP systems, they observed some evidence of improvements in profitability but not in stock returns. The results for improvements in profitability are stronger in the case of ERP systems.